Duties on Chinese Steel Rod Won’t Be Raised, Court Rules

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By Brian Flood

Duty rates on imports of threaded steel rods from China do not have to be raised, the Court of International Trade ruled.

The court rejected arguments from domestic manufacturer Vulcan Threaded Products Inc. in Pelham, Ala., that the Commerce Department miscalculated the anti-dumping duty rates and set them too low.

As a result of the ruling, the duty rates, ranging from 0 percent to 11.07 percent, will not be changed.

Specifically, the court rejected Vulcan’s argument that Commerce should not have selected data from Bulgaria to calculate the normal value of these rods. Because China is a non-market economy, Commerce uses surrogate data from free market countries to make such calculations.

Steel threaded rod is primarily used in construction, where it supports electrical conduit; pipes for plumbing; heating, ventilation, and air conditioning ductwork; and sprinkler pipes for fire protection systems. The U.S. imported about $85.3 million worth of these products from China in 2008, before the duties were put in place, according to Commerce.

The ruling is a win for the government and Chinese companies Jiaxing Brother Fastener Co., Ltd., IFI & Morgan Ltd., Zhejiang New Oriental Fasteners Co., and RMB Fasteners Ltd., which took part in the case.

The case is Vulcan Threaded Products Inc. v. United States , Ct. Int’l Trade, No. 16-00268, 4/18/18 .

To contact the reporter on this story: Brian Flood in Washington at bflood@bloomberglaw.comTo contact the editor on this story: Jerome Ashton at jashton@bloomberglaw.com

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