Contributing Lawyers

Canada

Cyndee Todgham Cherniak

United States

Susan Kohn Ross

Australia

Andrew Hudson



Allegations of Chinese AD Duty Circumvention in the United States

Sandler Travis is reporting that two separate U.S.-based coalitions of U.S. steel industry companies are alleging that antidumping duty orders on certain steel goods from China are being circumvented. These screams have been made before. What is different this time is the creation of the coalitions.

With respect to the U.S antidumping duty order in respect of certain pipe and tube from China, the ad hoc U.S. Coalition has been documenting imports that it believes are being transshipped or in respect of which the origin is being misstated as Vietnam, Malaysia or Oman. The information has been provided to U.S. Customs and Border Protection (US CBP) for further investigation.

With respect to the U.S. antidumping order steel wire products from China, a different ad hoc U.S. Coalition of steel wire producers have indicated that they have gathered “compelling evidence" of "deliberate evasion" of the AD order. They are advocating that US CBP require:

"the collection of cash deposits on suspect merchandise at points of entry into the U.S., stationing at least one CBP official at each of the major seaports and land border crossings to concentrate on enforcement of these AD duty orders, incorporating specific enforcement language into the customs reauthorization bill and expanding the Department of Commerce’s authority to investigate transshipment and other evasion activities."

Drastic new measures on all to catch some circumvention will likely lead to an escalation in what is already a percolating trade war.  However, given the current trade tensions and Obama's promises to the steel workers to enforce trade remedies, actions to combat circumvention are a real possibility.

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