Steel pipes to be exported are seen at a port in Lianyungang, Jiangsu province, in China in May 2018. Photo: China Daily via Reuters
Source:
https://scmp.com/news/china/article/3022843/us-commerce-department-examine-whether-chinese-steel-getting-around-us China
US Commerce Department to examine whether Chinese steel is getting around US penalties
- Authorities investigating whether products made with base material from China are being finished and shipped from other countries to avoid steep penalties
- Steel products from China are subject to anti-dumping and countervailing duties
A poster showing Chinese President Xi Jinping is seen in front of the Xinyuan Steel plant in Anyang, Henan province, in February. Photo: Reuters
This story is published in a content partnership with POLITICO. It was originally reported by Adam Behsudi on politico.com on August 14, 2019.
The US Commerce Department announced on Wednesday that it would initiate for the first time an investigation to determine if steel from China is circumventing protective US tariffs.
The inquiry will determine if corrosion-resistant steel products made with base material from China and Taiwan are being finished and shipped from Costa Rica, Guatemala, Malaysia, South Africa and the United Arab Emirates to avoid steep penalties.
Commerce said shipments of corrosion-resistant steel from the five countries grew exponentially – by as much as 151,000 per cent in the case of Malaysia. The increase occurred over a 45-month period before and after the initial investigations on exports from China and Taiwan.
The steel products from China are subject to anti-dumping and countervailing duties. Exports of the items from Taiwan are subject only to anti-dumping duties.
Allegations of duty circumvention are usually raised by US companies, but the Commerce Department is beginning an investigation on its own.
The Trump administration in 2017 also self-initiated a trade case against exports of aluminium sheet from China – a move that hadn’t been taken by Commerce in more than 25 years.