US DOC sets CVD on imports of wire decking from China

Thursday, 05 Nov 2009

Department of Commerce on November 3rd announced its affirmative preliminary determination in the countervailing duty investigation on imports of wire decking from the People’s Republic of China.

Subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods.

Commerce preliminarily determined that Chinese producers and exporters have received net countervailable subsidies ranging from 2.02 to 437.73%. Mandatory respondents, Dalian Huameilong Metal Products Co Ltd and Dalian Eastfound Metal Products received net subsidy rates of 2.02% and 3.13% respectively.

In this investigation, there are a significant number of companies that did not complete Commerce’s Quantity and Value Questionnaire. As a result, these companies will receive an adverse rate of 437.73% for non responsiveness. All other Chinese exporters received a net subsidy rate of 2.58%.

As a result of this preliminary determination, Commerce will instruct US Customs and Border Protection to collect a cash deposit or bond based on these preliminary rates. The petitioners for this investigation are AWP Industries, Inc, ITC Manufacturing Inc, J&L Wire Cloth Inc, Nashville Wire Products Mfg Co Inc and Wireway Husky Corporation.

The product covered by this investigation is welded wire rack decking produced from carbon or alloy steel wire that has been welded into a mesh pattern. The wire mesh is reinforced with structural supports and designed to be load bearing. Wire decking reinforced with structural supports is designed generally for industrial and other commercial storage rack systems.

The product covered by this investigation is currently classified in the Harmonized Tariff Schedule of the United States under item number: 9403.90.8040. Wire Decking may also be entered under HTSUS 7217.10, 7217.20, 7217.90, 9403.20.0020 and 9403.20.0030. While the HTSUS subheading is provided for convenience and customs purposes, Commerce written description of the subject merchandise governs the scope of these investigations.

From 2006 to 2008, imports of wire decking from China increased 49% by value and amounted to an estimated USD 317 million in 2008. This HTSUS subheading however is a basket category covering not only subject merchandise but also other metal furniture parts.