News

AIIS shows its voice in recent AMM article: Import bonding cost ‘probably high’: AIIS | American Metal Market

AIIS shows its voice in recent AMM article Import bonding cost ‘probably high’: AIIS April 18, 2017 | Dom Yanchunas NEW YORK — President Trump’s executive order calling for bonding requirements on importers at high risk of evading duties is likely to increase costs on new entrants into the business and on importation of goods from companies that have recently restructured, according to the American Institute for International Steel (AIIS). Established importers may face “pitfalls” from the president’s order, and the cost of bonding would be “probably high,” Steven Baker, chair of AIIS’s customs committee, said in a press release April 17. Small companies may face similar requirements to large companies, Baker said. The existing importers may encounter the higher costs if they restructure or establish new subsidiaries, said Baker, a customs and international trade attorney based in Novato, Calif. Imports of low-duty goods may find themselves posting bond or making cash deposits based on the highest applicable duty rates. “This order will most likely have its most significant impact on importers of goods subject to anti-dumping and countervailing duties that have no prior experience importing such commodities, or have defaulted on or made late payments of such duties assessed against them,” Baker wrote. “Although this might seem to exclude established importers and those with compliant payment records, there are a number of possible pitfalls.” Trump on March 31 signed the executive order with the intention of improving the compliance rate after an estimated $2.3 billion in imposed duties were uncollected as of 2015. U.S. Steel Corp., Synalloy Corp., American Iron and Steel Institute and other domestic producer interests...

Administrative Review of AD Order on OCTG from Vietnam (2014/2015) – Final Results

Falls Church, VA. April 20, 2017. Earlier today, the U.S. Department of Commerce (DOC) announced its final results in the administrative review of the antidumping (AD) order on oil country tubular goods (OCTG) from Vietnam. The review covered one producer/exporter – SeAH Steel VINA Corporation – during the period from February 25, 2014 through August 31, 2015. The DOC calculated a final dumping margin of zero (0.00%) for SeAH Steel VINA Corporation. The previous dumping duty deposit rate for SeAH Steel VINA Corporation was 25.18%. Accordingly, effective today, April 20, 2017, the dumping duty deposit rate became 0.00% for SeAH Steel VINA Corporation. In addition, the DOC will send instructions to U.S. Customs and Border Protection to liquidate imports that were entered during the period of review at the applicable dumping...

Steel Trade Policy – Section 232 Investigation by U.S. Department of Commerce

Falls Church, VA. April 20, 2017. Earlier today, the President signed a memorandum which directed the Secretary of Commerce to prioritize an investigation into the effects of steel imports on U.S. national security. The investigation is being conducted under the provisions of Section 232 of the Trade Expansion Act of 1962 – a provision which has not been used since 2001. Section 232 authorizes the Secretary of Commerce to conduct comprehensive investigations to determine the effects of imports of any article on the national security of the United States. Section 232 investigations include consideration of (a) domestic production needed for projected national defense requirements; (b) domestic industry’s capacity to meet those requirements; (c) the importation of goods in terms of their quantities and use; (d) the close relation of national economic welfare to U.S. national security; (e) the loss of skills or investment, substantial unemployment and decrease in government revenue; and (f) the impact of foreign competition on specific domestic industries and the impact of displacement of any domestic products by excessive imports as well as other factors. The Department of Defense is also involved in Section 232 investigations. The Department of Commerce must report to the President within 270 days of initiation, and the report should focus on whether the importation of the articles in question – i.e., steel products – are in such quantities or under such circumstances as to threaten to impair the national security. The President can take action to “adjust the imports of an article and its derivatives”. That is a very broad grant of authority. In previous Section 232 investigations, the President has...

AIIS Expresses ‘Concern’ about Steel Imports Investigation

Falls Church, VA. April 20, 2017. AIIS President Richard Chriss said his association is “concerned about the nature and scope of this investigation,” which, he said, should not be used as a basis to shield domestic manufacturers from fair price competition. “At the very least, we hope that the Secretary will consider the national security and economic implications of protectionist policies that would limit the availability of steel and drive up its price,” Chriss said. “In addition, we should remember that it is quite likely that any trade restrictions imposed by the United States will invite retaliatory measures by other nations against exports from the United States, both steel related and non-steel related, which could have serious economic and security consequences of their own.” “We can and should address the global excess steel capacity problem without resorting to protectionist measures of our own,” Chriss added. “Free trade in steel means that Americans pay global market prices,” Chriss said. “While this competition may indeed reduce the profits of domestic manufacturers, other steel-related businesses and consumers benefit from not having to pay the artificially high prices that would result from measures that restrict trade.” Despite these concerns, Chriss said that AIIS will seek to work with investigators “to provide objective data and information that will counter the misperceptions about steel imports on which this investigation appears to be based.” “An unbiased examination will show that imported steel strengthens the nation’s economy and security,” Chriss said. “AIIS stands ready to work with the Secretary and his staff on this critical...

DOC Investigation of Countries with Significant Trade Imbalances with the United States

Falls Church, VA. April 17, 2017. The U.S. Department of Commerce (DOC) has announced that it and the United States Trade Representative (USTR) have been directed by the President to prepare a study on the countries with which the United States has significant balance-of-trade deficits and the reasons for these deficits. According to the DOC, the countries with which the United States had a significant trade deficit in 2016 (in alphabetical order) were Canada, China, the European Union, India, Indonesia, Japan, Korea, Malaysia, Mexico, Switzerland, Taiwan, Thailand, and Vietnam. Among the subjects to be covered by the study are: (1) The major causes of the trade deficit including, as applicable, differential tariffs, non-tariff barriers, injurious dumping, injurious government subsidization, intellectual property theft, forced technology transfer, denial of worker rights and labor standards, and any other form of discrimination against the commerce of the United States. (2) The effects of the trade relationship on the production capacity and strength of the manufacturing and defense industrial bases of the United States. (3) Identification of imports and trade practices that may be impairing the national security of the United States. (4) The extent to which non-market economies create trade imbalances. (5) The extent to which chronic industrial overcapacity resulting from government subsidies affect the U.S. trade deficit. (6) The extent to which free trade agreements contributed to bilateral trade deficits. While the impact of steel and other metal imports are not specifically mentioned in the DOC’s announcement, we expect that the U.S. steel and metals industries will submit comments – particularly with respect to items (1), (2), (4), and (5). Comments are...

Protected: Administrative Review of AD Order on OCTG from Korea (2014/2015) – Publication of Final Results

Falls Church, VA. April 17, 2017. The U.S. Department of Commerce (DOC) has published in today’s issue of the Federal Register the final results of its administrative review of the antidumping (AD) order on oil country tubular goods (OCTG) from Korea. The administrative review covered a number of Korean producers and exporters of OCTG during the period from July 18, 2014 through August 31, 2015. The DOC calculated the following final dumping margins for the two mandatory respondents in this review: 24.92% for NEXTEEL Co., Ltd. and 2.76% for SeAH Steel Corporation. The DOC assigned a final dumping margin of 13.84% to the Korean producers/exporters that were subject to the review but not individually examined. They are: A.R. Williams Materials; AJU Besteel Co., Ltd.; AK Steel; BDP International; Cantak Corporation; Daewoo International Corporation; Dong-A Steel Co., Ltd.; Dong Yang Steel Pipe; Dongbu Incheon Steel; Dongbu Steel Co., Ltd.; Dongkuk S and C; DSEC; EEW Korea; Erndtebruecker Eisenwerk and Company; GS Global; H K Steel; Hansol Metal; HG Tubulars Canada Ltd.; Husteel Co., Ltd.; Hyundai Steel (a.k.a. Hyundai HYSCO Co., Ltd., Hyundai Steel Corporation and Hyundai Steel Co. Ltd.); ILJIN Steel Corporation; Kukbo Logix; Kukje Steel; Kumkang Industrial Co., Ltd.; McJunkin Red Man Tubular; NEXTEEL Q&T; Nippon Arwwl and Aumikin Vuaan Korea Co., Ltd.; Phocennee; POSCO Processing and Acy Service; Samson; Sedae Entertech; Steel Canada; Steel Flower; Steelpia; Sung Jin; TGS Pipe; Toyota Tsusho Corporation; UNI Global Logistics; and Yonghyun Base Materials. Accordingly, effective today, April 17, 2017, the dumping duty deposit rates became 24.92% for NEXTEEL, 2.76% for SeAH Steel, and 13.84% for the companies that were not individually...

February 2017 Steel Exports Press Release

Falls Church, VA. April 17, 2017. Steel exports rose slightly from January to February to total 827,559 net tons. February exports were 1.1 percent higher than in January and 6.2 percent higher than in February 2016. Monthly exports to Mexico rose 3.1 percent to 342,318 net tons (15.8 percent higher than a year earlier), but this was offset by a 3.2 percent decrease in exports to Canada to 394,313 net tons (nearly unchanged from the previous February). Exports to the European Union spiked 61.4 percent to 30,462 net tons (almost 71 percent higher than in February 2016). Through the first two months of the year, exports were up 5.4 percent over 2016 at 1.65 million net tons. This is largely because of a 13.5 percent increase in exports to Mexico, which totaled 674,219 net tons in January and February. Year-to-date exports to Canada crept up 2.3 percent to 801,599 net tons, while exports to the European Union rose 34.2 percent to 49,337 net tons. Mexico accounts for about 40 percent of steel exports from the United States, and, overall, it is the nation’s third-largest trading partner, importing $236 billion of goods each year. This is a clear reminder of the importance of free trade and the damage that would be wrought on the American economy by pursuing policies in opposition to that, such as abandoning the North American Free Trade Agreement. It appears that President Donald Trump is easing off his threats to NAFTA, but he remains committed to tightening the steel trade. Trump has admirably adjusted his positions on several issues as he has learned more about them...
Protected: CUSTOMS CORNER  Executive Order on Trade – Potential Effects on AD and CVD Entries

Protected: CUSTOMS CORNER Executive Order on Trade – Potential Effects on AD and CVD Entries

President Trump issued a March 31, 2017 Executive Order on Establishing Enhanced Collection and Enforcement of Antidumping and Countervailing Duties and Violations of Trade and Customs Laws. This Order will most likely have its most significant impact on importers of goods subject to Antidumping and Countervailing duties that have no prior experience importing such commodities, or have defaulted on or made late payment of such duties assessed against them. Although this might seem to exclude established importers and those with compliant payment records, there are a number of possible pitfalls. The Executive Order cites the failure of U. S. Customs and Border Protection to collect $2.3 billion in antidumping and countervailing duties owed to the government, and asserts the need to impose appropriate bonding requirements, based on risk assessments, to ensure future collections. The increased requirements would apply to “covered importers”, defined as “any importer of articles subject to antidumping or countervailing duties for which one of the following is true: U.S. Customs and Border Protection (CBP) has no record of previous imports by the importer; CBP has a record of the importer’s failure to fully pay antidumping or countervailing duties; or CBP has a record of the importer’s failure to pay antidumping or countervailing duties in a timely manner.” The Department of Homeland Security is directed to come up with a plan, within 90 days, to impose additional bonding requirements “and other legal measures” based on a risk assessment and in conformance with applicable laws. DHS is also directed to identify other appropriate enforcement measures. Unpaid AD and CVD amounts for the most part arise from the retrospective...

AIIS Steel News | March 2017

President’s Report March 2017 Steel-Con 2017– The Conference for the Steel Supply Chain—is Coming in Houston! As the leading voice on behalf of the steel supply chain, we well know that it is the leading edge of the American economy. In today’s uncertain and often turbulent times, supply chain challenges and issues are more consequential and urgent than ever. That’s why we are so excited about our new conference for the steel supply chain, Steel-Con 2017, on May 18-19 in Houston, Texas. We have carefully crafted this state-of-the-art event with your expectations and high standards in mind. You will leave informed, relaxed, refreshed, engaged, and eager to return. We aim to bring you the freshest industry insights and up-to-the-minute news and commentary. You will join colleagues and meet new friends as you hear leading experts discuss and assess vitally important developments that affect your business in maritime affairs, customs, trade law, finance, and related areas. You will experience all of this in the peerless Houstonian Hotel, Club & Spa, an in-city getaway nestled in an 18-acre wooded oasis in the heart of Houston, Texas. The Houstonian offers elegant accommodations; an exceptionally comfortable, spacious environment; outstanding food, beverages, and service; and, within a 2-minute, tree-shaded walk, one of the country’s most relaxing, comprehensive spas and recreation centers.   In addition to great learning and networking opportunities, you will also enjoy a boat tour of the Port of Houston. You may also wish to participate in the golf tournament at the end of our conference at the nearby Wildcat Golf Course. The Wildcat rivals the country’s finest private clubs, and I...
Share This