June 19, 2015

U.S. Government Attaches New Duties on Steel Nails

By Richard Ferrin and Douglas Heffner

For your information, on June 16, 2015, the U.S. International Trade Commission voted affirmative in connection with final injury investigations on certain steel nails from Korea, Malaysia, Oman, Taiwan, and Vietnam. This follows determinations by the U.S. Department of Commerce (DOC) that certain steel nails from all five countries were being sold at less than fair value, and that certain steel nails from Vietnam were being unfairly subsidized.

For details regarding the antidumping (AD) and countervailing duty (CVD) margins calculated by the DOC, along with the scope of the AD and CVD orders, please see the DOC’s fact sheet, found here. Please note that the DOC subsequently amended the final AD determination regarding Malaysia, changing the margin for Region System Sdn. Bhd. and Region International Co., Ltd. and “all others” from 2.61 percent to 2.66 percent.

As a result, the DOC will issue AD orders on certain steel nails from Korea, Malaysia, Oman, Taiwan, and Vietnam, and a CVD order on certain steel nails from Vietnam. Importers of nails covered by the scope of the AD and CVD orders should ensure that they are making cash deposits of AD and CVD duties at the updated AD and CVD cash deposit rates.    

Note that, because the United States operates a retrospective AD and CVD duty assessment procedure, the AD and CVD cash deposits paid at the time of entry may not be an importer’s final liability for AD and CVD duties. Rather, final liability is established pursuant to the final results of an administrative review, which could occur a year or more after the initiation of any administrative review. In other words, an importer’s liability could be higher or lower than the cash deposit rate it paid at the time of entry, meaning that the importer could owe additional AD/CVD duties or get a refund of AD/CVD duties, depending on the results of the administrative review.

For further information, contact Douglas J. Heffner or Richard P. Ferrin or any other member of the Customs and International Trade Team.

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