New Antidumping and Countervailing Duty Petitions on Stainless Steel Kegs from Germany, Mexico and China
By Douglas J. Heffner and Richard P. Ferrin
The American Keg Company LLC (“Petitioner”), on September 20, 2018, filed antidumping (AD) petitions on imports of refillable stainless steel kegs from Germany, Mexico and China, and a countervailing duty (CVD) on imports of refillable stainless steel kegs from China.
The U.S. AD law imposes special tariffs to counteract imports that are sold in the United States at less than “normal value.” The U.S. CVD law imposes special tariffs to counteract imports that are sold in the United States with the benefit of foreign government subsidies. For AD/CVD duties to be imposed, the U.S. government must determine not only that dumping and/or subsidies are occurring, but also that there is “material injury” (or threat thereof) by reason of the dumped and/or subsidized imports. Importers are liable for any potential AD/CVD duties imposed. In addition, these investigations could impact purchasers by increasing prices and/or decreasing supply of refillable stainless steel kegs.
Scope
The merchandise covered by this investigation are cylindrical kegs, vessels, or containers capable of being pressurized made from stainless steel (i.e., steel containing at least 10.5 percent chromium by weight and less than 1.2 percent carbon by weight, with or without other elements) ("refillable stainless steel kegs") with a nominal liquid volume capacity of 10 liters or more, regardless of the type of finish, gauge, thickness, or grade of stainless steel, regardless of finish, and whether or not covered by or encased in other materials. Refillable stainless steel kegs may be imported assembled or unassembled, with or without all components (including spears, couplers or taps, necks, collars, and valves), and filled or unfilled. Assembled refillable stainless steel kegs must be capable of being pressurized to 60 pounds per square inch ("PSI") and must be tested to 90 PSI.
"Unassembled" or "unfinished" refillable stainless steel kegs include drawn stainless steel cylinders that have been welded to form the body of the keg and welded to an upper (top) chime and/or lower (bottom) chime. Unassembled refillable stainless steel kegs may or may not be welded to a neck, may or may not have a valve assembly attached, and may be otherwise complete except for testing, certification and/or marking.
Subject merchandise also includes refillable stainless steel kegs that have been further processed in a third country, including but not limited to, attachment of necks, collars, spears or valves, heat treatment, pickling, passivation, painting, testing, certification or any other processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the in-scope refillable stainless steel keg. Specifically excluded are the following:
- vessels or containers that are not cylindrical in nature;
- stainless steel kegs, vessels, or Containers that have either a "ball lock" valve system or a "pin lock" valve system (commonly known as a "Cornelius," "corny" or "ball lock" kegs);
- any fully assembled or finished stainless steel keg, vessel, or container that is incompatible with a "D Sankey" extractor (commonly known as a "D Coupler" or "Sankey"); and
- necks, spears, couplers or taps, collars, and valves that are not imported with the subject merchandise.
- stainless steel kegs that are filled with beer, wine, or other liquid and that are designated by the Commissioner of Customs as Instruments of International Traffic within the meaning of section 332(a) of the Tariff Act of 1930, as amended.
The merchandise covered by this investigation are currently classified in the Harmonized Tariff Schedule of the United States ("HTSUS") under subheading 7310.10.0010, 7310.10.0050, 7310.29.0025, and 7310.29.0050. These HTSUS subheadings are provided for convenience and customs purposes; the written description of the scope of this investigation is dispositive.
Alleged Dumping Margins
The petitioner alleges the following dumping margins:
- Germany: 76.36 percent
- Mexico: 25.39 percent
- China: 196.55 percent
Estimated Schedule of Investigations
- September 20, 2018 – Petition is filed
- October 10, 2018 – DOC initiates investigation
- October 11, 2018 – ITC staff conference
- November 5, 2018 – Deadline for ITC preliminary injury determinations
- December 14, 2018 – Deadline for DOC preliminary CVD determination, if not postponed
- February 19, 2018 – Deadline for DOC preliminary CVD determination, if fully postponed
- February 27, 2019 – Deadline for DOC preliminary AD determination, if not postponed
- April 18, 2019 – Deadline for DOC preliminary AD determination, if fully postponed
- September 3, 2019 – Deadline for DOC final AD determination, if both preliminary and final determinations are fully postponed
- October 18, 2019 – Deadline for ITC final injury determinations, assuming fully postponed DOC deadlines
For further information, contact Douglas J. Heffner, Richard P. Ferrin, or any other member of the Customs and International Trade Team.
The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.
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