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The U.S. International Trade Commission (ITC), finding that imported aluminum wire and cable from China was sold below market rates and had been supported by illegal subsidies, has imposed substantial penalties.

A press release said the ruling supports the Oct. 22 findings of the U.S. Department of Commerce’s (DoC) that Chinese manufacturers had been selling these products into the U.S. market at less than fair market value and receiving illegal subsidies from the Chinese government. It issued two separate penalties that ITC has now approved.

DoC had set a dumping rate of 63.47% for mandatory respondents Shanghai Silin Special Equipment Co., Ltd. and Hebei Huatong Wires and Cables Group Co., Ltd.; a separate rate of 58.51% for certain other companies; and 63.47% for all other Chinese producers and exporters. The subsidy rate was 165.63% to mandatory respondents Shanghai Silin Special Equipment Co., Ltd. and Shanghai Yang Pu Qu Gong; 33.44% to mandatory respondent Changfeng Wire & Cable Co., Ltd.; and 33.44% for all other Chinese producers and exporters.

An official of Southwire Company, which along with Encore Wire Corporation had petitioned for the penalties, lauded the decision. “Southwire has long been a believer in the power of free trade, and the ITC’s finding, coupled with the U.S. Department of Commerce’s final determinations on dumping and illegal subsidization, will better al-
low us to compete with Chinese producers of wire and cable on a level playing field,” said Southwire Executive Vice President and CCO Norman Adkins.

With the ITC vote, Commerce was expected to issue AD/CVD orders by Dec. 9, 2019. Commerce will also instruct U.S. Customs and Border Protection to begin collecting cash deposits on such imports at rates ranging from 81.27% to 218.42%. In 2018, imports of aluminum wire and cable from China were valued at an estimated $115 million.

The U.S. Department of Commerce (DoC) has imposed new duties of up to 63% on some Chinese aluminum wire and cable imports because of what was described as “price-dumping.”

Per a cited DoC statement, “(DoC) announced the affirmative preliminary determination in the antidumping duty (AD) investigation of imports of aluminum wire and cable from China, finding that exporters from China have dumped aluminum wire and cable in the United States at a margin of 58.51 to 63.47 percent."

Encore Wire Chairman, President and CEO Daniel Jones welcomed the decision, noting that, "These illegal trade practices have undermined our investments in aluminum wire production, which is an important complement to our market-leading copper wire business." 

A fact sheet accompanying the notice reported that U.S. imports of aluminum wire and cable from China were valued at more than $157 million in 2017. U.S. customs and border agents will begin collecting cash deposits from importers of these products at the same rates to offset unfair Chinese subsidies, the Commerce Department said.

The Trump administration, reports said, has initiated 168 investigations of unfair trade practices since taking office, more than double the number during a comparable period of the previous administration, according to the release.

 

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