Today, U.S. Secretary of Commerce Wilbur Ross announced the affirmative preliminary determinations in the countervailing duty (CVD) investigations of stainless steel flanges from the People’s Republic of China (China) and India, finding that exporters in China and India received countervailable subsidies of 174.73 percent, and from 5.00 to 239.61 percent, respectively.

The Commerce Department will instruct U.S. Customs and Border Protection to collect cash deposits from importers of stainless steel flanges from China and India based on these preliminary rates.

“With a 58 percent increase in trade cases initiated since President Trump took office, this Administration has made it a clear priority to defend domestic businesses from unfair trade practices,” said Secretary Ross. “Today’s preliminary decision allows U.S. producers to receive relief from the market-distorting effects of potential government subsidies while we continue our investigation.”

In 2016, imports of stainless steel flanges from China and India were valued at an estimated $16.3 million and $32.1 million, respectively.

The petitioners are the Coalition of American Flange Producers and its individual members: Core Pipe Products, Inc. (Carol Stream, IL) and Maass Flange Corporation (Houston, TX).

Enforcement of U.S. trade law is a prime focus of the Trump administration. From January 20, 2017, through January 17, 2018, Commerce has initiated 84 antidumping and countervailing duty investigations – a 62 percent increase from 52 in the previous year.

CVD law provides U.S. businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair subsidization of imports into the United States. Commerce currently maintains 418 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.

Commerce is currently scheduled to announce its final CVD determinations on April 3, 2018, and May 29, 2018, for China and India, respectively.

If the Commerce Department makes affirmative final determinations of subsidization and the U.S. International Trade Commission (ITC) makes affirmative final injury determinations, Commerce will issue CVD orders. If the Commerce Department makes negative final determinations of subsidization or the ITC makes negative final determinations of injury, the investigations will be terminated and no order will be issued.

Click HERE for a fact sheet on today’s decisions.

The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based solely on factual evidence.

Imports from companies that receive unfair subsidies from their governments in the form of grants, loans, equity infusions, tax breaks and production inputs are subject to “countervailing duties” aimed at directly countering those subsidies.