Commerce finds subsidized steel flange imports from China, India

Steel flange exporters in China receive government subsidies of 174.73 percent, while in India, these exporters receive government subsidies ranging from 5 percent to 239.61 percent, according to the U.S. Commerce Department.    The U.S. Commerce Department has preliminarily determined that certain U.S. imports of steel flanges receive unfair countervailable subsidies from the Chinese and Indian governments.
   According to the department, steel flange exporters in China receive government subsidies of 174.73 percent, while in India these exporters receive government subsidies ranging from 5 percent to 239.61 percent.
   Countervailable subsidies are given to companies by foreign governments based on their export performance or use of domestic inputs over imports in their manufacturing.
   Specifically, in its China investigation, Commerce calculated a preliminary subsidy rate of 174.73 percent for Both Well (Jiangyan) Steel Fittings Co. Ltd., Hydro Fluid Controls Ltd., Jiangyin Shengda Brite Line Kasugai Flange Co. Ltd., and Qingdao I-Flow Co. Ltd., due to their failure to cooperate with the investigation. The department assessed the same preliminary subsidy rate against all other Chinese producers and exporters of this product.
   In the India investigation, Commerce calculated a preliminary subsidy rate of 239.61 percent for Bebitz Flanges Works, due to the company’s failure to cooperate with the investigation, and a preliminary subsidy rate of 5 percent for Echjay Forgings Private Ltd. Commerce assessed a subsidy rate of 5 percent for all other Indian producers and exporters of this product.
   Commerce will now instruct Customs and Border Protection to collect cash deposits from importers of stainless steel flanges from China and India based on these preliminary rates.
   According to Commerce, imports of stainless steel flanges from China and India in 2016 were valued at $16.3 million and $32.1 million, respectively.
   The petitioner for the investigation is the Coalition of American Flange Producers, along with its members Core Pipe Products of Carol Stream, Ill., and Maass Flange Corp. in Houston.
   Commerce is scheduled to announce its final countervailing duty determinations on April 3 and May 29, for China and India, respectively.
   If Commerce makes affirmative final subsidy determinations and the U.S. International Trade Commission (ITC) similarly makes affirmative final injury determinations, the department will issue countervailing duty orders. If the department makes negative final subsidy determinations, or the ITC makes negative final determinations of injury, the investigations will end and no countervailing duty orders will be issued.