Coalition wants U.S. to take stand on Chinese racks

Commerce launches antidumping and countervailing duty investigations of imported steel products.    The Commerce Department has initiated antidumping and countervailing duty investigations of imported steel racks from China.
   Dumping occurs when a foreign company sells its products in the U.S. market at less than fair value, while countervailable subsidies are given by foreign governments to companies based on their export performance or use of domestic materials over imports.
   The petitioner for the antidumping duty and countervailing duty investigations is the Coalition for Fair Rack Imports, with members including Bulldog Rack Co. of Weirton, W.Va.; Hannibal Industries in Los Angeles; Husky Rack and Wire of Denver, N.C.; Ridg-U-Rak in North East, Pa.; Marysville, Mich.-based SpaceRak; Speedrack Products Group Ltd. of Sparta, Mich.; Steel King Industries in Stevens Point, Wis.; Tri-Boro Shelving & Partition Corp. of Farmville, Va.; and Springfield, Tenn.-based UNARCO Material Handling.  
   The coalition alleges that dumping margins on steel rack imports from China range from 130 percent to 144.5 percent. There are 28 subsidy programs alleged, including five preferential loan and interest rate programs, one debt-to-equity swap program, six income tax and other direct subsidy programs, two indirect tax programs, seven less than adequate remuneration programs, as well as seven grant programs, the petition said.
   The coalition also estimates that imports of steel racks in 2017 were valued at $200 million.
   The U.S. International Trade Commission is scheduled to make its preliminary injury determinations for these petitions by Aug. 6. If the ITC determines that there is a reasonable indication that imports of Chinese steel racks harm the domestic industry, then the investigations will continue. Commerce is scheduled to make its preliminary antidumping determination for this petition in November. However, if the ITC’s determinations are negative, the investigations will end.