U.S. countervailing duties on hot-rolled steel from Brazil

The Commerce Department this week announced its determinations from a countervailing duty investigation into imports of certain hot-rolled flat steel products from Brazil, South Korea and Turkey.    The Commerce Department this week announced its determinations from a countervailing duty investigation into imports of certain hot-rolled flat steel products from Brazil, South Korea and Turkey.
   Countervailable subsidies are financial assistance provided by foreign governments to boost exports by incentivizing manufacturers to use domestic goods over imported goods as inputs.
   In its Brazil investigation, Commerce preliminarily determined that Companhia Nacional Siderurgica (CSN) and Usinas Siderurgicas de Minas Gerais SA both received a subsidy rate of 7.42 percent. All other producers/exporters in Brazil have been assigned a preliminary subsidy rate of 7.42 percent.
   With the South Korea investigation, Commerce preliminarily determined that POSCO and Daewoo International Corp. and Hyundai Steel Co., Ltd. received subsidy rates of 0.17 percent and 0.63 percent, respectively, which are both de minimis, while in its Turkey investigation the department determined that Colakoglu Dis Ticaret A.S. and Eregli Demir ve Celik Fabrikalari T.A.S. received subsidy rates of 0.38 percent and 0.23 percent, respectively, which are also both de minimis. 
   “Based on an allegation filed in the Brazil case, Commerce found that critical circumstances exist with regard to certain producers/exporters from Brazil of hot-rolled steel,” the department explained. “Critical circumstances are found when there has been a surge in imports over a relatively short period of time in anticipation of the possible imposition of antidumping or CVD duties. In the CVD context, a finding that exporters received subsidies that are inconsistent with the WTO Agreement on Subsidies and Countervailing Measures is also required.”
   The petitioners for these investigations included AK Steel Corp. in Ohio, ArcelorMittal USA of Illinois, Nucor Corp. in North Carolina, SSAB Enterprises of Illinois, Steel Dynamics in Indiana, and U.S. Steel Corp. of Pennsylvania.
   According to Commerce, imports of certain hot-rolled steel flat products from Brazil, Korea, and Turkey in 2014 were valued at an estimated $146.3 million, $678.8 million, and $218.4 million, respectively.
   Commerce is scheduled to announce its final determinations by May 24, unless the statutory deadline is extended.
   If Commerce makes affirmative final determinations, and the U.S. International Trade Commission makes affirmative final determinations that imports of hot-rolled steel flat products from Brazil, Korea, or Turkey harm domestic industry, Commerce will issue countervailing duty orders. If either Commerce’s or the ITC’s final determinations are negative, no orders will be issued.
   The ITC is scheduled to make its final injury determinations in July.