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August 19, 2019

U.S. Commerce Department Investigating On CORE Product Circumvention

In a statement released last Wednesday, the U.S. Department of Commerce announced that it has begun an initial investigation into whether certain corrosion-resistant steel imports (CORE) are circumventing antidumping and countervailing duties that the United States has in place on products from China and Taiwan.

The inquiry will focus on whether exports of these goods from Costa Rica, Guatemala, Malaysia, South Africa and the United Arab Emirates (UAE) are using substrates from Chinese or Taiwan to evade U.S. penalties.

This investigation marks the first time the Commerce Department has self-initiated a circumvention inquiry based on trade pattern monitoring. If the department determines circumvention is occurring in the preliminary phase of its probe, it will instruct U.S. Customs and Border Protection to start collecting cash deposits on the imports in question.

Shipments of CORE from Costa Rica, Guatemala, Malaysia, South Africa and the UAE to the United States have increased in value by 29,210 percent, 35,944 percent, 151,216 percent, 629 percent and 5,571 percent, respectively, comparing import data from the 45-month period before and after the initiations of the original AD/CVD investigations on Chinese and Taiwanese CORE.

Click here to read the Commerce Department’s announcement.