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ANTIDUMPING & COUNTERVAILING DUTY INVESTIGATION


the People's Republic of Chinamagnesia bricksMexico   CERTAIN MAGNESIA CARBON BRICKS FROM CHINA & MEXICO

Petition: Petition
ITC Information: Initiation | Prelim
DOC Information:
Initiation Factsheet |
AD Initiation
CVD Initiation | CVD Prelim Factsheet | CVD Prelim
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DOC Questionnaires: Separate Rates Application | Q&V
FAQs
What are antidumping (AD) and countervailing (CVD) duties?

Why do I need to file a Quantity and Value Questionnaire?

Why do I need to file a Separate Rates Application?


Scope

Magnesia carbon bricks are a type of refractory brick used in furnaces primarily for the production of iron and steel. The merchandise subject to these investigations consist of chemically bonded (resin or pitch) magnesia carbon bricks with a magnesia component of at least 70 percent magnesia by weight, and with carbon levels ranging from trace amounts to 30 percent by weight.

The products covered by these investigations are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under the categories: 6902.10.10.00, 6902.10.50.00, 6815.91.00.00, and 6815.99. While the HTSUS subheadings are provided for convenience and customs purposes, Commerce's written description of the subject merchandise governs the scope of these investigations.
  No Countervailable Subsidies on Magnesia Carbon Bricks from China -- U.S. Department of Commerce announces preliminary determination in countervailing duty investigation
On December 17, 2009, the U.S. Department of Commerce announced its negative preliminary determination in the countervailing duty investigation of certain magnesia carbon bricks from China.  For the purposes of countervailing duty investigations, subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods.

The Department of Commerce preliminarily determined that Chinese producers/exporters have not received countervailable subsidies.  Mandatory respondent, the Mayerton Companies, was found to have received a preliminary net subsidy rate of 0.07%.  The other mandatory respondent, the RHI Companies, was found to have received a preliminary net subsidy rate of 0.88%.  Because the net countervailable subsidies for these respondents are less than one percent, Commerce considers the company rates to be de minimis or zero.  Further, because both mandatory respondents received a preliminary de minimis net subsidy rate, all other Chinese producers/exporters have also been assigned a preliminary de minimis net subsidy rate.

As a result of this negative preliminary determination, Commerce will not instruct U.S. Customs and Border Protection to collect a cash deposit or bond on imports of certain magnesia carbon bricks from China.



U.S. International Trade Commission votes to continue antidumping and countervailing duty investigations into magnesia carbon bricks from China and Mexico.

The U.S. International Trade Commission determined that there is a reasonable indication that a U.S. industry is materially injured or threatened with material injury by reason of imports of certain magnesia carbon bricks from China that are allegedly subsidized and from China and Mexico that are allegedly sold in the United States at less than fair value. The vote on China was 3 affirmative injury, 3 affirmative threat of injury. The vote on Mexico was 3 affirmative injury, 3 negative injury. (Unlike baseball, a tie does not go to the runner, but counts as an affirmative finding.) If the 3-3 injury call on Mexico is unchaged in the final, it most likely will be challenged in court. Although reversing a injury determination in court is difficult, the highest probability of success is when the decision is 3-3.

The 6-0 determination on China means it most likely will not be reversed. However, because 3 votes were only threat of injury, it may also be subject to judicial appeal. The reason is that different entries are affected by injury and threat of injury determinations. Once the U.S. Department of Commerce issues preliminary determinations setting antidumping and countervailing duty rates, importers must begin posting cash deposits or bonds in amounts equal to the preliminary duty rates. When threat of injury is the final call, duties may only be assessed on entries made on or after the date the final injury determination is published in the Federal Register. If the final call is affirmative injury, duties may be assessed on entries made on or after publication of the U.S. Department of Commerce's preliminary dumping and/or subsidy determinations.

Department of Commerce finds initial dumping margins for Mexico from 153% to 295%, and for China from 112% - 349% in Antidumping Duty Investigation of Magnesia Carbon Bricks
On August 25, the U.S. Department of Commerce published its decision to initiate antidumping (AD) and countervailing duty (CVD) investigations on imports of certain magnesia carbon bricks from Mexico (AD) and China (AD/CVD).  Resco Products, Inc. (PA) is the petitioning entity from the U.S. domestic magnesia carbon brick industry.  The U.S. International Trade Commission (ITC) is scheduled to make its preliminary injury determination on or about September 14, 2009.

From 2006 to 2008, imports of certain magnesia carbon bricks from China increased 3.78 percent by volume and were valued at an estimated $50.8 million in 2008. From 2006 to 2008, imports of certain magnesia carbon bricks from Mexico increased 7.66 percent by volume and were valued at an estimated $7.7 million in 2008.

Dumping occurs when a foreign company sells a product in the United States at less than normal value. Subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods.

The Department of Commerce found initial dumping margins for Mexico from 153% to 295%, and for China from 112% - 349%.   The Department of Commerce also found that that the petition contained enough information to find above de minimis subsidy margins from 21 alleged subsidy programs, including, tax benefit programs, direct grants, preferential lending, provision of goods and subsidized prices, export restraints on raw materials, and reimbursement of antidumping duties.

                                                                                                          

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