MOFCOM Announcement No. 51 of 2013 on Executing WTO’s Ruling Against Grain Oriented Flat-rolled Electrical Steel

August 12, 2013 - 10:16 BJT (17:16 GMT)   MOFCOM

Issued by: Ministry of Commerce of the People’s Republic of China
Announcement No. 51, 2013
Date of Issuance: July 31, 2013

In order to execute the ruling and recommendation of the Dispute Solution Body of World Trade Organization on the panel report and the report of the appeal body concerning the appeal from the U.S. against China’s levy of countervailing duties and anti-dumping duties against imports of grain oriented flat-rolled electrical steel originated in the U.S., in accordance with the provisions of Regulations of the People’s Republic of China on Anti-dumping and Countervailing Regulation of the People's Republic of China, the Ministry of Commerce issued an announcement on June 14, 2013, deciding to reinvestigate the anti-dumping measures and countervailing measures applicable to imports of grain oriented flat-rolled electrical steel originated in the U.S.. The grain oriented flat-rolled electrical steel (hereinafter referred to as the Products under Investigation) is listed under the tariff numbers of 72251100 and 72261100 in the Customs Import and Export Tariff of the People’s Republic of China.

The investigating authority, based on the evidence materials provided by each interested party and collected by the investigating authority during the original investigation and according to the recommendations of the panel and the appeal body, has re-examined some procedures and physical issues, on which the original anti-dumping measures and the original countervailing measures were based. According to the review results and in accordance with provisions of Regulations of the People’s Republic of China on Anti-dumping, Countervailing Regulation of the People's Republic of China and the Interim Rules on Executing Rules of Trade Remedy and Disputes of the World Trade Organization, the Ministry of Commerce has made a ruling for reinvestigation (please see the attachment). Relevant matters are hereby announced as follows:

I. Ruling for Reinvestigation

After the reexamination, the Ministry of Commerce ruled that there were dumping of and subsidies for imports of grain oriented flat-rolled electrical steel originated in the U.S.; China’s domestic industry of gain oriented flat-rolled electrical steel was substantially damaged, and there was causal relationship among the dumping, the subsidies and the substantive damage.

II. Products under Investigation and Scope of Investigation

Scope of investigation: imports of grain oriented flat-rolled electrical steel originated in the U.S.

Name of Products under Investigation: 取向性硅电钢、取向电工钢 or 冷轧取向硅钢。

English name of Products under Investigation: Grain Oriented Flat-rolled Electrical Steel.

Detailed description of the Products under Investigation: It is a kind of alloy steel flat-rolled product, containing, by weight, at least of 0.6% of silicon and no more than 0.08% of carbon and containing no more than 1.0% of aluminum. The other elements it contains do not endow it with the features of the other alloy steel; its thickness is no more than 0.56 mm; those with a rolled shape may have any width; those with a shape of plate have a width that is at least ten times as much as the thickness.

Main usage: It is a necessary soft magnetic material in electric power industry that is mainly applied in various transformers, rectifiers, reactors, large electric machines, etc.

The Products under Investigation are listed under the tariff numbers of 72251100 and 72261100 in the Customs Import and Export Tariff of the People’s Republic of China.

III. Adjustment of Anti-dumping Duties

In accordance with Regulations of the People’s Republic of China on Anti-dumping and the Interim Rules on Executing Rules of Trade Remedy and Disputes of the World Trade Organization, the Ministry of Commerce proposed suggestions on adjustment of anti-dumping duties to the Customs Tariff Commission of the State Council, which then decided in accordance with suggestions from the Ministry of Commerce, as of the next day of this Announcement, to impose anti-dumping duties at adjusted rates on imports of grain oriented flat-rolled electrical steel originated in the U.S..

Rates of anti-dumping duties imposed on companies are as follows:
1.AK Steel Corporation 7.8％
2. Allegheny Ludlum Corporation 19.9%
3. All Others 13.8%

As of August 1, 2013, importers shall pay relevant anti-dumping duties at the adjusted duty rates to the Customs of the People’s Republic of China when importing grain oriented flat-rolled electrical steel originated in the U.S. The anti-dumping duties shall be levied by means of ad valorem on the basis of dutiable value authorized by China Customs, and the formula is: Anti-dumping duties = (dutiable value authorized by China Customs x rate of anti-dumping duties). The import value-added tax shall be levied by means of ad valorem with the dutiable value authorized by China Customs plus the tariff and anti-dumping duties as the taxable value.

IV. Adjustment of Countervailing Duties

In accordance with Regulations of Countervailing Regulation of the People's Republic of China and the Interim Rules on Executing Rules of Trade Remedy and Disputes of the World Trade Organization, the Ministry of Commerce proposed suggestions on adjustment of countervailing duties to the Customs Tariff Commission of the State Council, which then decided in accordance with suggestions from the Ministry of Commerce, as of the next day of this Announcement, to impose countervailing duties at adjusted rates on imports of grain oriented flat-rolled electrical steel originated in the U.S..

Rates of countervailing duties imposed on companies are as follows:
1. AK Steel Corporation 3.4%
2. Allegheny Ludlum Corporation 3.4%
3. All Others 3.4%

As of August 1, 2013, importers shall pay relevant countervailing duties at the adjusted duty rates to the Customs of the People’s Republic of China when importing grain oriented flat-rolled electrical steel originated in the U.S. The countervailing duties shall be levied by means of ad valorem on the basis of dutiable value authorized by China Customs, and the formula is: countervailing duties = (dutiable value authorized by China Customs x rate of countervailing duties). The import value-added tax shall be levied by means of ad valorem with the dutiable value authorized by China Customs plus the tariff and countervailing duties as the taxable value.

V. Administrative Reconsideration and Administrative Litigation

Any person who refuses to accept the ruling of this case and the decision to levy anti-dumping and countervailing duties may, according to provisions of Article 53 of Regulations of the People’s Republic of China on Anti-dumping and Article 52 of Countervailing Regulation of the People’s Republic of China, apply for an administrative reconsideration or initiate a litigation to the people's court according to law.

VI. This Announcement shall come into force as of August 1, 2013.

This Announcement is hereby given.

Ministry of Commerce of the People’s Republic of China
July 31, 2013

Translated by Hou Zuowei

(All information published in this website is authentic in Chinese. English is provided for reference only. )