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Trade Defence Cases in the United States, Mexico and Beyond

Timothy C. Brightbill

C5 Forum on International Trade Disputes

October 12, 2016

OutlineI. Trade Defense Cases and Countries

II. US Solar Cases

III. US Steel Cases

IV. Signs Your Industry May Be Subject to a Trade Case

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I. Trade Defense Cases and Countries Total antidumping measures in force as of June 2015:

• United States – 258

• India – 224

• Brazil – 159

• Turkey - 137

• China – 101

• European Union - 98

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I. Trade Defense Cases and Countries Total countervailing duty measures in force as of June

2015:

• United States – 60

• Canada - 18

• European Union – 15

• Australia – 9

New reports due in mid-October 2016

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I. Trade Defense Cases and Countries United States filed a series of new AD/CVD cases in

2015 and 2016

Largely driven by three major cases on steel flat-products – the first such cases in many years

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SOLARWORLD AMERICAS

Presentation12/22/2015

Solar Cells and Modules:

Overview of AD/CVD Orders and Enforcement Issues

Pre-Trade Case Import Surge

Solar I Trade Case Overview• “Solar I” – Original Investigation

• October 2011: AD/CVD petitions filed on Chinese cells/modules

• October 2012: Commerce Department issued final AD/CVD decisions

• November 2012: ITC reached final 6-0 affirmative injury determination

• December 2012: AD/CVD orders issued

• Duty Margins: AD CVD Combined

Trina 18.32% 15.97% 23.75%

Suntech 29.14% 14.78% 33.38%

Separate Rate/All Others

24.48% 15.24% 29.18%

China-Wide 249.96% 15.24% 265.20%

Solar I Trade Case Overview: Scope• Included:

• Chinese cells• Chinese modules made from Chinese cells• Modules made from Chinese cells, no matter where they are made into

modules• Excluded:

• Chinese modules made from non-Chinese cells• Thin-film solar products (NOT hybrid products)• Cells, not exceeding 10,000mm² in surface area, that are permanently

integrated into a consumer good whose function is other than power generation and that consumes the electricity generated by the integrated cell

Solar I Trade Case Overview• “Solar I” – Administrative Reviews

• Second Reviews:• Final results: current duty rates – most Chinese firms paying combined 26% - 32%

• Third Reviews (ongoing):• February 2016: Reviews initiated• December 2016 (unextended) or June 2017 (fully extended): Final results expected

AD CVD Combined

Yingli 12.19% 20.94% 33.13%

Suntech & JA Solar 8.52% 19.2% 27.72%

Trina 6.12% 19.2% 25.32%

Separate Rate/All Others 8.52% 19.2% 27.72%

China-Wide 238.95% 19.2% 259.89%

Effect of Solar I Trade Cases: Chinese Imports

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Effect of Solar I Trade Cases: Taiwanese Imports

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Closing the Gap: Solar II Trade Case Overview• “Solar II” – Original Investigation

• December 2013: AD/CVD petitions filed

• February 2015: AD/CVD orders issued

• Duty Margins:

• Solar II” – first administrative reviews

have begun

China

AD Margin CVD Combined

Trina 26.71% 49.21% 59.95%Suntech 52.13% 27.64% 63.83%Renesola 78.42% 38.43% 116.85%Separate Rate/All Others 52.13% 38.43% 74.60%China-Wide 165.04% 38.43% 187.51%

TaiwanAD Margin

Gintech Energy 27.55%Motech Industries, Inc. 11.45%All Others 19.50%

Closing the Gap: Solar II Trade Case Overview -Scope

• Taiwan AD Order:• Cells from Taiwan, no matter where they are made into modules

• China AD/CVD Orders:• Modules from China made from cells from any country except China

• Chinese cells, and modules from China made from Chinese cells, are subject to the Solar I orders

• Country of origin of ingots and wafers is irrelevant for purposes of country of origin analysis

Effects of the Trade Cases• Prices and imports stabilized for more than a year

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U.S. Solar Imports from China 2011 - 2015

Effects of the Trade Cases

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U.S. Solar Imports from Taiwan - 2012-2015

Solar Court Appeals• Numerous court appeals from the Solar I case (DOC and ITC),

and Solar 2 cases (China, Taiwan, DOC and ITC) are ongoing

• Current scope appeals on bificial/hybrid products

Growth of Third Country Shipments

2014 2015 % Increase

Malaysia $895,826,367 $1,306,900,809 46%

Mexico $506,206,862 $911,898,922 80%

Singapore $57,592,018 $426,531,974 641%

South Korea $110,721,735 $403,658,335 265%

Vietnam $7,407,974 $176,934,837 2288%

“Hybrid”/Thin Film Cell Imports• Commerce has ruled that bifacial cells/modules are

subject to the AD/CVD orders. These are crystalline silicon cells with a layer of amorphous silicon to boost efficiency

• Scope rulings:

• SolarCity’s/Silevo’s Triex Cells

• Sunpreme’s Bi-Facial Cells

U.S. Solar Trade Cases - Summary• Most Chinese imports of cells and modules subject to

AD/CVD duties of about 30 percent

• U.S. demand still strong

• Prices had stabilized until recently

• U.S.- China settlement complicated by China’s AD cases against U.S. and EU polysilicon manufacturers

• Chinese relocation to third countries = overcapacity

III. US Steel Cases The U.S. steel industry filed a series of new trade

cases in 2015 and 2016 to address harm caused by dumping, subsidies and overcapacity

Three cases have been won, and orders are now in place: hot-rolled, cold-rolled and corrosion-resistant

Two additional cases are underway: plate and rebar

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III. US Steel Cases The Obama Administration and Commerce

Department have placed greater emphasis on trade enforcement in recent years, in part to gain support for new trade agreements like TPP and for T-TIP negotiations

Steel subsidies and overcapacity have been a focus of recent OECD and even G20 talks

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AD/CVD Orders on Flat Products Carbon Steel Plate Products

• 1997 group

• 2000 group

Hot-Rolled Flat Products • 1999 Russia order

• 2001 group

Cold-Rolled Steel Products• 2015-16 cases

Corrosion-Resistant Steel Products• 2015-16 cases

• 2016 cases (ongoing)

• 2015-16 cases

Steel plate

AD/CVD Orders on Flat Products –Cut-to-Length Steel Plate

1997 Order group• Antidumping Duty orders cover three countries: China,

Russia and the Ukraine

2000 Order group• Antidumping : India, Indonesia, and Korea• Countervailing Duty : India, Indonesia, and Korea

2016 Investigation group• Antidumping investigations on twelve countries: Austria,

Belgium, Brazil, China, France, Germany, Italy, Japan, Korea, South Africa, Taiwan, and Turkey

• Countervailing Duty investigations on three countries: Brazil, China, and Korea

AD/CVD petitions filed on April 8, 2016• Austria, Belgium, Brazil, China, France, Germany, Italy,

Japan, Korea, South Africa, Taiwan, and Turkey

Expected dates:

• Sept. 2016: first preliminary CVD findings: affirmative on China (210.5%), negative on Korea

• Nov. 2016: USDOC preliminary AD findings

• March 2017: USDOC final AD/CVD findings

• April 2017: USITC final injury vote

Cut-to-Length Steel PlateNEW PETITIONS

Hot-rolled steel

Hot-Rolled Steel Flat ProductsDUTY DEPOSIT RATES

Country Producer AD Rate CVD Rate Country Producer AD Rate CVD Rate

Australia (2015 Group) A-602-809 India (2001 Group) A-533-820 C-533-821

BlueScope Steel 29.37% SAIL all others 18.27%

All Others 29.37% Tata Steel 38.72% 102.74%

Brazil (2015 Group) A-351-845 C-351-846 All Others 42.39% 16.10%

CSN 33.14% 11.30% Indonesia (2001 Group) A-560-812 C-560-813

Usiminas 34.28% 11.09% PT Krakatau Steel 47.86% 10.21%

All Others 33.14% 11.20% All Others 47.86% 10.21%

China (2001 Group) A-570-865 Japan (2015 Group) A-588-874

Angang 90.83% JFE Steel Corp. 7.51%

Benxi Iron & Steel 90.83% Nippon Steel/Sumitomo 4.99%

Panzhihua I/S 65.59% All Others 5.58%

Shanghai Baosteel 12.39% Korea (2015 Group) A-580-883 C-580-884

Wuhan Iron & Steel 65.69% POSCO/Daewoo 3.89% 57.04%

PRC-Wide 90.83% Hyundai Steel 9.49% 3.89%

India (2001 Group) A-533-820 C-533-821 All Others 5.55% 3.89%

Essar Steel Ltd. 28.26% 76.88% Netherlands (2015 Group) A-421-813

Ispat Industries 0.00% 15.27% Tata Steel Ijmuiden 3.73%

JSW Steel 0.24% 76.88% All Others 3.73%

Hot-Rolled Steel Flat ProductsDUTY DEPOSIT RATES


Russia (1999 Group) A-821-809 Turkey (2015 Group) A-489-826 C-429-827

JSC Severstal 73.59% Colakoglu 7.15% 0.34%

All Others 184.56% Ergeli 3.66% 6.01%

Taiwan (2001 Group) A-583-835 All Others 6.67% 6.01%

China Steel Corp. 29.14% Ukraine (2001 Group) A-823-811

An Feng Steel 29.14% Country-wide 90.33%

All Others 20.28%

Thailand (2001 Group) A-549-817 United Kingdom (2015 Group) A-412-825

G Steel Public Co. 20.30% Tata Steel UK 33.06%

Nakornthai Strip Mill 8.23% All Others 33.06%

Sahaviriya Seel Indus. 9.04%

Siam Strip Mill Public 19.72%

All Others 3.86%

Cold-Rolled Steel Products

Antidumping duty and countervailing duty orders cover seven countries

AD/CVD petitions filed on July 28, 2015

• Sept. 11, 2015: USITC affirmative initial injury vote

• Dec. 15, 2015: USDOC preliminary CVD findings

• Mar. 1, 2016: USDOC preliminary AD findings

• June 22, 2016: USITC first affirmative final injury votes

• July 21, 2016: USDOC final AD/CVD findings

• August 2016: USITC final injury vote

Cold-Rolled Steel Flat Products

Final duty rates (AD and CVD)


Brazil A-351-843 C-351-844 Korea A-580-881 C-580-882

CSN 19.58% 11.31% POSCO/Daewoo 6.32% 58.36%

Usiminas 35.43% 11.09% Hyundai Steel 34.33% 3.91%

All Others 19.58% 11.20% All Others 20.33% 3.91%

China A-570-029 C-570-030 Russia A-821-822 C-821-823

Angang Group 256.44% JSC Severstal 13.36% 0.62%

Benxi Iron & Steel 256.44% Novolipetsk Steel 1.04% 6.95%

Qian'an Golden Point 256.44% All Others 13.36% 6.95%

PRC-Wide 265.79% 256.44%

India A-533-865 C-533-866

JSW Steel Ltd. 7.60% 10.00%

All Others 7.60% 10.00%

Cold-Rolled Steel Flat ProductsDUTY DEPOSIT RATES

Country Producer AD Rate

Japan A-588-873JFE Steel Corp. 71.35%Nippon Steel/Sumitomo 71.35%All Others 71.35%

United Kingdom A-412-824Caparo Precision Strip 5.40%

Tata Steel UK 25.56%All Others 22.92%

Final duty rates (AD and CVD)

Cold-Rolled Steel Flat ProductsDUTY DEPOSIT RATES

Corrosion-Resistant Steel Products

Final duty rates (AD and CVD)Country Producer AD Rate CVD Rate Country Producer AD Rate CVD Rate

China A-570-026 C-570-027 India A-533-863 C-533-864

Angang Group PRC-Wide 241.07% JSW Steel 4.44% 29.46%

Baoshan Iron/Steel PRC-Wide 241.07% Uttam Galva Steel 3.05% 8.00%

Changshu Everbright PRC-Wide 241.07% All Others 3.86% 18.73%

Hebei Iron & Steel PRC-Wide 241.07% Italy A-475-832 C-475-833

Handan Iron & Steel PRC-Wide 235.66% Acciaieria Arvedi 12.63% excluded

Jiangyin Zhongcheng 209.97% PRC-Wide Marcegaglia 92.12% excluded

TISCO PRC-Wide 241.07% Ilva All Others 38.51%

Union Steel China 209.97% PRC-Wide All Others 12.63% 13.02%

Yieh Phui (China) 209.97% 39.05%

PRC-Wide 209.97% 39.05%

Corrosion-Resistant Steel Flat ProductsDUTY DEPOSIT RATES

Final duty rates (AD and CVD)Country Producer AD Rate CVD Rate Country Producer AD Rate

Korea A-580-878 C-580-879 Taiwan A-583-856

Dongkuk Steel 8.75% All Others Prosperity Tieh 10.34%

Hyundai Steel 47.80% 1.19% Yieh Phui Enterpr. 10.34%

Union Steel 8.75% excluded All Others 10.34%

All Others 28.28% 1.19%

Corrosion-Resistant Steel Flat ProductsSCOPE OF THE ORDERS

Mill Test Certificate RequiredA mill test certificate is required for steel products by 19 C.F.R. §141.89:

Iron or steel classifiable in Chapter 72 or headings 7301 to 7307, HTSUS (T.D. 53092, 55977)--Statement of the percentages by weight or carbon and any metallic elements contained in the articles, in the form of a mill analysis or mill test certificate.

Must be in English, or accompanied by an accurate English translation (19 C.F.R. § 141.86(d))

No ranges! Exact percentages only…

I. Antidumping Orders for Concrete Reinforcing Bar (Rebar)

Belarus

China

Indonesia

Latvia

Moldova

Poland

Ukraine

Rebar 2000 cases:

Current Rebar Antidumping Duties2000 Cases

Belarus: (Inv. A-822-804)

• All producers 114.53%

China: (Inv. A-570-860)

• Laiwu Steel 133.00%

• All other producers 133.00%

Indonesia: (Inv. A-560-811)• PT Gunung Gahapi Sakti 71.01%• Master Steel 71.01%• Mfg. Co. PT Bhirma Steel 71.01%• Krakatau Wajatama 71.01%• PT Jakarta Steel Perdana 71.01%• PT Pulogadung Steel 71.01%• Jakarta Cakra Tunggal 71.01%• PT Hanil Jaya Metal Works 71.01%• All others 60.46%

Latvia: (Inv. A-449-804)

• Liepajas Metalurgs 4.87%*


Moldova: (Inv. A-841-804)


Poland: (Inv. A-455-803)• Stalexport 52.07%


Ukraine: (Inv. A-823-809)


Mexico: (Inv. A-201-844)• Deacero S.A.P.I. de C.V. (A-201-844-001)

20.58%

• Grupo Acerero S.A. de C.V. (A-201-844-002)66.70%

• Grupo Simec (A-201-844-003)

66.76%

• All Other producers (A-201-844-000)

20.58%Turkey: (Inv. C-489-819)

• Icdas Celik (C-489-819-002)1.25%

• All Other producers (C-489-819-000)1.25%

2013 Rebar Antidumping and Countervailing Duty Orders

New Rebar Cases Japan, Taiwan and Turkey

Preliminary ITC staff conference October 11

Potential AD/CVD duty deposits first half of 2017

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Other Steel Cases in U.S. Steel grating (China)

Wire rod (multiple countries)

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IV. Signs that a Trade Case May Be Coming

Import surges / price declines from particular countries

Cases in other countries

US: Section 332 investigations

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IV. Advice for Respondents in Trade Cases

Before a case:

Export to multiple countries

Dumping = selling below home market price or (fully loaded) cost of production

“Dump-proofing”

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IV. Advice for Respondents in Trade Cases During a case:

Ask for extensions of time

Complete reporting of sales is essential

Verification process is critically important

Participate to the best of your ability, or face adverse facts available

Use reputable law firms and consultants – cheating is not worth it

Importer of record is liable for duties

US prospective system means duty amounts won’t be known for years after the time of importation

Commerce vs. ITC strategy (or both)

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IV. Advice for Respondents in Trade Cases After a case: Foreign manufacturers may not pay the duties for their customers

(duty absorption) Circumvention and evasion are illegal – and US industries have new

tools Use new shipper reviews and admin. reviews to potentially reduce

duties Respondent selection process in US (two largest) Scope reviews Work with Customs and Border Protection

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Timothy C. BrightbillWiley Rein LLP

1776 K Street, NWWashington DC 20006

[email protected]

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