Trade Cases

China Steel Rack Imports Assigned AD/CVD Duties

August 22, 2019

The U.S. International Trade Commission determined on Tuesday that unfair imports of steel racks from China are causing material injury to domestic producers and should be subject to duties. The final decision follows the Department of Commerce AD/CVD determination that the racks are subsidized and sold in the U.S. at less than fair value.

As a result of the USITC affirmative determination, Commerce will issue antidumping and countervailing duty orders on the products. Dumping rates determined by Commerce last month ranged from 18.06 percent to 144.50 percent. A subsidy rate of 1.50 percent was assigned to China’s Nanjing Dongsheng Shelf Manufacturing Co., a rate of 102.23 percent for 16 companies that failed to respond to Commerce’s request for information, and a rate of 1.50 percent for all other Chinese producers and exporters. The rates will be in effect for five years until they are reviewed for renewal.

USITC describes the racks as: a structure consisting of the following hot-rolled or cold-formed steel structural components: (1) vertical columns connected by braces, (2) load-bearing horizontal beams, and (3) locking devices to secure the beams to the columns. The racks are utilized for short- or long-term holding of products or materials in warehouses, order-fulfillment and distribution centers, big-box retail stores, and manufacturing facilities.

The petitioner in the investigation is the Coalition for Fair Rack Imports representing U.S. domestic producers of steel racks.