New Antidumping Duty and Countervailing Duty Petitions on Slag Pots From China

At a Glance

• WHEMCO-Steel Castings, Inc., a domestic producer of slag pots, filed antidumping and countervailing duty petitions on slag pots from China.
• Investigations related to these petitions could result in increased prices and/or decreased supply of slag pots.
• The U.S. Department of Commerce is expected to begin investigations on January 21, 2025.

On December 31, 2024, antidumping (AD) and countervailing duty (CVD) petitions were filed on slag pots from China. The petitions were filed by WHEMCO-Steel Castings, Inc. (Petitioner).

The U.S. AD law imposes special tariffs to counteract imports that are sold in the United States at less than “normal value.” The U.S. CVD law imposes special tariffs to counteract imports that are sold in the United States with the benefit of foreign government subsidies. For AD/CVD duties to be imposed, the U.S. government must determine not only that dumping and/or subsidization is occurring, but also that there is “material injury” (or threat thereof) by reason of the dumped and/or subsidized imports. Importers are liable for any potential AD/CVD duties imposed. In addition, these investigations could impact purchasers by increasing prices and/or decreasing supply of slag pots.

Scope

Please note that this section was not written by our authors but is taken verbatim from the petition.

The scope of the petitions covers slag pots with a nominal capacity of 65 cubic feet to 1200 cubic feet regardless of shape, form, or finish.

Slag pots are load bearing devices typically formed as a curved shell designed to collect molten or solid slag generated during metallurgical or chemical processes. Slag pots are metallurgical goods typically produced either using a casting process or a fabrication process and may include a ceramic refractory coating, heat treatment or various finishes in order to handle high temperature slag. Slag pots are typically designed as lifting equipment and may include attachments to enable the transport of slag pots. Attachments may include 1) a connected stand 2) pivotal mounting hooks or brackets and 3) other attachments. The merchandise covered by this investigation includes all attachments of a fully assembled slag pot, regardless of whether shipped assembled or unassembled.

Subject slag pots are included within the scope whether finished or unfinished, whether imported individually or with other subject or non-subject parts, whether assembled or unassembled, or if joined with non-subject merchandise. Finishing includes, but is not limited to, arc washing, welding, grinding, shot blasting, heat treatment, machining, and assembly of various parts.

The country of origin for subject slag pots whether fully assembled, unfinished or finished, is the country where the subject slag pot was cast or forged. Subject merchandise includes slag pots that have been further processed or further assembled. Further processing includes, but is not limited to, arc washing, welding, grinding, shot blasting, heat treatment, painting, coating, priming, machining, and assembly of various parts. The inclusion, attachment, joining, or assembly of nonsubject parts with subject merchandise either in the country of manufacture of the in-scope product or in a third country does not remove the subject slag pots from the scope.

Slag pots subject to the investigation are specified within the Harmonized Tariff Schedule of the United States (HTSUS) under subheading 7309.00.0090. The HTSUS subheading is provided for convenience and customs purposes only. The written description of the scope of the investigations is dispositive.

Estimated Dumping Margins

The Petitioner alleges a dumping margin of 319.25%.

The Petitioner also alleges significant subsidies, although the petition does not quantify the alleged net subsidy margin.

Estimated Schedule of Investigations

The following is an estimated schedule of investigations by the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC):