NEW YORK The
U.S. Court of International Trade (CIT) has remanded a Commerce
Department ruling that 4.75-millimeter wire rod produced by
Mexicos Deacero SA de CV be subject to anti-dumping
duties, leaving the door open for a reversal that could allow
Deacero to freely export small-diameter wire rod to the United
The remand sends the
case back to Commerce for reconsideration without overturning
Commerce set margins
on 5- to 19-mm wire rod from Mexico in 2002, and has renewed
those margins in sunset reviews, most recently in late October
amm.com, Oct. 24).
Deacero began shipping
4.75-mm wire rod to U.S. customers in 2009. It shipped 10,379
tonnes of wire rod to the United States in 2009 and 83,533
tonnes in 2010. The vast majority of the increase likely was
4.75-mm wire rod, in that it was the only type of wire rod not
subject to anti-dumping duties at the time.
including ArcelorMittal USA LLC, Evraz Rocky Mountain Steel,
Gerdau Long Steel North America and Nucor Corp., asked Commerce
to initiate a circumvention investigation in 2011, arguing that
the smaller-sized wire rod constituted a "minor alteration" to
the material and should be subject to the same dumping duties
as 5-mm wire rod. Commerce ruled in September 2012 that 4.75-mm
rod would not escape duties.
filed a complaint with the CIT in October 2012, alleging that
4.75-mm rod was not available in the United States and so
should be excluded from the dumping order on 5- to 19-mm
material. Deacero contends it is more efficient for certain
companies, like Glenview, Ill.-based Illinois Tool Works Inc.,
to use 4.75-mm wire rod (
amm.com, Oct. 31).
In its remand, the CIT
said 4.75-mm wire rod was commercially available before the
2002 anti-dumping order was implemented but was not included
within the original scope of the order. The court said
Commerces argument in its circumvention determination
that 4.75-mm wire rod was not specifically excluded from the
order was a "rigid and ultimately flawed approach."
If Commerce finds
another way to justify its ruling that the 4.75-mm wire rod
circumvented duties, then Deacero could again fight the
decision and take the case back to the CIT, according to a
source close to the situation. The decision could eventually be
appealed in the U.S. Court of Appeals, which would take it well
into next year.