Encore Wire Corporation and Southwire Company, LLC (“Petitioners”), on September 21, 2018, filed antidumping (AD) and countervailing duty (CVD) petitions on imports of aluminum wire and cable from China.
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 subsidies are 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 aluminum wire and cable.
The scope of the petitions covers aluminum wire and cable (“AWC”), which is defined as an assembly of one or more electrical conductors made from 8000 Series Aluminum Alloys, Aluminum Alloy 1350, and/or Aluminum Alloy 6201, provided that: (1) at least one of the electrical conductors is insulated; (2) each insulated electrical conductor has a voltage rating greater than 80 volts and not exceeding 1000 volts; and (3) at least one electrical conductor is stranded and has a size not less than 16.5 kcmil and not greater than 1000 kcmil. The assembly may or may not: (1) include a grounding or neutral conductor; (2) be clad with aluminum, steel, or other base metal; or (3) include a steel support center wire, one or more connectors, a tape shield, a jacket or other covering, and/or filler materials.
Most AWC products conform to National Electrical Code (“NEC”) types THHN, THWN, THWN-2, XHHW-2, USE, USE-2, RHH, RHW, or RHW-2, and also conform to Underwriters Laboratories (“UL”) standards UL-44, UL-83, UL-758, UL-854, UL-1063, UL- 1277, UL-1569, UL-1581, or UL-4703, but such conformity is not required for the merchandise to be included within the scope.
The scope of the petitions specifically excludes conductors that are included in equipment already assembled at the time of importation. Also excluded are aluminum wire and cable products in lengths less than six feet.
The merchandise covered by the petitions is currently classifiable under subheading 8544.49.9000 of the Harmonized Tariff Schedule of the United States (“HTSUS”). Products subject to the petitions may also enter under HTSUS subheading 8544.42.9090. The HTSUS subheadings are provided for convenience and customs purposes. The written description of the scope of the petitions is dispositive.
Alleged Dumping Margins
The petitioners allege dumping margins of between 53.2 percent and 63.1 percent.
Estimated Schedule of Investigations
- September 21, 2018 – Petition is filed
- October 11, 2018 – DOC initiates investigation
- October 12, 2018 – ITC staff conference
- November 5, 2018 – Deadline for ITC preliminary injury determinations
- December 17, 2018 – Deadline for DOC preliminary CVD determination, if not postponed
- February 19, 2018 – Deadline for DOC preliminary CVD determination, if fully postponed
- February 28, 2019 – Deadline for DOC preliminary AD determination, if not postponed
- April 19, 2019 – Deadline for DOC preliminary AD determination, if fully postponed
- September 3, 2019 – Deadline for DOC final AD determination, if both preliminary and final determinations are fully postponed
- October 18, 2019 – Deadline for ITC final injury determinations, assuming fully postponed DOC deadlines
For further information, contact Douglas J. Heffner, Richard P. Ferrin, or any other member of the Customs and International Trade Team.