New Trade Case on Imports of Certain Steel Nails From India, Oman, Sri Lanka, Thailand, and Turkey
AuthorsMark R. Ludwikowski , R. Kevin Williams , William C. Sjoberg , Aristeo Lopez
New U.S. antidumping (“AD”) duty and countervailing duty (“CVD”) petitions were filed on Dec. 30, 2021, by Mid Continent Steel & Wire, Inc. against imports of certain steel nails from India, Oman, Sri Lanka, Thailand, and Turkey.
The merchandise covered by this petition consists of certain steel nails having a nominal shaft or shank length not exceeding 12 inches, regardless of shaft diameter, gauge, or thickness. The shaft length of nails with flat heads or parallel shoulders should be measured from under the head or shoulder to the tip of the point. The shaft length of nails with other types of heads should be measured overall. Certain steel nails can be produced from any type or grade of steel. Certain steel nails are principally used to fasten two pieces of material, typically wood or other solid building materials. Certain steel nails include but are not limited to nails made of round wire and nails that are cut from strips, sheets, or plates of steel. In the case of certain steel nails that are cut from steel plates, the “diameter” shall be defined as the normal thickness of the plate from which the nail is made. Certain steel nails may be of one-piece construction or constructed of two or more pieces. The scope of this investigation is similar to the scope of the antidumping duty and/or countervailing duty orders on Korea, Malaysia, Oman, Taiwan, and Vietnam, but covers certain nails that were excluded from the scope of the previous proceedings and adds certain clarifications. Please see the scope section below for a full review of the proposed subject merchandise.
The petition includes AD (less than fair value) allegations against India, Sri Lanka, Thailand, and Turkey and CVD (countervailing duty) allegations against India, Oman, Sri Lanka, Thailand, and Turkey. The Department of Commerce (“DOC”) and the International Trade Commission (“ITC”) will conduct the investigations. Within the next 45 days, the ITC will determine if there is a reasonable indication that the imports are injuring the U.S. industry. If the ITC finds that standard is met, then the cases will move to the DOC which will calculate the preliminary AD duty margins.
The DOC’s preliminary determinations are currently scheduled for March 25, 2022 (CVD) and June 8, 2022 (AD) which are the dates when importers will be required to deposit the calculated duties upon the products’ entry in the U.S. market.
There are strict statutory deadlines associated with these proceedings and affected companies are advised to prepare as soon as possible. If this product is of interest to you, please let us know so that we can provide you with additional information as it becomes available.
The following are key facts about this trade case:
Petitioners: Mid Continent Steel & Wire, Inc.
Foreign Producers/Exporters and US Importers: Please contact us for a listing of individual companies named in the petition.
AD/CVD margins: Petitioners have alleged the following AD/CVD margins:
- India: calculated dumping margins between 65.70 and 98.12 percent, ad valorem, and a CVD margin above de minimis;
- Oman: a CVD margin above de minimis;
- Sri Lanka: calculated dumping margins between 33.46 and 99.33 percent, ad valorem, and a CVD margin above de minimis;
- Thailand: calculated dumping margins between 63.86 and 65.28 percent, ad valorem, and a CVD margin above de minimis; and
- Turkey: calculated AD margins between 31.78 and 35.98 percent, ad valorem, and a CVD margin above de minimis.
Merchandise covered by the scope of the case:
The merchandise covered by this investigation is certain steel nails having a nominal shaft or shank length not exceeding 12 inches. Certain steel nails include but are not limited to nails made from round wire and nails that are cut from flat-rolled steel or long-rolled flat steel bars. Certain steel nails may be of one piece construction or constructed of two or more pieces. Examples of nails constructed of two or more pieces include, but are not limited to, masonry anchors comprised of an anchor made of zinc or nylon and a steel nail; zinc anchors; crimp drive anchors; split-drive anchors, and strike pin anchors. Also included in the scope are anchors of one piece construction.
Certain steel nails may be produced from any type of steel and may have any type of surface finish, head type, shank, point type, and shaft diameter. Finishes include, but are not limited to, coating in vinyl, zinc (galvanized, including but not limited to electroplating or hot dipping one or more times), phosphate, cement, and paint. Certain steel nails may have one or more surface finishes. Head styles include, but are not limited to, flat, projection, cupped, oval, brad, headless, double, countersunk, and sinker. Shank or shaft styles include, but are not limited to, smooth, barbed, screw threaded, ring shank, and fluted.
Screw-threaded nails subject to this proceeding are driven using direct force and not by turning the nail using a tool that engages with the head. Point styles include, but are not limited to, diamond, needle, chisel, and blunt or no point. Certain steel nails may be sold in bulk, or they may be collated in any manner using any material.
Excluded from the scope are certain steel nails packaged in combination with one or more non-subject articles, if the total number of nails of all types, in aggregate regardless of size, is less than 25. If packaged in combination with one or more non-subject articles, certain steel nails remain subject merchandise if the total number of nails of all types, in aggregate regardless of size, is equal to or greater than 25, unless otherwise excluded based on the other exclusions below.
Also excluded from the scope are certain steel nails with a nominal shaft or shank length of one inch or less that are (a) a component of an unassembled article, (b) the total number of nails is sixty (60) or less, and (c) the imported unassembled article falls into one of the following eight groupings: (1) Builders’ joinery and carpentry of wood that are classifiable as windows, French-windows and their frames; (2) builders’ joinery and carpentry of wood that are classifiable as doors and their frames and thresholds; (3) swivel seats with variable height adjustment; (4) seats that are convertible into beds (with the exception of those classifiable as garden seats or camping equipment); (5) seats of cane, osier, bamboo or similar materials; (6) other seats with wooden frames (with the exception of seats of a kind used for aircraft or motor vehicles); (7) furniture (other than seats) of wood (with the exception of (i) medical, surgical, dental or veterinary furniture; and (ii) barbers’ chairs and similar chairs, having rotating as well as both reclining and elevating movements); or (8) furniture (other than seats) of materials other than wood, metal, or plastics (e.g., furniture of cane, osier, bamboo or similar materials). The aforementioned imported unassembled articles are currently classified under the following Harmonized Tariff Schedule of the United States (HTSUS) subheadings: 4418.10, 4418.20, 9401.30, 9401.40, 9401.51, 9401.59, 9401.61, 9401.69, 9403.30, 9403.40, 9403.50, 9403.60, 9403.81 or 9403.89.
Also excluded from the scope of this investigation are nails suitable for use in powder-actuated hand tools, whether or not threaded, which are currently classified under HTSUS subheadings 7317.00.20.00 and 7317.00.30.00.
Also excluded from the scope of this investigation are nails having a case hardness greater than or equal to 50 on the Rockwell Hardness C scale (HRC), a carbon content greater than or equal to 0.5 percent, a round head, a secondary reduced-diameter raised head section, a centered shank, and a smooth symmetrical point, suitable for use in gas-actuated hand tools.
Also excluded from the scope of this investigation are corrugated nails. A corrugated nail is made up of a small strip of corrugated steel with sharp points on one side.
Also excluded from the scope of this investigation are thumb tacks, which are currently classified under HTSUS subheading 7317.00.10.00.
Also excluded from the scope are decorative or upholstery tacks.
Certain steel nails subject to this investigation are currently classified under HTSUS subheadings 7317.00.55.02, 7317.00.55.03, 7317.00.55.05, 7317.00.55.07, 7317.00.55.08, 7317.00.55.11, 7317.00.55.18, 7317.00.55.19, 7317.00.55.20, 7317.00.55.30, 7317.00.55.40, 7317.00.55.50, 7317.00.55.60, 7317.00.55.70, 7317.00.55.80, 7317.00.55.90, 7317.00.65.30, 7317.00.65.60 and 7317.00.75.00. Certain steel nails subject to this investigation also may be classified under HTSUS subheadings 7907.00.60.00, 8206.00.00.00, or other HTSUS subheadings. While the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this investigation is dispositive.
If you have any questions regarding the content of this alert, please contact Mark Ludwikowski (firstname.lastname@example.org; 202-640-6680), Kevin Williams (email@example.com; 312-985-5907); William Sjoberg (firstname.lastname@example.org; 202-772-0924), Courtney Gayle Taylor (email@example.com; 202-552-2350); Aristeo Lopez ( firstname.lastname@example.org;(202) 552-2366)or another member of Clark Hill’s International Trade Business Unit.