FR 2021-02335

In a recent decision, the Department of Commerce has announced a countervailing duty order on a specific type of steel wire known as prestressed concrete steel wire strand (PC strand) that is imported from Turkey. This decision comes after the Department and the International Trade Commission (ITC) concluded that these subsidized imports are harmful to U.S. industry.

General Summary

The document outlines the issuance of a countervailing duty order, which is a type of tariff imposed to counteract subsidies provided by foreign governments to their exporters. The primary focus of this document is on PC strand products from Turkey, an item used in construction applications. Effective from February 3, 2021, this decision mandates that U.S. Customs and Border Protection (CBP) collect additional duties on these specific imports. The document provides detailed procedural information on how these duties will be applied and managed.

Significant Issues or Concerns

For those outside the legal or trade compliance sectors, the document's use of technical and legal terminology can present challenges. References to statutory sections and standards, such as sections of the Tariff Act or the ASTM-A-475 standard, could confuse readers unfamiliar with these specific legal provisions. Moreover, understanding the implications of various import duty rates, deposit requirements, and procedural timelines can be daunting without a background in commerce law.

Public Impact

Broadly, this order aims to protect U.S. industries by leveling the playing field against subsidized imports that could undermine domestic production. For the general public, this may help preserve jobs in sectors producing similar goods domestically. It also supports the idea of fair trade by ensuring foreign competitors are not unfairly advantaged by government subsidies.

Stakeholder Impact

Positively Impacted Stakeholders:

• U.S. Manufacturers: Companies producing similar products in the United States are likely to benefit from reduced competition from subsidized imports, potentially leading to increased sales and market share.

• Workers in the Construction Material Industry: Jobs in this sector may become more secure as domestic manufacturers are shielded from potentially detrimental foreign competition.

Negatively Impacted Stakeholders:

• Importers and Distributors: Businesses that rely on importing these materials from Turkey could face higher costs due to the new duties. This could lead to increased prices for these products in the U.S. market.

• Turkish Exporters: Companies in Turkey that produce and export PC strand to the United States may experience reduced demand due to the additional financial burden placed on their products.

In conclusion, while the countervailing duty order is a defensive mechanism intended to protect domestic industries and contribute to fair international trade, it poses challenges for certain business sectors dealing in global supply chains. The impacts should be carefully balanced to support both economic fairness and industrial competitiveness.