Import Sensitive China Products: Importer Beware

Over the last several years, many US importers have called me after learning that they are facing liability for antidumping and countervailing duties on a number of different products. These duties can be in the millions of dollars, even though the importers simply did not know that the products they were importing were covered by US antidumping and countervailing duty orders. Far too few companies realize that they can be held liable for duties for importing products into the United States.

This post highlights the breadth of products currently subject to antidumping and countervailing duty orders and it thus should serve as a warning to anyone in the United States who imports those products.

If you were an importer of solar rechargers for RV units are you aware that your product is covered by the US antidumping order on solar cells from China? If you were importing curtain walls/the sides of buildings, auto parts, geodesic domes, and lighting equipment, do you know that all of those products were covered by US antidumping and countervailing duty orders against aluminum extrusions?

The US presently has more than 130 antidumping and countervailing duty orders against China and hundreds of additional such orders against imports from other countries. The orders against Chinese products block more than $30 billion in imports and they can stay in place for 5 to 30 years. The orders can also expand to cover downstream products, such as curtain walls, solar cell consumer products, and gardening equipment.

With regards to China, more than 80 of the antidumping and countervailing duty orders are against raw materials, chemicals, metals and various steel products, used in downstream US production. In the Steel area, there are orders against the following Chinese steel products: carbon steel plate, hot rolled carbon steel flat products, circular welded and seamless carbon quality steel pipe, rectangular pipe and tube, circular welded austenitic stainless pressure pipe, steel threaded rod, oil country tubular goods, steel wire strand and wire, high pressure steel cylinders, non-oriented electrical steel, and carbon and certain alloy steel wire rod.

There are ongoing investigations against cold-rolled steel and corrosion resistant/galvanized steel so almost all Chinese steel products from China are blocked by US antidumping and countervailing duty orders.

In addition to steel, other metal products, such as silicomanganese, metallurgical coke, magnesium, silicon metal, and graphite electrodes, which are used in downstream steel production, are also blocked by antidumping orders. Electrolytic Manganese Dioxide used to produce batteries is also covered, which led Panasonic to close its US battery factory and move to China. The Magnesium orders have led to the destruction of the US Magnesium Dye Casting industry and to the movement of light weight auto parts production to Canada.

In addition to steel and metal products, chemicals products, such as sulfanilic acid, polyvinyl alcohol, barium carbonate, potassium permanganate, activated carbon, glycine, isocyanurates/swimming pool chemicals, xanthan gum, citric acid, and calcium hypochlorite, are covered by orders. The antidumping order on sulfanilic acid led to the injury of the US optical brightening industry, which brought its own antidumping case against China.

In addition to raw materials, many household products are covered by antidumping and countervailing duty orders as well, including ironing tables, steel sinks, wood flooring, wooden bedroom furniture, steel shelving, and steel cooking ware. Other consumer products covered are: tires, hand trucks, lawn groomers, steel nails, paper clips, pencils, ribbons, paper products, gift wrap and heavy forged hand tools.

Food products, such as shrimp, honey, crawfish and garlic, are also covered by antidumping orders against China and other countries.

At this point, any product being imported from China is at least somewhat import sensitive and thus is at some risk of being attacked by US trade actions. This means that you as an importer should monitor the products you import for any potential trade sanctions. And if you should be hit with sanctions, know that you can request an antidumping or countervailing duty review investigation to get the rates reduced and with that your own liability for past imports.

We will be discussing the practical aspects of Chinese law and how it impacts business there. We will be telling you what works and what does not and what you as a businessperson can do to use the law to your advantage. Our aim is to assist businesses already in China or planning to go into China, not to break new ground in legal theory or policy.