Background and Administrative Review Process
The U.S. Department of Commerce (Commerce) conducted an administrative review for the antidumping duty (AD) order on certain steel nails from Malaysia. The review, which covers the period from July 1, 2022, through June 30, 2023, examines whether companies in Malaysia have been selling steel nails at less than fair value, a practice known as dumping.
The purpose of the antidumping duty review is to determine the appropriate duties that should be applied to imports of certain steel nails from Malaysia. These duties are meant to counteract unfair pricing practices and ensure that domestic manufacturers in the U.S. are not harmed by imports being sold below fair market value.
Preliminary and Final Results of the Review
On July 30, 2024, Commerce published the Preliminary Results of the review, which suggested that certain steel nails were indeed being sold below normal value. Interested parties were invited to comment on these results, and after considering those comments, Commerce released its Final Results on April 7, 2025.
Key Findings of the Final Review:
• Dumping Margins: The review confirmed that certain companies were engaging in dumping during the review period. Specifically:
o Region International Co., Ltd. / Region System Sdn. Bhd.: 1.28% weighted-average dumping margin.
o Inmax Sdn. Bhd. / Inmax Industries Sdn. Bhd.: 0.74% weighted-average dumping margin.
o Non-Selected Respondents: A margin of 1.01% is assigned to companies that were not individually investigated during the review.
• Rescission of Review for 36 Companies: Commerce determined that 36 companies did not have any reviewable entries of subject merchandise during the period under review (POR). As a result, these companies were excluded from the final results, and the review for them was rescinded.
Methodology and Approach
In this review, Commerce continued to use its standard methodology for calculating the dumping margins for the companies involved. The weighted-average dumping margin is calculated based on the difference between the normal value (the price of the merchandise in the home market) and the export price to the U.S. for each company. If the normal value is higher than the export price, the company is determined to be dumping and subject to an antidumping duty.
For companies that were not individually investigated, Commerce applied a rate based on the weighted average of the margins for those that were investigated.
Impact of the Final Results
The final antidumping duty rates determined in this review will directly affect U.S. Customs and Border Protection's (CBP) liquidation instructions for steel nails from Malaysia that are subject to these duties. Importers will be required to pay duties based on the final rates if they have brought in these products during the review period.
These duties are critical for U.S. manufacturers of steel nails, as they are designed to counteract the effects of unfair pricing from foreign producers. By imposing antidumping duties, Commerce aims to protect domestic industries from harm caused by dumped imports.
Rescission of Review: Implications for Affected Companies
For the 36 companies whose reviews were rescinded, the absence of reviewable entries means they will not be subject to the same administrative procedures or final duties as other companies involved in the review. Rescinding the review for these companies is a standard procedure when no entries of merchandise are found during the review period.
These companies are not required to make any adjustments to their operations or pricing based on the antidumping duty results of this administrative review. However, if these companies export steel nails to the U.S. in future periods, they may be subject to additional review or investigation depending on the circumstances.
What’s Next for the Steel Nail Industry in Malaysia and the U.S.?
The final results of this administrative review will continue to shape the relationship between the U.S. and Malaysian steel nail manufacturers. Companies in Malaysia will likely take note of the new duties and adjust their export strategies accordingly. Some might look for ways to improve pricing practices, while others could attempt to appeal or challenge the ruling if they feel it is unjust.
U.S. steel nail manufacturers, on the other hand, will benefit from the continued enforcement of antidumping duties, which ensure a level playing field for domestic production. However, they may also face the challenge of higher prices for steel nails, which could affect construction and manufacturing costs.
Key Takeaways
• Final Antidumping Duty Rates: Certain companies in Malaysia are subject to the following final antidumping duties:
o Region International Co., Ltd./Region System Sdn. Bhd.: 1.28%
o Inmax Sdn. Bhd./Inmax Industries Sdn. Bhd.: 0.74%
o Non-Selected Respondents: 1.01%
• Rescission of Review for 36 Companies: 36 companies were not included in the final review due to the absence of reviewable entries of subject merchandise during the review period.
• Purpose of the Review: The review was conducted to determine whether steel nails from Malaysia were sold at less than fair value (dumped) and, if so, to set appropriate antidumping duties to protect U.S. manufacturers.
• Impact on U.S. Importers: Importers will need to pay antidumping duties based on the final rates established during the review if they imported the subject merchandise during the review period.
• Protecting Domestic Industry: The final antidumping duties will help shield U.S. manufacturers of steel nails from unfair competition from Malaysian producers engaged in dumping practices.
• Enforcement of Duties: The results of the review will instruct U.S. Customs and Border Protection (CBP) to apply the final duties to affected imports, ensuring compliance with U.S. trade laws.
These decisions underscore the importance of fair trade practices and the ongoing efforts of the U.S. government to support domestic industries through the enforcement of antidumping measures.
