On October 15, 2024, the U.S. Department of Commerce published a significant notice regarding the antidumping duty order and countervailing duty order on alloy and certain carbon steel threaded rods imported from the People's Republic of China. This announcement was prompted by a request from Logistical Resource Development, a key importer of these products, to initiate changed circumstances reviews. The department is preliminarily proposing to revoke these orders, in part, specifically concerning certain wheel studs that LRD identified.
The original orders were implemented on April 9, 2020, as a measure to protect U.S. producers from unfairly priced imports. LRD's request for a CCR was based on section 751(b)(1)(A) of the Tariff Act of 1930, indicating a change in circumstances that justified a review of the existing duties. LRD asserted its status as an interested party and sought a partial revocation of the orders, citing changes in market dynamics that made the duties unnecessary for specific products.
In a supportive move, Vulcan Threaded Rod Products, the petitioner in this case, expressed no opposition to LRD's request for revocation. This lack of opposition from the domestic industry is crucial, as the law stipulates that for a revocation to occur, producers accounting for "substantially all" of the U.S. production must indicate their lack of interest in maintaining the duties. According to Commerce’s interpretation, this generally means at least 85% of domestic production.
Following LRD's submission, the Department of Commerce conducted a thorough review, collecting additional information from LRD and other domestic producers such as All Ohio Threaded Rod, Highland Thread, Inc., and Bay Standard Manufacturing Inc. These companies indicated they were not contesting LRD's proposal, further supporting the case for a CCR. The findings suggested that the majority of domestic producers no longer have a vested interest in the duties related to the specific wheel studs in question.
The preliminary results of the CCR indicate a reasonable basis to believe that changed circumstances exist, justifying the partial revocation of the orders. This proposed revocation would apply to specific wheel studs with detailed specifications, which have been highlighted in the notice. The focus on particular products reflects the Department’s strategy to adapt to evolving market conditions and to ensure that trade policies remain relevant and effective.
In addition to the proposed partial revocation, the Department also indicated its intent to rescind a scope inquiry related to the same wheel studs, simplifying the regulatory framework around these products. The implications of this decision are significant for both U.S. importers and domestic producers, as it could lead to a more competitive pricing environment in the market for threaded rods and related products.
Public comments on these preliminary results are invited, with interested parties given a timeframe to submit case briefs and rebuttals.
