The U.S. Department of Commerce has released preliminary findings from its review of countervailable subsidies provided to producers and exporters of stainless steel flanges from India. This review, covering the period from January 1, 2022, to December 31, 2022, aims to assess whether these Indian companies benefited from unfair financial contributions that could harm U.S. industries by distorting market competition.
The administrative review was initiated on December 6, 2023, following the countervailing duty order published on October 5, 2018. The review process was extended by 120 days on May 30, 2024, to ensure a comprehensive analysis of the data. Further adjustments to the timeline occurred on July 22, 2024, when certain deadlines were tolled by seven days, setting the new deadline for preliminary results to November 6, 2024.
The scope of the order includes stainless steel flanges from India, essential components in various industrial applications due to their durability and resistance to corrosion. The methodology employed by Commerce follows section 751(a)(1)(A) of the Tariff Act of 1930, focusing on identifying financial contributions that confer specific benefits to the recipients, thereby qualifying as countervailable subsidies. The detailed methodology and findings are documented in the Preliminary Decision Memorandum, accessible through Commerce's electronic service system, ACCESS.
In this review, Commerce preliminarily determined that Pradeep Metals Limited received a net countervailable subsidy rate of 1.75%. This finding suggests that the company benefited from government programs that provided financial advantages, potentially affecting the pricing and competitiveness of their products in the U.S. market. The review process also involved the partial rescission concerning five companies: BFN Forgings Private Limited, Chandan Steel Limited, Fivebros Forgings Private Limited, Hilton Metal Forging Limited, and Kisaan Die Tech Pvt Ltd. These companies withdrew their requests for review within the stipulated 90-day period following the notice of initiation, leading to Commerce's decision to rescind the review for these entities.
Stakeholders and interested parties are encouraged to review the Preliminary Decision Memorandum for a comprehensive understanding of the review's methodology and conclusions. The document is publicly accessible and provides transparency into the decision-making process, allowing for informed public comment and engagement. This review is a crucial part of the ongoing efforts by the U.S. government to monitor and regulate international trade practices, ensuring that imports do not disrupt domestic markets through unfair pricing strategies.
