On December 18, 2012, the Department of Commerce (Commerce) announced its affirmative final determinations in the antidumping duty and countervailing duty investigations of imports of steel wire garment hangers from Vietnam.
The AD and CVD laws provide US businesses, workers, and farmers with a transparent and internationally approved mechanism to seek relief from the market distorting effects caused by injurious dumping and subsidization of imports into the United States, and thus to have an opportunity to compete on a level playing field.
For the purpose of AD investigations, dumping occurs when a foreign company sells a product in the United States at less than its fair value. For the purpose of CVD investigations, countervailable subsidies are financial assistance from foreign governments that benefit the production of goods from foreign companies and are limited to specific enterprises or industries, or are contingent either upon export performance or upon the use of domestic goods over imported goods.
Commerce determined that producers/exporters from Vietnam have sold steel wire garment hangers in the United States at dumping margins of 157.00 percent to 220.68 percent.
Commerce also determined that producers/exporters from Vietnam have received countervailable subsidies of 31.58 percent to 90.42 percent.
In the AD investigation, Commerce finds that mandatory respondent the TJ Group is denied a separate rate because it withdrew its participation from the investigation and, as such, is now considered part of the Vietnam-Wide Entity. Commerce continues to deny mandatory respondent South East Asia Hamico Export Joint Stock Corporation ("Hamico") a separate rate because it failed to provide complete responses to Commerce's questionnaires. As such, Hamico is still considered part of the Vietnam Wide Entity. For the final determination, the Vietnam Wide Entity has received an adverse facts available rate of 220.68% which is the highest petition rate. Three other exporters qualified for a separate rate of 157.00% a simple average of all the petition rates.
In the CVD investigation, mandatory respondents South East Asia Hamico Export Joint Stock Company (SEA Hamico), Nam A Hamico Export Joint Stock Company (Nam A), and Linh Sa Hamico Company Limited (Linh Sa) (collectively, the Hamico Companies) and Infinite Industrial Hanger Limited (Infinite) and Supreme Hanger Company Limited (Supreme) (collectively the Infinite Companies) were determined to have final subsidy rates of 31.58% and 90.42% respectively. All other producers/exporters from Vietnam received a final subsidy rate of 31.58%
Commerce found that critical circumstances exist in both the AD and CVD investigations. Specifically, for the CVD investigation, the Department found that critical circumstances exist for Infinite Companies and the all others rate companies and that critical circumstances do not exist for the Hamico Companies. As a result, provisional duty deposits, normally collected as of the date of publication of Commerce's preliminary determinations, will be collected 90 days prior to that date. For the AD investigation, the Department found that critical circumstances exist for the Vietnam-Wide Entity, which now includes both Hamico and the TJ Group, as well as the three non-individually examined companies receiving a separate rate. In order for this early duty deposit collection to be maintained, the US International Trade Commission must also reach an affirmative finding regarding critical circumstances.
In the CVD investigation, Commerce concluded that all producers and exporters benefited from an export subsidy. Commerce, in accordance with the statute, is required to adjust AD rates to account for such export subsidies. In keeping with Commerce's practice in investigations, Commerce will require cash deposits in the AD proceeding equal to the calculated dumping margins reduced by 6.17%, the export subsidy rate.
As a result of the final AD determination, Commerce will instruct US Customs and Border Protection to collect cash deposits equal to the applicable weighted-average dumping margins. As a result of the affirmative final CVD determination, Commerce will order the resumption of the suspension of liquidation and require a cash deposit equal to the final net subsidy rates if the US International Trade Commission issues a final affirmative injury determination.
The petitioners for this investigation are M&B Metal Products Company, Inc. (Leeds, AL), Innovative Fabrication LLC/ Indy Hanger (Indianapolis, IN), and US Hanger Company, LLC (Gardena, CA).
The merchandise subject to these investigations are steel wire garment hangers, fabricated from carbon steel wire, whether or not galvanized or painted, whether or not coated with latex or epoxy or similar gripping materials, and/or whether or not fashioned with paper covers or capes (with or without printing) and/or nonslip features such as saddles or tubes. These products may also be referred to by a commercial designation, such as shirt, suit, strut, caped, or latex (industrial) hangers.
