Commerce Keeps Chinese Graphite Electrodes Duties Intact

　　Law360, New York(June 23, 2014, 5:51 PM ET) -- The U.S. Department of Commerce on Mondayordered the continuation of an anti-dumping duty order on small diametergraphite electrodes from China, finding that removing the duties would harmU.S. producers.

　　Followingdeterminations by both the department itself and the U.S. International TradeCommission that the dumping would continue in the absence of duties and wouldcause material injury to domestic producers, Commerce published its intentionto continue the order for five years.

　　The decisionfollows the department’s January kickoff of the first “sunset review” of thegraphite anti-dumping duty order, which was followed by the ITC’s own final determinationin May in favor of maintaining the duty.

　　The duties werefirst instituted in 2009, following investigations into graphite electrodesfrom China. The probes were initiated after domestic producers SGL Carbon LLCand Superior Graphite Co. lodged a petition claiming that China was subsidizingthe cost of the electrodes in order to gain market share in the U.S.

　　Graphiteelectrodes are used in electric arc furnaces to melt scrap metal. Imports ofgraphite electrodes from China are currently subject to a 159.64 percent dutymargin, with certain producers subject to a 21.16 percent margin, according toCommerce.

　　In a brief filedwith the ITC in early May, domestic producers SGL Carbon, Superior Graphite andGrafTech International Ltd. encouraged the commission to keep the duties,saying they were “critical” to the protection of the U.S. graphite electrodeindustry.

　　The domesticcompanies said at the time that the Chinese graphite electrode industry, thelargest producer and exporter of the product in the world, has massive excesscapacity to flood the domestic market in a way that will “quickly and easilyoverwhelm” it without the duties.

　　According to theAmerican companies, after the duties on graphite electrodes from China wereimposed, imports of the product “plummeted” from 13,784 metric tons in 2007 to2,352 metric tons in 2013.

　　The numbers pointto the significant restraining effect the anti-dumping duties have on unfairlypriced imports of the Chinese products, the companies said.

　　The foreignproducers named in the review did not submit substantive responses, accordingto Commerce.

　　Sunset reviews ofduties are conducted as a result of the Uruguay Round Agreements Act, whichrequires Commerce to revoke or suspend duty orders after five years, unlesstheir termination would lead to dumping or subsidies that could harm U.S.industry.

　　The sunset reviewof the anti-dumping duty order on graphite electrodes from China was institutedin January, with the ITC voting to expedite the review on April 7.

　　U.S. Customs andBorder Protection will continue to collect cash deposits at the rates in effectat the time of entry for all imports of the graphite products, according toCommerce.

　　Last year, thecompanies brought a case against Commerce in the U.S. Court of InternationalTrade over the department's initial determinations that the dumping had ceased.They secured an injunction preventing the U.S. government from liquidating theimports until the case ran its course.