The U.S. Commerce Department on Monday announced its preliminary affirmative determination in the countervailing duty (CVD) investigation against imports of certain biaxial integral geogrid products from China, signaling that it may impose punitive duties on the products.
The department said that producers and exporters of such products from China had received countervailing subsidies from 16.6 percent to 128.27 percent.
As a result of the preliminary affirmative determinations, the department will instruct U.S. Customs and Border Protection to require cash deposits based on these preliminary rates.
The Commerce Department launched antidumping duty and CVD investigations against imports of such products from China in January 2016, in response to a request from Tensar Corporation. The department is scheduled to make its final determinations in October this year, unless the statutory deadline is extended.
Punitive duties would be imposed after both the Commerce Department and the U.S. International Trade Commission (USITC) make affirmative final rulings. The USITC is scheduled to make its final determination in December 2016.
Biaxial integral geogrid products are used in the construction of paved and unpaved roads, as well as in other construction projects, such as for reinforcing foundations or working platforms that are built on top of unstable soils.
Imports of these products from China were estimated at about 1.5 billion U.S. dollars in 2014, according to official U.S. data.
The Chinese Ministry of Commerce has repeatedly urged the United States to abide by its commitment against protectionism and work together with China and other members of the international community to maintain a free, open and just international trade environment.