USITC: Domestic Suppliers ‘Materially Injured’ by China

Written by William C. Vantuono, Editor-in-Chief
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McConway & Torley illustration

On the day that U.S. Treasury Secretary Janet Yellen began talks with the Chinese government over what the Biden Administration claims are “punitive actions” against U.S. firms, the United States International Trade Commission (USITC) issued a determination that the U.S. rail supply industry has been “materially injured by reason of imports of certain freight rail couplers and parts thereof (FRCs) from China.”

USITC said the U.S. Department of Commerce (USDOC) has found that Chinese FRCs have “been sold in the United States at less than fair value (LTVF) and subsidized by the government of China.” USITC based its determination on subheadings 8607.30.10 and 7326.90.86 of the Harmonized Tariff Schedule of the United States, Tariff Act of 1930 (Act).

“The Commission instituted these investigations effective Sept. 28, 2022, following receipt of petitions filed with the Commission and Commerce by the Coalition of Freight Coupler Producers, consisting of McConway & Torley LLC and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL‐CIO, CLC,” USITC said. “The final phase of the investigations was scheduled by the Commission following notification of preliminary determinations by USDOC that imports of FRCs from China were subsidized within the meaning of section 703(b) of the Act (19 U.S.C. 1671b(b)) and sold at LTFV within the meaning of 733(b) of the Act (19 U.S.C. 1673b(b)).”

USITC conducted a hearing on May 18, 2023 in which “all persons who requested the opportunity were permitted to participate.” The agency subsequently completed and filed its determination on July 3, 2023. USITC’s views are contained in USITC Publication 5438 (July 2023), Certain Freight Rail Couplers and Parts Thereof from China: Investigation Nos. 701–TA–682 and 731–TA–1592 (Final). This report, classified as an “Import Injury,” had not been posted on the USITC website Publications Library page as of July 7.

Further Reading (Commentary by Contributing Editor Bob Cantwell):

North American Rail Supply and the Global Supply Risk: Why We Should Be Concerned

USITC-Imposed Chinese Coupler Tariffs a Good Decision

Steel Castings, Then and Now

North American Rail Supply and China: Why We Should Be Concerned

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