The United States International Trade Commission (“USITC”), by a vote of 5 – 0, has determined that a U.S. industry is not materially injured or threatened with material injury by reason of imports of freight rail coupler (“FRC”) systems and components from China that the U.S. Department of Commerce (“Commerce”) determined were subsidized and sold in the United States at less than fair value. As a result of the Commission’s negative determinations, Commerce will not issue antidumping duty (“ADD”) and countervailing duty (“CVD”) orders on imports of these products from China.
GDLSK Trade Group attorneys Ned H. Marshak, Andrew T. Schutz and Michael H. Holton were the lead counsel for Respondents in this case, representing the largest importer of FRCs from China. This is the GDLSK Trade Group’s fourth no-injury win before the USITC since 2018.
This decision is noteworthy for several reasons. First, the combined ADD/CVD rate was a prohibitive 383.69 percent, due to the decision by Chinese vendors not to participate in Commerce’s investigation. Second, Chinese vendors also decided not to actively participate in the USITC investigation, leaving their U.S. customers to attempt to convince the USITC to reach a negative determination. Third, U.S. demand for freight couplers declined over the investigation period, and other traditional indicia of injury supported an affirmative determination.
Notwithstanding these obstacles, GDLSK argued successfully that Chinese imports did not contribute to any material injury experienced by the domestic industry and did not threaten the industry in the future.
GDLSK is proud of its record before the USITC. Since January 2018, the USITC has issued 14 negative determinations in ADD/CVD material injury cases, and GDLSK, has been counsel in four of these decisions. The Firm’s victories in Freight Rail Coupler Systems and Components from China, Fabricated Structural Steel from Canada, China, and Mexico, Polytetrafluoroethylene (PTFE) Resin from China and India and Tapered Roller Bearings from Korea have allowed our clients – who were facing prohibitive ADD/CVD rates – to continue to participate in the U.S. market.
Persons with questions regarding this matter, and GDLSK’s USITC practice, should contact Ned H. Marshak ([email protected]), Andrew T Schutz ([email protected]), or Michael H. Holton ([email protected]).