Korean Wires Bypass China Duties, Triggering U.S. Penalties
Published Date: 1/27/2025
Notice
Summary
The U.S. Department of Commerce says aluminum wire and cable made in Korea using parts from China aren’t covered by China’s import taxes but are still sneaking around the rules. This means some Korean imports are avoiding extra duties meant for Chinese products. Starting January 27, 2025, companies involved should watch for changes that could affect costs and trade practices.
Analyzed Economic Effects
4 provisions identified: 0 benefits, 3 costs, 1 mixed.
Korea AWC ruled circumvention
Commerce found that aluminum wire and cable (AWC) finished in the Republic of Korea using Chinese-origin AWC inputs are circumventing the U.S. antidumping and countervailing duty orders and therefore will be treated as covered by those orders. CBP will suspend liquidation and require cash deposits for unliquidated entries entered or withdrawn for consumption on or after October 19, 2023, and this determination is effective January 27, 2025.
Large duty cash-deposit rates
For suspended U.S. entries of the inquiry merchandise, Commerce will require an antidumping (AD) cash deposit at the China-wide rate of 52.79% and a countervailing duty (CVD) cash deposit at the all-others rate of 33.44%. Commerce has assigned third-country ACE case numbers A-580-095-000/C-580-096-000 for these Korea entries and these cash-deposit instructions remain in effect until further notice.
Five Korean firms blocked from certifying
Commerce applied adverse facts available (AFA) and determined that Daewon Cable, Gaon Cable, LS Cable & System, Taehwa Co., Ltd., and TMC Co., Ltd. are ineligible to certify that their Korea-origin AWC was produced without Chinese-origin inputs. For entries produced or exported by these five companies, Commerce will instruct CBP to suspend liquidation and require cash deposits at the AD China-wide rate (52.79%) and the CVD all-others rate (33.44%) until further notice.
Certification and recordkeeping obligations
Importers must complete an importer certification by the time the entry summary is filed, and exporters must complete an exporter certification by time of shipment stating the AWC does not contain Chinese-origin wire rod, strand, or wire. Importers and exporters must keep supporting documentation until the later of five years after the latest entry date or three years after the conclusion of related U.S. litigation; certified entries will not be suspended, but failure to certify or to provide required documentation may lead to suspension of liquidation and posting of the AD and CVD cash deposits.
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