Chinese steel corporation will not have to pay countervailing duty in the US

The US Department of Commerce (DOC) ruling favored China Steel Group, the largest steel producer in Taiwan, with regard to electrical steel imports. In a statement released by DOC, the government assigned a marginal subsidy rate of less than 1 percent to the China Steel group and its subsidiaries. Therefore, China Steel Corporation will not have to pay a countervailing duty as a result of an investigation into imports from Taiwan.

“Our poor cold rolled alloy steel flat products, which are used in the machine tool industry and power generator manufacturing, are not sanctioned,” says a spokesman for China Steel Group. However, other Taiwanese exporters faced a 6.41 percent tariff in a preliminary ruling.

DOC did not specify which Taiwanese firms were included in the list of the financial execution.
The US government agency plans to issue a final decision on the investigation in July 2014. DOC launched an investigation against subsidies to exporters from Taiwan, China and South Korea in November 2013 after AK Steel Corp., a steel supplier based in Ohio, filed a complaint with the Department.

AK Steel accused foreign exporters of using government subsidies to sell their products on the US market at unfairly low prices. In Taiwan, AK Steel said government agencies such as the Ministry of Economy were involved in providing improper subsidies to exporters. For the first time in 27 years, Taiwan's steelmakers have been the subject of an investigation by the US government over alleged government subsidies.