Buchanan Secures Preliminary Win in Trade Remedy Case on Critical Minerals
WASHINGTON (August 2024) - In a preliminary victory for the U.S. industry, the U.S. International Trade Commission (Commission) found on Friday, August 23, that there is a reasonable indication that the establishment of a domestic industry has been materially retarded as a result of imports from China.
The Commission's unanimous affirmative vote comes in response to petitions filed July 10, 2024, by Tungsten Parts Wyoming, Inc. (TPW). The petitions allege that unfairly dumped and subsidized tungsten shot imports are preventing the establishment of the domestic industry making tungsten shot, an important critical mineral.
"This is an important decision for several reasons. First, the materially retardation provision of the statute is seldom used but there is a lot of interest in this part of the trade remedy law, especially for industries that have not been able to get fully established due to unfairly priced imports," said Daniel B. Pickard, lead counsel to the petitioner and Buchanan's International Trade and National Security Practice Group leader. "This vote shows that the U.S. government supports a level playing field for critical mineral companies, which are vital to the U.S. economy and national security.”
On August 7, 2024, the U.S. Department of Commerce announced the initiation of antidumping (AD) investigations into imports of certain tungsten shot from China. The dumping margin for imports are alleged to be as high as 160%. On the same day, the Department of Commerce also initiated a countervailing duty (CVD) investigation into subsidized imports of certain tungsten shot from China.
The Commission's affirmative preliminary injury determination paves the way for the Department of Commerce to move forward with its investigations. Commerce is expected to issue its preliminary CVD determination in October 2024 and its preliminary AD determinations in December 2024. If Commerce reaches affirmative preliminary determinations in these cases, U.S. Customs and Border Protection will begin collecting provisional AD and CVD duties based on the preliminary margins calculated.
The Commission's final phase investigation will likely occur in the second quarter of 2025. If both the Commission and Commerce reach affirmative final determinations, both AD and CVD orders on imports of certain tungsten shot from China will be issued, imposing duties on the unfairly traded imports for a minimum of five years.
The Buchanan team representing the petitioner also includes Milton Koch, Caroline Bisk, Claire Webster, Grace Welborn, and Amanda Wetzel. U.S. AD/CVD tariff laws are one of the only available tools to establish an even playing field for American companies and avoid lost sales and profits. The Buchanan team of international trade and national security attorneys, has decades of experience supporting clients across a range of industries – ranging from steel, chemical, rubber, mining, and agricultural products – to ensure that the U.S. market is operating under fair and equal conditions.