cargo ship containersOn June 19, 2018, the Coalition for Fair Rack Imports filed a petition for the imposition of antidumping and countervailing duties on imports of Steel Racks from the People’s Republic of China.

SCOPE OF THE INVESTIGATION

The merchandise covered by this investigation is steel racks and parts thereof, assembled or unassembled. Steel racks are racks made of steel of dimensions and configurations that can be adjusted as required, with or without locking tabs or slots, and with or without bolted, clamped, or welded connections, including any of the following: uprights, posts, columns, braces, frames, beams, arms, locking devices, and rails.

A steel rack is a structure typically made from cold-formed or hot-rolled steel structural members and includes, but is not limited to, components such as plates, rods, angles, shapes, sections, and tubes. Welding, bolting, and clipping are the typical methods of assembly. Connections may also be made with locking devices such as clips, end plates, and beam connectors. Steel racks may be made to ANSI MH16.1 or ANSI MH16.3 standards. All steel racks and parts thereof meeting the physical description set out herein are covered by the scope of this investigation, whether or not produced according to a particular standard.

The vertical components of steel racks may be referred to as uprights, posts, or columns, and may be connected with horizontal or diagonal braces to form upright frames. A typical storage configuration comprises upright frames perpendicular to the aisles that are independently adjustable, with positive-locking beams parallel to the aisle and spanning between the upright frames, and braces designed to support unit loads between the beams. A cantilever rack consists of uprights running parallel to the aisle and cantilever beams or arms connected to the uprights and running perpendicular to the aisle rather than spanning two upright frames.

The scope includes all steel racks and parts thereof meeting the description above, regardless of: (1) dimensions, weight, strength, gauge, or load rating; (2) vertical upright or frame type (including structural, roll-form, or other); (3) horizontal support or beam/brace type (including but not limited to structural, roll-form, slotted, unslotted, Z-beam, C-beam, L-beam, step beam, cantilever beam, and cargo rack); (4) number of supports; (5) number of levels; (6) surface coating, if any (including but not limited to paint, epoxy, powder coating, zinc, or other metallic coatings); (7) shape (including but not limited to rectangular, square, corner, and cantilever); (8) the method by which the vertical and horizontal supports connect (including but not limited to locking tabs or slots, bolting, clamping, and welding); and (9) the inclusion or not of moving components (including but not limited to rails, wheels, rollers, tracks, channels, carts, and conveyors).

Steel racks may be referred to as pallet racks, storage racks, stacker racks, retail racks, pick modules, selective racks, or cantilever racks. Steel racks that incorporate moving components may also be referred to as pallet-flow racks, carton-flow racks, push-back racks, movable-shelf racks, drive-in racks, and drive-through racks.

Subject merchandise includes material matching the above description that has been finished, assembled, or packaged in a third country, including by coating, painting, assembling, attaching to, or packaging with another product, or any other finishing, assembly, or packaging operation that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the steel racks and parts thereof.

Steel racks and parts thereof are also included in the scope of this investigation whether or not imported attached to, or in conjunction with, other parts and accessories such as wire decking, nuts, and bolts. If steel racks and parts thereof are imported attached to, or in conjunction with, such non-subject merchandise, only the steel racks and parts thereof are included in the scope.

Specifically excluded from the scope of this investigation are any products covered by Commerce’s existing antidumping and countervailing duty orders on boltless steel shelving units prepackaged for sale from the People’s Republic of China. See Boltless Steel Shelving Units Prepackaged for Sale From the People’s Republic of China: Antidumping Duty Order, 80 Fed. Reg. 63,741 (October 21, 2017); Boltless Steel Shelving Units Prepackaged for Sale From the People’s Republic of China: Amended Final Affirmative Countervailing Duty Determination and Countervailing Duty Order, 80 Fed. Reg. 63,745 (October 21, 2017).

Merchandise covered by this investigation is currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under the following subheadings: 7326.90.8688 and 9403.20.0080. Subject merchandise may also enter under subheadings 7308.90.3000, 7308.90.6000, 7308.90.9590, and 9403.20.0090. The HTSUS subheadings set forth above are provided for convenience and U.S. Customs purposes only. The written description of the scope is dispositive.

PETITIONERS

Coalition for Fair Rack Imports
Bulldog Rack Company
200 Fort Steuben Road
Weirton, WV 26062

Hannibal Industries, Inc.
3851 S. Santa Fe Avenue
Los Angeles, CA 90058

Husky Rack and Wire
6146 Denver Industrial Park Road
Denver, NC 28037

Ridg-U-Rak, Inc.
120 South Lake Street
North East, PA 16428-1232

SpaceRAK, a Division of Heartland Steel Products, Inc.
302 Carleton Street
Marysville, MI 48040

Speedrack Products Group, Ltd.
7903 Venture Avenue
Sparta, Michigan 49345

Steel King Industries, Inc.
2700 Chamber St.
Stevens Point, WI 54481

Tri-Boro Shelving & Partition Corp.
300 Dominion Drive
Farmville, VA 23901

UNARCO Material Handling, Inc.
701 E 16th Avenue
Springfield, TN 37172

COUNSEL FOR PETITIONERS

Roger B. Schagrin
Schagrin Associates
900 Seventh Street, N.W.
Suite 500
Washington, D.C. 20001

ALLEGED DUMPING MARGIN

China: 131.1%-145.7%

ALLEGED SUBSIDIES MARGIN

Countervailing Duty Petition issued against China. Amounts of additional duties unspecified.

NAMED PRODUCERS/EXPORTERS

For a list of foreign products/exporters alleged by Petitioner, please see Attachment I.

NAMED IMPORTERS

For a list of importers alleged by Petitioner, please see Attachment II.

IMPORTS OF SUBJECT MERCHANDISE

  2015 2016 2017 Q1 2017 Q1 2018
China      
Quantity (lbs) 677,711,685 706,692,996 815,597,209 181,353,196 218,540,557
Value (USD) 1,140,115,347 1,108,045,879 1,310,216,339 287,884,496 358,592,867

CONTACT US

For more information concerning this petition and how it may affect your business, please contact Jeffrey Neeley, Stephen Brophy, or Nithya Nagarajan.

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Photo of Jeffrey Neeley Jeffrey Neeley

Jeffrey has more than 25 years of experience representing private parties in international trade remedies disputes in the U.S. and in foreign jurisdictions. He guides clients in matters including antidumping investigations, countervailing duties, subsidies, intellectual property disputes as well as related customs, export control, and other import/export issues.

Photo of Stephen Brophy Stephen Brophy

Stephen brings more than 20 years of international trade experience to Husch Blackwell. His practice focuses on trade relief and regulation, representing clients in antidumping, countervailing duty and safeguard proceedings. He has assisted clients with these and other related matters before the U.S. Department of Commerce and U.S. International Trade Commission. Stephen is also experienced with customs issues, including tariff classification, valuation and country of origin marking matters.

Photo of Nithya Nagarajan Nithya Nagarajan

Nithya’s extensive background in U.S. trade issues spans 25 years and includes various roles in a number of federal government agencies, including the Department of Commerce Department of Justice, and the U.S. Court of International Trade. She assists clients with administrative and regulatory actions before the Department of Commerce, International Trade Commission and U.S. Customs and Border Protection (CBP) and defends clients in appeals before the Court of International Trade, Court of Appeals for the Federal Circuit, NAFTA panels and the World Trade Organization. In addition to her body of U.S. experience, Nithya is also well-versed in international trade issues in China and India.