US Court on POSCO’s Side
The U.S. Court of International Trade (CIT) has ruled that the current tariff on POSCO’s hot-rolled steel sheets is unreasonable. Until recently, the U.S. Department of Commerce imposed excessive tariffs on South Korean steel for using POSCO products.
According to industry sources on September 12, the CIT ruled that the tariff rate applied to the steel sheets should be recalculated. In 2016, the department imposed a tariff of close to 60% on the product based on the Adverse Facts Available (AFA), claiming that POSCO did not fully cooperate during its investigation.
The court acknowledged the necessity of the AFA yet told the department not to maximize its tariff rate without reasonable grounds. Earlier, the court made a similar ruling with regard to cold-rolled steel sheets of Hyundai Steel, causing a reduced tariff rate. The tariff rate applied to POSCO’s product is likely to be lowered, too.
In addition, the ruling is expected to have an impact on many other products subject to tariffs for use of the hot-rolled steel sheets. In imposing the tariff, the department claimed that POSCO’s hot rolls were contaminated and, as such, steel pipe products that used the hot rolls had problems.
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