The U.S. Court of International Trade (USCIT) put the brakes on the Particular Market Situation (PMS), which is a method the U.S. Department of Commerce has used in imposing high tariffs on South Korean steel. South Korean steel companies are anticipating that the court’s recent decision will help them avoid massive tariffs.
The USCIT recently made public its judgment regarding oil country tubular goods (OCTG) manufactured by Nexteel, Hyundai Steel, Husteel, AJU Besteel, SeAH Steel and Iljin. These companies previously filed a suit against the U.S. government, claiming that the department’s annual review determination is wrong.
The USCIT told the department to cancel its PMS determination and recalculate its anti-dumping duty rates. The tariff rates applied to the companies are likely to be lowered once the department does so.
According to South Korean steelmakers, the court’s decision is expected to block the department from abusing the PMS, although what the USCIT called into question this time is not the PMS itself but how to apply it.
Earlier, in October 2016, the department made a preliminary annual review determination on the OCTG and imposed anti-dumping duties of 8.04 percent, 3.80 percent and 5.92 percent on Nexteel, SeAH Steel and the others, respectively. In the final determination in April 2017, the rates were adjusted to 24.92 percent, 2.76 percent and 13.84 percent.