Steel Products from China: Circumvention Inquiry Initiation
Summary
The International Trade Administration (ITA) has initiated a circumvention inquiry into certain corrosion-resistant steel products from the People's Republic of China. This inquiry will determine if these products are circumventing existing antidumping and countervailing duty orders.
What changed
The International Trade Administration (ITA) has initiated a circumvention inquiry concerning certain corrosion-resistant steel products originating from the People's Republic of China. This action, identified by agency docket numbers A-570-026 and C-570-027, aims to investigate potential circumvention of existing antidumping and countervailing duty orders on these goods. The inquiry will assess whether these steel products are being imported in a manner designed to evade the established trade remedies.
This initiation means that importers and exporters dealing with these specific steel products must be prepared for potential findings that could lead to the application of antidumping and countervailing duties. While no specific compliance deadline is mentioned in this notice, affected parties should monitor the progress of the inquiry closely. Non-compliance with potential future duty assessments could result in significant financial penalties and trade restrictions.
What to do next
- Monitor the progress of the circumvention inquiry (Docket Nos. A-570-026, C-570-027).
- Review import documentation for relevant steel products from China.
- Consult with trade counsel regarding potential implications of the inquiry.
Source document (simplified)
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Notice
Certain Corrosion-Resistant Steel Products From the People's Republic of China: Initiation of Circumvention Inquiry on the Antidumping and Countervailing Duty Orders
A Notice by the International Trade Administration on 03/25/2026
- 1.
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Document Details Published Content - Document Details Agencies Department of Commerce International Trade Administration Agency/Docket Number A-570-026, C-570-027 Document Citation 91 FR 14533 Document Number 2026-05807 Document Type Notice Pages 14533-14535
(3 pages) Publication Date 03/25/2026 Published Content - Document DetailsPDF Official Content
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Document Details Published Content - Document Details Agencies Department of Commerce International Trade Administration Agency/Docket Number A-570-026, C-570-027 Document Citation 91 FR 14533 Document Number 2026-05807 Document Type Notice Pages 14533-14535
(3 pages) Publication Date 03/25/2026 Published Content - Document DetailsDocument Dates Published Content - Document Dates Dates Text Applicable March 25, 2026. Published Content - Document Dates
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has no substantive legal effect.- AGENCY:
- SUMMARY:
- DATES:
- FOR FURTHER INFORMATION CONTACT:
- SUPPLEMENTARY INFORMATION:
- Background
- Scope of the Orders
- Merchandise Subject to the Circumvention Inquiry
- Initiation of Circumvention Inquiry
- Analysis
- Respondent Selection
- Suspension of Liquidation
- Notification to Interested Parties
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Department of Commerce
International Trade Administration
- [A-570-026, C-570-027]
AGENCY:
Enforcement and Compliance, International Trade Administration, Department of Commerce.
SUMMARY:
In response to a request from Steel Dynamics Inc. and Nucor Corporation (collectively, the requesters), the U.S. Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether imports of certain corrosion-resistant steel products (CORE) completed in Indonesia using hot-rolled steel (HRS) and cold-rolled steel (CRS) manufactured in the People's Republic of China (China), are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on CORE from China.
DATES:
Applicable March 25, 2026.
FOR FURTHER INFORMATION CONTACT:
Justin Enck at (202) 482-1614 or Shawn Gregor at (202) 482-3226, Office of Policy, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
On February 2, 2026, pursuant to section 781(b) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.226(i), the requesters filed a circumvention inquiry request alleging that CORE completed in Indonesia using HRS and CRS manufactured in China are circumventing the AD and CVD orders on CORE from China, [1 ] and, accordingly, should be included within the scope of the Orders. [2 ]
On February 13 and 25, 2026, we issued supplemental questionnaires to the requesters. [3 ] On February 19 and 27, 2026, the requesters filed their responses to our requests for additional information. [4 ]
Scope of the Orders
The products covered by these Orders are certain flat-rolled steel products, either clad, plated, or coated with corrosion-resistant metals such as zinc, aluminum, or zinc-, aluminum-, nickel- or iron-based alloys, whether or not corrugated or painted, varnished, laminated, or coated with plastics or other non-metallic substances in addition to the metallic coating. For a full description of the scope of the Orders, see the Circumvention Initiation Checklist. [5 ]
Merchandise Subject to the Circumvention Inquiry
The circumvention inquiry covers CORE completed in Indonesia using Chinese-origin HRS or CRS that is subsequently exported from Indonesia and imported into the United States.
Initiation of Circumvention Inquiry
Section 351.226(d) of Commerce's regulations states that if Commerce determines that a request for a circumvention inquiry satisfies the requirements of 19 CFR 351.226(c), then Commerce “will accept the request and initiate a circumvention inquiry.” Section 351.226(c)(1) of Commerce's regulations, in turn, requires that each circumvention inquiry request allege “that the elements necessary for a circumvention determination under section 781 of the Act exist” and be “accompanied by information reasonably available to the interested party supporting these allegations.” The requesters alleged circumvention pursuant to section 781(b) of the Act (merchandise completed or assembled in other foreign countries).
Section 781(b)(1) of the Act provides that Commerce may find circumvention of an order when merchandise of the same class or kind subject to the order is completed or assembled in a foreign country other than the country to which the order applies. In conducting a circumvention inquiry, under section 781(b)(1) of the Act, Commerce relies on the following criteria: (A) merchandise imported into the United States is of the same class or kind as any merchandise produced in a foreign country that is the subject of an AD or CVD order; (B) before importation into the United States, such imported merchandise is completed or assembled in another foreign country from merchandise which is subject to the order or is ( printed page 14534) produced in the foreign country that is subject to the order; (C) the process of assembly or completion in the foreign country referred to in section (B) is minor or insignificant; (D) the value of the merchandise produced in the foreign country to which the AD or CVD order applies is a significant portion of the total value of the merchandise exported to the United States; and (E) the administering authority determines that action is appropriate to prevent evasion of such order.
In determining whether the process of assembly or completion in a foreign country is minor or insignificant under section 781(b)(1)(C) of the Act, section 781(b)(2) of the Act directs Commerce to consider: (A) the level of investment in the foreign country; (B) the level of research and development in the foreign country; (C) the nature of the production process in the foreign country; (D) the extent of production facilities in the foreign country; and (E) whether or not the value of processing performed in the foreign country represents a small proportion of the value of the merchandise imported into the United States. However, no single factor, by itself, controls Commerce's determination of whether the process of assembly or completion in a foreign country is minor or insignificant. [6 ] Accordingly, Commerce will evaluate each of these five factors as they exist in the foreign country, depending on the particular circumvention scenario.
In addition, section 781(b)(3) of the Act sets forth additional factors to consider in determining whether it is appropriate under section 781(b)(1) of the Act to include merchandise assembled or completed in a foreign country within the scope of an AD or CVD order. Specifically, Commerce shall take into account such factors as: (A) the pattern of trade, including sourcing patterns; (B) whether the manufacturer or exporter of the merchandise that was shipped to the foreign country is affiliated with the person who, in the foreign country, uses the merchandise to complete or assemble the merchandise which is subsequently imported into the United States; and (C) whether imports of the merchandise into the foreign country have increased after the initiation of the investigation that resulted in the issuance of such order.
Analysis
Based on our analysis of the requesters' circumvention inquiry request, we determine that they have satisfied the criteria under 19 CFR 351.226(c), and thus, pursuant to 19 CFR 351.226(d)(1)(iii), we are initiating the requested circumvention inquiry. For a full discussion of the basis for our decision to initiate the circumvention inquiry, see the Circumvention Initiation Checklist. As explained in the Circumvention Initiation Checklist, the information provided by the requesters warrants initiating the circumvention inquiry on a country-wide basis. Commerce has taken this approach in prior circumvention inquiries, where the facts warranted initiation on a country-wide basis. [7 ]
Consistent with the approach in the prior circumvention inquiries that were initiated on a country-wide basis, Commerce intends to solicit information from certain companies in Indonesia concerning their production of CORE and their shipments thereof to the United States.
Respondent Selection
Commerce intends to base respondent selection on U.S. Customs and Border Protection (CBP) data. Commerce intends to place the CBP data on each record within five days of the publication of this initiation notice, which will be available on Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https://access.trade.gov. Comments regarding the CBP data and respondent selection should be submitted within seven days after placement of the CBP data on the record of the relevant inquiry.
Commerce intends to establish a schedule for questionnaire responses after respondent selection. A company's failure to completely respond to Commerce's requests for information may result in the application of facts available, pursuant to section 776(a) of the Act, which may include adverse inferences, pursuant to section 776(b) of the Act.
Suspension of Liquidation
Pursuant to 19 CFR 351.226(l)(1), Commerce will notify CBP of this initiation and direct CBP to continue the suspension of liquidation of entries of products subject to the circumvention inquiry that were already subject to the suspension of liquidation under the Orders and to apply the cash deposit rates that would be applicable if the products were determined to be covered by the scope of the Orders.
Should Commerce issue affirmative preliminary or final circumvention determinations, Commerce will follow the suspension of liquidation rules under 19 CFR 351.226(l)(2)-(4). In the event that Commerce issues affirmative preliminary or final circumvention determinations that the products are circumventing the Orders, Commerce will instruct CBP to continue the suspension of liquidation of previously suspended entries and to apply the applicable cash deposit rate. Commerce will also instruct CBP to begin the suspension of liquidation and application of cash deposits for any unliquidated entries not yet suspended, entered, or withdrawn from warehouse, for consumption, on or after the date of publication of the notice of initiation of the circumvention inquiry pursuant to paragraphs (l)(2)(ii) and (l)(3)(ii). In addition, pursuant to paragraphs (l)(2)(iii)(A) and (l)(3)(iii)(A), Commerce may instruct CBP to begin the suspension of liquidation and application of cash deposits for any unliquidated entries not yet suspended, entered, or withdrawn from warehouse, for consumption, prior to the date of initiation of the circumvention inquiry, but not for such entries prior to November 4, 2021, the effective date of these provisions in the Final Rule. [8 ] These rules will not affect CBP's authority to take any additional action with respect to the suspension of liquidation or related measures for these entries, as stated in 19 CFR 351.226(l)(5).
Notification to Interested Parties
In accordance with 19 CFR 351.226(d) and section 781(b) of the Act, Commerce determines that the requesters' request for this circumvention inquiry satisfies the requirements of 19 CFR 351.226(c). Accordingly, Commerce is notifying all interested parties of the initiation of this circumvention inquiry to determine whether imports of CORE completed in Indonesia using HRS or CRS manufactured in China, exported from Indonesia and imported into the United States, are circumventing the Orders. In addition, we have included a description of the products that are subject to this inquiry, and an explanation of Commerce's decision to initiate this inquiry as provided in the accompanying Circumvention Initiation Checklist. [9 ]
( printed page 14535) In accordance with 19 CFR 351.226(e)(1), unless this circumvention inquiry is rescinded, in whole or in part, or extended, Commerce intends to issue its preliminary circumvention determination no later than 150 days from the date of publication of this notice of initiation of this circumvention inquiry in the Federal Register. Furthermore, in accordance with section 781(f) of the Act and 19 CFR 351.226(e)(2), unless this circumvention inquiry is rescinded, in whole or in part, or extended, Commerce intends to issue its final determination within 300 days from the date of publication of this notice of initiation of this circumvention inquiry in the Federal Register.
This notice is published in accordance with section 781(b) of the Act, and 19 CFR 351.226(d)(1)(iii).
Dated: March 19, 2026.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.
Footnotes
- See Certain Corrosion-Resistant Steel Products from India, Italy, the People's Republic of China, the Republic of Korea and Taiwan: Amended Final Affirmative Antidumping Determination for India and Taiwan, and Antidumping Duty Orders, 81 FR 48390 (July 25, 2016); see also Certain Corrosion-Resistant Steel Products from India, Italy, Republic of Korea and the People's Republic of China: Countervailing Duty Order, 81 FR 48387 (July 25, 2016) (collectively, Orders).
See
Requesters' Letter, “Request for Circumvention Inquiry (Indonesia),” dated January 30, 2026 (Circumvention Request). The request was filed after 5:00 p.m. EST on Friday, January 30, 2026, and therefore, is considered to be filed on the next business day, Monday. February 2, 2026.
See
Commerce's Letters, “Indonesia Circumvention Inquiry Request Supplemental Questionnaire,” dated February 13, 2026, and “Indonesia Circumvention Inquiry Request Second Supplemental Questionnaire,” dated February 25, 2026.
See
Requesters' Letters, “Response to Indonesia Circumvention Inquiry Request Supplemental Questionnaire,” dated February 19, 2026, and “Response to Indonesia Circumvention Inquiry Request Second Supplemental Questionnaire,” dated February 27, 2026.
See
Checklist, “Certain Corrosion-Resistant Steel Products from the People's Republic of China,” dated concurrently with, and hereby adopted by, this notice (Circumvention Initiation Checklist), at Attachment I.
See
Statement of Administrative Action Accompanying the Uruguay Round Agreements Act, H.R. Doc. 103-316, Vol. 1 (1994), at 893.
Back to Citation 7. See, e.g., Hydrofluorocarbon Blends from the People's Republic of China: Initiation of Circumvention Inquiry on the Antidumping Duty Order, 88 FR 74150 (October 30, 2023).
Back to Citation 8. See Regulations to Improve Administration and Enforcement of Antidumping and Countervailing Duty Laws, 86 FR 52300, 52345 (September 20, 2021) (Final Rule).
See
Circumvention Initiation Checklist.
Back to Citation [FR Doc. 2026-05807 Filed 3-24-26; 8:45 am]
BILLING CODE 3510-DS-P
Published Document: 2026-05807 (91 FR 14533)
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