The Department of Commerce has determined that forged steel fittings imported from Taiwan may have been sold at less than fair value in the U.S. market. There were three respondents outlined in case, being accused of importing or producing the forged steel articles from Taiwan. One respondent Kopex Industrial Co. responded with all required original documents, full participation with verification procedures, and relevant accounting records. The verification excludes Kopex of any duties applied. The other two respondents Both Well Steel Fittings Co. Ltd. and Luchu Shin Yee Works Co. Ltd. did not fulfill requirements to participate in the investigation by not providing information to verify the company did not produce or sell the incited articles from Taiwan.
For now all entries of forged steel fittings from Taiwan will require cash deposit.
Liquidation of any entries of the specified goods will receive suspension as U.S. Customs and Border Protection is directed from the Department of Commerce. Further, The Department of Commerce will alert the International Trade Commission so they may conduct their investigation as to if an industry in the United States was harmed by the intention to or import of sales. If no harm is found, cash deposits will be refunded and the determination issued today will be terminated. If injury is found to exist, then Commerce will issue an antidumping duty order that CBP will place on all imports of subject imports from specified source.
Why is This Important?
Duties on imports can increase prices for some companies that have supply contracts with the affected sources. Price increases for importers may be passed on to the market.
Canada, China, Mexico, Korea, and Taiwan have made acquisition of items less expensive for the United States. Any actions on these countries could have a significant impact on imports and markets in the United States.
When duties make imports more expensive or closer to fair value; it makes domestic firms more competitive. Imports are traditionally cheaper and can achieve lower prices than domestic firms with the established workplace demands in the United States. Either suppliers will seek other sources or be approached by domestic producers.
Entrepreneurs should understand that when they are importing items from another country, they could have duties or other regulations liable depending on the source of the articles. Research needs to be conducted on the taxes due on items from specific sources. Further, there are Free Trade Agreements that may have specific policies with specified articles.
Cost of Goods Sold and regulations from government agencies, characterize some of the Barriers to entry. Regulations require companies and entrepreneurs to take extra steps before commencing business operations. Certifications, regulation compliance and the cost of the time and fees of them is an important expense for business or entrepreneurs to be aware of.
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