The Mexican international trade authority, the Ministry of Economy, decided to preliminarily maintain antidumping duties of $0.50 per kilogram ($500/mt) on the import of steel chains with welded links manufactured in China, regardless of the country of origin. The tariff has been applied since 2003 and will have an additional 25 percent charge by presidential decree on steel products with countries that do not have a trade agreement.
“The administrative procedure of the ex officio review continues without modifying the compensatory quota (...) imposed on imports of welded steel chain originating in China, regardless of the country of origin,” the Ministry of Economy published today (SE) in a display in the official gazette of the Mexican government (DOF).
Currently, the product is imported into Mexico with tariff item 7315.82.91 of the General Import and Export Tax Law (TIGIE).
In addition, he reported that the product under investigation has an additional countervailing duty of 25 percent, according to the presidential decree of August last year that charges tax on steel products (among others) coming from countries with which Mexico does not have a treaty free trade. The levy will be collected from August 2023 until July 31, 2025.
In July 2003, Mexico imposed AD equivalent to $720/mt on the import of steel chain from China. In January 2010, in the first sunset review, the AD was reduced to $500/mt ($0.50 per kilogram). In July 2014, in the second sunset review, the tax was maintained; In July 2019, in the third sunset review, AD was also maintained and in the fourth sunset review, it remains unchanged preliminarily.
The producers in Mexico of the product under investigation are Grupo DeAcero, Industrial de Alambres (Indasa), Clavos México and Clavos CN (owned by Grupo CN). According to the Mexican government, in the past, Deacero and Industrial de Alambres together concentrated 64 percent of national production.
The chains' main importer is the giant Mexican producer and marketer of hand tools and hardware products Truper.
The investigation period will be from April 1, 2022 to March 31, 2023 and the analysis period will be from April 1, 2018 to March 31, 2023.
According to the Mexican government, wire rod is the main raw material for manufacturing steel chains, which represents 60 percent of the production cost structure.