US Department of Commerce accuses China of transit of its stainless steel through five countries

The US Department of Commerce on Wednesday launched an investigation into possible customs clearance by Chinese manufacturers of certain types of Corrosion Resistant Steel Products (CORE) exported to the US via Costa Rica, Guatemala, Malaysia, South Africa and the UAE.

An investigation will determine whether the final processing of Chinese steel is actually being completed in these countries to avoid significant customs payments.

The ministry said shipments of corrosion-resistant steel from five countries grew exponentially - by 151,000 percent in the case of Malaysia. CORE shipments from Costa Rica, Guatemala, South Africa and the United Arab Emirates to the United States increased in price over 45 months by 29,210%, 35,944%, 629% and 5,571%, respectively.

Anti-dumping and countervailing duties apply to steel products from China. Export of goods from Taiwan is subject only to anti-dumping duties.

American companies usually file import violation charges, but this time the Commerce Department is launching its own investigation.

In May 2018, the US Department of Commerce made the final decision that the import of stainless steel from Vietnam from a Chinese substrate bypassed the existing duties. In July, the ministry published an affirmative preliminary determination in a separate investigation regarding the import of CORE from Vietnam using substrates from South Korea and Taiwan.