For Immediate Release: July 3, 2008
Contact: Brittany Eck (202) 482-3809
COMMERCE FINDS UNFAIR DUMPING AND SUBSIDIZATION OF RAW FLEXIBLE MAGNETS
WASHINGTON – The U.S. Department of Commerce today announced its final affirmative determinations in the antidumping (AD) and countervailing duty (CVD) investigations of imports of raw flexible magnets from China (AD/CVD) and Taiwan (AD). Raw flexible magnets are generally relatively thin, polymer-bonded magnetic materials characterized by their flexibility and ease of machinability, which make them ideal for use as refrigerator magnets.
"Companies from China and Taiwan are unfairly pricing and selling refrigerator magnets in the United States,” said Assistant Secretary for Import Administration David Spooner. “That unfair competition is further magnified by government subsidies that Chinese exporters receive. Subsidies distort global trade flows and force American manufacturers to compete in a global market that is weighted against them. The Administration will continue to vigorously enforce our countervailing duty and antidumping laws, and will take appropriate remedies based on the facts presented in each case.”
In the AD investigation, one Chinese exporter, Guangzhou Newlife Magnet Electricity Co., Ltd, qualified for a separate final rate of 105 percent. All other Chinese exporters, including the sole mandatory respondent Polyflex Magnets Ltd., which failed to cooperate in the investigation, received the China-wide rate of 185.28 percent. This rate is based on adverse facts available.
In the CVD investigation, mandatory respondents China Ningbo Cixi Import Export Corp., and Polyflex Magnets Ltd., failed to cooperate and received a final subsidy rate of 109.95 percent based on adverse facts available. This rate also applies to all other Chinese exporters.
Commerce also determined that exporters from Taiwan have sold raw flexible magnets in the United States at 31.20 to 38.03 percent less than normal value. Because mandatory respondents Kin Fong Magnets Co., Ltd., Magruba Flexible Magnets Co., Ltd., and JASDI Magnet Co., Ltd. failed to cooperate in the investigation, their final antidumping rate of 38.03 percent is based on adverse facts available. All other exporters from Taiwan received the all-others antidumping rate of 31.20 percent.
As a result of these final AD determinations, Commerce will instruct U.S. Customs and Border Protection to continue to suspend liquidation of entries of raw flexible magnets and collect a cash deposit or bond based on these final rates. Suspension of liquidation will only resume for purposes of countervailing duties if the U.S. International Trade Commission (ITC) issues an affirmative finding of injury to domestic manufacturers.
The ITC is scheduled to issue its final injury determinations on or about Aug. 18, 2008. If the ITC determines that imports from China and Taiwan are injuring, or threaten injury to, the domestic industry, Commerce will issue AD and CVD orders. If the ITC makes negative injury determinations, these investigations will be terminated.
The petitioner for these investigations is Magnum Magnetics Corporation from Marietta, Ohio.
Dumping is when a foreign company sells a product in the United States at less than normal value. Subsidies are financial assistance from foreign governments that benefit the production, manufacture or exportation of goods.
For more information about Import Administration or for the fact sheet on today’s decision, please visit www.trade.gov/ia.