US sets preliminary subsidy rates on imports of dry containers from China

The US Commerce Department on Tuesday set preliminary subsidy rates on imports of 53-foot domestic dry containers from China, signaling that it may impose punitive duties on the products.

The department made its preliminary affirmative determination that Chinese producers and exporters of dry containers received countervailing subsidy rates ranging from 7.13 percent to 10.46 percent.

Punitive duties would be imposed after both the Commerce Department and the US International Trade Commission (ITC) made affirmative final rulings, which are scheduled on Feb 2 and March 19, 2015, respectively. If the ITC makes a negative determination, the investigations will be terminated.

The probe is in response to a request from Stoughton Trailers based in the state of Wisconsin. The company alleged that the products from China were sold below the fair value of the products in the US market with dumping margin of 84.07 percent, and Chinese producers and exporters also received improper government subsidies.

Imports of these products from China were estimated at about $184 million last year, according to US official data.

Fifty-three-foot domestic dry containers are closed van containers generally measuring 53 feet in length, which are designed to transport dry goods primarily by rail or by road vehicles, or by a combination of both modes.

As the US economy is undergoing a slow recovery, Washington has increasingly resorted to protectionist practices. Beijing has repeatedly urged Washington to honor its commitment against protectionism and work with China to maintain a free, open and just trade environment.