US punitive tariffs ignored Korean steelmaker's data

By Choi Sung-jin

The U.S. Department of Commerce has imposed a preliminary antidumping tariff of 47.8 percent on Korean steel imports from Hyundai Steel without referring to the company’s data, officials said Tuesday.

According to the Washington office of the Korea International Trade Association (KITA), the commerce department did not properly reflect the data and statistics submitted by Hyundai Steel before imposing the antidumping duty. Instead, the U.S. officials calculated dumping margins by using the “adverse facts available,” or AFA, to the disadvantage of Korean exporters.

The U.S. department had demanded Hyundai Steel present unduly detailed data and complicated proof of export price conditions, KITA said. Hyundai Steel supplies most of its exports to Hyundai Motor, and it is an extremely complicated process to classify the volume and occupancy of steel used for numerous auto parts, and put prices on them.

Hyundai Steel attempted to persuade the U.S. department that the “proof of constructed value is not necessary,” but failed to do so and was slapped with the steep punitive tariffs based on the AFA.

“The episode points to the protectionist sentiments widespread in the United States,” the KITA office said.

The U.S. International Trade Commission will make a final ruling on July 8, and if it decides Korean exports have damaged the U.S. industry, the punitive tariffs will go into effect on July 15.

The Ministry of Trade, Industry and Energy and the Korea Iron and Steel Association held an emergency meeting Tuesday to discuss countermeasures to the commerce department’s decision.