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Commerce Department Issues Favorable Preliminary Ruling for U.S. Diamond Sawblade Industry

January 5, 2006

Washington, DC—On December 20, 2005, the U.S. Department of Commerce found preliminarily that diamond sawblade imports from two countries—China and Korea—are being sold in the United States at less than fair value.  The determination, made in response to a petition filed by WRF client, the Diamond Sawblade Manufacturers’ Coalition (DSMC), found a broad range of dumping margins, with a countrywide rate of 10.56% for Korea and an “All Others” China rate of 164.09%.

The ruling requires importers to post bonds for estimated dumping duties on diamond sawblades (and parts thereof) imported from these countries on or after the publication date of the government’s preliminary determination.  The agency also found critical circumstances against certain Chinese producers due to their “massive imports” over a “relatively short period,” as required by law.  As a result, duties for imports from these companies may be applied retroactively up to 90 days before the publication date of the preliminary determination.

“This ruling confirms the prevalence of unfair pricing of imports from China and Korea,” said Daniel B. Pickard, a partner in Wiley Rein & Fielding’s International Trade Practice and counsel to the DSMC.  “Imports from these countries surged into the United States at unprecedented volumes.  Domestic producers and their workers have suffered enormously due to the dumping of diamond sawblades.  Overall, the determination does not go far enough, however.  We are confident that Commerce will find significantly higher dumping margins in its final determination.”    

The U.S. Department of Commerce is scheduled to complete its investigation and issue final determinations in the cases in May 2006.  The U.S. International Trade Commission has until June 2006 to complete an investigation of whether the dumped imports are causing material injury or threat of material injury to the U.S. industry.