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U.S. Producer of Iron Mechanical Transfer Drive Components Files For Trade Relief Against Imports from Canada and China

October 28, 2015

TB Wood’s Incorporated, a U.S. producer of iron mechanical transfer drive components, including sheaves, flywheels, and bushings, today filed petitions for trade relief with the United States Department of Commerce (DOC) and the United States International Trade Commission (ITC), requesting the agencies to investigate dumped imports from Canada and dumped and subsidized imports from the People’s Republic of China. The petitions were filed in response to a steady increase in imports, coupled with price erosion, which in turn has materially injured the domestic industry. The petitions demonstrate that Canadian producers are dumping their product into the United States at margins ranging from 50.77% to 292.85% while Chinese producers are dumping their product at margins up to 122.42% while also benefiting from a range of countervailable subsidies.

T.B. Wood’s, Incorporated is represented by Daniel B. Pickard and Robert E. DeFrancesco III of Wiley Rein LLP.  

As a result of the increasing volumes of unfairly traded imports from Canada and China, the domestic industry’s production, sales, and ability to maintain the employment of its workforce have all suffered, as has the industry’s profitability. Canadian and Chinese imports present a continuing threat to the domestic industry.

“Unfair imports of iron transfer drive components have injured TB Wood’s and other U.S. producers,” offered Mr. Pickard, a partner in the International Trade Practice at Wiley Rein LLP and counsel to TB Wood’s.

“These petitions highlight the negative effects of unfair pricing practices on U.S. companies and their workers,” added Mr. DeFrancesco. “If successful, this case will preserve and increase U.S. production and result in additional U.S. manufacturing jobs.”

The Subject Merchandise

The products covered by the petitions include sheaves, flywheels, and bushings used to transmit power within machinery. They are typically used in belted drive systems. The covered products are manufactured of iron, inclusive of white iron, grey iron, and ductile iron. 

The Procedure

The DOC and ITC should initiate its antidumping and countervailing duty investigations within 20 days of the filing of domestic industry’s petitions. The ITC’s preliminary injury determination is expected in December 2015, and the DOC is anticipated to make its preliminary determinations within approximately six months. After the issuance of the DOC’s preliminary determinations, importers of covered Canadian and Chinese mechanical transfer drive components will be required to make cash deposits in the amount of the DOC’s preliminary antidumping and countervailing duty margins. A final determination is expected within nine to 13 months.

For more information, please contact Daniel Pickard at 202.719.7285 or dpickard@wileyrein.com, or Robert DeFrancesco at 202.719.7473 or rdefrancesco@wileyrein.com.