The U.S. Trade Panel Clears Way for Probe on Imposing China Steel Cylinders Import Duties

A U.S. trade panel on July 1, 2011 cleared the way for the government to investigate whether to impose duties on Chinese exports of high- pressure steel cylinders.

The vote by the International Trade Commission allows the Commerce Department to explore whether to slap antidumping or countervailing duties on imports of the cylinders typically used to transport compressed or liquefied gas, which grew to $48.8 million last year from $29.1 million in 2009.

Texas-based Norris Cylinder Company claims that Chinese companies are selling the goods at less than normal value, seeking antidumping duties of up to 176.25% . The company is also seeking countervailing duties in retaliation for alleged subsidies by the Chinese government.

The ITC determined that "there is a reasonable indication" that U.S. producers are being hurt by the Chinese imports.

Commerce is expected to make a preliminary decision on countervailing duties around Aug. 4, with an initial finding on the antidumping investigation expected around Oct. 18.