The Commerce Department has initiated an investigation into alleged dumping of U.S. titanium sponge imports from Japan and Kazakhstan, and whether those imports from Kazakhstan are receiving unfair subsidies.
Dumping occurs when foreign companies sell their products to the U.S. market at less than fair value, while countervailable subsidies are given by foreign governments to companies to encourage them to export and use domestic goods in place of imports during manufacturing.
Titanium Metals Corp. of Pennsylvania filed petitions requesting the antidumping and countervailing duty investigations on Aug. 24. Titanium sponge is used to manufacture electronic parts, sports equipment, and architectural components.
The estimated dumping margins alleged by the petitioner range from 66.69 percent to 95.2 percent for Japan and 42.22 percent for Kazakhstan, and the unfair subsidies are estimated to be above de minimis, or 1 percent or greater for Kazakhstan.
If Commerce determines that titanium sponge from Japan and Kazakhstan are being dumped into the U.S. market and Kazakhstan is receiving unfair government subsidies, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized U.S. imports of this product from the two countries harm U.S. industry, then Commerce will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.
According to Commerce, titanium sponge imports from Japan and Kazakhstan in 2016 were valued at $144.8 million and $374,000, respectively.
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