ITC Accepts U.S. Steel's Petition: Chinese Steel Under Investigation

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May 27, 2016

On May 26, 2016, the U.S. International Trade Commission voted to initiated a 337 investigation of carbon and alloy steel products from China.  The USITC initiated the investigation to determine if there is a violation of section 337 based on allegations of (1) a conspiracy to fix prices and control output and export volumes; (2) misappropriation and use of trade secrets; or (3) false designation of origin or manufacturer.  Respondents are required to respond to the complaint within 20 days after the date of service of the complaint and notice of investigation.  Responses would be due by June 15, 2016.

The complaint specifically names China's forty largest steel manufacturers, but U.S. Steel also seeks a categorical ban on all Chinese imports of carbon and alloy steel products.  U.S. Steel's remedies include a limited exclusion order, a general exclusion order and cease and desist orders.  

Within 45 days after initiation of the investigation, the USITC  will set a target date for completing the investigation.  Generally, the Commission tries to complete 337 investigations in less than 15 months.  The investigation will be assigned to one of the USITC's administrative law judges.  The Commission has instructed the ALJ to take evidence and hear arguments from the parties and other interested persons with respect to the public interest in this investigation.  The ALJ will make an initial determination, which is subject to review by the Commission.  In addition, if the ALJ finds a violation and recommends a remedy, the Commission may solicit additional comments on the public interest.  USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reason by the President within that 60-day period.  

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