US ITC terminates probe under section 337 against Chinese steel mills

US International Trade Commission administrative law judge has agreed to terminate an antitrust claim against Chinese steel companies, one of three US Steel Corp claims in an ongoing and controversial section 337 case that accuses the Chinese companies of setting artificially low steel prices, evading duties and stealing trade secrets.

US Steel intends to review all options, including an appeal to the ITC to review the ALJ decision, according to a domestic steel industry source.

On May 26th 2016, USITC had voted to institute an investigation of certain carbon and alloy steel products. The products at issue in the investigation are carbon and alloy steel products from China. The investigation is based on a complaint filed by U.S. Steel Corporation of Pittsburgh, PA, on April 26, 2016. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain carbon and alloy steel products through one or more of the following unfair acts:

• Aconspiracy to fix prices and control output and export volumes, in violation of Section 1 of the Sherman Act, 15 U.S.C. § 1;
• The misappropriation and use of U.S. Steel’s trade secrets; and
• The false designation of origin or manufacturer, in violation of the Lanham Act, 15 U.S.C. § 1125(a).

The complainants request that the USITC issue a general exclusion order, a limited exclusion order, and cease and desist orders.

The USITC had identified the following as respondents in this investigation:
Hebei Iron and Steel Group Co., Ltd., of Shijiazhuang City, Hebei Province, China;
Hebei Iron & Steel Group Hengshui Strip Rolling Co., Ltd., of Hengshui City, Hebei Province, China;
Hebei Iron & Steel (Hong Kong) International Trade Co., Ltd., of Hong Kong, China;
Shanghai Baosteel Group Corporation of Shanghai, China;
Baoshan Iron & Steel Co., Ltd., of Shanghai, China;
Baosteel America Inc. of Montvale, NJ;
Jiangsu Shagang Group of Zhangjiagang, Jiangsu Province, China;
Jiangsu Shagang International Trade Co., Ltd., of Zhangjiagang, Jiangsu Province, China;
Anshan Iron and Steel Group of Anshan City, Liaoning Province, China;
Angang Group International Trade Corporation of Anshan, Liaoning Province, China;
Angang Group Hong Kong Co. Ltd. of Wanchai, Hong Kong, China;
Wuhan Iron and Steel Group Corp. of Hubei Province, China;
Wuhan Iron and Steel Co., Ltd., Wuhan City, Hubei Province, China;
WISCO America Co., Ltd., Newport Beach, CA;
Shougang Group of Beijing, China;
China Shougang International Trade & Engineering Corporation of Beijing, China;
Shandong Iron and Steel Group Co. Ltd. of Jinan City, Shandong Province, China;
Shandong Iron and Steel Co., Ltd., Jinan City, Shandong Province, China;
Jigang Hong Kong Holdings Co., Ltd., of Wan Chai, Hong Kong, China;
Jinan Steel International Trade Co., Ltd., of Jinan City, Shandong Province, China;
Magang Group Holding Co. Ltd. of Maanshan City, Anhui Province, China;
Maanshan Iron and Steel Co. Ltd. of Maanshan City, Anhui Province, China;
Bohai Iron and Steel Group of Tianjin, China;
Tianjin Pipe (Group) Corporation of Tianjin Province, China;
Tianjin Pipe International Economic & Trading Corporation of Tianjin Province, China;
TPCO Enterprise, Inc., Houston, TX;
TPCO America Corporation of Gregory, TX;
Benxi Steel (Group) Co. Ltd. of Benxi City, Liaoning Province, China;
Benxi Iron and Steel (Group) International Economic and Trading Co. Ltd. of Benxi City, Liaoning Province, China;
Hunan Valin Steel Co. Ltd. of Changsha City, Hunan Province, China;
Hunan Valin Xiangtan Iron and Steel Co. Ltd. of Xiangtan City, Hunan Province, China;
Tianjin Tiangang Guanye Co., Ltd., of Tianjin, China;
Wuxi Sunny Xin Rui Science and Technology Co., Ltd., of Wuxi Province,