On June 30th 2009, the Department of Commerce announced its affirmative preliminary determination in the countervailing duty investigation on imports of Ni Resist Piston Inserts from Argentina.

Subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods.

Commerce preliminarily determined that Argentine producers and exporters of piston inserts have received countervailable subsidies at 5.42%.

Mandatory respondent, Clorindo Appo SRL, received a preliminary subsidy rate of 5.42%. Because Clorindo Appo SRL was the only respondent, all other Argentine producers and exporters received a preliminary subsidy rate 5.42%.

As a result of this preliminary determination, Commerce will instruct US Customs and Border Protection to collect a cash deposit or bond on imports of piston inserts from Argentina.

The petitioner for this investigation is Korff Holdings, LLC, dba Quaker City Castings.

The merchandise subject to this investigation includes all piston inserts regardless of size, thickness, weight, or outside diameter. Piston inserts may also be called other names including, but not limited to, “Ring Carriers,” or “Alfin Inserts.” Ni-resist inserts are alloyed cast iron rings, composed of the material known as Ni-resist, of the chemical composition: 13.5% to 17.5% nickel, 5.5% to 8.0% copper, 0.8% to 2.0% chrome, 0.5% to 1.5% manganese, 1.0% to 3.0% silicon, 2.4% to 3.0% carbon. The cast iron composition is produced primarily to the material specifications of the American Society for Testing & Materials A-436 grade 1.

Excluded from the scope of the investigation are piston rings or any other product manufactured using the Ni-resist material.

Piston inserts are currently classifiable under the subheading 8409.99.91.90 of the Harmonized Tariff Schedule of the United States. While the HTSUS subheading is provided for convenience and customs purposes, Commerce’s written description governs the scope of the investigation.

In 2007, imports of piston inserts from Argentina were valued at an estimated USD 5 million.

Commerce is currently scheduled to issue its final determination in September 2009.

If Commerce makes an affirmative final determination, and the US International Trade Commission makes an affirmative final determination that imports of piston inserts from Argentina materially injure, or threaten material injury to, the domestic industry, Commerce will issue a countervailing duty order.

(Sourced from www.ita.doc.gov)