Pantech to challenge US Commerce Dept’s preliminary finding

PETALING JAYA: Pantech Group Holdings Bhd said it is working closely with its appointed legal counsel to challenge the US Department of Commerce’s (DoC) preliminary determination concerning carbon steel butt-weld fittings from Malaysia.

The DoC had on July 20 preliminarily determined that Malaysian companies are circumventing the antidumping duty (AD) order on butt-weld fittings from China.

As a result, Pantech said, carbon steel buttweld fittings having an inside diameter of less than 14 inches exported by its unit Pantech Steel Industries Sdn Bhd (PSI) to the US are subject to a cash deposit rate for estimated AD duties of 182.90% ad valorem, based on the duty rate in effect on carbon steel butt-weld fittings from China.

Calling the DoC’s decision “unjustified”, Pantech told the stock exchange that PSI is taking all possible legal steps to reverse this preliminary determination.

Pending further developments in the DoC investigation, the group noted that PSI has suspended all shipments of carbon steel buttweld fittings having an inside diameter of less than 14 inches to the US.

Pantech estimated that there could be a 20% reduction in the group’s revenue for the remaining months of this financial year.

“PSI strongly views this decision as unjustified and contrary to applicable US law. PSI has never intentionally circumvented the antidumping duty order concerning China and believes that all of its fittings exported in Malaysia should be classified as originating in Malaysia and entered without AD duties.”

PSI has been producing up to 21,000 tonnes of carbon steel butt-weld fittings a year in Malaysia, which are exported.