The Commerce Department Initiates Anti-Circumvention Investigation of Chinese Diamond Sawblades Imported Through Canada

Washington, DC— The U.S. Department of Commerce has announced that it is initiating an anti-circumvention investigation to determine whether imports of diamond sawblades from Protech Diamond Tools Inc. (Protech) are circumventing the antidumping duty (AD) order on diamond sawblades from the People’s Republic of China.  Specifically, in response to a petition filed by the Diamond Sawblades Manufacturers Coalition (DSMC), Commerce will investigate whether diamond sawblades produced in Canada by Protech using cores and segments of Chinese origin and exported to the United States are circumventing the AD order. The petition alleges that Protech uses minor welding operations and other minor processing in Canada to join cores and segments made in China before they are imported into the United States. 

While Commerce’s anti-circumvention inquiry is primarily focused on Protech at this time, the agency made clear that it may expand the scope of the inquiry to other Canadian companies engaging in similar conduct. Daniel Pickard, counsel to the DSMC, stated: “This is an important first step to address circumvention of the AD order through Canada. The domestic industry will continue its efforts to ensure that the antidumping order is fully enforced.” Commerce’s initiation clears the way for its formal investigation into Protech’s alleged circumvention. If Commerce issues a preliminary affirmative determination, Protech’s diamond sawblades imported or withdrawn from a warehouse for consumption on or after the date of initiation of the inquiry will be subject to applicable antidumping duties and cash deposits.

The Wiley Rein team representing the DSMC in this case also includes International Trade partner Stephanie M. Bell and associate Derick Holt.