Circumvention Inquiry Initiated on Antidumping and Countervailing Duty Orders for Corrosion-Resistant Steel Products from China via Indonesia

The U.S. Department of Commerce (Commerce) has initiated a country-wide circumvention inquiry targeting imports of certain corrosion-resistant steel products (CORE) that are completed in Indonesia using hot-rolled steel (HRS) and cold-rolled steel (CRS) manufactured in China. The inquiry was triggered by a formal request from two major U.S. steel producers, Steel Dynamics Inc. and Nucor Corporation. The core concern is that Chinese steel manufacturers may be routing semi-finished steel through Indonesia to avoid existing antidumping (AD) and countervailing duty (CVD) orders on CORE products directly imported from China. By processing Chinese-origin HRS and CRS in Indonesia and re-exporting the finished CORE products to the U.S., importers may be sidestepping the tariff obligations these orders impose. If Commerce finds that circumvention is occurring, CORE products processed in Indonesia from Chinese-origin steel inputs could become subject to the same AD and CVD duty rates as direct imports from China. This would significantly increase the cost of such imports and level the playing field for domestic U.S. steel producers. The inquiry reflects a broader U.S. trade enforcement trend of scrutinizing third-country processing arrangements—particularly involving China—to close gaps in existing trade remedy orders. Stakeholders in the steel supply chain, including importers, distributors, and downstream manufacturers, should monitor this inquiry closely as it may affect sourcing decisions and cost structures.

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