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The Foreign Trade Secretariat (“SECEX”) of the Ministry of Industry, Foreign Trade and Services (“MDIC”) published on the Official Gazette from March 26, 2018, Notice of Initiation No. 14, launching an anti-dumping investigation against Brazilian imports of cast iron or steel cylinders (rolling mills) from China. The product is commonly classified in items 8455.30.10 and 8455.30.90 of the Mercosur Common Nomenclature – NCM (HS based). The petitioner is Gerdau Summit Aços Fundidos e Forjados S.A.
The product under investigation was defined as cast iron or steel rolling cylinders with an outer diameter of the working table of 250 mm or more but not exceeding 1,850 mm and having a working table length of 150 or more mm but not exceeding 1,300 mm. Also known as rolling mill cylinders, rolling mills, rolling mill rollers, and forming rollers, the product is used in mechanical forming tools in rolling, forging and similar processes.
For the purposes of initiating this investigation, the Brazilian authority has calculated an absolute dumping margin of US$ 1,880.42 per ton and a relative dumping margin of 101.7%. Exporters and importers participating in the investigation can demonstrate that the product is not dumped to Brazil, avoiding the imposition of antidumping duties. Alternatively, if the authority understands that exports were dumped, the companies participating in the investigation may request individual dumping margins, which results in lower duties on their exports.
Brazilian imports of the product from 2012 to 2017 were as follows:
| Period | US$ FOB | Net weight (Kg) |
| Jul/2012 – Jun/2013 | 2.802.765 | 870.975 |
| Jul/2013 – Jun/2014 | 3.558.865 | 1.049.536 |
| Jul/2014 – Jun/2015 | 3.434.681 | 938.642 |
| Jul/2015 – Jun/2016 | 5.586.169 | 1.858.877 |
| Jul/2016 – Jun/2017 | 2.867.188 | 1.277.847 |
Interested parties will receive questionnaires indicating the information necessary to the investigation, and shall have a 30-day deadline for response, counting from the date of notification. Interested parties may participate in the investigation through legal representatives duly registered before the Department of Trade Remedies. Other parties who consider themselves as interested in the proceeding shall file a request for participation within a 20-day deadline counting from the beginning of the investigation.
