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Commerce Commences Section 232 Investigation on Imports of Vanadium

By Nithya Nagarajan & Turner Kim
June 3, 2020
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The Commerce Department announced on June 2, 2020, that it is starting another  Section 232 investigation that could result in the imposition of tariffs or potentially other restrictions on imports of vanadium.  The agency stated that it will review and determine “whether the present quantities or circumstances of vanadium imports into the United States threaten to impair the national security.”

Vanadium is a chemical element with the symbol “V” and is assigned atomic number 23.   A general description of it is a hard, silvery-grey, malleable transition metal.  It is an artificially isolated element which is rarely found in its natural state, but one of its key properties once isolated artificially is to prevent oxidation.  Various applications that rely on vanadium include use in the production of ferrovanadium, which is a steel additive.  The chemical properties of vanadium also increase the strength of the steel and it is therefore used in products such as high-carbon steel alloys and high-speed tool steels for use “aircraft, jet en­gines, ballistic missiles, energy storage, bridges, buildings, and pipelines. Vanadium is a key component in aerospace applications due to its strength-to-weight ratio, the best of any engineered material,” Commerce said and “U.S. demand is supplied entirely through imports.”

This new 232 investigation is the result of the filing of a request by two domestic U.S. vanadium producers, AMG Vanadium and U.S. Vanadium, in November 2019.   The allegation claims that the “domestic industry is adversely impacted by unfairly traded low-priced im­ports, limited export markets due to value-added tax regimes in other vanadium producing countries, and the distortionary effect of Chinese and Russian industrial policies,” according to Commerce’s press release.

The notice of initiation, of the 232 investigation was published in the Federal Register on June 3rd.  Comments must be filed by July 20, 2020, and any rebuttal comments are due by August 17, 2020.  Those interested in submitting comments should ensure that it addresses the following:

  • the quantity of imports,
  • domestic production and capacity needed to meet national defense requirements, and
  • the impact of foreign competition on the vanadium industry, among other things.

Husch Blackwell continues to monitor the Section 232 investigations and will provide further updates as more information becomes available. If you believe your company may be affected by this investigation, please contact Husch Blackwell’s International Trade and Supply Chain group for assistance on how to submit comments.

Photo of Nithya Nagarajan Nithya Nagarajan

Nithya’s extensive background in U.S. trade issues spans 25 years and includes various roles in a number of federal government agencies, including the Department of Commerce Department of Justice, and the U.S. Court of International Trade. She assists clients with administrative and regulatory…

Nithya’s extensive background in U.S. trade issues spans 25 years and includes various roles in a number of federal government agencies, including the Department of Commerce Department of Justice, and the U.S. Court of International Trade. She assists clients with administrative and regulatory actions before the Department of Commerce, International Trade Commission and U.S. Customs and Border Protection (CBP) and defends clients in appeals before the Court of International Trade, Court of Appeals for the Federal Circuit, NAFTA panels and the World Trade Organization. In addition to her body of U.S. experience, Nithya is also well-versed in international trade issues in China and India.

Read more about Nithya NagarajanEmail
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Photo of Turner Kim Turner Kim

Turner, who plans to pursue a juris doctorate, relishes the opportunity to dig into cases and research the relevant laws. He thrives in fast-paced environments and excels at working under pressure.

Read more about Turner KimEmail Turner's Linkedin Profile
  • Posted in:
    Corporate & Commercial, International
  • Blog:
    International Trade Insights
  • Organization:
    Husch Blackwell LLP
  • Article: View Original Source

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