STEEL Act aims to enhance trade enforcement to prevent dumping of steel in the US

U.S. Reps. Chris Deluzio (D-PA) and Mike Kelly (R-PA) introduced the Strengthening Trade Enforcement and Evasion Limitations Act, or STEEL Act, Dec. 9, legislation that would enhance trade enforcement and prevent dumping of foreign-produced steel that devalues U.S. steel prices and those of other domestic products.  

The bill would modify procedures for investigating claims of evasion of antidumping and countervailing duty orders by allowing the Customs and Border Protection commissioner to self-initiate an investigation if he or she has information that reasonably suggests that covered merchandise has been entered into the U.S. customs territory through evasion.

“In such case, the terms and conditions that apply to the processes for allegations and referrals under this section shall also apply to a process for self-initiation under the preceding sentence," it says.

The law also modifies the judicial review process by allowing a person determined to have entered such covered merchandise through evasion to seek judicial review only if all liquidated duties, charges or exactions have been paid.

“Western Pennsylvanians know how decades of wimpy trade law enforcement have hurt American workers and industry,” Deluzio says. “We need stronger enforcement, and that means stopping trade cheats from ripping us off. I was glad to work with Congressman Mike Kelly on this bill to put some muscle back into our trade enforcement laws and help level the playing field for American jobs and industries.”   

"For years, foreign steel producers have undercut American steel and tube producers by exporting their product at prices below the cost of production," Kelly adds. "These harmful—and even illegal—trade practices have hurt Pennsylvania steel producers, leading to job losses in communities across Pennsylvania and the United States.”

Kelly adds that the STEEL Act puts U.S. companies first by rejecting the idea that foreign companies can participate in the U.S. market against U.S. companies without playing by the same rules.  

Among the act’s endorsers are the American Iron and Steel Institute (AISI), Washington, and the Committee on Pipe and Tube Imports (CPTI). 

“For too long, bad actors have sought to evade U.S. trade laws through fraud, transshipment and other schemes,” says Kevin Dempsey, president and CEO of the American Iron and Steel Institute (AISI). “These actions have hurt American businesses and workers, including in the American steel industry. By allowing Customs and Border Protection to initiate investigations on its own initiative when it finds evidence of evasion of antidumping or countervailing duty orders, this bill will give CBP an additional tool to crack down on these illegal schemes."

AISI is urging Congress to pass the STEEL Act and other trade enforcement legislation designed to ensure strict and vigorous enforcement of U.S. trade laws.

"Steel pipe and tube producers across the country have long borne the brunt of unfairly traded imports that erode market share and put U.S. manufacturers and workers at risk," says Roger B. Schagrin, executive director and general counsel of the Committee on Pipe and Tube Imports (CPTI), Washington.

He adds that while the Enforce and Protect Act (EAPA) has been essential in helping CPTI and its member companies stop those evading antidumping and countervailing duties, gaps in the current statute have still allowed some importers to exploit loopholes and avoid lawfully imposed duties.

“By enabling U.S. Customs and Border Protection to proactively investigate duty evasion and by curbing frivolous appeals, this legislation will strengthen enforcement and deliver meaningful relief to American manufacturers and workers across the country who rely on fair and effective trade laws," he says.