Commerce Department Finalizes Korean Steel Nail Duties

The U.S. Department of Commerce has completed its antidumping duty administrative review of certain steel nails imported from the Republic of Korea, covering the period from July 1, 2022, through June 30, 2023. The final determination, published on May 14, 2025, concludes that several Korean producers and exporters sold steel nails in the American market at prices below normal value, a practice commonly known as dumping. This ruling represents the latest chapter in ongoing trade enforcement actions aimed at protecting domestic manufacturers from unfairly priced imports. The investigation was conducted under the authority of section 751(a) of the Tariff Act of 1930, following established procedures for trade remedy cases.

Differential Rates Applied to Korean Manufacturers

Following a detailed analysis of pricing data and production costs, Commerce imposed varying antidumping duty rates on Korean steel nail producers. Korea Wire Co., Ltd. (KOWIRE) received a zero percent duty rate after investigators determined the company had not engaged in dumping during the review period. In contrast, Nailtech Co., Ltd. was assigned a 2.34% duty rate based on evidence that its U.S. sales were made at less than fair value. Additionally, all other Korean steel nail producers and exporters not individually examined in the review will face the same 2.34% duty rate. These determinations followed a thorough investigation process that included opportunities for all parties to submit comments and rebuttals.

Review Process Included Multiple Extensions

The administrative review followed a lengthy procedural timeline, beginning with preliminary results published on August 12, 2024. Commerce initially extended the deadline for final results to February 7, 2025, but subsequently issued a 90-day tolling order on December 9, 2024, pushing the final determination date to May 8, 2025. The actual publication occurred on May 14, 2025. Throughout this process, interested parties had opportunities to submit case briefs and rebuttal arguments addressing preliminary findings. Commerce officials considered these submissions when making their final determinations, resulting in certain adjustments to the dumping margin calculations for both mandatory respondents.

Scope of Products Covered by the Order

The antidumping duty order applies specifically to certain steel nails from Korea, encompassing a range of nail products used primarily in construction and manufacturing applications. While the Federal Register notice references a complete description of covered products in the Issues and Decision Memorandum, steel nails subject to these duties typically include various types of construction nails, finishing nails, and specialty fasteners made from steel. The scope definition is crucial as it determines precisely which imported products are subject to the additional duties, providing clarity for customs officials, importers, and domestic producers alike.

Methodology and Calculation Changes

Commerce's final determination incorporated several methodological changes from its preliminary findings based on comments received from interested parties. While specific details of these adjustments are contained in the non-public Issues and Decision Memorandum, they resulted in revised margin calculations for both KOWIRE and Nailtech. For companies not individually examined, Commerce followed standard practice by applying section 735(c)(5) of the Tariff Act as guidance. This provision typically calls for non-selected companies to receive a weighted-average of the rates assigned to individually examined exporters, excluding zero, de minimis, or facts-available rates. Since one mandatory respondent received a zero rate, Commerce assigned Nailtech's 2.34% rate to all non-selected companies.

Impact on U.S.-Korea Trade Relations

This antidumping determination represents one element in the complex trade relationship between the United States and South Korea. Steel products have frequently been the subject of trade remedy actions, reflecting their strategic importance to both economies. The relatively modest duty rate of 2.34% suggests Commerce found evidence of dumping but at levels less severe than in some other cases involving steel products. The zero rate for KOWIRE indicates that at least one major Korean producer was able to demonstrate fair pricing practices during the review period, potentially providing a roadmap for other exporters seeking to avoid duties in future reviews.

Enforcement and Compliance Procedures

Following this final determination, U.S. Customs and Border Protection will be instructed to collect cash deposits at the specified rates on imports of steel nails from the named Korean producers. The antidumping duty order remains subject to potential annual administrative reviews, during which Commerce can reassess dumping margins based on more recent data. Interested parties can access the complete Issues and Decision Memorandum through the Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic System (ACCESS), providing transparency regarding the specific issues addressed and methodologies employed in reaching these determinations.

Key Takeaways:

• The U.S. Department of Commerce has imposed a 2.34% antidumping duty on most Korean steel nail exporters while exempting Korea Wire Co., Ltd. with a 0% rate.

• The investigation covered steel nail imports during July 2022 through June 2023, with final results published after multiple deadline extensions.

• This determination represents ongoing trade enforcement efforts to address alleged unfair pricing practices, with potential implications for the broader U.S.-Korea trade relationship in steel products.