In response to a submission from Lumber Liquidators that argued to the contrary, the Department of Commerce (DOC) ruled that L-cleat fasteners commonly used by the flooring industry are within the scope of a new antidumping investigation focused on steel nails from China, known as the “Nails PRC AD Order.”
Depending on the finalization of the antidumping order by the International Trade Commission and rates established by the DOC, this specific ruling could eventually significantly increase the cost of L-cleats and other types of nails from China.
The issue being debated was if L-cleat nails could be classified as "brad nails," which are specifically excluded from the scope of the case.
Lumber Liquidators provided a number of technical notes regarding the L-cleat's manufacturing process that they felt would define the nail as a "brad." They also noted it was a type of nail that provided specific value to the flooring industry, stating that "the ultimate purchaser of the L-Cleat Brads expects these nails to be used to install hardwood flooring without splitting the flooring board, lie under the surface of the flooring board, and hold the flooring in place to the sub-floor."
Carolina Nail Systems and Powernail Company Inc. both submitted comments to the DOC disagreeing with Lumber Liquidators’ position. Powernail specifically mentioned Lumber Liquidators, saying the company’s claim that the L-cleat brads are not covered by the antidumping order was an attempt “by importers to avoid paying antidumping duties by misclassifying these nails.”
As part its explanation for the ruling, the DOC stated that L-cleats "have physical characteristics similar to ‘cleat’ and ‘toothed nails’ and do not have physical characteristics similar to ‘brad’ nails" and are therefore included within the scope.
