The US Commerce Department on Wednesday announced its preliminary affirmative determination in the countervailing duty (CVD) investigation against imports of non-oriented electrical steel (NOES) from the Chinese mainland and Taiwan, signaling that it may pose punitive duties on the products.

The department said producers and exporters of NOES from the Chinese mainland had received countervailing subsidies of 125.83 percent, while producers and exporters from Taiwan had received countervailing subsidies from 6.41 percent to 12.82 percent.

As a result of the preliminary affirmative determinations, the Commerce Department will instruct US Customs and Border Protection to require cash deposits based on these preliminary rates.

The Commerce Department launched antidumping (AD) duty and CVD investigations against imports of NOES from the Chinese mainland and Taiwan in November 2013, in response to a request from AK Steel Corp based in the state of Ohio, a US steel producer. The department is scheduled to make its both final determinations in July 2014, unless the statutory deadline is extended.

Punitive duties would be imposed after both the Commerce Department and the US International Trade Commission (USITC) make affirmative final rulings. The USITC is scheduled to make its final determination in September 2014.

NOES is typically used in the production of large and small motors, generators, lighting ballasts and ignition coils. In 2013, imports of NOES from the Chinese mainland and Taiwan were at an estimated $11.9 million and $8.1 million respectively, according to the Commerce Department.

The Chinese Ministry of Commerce has repeatedly urged the United States to abide by its commitment against protectionism and work together with China and other members of the international community to maintain a free, open and just international trade environment.