The U.S. Department of Commerce has announced its affirmative preliminary determination in the countervailing duty (CVD) investigation on imports of seamless carbon and alloy steel standard, line, and pressure pipe from P.R. China.
Commerce preliminarily determined that Chinese producers/exporters have received net countervailable subsidies ranging from 11.06 to 12.97%. Mandatory respondents Hengyang and TPCO received preliminary net subsidy rates of 12.97 and 11.06%, respectively. All other Chinese exporters will receive a preliminary net subsidy rate of 12.02%.
As a result of this preliminary determination, Commerce will instruct U.S. Customs and Border Protection (CBP) to collect a cash deposit or bond based on these preliminary rates.
Commerce also preliminarily determined that critical circumstances exist for all producers/exporters of seamless pipe from China except for TPCO. Therefore, for those companies other than TPCO, Commerce is directing CBP to apply the suspension of liquidation to any unliquidated entries entered, or withdrawn from warehouse for consumption, on or after the date 90 days prior to the date of publication of the preliminary determination notice in the Federal Register.
Petitioners for this investigation are the United States Steel Corp., V&M Star LP, TMK IPSCO, and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.
The scope of this investigation consists of certain seamless carbon and alloy steel (other than stainless steel) pipes and redraw hollows, less than or equal to 16 in (406.4 mm) in outside diameter, regardless of wall thickness, manufacturing process (e.g., hot-finished or cold-drawn), end finish (e.g., plain end, beveled end, upset end, threaded, or threaded and coupled), or surface finish (e.g., bare, lacquered or coated).
Specifically included within the scope are seamless carbon and alloy steel (other than stainless steel) standard, line, and pressure pipes produced to ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-335, ASTM A-589, ASTM A-795, ASTM A-1024, and the API 5L specifications, or comparable specifications, and meeting the physical parameters just described.
Specifically excluded from the scope of the investigation are unattached couplings.
From 2006 to 2008, imports of seamless pipe from China increased 131.52% by volume and were valued at an estimated $382 million in 2008.
Commerce is currently scheduled to make its final determination on May 10, 2010. If it makes an affirmative final determination, and the U.S. International Trade Commission makes an affirmative final determination that imports of seamless pipe from China materially injure, or threaten material injury to, the domestic industry, Commerce will issue a CVD order.