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Commerce Delivers Mixed Preliminary Ruling on Welded Steel Pipe from Multiple Countries
03/28/2012 - The Department of Commerce announced its affirmative preliminary determinations in the countervailing duty (CVD) investigations of imports of circular welded carbon-quality steel pipe from India and Vietnam, and its negative preliminary determinations in the CVD investigations of imports of such steel pipe from Oman and the United Arab Emirates.
The Department of Commerce announced its affirmative preliminary determinations in the countervailing duty (CVD) investigations of imports of circular welded carbon-quality steel pipe from India and the Socialist Republic of Vietnam, and its negative preliminary determinations in the CVD investigations of imports of such steel pipe from the Sultanate of Oman and the United Arab Emirates (UAE).
Commerce preliminarily determined that Indian and Vietnamese producers/exporters have received countervailable subsidies of 285.95%, and 0.04 to 8.06%, respectively.
In the India investigation, mandatory respondents Zenith Birla (India) Ltd. and Lloyds Metals and Engineers Ltd. both received preliminary net subsidy rates of 285.95%, based on the application of adverse facts available. All other Indian producers/exporters also received a preliminary net subsidy rate of 285.95%.
In the Oman investigation, mandatory respondent Al Jazeera Tube Mills Co. SAOG received a preliminary net subsidy rate of 0.12%, resulting in a preliminary negative determination for Oman.
In the UAE investigation, Commerce found that mandatory respondents Universal Tube and Plastic Industries, Ltd. and Abu Dhabi Metal Pipes and Profiles Industries Complex LLC did not benefit from countervailable subsidies. This results in a preliminary negative determination for the UAE.
In the Vietnam investigation, mandatory respondents SeAH Steel Vina Corp. and Vietnam Haiphong Hongyuan Machinery Manufactory Co., Ltd. received preliminary net subsidy rates of 0.04%, and 8.06%, respectively. All other Vietnamese producers/exporters received a preliminary net subsidy rate of 8.06%.
As a result of the preliminary affirmative determinations for India and Vietnam, Commerce will instruct U.S. Customs and Border Protection (CBP) to collect a cash deposit or bond based on these preliminary rates. Because of the negative preliminary determinations, no cash deposit or bond will be required for imports from Oman and the UAE.
The petitioners for these investigations are Allied Tube and Conduit (Ill.), JMC Steel Group (Ill.), Wheatland Tube (Pa.), and United States Steel Corp. (Pa.).
The merchandise covered by these investigations is welded carbon-quality steel pipes and tube, of circular cross-section, with an outside diameter not more than 16 inches. In 2011, imports of such steel pipe from India, Oman, the UAE, and Vietnam were valued at an estimated $64.5 million, $28.1 million, $53.9 million, and $50.1 million, respectively.
Commerce has aligned the CVD investigations with the concurrent antidumping duty investigations, and is currently scheduled to make its final determinations in August 2012.
