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Commerce Finds Dumping, Subsidization of Welded Stainless Pipe from P.R. China

01/26/2009 - The Department of Commerce makes affirmative final determinations in the antidumping and countervailing duty investigations on imports of welded austenitic stainless pressure pipe from P.R. China.

The Department of Commerce has made an affirmative final determinations in the antidumping (AD) and countervailing duty (CVD) investigations on imports of circular welded austenitic stainless pressure pipe (stainless pressure pipe) from P.R. China.

Dumping occurs when a foreign company sells a product in the United States at less than normal value.
 
Subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods.

According to Commerce, Chinese producers/exporters have sold stainless pressure pipe in the United States from 10.53 to 55.21% less than normal value, and they also have received net countervailable subsidies ranging from 1.10 to 299.16%.
 
In the antidumping investigation, Winner Machinery Enterprise Co., Ltd., the sole participating respondent, received a final dumping rate of 55.21%. In addition, Zhejiang Jiuli Hi-Tech Metals Co., Ltd. received a separate rate of 10.53%.
 
All other Chinese producers/exporters received the China-wide rate of 55.21% based on adverse facts available. Commerce’s practice is to select the highest margin in the investigation as adverse facts available. Because the highest margin in this case is that of the sole respondent, Winner Machinery Enterprise, it is also the China-wide rate.
 
In the countervailing duty investigation, Winner Machinery Enterprise, again the sole participating respondent, received a final subsidy rate of 1.10%. Froch Enterprise Co. Ltd. received a final subsidy rate of 299.16% based on adverse facts available, as this company failed to cooperate. All other Chinese exporters received a final subsidy rate of 1.10%.
 
As a result of the final antidumping duty determination, Commerce will instruct U.S. Customs and Border Protection to continue to suspend liquidation of entries of subject merchandise and to collect a cash deposit or bond based on the final rates. For purposes of countervailing duties, suspension of liquidation will only resume if the U.S. International Trade Commission (ITC) issues an affirmative injury finding and Commerce issues a countervailing duty order.
 
Petitioners for these investigations are Bristol Metals, L.P. (Tenn.), Felker Brothers Corp. (Wis.), Marcegaglia USA, Inc. (Pa.), Outokumpu Stainless Pipe, Inc. (Ill.), and the United Steelworkers of America (Pa.).
 
The U.S. International Trade Commission is scheduled to issue its final injury determination on or before March 2. If the ITC makes an affirmative determination that imports of stainless pressure pipe from China materially injure, or threaten material injury to, the domestic industry, Commerce will issue antidumping and countervailing duty orders; otherwise, the investigations will be terminated.
 
Product covered by these investigations is stainless pressure pipe, a commodity product generally used as a conduit for liquids or gasses. This pipe, which is not greater than 14 inches in outside diameter, includes, but is not limited to, ASTM A-312 or ASTM A-778 specifications, or comparable domestic or foreign specifications.
 
Excluded from the scope are: (1) welded stainless mechanical tubing, meeting ASTM A-554 or comparable domestic or foreign specifications; (2) boiler, heat exchanger, superheater, refining furnace, feedwater heater, and condenser tubing, meeting ASTM A-249, ASTM A-688 or comparable domestic or foreign specifications; and (3) specialized tubing, meeting ASTM A-269, ASTM A-270 or comparable domestic or foreign specifications.