Commerce Finds Unfair Dumping, Subsidization of Rectangular Pipe from Three Countries
06/20/2008 - The U.S. Department of Commerce has announced its affirmative final determinations in the antidumping duty investigations on imports of light-walled rectangular pipe and tube from Mexico, P.R. China, and the Republic of Korea, and the countervailing duty investigation of this product from P.R. China.
The U.S. Department of Commerce has announced its affirmative final determinations in the antidumping duty (AD) investigations on imports of light-walled rectangular pipe and tube from Mexico, P.R. China, and the Republic of Korea, and the countervailing duty (CVD) investigation of this product from P.R. China.
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Dumping is 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.
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Commerce determined that Chinese, Korean, and Mexican producers/exporters have sold rectangular pipe in the United States at 249.12 to 264.64%, 1.30 (de minimis) to 30.66%, and 2.92 to 11.50% less than normal value, respectively. Commerce also determined that Chinese producers/exporters received net countervailable subsidies ranging from 2.17 to 200.58%.
The final dumping margin for Kukje Steel Co. Ltd., a mandatory respondent in the Korea investigation, is based on adverse facts available as this company did not cooperate to the best of its ability in this investigation. Five companies in the Mexico investigation and eight additional companies in the Korea investigation received rates of 11.50 and 30.66%, respectively, based on total adverse facts available because they failed to respond to requests for quantity and value information. The final AD margin for the Chinese exporter/producer Zhangjiagang Zhongyuan Pipe-Making Co., Ltd., and the final CVD rate for Chinese exporter/producer Qingdao Xiangxing Steel Pipe Co., Ltd., are also based on adverse facts available because these companies did not cooperate to the best of their ability in these investigations.
Additionally, in the China AD investigation, Commerce determined that critical circumstances exist solely for the China-wide entity.
As a result of these final antidumping determinations, Commerce will instruct U.S. Customs and Border Protection to continue to collect a cash deposit or bond based on the final rates (except when de minimis, where no cash deposit or bond will be required). Suspension of liquidation will only resume for purposes of countervailing duties if the U.S. International Trade Commission (ITC) issues an affirmative injury finding and Commerce issues a CVD order.
The U.S. International Trade Commission is scheduled to make its final injury determination on or about July 28. If the ITC makes affirmative determinations, Commerce will issue AD and CVD orders. If the ITC makes a negative injury determination, the investigations will be terminated.
Merchandise covered by these investigations includes welded rectangular carbon-quality light-walled steel pipe and tube with a wall thickness of less than 4 mm; these products are commonly used for fencing, window guards, and railing for the construction industry.
In 2007, imports of rectangular pipe from China were valued at an estimated $38 million; imports from Korea were valued at an estimated $10 million; and imports from Mexico were valued at an estimated $83 million.
Petitioners for these investigations are Allied Tube & Conduit Corp. (Ill.); Atlas Tube (Mich.); Bull Moose Tube Co. (Mo.); California Steel and Tube (Calif.); EXLTUBE (Mo.); Hannibal Industries (Calif.); Leavitt Tube Co. LLC (Ill.); Maruichi American Corp. (Calif.); Searing Industries (Calif.); Southland Tube (Ala.); Vest, Inc. (Calif.); Welded Tube (Canada); and Western Tube and Conduit (Calif.).
