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Commerce Finds Unfair Dumping, Subsidization of Seamless Pipe from China

The Department of Commerce announced on Sept. 13 its affirmative final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations on imports of seamless carbon and alloy steel standard, line, and pressure pipe (seamless pipe) from P.R. China.
 
Commerce determined that the Chinese producers/exporters have sold seamless pipe in the United States at margins ranging from 48.99 to 98.74%. It also determined that Chinese producers/exporters have received net countervailable subsidies ranging from 13.66 to 53.65%.
 
In the AD investigation, Chinese mandatory respondents Tianjin Pipe International Economic and Trading Corp. and Tianjin Pipe (Group) Corp. (collectively, TPCO), and Hengyang Steel Tube Group Int’l Trading Inc., Hengyang Valin Steel Tube Co., Ltd., Hengyang Valin MPM Tube Co., Ltd. (collectively “Hengyang”) received final dumping rates of 48.99 and 82.03%, respectively.
 
Five Chinese producers/exporters qualified for a separate rate of 65.51%. All other
Chinese producers/exporters received the China-wide dumping rate of 98.74%.
 
In the CVD investigation, Chinese mandatory respondent, TPCO, received a final net subsidy rate of 13.66%. The other mandatory respondent, Hengyang, received a final net subsidy rate of 53.65%. All other Chinese producers/exporters received a net subsidy rate of 33.66%.
 
Commerce also determined in the CVD case that critical circumstances exist for all producers/exporters of seamless pipe from China except for TPCO. In the AD case, Commerce determined that critical circumstances exist for one of the mandatory respondents, Hengyang, and the China-wide entity.
 
In the CVD case, for all producers/exporters of seamless pipe from China except for TPCO, Commerce is directing U.S. Customs and Border Protection (CBP) to apply the suspension of liquidation to any unliquidated entries entered, or withdrawn from warehouse for consumption, on or after December 1, 2009, which is 90 days prior to the date of publication of the preliminary determination notice in the Federal Register.
 
In the AD case, for Hengyang and the China-wide entity, Commerce is directing CBP to apply the suspension of liquidation to any unliquidated entries entered, or withdrawn from warehouse for consumption, on or after January 28, 2010.
 
As a result of the final AD determination, Commerce will instruct CBP to collect a cash deposit or bond on imports of seamless pipe based on the final AD rates. Cash deposits of countervailing duties on imports of seamless pipe will not be required unless the U.S. International Trade Commission (ITC) reaches a final determination that the U.S. industry is being injured by imports of seamless pipe from China. This is because the maximum period for the collection of provisional measures in the CVD investigation has expired.
 
Petitioners for this investigation are the United States Steel Corp. (Pa.), V&M Star LP (Texas), TMK Ipsco (Ill.), and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (Pa.).
 
Imports of seamless pipe from China were valued at an estimated $182.3 million in 2009.
 
The ITC is scheduled to issue its final determinations on or about October 25, 2010. If it makes affirmative determinations that imports of seamless pipe from China materially injure, or threaten material injury to, the domestic industry, Commerce will issue AD and CVD orders. If the ITC makes negative injury determinations, the investigations will be terminated.