Commerce finds Unfair Dumping, Subsidization of Welded Steel Pipe from China
06/02/2008 - The U.S. Department of Commerce finds that Chinese pipe exports are being dumped at rates ranging from 69.20 to 85.55%, and that Chinese pipe producers are being subsidized at rates ranging from 29.57 to 615.92%.
The U.S. Department of Commerce has announced its final affirmative findings regarding dumped and subsidized circular welded steel pipe imported from China. The findings are the result of full-scale antidumping and countervailing duty investigations.
The Commerce Department found that Chinese pipe exports are being dumped at rates ranging from 69.20 to 85.55%. In addition, the Commerce Department found that Chinese pipe producers benefit from illegal government subsidies at rates ranging from 29.57 to 615.92%. The average subsidy rate for all respondents is 37.22%.
As a result of the final antidumping duty determination, Commerce will instruct U.S. Customs and Border Protection (CBP) to continue to suspend liquidation of entries of the products and to collect a cash deposit or bond based on the final rates. Suspension of liquidation will only resume for purposes of countervailing duties if the International Trade Commission (ITC) issues an affirmative injury finding and Commerce issues a CVD order.
In the antidumping duty investigation, Commerce determined that critical circumstances exist for all producers/exporters of standard pipe from China. In the countervailing duty investigation, Commerce determined that critical circumstances exist for all producers/exporters of standard pipe from China except Weifang East Pipe Co., Ltd. The critical circumstances determination allows duties to be applied retroactively for 90 days from the dates of the preliminary determinations.
The ITC will vote on June 20, 2008, on whether the U.S. industry producing circular welded pipe is injured as a result of dumped and subsidized pipe from China. If the ITC issues an affirmative injury determination, Commerce will issue the antidumping and countervailing duty orders.
This investigation covers circular welded steel pipe products with an outside diameter of 0.372 inches up to 16 inches. These products, known generally as standard and structural pipe, are used in plumbing applications, HVAC systems, sprinkler systems, fencing, and construction.
The trade suit, filed in parallel with the International Trade Commission (ITC) and the Department of Commerce on June 7, 2007, was brought by the Ad Hoc Coalition for Fair Pipe Imports from China and the United Steelworkers. The Ad Hoc Coalition includes Allied Tube & Conduit, Ipsco Tubulars, Inc., Northwest Pipe Co., Sharon Tube Co., Western Tube & Conduit Corp., and Wheatland Tube Co.
According to the committee, imports of pipe and tube products covered in this investigation increased from 10,000 tons in 2002 to 750,000 tons in 2007—a 6900% increase. As a result of this surge in low-priced imports, U.S. producers lost market share and suffered decreases in profitability over the period investigated. The committee said that 500 American jobs—approximately 25% of the total workforce employed in this segment of the domestic pipe industry—have been lost since 2002 as a result of Chinese imports.
