Domestic Producers Respond to Duties for Chinese Welded Pipe Producers
01/07/2008 - U.S. pipe makers and the United Steelworkers respond to the preliminary finding by the U.S. Department of Commerce that Chinese producers of circular welded pipe are dumping below-cost product in the United States.
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Pipe imports subject to the petition against China surged from 10,000 tons in 2002 to more than 750,000 tons in 2007, a 6900% increase.
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Based on its findings, the Commerce Department will impose antidumping duties on China pipe exports at an average rate of 25.67%, with individual company margins ranging from zero to 51.34%.
Once the new tariffs are published in the Federal Register, typically within five days, importers will be required to post bonds in the amount of the dumping margins calculated by the Department. The Department of Commerce has also applied critical circumstances, determining that this duty could be applied retroactively by 90 days.
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Ad Hoc Coalition members include:
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The trade suit, filed on June 7, 2007 in parallel with the International Trade Commission (ITC) and the Department of Commerce, was brought by the Ad Hoc Coalition for Fair Pipe Imports from China and the United Steelworkers. On July 20, 2007, the ITC found that circular welded pipe from China is causing material injury to the U.S. industry.
“This is an important decision today for domestic pipe and steel workers,” said Leo W. Gerard, USW President. “We have seen significant layoffs in the pipe and tube industry as a result of skyrocketing China imports. Chinese producers sell at prices that vastly undercut U.S. companies meaning lost sales, lost jobs, and closed facilities. The ripple effects are enormous, as thousands of steel jobs have also been lost in the mills that supply steel to the pipe and tube producers, particularly in the Ohio Valley.”
Gilbert B. Kaplan, a partner at King & Spalding, one of the law firms representing the pipe makers, said, “We are gratified that the Department of Commerce recognized the significant unfair trade practices engaged in my the Chinese pipe producers. These duties should have an important effect on the strength of the United States pipe industry.”
“This is an important day for the U.S. pipe industry and its workers, which until now has been forced to compete against dumped imports,” added Roger Schagrin, of Schagrin Associates, who is also representing the petitioners. “Today’s decision is an important first step in the process of obtaining trade relief against unfairly traded imports from China.”
After the Department of Commerce makes final determinations in both the antisubsidy duty and antidumping duty investigations, the U.S. International Trade Commission is scheduled to complete its final investigation in the spring of 2008.
The new antidumping duties will be applied in addition to antisubsidy duties that were imposed by the Commerce Department on November 6, 2007, when it was determined that the government of China was illegally subsidizing Chinese pipe makers.
