New US antidumping (AD) duty petitions were filed on January 17 against imports of large diameter welded pipe from Canada, Greece, India, China, South Korea and Turkey. In addition, countervailing duty (CVD) petitions alleging unfair government subsidies were filed against imports from China, India, Korea and Turkey.
The pipe subject to the investigations is a circular pipe more than 609.6 mm (24 inches) in outside diameter, regardless of wall thickness, length, surface finish or end finish. In the United States, line pipe is generally produced in lengths of 40 feet or greater, and with either a bare finish or a black (lacquered) finish to protect the pipe from rust. Large diameter welded pipe may be produced using a variety of grades of steel, but most common are X60, X65 and X70. Large diameter welded pipe is used for the conveyance of gas, oil and other liquids, generally in a pipeline or utility distribution system.
The Department of Commerce and the International Trade Commission (ITC) will next determine whether to launch AD and/or CVD duty and injury investigations, respectively, on these products. Commerce will be responsible for calculating the ultimate AD/CVD margins on the imports, while the ITC will conduct a concurrent investigation to determine if the imports are injuring the U.S. industry. If Commerce finds dumping or unfair subsidization in its preliminary determinations, currently scheduled for April 12, 2018 (CVD) and June 26 2018 (AD), importers will be charged the calculated duties upon the products’ entry in the U.S. market.
There are strict statutory deadlines associated with these proceedings and affected companies are advised to prepare as soon as possible. If this product is of interest to you, please let us know so that we can provide you with additional information as it becomes available.
The following are key facts about this trade case:
Petitioner: Berg Steel Pipe Corp.; Berg Spiral Pipe Corp.; Dura-Bond Industries; Stupp Corporation; American Cast Iron Pipe Company; Skyline Steel.
Foreign Producers/Exporters and US Importers: Please contact us for a listing of individual companies named in the petition.
Alleged AD and CVD margins: Petitioners have alleged the following AD margins
- Canada: 53.01 percent
- China: 138.61 percent
- Greece: 25.69 percent
- India: 50.55 percent
- Korea: 23.52 percent
- Turkey: 27.83 percent
Petitioners have also alleged CVD margins above de minimis based on various subsidy programs from the governments of China, India, Korea and Turkey.
Merchandise covered by the scope of the case: The merchandise covered by this investigation is welded carbon and alloy steel pipe, more than 406.4 mm (16 inches) in nominal diameter (large diameter welded pipe), regardless of wall thickness, length, surface finish, grade, end finish, or stenciling. Large diameter welded pipe may be used to transport oil, gas, slurry, steam, or other liquids. It may also be used for structural purposes, including piling. Specifically not included is large diameter welded pipe produced specifically to specifications of the American Water Works Association (“AWWA”) for water and sewage pipe.
Large diameter welded pipe used to transport oil, gas, or natural gas liquids is normally produced to the American Petroleum Institute ("API'') specification SL. Large diameter welded pipe may also be produced to American Society for Testing and Materials ("ASTM") standards ASOO, A252, or A53. Large diameter welded pipe can be produced to comparable foreign specifications or to proprietary grades, or can be non-graded material. All pipe meeting the physical description set forth above is covered by the scope of these investigations, whether or not produced according to a particular standard.
Subject merchandise also includes large diameter welded pipe that has been further processed in a third country, including but not limited to coating, painting, notching, beveling, cutting, punching, welding, or any other processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the in-scope large diameter welded pipe.
Large diameter welded pipe is currently classified under the following Harmonized Tariff Schedule ("HTS") subheadings: 7305 .11.1030, 7305.11.1060, 7305.11.5000, 7305.12.1030, 7305.12.1060, 7305.12.5000, 7305.19.1030, 7305.19.1060, 7305.19.5000, 7305.31.4000, 7305.31.6090, 7305.39.1000 and 7305.39.5000. These HTSUS subheadings are provided for customs purposes; the written description of the scope of this investigation is dispositive.