The Ukrainian Interdepartmental Commission on International Trade (MKMT) has determined that imports of seamless and OCTG pipes in the 2004-2006 period harmed the Ukrainian domestic pipe industry and has decided to introduce a quota for imports of seamless and OCTG pipes, regardless of the product origin, for a period of three years.
The quota will be effective as of October 1, 2008 and will total 14,540 mt for the period October 1, 2008 through October 1, 2009. The quota will then increase by five percent to 15,230 mt for the period from October 1, 2009 through October 1, 2010, and finally by 10 percent to 15,955 mt for the period covering October 1, 2010 through October 1, 2011.
The major part of the quota in question will be allocated for imports from Russia - 10,311 mt in the first year, 10,827 mt in the second year and 11,342 mt in the third year. The rest of the quota for the first year will be allocated to Austria - 2,125 mt, Poland - 955 mt, Romania - 181 mt, Slovakia - 148 mt, India - 63 mt, China - 42 mt, and all others - 679 mt.
The initial investigation was started based on a complaint filed by Ukrainian pipe producers Interpipe Nikopolskiy Tube Plant and Interpipe Nikopolskiy Seamless Pipe Plant Niko Tube. Upon consideration of the producers' submissions, the MKMT decided that the evidence was sufficient for the opening of a safeguard investigation into imports of seamless OCTG with outside diameter not exceeding 406.4 mm. The product in question falls under HS Code 7304 29 11 00.