US DOC’s preliminary AD decision hits Chinese drill pipe with huge margins

Monday, 09 August 2010 15:48:55 (GMT+2)

On August 6, the US Department of Commerce (DOC) announced in the Federal Register the preliminary affirmative results in the antidumping (AD) duty investigation of imports of drill pipe from China.

The DOC preliminarily determined that Chinese producers/exporters of drill pipe have sold drill pipe in the United States at margins ranging between 0.00 (de minimis) and 429.29 percent.

The specific margins are as following:

DP Master Manufacturing Co., Ltd. (DP Master)                206 percent

Baoshan Iron & Steel Co., Ltd. (Baoshan)                       7.64 percent

Shanxi Yida Special Steel Imp. & Exp. Co., Ltd.                0 percent (de minimus)

Shanxi Fenglei Drilling Tools Co., Ltd.                             106.82 percent

Jiangsu Shuguang Huayang Drilling Tool, Co. Ltd.             106.82 percent

Jiangyin Long-Bright Drill Pipe Manufacturing Co. Ltd.        106.82 percent

China Wide                                                                  429.29 percent

The petitioners for this investigation are: VAM Drilling USA, Inc.; Texas Steel Conversions, Inc.; Rotary Drilling Tools; TMK IPSCO; and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO-CLC.

The subject products are currently classified in the following Harmonized Tariff Schedule of the United States (HTSUS) categories: 7304.22.0030, 7304.22.0045, 7304.22.0060, 7304.23.3000, 7304.23.6030, 7304.23.6045, 7304.23.6060, 8431.43.8040 and may also enter

under 8431.43.8060, 8431.43.4000, 7304.39.0028, 7304.39.0032, 7304.39.0036, 7304.39.0040, 7304.39.0044, 7304.39.0048, 7304.39.0052, 7304.39.0056, 7304.49.0015, 7304.49.0060, 7304.59.8020, 7304.59.8025, 7304.59.8030, 7304.59.8035, 7304.59.8040, 7304.59.8045, 7304.59.8050, and 7304.59.8055.

Prior to February 2, 2007, these imports entered under different tariff classifications, including 7304.21.3000, 7304.21.6030, 7304.21.6045, and 7304.21.6060.

As SteelOrbis previously reported, the US DOC preliminarily determined that Chinese exporters of drill pipe have received a subsidy rate of 15.72 percent. On June 21 this year, the US DOC announced its decision to align the final determinations of the countervailing duty (CVD) and AD administrative reviews for drill pipe from China.

The DOC is currently scheduled to make its final determination in December 2010. If the final determination is affirmative, the US International Trade Commission is expected to make an injury determination.

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