The Department of Commerce (Commerce) Tuesday announced its affirmative final determinations in the antidumping duty (AD) investigations of imports of welded line pipe from the Republic of
Korea (
Korea) and the Republic of
Turkey (
Turkey) and the countervailing duty (CVD) investigation of imports of welded line pipe from
Turkey. On this same date, Commerce also announced its negative final determination in the CVD investigation of imports of welded line pipe from
Korea.
The AD and CVD laws provide U.S. businesses and workers with a transparent and internationally accepted mechanism to seek relief from the market-distorting effects caused by injurious dumping and unfair subsidization of imports into the United States, establishing an opportunity to compete on a level playing field.
For the purpose of AD investigations, dumping occurs when a foreign company sells a product in the United States at less than its fair value. For the purpose of CVD investigations, countervailable subsidies are financial assistance from foreign governments that benefit the production of goods from foreign companies and are limited to specific enterprises or industries, or are contingent either upon export performance or upon the use of domestic goods over imported goods.
Commerce determined that imports of welded line pipe from
Korea and
Turkey have been sold in the United States at dumping margins ranging from 2.53 percent to 6.19 percent and 6.66 percent to 22.95 percent, respectively.
Commerce also determined that imports of welded line pipe from
Turkey have received countervailable subsidies ranging from 1.31 percent to 152.20 percent (the latter based on adverse facts available due to the respondent’s lack of participation during verification). Commerce calculated de minimis final subsidy rates for imports of welded line pipe from
Korea.
In the
Korea AD investigation, mandatory respondents SeAH Steel Corporation and Hyundai HYSCO received final dumping margins of 2.53 percent and 6.19 percent, respectively. All other producers/exporters in
Korea received a final dumping margin of 4.36 percent.
In the
Turkey AD investigation, mandatory respondents Borusan Istikbal Ticaret and Borusan Mannesmann Boru Sanayi ve Ticaret A.S. received a final dumping margin of 22.95 percent. Cayirova Boru Sanayi ve Ticaret A.S./Yucel Boru Ithalat-Ihracat ve Pazarlama A.S. and Toscelik Profil ve Sac Endustrisi A.S./Tosyali Dis Ticaret A.S. received final dumping margins of 22.95 percent and 6.66 percent, respectively. All other producers/exporters in
Turkey received a final dumping margin of 7.10 percent.
In the
Korea CVD investigation, mandatory respondents NEXTEEL Co. Ltd. and SeAH Steel Corporation received final subsidy rates of 0.28 percent and 0.44 percent, respectively. These rates are considered de minimis under U.S. law, resulting in a negative final determination that applies to the country as a whole.
In the
Turkey CVD investigation, mandatory respondent Tosyali Dis Ticaret A.S. received a final subsidy rate of 1.31 percent. Mandatory respondent Borusan Mannesmann Boru Sanayi ve Ticaret A.S. received a final subsidy rate of 152.20 percent, based on an adverse facts available finding due to its lack of participation during verification. All other producers/exporters in
Turkey have been assigned a final subsidy rate of 1.31 percent.
As a result of the final affirmative AD determinations, Commerce will instruct U.S. Customs and Border Protection (CBP) to collect cash deposits equal to the applicable weighted-average dumping margins. Further, as a result of the affirmative final
Turkey CVD determination, if the U.S. International Trade Commission (ITC) issues an affirmative injury determination, Commerce will order the resumption of the suspension of liquidation and require a cash deposit for CVD duties equal to the final subsidy rates for the mandatory respondents and all other producers and exporters not selected for investigation; we will also adjust the
Turkey AD cash deposit rates by the amount of the CVD export subsidies, where appropriate. If the ITC issues negative injury determinations, these investigations will be terminated and no producers or exporters will be subject to future cash deposits for either AD or CVD duties. In such an event, all cash deposits already collected will be refunded.
As a result of the negative CVD final determination for
Korea, the
Korea CVD investigation is terminated and no Korean producers or exporters will be subject to cash deposits for CVD duties.
The petitioners for these investigations are: American Cast Iron Pipe Company (AL); Energex, a division of JMC Steel Group (IL); Maverick Tube Corporation (TX); Northwest Pipe Company (WA); Stupp Corporation, a division of Stupp Bros., Inc. (LA); Tex-Tube Corporation (TX); TMK IPSCO (TX); and Welspun
Tubular LLC USA (AR).
The merchandise covered by these investigations is circular welded carbon and alloy steel (other than stainless steel) pipe of a kind used for oil or gas pipelines (welded line pipe), not more than 24 inches in nominal outside diameter, regardless of wall thickness, length, surface finish, end finish, or stenciling. Welded line pipe is normally produced to the American Petroleum Institute (API) specification 5L, but can be produced to comparable foreign specifications, to proprietary grades, or can be non-graded material. All pipe meeting the physical description set forth above, including multiple-stenciled pipe with an API or comparable foreign specification line pipe stencil is covered by the scope of these investigations.
The welded line pipe that is subject to these investigations is currently classifiable in the Harmonized Tariff Schedule of the United States (HTSUS) under subheadings 7305.11.1030, 7305.11.5000, 7305.12.1030, 7305.12.5000, 7305.19.1030, 7305.19.5000, 7306.19.1010, 7306.19.1050, 7306.19.5110, and 7306.19.5150. The subject merchandise may also enter in HTSUS subheadings 7305.11.1060 and 7305.12.1060. While the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of these investigations is dispositive.
In 2014, imports of welded line pipe from
Korea and
Turkey were valued at an estimated $543.6 million and $94.7 million, respectively.