Texas pipeline operator denied tariff exemption for $1.1 billion project

Wednesday, 18 July 2018 23:15:07 (GMT+3)   |   San Diego
       

Pipeline operator Plains All American Pipeline LP was denied an exclusion to the 25 percent import tariff on steel for its $1.1 billion project in Texas.

The US Department of Commerce (DOC) reportedly denied the request on the basis that suitable product is available from domestic producers. An issue for the company is that the specific product was ordered from Greece prior to the implementation of the tariffs and is in transit and arriving for the Cactus II 550 mile (885 km) project.

Karen Rugaard, a Plains spokesperson, criticized the exemption process as it “is flawed and does not allow for applicant to effectively engage” as it relies on unsubstantiated comments and inclusion of undisclosed data. Additionally, the pipeline material was ordered prior to the implementation of the import tariffs. Berg Steel Pipe Corp in Florida was instrumental in opposing the exclusion request. The company is continuing plans with steel from Greece, although the increase in project costs has not been disclosed.

According to the DOC, 26,400 exclusion applications have been submitted with about 3,385 rejected due to improper completion, 267 requests approved and 452 requested denied as of July 16.


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