On Wednesday, February 24, the US Department of Commerce (DOC) announced the preliminary results of its countervailing duty (CVD) administrative review for certain seamless carbon and alloy steel standard, line and pressure pipe from China. The pipes are used in chemical, petrochemical and refinery plants
The DOC came to the conclusion that mandatory respondents Hengyang and TPCO should receive preliminary net subsidy rates of 12.97 and 11.06 percent respectively. All other Chinese exporters will receive a preliminary net subsidy rate of 12.02 percent.
Additionally, the DOC preliminarily determined that ‘critical circumstances' exist for all producers/exporters of seamless pipe from China except for TPCO.
In early January this year, US Steel, along with other petitioning parties in the ongoing AD and CVD investigations relating to the product mentioned, made an allegation of critical circumstances in the proceeding. The petitioners allege that Chinese imports of seamless standard line and pressure pipe increased by more than 290 percent in the three months after the filing of the AD and CVD petitions, as compared to the three months prior to the filing.
The petitioners for the petition filed on September 16, 2009 are the United States Steel Corporation, V&M Star LP, TMK IPSCO, and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.
The US DOC is expected to make its final determination on May 10, 2010 while the US International Trade Commission's final determination is expected on June 22, 2010, provided there is an affirmative final determination by the US DOC.
The merchandise covered by the investigation is currently classified in the Harmonized Tariff
Schedule of the United States (HTSUS) under item numbers: 7304.19.1020, 7304.19.1030, 7304.19.1045, 7304.19.1060, 7304.19.5020, 7304.19.5050, 7304.31.6050, 7304.39.0016, 7304.39.0020, 7304.39.0024, 7304.39.0028, 7304.39.0032, 7304.39.0036, 7304.39.0040, 7304.39.0044, 7304.39.0048, 7304.39.0052, 7304.39.0056, 7304.39.0062, 7304.39.0068, 7304.39.0072, 7304.51.5005, 7304.51.5060, 7304.59.6000, 7304.59.8010, 7304.59.8015, 7304.59.8020, 7304.59.8025, 7304.59.8030, 7304.59.8035, 7304.59.8040, 7304.59.8045, 7304.59.8050, 7304.59.8055, 7304.59.8060, 7304.59.8065, and 7304.59.8070.