On September 9, the US Department of Commerce (DOC) announced its affirmative preliminary determination in the countervailing duty investigation on imports of certain oil country tubular goods (OCTG) from China.
Accordingly, the DOC preliminarily found that Chinese producers/exporters of OCTG have received net countervailable subsidies ranging from 10.90 to 30.69 percent. Mandatory respondents Jiangsu Changbao Steel Tube Co., Ltd., Tianjin Pipe (Group) Co., Wuxi Seamless Pipe Co., Ltd., and Zhejiang Jianli Enterprise Co., Ltd. received preliminary subsidy rates of 24.33, 10.90, 24.92, and 30.69 percent, respectively. All other Chinese producers/exporters received a preliminary subsidy rate of 21.33 percent.
As a result of this preliminary determination, the DOC will instruct US Customs and Border Protection to collect a cash deposit or bond based on these preliminary rates.
From 2006 to 2008, US imports of OCTG from China increased 203 percent by volume and were valued at an estimated $2.6 billion in 2008.
The DOC is currently scheduled to issue its final determination in November 2009. If the DOC makes an affirmative final determination and the US International Trade Commission makes an affirmative final determination that imports of OCTG from China materially injure, or threaten material injury to, the US domestic industry, then the DOC will issue a countervailing duty order.