US DOC preliminarily determines subsidy on Chinese rectangular tube

The US Department of Commerce (DOC) preliminarily determined on November 27 in its countervailing duty investigation against Chinese tubes that China provides unfair subsidies to its domestic manufacturers of light-walled rectangular tubes.

The Department of Commerce preliminarily determined that Chinese producers/exporters received net countervailable subsidies ranging from 0.27 (de minimis) percent to 77.85 percent. As a result of this preliminary determination, the DOC will instruct U.S. Customs and Border Protection to collect a cash deposit or bond based on these preliminary rates.

The petitioners for this investigation are Allied Tube & Conduit Corp. (IL); Atlas Tube (MI); Bull Moose Tube Company (MO); California Steel and Tube (CA); EXLTUBE (MO); Hannibal Industries (CA); Leavitt Tube Company LLC (IL); Maruichi American Corp. (CA); Searing Industries (CA); Southland Tube (AL); Vest, Inc. (CA); Welded Tube; and Western Tube and Conduit (CA).

The merchandise covered by this investigation is certain welded carbon quality light-walled steel pipe and tube, of rectangular (including square) cross section, having a wall thickness of less than 4 mm. Rectangular pipe can be used for fencing, window guards, and as railing for the construction industry. It is not used for the conveyance of liquid or gas.

From 2004 to 2006, imports of rectangular pipe from China to the US increased nearly 840 percent by volume, and were valued at an estimated $44.1 million in 2006.

The Department of Commerce is scheduled to make its final determination on April 7, 2008. After that, if the U.S. International Trade Commission (ITC) also determines that Chinese imports materially injure or threaten the domestic industry, then the Department of Commerce will impose a countervailing duty.

The Preliminary Countervailable Subsidy Rates are as follows:

Import statistics