January 18, 2018

New Antidumping and Countervailing Duty Petitions on Large Diameter Welded Pipe from Canada, Greece, India, China, Korea and Turkey

By Douglas J. Heffner and Richard P. Ferrin

The American Line Pipe Producers Association (ALPPA) and its individual members, on January 17, 2018, filed antidumping (AD) petitions on large diameter welded pipe (LDWP) from Canada, Greece, India, China, Korea and Turkey, and countervailing duty (CVD) petitions on LDWP from India, China, Korea and Turkey. The individual ALPPA members that filed the petitions are Berg Steel Pipe Corp., Berg Spiral Pipe Corp., Dura-Bond Industries, Stupp Corporation, the American Cast Iron Pipe Company and Skyline Steel.

The U.S. AD law imposes special tariffs to counteract imports that are sold in the United States at less than “normal value.” The U.S. CVD law imposes special tariffs to counteract imports that are sold in the United States with the benefit of foreign government subsidies. For AD/CVD duties to be imposed, the U.S. government must determine not only that dumping and/or subsidies are occurring, but also that there is “material injury” (or threat thereof) by reason of the dumped and/or subsidized imports. Importers are liable for any potential AD/CVD duties imposed. In addition, these investigations could impact purchasers by increasing prices and/or decreasing supply of LDWP.

Scope

The merchandise covered by this investigation is welded carbon and alloy steel pipe, more than 406.4 mm (16 inches) in nominal diameter (large diameter welded pipe), regardless of wall thickness, length, surface finish, grade, end finish, or stenciling. Large diameter welded pipe may be used to transport oil, gas, slurry, steam, or other liquids. It may also be used for structural purposes, including piling. Specifically not included is large diameter welded pipe produced specifically to specifications of the American Water Works Association (“AWWA”) for water and sewage pipe.

Large diameter welded pipe used to transport oil, gas, or natural gas liquids is normally produced to the American Petroleum Institute (“API”) specification 5L. Large diameter welded pipe may also be produced to American Society for Testing and Materials (“ASTM”) standards A500, A252, or A53. Large diameter welded pipe can be produced to comparable foreign specifications or to proprietary grades, or can be non-graded material. All pipe meeting the physical description set forth above is covered by the scope of these investigations, whether or not produced according to a particular standard.

Subject merchandise also includes large diameter welded pipe that has been further processed in a third country, including but not limited to coating, painting, notching, beveling, cutting, punching, welding, or any other processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the in-scope large diameter welded pipe.

Subject large diameter welded pipe is normally entered under HTSUS 7305.11.1030, 7305.11.1060, 7305.11.5000, 7305.12.1030, 7305.12.1060, 7305.12.5000, 7305.19.1030, 7305.19.1060, 7305.19.5000, 7305.31.4000, 7305.31.6090, 7305.39.1000, and 7305.39.5000. The HTSUS subheadings and specifications are provided for convenience and customs purposes; the written description of the scope is dispositive.

Alleged Dumping Margins

The petitioners allege that the following dumping margins exist:

  • China: 138.61 percent
  • Korea: 23.52 percent
  • Turkey: 27.83 percent
  • Canada: 53.01 percent
  • Greece: 25.69 percent
  • India: 50.55 percent

Estimated Schedule of Investigations

  • January 17, 2018 – Petition is filed
  • February 6, 2018 – DOC initiates investigation
  • February 7, 2018 – ITC staff conference
  • March 5, 2018 – Deadline for ITC preliminary injury determinations
  • April 12, 2018 – Deadline for DOC preliminary CVD determinations, if not postponed
  • June 18, 2018 – Deadline for DOC preliminary CVD determinations, if fully postponed
  • June 26, 2018 – Deadline for DOC preliminary AD determinations, if not postponed
  • August 15, 2018 – Deadline for DOC preliminary AD determinations, if fully postponed
  • December 28, 2018 – Deadline for DOC final AD and CVD determinations, if both preliminary and final AD determination deadlines are fully postponed and the CVD final determinations are aligned
  • February 11, 2019 – Deadline for ITC final injury determinations, assuming fully postponed DOC deadlines

For further information, contact one of the authors below, or any other member of the Customs and International Trade Team.

The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.

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