U.S. finds unfair subsidies for large pipe imports

The American Line Pipe Producers Association is particularly pleased with Commerce’s “strong response” in its investigation of these imports from China and India.    The Commerce Department has made a preliminary determination that large diameter welded pipe exporters in China, India, South Korea and Turkey receive unfair government subsidies, causing harm to U.S. manufacturers of the same product.
   Countervailable subsidies generally are given by foreign governments to companies based on their export performance or use of domestic inputs over imports.
    In its China investigation, Commerce calculated a preliminary subsidy rate of 198.49 percent for Hefei Zijin Steel Tube Manufacturing Co., Hefei Ziking Steel Pipe and Panyu Chu Kong Steel Pipe Co. Ltd. The department applied a similar rate to all other Chinese pipe producers and exporters.
   In Commerce’s India investigation, it calculated a preliminary subsidy rate of 541.15 percent for Bhushan Steel and Welspun Trading Ltd. This same rate was applied to all other Indian producers and exporters of this product. 
   Commerce’s South Korea investigation resulted in a preliminary subsidy rate of 0.01 percent (de minimus) for Husteel Co. Ltd.; 0.44 percent (de minimis) for Hyundai Steel Co.; and 3.31 percent for SeAH Steel Corp. Commerce preliminarily calculated a rate of 3.31 percent for all other South Korean pipe producers and exporters.
   In the Turkey investigation, Commerce calculated a preliminary subsidy rate of 3.76 percent for HDM Celik Boru Sanayi ve Ticaret A.S. and 1.08 percent for Borusan Mannesmann Boru Sanayi ve Ticaret A.S. The department calculated a preliminary rate of 1.89 percent for all other Turkish pipe producers and exporters.
   Based on these affirmative preliminary determinations, Commerce will instruct Customs and Border Protection to require cash deposits based on the preliminary rates that are above de minimis.
   According to Commerce, imports of large diameter welded pipe from China, India, South Korea and Turkey in 2017 were valued at $29.2 million, $294.7 million, $150.9 million and $57.3 million, respectively.
   This type of pipe, which can measure more than 16 inches in diameter, is used for a variety of industrial purposes, including transport of oil, gas slurry, and steam, as well as for structural purposes, such as piling.
   Represented by the Washington, D.C.-based American Line Pipe Producers Association (ALPPA), the petitioners for the countervailing duty investigations include American Cast Iron Pipe Co. of Birmingham, Ala.; Berg Steel Pipe Corp. in Panama City, Fla.; Berg Spiral Pipe Corp. of Mobile, Ala.; Dura-Bond Industries in Steelton, Pa.; Greens Bayou Pipe Mill of Houston; JSW Steel (USA) Inc. in Baytown, Texas; Skyline Steel of Parsippany, N.J.; Stupp Corp. in Baton Rouge, La.; and Trinity Products of Fallon, Mo.
   Commerce is scheduled to announce its final countervailing duty determinations by Nov. 6, while the U.S. International Trade Commission is expected to make its final injury determinations on Dec. 20. If Commerce makes affirmative final determinations and the ITC makes affirmative final injury determinations, Commerce will issue countervailing duty orders. If Commerce makes negative final determinations or the ITC does the same, the investigations will end, with no countervailing duty orders issued.
   ALPPA, so far, is expecially pleased with Commerce’s “strong response to uncooperative respondents” in its investigations of Chinese and Indian large diameter welded pipe producers and exporters.
   “ALPPA is confident that Commerce will continue to pursue these government subsidies aggressively,” said Tim Brightbill, partner at law firm Wiley Rein and trade counsel to the association, in a statement. “After all necessary information has been provided, we believe the final results of these investigations will reflect the full value of the subsidies that have driven harmful volumes of unfair large diameter welded pipe imports into the U.S. market.”