U.S. finds Chinese soil pipe export subsidies

Illinois company petitioned for the Commerce Department investigation.    The Commerce Department has determined that U.S. imports of cast iron soil pipe from China have received countervailable subsidies from the Chinese government ranging from 13.11 percent to 111.2 percent. 
   Countervailable subsidies are payments made by foreign governments to companies based on their export performance or use of domestic materials over imports during production.
   In this countervailing duty investigation, Commerce calculated a preliminary subsidy rate of 13.11 percent for Yuncheng Jiangxian Economic Development Zone HengTong Casting Co. Ltd., while the department assigned a preliminary subsidy rate of 111.2 percent for Kingway Pipe Co. Ltd., based on adverse facts available. All other Chinese producers and exporters of cast iron soil pipe received a preliminary subsidy rate of 13.11 percent. 
   Commerce has instructed Customs and Border Protection to require cash deposits from importers based on these preliminary rates.
   According to the department, cast iron soil pipe imports from China in 2017 were valued at $11.5 million.  
   The petitioner for the countervailing duty investigation is the Cast Iron Soil Pipe Institute, based in Mundelein, Ill. 
   Commerce is currently scheduled to announce its final countervailing duty determination for this investigation by Nov. 8.
   If Commerce makes a final affirmative determination, then the U.S. International Trade Commission will make its final injury determination by Dec. 24. If both agencies issue affirmative determinations, Commerce will issue a countervailing duty order. However, if Commerce makes a negative final determination or the ITC makes a negative final determination of injury, the investigation will end and no countervailing duty order will be issued.