By Richard P. Ferrin and Douglas J. Heffner

Yesterday, new antidumping (AD) petitions were filed regarding heavy-walled rectangular welded carbon steel pipes and tubes from Korea, Mexico, and Turkey, and a countervailing duty (CVD) petition was filed with respect to the same product from Turkey.  The petitioners are: Atlas Tube (a division of JMC Steel Group); Bull Moose Tube Company; EXLTUBE (but not a petitioner in the case against Mexico); Hannibal Industries, Inc.; Independence Tube Corporation; Maruichi American Corporation; Searing Industries; Southland Tube; and Vest, Inc.


The petition proposes the following scope of investigation:

Certain welded carbon steel pipes and tubes of rectangular (including square) cross section, having a wall thickness of not less than 4 mm, not threaded and not otherwise advanced.

Included products are those in which: (1) iron predominates, by weight, over each of the other contained elements; (2) the carbon content is 2 percent or less, by weight; and (3) none of the elements listed below exceeds the quantity, by weight, respectively indicated:

• 2.50 percent of manganese;
• 3.30 percent of silicon;
• 1.50 percent of copper;
• 1.50 percent of aluminum;
• 1.25 percent of chromium;
• 0.30 percent of cobalt;
• 0.40 percent of lead;
• 2.0 percent of nickel;
• 0.30 percent of tungsten;
• 0.80 percent of molybdenum;
• 0.10 percent of niobium (also called columbium);
• 0.30 percent of vanadium; or
• 0.30 percent of zirconium.

The subject merchandise is currently provided for in item 7306.61.1000 of the Harmonized Tariff Schedule of the United States (HTSUS). While the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this investigation is dispositive.

Alleged Dumping Margins:

Petitioners allege a 79.8 percent dumping margin for Korean producers.  Petitioners allege a 23.4 percent dumping margin for Mexican producers.  Finally, petitioners allege dumping margins for Turkish producers ranging from 96.5 percent to 108.6 percent.

Alleged Subsidy Programs:

Petitioners allege that Turkish producers benefit from the following countervailable subsidies:

  • Provision of hot-rolled steel for less than adequate remuneration
  • Provision of electricity for less than adequate remuneration
  • Provision of land for less than adequate remuneration
  • Provision of lignite for less than adequate remuneration
  • Deductions for taxable income for export revenue
  • Tax incentives for research and development activities
  • Short-term pre-shipment rediscount program
  • Pre-export credit program
  • Export insurance provided by Turk Eximbank
  • Investment encouragement programs customs duty and VAT exemptions
  • Large scale investment incentives
  • Strategic investment incentives
  • Law 5084 withholding of income tax on wages and salaries (a regional     development subsidy)
  • Exemptions from property tax (a regional development subsidy)
  • Law 5084 incentive for employer’s share in insurance premiums (a regional development subsidy)

Estimated Schedule of Investigation:

August 10, 2015 – U.S. Department of Commerce (DOC) initiates investigation.
August 11, 2015 (estimated) – U.S. International Trade Commission (ITC) holds staff conference.
September 4, 2015 – Deadline for ITC preliminary injury determination.
October 14, 2015 – Deadline for DOC preliminary CVD determination (if not postponed).
December 28, 2015 – Deadline for DOC preliminary AD determination (if not postponed).

For further information, contact Douglas J. Heffner or Richard P. Ferrin, or any other member of the Customs and International Trade Team.  For a link to other Customs and Trade publications, click on the publications tab here.


Source: Client Alert