By Douglas Heffner and Richard Ferrin

On October 28, 2015, antidumping (AD) petitions were filed with the U.S. Department of Commerce (DOC) and U.S. International Trade Commission (ITC), regarding circular welded carbon-quality steel pipe from the Sultanate of Oman, Pakistan, the Philippines, the United Arab Emirates (UAE), and Vietnam.  In addition, a countervailing duty (CVD) petition was filed regarding the same product from Pakistan.  The petitions were filed by Bull Moose Tube Company, EXLTUBE, Wheatland Tube (a division of JMC Steel Group), and Western Tube and Conduit.

Scope:

The petitioners propose the following scope of investigation:

These petitions cover welded carbon-quality steel pipes and tube, of circular cross-section, with an outside diameter (O.D.) not more than 16 inches (406.4 mm), regardless of wall thickness, surface finish (e.g., black, galvanized, or painted), end finish (plain end, beveled end, grooved, threaded, or threaded and coupled), or industry specification (e.g., American Society for Testing and Materials International (ASTM), proprietary, or other) generally known as standard pipe, fence pipe and tube, sprinkler pipe, and structural pipe (although subject product may also be referred to as mechanical tubing). Specifically, the term “carbon quality” includes products in which: (a) iron predominates, by weight, over each of the other contained elements; (b) the carbon content is 2 percent or less, by weight; and (c) none of the elements listed below exceeds the quantity, by weight, as indicated:

(i) 1.80 percent of manganese;

(ii) 2.25 percent of silicon;

(iii) 1.00 percent of copper;

(iv) 0.50 percent of aluminum;

(v) 1.25 percent of chromium;

(vi) 0.30 percent of cobalt;

(vii) 0.40 percent of lead;

(viii) 1.25 percent of nickel;

(ix) 0.30 percent of tungsten;

(x) 0.15 percent of molybdenum;

(xi) 0.10 percent of niobium;

(xii) 0.41 percent of titanium;

(xiii) 0.15 percent of vanadium; or

(xiv) 0.15 percent of zirconium.

Subject pipe is ordinarily made to ASTM specifications A53, A135, and A795, but can also be made to other specifications. Structural pipe is made primarily to ASTM specifications A252 and A500. Standard and structural pipe may also be produced to proprietary specifications rather than to industry specifications. Fence tubing is included in the scope regardless of certification to a specification listed in the exclusions below, and can also be made to the ASTM A513 specification. Sprinkler pipe is designed for sprinkler fire suppression systems and may be made to industry specifications such as ASTM A53 or to proprietary specifications. These products are generally made to standard O.D. and wall thickness combinations. Pipe multi-stenciled to a standard and/or structural specification and to other specifications, such as American Petroleum Institute (API) API-5L specification, is also covered by the scope of these investigations when it meets the physical description set forth above, and also has one or more of the following characteristics: is 32 feet in length or less; is less than 2.0 inches (50 mm) in outside diameter; has a galvanized and/or painted (e.g., polyester coated) surface finish; or has a threaded and/or coupled end finish.

The scope of these investigations does not include: (a) pipe suitable for use in boilers, superheaters, heat exchangers, refining furnaces and feedwater heaters, whether or not cold drawn; (b) finished electrical conduit; (c) finished scaffolding; (d) tube and pipe hollows for redrawing; (e) oil country tubular goods produced to API specifications; (f) line pipe produced to only API specifications; and (g) mechanical tubing, whether or not cold-drawn. However, products certified to ASTM mechanical tubing specifications are not excluded as mechanical tubing if they otherwise meet the standard sizes (e.g., outside diameter and wall thickness) of standard, structural, fence and sprinkler pipe.

Also, products made to [certain] outside diameter and wall thickness combinations, which are recognized by the industry as typical for fence tubing, would not be excluded from the scope based solely on their being certified to ASTM mechanical tubing specifications.  [The list is lengthy; please let us know if you would like the full list of products that petitioners describe in this provision.]

The pipe subject to these petitions are currently classifiable in Harmonized Tariff Schedule of the United States (HTSUS) statistical reporting numbers 7306.19.1010, 7306.19.1050, 7306.19.5110, 7306.19.5150, 7306.30.1000, 7306.30.5025, 7306.30.5032, 7306.30.5040, 7306.30.5055, 7306.30.5085, 7306.30.5090, 7306.50.1000, 7306.50.5050, and 7306.50.5070. However, the product description, and not the HTSUS classification, is dispositive of whether the merchandise imported into the United States falls within the scope.

Alleged Dumping Margins:

The petitions allege the following dumping margins exist:

Oman – 110.41% to 119.32%

Pakistan – 15.40%

Philippines – 12.88%

UAE – 98.68% to 119.68%

Vietnam – 103.83%

Alleged Subsidy Programs:

The CVD petition alleges that Pakistani producers/exporters benefit from numerous countervailable subsidies provided by the Government of Pakistan.  Please let us know if you would like further details regarding specific subsidy allegations.

Estimated Schedule of Investigations:

October 28, 2015 – Petitions are filed

November 18, 2015 – DOC initiates investigation

November 18, 2015 – ITC staff conference

December 14, 2015 – Deadline for ITC preliminary injury determination

January 22, 2016 – Deadline for DOC preliminary CVD determination, if deadline is NOT postponed

March 28, 2016 – Deadline for DOC preliminary CVD determination, if deadline is fully postponed

April 6, 2016 – Deadline for DOC preliminary AD determinations, if deadlines are NOT postponed

May 26, 2016 – Deadline for DOC preliminary AD determinations, if deadlines are fully postponed

October 11, 2016 – Deadline for DOC final AD and CVD determinations, if both preliminary and final determinations are fully postponed

November 25, 2016 – Deadline for DOC final injury determination, assuming fully postponed DOC deadlines

Source: Client Alert