Seamless Carbon & Alloy Standard, Line, and Pressure Pipe from China - Antidumping & Countervailing Duty Investigations

On September 17, 2009, United States Steel Corporation and V & M Star, LP, jointly filed petitions for relief from allegedly unfairly traded seamless carbon and alloy standard, line, and pressure pipe from China. They allege that the seamless pipe products are being sold at less than their fair value (�dumped�), and that the Government of the People�s Republic of China is unfairly subsidizing the production and export of the pipe products.

Dumping occurs when a foreign company sells a product in the United States at less than normal value. Subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods.

The petition alleges that the seamless pipe products are being dumped at a rate of 70.58%. The petition also alleges that the Chinese government is providing subsidies to producers and exporters of seamless pipe products through more than 40 subsidy programs. Any antidumping or countervailing duties will impose additional import duty liabilities on importers of seamless pipe products covered by the investigation.

Importers, producers, and exporters can participate in the U.S. International Trade Commissions evaluation of whether seamless pipe imports are injuring the U.S. domestic seamless pipe industry.

Further, to obtain a more favorable antidumping duty rate, exporters from China must file separate rate applications with the U.S. Department of Commerce. within 60 days after the Department of Commerce publishes its Notice of Initiation of the Investigations in the Federal Register. The Department of Commerce presumes that all producers and exporters in China are controlled by the Chinese government unless the exporter can prove that it is not controlled by the Chinese government. To prove that it is not controlled by the Chinese government, an exporter must submit a separate rates application to the Department of Commerce. Separate rates applications must be filled out completely with the precise data and evidence required by the Department of Commerce. The consequence for submitting an incomplete separate rates application is rejection of the application. Because of the strict requirements of the separate rates application, and the extreme consequences of failing to satisfy those requirements, Chinese exporters should hire U.S. trade attorneys to guide them through the process.

Exporters that demonstrate that they are not controlled by the Chinese government (that is, that they are separate from Chinese-government-controlled entities) will receive a �separate rate�, which is an additional import duty rate lower than the rate assigned to producers and exporters deemed to be controlled by the Chinese government. Exporters with lower rates will be able to offer their phosphate salts at lower prices to U.S. customers than their Chinese competitors.

NOTE-Comments may be made to the International Trade Commission by filing a written brief before its injury hearing (date to be determined). Questionnaires regarding injury and causation are posted on the website of the International Trade Commission, and will be added here as soon as they are available. Until the U.S. Department of Commerce initiates the investigation, only U.S. manufacturers, producers, wholesalers, U.S. unions and worker groups, and trade or buisiness associations may submit comments. However, Chinese producers and exporters, and U.S. importers of Chinese may submit comments or information related to industry support (that is, the petition must be supported by U.S. producers or workers that account for 25% of total U.S. production and more than 50% of the production of U.S. producers and workers voicing support or opposition to the petition. Once the investigation is initiated, the U.S. Department of Commerce does not revisit the issue of industry support.

		CERTAIN SEAMLESS CARBON AND ALLOY STANDARD, LINE, AND PRESSURE PIPE FROM CHINA
		Petition: Injury Section \| AD Section \| CVD Section pt.1 \| CVD Section pt.2 ITC Questionnaires: US Cover Letter \| Importers \| US Producers (instructions) Foreign Cover Letter \| Foreign Producers ITC Information: Initiation \| Prelim NEW DOC Information: Fact Sheet \| AD Initiation \| CVD Initiation \| Time Line DOC Questionnaires: Quantity&Value DUE 10/27/09 SeparateRates Application DUE 12/14/09 INVESTIGATION TIMELINE

FAQs What are antidumping (AD) and countervailing (CVD) duties? Why do I need to file a Quantity and Value Questionnaire? Why do I need to file a Separate Rates Application? Scope - Scope typically undergoes modifications during the pre-initiation period. This page will be updated as new versions are available. The merchandise covered by this investigation is certain seamless carbon and alloy steel (other than stainless steel) pipes and redraw hollows, less than or equal to 16 inches (406.4 mm) in outside diameter, regardless of wallthickness, manufacturing process (e.g., hot-finished or cold-drawn), end finish (e.g., plain end, beveled end, upset end, threaded, or threaded and coupled), or surface finish (e.g., bare, lacquered or coated). Redraw hollows are any unfinished carbon or alloy steel (other than stainless steel) pipe or "hollow profiles" suitable for cold finishing operations, such as cold drawing, to meet the American Society for Testing and Materials ("ASTM") or American Petroleum Institute ("API") specifications referenced below, or comparable specifications. Specifically included within the scope are seamless carbon and alloy steel (other than stainless steel) standard, line, and pressure pipes produced to the ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-335, ASTM A-589, ASTM A-795, ASTM A-1024, and the API 5L specifications, or comparable specifications, and meeting the physical parameters described above, regardless of application, with the exception of the exclusion discussed below. Specifically excluded from the scope of the investigation are unattached couplings. The merchandise covered by the investigation is currently classified in the Harmonized Tariff Schedule of the United States ("HTSUS") under item numbers: 7304.19.1020, 7304.19.1030, 7304.19.1045, 7304.19.1060, 7304.19.5020, 7304.19.5050, 7304.31.6050, 7304.39.0016, 7304.39.0020, 7304.39.0024, 7304.39.0028, 7304.39.0032, 7304.39.0036, 7304.39.0040, 7304.39.0044, 7304.39.0048, 7304.39.0052, 7304.39.0056, 7304.39.0062, 7304.39.0068, 7304.39.0072, 7304.51.5005, 7304.51.5060, 7304.59.6000, 7304.59.8010, 7304.59.8015, 7304.59.8020, 7304.59.8025, 7304.59.8030, 7304.59.8035, 7304.59.8040, 7304.59.8045, 7304.59.8050, 7304.59.8055, 7304.59.8060, 7304.59.8065, and 7304.59.8070. Although the HTSUS subheadings are provided for convenience and customs purposes, our written description of the merchandise subject to this scope is dispositive.		US Steel's Desired Product Coverage Questioned By the U.S. 中文Department of Commerce, Comments Requested In Notice of Initiation On October 14 & 15, 2009, the U.S. Department of Commerce published its official initiation of the antidumping and countervailing duty investigations into certain seamless carbon and alloy standard, line, and pressure pipe from China. In the notice of initiation, the Department Commerce specifically questions whether "end use" langauge in the scope description is appropriate, and asks for comments by October, 26, 2009, with rebuttal comments due November 2, 2009. US Steel will most likely file comments explaining why end-use language is appropriate. All other interested parties may comment as well. In the countervailing duty investigation, the Department of Commerce will investigate 41 alleged subsidy programs, incuding preferential loans, equity programs, tax benefits, reduced import tariffs, and grants. The Department of Commerce decided that 2 subsidy programs alleged in the petition did not have sufficient evidentiary support to cause the Department of Commerce to initiate an investigation of them. Mandatory respondents -- producers/exporters that must respond to the Department of Commerce's questionnaires or face the penalty of "adverse facts available" -- will be selected from US import data for calendar year 2008. The Department of Commerce will most likely select the 2 or 3 largest producers/exporters from China For information on how to present comments and argument to the Department of Commerce, please contact us at info@importerhelp.com. IMPORTERS - TWO ACTIONS TO TAKE NOW: First: contact your Chinese suppliers to encourage them to file a response to the Department of Commerce QUANTITY & VALUE QUESTIONNAIRE. All exporters must file a response or they are deemed uncooperative. Uncooperative parties are assigned the "adverse facts available rate," which is always the highest duty rate. This means they will be locked out of the US Market and you may be liable for a shocking increase in import duties (think bankrupcty -- no exaggeration). Second: contact your Chinese suppliers to encourage them to file a SEPARATE RATES APPLICATION in the antidumping duty investigation. Separate Rates Applications are due December 14, 2009, but can be rejected if they are less than perfect. Separate rates applications should be sent in early so there is time to correct any deficiencies. Chinese exporters should contact a US international trade attorney to help them file the separate rates application properly. If they do not file a separate rates application, your suppliers will be deemed to be controlled by the Chinese government and assigned a high, China-wide antidumping duty rate. As a result, you could be subject to a shocking increase in import duties (think bankruptcy), and they could be locked out of the US market! Department of Commerce Initiates Antidumping Duty Investigation on Certain Seamless Carbon and Alloy Standard, Line, and Pressure Pipe Imports from China: Initial dumping margins calculated at 98.37%. 中文 On October 7, 2009, the Department of Commerce (Commerce) announced its decision to initiate AD and CVD investigations on imports of seamless carbon and alloy steel standard, line and pressure pipe from China. The products covered by these investigations include seamless carbon and alloy steel standard, line, and pressure pipes less than or equal to 16 inches (406.4 mm) in outside diameter. These products are intended for the conveyance of water, steam, petrochemicals, chemicals, oil products, natural gas, and other liquids and gasses in industrial piping systems. (See Scope in the left panel -- to be updated when the initiation is published.) The Department Commerce has specifically questioned whether the "end uses" langauge in the scope description is appropriate, and asks for comments by October, 26, 2009, with rebuttal comments due November 2, 2009. Dumping occurs when a foreign company sells a product in the United States at less than normal value. Subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods. The U.S. International Trade Commission (ITC) is scheduled to make its preliminary injury determination on or about November 2, 2009. If the ITC determines that there is a reasonable indication that imports from China are materially injuring, or threatening material injury to, the domestic industry, the investigations will continue, and Commerce will be scheduled to make its CVD preliminary determination in December 2009 and AD preliminary determination in February 2010. Initial dumping margins for imports from China were calculated at 98.37% -- this rate is 28 points higher than the 70.58% rate alleged in the petition (see below). *Time Line: Countervailing Duty Investigation Antidumping Investigation** Petitions Filed September 16, 2009 September 16, 2009 DOC Initiation Date October 6, 2009 October 6, 2009 ITC Preliminary Determination November 2, 2009 November 2, 2009 DOC Preliminary Determinations December 10, 2009 February 23, 2010 DOC Final Determinations February 23, 2010 May 10, 2010 ITC Final Determination April 9, 2010 June 23, 2010 Issuance of Orders April 16, 2010 June 30, 2010 Dates for the preliminary and final determinations may be extended (and most likely will) Certain Seamless Carbon and Alloy Standard, Line, and Pressure Pipe Imports from China Under Attack by U.S. Pipe Industry: United States Steel Corporation and V & M Star, LP, file antidumping duty and countervailing duty petitions with the U.S. Department of Commerce and U.S. International Trade Commission. printable version 中文 On September 17, 2009, United States Steel Corporation and V & M Star, LP, jointly filed petitions for relief from allegedly unfairly traded seamless carbon and alloy standard, line, and pressure pipe from China. They allege that the seamless pipe products are being sold at less than their fair value (�dumped�), and that the Government of the People�s Republic of China is unfairly subsidizing the production and export of the pipe products. Dumping occurs when a foreign company sells a product in the United States at less than normal value. Subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods. The petition alleges that the seamless pipe products are being dumped at a rate of 70.58%. The petition also alleges that the Chinese government is providing subsidies to producers and exporters of seamless pipe products through more than 40 subsidy programs. Any antidumping or countervailing duties will impose additional import duty liabilities on importers of seamless pipe products covered by the investigation. Importers, producers, and exporters can participate in the U.S. International Trade Commissions evaluation of whether seamless pipe imports are injuring the U.S. domestic seamless pipe industry. Further, to obtain a more favorable antidumping duty rate, exporters from China must file separate rate applications with the U.S. Department of Commerce. within 60 days after the Department of Commerce publishes its Notice of Initiation of the Investigations in the Federal Register. The Department of Commerce presumes that all producers and exporters in China are controlled by the Chinese government unless the exporter can prove that it is not controlled by the Chinese government. To prove that it is not controlled by the Chinese government, an exporter must submit a separate rates application to the Department of Commerce. Separate rates applications must be filled out completely with the precise data and evidence required by the Department of Commerce. The consequence for submitting an incomplete separate rates application is rejection of the application. Because of the strict requirements of the separate rates application, and the extreme consequences of failing to satisfy those requirements, Chinese exporters should hire U.S. trade attorneys to guide them through the process. Exporters that demonstrate that they are not controlled by the Chinese government (that is, that they are separate from Chinese-government-controlled entities) will receive a �separate rate�, which is an additional import duty rate lower than the rate assigned to producers and exporters deemed to be controlled by the Chinese government. Exporters with lower rates will be able to offer their phosphate salts at lower prices to U.S. customers than their Chinese competitors. NOTE*-Comments may be made to the International Trade Commission by filing a written brief before its injury hearing (date to be determined). Questionnaires regarding injury and causation are posted on the website of the International Trade Commission, and will be added here as soon as they are available. Until the U.S. Department of Commerce initiates the investigation, only U.S. manufacturers, producers, wholesalers, U.S. unions and worker groups, and trade or buisiness associations may submit comments. However, Chinese producers and exporters, and U.S. importers of Chinese may submit comments or information related to industry support (that is, the petition must be supported by U.S. producers or workers that account for 25% of total U.S. production and more than 50% of the production of U.S. producers and workers voicing support or opposition to the petition. Once the investigation is initiated, the U.S. Department of Commerce does not revisit the issue of industry support.