CV: China Circular Welded Carbon Quality Steel Pipe

Preliminary critical circumstances (except East Pipe). The ITA has preliminarily determined that critical circumstances exist with respect to CWP imports by all except Weifang East Steel Pipe Co., Ltd. (East Pipe).

Suspension of liquidation (except East Pipe). The ITA is directing CBP to apply the suspension of liquidation to any unliquidated entries with a time of entry on or after the date 90 days prior to November 13, 2007 (except East Pipe).

For subject merchandise produced and exported by East Pipe, liquidation is not suspended as the ITA has preliminarily determined that East Pipe did not receive any countervailable subsidies.

CV cash deposit (except East Pipe). The ITA will also instruct CBP to require a cash deposit or the posting of a bond at the CV rates listed below, for entries of subject merchandise (except subject merchandise produced and exported by East Pipe) with a time of entry on or after November 13, 2007, for the following exporters/producers:

(a) The CV duty rate for East Pipe is zero, and the cash deposit requirement will not apply to East Pipe because the ITA has preliminarily determined that East Pipe did not receive any countervailable subsidies.

¹The Shuangie Group includes Tianjin Shuangjie Steel Pipe Co., Ltd., Tianjin Shuangjie Steel Pipe Group Co., Ltd., Tianjin Wa Song Imp. & Exp. Co., Ltd., and Tianjin Shuanglian Galvanizing Products Co., Ltd.

²The Kingland Group includes Zhejiang Kingland Pipeline and Technologies Co., Ltd., Kingland Group Co., Ltd, Beijing Kingland Century Technologies Co., Zhejiang Kingland Pipeline Industry Co., Ltd., and Shanxi Kingland Pipeline Co., Ltd.

Final CV Duty Determination, Alignment with Final AD Duty Determination

The ITA will make its final CV duty determination for subject merchandise from China by March 18, 2008, unless extended.

The ITA also notes that this notice serves to align the final CV duty determination in this investigation with the final determination in the companion AD duty investigation.

Significant Changes Made to Scope of the Investigation

After analyzing comments regarding the scope of the investigation, the ITA has made significant changes to the scope, including removal of the applications of standard and structural pipe, the addition of certain characteristics, an additional exclusion, and 7 additional HTS numbers. The new scope reads as follows:

Scope of the investigation. The scope of this investigation covers certain welded carbon quality steel pipes and tubes, of circular cross-section, and with an outside diameter of 0.372 inches (9.45 mm) or more, but not more than 16 inches (406.4 mm), whether or not stenciled, regardless of wall thickness, surface finish (e.g., black, galvanized, or painted), end finish (e.g., plain end, beveled end, grooved, threaded, or threaded and coupled), or industry specification (e.g., ASTM, proprietary, or other), generally known as standard pipe and structural pipe (they may also be referred to as circular, structural, or 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% or less, by weight; and (c) none of the elements listed below exceeds the quantity, by weight, as indicated: (i) 1.80% of manganese; (ii) 2.25% of silicon; (iii) 1.00% of copper; (iv) 0.50% of aluminum; (v) 1.25% of chromium; (vi) 0.30% of cobalt; (vii) 0.40% of lead; (viii) 1.25% of nickel; (ix) 0.30% of tungsten; (x) 0.15% of molybdenum; (xi) 0.10% of niobium; (xii) 0.41% of titanium; (xiii) 0.15% of vanadium; or (xiv) 0.15% of zirconium.

Standard pipe is made primarily to American Society for Testing and Materials (ASTM) specifications, but can be made to other specifications. Standard pipe is made primarily to ASTM specifications A-53, A-135, and A-795. Structural pipe is made primarily to ASTM specifications A-252 and A-500. Standard and structural pipe may also be produced to proprietary specifications rather than to industry specifications. This is often the case, for example, with fence tubing. Pipe multiple-stenciled to a standard and/or structural specification and to any other specification, such as the American Petroleum Institute (API) API-5L or 5L X-42 specifications, is also covered by the scope of this investigation when it meets the physical description set forth above and also satisfies one or more of the following characteristics: is a single random length; less than 2.0 inches (50 mm) in outside diameter; has a galvanized and/or painted surface finish; or has a threaded and/or coupled end finish.

Exclusions from the scope. The scope of this investigation does not include: (a) pipe suitable for use in boilers, superheaters, heat exchangers, condensers, refining furnaces and feedwater heaters, whether or not cold drawn; (b) mechanical tubing, whether or not cold-drawn; (c) finished electrical conduit; (d) finished scaffolding; (e) tube and pipe hollows for redrawing; (f) oil country tubular goods produced to API specifications; and (g) line pipe produced to only API specifications.

HTS classification. The pipe products that are the subject of this investigation are currently classifiable in HTS statistical reporting numbers 7306.30.1000, 7306.30.5025, 7306.30.5032, 7306.30.5040, 7306.30.5055, 7306.30.50.85, 7306.30.5090, 7306.50.1000, 7306.50.5050, 7306.50.5070, 7306.19.1010, 7306.19.1050, 7306.19.5110, and 7306.19.5150. The ITA notes that the product description, and not the HTS classification, is dispositive of whether merchandise imported into the U.S. falls within the scope of the investigation.

(See ITA notice for additional information, including the scope of the investigation, etc.

See ITT's Online Archives or 08/13/07 news, 07081330, for BP summary of the ITA's postponement of the preliminary CV duty determination. See ITT's Online Archives or 07/09/07 news, 07070925, for BP summary of the ITA's initiation of the CV and AD duty investigations.)

ITA contact - Salim Bhabhrawala (202) 482-1784

ITA notice (FR Pub 11/13/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-22144.pdf

ITA Fact Sheet available at http://ia.ita.doc.gov/download/factsheets/factsheet-prc-standard-pipe-prelim-110607.pdf