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AD/CV: China and Korea Certain Circular Welded Carbon Quality Steel Line Pipe

The International Trade Administration has initiated antidumping duty investigations to determine whether imports of certain circular welded carbon quality steel line pipe from China and Korea are being, or are likely to be, sold in the U.S. at less than fair value, and a countervailing duty investigation to determine whether manufacturers, producers, or exporters of subject merchandise in China receive countervailable subsidies.

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China AD Q&V Questionnaires Due May 14, Separate Rate Apps Due June 30

In the China AD investigation, the ITA will request quantity and value (Q&V) information from all known exporters and producers identified in the petition. The quantity and value data received from these non-market economy (NME) exporters/producers will be used as the basis to select the mandatory respondents. The ITA requests that Q&V questionnaires be submitted no later than May 14, 2008. The questionnaire is available at http://ia.ita.doc.gov/download/nme-sep-rates/prc-wlp/prc-wlp-cvd-init-qvq-042408.pdf.

The ITA requires exporters and producers seeking separate rate status in the AD investigation for China to submit a separate rate application by June 30, 2008. The application is available at http://ia.ita.doc.gov/ia-highlights-and-news.html

Comments on CBP Data, Respondent Selection for Korea Due May 9th

The ITA states that for the Korea investigation, it intends to select respondents based on U.S. Customs and Border Protection data for U.S. imports during the period of investigation. The ITA invites comments regarding the CBP data and the selection of respondents within ten days of April 29, 2008.

Comments on Physical Characteristics Due May 13th

The ITA is also requesting comments by May 13, 2008 from interested parties regarding the appropriate physical characteristics of welded line pipe to be reported in response to the AD questionnaires. This information will be used to identify the key physical characteristics of the subject merchandise in order for respondents to more accurately report the relevant factors and costs of production, as well as to develop appropriate product comparison criteria. (Rebuttal comments must be received by May 20, 2008.)

Scope of the Investigations

The merchandise covered by each of these investigations is circular welded carbon quality steel pipe of a kind used for oil and gas pipelines ("welded line pipe"), not more that 406.4 mm (16 inches) in outside diameter, regardless of wall thickness, length, surface finish, end finish or stenciling.

The term "carbon quality steel" includes both carbon steel and carbon steel mixed with small amounts of alloying elements that may exceed the individual weight limits for nonalloy steels imposed in the Harmonized Tariff Schedule. Specifically, the term "carbon quality" includes products 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: (i) 2.00 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) 0.012 percent of boron, (xi) 0.50 percent of molybdenum, (xii) 0.15 percent of niobium, (xiii) 0.41 percent of titanium, (xiv) 0.15 percent of vanadium, or (xv) 0.15 percent of zirconium.

Welded line pipe is normally produced to specifications published by the American Petroleum Institute ("API") (or comparable foreign specifications) including API A-25, 5LA, 5LB, and X grades from 42 and above, and/or any other proprietary grades or non-graded material. Nevertheless, all pipe meeting the physical description set forth above that is of a kind used in oil and gas pipelines, including all multiple-stenciled pipe with an API line pipe stencil is covered by the scope of these investigations.

HTS Classification. The line pipe products that are the subject of these investigations are currently classifiable in the HTS under subheadings 7306.19.10.10, 7306.19.10.50, 7306.19.51.10, and 7306.19.51.50.

The ITA notes that while HTS subheadings are provided for convenience and customs purposes, the written description of the scope of these investigations is dispositive.

- comments on the physical characteristics of welded line pipe are due by 05/13/08, with rebuttal comments due by 05/20/08

- comments on the scope of the investigations are due by 05/13/08

- comments on CBP data and respondent selection for Korea are due by 05/09/08

- Q&V questionnaires for the China AD investigation are due 05/14/08

- separate rate applications for the China AD investigation are due 06/30/08

- ITA's preliminary AD duty determinations due no later than 09/10/08

-ITA's preliminary CV duty determination for China due no later than 06/27/08

- International Trade Commission's preliminary AD/CV injury determinations due no later than 05/19/08

Jeffrey Pederson (China AD)(202) 482-2769
Kristen Johnson (China CV)(202) 482-4793
Dena Crossland (Korea)(202) 482-3362

ITA China and Korea AD notice (FR Pub 04/2908) available at http://edocket.access.gpo.gov/2008/pdf/E8-9361.pdf

ITA China CV notice (FR Pub 04/29/08) available at http://edocket.access.gpo.gov/2008/pdf/E8-9345.pdf

ITA fact sheet available at http://ia.ita.doc.gov/download/factsheets/factsheet-prc-korea-wlp-init-042408.pdf