Domestic Companies Ask for New AD/CV Duties on API Line Pipe From South Korea and Turkey
A group of U.S. companies on Oct. 16 requested new antidumping and countervailing duties on welded API line pipe from South Korea and Turkey. In a petition filed with the Commerce Department and International Trade Commission, American Cast Iron Pipe Company; Energex; Maverick Tube Corporation; Northwest Pipe Company; Stupp Corporation; Tex-Tube Company; TMK IPSCO; and Welspun Tubular LLC USA allege Turkish and South Korean companies are being illegally subsidized and are underselling product in the United States. According to the companies, their U.S. market share and prices have been falling, despite an uptick in demand over the past several years, because of imports from Turkey and South Korea.
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API line pipe is used for oil and gas pipelines, and is normally produced to American Petroleum Institute (API) specification API 5L. It generally bears an API line pipe stencil, says the petition. Antidumping and countervailing duties are currently in place on line pipe from China under the AD/CV duty orders on circular welded carbon steel line pipe from China. However, the scope of this requested investigation differs in that it would include both carbon and alloy steel line pipe, and the maximum outside diameter of subject line pipe would not exceed 24 inches (instead of 16 inches).
Proposed Scope
The petitioners are proposing the following scope for the investigations:
“The merchandise covered by this investigation is circular welded carbon and alloy steel (other than stainless steel) pipe of a kind used for oil or gas pipelines (welded line pipe), not more than 609.6 mm (24 inches) in nominal diameter, regardless of wall thickness, length, surface finish, end finish, or stenciling. Welded line pipe is normally produced to the American Petroleum Institute (‘API’) specification 5L, but can be produced to comparable foreign specifications, to proprietary grades, or can be non-graded material. All pipe meeting the physical description set forth above, including all multiple-stenciled pipe with an API line pipe stencil, is covered by the scope of these investigations.
“The welded line pipe that is subject to these investigations is currently classifiable in the Harmonized Tariff Schedule of the United States (HTSUS) under subheadings 7305.11.1030, 7305.11.5000, 7305.12.1030, 7305.12.5000, 7305.19.1030, 7305.19.5000, 7306.19.1010, 7306.19.1050, 7306.19.5110, and 7306.19.5150. While the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this investigation is dispositive.”
Commerce Accepting Comments on Petition Support
The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate antidumping and countervailing duty investigations on API line pipe from South Korea and Turkey. Comments are due by Nov. 5.
Email ITTNews@warren-news.com for a copy of the petition.