China OCTG: Mechanical Tubing Used to Dig Oil Wells Subject to AD/CV Duties

Tubing for perforating guns used to dig oil wells is covered by antidumping and countervailing duties on oil country tubular goods from China (A-570-943/C-570-944), said the Commerce Department in a scope ruling issued Feb. 12. Importer DynaEnergetics argued the tubing is mechanical tubing exempt from AD/CV duties, and is used to perforate an oil well with explosive charges and then withdrawn. According to DynaEnergetics, the scope of duties on OCTG covers tubing used in oil wells that carries oil to the surface. However, Commerce noted the scope covers all “hollow steel products of circular cross-section, including oil well casing and tubing, of iron (other than cast iron) or steel (both carbon and alloy), whether seamless or welded, regardless of end finish” that is “of a kind used in drilling for oil and gas.” Because it meets the physical characteristics of the scope, is used in oil wells, and no exemption exists for mechanical tubing, DynaEnergetics’ tubing for perforating guns is subject to AD/CV duties, said Commerce.