China Large Diameter Line and Structural Pipe: Details of AD Duty Order
The Commerce Department issued an antidumping duty order on large diameter welded carbon and alloy steel line and structural pipe from China (A-570-077). Originating from AD/CV duty orders on all forms of large diameter welded pipe, the orders come with a revised scope due to an International Trade Commission determination that only dumped Chinese structural and line pipe injures U.S. industry, and not stainless steel pipe.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
The order sets permanent antidumping duties, which will remain in place unless revoked by Commerce in a sunset or changed circumstances review. Commerce will now begin conducting annual administrative reviews, if requested, to determine final assessments of AD duties on importers and make changes to cash deposit rates.
The order details a "gap period" of no AD duty liability for subject merchandise entered Dec. 25, 2018, through Feb. 4, 2019. Commerce may only suspend liquidation for four months after its preliminary AD duty determination (extendable to six months but not extended in this case), issued Aug. 27, 2018, without the ITC having found injury. Commerce will order CBP to liquidate, without regard to AD duties, any entries during this gap period.
Commerce is also issuing a CV duty order on China and AD/CVD orders on India resulting from its AD/CVD investigations on large diameter welded pipe. As a result of the ITC's split decision in its final injury determination, the CV duty order on China covers only structural pipe, while the AD/CVD duty orders on India only cover line pipe (see 1903070022 and 1903070018). Investigations on large diameter welded pipe from Canada, Greece, South Korea and Turkey are ongoing.
Cash Deposits Refunded for Structural, Stainless Steel Pipe
In its final injury determination, the ITC found only injury to U.S. producers from imports of dumped Chinese large diameter welded carbon and alloy steel structural and line pipe. Conversely, it found no injury to U.S. producers caused by imports of dumped stainless steel pipe. As a result, these AD/CV duty orders do not apply to the large diameter stainless steel pipe that was also originally subject to this investigation. Commerce will terminate suspension of liquidation of any entries of Chinese stainless steel pipe for AD duty purposes (there is still a CV duty order being issued on structural pipe), and refund any cash deposits collected on such entries as a result of this AD duty investigation.
The revised scope of this AD duty order covering only structural and line pipe is as follows:
The merchandise covered by this order is welded carbon and alloy steel pipe (other than stainless steel pipe), more than 406.4 mm (16 inches) in nominal outside diameter (large diameter welded pipe), regardless of wall thickness, length, surface finish, grade, end finish or stenciling. Large diameter welded pipe may be used to transport oil, gas, slurry, steam, or other fluids, liquids or gases. It may also be used for structural purposes, including, but not limited to, piling. Specifically, not included is large diameter welded pipe produced only to specifications of the American Water Works Association (AWWA) for water and sewage pipe.
Large diameter welded pipe used to transport oil, gas or natural gas liquids is normally produced to the American Petroleum Institute (API) specification 5L. Large diameter welded pipe may also be produced to American Society for Testing and Materials (ASTM) standards A500, A252 or A53, or other relevant domestic specifications, grades and/or standards. Large diameter welded pipe can be produced to comparable foreign specifications, grades and/or standards or to proprietary specifications, grades and/or standards, or can be non-graded material. All pipe meeting the physical description set forth above is covered by the scope of this order, whether or not produced according to a particular standard.
Subject merchandise also includes large diameter welded pipe that has been further processed in a third country, including but not limited to coating, painting, notching, beveling, cutting, punching, welding or any other processing that would not otherwise remove the merchandise from the scope of the order if performed in the country of manufacture of the in-scope large diameter welded pipe.
The large diameter welded pipe that is subject to this order is currently classifiable in the Harmonized Tariff Schedule of the United States (HTSUS) under subheadings 7305.11.1030, 7305.11.1060, 7305.11.5000, 7305.12.1030, 7305.12.1060, 7305.12.5000, 7305.19.1030, 7305.19.1060, 7305.19.5000, 7305.31.4000, 7305.31.6090, 7305.39.1000 and 7305.39.5000. While the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this order is dispositive.
AD Suspension of Liq Instructions
Suspension of liquidation resumes for all entries of subject merchandise from China entered on or after Feb. 5, the date that the final ITC affirmative injury determination was published.
AD Cash Deposit Instructions
An AD cash deposit requirement is also in effect for subject merchandise from China entered on or after Feb. 5, equal to the rates listed below:
| Exporter | AD Rate |
|---|---|
| China-wide Entity (includes all Chinese companies) | 132.63% |
(See the notice for additional details, including the full scope description, etc. See 1811130015 for a summary of the final AD duty determination.)
(Federal Register 03/06/19)