US issues preliminary determinations on welded pipe from four countries - Global Trade Magazine
  September 4th, 2018 | Written by

US issues preliminary determinations on welded pipe from four countries

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  • Imports from companies that receive unfair subsidies from their governments are subject to countervailing duties.
  • Unfair subsidies can include grants, loans, equity infusions, tax breaks, and production inputs.
  • Commerce Department instructed CBP to collect cash deposits from importers of welded pipe from four countries.

The US Department of Commerce announced the affirmative preliminary determinations in the countervailing duty (CVD) investigations of imports of large diameter welded pipe from China, India, Korea, and Turkey. Commerce’s investigation found that exporters in those countries received countervailable subsidies at the following rates: China – 198.49 percent; India – 541.15 percent; Korea – 0.01 to 3.31 percent; and Turkey – 1.08 to 3.76 percent.

Imports from companies that receive unfair subsidies from their governments in the form of grants, loans, equity infusions, tax breaks, and production inputs are subject to countervailing duties aimed at directly countering those subsidies.

Commerce instructed US Customs and Border Protection to collect cash deposits from importers of large diameter welded pipe from China, India, Korea, and Turkey based on all preliminary rates that are above de minimis.

In 2017, imports of large diameter welded pipe from China, India, Korea, and Turkey were valued at an estimated $29.2 million, $294.7 million, $150.9 million, and $57.3 million, respectively.

The petitioners in the case were American Cast Iron Pipe Company of Birmingham, Alabama; Berg Steel Pipe Corp., Panama City, Florida; Berg Spiral Pipe Corp., Mobile, Alabama; Dura-Bond Industries, Steelton, Pennsylvania; Greens Bayou Pipe Mill, Houston, Texas; JSW Steel (USA), Baytown, Texas; Skyline Steel, Parsippany, New Jersey; Stupp Corporation, Baton Rouge, Louisiana; and Trinity Products, Fallon, Missouri.

Countervailing duty laws provide US businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair subsidization of imports into the United States.  Commerce currently maintains 449 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade. Commerce is currently scheduled to announce its final CVD determinations on or about November 6, 2018.

Since the beginning of the current Administration, Commerce has initiated 118 new antidumping and countervailing duty investigations.

The US International Trade Commission (ITC) is currently scheduled to make its final injury determinations on December 20, 2018.  If Commerce makes affirmative final determinations and the ITC makes affirmative final injury determinations, Commerce will issue CVD orders.  If Commerce makes negative final determinations or the ITC makes negative final determinations of injury, the investigations will be terminated and no orders will be issued.


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