Steel Tube Company Files AD/CV Duty Evasion Allegation With CBP

Wheatland Tube, a Pennsylvania steel tube manufacturer, filed with CBP on Sept. 14 "one of the first" antidumping and countervailing duty evasion allegations under the customs reauthorization law, the company said in a news release (here). Wheatland, a division of Zekelman Industries, filed the allegations over possible evasion of AD/CV duties on imports of Chinese circular welded steel pipe, the company said. CBP recently issued an interim final rule that detailed the agency's new processes for responding to such allegations (see 1608190014). The AD/CVD evasion investigation provision of February's customs reauthorization law became effective Aug. 22.

The company said the duty evasion includes pipe being used in solar projects, some of which get federal tax breaks. “We uncovered evidence of the evasion of massive antidumping and countervailing duties on imports from China used in solar panel installations,” said Barry Zekelman, CEO of Zekelman Industries. “As the largest pipe and tube producer in North America, we want to ensure that the laws designed to create a level playing field for our industry and our workers are not undermined by duty evasion practices.” Wheatland filed the allegation through its lawyer, Roger Schagrin of Schagrin Associates, the company said.

Currently, AD duty rates of 69.20 percent to 85.55 percent and CV duty rates of 29.62 percent to 616.83 percent apply to imports of circular welded steel from China. Those rates were imposed in 2008 following reviews from the Commerce Department and International Trade Commission. "With the demand for energy tubulars down, structural pipe used for solar installations is a growing area of increasing demand," said David Seeger, president of Zekelman. "We hate to see that demand, and the opportunities it provides for our industry, to be overtaken by unfairly traded pipe from China.” CBP didn't immediately comment.