China Butt-Weld Pipe Fittings: Val-Fit's Fittings With One Opening Wider Than 14 Inches Not Subject to AD Duties

Butt-weld pipe fittings with one opening wider than 14 inches and the other narrower than 14 inches are not subject to antidumping duties on carbon steel butt-weld pipe fittings from China (A-570-814), the Commerce Department said in a scope ruling issued in February. Though the scope of the AD duty order includes pipe fittings “having an inside diameter of less than 14 inches,” the fact that the other opening on Val-Fit’s fittings is over 14 inches excludes the fittings from AD duties, Commerce said.

Val-Fit had imported the dual-size fittings for sale primarily to customers in the U.S. oil and gas refining and pipeline industries, though they could also be used in other applications. The reducing “T,” concentric and eccentric fittings, made of carbon steel, have a larger opening of 14 to 24 inches on one end and a smaller opening of 8 to 12 inches on the smaller side.

The domestic manufacturers that originally requested the AD duties argued the scope language at issue covers pipe fittings with any opening smaller than 14 inches, so Val-Fit’s fittings, with one end below that threshold, would be covered by AD duties. They also said Val-Fit has no right to argue over the scope because it sold its pipe fittings business and is no longer an importer of subject merchandise.

Commerce disagreed, finding the domestic manufacturers’ interpretation too broad. “We find that the word ‘an’ in the scope language of the Order, based on the plain reading of the scope language, does not mean ‘any.’ The most likely interpretation of the word 'an' in the scope language, based on a plain reading of the scope language, is that 'an' is used to point specifically to the inside diameter of the pipe fittings, along its entire length and at all of its openings,” Commerce said.

Val-Fit also has standing to contest whether the fittings are covered by AD duties, because it still has unliquidated entries of products affected by the ruling, Commerce said. “Because Val-Fit continues to have status as an importer of unliquidated entries of subject merchandise in this scope proceeding, it is an interested party. Thus, we disagree with Weldbend’s claim that Val-Fit is no longer an interested party in this proceeding,” the agency said, referring to the arguments of one of the domestic manufacturers.

Email ITTNews@warren-news.com for a copy of this scope ruling.