CBP Finds Evasion of AD Duty Order on OCTG

CBP "determined that there is substantial evidence" that American Pacific Rubber (APAC) evaded antidumping duties on imported oil country tubular goods (OCTG), the agency said in a May 21 final determination. The evidence showed that "the OCTG pup joints imported by APAC from Vietnam were steel OCTG tubing that was misidentified as upper extension nipples, misclassified under subheading 8413.91.9080, HTSUS, and entered into the customs territory of the United States without the cash deposits." The investigation was the result of allegations submitted by Aztec Manufacturing Partnership that APAC evaded antidumping duties on the goods (see 1710230023).

Aztec, which is represented by Richard Mojica of Miller Chevalier, alleged that APAC evaded an antidumping order on OCTG from Vietnam (A-552-817) and CBP announced it would begin an investigation in October. In response to CBP requests for information, APAC argued that the products fell outside the scope of the AD order, CBP said. The agency wasn't convinced and said "APAC has neither established that the OCTG pup joints are nipples nor that they should be otherwise considered as excluded from the scope of the AD order." APAC is represented by Joseph Cox of Stein Shostak.

CBP's physical examinations on the OCTG pup joints "and the associated mill test certificates, indicate that the OCTG pup joints are not specifically excluded from the scope of the order because they are not: (i) casing or tubing containing 10.5 percent or more by weight of chromium; (ii) drill pipe; (iii) unattached couplings; or (iv) unattached thread protectors," CBP said. A preliminary AD order from the Canadian International Trade Tribunal that was submitted as evidence that the joints are outside of the AD order has "no bearing on the applicability of the U.S. AD order on these good," the agency said. Aztec and APAC didn't comment.

As a result of the finding, "CBP will continue to suspend the liquidation for any entry that has entered on or after July 18, 2017, the date of initiation of this investigation until suspension is lifted for these entries," the agency said. "CBP will also continue to extend the period for liquidation for all unliquidated entries that entered before that date until instructed to liquidate these entries. For future entries, CBP will continue to require live entry, which requires that the importer post the applicable cash deposits prior to the entry’s release."