China Large Diameter Structural Pipe: Details of CV Duty Order

The Commerce Department issued a countervailing duty order on large diameter welded carbon and alloy steel structural pipe from China (C-570-078). 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 illegally subsidized Chinese structural line pipe injures U.S. industry, and not line or stainless steel pipe.

The order sets permanent countervailing 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 CV duties on importers and make changes to cash deposit rates.

The order details a "gap period" of no CV duty liability for subject merchandise entered Oct. 27, 2018, through Feb. 4, 2019. Commerce may only suspend liquidation for four months after its preliminary CV duty determination, issued June 29, 2018. Commerce will order CBP to liquidate, without regard to CV duties, any entries during this gap period. Liquidation of entries during this period may still be suspended for antidumping duty purposes.

Commerce is also issuing an AD duty order on China and AD/CV duty 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 AD duty order on China covers line and structural pipe, while the AD/CVD orders on India only cover line pipe (see 1903070019 and 1903070018). Investigations on large diameter welded pipe from Canada, Greece, South Korea and Turkey are ongoing.

Cash Deposits Refunded for Line, Stainless Steel Pipe

In its final injury determination, the ITC found only injury to U.S. producers from imports of illegally subsidized Chinese large diameter welded carbon and alloy steel structural pipe. Conversely, it found no injury to U.S. producers caused by imports of illegally subsidized line or stainless steel pipe. As a result, this CV duty order does not apply to the large diameter line and stainless steel pipe that was also originally subject to this investigation. Commerce will terminate suspension of liquidation for CV duty purposes of any entries of line or stainless steel pipe, and refund any cash deposits collected on such entries as a result of this CV 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 structural pipe (other than stainless steel pipe), more than 406.4 mm (16 inches) in nominal outside diameter (large diameter welded structural pipe), regardless of wall thickness, length, surface finish, grade, end finish or stenciling. Large diameter welded structural pipe may 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 structural pipe may 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 structural 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 structural pipe meeting the physical description set forth above, including any dual- or multiple-certified/stenciled pipe with an ASTM (or comparable) welded structural pipe certification/stencil, is covered by the scope of this order.

Subject merchandise also includes large diameter welded structural 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 structural pipe.

Excluded from the scope of this order is line pipe which is suitable for transporting oil, gas, slurry, steam, or other fluids, liquids or gases, and is normally produced to American Petroleum Institute (API) specification 5L or equivalent foreign specifications grades and/or standards or to proprietary specifications, grades and/or standards.

The large diameter welded structural pipe that is subject to this order is currently classifiable in the Harmonized Tariff Schedule of the United States (HTSUS) under subheadings 7305.31.4000, 7305.31.6090, 7305.39.1000 and 7305.39.5000. Merchandise currently classifiable 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 and 7305.19.5000 and that otherwise meets the above scope language is also covered. While the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this order is dispositive.

CV Suspension of Liq Instructions

Suspension of liquidation resumes for all entries of subject merchandise entered on or after Feb. 5, the date that the final ITC affirmative injury determination was published.

Estimated CV Cash Deposit Rates

Commerce will instruct CBP to continue to suspend liquidation of subject merchandise entered on or after Feb. 5, 2019, and require a CV duty cash deposit equal to the following CV rates:

(See the notice for additional details, including the full scope description, etc. See 1811130016 for a summary of the final CV duty determination.)

(Federal Register 03/06/19)