Large Diameter Line and Structural Pipe: Details of AD/CV Duty Orders, Amended Rates

The Commerce Department issued antidumping duty orders on large diameter welded carbon and alloy steel line and structural pipe from Canada (A-122-863), Turkey (A-489-833) and South Korea (A-580-897), and a countervailing duty order on large diameter welded carbon and alloy steel line and structural pipe from South Korea (C-580-898). The orders set permanent antidumping and 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 AD/CV duties on importers and make changes to cash deposit rates.

Originating from AD/CV duty investigations on all forms of large diameter welded pipe, the orders come with a revised scope due to an International Trade Commission determination that only dumped structural and line pipe from Canada, Turkey and South Korea, and illegally subsidized structural and line pipe from South Korea, injures U.S. industry (see 1904080015). The ITC found only illegally subsidized structural pipe from Turkey, and not line pipe, injures U.S. industry, and that only dumped line pipe from Greece, and not structural pipe, causes injury. It also found no injury from stainless steel pipe imported from any of these countries. As a result, concurrent with these AD/CV duty orders on line and structural pipe, Commerce is issuing a CV duty order covering only structural pipe from Turkey (see 1905010136), and an AD duty order covering only line pipe from Greece (see 1905010120). The agency will order all entries of stainless steel pipe from these four countries liquidated without AD/CV duties, and these AD/CV duty orders do not cover stainless steel pipe.

Husteel and Hyundai Steel Company each received zero percent CV duty rates in the CV duty investigation on South Korea. As a result, these companies are permanently exempt from the CV duty order on large diameter welded carbon and alloy steel line and structural pipe from South Korea.

The orders detail a "gap period" of no CV duty liability for subject merchandise from South Korea entered Oct. 27, 2018, through April 18, 2019, and of no AD duty liability for subject merchandise from Canada, Turkey and South Korea entered Feb. 23, 2019, through April 18, 2019. Commerce may only suspend liquidation for a four-month period after its preliminary CV duty determination, issued June 29, 2018, and for six months after its preliminary AD duty determinations, issued Aug. 27, 2018. Commerce will order CBP to liquidate, without regard to AD or CV duties, any entries during these respective gap periods. Subject merchandise entered during the CV duty gap period but outside the AD duty gap period (i.e., Oct. 27, 2018, through Feb. 22, 2019) will only be assessed AD duties.

(NOTE: Though the CV duty order on South Korea says the gap period began Oct. 27, the liquidation instructions issued by Commerce to CBP say the gap period began Oct. 26.)

Commerce already issued AD/CV duty orders on welded line pipe from China and India. The ITC also issued a mixed verdict for those two countries, so the CV duty order on China applies only to structural pipe (see 1903070022); the AD/CV duty orders on India apply only to line pipe (see 1903070018); and the AD duty order on China applies to both line and structural pipe (see 1903070019).

Scope Revised; Cash Deposits Refunded for Stainless Steel Pipe

As a result of the ITC's negative injury determination on stainless steel pipe from all four of these countries, Commerce will terminate suspension of liquidation of any entries of stainless steel pipe, and refund any cash deposits collected on entries as a result of these AD/CV duty investigations.

The revised scope of these AD/CV duty orders covering large diameter welded carbon and alloy steel line and structural pipe is as follows:

The merchandise covered by this order is welded carbon and alloy steel pipe (other than stainless steel pipe), more than 406.4 mm (16 inches) in nominal outside diameter (large diameter welded pipe), regardless of wall thickness, length, surface finish, grade, end finish, or stenciling. Large diameter welded pipe may be used to transport oil, gas, slurry, steam, or other fluids, liquids, or gases. It may also 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 pipe used to transport oil, gas, or natural gas liquids is normally produced to the American Petroleum Institute (API) specification 5L. Large diameter welded pipe may also 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 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 pipe meeting the physical description set forth above is covered by the scope of this order, whether or not produced according to a particular standard.

Subject merchandise also includes large diameter welded 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 pipe.

Excluded from the scope are any products covered by the existing antidumping duty order on welded line pipe from the Republic of Korea. See Welded Line Pipe from the Republic of Korea and the Republic of Turkey: Antidumping Duty Orders, 80 FR 75056 (December 1, 2015).

Excluded from the scope are any products covered by the existing antidumping duty order on welded line pipe from the Republic of Turkey. See Welded Line Pipe from the Republic of Korea and the Republic of Turkey: Antidumping Duty Orders, 80 FR 75056 (December 1, 2015).

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

(NOTE: The exclusions for products covered by the AD duty orders on welded line pipe from South Korea and Turkey are only included in the scopes of the AD duty orders on large diameter welded carbon and alloy steel line and structural pipe from South Korea and Turkey, respectively.)

AD/CV Suspension of Liq Instructions

Suspension of liquidation resumes for all entries of subject merchandise entered on or after April 19, the publication date of the final ITC affirmative injury determination.

CV Cash Deposit Instructions

Commerce will require importers to pay CV duty cash deposits for all entries from South Korea on or after April 19 at the following rates:

South Korea

*These companies are exempt from this CV duty order as a result of their zero rates. Suspension of liquidation and cash deposit instructions otherwise covering South Korean large diameter line and structural pipe do not apply to these companies.

AD Cash Deposit Instructions

An AD cash deposit requirement is also in effect for subject merchandise entered on or after April 19, equal to the rates listed below (as amended for South Korea and Turkey):

Canada

South Korea

*As adjusted for export subsidies found in the CV duty investigation. This rate now serves as the AD duty cash deposit rate for large diameter welded carbon and alloy steel line and structural pipe from South Korea.

Turkey

*As adjusted for export subsidies found in the CV duty investigation. This rate now serves as the AD duty cash deposit rate for large diameter welded carbon and alloy steel line and structural pipe from Turkey.

(See the notice for additional details, including the full scope description, etc. See 1902260028 for a summary of the final AD duty determinations, and 1902260026 for a summary of the final CV duty determination.)

(Federal Register 5/02/19)