Turkey 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 Turkey (C-489-834). 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.

Originating from AD/CV duty investigations on all forms of large diameter welded pipe, the order comes with a revised scope due to an International Trade Commission determination that only illegally subsidized structural pipe from Turkey, and not line or stainless steel pipe, injures U.S. industry (see 1904080015). The agency will order all entries of line and stainless steel pipe from Greece liquidated without AD duties, and this AD duty order does not cover line or stainless steel pipe.

Similarly, the ITC found 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. The ITC found only dumped line pipe from Greece, and not structural pipe, injures U.S. industry. As a result, concurrent with this CV duty orders on structural pipe from Turkey, Commerce is issuing AD duty orders on line and structural pipe from Canada, Turkey and South Korea and a CV duty order on line and structural pipe from South Korea (see 1905010149), as well as an AD duty order covering only line pipe from Greece (see 1905010120).

Borusan Mannesmann Boru Sanayi ve Ticaret A.S. and its affiliates Borusan Mannesmann Boru Yatirim Holding A.S. and Borusan Holding A.S. received a zero percent CV duty rate in this CV duty investigation. As a result, Borusan and its affiliates are permanently exempt from the CV duty order on large diameter welded carbon and alloy steel structural pipe from Turkey.

The order details a "gap period" of no CV duty liability for subject merchandise entered Oct. 27, 2018, through April 18, 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 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).

Cash Deposits Refunded for Line, Stainless Steel Pipe

As a result of the ITC's negative injury determination on illegally subsidized line and stainless steel pipe from Turkey, Commerce will terminate suspension of liquidation of any entries of line and stainless steel pipe from Turkey for CV duty purposes (line pipe is still suspended under the AD duty order on Turkey), and refund any cash deposits collected on entries as a result of this AD duty investigation.

The revised scope of this CV duty order covering large diameter welded carbon and alloy steel structural pipe from Turkey 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 inscope 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. Also excluded from the scope are any products covered by the existing countervailing duty order on welded line pipe from the Republic of Turkey. See Welded Line Pipe from the Republic of Turkey: Countervailing Duty Order, 80 FR 75054 (December 1, 2015).

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 April 19, 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 April 19, 2019, and require a CV duty cash deposit equal to the following CV rates:

*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 Turkish large diameter structural pipe do not apply to these companies.

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

(Federal Register 05/02/19)