Today, U.S. Secretary of Commerce Wilbur Ross announced the initiation of new antidumping duty (AD) and countervailing duty (CVD) investigations to determine whether imports of large diameter welded pipe from Canada, China, Greece, India, Korea, and Turkey are being dumped in the United States and/or if producers are receiving unfair subsidies.
“With an 81 percent increase in trade cases initiated since President Trump took office, this Administration has made it clear that we will vigorously administer antidumping and countervailing duty laws,” said Secretary Ross. “When initiating a trade investigation, the Department of Commerce begins an open and transparent process that allows American companies and workers to gain relief from the market-distorting effects of injurious dumping and subsidization of imports.”
These AD and CVD investigations were initiated based on petitions filed by American Cast Iron Pipe Company (Birmingham, AL), Berg Steel Pipe Corp. (Panama City, FL), Dura-Bond Industries (Steelton, PA), Skyline Steel (Parsippany, NJ), and Stupp Corporation (Baton Rouge, LA). The estimated dumping margins alleged by the petitioners are 50.89 percent for Canada, 41.04 percent for Greece, 120.84 to 132.63 percent for China, 37.94 percent for India, 16.18 to 20.39 percent for Korea, and 66.09 percent for Turkey. The unfair subsidy programs alleged include export subsidies, inputs for less-than-adequate-remuneration, tax incentives, and subsidized loans from China, India, Korea, and Turkey.
In the AD investigations, the Commerce Department will determine whether imports of large diameter welded pipe from Canada, Greece, China, India, Korea, and/or Turkey are being dumped in the U.S. market at less than fair value.
In the CVD investigations, the Commerce Department will determine whether imports of large diameter welded pipe from China, India, Korea, and/or Turkey are receiving government subsidies.
If the Commerce Department makes affirmative findings in these investigations, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized U.S. imports of large diameter welded pipe from Canada, Greece, China, India, Korea, and/or Turkey are causing injury to the U.S. industry, the Commerce Department will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.
In 2016, imports of large diameter welded pipe from Canada, China, India, Greece, Korea, and Turkey were valued at an estimated $66 million, $139 million, $26 million, $70 million, $150.3 million, and $116.1 million, respectively.
From January 20, 2017, through February 9, 2018, the Commerce Department has initiated 94 antidumping and countervailing duty investigations – an 81 percent increase from the previous period. The Commerce Department currently maintains 424 AD and CVD orders which provide relief to American companies and industries impacted by unfair trade.
Click HERE for a fact sheet on these initiations.
During the Commerce Department’s investigations into whether large diameter welded pipe is being dumped and/or unfairly subsidized, the ITC will conduct its own investigations into whether the U.S. industry and its workforce are being harmed by such imports. The ITC will make its preliminary determinations on or before March 5, 2018. If the ITC preliminarily determines that there is injury or threat of injury, then the Commerce Department investigations will continue, with preliminary CVD determinations scheduled for April 16, 2018, and preliminary AD determinations scheduled for June 29, 2018, unless these deadlines are extended.
If the Commerce Department preliminarily determines that dumping and/or unfair subsidization is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing large diameter welded pipe from Canada, Greece, China, India, Korea, and/or Turkey.
Final determinations by the Commerce Department in these cases are scheduled for July 2, 2018, for the CVD investigations, and September 12, 2018, for the AD investigations, but those dates may be extended. If the Commerce Department finds that the imports subject to the investigations are not being dumped or unfairly subsidized, or the ITC finds in its final determinations there is no harm to the U.S. industry, then the investigations will be terminated and no duties will be applied.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to “antidumping” duties. Companies that receive unfair subsidies from their governments, such as grants, loans, equity infusions, tax breaks and production inputs, are subject to “countervailing duties” aimed at directly countering those subsidies.