U.S. Department of Commerce Initiates Antidumping and Countervailing Duty Investigations of Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe from The Czech Republic (AD), Russia (AD/CVD), South Korea (AD/CVD), And Ukraine (AD)
For Immediate Release
July 29, 2020
Contact: ITA Office of Public Affairs
WASHINGTON – Today, the U.S. Department of Commerce announced the initiation of new antidumping (AD) investigations on imports of seamless carbon and alloy steel standard, line, and pressure pipe (seamless pipe) from the Czech Republic, Russia, South Korea (Korea), and Ukraine, and countervailing duty (CVD) investigations for these products from Russia and Korea.
The petitions were filed by Vallourec Star, LP (Houston, Texas).
In the AD investigations, Commerce will determine whether imports of seamless pipe from the Czech Republic, Russia, Korea, and Ukraine are being dumped in the U.S. market at less-than-fair value. The alleged dumping margins range from 50.45 to 51.70 percent, 41.07 to 273.47 percent, 114.80 to 131.31 percent, and 42.38 to 42.88 percent for the Czech Republic, Russia, Korea, and Ukraine, respectively.
In the Russia and Korea CVD investigations, Commerce will determine whether Russian and Korean producers of subject merchandise are receiving unfair government subsidies. For Russia, Commerce will investigate 11 subsidy programs, including preferential lending, grant programs, and the provision of natural gas for less than adequate remuneration. For Korea, Commerce will investigate 38 subsidy programs, including preferential lending, tax programs, export insurance, grants, and electricity subsidies.
If Commerce 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 seamless pipe from the Czech Republic, Russia, Korea, and/or Ukraine materially injure, or threaten material injury to, the U.S. industry, Commerce will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.
The 2019, imports of seamless pipe from the Czech Republic, Russia, Korea, and Ukraine were approximately valued at $37.1 million, $39.5 million, $24.4 million, and $40.6 million respectively.
During Commerce’s investigations into whether seamless pipe from the Czech Republic, Russia, Korea, and/or Ukraine are being dumped and/or unfairly subsidized, the ITC will conduct its own investigations into whether the U.S. industry and its workforce are being injured by such imports. The ITC will make its preliminary determinations by August 24. If the ITC preliminarily determines that there is a reasonable indication of material injury or threat of material injury, then Commerce’s investigations will continue, with the preliminary CVD determinations scheduled to be announced October 2, and the preliminary AD determinations scheduled to be announced December 16, unless these deadlines are extended.
If Commerce 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 subject merchandise from Czech Republic, Russia, Korea, and/or Ukraine, as appropriate.
Final determinations by Commerce in these cases are scheduled to be announced December 16, for the CVD investigations, and March 2, 2021, for the AD investigations, but these dates may be extended. If Commerce finds that products are not being dumped or unfairly subsidized, or the ITC finds no injury to the U.S. industry, then the investigations will be terminated, and no duties will be applied.
The strict enforcement of U.S. trade law is a primary focus of the Trump administration. Since the beginning of the current administration, Commerce has initiated 279 new AD and CVD investigations – a 258 percent increase from the comparable period in the previous administration.
The AD and CVD laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing and unfair subsidization of imports into the United States. Commerce currently maintains 531 AD and CVD orders which provide relief to American companies and industries impacted by unfair trade.
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 AD duties. Foreign companies that receive financial assistance from foreign governments that benefits their production of goods, and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods, are subject to CVD duties.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based on factual evidence provided on the record.