Commerce Finds Preliminary Countervailable Subsidization of Imports of Welded Line Pipe from Turkey and No Subsidization From Korea

On March 17, 2015, the Department of Commerce (Commerce) announced its affirmative preliminary determination in the countervailing duty (CVD) investigation of imports of welded line pipe from the Republic of Turkey (Turkey) and its negative preliminary determination in the CVD investigation of imports of welded line pipe from the Republic of Korea (Korea).  In the Korea investigation, Commerce preliminarily determined that the investigation’s mandatory respondents NEXTEEL Co. Ltd. and SeAH Steel Corporation received subsidy rates of 0.47 percent and 0.52 percent, respectively.  These rates are considered de minimis and thus result in a negative preliminary determination that applies to the country of Korea as a whole.

In the Turkey investigation, Commerce preliminarily determined that the mandatory respondents Borusan Mannesmann Boru Sanayi ve Ticaret A.S. and Tosyali Dis Ticaret A.S. received subsidy rates of 8.85 percent and 3.76 percent, respectively.  All other producers/exporters of welded line pipe from Turkey have been a preliminary subsidy rate of 4.36 percent.  As a result of these preliminary determinations Commerce will instruct U.S. Customs and Border Protection (CBP) to require cash deposits based on these preliminary rates on imports from Turkey but no cash deposit will be required on imports from Korea.

The merchandise covered by these investigations is circular welded carbon and alloy steel (other than stainless steel) pipe of a kind used for oil or gas pipelines (welded line pipe), not more than 24 inches in nominal outside diameter, regardless of wall thickness, length, surface finish, end finish, or stenciling. Welded line pipe is normally produced to the American Petroleum Institute (API) specification 5L, but can be produced to comparable foreign specifications, to proprietary grades, or can be non-graded material. All pipe meeting the physical description set forth above, including multiple-stenciled pipe with an API or comparable foreign specification line pipe stencil is covered by the scope of these investigations.

In 2014, imports of welded line pipe from Korea and Turkey were valued at an estimated $543.6 million and $94.7 million, respectively.

Commerce is scheduled to announce its final determinations in this CVD investigation and the concurrent antidumping duty investigations of welded line pipe from Turkey and Korea on or about July 29, 2015, unless the statutory deadline is extended.  If Commerce makes affirmative final CVD determinations and the U.S. International Trade Commission (ITC) makes affirmative final determinations that imports of welded line pipe from Korea and/or Turkey materially injure, or threaten material injury to the domestic industry, Commerce will then issue CVD orders.  However, If either the Commerce or ITC final determinations are negative, no CVD orders will be issued.  The ITC is scheduled to make its final injury determinations in September 2015.  For more information on the AD/CVD process, please visit the Antidumping Fundamentals page.

If you have questions about AD/CVD investigations, please contact Frohsin & Barger at (205)-933-4006 ext. 5.