Commerce imposes duties on mechanical tubing imports

The Commerce Department on Wednesday said it will impose countervailing duties on imports of cold-drawn mechanical tubing from China and India after affirming that these goods received unfair government subsidies.

   The Commerce Department on Wednesday said it will impose countervailing duties on imports of cold-drawn mechanical tubing from China and India after affirming that these goods received unfair government subsidies.
   Commerce calculated a preliminary subsidy rate of 35.69 percent for China’s Jiangsu Hongyi Steel Pipe Co. Ltd. and 33.31 percent for Zhangjiagang Huacheng Import & Export Co. Ltd. The department also set a countervailing duty rate of 34.5 percent for all other Chinese producers and exports.
   In its India investigation, Commerce calculated a preliminary subsidy rate of 8.09 percent for Goodluck India Ltd. and 3.04 percent for Tube Investments of India Ltd. The department also set a rate of 5.99 percent for all other Indian producers and exporters of the product.
   Countervailable subsidies are given by foreign governments to companies to encourage exports or the use of domestic materials over imports.  
   Commerce will now instruct Customs and Border Protection to collect cash deposits from importers of cold-drawn mechanical tubing from the two countries based on the preliminary rates.
   According to the department, cold-drawn mechanical tubing imports from China and India in 2016 were valued at $29.4 million and $25 million, respectively.
   The petitioners for the countervailing duty investigations included ArcelorMittal Tubular Products of Ohio, Michigan Seamless Tube of Michigan, PTC Alliance Corp. and Zekelman Industries of Pennsylania, and Webco Industries of Oklahoma.
   Commerce is scheduled to make its final determinations in these countervailing duty investigations by Dec. 4. If Commerce makes affirmative final determinations, and the U.S. International Trade Commission (ITC) also makes affirmative final determinations that these imports from China and India harm domestic industry, Commerce will then issue countervailing duty orders. If either agency’s final determinations are negative, no orders will be issued. The ITC is scheduled to make its final injury determinations by Dec. 26.