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November 06, 2007 

Commerce Department Makes Preliminary Countervailing Duty Determination on Standard Pipe from China

Today the U.S. Department of Commerce issued a preliminary determination in the countervailing duty investigation on standard pipe from China finding that the Chinese government has been providing subsidies on standard pipe exported to the U.S. (this cases covers standard pipe with an outside diameter of 0.372 inches to 16 inches).

The Commerce Department found that Chinese pipe was subsidized by an average rate of 16.59 percent. Individual rates ranged from a high of 264.98 percent down to zero for one company. Most Chinese producers will be subject to a CVD duty of 16.59 percent. The Department of Commerce also applied critical circumstances, determining that this countervailing duty could be applied retroactively by 90 days.

This is only the second time the U.S. has imposed countervailing duties on Chinese exports and is the first U.S. countervailing duty case covering Chinese steel products. In the recent final determination in the countervailing duty investigation on coated free sheet paper from China, the Commerce Department decided for the first time that imports from China were countervailable.

The countervailing duty investigation was launched as a result of a petition filed by the Ad Hoc Coalition for Fair Pipe Imports From China and the United Steelworkers. The Ad Hoc Coalition includes Allied Tube & Conduit, IPSCO Tubulars, Inc., Northwest Pipe Company, Sharon Tube Company, Western Tube & Conduit Corporation, and Wheatland Tube Company. A preliminary determination in the companion antidumping investigation is due on January 3, 2008.

The Department of Commerce will make final determinations in both the countervailing duty and antidumping duty investigations in mid-March 2008.

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