FINAL DETERMINATION IN THE ANTIDUMPING DUTY INVESTIGATION OF CIRCULAR WELDED CARBON QUALITY STEEL LINE PIPE FROM CHINA (A-570-935)

MESSAGE NO: 9090205 DATE: 03 31 2009 CATEGORY: ADA TYPE: FIN REFERENCE: REFERENCE DATE: CASES: A - 570 - 935 - - - - - - - - - - PERIOD COVERED: 11 06 2008 TO LIQ SUSPENSION DATE: TO: DIRECTORS OF FIELD OPERATIONS PORT DIRECTORS FROM: DIRECTOR, SPECIAL ENFORCEMENT RE: FINAL DETERMINATION IN THE ANTIDUMPING DUTY INVESTIGATION OF CIRCULAR WELDED CARBON QUALITY STEEL LINE PIPE FROM CHINA (A-570-935) 1. ON 3/31/09, COMMERCE WILL PUBLISH IN THE FEDERAL REGISTER ITS FINAL DETERMINATION OF SALES AT LESS THAN FAIR VALUE IN THE ANTIDUMPING DUTY INVESTIGATION OF CIRCULAR WELDED CARBON QUALITY STEEL LINE PIPE FROM THE PEOPLES REPUBLIC OF CHINA. 2. THE MERCHANDISE COVERED BY THIS INVESTIGATION IS CIRCULAR WELDED CARBON QUALITY STEEL PIPE OF A KIND USED FOR OIL AND GAS PIPELINES (WELDED LINE PIPE), NOT MORE THAN 406.4 MM (16 INCHES) IN OUTSIDE DIAMETER, REGARDLESS OF WALL THICKNESS, LENGTH, SURFACE FINISH, END FINISH OR STENCILING. THE TERM "CARBON QUALITY STEEL" INCLUDES BOTH CARBON STEEL AND CARBON STEEL MIXED WITH SMALL AMOUNTS OF ALLOYING ELEMENTS THAT MAY EXCEED THE INDIVIDUAL WEIGHT LIMITS FOR NONALLOY STEELS IMPOSED IN THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES (HTSUS). SPECIFICALLY, THE TERM "CARBON QUALITY" INCLUDES PRODUCTS IN WHICH (1) IRON PREDOMINATES BY WEIGHT OVER EACH OF THE OTHER CONTAINED ELEMENTS, (2) THE CARBON CONTENT IS 2 PERCENT OR LESS BY WEIGHT AND (3) NONE OF THE ELEMENTS LISTED BELOW EXCEEDS THE QUANTITY BY WEIGHT RESPECTIVELY INDICATED: 2.00 PERCENT OF MANGANESE, 2.25 PERCENT OF SILICON, 1.00 PERCENT OF COPPER, 0.50 PERCENT OF ALUMINUM, 1.25 PERCENT OF CHROMIUM, 0.30 PERCENT OF COBALT, 0.40 PERCENT OF LEAD, 1.25 PERCENT OF NICKEL, 0.30 PERCENT OF TUNGSTEN, 0.012 PERCENT OF BORON, 0.50 PERCENT OF MOLYBDENUM, 0.15 PERCENT OF NIOBIUM, 0.41 PERCENT OF TITANIUM, 0.15 PERCENT OF VANADIUM, OR 0.15 PERCENT OF ZIRCONIUM. WELDED LINE PIPE IS NORMALLY PRODUCED TO SPECIFICATIONS PUBLISHED BY THE AMERICAN PETROLEUM INSTITUTE (API) (OR COMPARABLE FOREIGN SPECIFICATIONS) INCLUDING API A-25, 5LA, 5LB, AND X GRADES FROM 42 AND ABOVE, AND/OR ANY OTHER PROPRIETARY GRADES OR NON-GRADED MATERIAL. NEVERTHELESS, ALL PIPE MEETING THE PHYSICAL DESCRIPTION SET FORTH ABOVE THAT IS OF A KIND USED IN OIL AND GAS PIPELINES, INCLUDING ALL MULTIPLE-STENCILED PIPE WITH AN API WELDED LINE PIPE STENCIL IS COVERED BY THE SCOPE OF THIS INVESTIGATION. EXCLUDED FROM THIS SCOPE ARE PIPES OF A KIND USED FOR OIL AND GAS PIPELINES THAT ARE MULTIPLE-STENCILED TO A STANDARD AND/OR STRUCTURAL SPECIFICATION AND HAVE ONE OR MORE OF THE FOLLOWING CHARACTERISTICS: IS 32 FEET IN LENGTH OR LESS; IS LESS THAN 2.0 INCHES (50 MM) IN OUTSIDE DIAMETER; HAS A GALVANIZED AND/OR PAINTED SURFACE FINISH; OR HAS A THREADED AND/OR COUPLED END FINISH. (THE TERM "PAINTED" DOES NOT INCLUDE COATINGS TO INHIBIT RUST IN TRANSIT, SUCH AS VARNISH, BUT INCLUDES COATINGS SUCH AS POLYESTER.) THE WELDED LINE PIPE PRODUCTS THAT ARE THE SUBJECT OF THIS INVESTIGATION ARE CURRENTLY CLASSIFIABLE IN THE HTSUS UNDER SUBHEADINGS 7306.19.10.10, 7306.19.10.50, 7306.19.51.10, AND 7306.19.51.50. WHILE HTSUS SUBHEADINGS ARE PROVIDED FOR CONVENIENCE AND CUSTOMS PURPOSES, THE WRITTEN DESCRIPTION OF THE SCOPE OF THIS INVESTIGATION IS DISPOSITIVE. 3. FOR FURTHER REPORTING PURPOSES THIS CASE HAS BEEN ASSIGNED INVESTIGATION NUMBER A-570-935. 4. FOR IMPORTS OF CIRCULAR WELDED CARBON QUALITY STEEL LINE PIPE FROM THE PEOPLES REPUBLIC OF CHINA, CBP SHALL SUSPEND LIQUIDATION OF SUCH SHIPMENTS ENTERED, OR WITHDRAWN FROM WAREHOUSE, FOR CONSUMPTION ON OR AFTER 11/06/2008. 5. WE NOTE THAT, IN THE DEPARTMENT'S FINAL DETERMINATION, THE DEPARTMENT DETERMINED THAT SHANGHAI METALS & MINERALS IMPORT & EXPORT CORP. D/B/A SHANGHAI MINMETALS MATERIALS & PRODUCTS CORP. (A-570-935-002) AND (A-570-935-003) AND BENXI NORTHERN PIPES CO., LTD. (A-570-935-004) AND (A-570-935-005) ARE NO LONGER ENTITLED TO A SEPARATE RATE. THEREFORE, CIRCULAR WELDED CARBON QUALITY STEEL LINE PIPE FROM SHANGHAI METALS & MINERALS IMPORT & EXPORT CORP. D/B/A SHANGHAI MINMETALS MATERIALS & PRODUCTS CORP. AND BENXI NORTHERN PIPES CO., LTD. FROM THE PEOPLE'S REPUBLIC OF CHINA ENTERED, OR WITHDRAWN FROM WAREHOUSE, FOR CONSUMPTION ON OR AFTER 3/31/09, SHOULD ENTER UNDER CASE NUMBER A-570-935-000. THE CASH-DEPOSIT OR BONDING RATE FOR THESE ENTRIES WILL BE THE PRC-WIDE RATE OF 101.10%. 6. EFFECTIVE 3/31/09, CBP SHALL REQUIRE, FOR ENTRIES OF CIRCULAR WELDED CARBON QUALITY STEEL LINE PIPE FROM THE EXPORTER/PRODUCER COMBINATIONS LISTED BELOW, A CASH DEPOSIT OR THE POSTING OF A BOND EQUAL TO THE ANTIDUMPING DUTY RATES SHOWN BELOW: EXPORTER: HULUDAO STEEL PIPE INDUSTRIAL CO., LTD./ HULUDAO CITY STEEL PIPE INDUSTRIAL CO., LTD. PRODUCER: HULUDAO STEEL PIPE INDUSTRIAL CO., LTD./ HULUDAO CITY STEEL PIPE INDUSTRIAL CO., LTD. CASE NUMBER: (A-570-935-001) CASH DEPOSIT RATE: 73.44% EXPORTER: PANGANG GROUP BEIHAI STEEL PIPE CORPORATION PRODUCER: PANGANG GROUP BEIHAI STEEL PIPE CORPORATION CASE NUMBER: (A-570-935-006) CASH DEPOSIT RATE: 73.44% EXPORTER: JIANGSU YULONG STEEL PIPE CO., LTD PRODUCER: JIANGSU YULONG STEEL PIPE CO., LTD CASE NUMBER: (A-570-935-007) CASH DEPOSIT RATE: 73.44% EXPORTER: TIANJIN XINGYUDA IMPORT AND EXPORT CO., LTD. PRODUCER: TIANJIN LIFENGYUANDA STEEL PIPE GROUP CO., LTD. CASE NUMBER: (A-570-935-008) CASH DEPOSIT RATE: 73.44% EXPORTER: PRC-WIDE RATE PRODUCER: PRC-WIDE RATE CASE NUMBER: (A-570-935-000) CASH DEPOSIT RATE: 101.10% HULUDAO STEEL PIPE INDUSTRIAL CO., LTD.'S CASH DEPOSIT RATE HAS BEEN ADJUSTED FOR THE 0.43 PERCENT EXPORT SUBSIDY RATE DETERMINED FOR HULUDAO STEEL PIPE INDUSTRIAL CO., LTD. IN THE COMPANION COUNTERVAILING DUTY INVESTIGATION OF CIRCULAR WELDED CARBON QUALITY STEEL LINE PIPE FROM THE PEOPLES REPUBLIC OF CHINA, 74 FR 4136 (01/23/2009, C-570-936). IN ADDITION, FOR ALL SEPARATE-RATE RECIPIENTS THAT WERE NOT SELECTED AS MANDATORY RESPONDENTS, WE ARE REQUIRING AN ANTIDUMPING CASH DEPOSIT OR THE POSTING OF A BOND FOR EACH ENTRY EQUAL TO THE MARGIN CALCULATED FOR HULUDAO STEEL PIPE INDUSTRIAL CO., LTD., ADJUSTED FOR HULUDAO STEEL PIPE INDUSTRIAL CO., LTD.'s EXPORT SUBSIDY RATE. 7. FOR ALL OTHER ENTRIES OF CIRCULAR WELDED CARBON QUALITY STEEL LINE PIPE, THE FOLLOWING CASH DEPOSIT/BONDING INSTRUCTIONS APPLY: A. FOR ALL PRC EXPORTERS OF CIRCULAR WELDED CARBON QUALITY STEEL LINE PIPE, WHICH HAVE NOT RECEIVED THEIR OWN RATE THE CASH-DEPOSIT OR BONDING RATE WILL BE THE PRC-WIDE RATE. B. FOR ALL NON-PRC EXPORTERS OF CIRCULAR WELDED CARBON QUALITY STEEL LINE PIPE WHICH HAVE NOT RECEIVED THEIR OWN RATE, THE CASH-DEPOSIT OR BONDING RATE WILL BE THE RATE APPLICABLE TO THE PRODUCER/EXPORTER COMBINATIONS THAT SUPPLIED THAT NON-PRC EXPORTER. 8. IN ACCORDANCE WITH T.D. 85-145, AT THE DISCRETION OF CBP, CUSTOMS OFFICERS MAY ACCEPT EITHER A SINGLE-ENTRY BASIC IMPORTATION AND ENTRY BOND OR A CONTINUOUS BASIC IMPORTATION AND ENTRY BOND ONLY IF THE AMOUNT OF THE ESTIMATED ANTIDUMPING OR COUNTERVAILING DUTY IS LESS THAN FIVE PERCENT AD VALOREM (OR THE EQUIVALENT). OTHERWISE, WHERE THE IMPORTER HAS THE OPTION TO POST A BOND FOR ESTIMATED ANTIDUMPING OR COUNTERVAILING DUTIES, CUSTOMS OFFICERS MUST REQUIRE A SINGLE-ENTRY BASIC IMPORTATION AND ENTRY BOND PURSUANT TO T.D. 85-145. YOU ARE INSTRUCTED TO ADHERE TO THE REQUIREMENTS OF T.D. 85-145 WITH RESPECT TO THESE BONDING REQUIREMENTS. 9. IF THERE ARE ANY QUESTIONS REGARDING THIS MATTER BY CBP OFFICERS, THE IMPORTING PUBLIC OR INTERESTED PARTIES, PLEASE CONTACT DAVINA HASHMI OR RON TRENTHAM AT THE OFFICE OF AD/CVD OPERATIONS, IMPORT ADMINISTRATION, INTERNATIONAL TRADE ADMINISTRATION, U.S. DEPARTMENT OF COMMERCE, AT (202) 482-0984 OR (202) 482-3577, RESPECTIVELY (GENERATED BY O4:RP). 10. THERE ARE NO RESTRICTIONS ON THE RELEASE OF THIS INFORMATION. DAVID M. GENOVESE