China Drill Pipe: Final Affirmative AD Determination

Combination Rates

The ITA has calculated combination rates for respondents that are eligible for a separate rate in this AD investigation. (See ITT's Online Archives or 04/11/05 news, 05041110, for BP summary of 2005 policy bulletin outlining this change in practice with regard to AD combination rates for non-market economies (NMEs).)

Final AD Critical Circumstances Determination for China-Wide Entity Only

The ITA has made a final determination that AD critical circumstances exist with respect to imports of drill pipe for the China-wide entity only. (It preliminarily found that AD critical circumstances existed for all but mandatory respondents Baoshan and Yida.)

AD Suspension of Liquidation Instructions

China-wide entity. As a result, the ITA will instruct CBP to continue the suspension of liquidation and cash deposit/bond requirements for AD duty purposes of all entries of subject merchandise by the China-wide entity with a time of entry on or after May 20, 2010.

DP-Master Group, separate rate. Pursuant to its final determination of no AD critical circumstances for the DP-Master Group¹ and the separate rate respondents, the ITA will instruct U.S. Customs and Border Protection to continue the suspension of liquidation and cash deposit/bond requirements for AD duty purposes of all entries by the DP-Master Group and the separate rate respondents with a time of entry on or after August 18, 2010.

The ITA will instruct CBP to terminate AD suspension of liquidation and to release any bond or other security, and refund any cash deposit made, to secure the payment of estimated AD duties with respect to entries from these respondents with a time of entry on or after May 20, 2010 (90 days prior to the publication date of the preliminary determination) through August 17, 2010.

Baoshan, Yida. Because the ITA has now found a final de minimis AD duty rate for mandatory respondent Baoshan, and continues to find a de minimis AD duty rate for mandatory respondent Yida, it will continue to instruct CBP to not suspend, for AD purposes, liquidation or require an AD cash deposit or bond for any entries of drill pipe from Yida. For Baoshan, the ITA is expected to instruct CBP to discontinue AD suspension of liquidation and release any bond or other security, and refund any AD cash deposit made, to secure the payment of estimated AD duties with respect to entries with a time of entry on or after August 18, 2010.

Estimated AD Cash Deposit/Bond Requirements

The ITA will also instruct CBP to collect AD duty cash deposits or bonds on all entries of subject merchandise from China with a time of entry on or after January 11, 2011 at the revised estimated AD duty rates below.

(Note that DP-Master Group’s AD duty rate, as well as the AD duty rate for the separate rate respondents (i.e., all except mandatory respondents Baoshan and Yida) have been reduced for export subsidies².)

(If the International Trade Commission issues a final affirmative injury determination, the ITA will issue an AD duty order. If the ITC determines that material injury or threat of material injury does not exist, this proceeding will be terminated and all estimated duties deposited or securities posted will be refunded or canceled.)

ITA Clarifies Scope Language Regarding "Green Tubes" for Drill Pipe

Since the preliminary determination⁴, the ITA has clarified the language of the scope of this investigation regarding drill pipe green tubes and drill collar green tubes in order to provide a physical and chemical description of drill pipe green tubes, as follows:

"The products covered by the investigation are steel drill pipe, and steel drill collars, whether or not conforming to American Petroleum Institute (API) or non-API specifications. Included are finished drill pipe and drill collars without regard to the specific chemistry of the steel (i.e., carbon, stainless steel, or other alloy steel), and without regard to length or outer diameter.

Also included are unfinished drill collars (including all drill collar green tubes) and unfinished drill pipe (including drill pipe green tubes, which are tubes meeting the following description: seamless tubes with an outer diameter of less than or equal to 6 5/8 inches (168.28 millimeters), containing between 0.16 and 0.75 percent molybdenum, and containing between 0.75 and 1.45 percent chromium). The scope does not include tool joints not attached to the drill pipe, nor does it include unfinished tubes for casing or tubing covered by any other antidumping or countervailing duty order."

(Note that the scope of possible HTS classifications is unchanged from the preliminary determination.)

¹The ITA notes that both the AD and CV duty investigations refer to their collective mandatory respondent as “DP Master Group,” but for investigation purposes, the entities that each group is composed of differ slightly.

²Because the ITA has determined that subject merchandise exported and produced by the DP-Master Group benefitted from an export subsidy, its AD duty rate, as well as the rate for the separate rate respondents, has been reduced for DP-Master Group's export subsidy portion of the rate determined in the final countervailing duty determination.

³The ITA has found final de minimis AD duty rates for Baoshan and Yida; therefore, a cash deposit is no longer required for Baoshan, and continues to not be required for Yida. (Note that Yida's preliminary AD duty rate was listed as 0.00%.). If there are no amendments for these two mandatory respondents, they will be excluded from any AD order.

⁴The preliminary scope of the investigation stated that: "The products covered by the investigation are steel drill pipe, and steel drill collars, whether or not conforming to American Petroleum Institute (API) or non-API specifications, whether finished or unfinished (including green tubes suitable for drill pipe), without regard to the specific chemistry of the steel (i.e., carbon, stainless steel, or other alloy steel), and without regard to length or outer diameter. The scope does not include tool joints not attached to the drill pipe, nor does it include unfinished tubes for casing or tubing covered by any other antidumping or countervailing duty order."

(See ITA notice for additional information, including the scope of the order, etc.

See ITT's Online Archives or 01/11/11 news, 11011123, for BP summary of the companion final countervailing duty determination.

See ITT’s Online Archives or 01/05/11 news, 11010515, for BP summary of the fact sheet announcing this final determination.

See ITT’s Online Archives or 08/18/10 and 09/13/10 news, 10081818 and 10091301, for BP summaries of the preliminary AD duty determination and the adjusted AD rate for DP-Master Group.)

ITA contact -- Toni Dach (202) 482-1655

(FR Pub 01/11/11, ITA Case No. A-570-965)