China Drill Pipe: Final Affirmative CV Determination
The International Trade Administration has made a final affirmative countervailing duty determination that countervailable subsidies are being provided to producers and exporters of drill pipe from China (C-570-966).
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Final CV Critical Circumstances for All Respondents
The ITA preliminarily determined that CV critical circumstances exist for imports of drill pipe from the DP Master Group1, as well for imports of drill pipe from all other exporters from the China. The ITA continues to find that critical circumstances exist with respect to imports of subject merchandise from the DP Master Group and all others.
CV Liquidation Resumed and No Cash Deposits/Bonds as of Oct 9
As a result of its preliminary CV critical circumstances determination, the ITA instructed U.S. Customs and Border Protection to suspend liquidation for CV duty purposes of all entries of subject merchandise from China with a time of entry on or after March 13, 2010 (90 days prior to the publication date of the preliminary determination).
The ITA later issued instructions to CBP to discontinue the suspension of liquidation for CVD purposes for subject merchandise with a time of entry on or after October 9, 2010, but to continue the suspension of liquidation of all entries from June 11, 2010, through October 8, 2010. (The CBP instructions are available here.)
CV Liquidation to be Re-Suspended, Cash Deposits Collected, If CV Order Issued
If the International Trade Commission issues a final affirmative injury determination, the ITA will issue a CV duty order and instruct CBP to suspend liquidation of entries of subject merchandise and to require a cash deposit on all such entries equal to the revised estimated CV duty rates listed below.
| Exporter/Manufacturer | Final CV Rate (Not in Effect) |
|---|---|
| DP Master Manufacturing Co., Ltd.; Jiangyin Sanliang Petroleum Machinery Co., Ltd.; Jiangyin Liangda Drill Pipe Co., Ltd.; Jiangyin Sanliang Steel Pipe Trading Co., Ltd.; and Jiangyin Chuangxin Oil Pipe Fittings Co., Ltd. (collectively, DP Master Group) | 18.18% (from 15.72%) |
| All Others | 18.18% (from 15.72%) |
(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 as a result of the suspension of liquidation will be refunded or canceled.)
ITA Clarifies Scope Language Regarding "Green Tubes" for Drill Pipe
Since the preliminary determination2, 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.
2The 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, 11011129, for BP summary of the companion final antidumping 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 06/11/10 and 08/16/10 news, 10061129 and 10081617, for BP summaries of the preliminary CV duty determination and the preliminary determination of CV critical circumstances.)
ITA contact -- Kristen Johnson (202) 482-4793
(FR Pub 01/11/11, ITA Case No. C-570-966)