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OCTG From Brunei, Philippines Made From Chinese Inputs Subject to China AD/CVD, Commerce Says

The Commerce Department finalized its determination that imports of welded oil country tubular goods (OCTG) completed in Brunei or the Philippines are circumventing antidumping and countervailing duties on OCTG from China (A-570-943/C-570-944), it said in final determinations for the anti-circumvention inquiries released Nov. 24.

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The final determinations mean welded OCTG completed in Brunei or the Philippines using inputs manufactured in China and subsequently exported from Brunei or the Philippines to the U.S. are now subject to the AD/CVD orders on OCTG from China. Welded OCTG assembled or completed in Brunei or the Philippines using non-Chinese inputs are not covered by these final determinations, but they are still subject to suspension of liquidation and cash deposit requirements because Commerce is not implementing a process to certify OCTG from Brunei or the Philippines is made from non-Chinese inputs.

Commerce will continue to suspend liquidation and require AD/CV duties for all entries of OCTG from Brunei and the Philippines on or after Nov. 12, 2020, the date Commerce published the notice initiating the proceedings. It will require cash deposits for subject merchandise from Brunei and the Philippines at the AD duty China-wide rate, i.e., 99.14%, and at the CV duty "all others" rate, i.e., 27.08%.

Commerce had in its preliminary determination ordered suspension of liquidation and cash deposit requirements for entries on or after Nov. 3, 2020, which was the signature date of the initiation notice. In its final determination, Commerce found it cannot suspend liquidation prior to the publication date of that notice, so the agency will end suspension of liquidation and refund cash deposits for entries Nov. 3-11, 2020.

Commerce said it will not implement the certification process for OCTG made from non-Chinese inputs because the respondents to this anti-circumvention inquiry were unable to track the origin of their inputs. "However, producers and/or exporters in Brunei or the Philippines may request reconsideration of our denial of the certification process in a future segment of the proceeding, i.e., a changed circumstances review or administrative review," Commerce said.