China Drill Pipe: Preliminary Affirmative AD Duty Determination
The International Trade Administration has made a preliminary affirmative antidumping determination that drill pipe from China is being, or is likely to be, sold in the U.S. at less than fair value.
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(The ITA has also published a correction notice simultaneously with its preliminary determination, as the preliminary determination notice lists incorrect rates for Baoshan and the separate rate respondents. The correct rates are listed in the table below.)
Combination Rates
The ITA has calculated combination rates for respondents that are eligible for a separate rate in this investigation. (See ITT's Online Archives or 04/11/05 news, 05041110, for BP summary of the 2005 policy bulletin outlining this change in practice with regard to AD combination rates for non-market economies (NMEs).)
Preliminary Critical Circumstances Determination
The ITA preliminarily finds that there is a reasonable basis to believe or suspect that critical circumstances exist for imports of the merchandise under investigation from the DP-Master Group, the separate rate applicants and the China-wide entity in this AD duty investigation.
The ITA preliminarily finds that critical circumstances do not exist with respect to mandatory respondent Boashan.
(The ITA has preliminary found an estimated AD duty rate of zero for mandatory respondent Yida, therefore it will not instruct CBP to suspend liquidation of any entries by Yida.)
AD Suspension of Liquidation Instructions
The ITA will instruct CBP to suspend liquidation of all entries of drill pipe from China from the DP-Master Group, the separate rate respondents, and the China-wide entity with a time of entry on or after May 20, 2010 (90 days prior to the publication date of the preliminary determination).
The ITA will instruct CBP to suspend liquidation of all entries by Baoshan with a time of entry on or after August 18, 2010.
AD Cash Deposit/Bond Requirements
The ITA will instruct CBP to require a cash deposit or the posting of a bond for entries of drill pipe from China for the following exporter/producer combinations with a time of entry on or after August 18, 2010 at the AD duty rates below.
(Note that DP-Master Group’s AD duty rate will be reduced for an export subsidy1.)
| Exporter | Prelim AD Rate |
|---|---|
| DP-Master Manufacturing Co., Ltd. and Jiangyin Liangda Drill Pipe Co., Ltd. (the DP-Master Group) | 206.00% (to be adjusted) |
| Baoshan Iron & Steel Co., Ltd. | 2.66% |
| Shanxi Yida Special Steel Imp. & Exp. Co., Ltd. | 0.00%2 |
| Shanxi Fenglei Drilling Tools Co., Ltd. | 104.33% |
| Jiangsu Shuguang Huayang Drilling Tool, Co. Ltd. | 104.33% |
| Jiangyin Long-Bright Drill Pipe Manufacturing Co., Ltd. | 104.33% |
| China-wide entity | 429.29% |
1Because the ITA has determined that subject merchandise exported and produced by the DP-Master Group benefitted from an export subsidy, its AD duty rate will be reduced for the export subsidy portion of the rate determined in the preliminary countervailing duty determination. (See future issue of ITT for the adjusted rates pursuant to the ITA’s CBP instructions.)
2The ITA has found a preliminary AD duty rate of zero for Shanxi Yida; therefore, no cash deposit is currently required for this exporter/producer.
ITA Considers Removing Certain Green Tubes for Drill Pipe from Scope
The ITA has concerns regarding the definition of “green tubes suitable for drill pipe” currently contained in the scope of the AD and CV duty investigations, and how to distinguish upon entry into the U.S. green tube for drill pipe from green tube covered under the orders on oil country tubular goods (OCTGs) from China. At this time, the ITA will continue to include “green tubes suitable for drill pipe”; however, it will request additional information regarding distinguishing characteristics.
Unless specific characteristics are provided which distinguish between green tube for drill pipe and green tube for casing and tubing, all green tubes (other than green tube drill collars) will be removed from the scope of the AD and CV duty investigations on drill pipe from China and will instead be considered as covered under the existing AD and CV duty orders on OCTGs from China.
Due Date for Final AD Determination Postponed
The ITA is also postponing the due date for the final AD duty determination until no later than 135 days after August 18, 2010. Suspension of liquidation will be extended accordingly.
(See ITA notice for additional information, including the scope of the order (which is currently unchanged from the initiation notice), etc.
See ITT’s Online Archives or 08/09/10 and 08/17/10 news, 10080926 and 10081708, for BP summaries of the ITA’s original and corrected fact sheets on this preliminary determination.
See ITT’s Online Archives or 01/28/10 and 01/27/10 news, 10012840 and 10012735, for BP summaries of the ITA’s initiation of this investigation and the companion CV duty investigation.
See ITT’s Online Archives or 06/11/10 news, 10061129, for BP summary of the preliminary CV duty determination.)
ITA contact -- Toni Dach (202) 482-1655
(FR Pub 08/18/10, ITA Case No. A-570-965)
The ITA’s correction notice is available here.
(This ITT summary was revised on 01/11/11 to clarify the ITA'a preliminary critical circumstances determination and the dates for the suspension of liquidation instructions.)