India OCTG: Commerce Issues Final CV Duty Determination
The Commerce Department issued its final affirmative countervailing duty determination on oil country tubular goods from India (C-533-858). For most companies, the "provisional measures" period during which Commerce can suspend liquidation and collect cash deposits without a CV duty order in place expired on April 21, so suspension of liquidation for CV purposes and CV duty cash deposit requirements for those companies are no longer in effect and will only be reinstated if Commerce issues a CV duty order. But for Jindal SAW, which saw its rate rise from zero to 19.11% in this final determination, Commerce will direct CBP to suspend liquidation and begin collecting cash deposits on subject merchandise entered on or after April 19.
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(Commerce also issued a final affirmative determination in the companion antidumping duty investigation (see 14071412).
Suspension of Liquidation Begins for Jindal SAW, Retroactive 90 Days
Commerce found "critical circumstances" exist for Jindal SAW, because the company allegedly ramped up sales of subject merchandise in the U.S. during the run-up to the preliminary determination in an attempt to get in as much product as possible before duties were imposed. But in the preliminary determination, the company got a zero percent CV duty rate, so Commerce never suspended liquidation of entries from the company. With Jindal SAW's rate rising above zero for the first time in this final determination, Commerce will now direct CBP to suspend liquidation and require CV duty cash deposits on subject merchandise from Jindal SAW, and will make suspension of liquidation and cash deposit requirements retroactive 90 days back to April 19.
For Others, CV Susp/Cash Deposit Ended April 21, Liquidation Reinstated April 22
For all Indian companies except Jindal SAW (i.e., GVN/MSL/JPL and the "all others" companies), Commerce will instruct CBP to continue the suspension of liquidation of entries from all Indian companies except Jindal SAW from Dec. 23, 2013, through April 21, 2014. Commerce previously instructed CBP to discontinue the suspension of liquidation for CV duty purposes and the collection of CV duty cash deposits or bonds for subject merchandise entered on or after April 22.
In a change from its preliminary determination, Commerce found that critical circumstances also exist for the "all others" companies not individually reviewed (i.e., all Indian companies except Jindal SAW and GVN/MSL/JPL). The provisional measures period for "all others" companies has expired, so the decision won't affect "all others" entries for now. But if Commerce reinstates duties by issuing a CV duty order, it will direct CBP to suspend liquidation and require CV duty cash deposits from the "all others" companies back to Sept. 24.
CV Liq to be Suspended Again & CV Cash Deposit Required if Order Issued
Commerce will issue a CV duty order, reinstate the suspension of liquidation for GVN/MSL/JPL and the "all others" companies, and require a cash deposit of estimated CV duties for entries of subject merchandise at the revised CV rates listed below if the International Trade Commission issues a final affirmative injury determination (due by Aug. 25).
| Company | CV Rate |
| GVN Fuels Limited / Maharashtra Seamless Limited / Jindal Pipes Limited (GVN/MSL/JPL) | 5.67% (from 3.5%) |
| Jindal SAW | 19.11% (from zero) |
| All Others | 12.39% (from 3.5%) |
(Note that for GVN/MSL/JPL and the "all others" companies, there is no CV duty liability during the "gap period" of April 22 until the date an ITC final affirmative injury determination is published in the Federal Register.)
(The period of investigation is 01/01/12 -- 12/31/12. See Commerce's notice for more information, including the scope of the order, detailed instructions on cash deposit and assessment rates, changes since the preliminary determination, etc. See 13122019 for summary of the preliminary determination of this investigation, and 14012423 for Commerce's preliminary finding of critical circumstances.
AD/CVD Operations contact -- Myrna Lobo (202) 482-2371
(Federal Register 07/18/14)