Russia OCTG: Commerce Issues CV Duty Final Determination
The Commerce Department on Sept. 28 released its final determination in its countervailing duty investigation on oil country tubular goods from Russia (C-821-834). Suspension of liquidation is currently not in effect for entries on or after July 12, 2022, and Commerce will require cash deposits of estimated CV duties on future entries only if it issues a CV duty order (though entries are still suspended under Commerce's concurrent antidumping duty investigation).
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
Before Commerce issues a CV duty order, the International Trade Commission must find injury to U.S. industry in its final injury determination, currently due Nov. 7. In the event of an ITC final determination of no injury, this investigation will be terminated with no duties imposed, and all cash deposits collected as a result of this investigation will be refunded.
Commerce is concurrently issuing a final determination in its AD investigation on OCTG from Russia, setting AD rates at 12.84% to 184.21% for Russian exporters (see 2209280043). The agency also issued a CVD final determination finding countervailing subsidies for OCTG from South Korea (see 2209280033), as well as its final determinations in AD investigations on OCTG from Mexico and Argentina (see 2209280043).
CV Susp/Cash Deposit Through July 11
For now, Commerce has instructed CBP to continue the suspension of liquidation of entries from March 14, 2022, through July 11, 2022.
CV Liq Reinstated and No CV Cash Deposit as of July 12
Commerce previously instructed CBP to discontinue the suspension of liquidation for CV duty purposes and the collection of CV duty cash deposits for subject merchandise entered on or after July 12, 2022, the expiration date of the 120-day “provisional measures” period during which Commerce can suspend liquidation without a CV duty order in place.
Suspension of liquidation remains in effect for AD duty purposes for entries on or after May 11, 2022.
CV Liq to Be Suspended Again and CV Cash Deposit Required If Order Issued
Commerce will issue a CV duty order, reinstate the CV duty suspension of liquidation for all Russian exporters, and require a cash deposit of estimated CV duties for entries of subject merchandise at the revised CV rates listed below if the ITC issues a final affirmative injury determination.
| Manufacturer/Exporter | CV Rate |
|---|---|
| Volzhsky Pipe Plant, Joint Stock Company; Sinarsky Pipe Plant, Joint Stock Company; Seversky Pipe Plant, Joint Stock Company; Taganrog Metallurgical Plant, Joint Stock Company; Orsky Machine Building Plant, Joint Stock Company; and PAO TMK; TMK Neftegasservice-Nizhnevartovsk, Joint Stock Company; TMK Neftegasservice-Buzuluk, Limited Liability Company; Russian Research Institute of the Tube & Pipe Industries, JSC; and Scientific and Technical Center TMK, LLC | 1.3% |
| JSC Vyksa Steel Works; BusinessOptima; Metallolomaya Company OMK – Ecometall; United Metallurgical Company; and Joint-Stock Company Trubodetal | 1.59% |
| All Others | 1.43% |
(Note that there is no CV duty liability, and no CV duties will be assessed, on entries during the “gap period” of July 12 until the date an ITC final affirmative injury determination is published in the Federal Register.)
(The period of investigation is 01/01/20 - 12/31/20. See Commerce's notice for more information, including the scope of the order (unchanged), detailed instructions on cash deposit and assessment rates, changes since the preliminary determination, etc. See 2203110063 for a summary of the preliminary determination of this investigation.)