US Department of Commerce Rescinds Administrative Review of Anti-Dumping Duty on OCTG from China
On January 31, 2025, the US Department of Commerce (USDOC) made a significant decision to rescind the administrative review of the anti-dumping (AD) duty order on oil country tubular goods (OCTG) imported from China. This review was meant to cover the period from May 1, 2023, to April 30, 2024. The administrative review is an essential process through which the USDOC assesses whether the anti-dumping duties on imported goods, like OCTG, should remain in place or be adjusted based on the latest data. However, in this case, the review was canceled due to the absence of relevant product entries from the involved companies during the designated period.
The Basis for Rescinding the Review
The main reason behind the rescinding of the review was the fact that there were no entries of OCTG from China for which liquidation had been suspended during the review period. Specifically, the two companies involved in this review, Petroleum Equipment (Thailand) Co., Ltd. and Thai Oil Pipe Co., Ltd., had no OCTG imports to the US during the period under consideration.
The USDOC’s decision is grounded in the regulation that requires the review of anti-dumping duties only if there are entries of the relevant products during the review period. Since the two companies involved did not have shipments during this timeframe, the review could not proceed.
The Implications of This Decision
Anti-dumping duties are critical to protecting the domestic steel industry from unfair competition by foreign producers who may sell products below fair market value. These duties are imposed on imported goods that are found to be dumped (i.e., sold at unfairly low prices). However, the rescinding of the review means that no changes will be made to the duties imposed on OCTG imports from China for the period between May 2023 and April 2024.
As OCTG products—primarily used in the oil and gas industry for drilling operations—continue to be a focal point of trade disputes, the absence of a review may suggest that there were no significant changes in pricing or import volumes that warranted an adjustment to the anti-dumping duties. The US steel industry, particularly producers of OCTG, will likely continue to monitor the situation, particularly in regard to how it impacts the broader industry and future anti-dumping investigations.
Administrative Review Process and the Role of the USDOC
An administrative review is a regular procedure employed by the USDOC to assess whether anti-dumping duties should be altered based on recent trade activities. During the review period, companies that import goods into the US have the opportunity to provide evidence regarding their transactions. If they believe they were subject to unfair dumping, the USDOC will analyze the data and, based on the findings, adjust the anti-dumping duty rates.
In this case, however, the USDOC determined that there was no need to proceed with the review since there were no entries to evaluate. Without entries, there was no data to determine whether the anti-dumping duty rates required adjustment or continuation.
The Significance of Oil Country Tubular Goods
Oil Country Tubular Goods (OCTG) are essential products used in oil and gas drilling operations. These goods include pipes and tubular products that are integral to the exploration, extraction, and transportation of oil and gas. OCTG is a key segment within the steel industry, and it has seen considerable scrutiny over the years due to its high demand in the global energy market.
The US steel industry produces a significant portion of the OCTG used in the country, but also faces competition from foreign producers, particularly from countries like China and Thailand, which have been the subject of anti-dumping investigations. Given the complexity of pricing, competition, and supply chains in this sector, the decisions surrounding anti-dumping duties on these products are pivotal for maintaining a level playing field for domestic producers.
