US Maintains Tariffs on Chinese Circular Welded Carbon-Quality Steel Pipes
In a recent development, the United States has decided to maintain its anti-dumping and countervailing duty measures on circular welded carbon-quality steel pipes from China. This decision follows an investigation by the US Department of Commerce and the US International Trade Commission, both of which concluded that revoking the existing tariffs would likely result in the continuation or recurrence of dumping practices, countervailable subsidies, and significant harm to the US steel industry.
Circular welded carbon-quality steel pipes are widely used in various industries, including construction, energy, and manufacturing. These pipes are made by welding flat steel into a cylindrical shape and are typically used in the oil and gas industry for transporting liquids and gases. They are considered a crucial part of the steel product portfolio, and the dispute over their importation has been a long-standing issue between the US and China.
Background on Anti-Dumping and Countervailing Duty Measures
The AD and CVD measures are trade remedies imposed to protect domestic industries from unfair trade practices such as dumping, selling goods at prices lower than their production cost, and subsidies from foreign governments. The US initiated these measures on China’s circular welded carbon-quality steel pipes in response to concerns over Chinese companies underpricing their products and benefiting from government subsidies that gave them an unfair advantage in the US market.
The USITC's investigation found that if these measures were revoked, it would likely lead to material injury to the US steel pipe industry, as the Chinese products would be sold at artificially low prices, undermining local manufacturers. Additionally, the USDOC confirmed that Chinese manufacturers continue to benefit from subsidies that distort market competition.
Details of the Tariff Rates
The Chinese manufacturers involved in the trade dispute are subject to varying levels of anti-dumping duties. The weighted average dumping margins for the circular welded carbon-quality steel pipes range from 69.20% to 85.55%. These margins reflect the degree by which Chinese manufacturers have been found to be selling their products at unfairly low prices in the US market.
In addition to the anti-dumping duties, the Chinese manufacturers also face countervailing duties due to the subsidies provided by the Chinese government. The net subsidy rates for these products range from 29.62% to 616.83%. These subsidies, which include direct financial assistance, tax breaks, and other forms of state support, have been deemed to provide Chinese producers with an unfair advantage, allowing them to sell their products below market value.
Harmonized Tariff Schedule and Affected Products
The products involved in this trade dispute fall under various codes in the Harmonized Tariff Schedule of the United States, a system used to classify traded products. The specific statistical reporting numbers for the affected circular welded carbon-quality steel pipes include:
• 7306.30.10.00
• 7306.30.50.25
• 7306.30.50.32
• 7306.30.50.40
• 7306.30.50.55
• 7306.30.50.85
• 7306.30.50.90
• 7306.50.10.00
• 7306.50.50.50
• 7306.50.50.70
• 7306.19.10.10
• 7306.19.10.50
• 7306.19.51.10
• 7306.19.51.50
These codes are used by US customs to track imports and assess applicable duties and tariffs. The ruling affects various steel pipe products that are essential to multiple industries in the US, particularly in sectors like oil and gas, construction, and infrastructure development.