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For Immediate Release: May 30, 2008
Contact: Brittany Eck  (202) 482-3809

COMMERCE FINDS UNFAIR DUMPING AND SUBSIDIZATION OF STANDARD PIPE FROM CHINA

WASHINGTON – The U.S. Department of Commerce today announced its final affirmative determinations in the antidumping (AD) and countervailing (CVD) duty investigations on imports of standard pipe from China. Standard pipe is used for carrying water, steam, natural gas, air and other liquids and gases in plumbing and heating systems, air conditioning units and automatic sprinkler systems.

Commerce determined that Chinese exporters have sold standard pipe in the United States at less than normal value and received actionable subsidies. The Shuangjie Group and Jiangsu Yulong Steel Pipe Co., mandatory respondents in the AD investigation, withdrew their participation and received an 85.55 percent antidumping rate based on total adverse facts available. Thirty-one other companies were awarded separate antidumping rates of 69.20 percent. The China-wide antidumping rate of 85.55 percent will be applied to all other exporters.

In the CVD investigation, Commerce calculated final margins for the two Chinese mandatory respondents Weifang East Steel Pipe Co. at 29.57 percent, and The Kingland Group at 44.86 percent. The Shuangjie Group also withdrew its participation in the CVD investigation and was assigned a 615.92 percent CVD rate based on adverse facts available. The China-wide CVD rate of 37.22 percent will be applied to all other exporters.

“Chinese subsidies and undervalued exports dumped in the United States by Chinese standard pipe producers put American producers at a disadvantage in the global marketplace and distort global trade flows,” said Assistant Secretary for Import Administration David Spooner. “The United States will continue to enforce U.S. trade laws to ensure American businesses are treated fairly and to achieve strong and fair relationships with our trading partners.”

The ITC is scheduled to issue its final injury determination on or about July 14. If the ITC determines that imports from China are injuring, or threaten injury to, the domestic market, Commerce will issue AD and CVD orders. If the ITC makes a negative injury determination, these investigations will be terminated.

As a result of this final AD determination, Commerce will instruct U.S. Customs and Border Protection to continue to suspend liquidation of entries of standard pipe and collect a cash deposit or bond based on these final rates. Suspension of liquidation will only resume for purposes of countervailing duties if the U.S. International Trade Commission (ITC) issues an affirmative injury finding of injury to domestic manufacturers.

Allied Tube & Conduct (Ill.); IPSCO Tubulars, Inc. (Ky.); Northwest Pipe Company (Ore.); Sharon Tube Company (Pa.); Western Tube & Conduit Corporation (Calif.); Wheatland Tube Company (N.J.); and the United Steelworkers (Pa.) are the petitioners for these investigations.

Dumping is when a foreign company sells a product in the United States at less than normal value. Subsidies are financial assistance from foreign governments that benefit the production, manufacture or exportation of goods.

For more information about Import Administration, or for the fact sheet on today’s decisions, please visit www.trade.gov/ia.

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