Background

A petition filed April 19 alleges that cold-drawn mechanical tubing from China, Germany, India, Italy, Korea, and Switzerland is being sold at less than fair value in the U.S. market and that such goods from China and India are benefitting from countervailable subsidies. The petition alleges dumping margins of 88.82 percent to 188.88 percent for China, 70.53 percent to 148.32 percent for Germany, 25.48 percent for India, 37.23 percent to 69.13 percent for Italy, 12.14 percent to 48.61 percent for Korea, and 40.53 percent to 115.21 percent for Switzerland.

The petition covers cold-drawn mechanical tubing of carbon and alloy steel, of circular cross-section in actual diameters less than 13 inches (less than 331 mm), regardless of wall thickness, surface finish, end finish, or industry specification. The subject tubing is a tubular product that has been cold-drawn or otherwise cold-finished after the initial tube formation in a manner that involves a change in the diameter or wall thickness of the tubing or both. It may be produced from either welded (e.g., electric resistance welded, continuous welded, etc.) or seamless (e.g., pierced, pilgered or extruded, etc.) carbon or alloy steel tubular products. It may also be heat treated after cold working (annealed, normalized, quenched and tempered, stress relieved, or finish annealed).

Products covered by this petition are those in which iron predominates, by weight, over each of the other contained elements and the carbon content is two percent or less by weight. Cold-drawn stainless steel tubing containing 10.5 percent or more of chromium by weight and not more than 1.2 percent of carbon by weight is excluded.

Subject tubing is currently classified under HTSUS 7304.31.3000, 7304.31.6050, 7304.51.1000, 7304.51.5005, 7304.51.5060, 7306.30.5015, 7306.30.5020, and 7306.50.5030.

The Department of Commerce and the International Trade Commission will next determine whether to launch AD and CV duty and injury investigations, respectively, on this product. There are strict statutory deadlines associated with these proceedings, so affected companies that wish to protect their interests should contact trade counsel as soon as possible.

For more information contact Kristen Smith at (202) 730-4965, Mark Ludwikowski at (202) 730-4967 or David Craven at (312) 279-2844.

Copyright © 2020 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.

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Kristen S. Smith
Member, Trade Remedies Practice Group Leader

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