Sunday, June 1, 2008

US Slaps Duties On Chinese Steel Pipe

The Department says it's taking action against Shuangjie Group in order to offset unfair pricing practices. That's in addition to an anti-dumping duty of nearly 86 percent. But Shuangjie may not ever need to pay up.

The duties will only be considered valid and necessary if the US International Trade Commission rules that Chinese steel pipe imports are in fact hurting, or at least threatening to hurt, US producers.

China says it has moved to cut export tax rebates on steel products. China also denies claims that it gives subsidies to domestic steel exports.


The United States’ Commerce Department said on Friday that it has reached a final decision to impose antidumping and countervailing duties on imports of standard steel pipe from China.

"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," David Spooner, the department's assistant secretary for import administration, said in a statement.

"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," he said.

The decision calls for antidumping duties of up to 85.55 percent to be slapped on the pipe. Countervailing duties of up to 615.92 percent will also be charged.

For the duties to formally take effect, the U.S. International Trade Commission has to make a ruling that U.S. manufacturers are materially injured by the imports, with a decision expected on or around July 14.

The pipe is used to carry water, steam, natural gas, air and other liquids and gases in plumbing and heating systems, air conditioning units and automatic sprinkler systems.

The Commerce Department began imposing countervailing duties on imported goods from China last year, in an about-face from a decades-old policy of not applying duties to subsidized goods from non-market economies.

Meanwhile China Central TV claims that the Commerce Department is taking action against China’s Shuangjie Group in order to offset unfair pricing practices by imposing what is a total duty of 700%. That's in addition to an anti-dumping duty of nearly 86 percent.

The duties will only be considered valid and necessary if the US International Trade Commission rules that Chinese steel pipe imports are in fact hurting, or at least threatening to hurt, US producers.

China says it has moved to cut export tax rebates on steel products. China also denies claims that it gives subsidies to domestic steel exports.

Source: TMCNet CCTV International

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