China Drill Pipe: ITA Issues AD Duty Order
The International Trade Administration is issuing an antidumping duty order on drill pipe from China (A-570-965), based on a “but for” threat of material injury.
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Combination Rates
The ITA has calculated combination rates for respondents that are eligible for a separate rate in this AD investigation. (See ITT's Online Archives or 04/11/05 news, 05041110, for BP summary of 2005 policy bulletin outlining this change in practice with regard to AD combination rates for non-market economies (NMEs).)
AD Liq Suspension Terminated, Cash Deposits Refunded Prior to March 3
Because the International Trade Commission's final injury determination is based on the threat of material injury and is not accompanied by a finding that injury would have resulted, but for the imposition of suspension of liquidation of entries since the preliminary determination, U.S. Customs and Border Protection is required to release any bond or other security, and refund any cash deposit of estimated AD duties posted from the ITA's preliminary determination until the publication of the ITC's final determination of threat of material injury.
Therefore, the ITA will instruct CBP to terminate the AD suspension of liquidation for entries of drill pipe from China with a time of entry prior to March 3, 2011 (the publication date of the ITC’s final threat of injury determination).
The ITA will also instruct CBP to refund any AD cash deposits made and release any bonds posted between May 20, 2010 (90 days prior to the publication of the preliminary determination) through March 2, 2011 for mandatory respondent DP-Master Manufacturing Co., Ltd. and Jiangyin Liangda Drill Pipe Co., Ltd. (collectively, the DP-Master Group)1, the separate rate respondents, and the China-wide entity, as critical circumstances were previously found for these respondents.
(The ITA previously made a determination of negative critical circumstances for Baoshan Iron & Steel Co., Ltd. (Baoshan) and Shanxi Yida Special Steel Group Co., Ltd. (Yida) as their estimated AD duty rates are de minimis.)
AD Suspension of Liquidation for March 3 and After
The ITA will direct CBP to require AD suspension of liquidation for all entries of subject merchandise with a time of entry on or after March 3, 2011 (except entries produced and exported by Baoshan and Yida).
Estimated AD Cash Deposits Effective March 3
The ITA will also instruct CBP to require, at the same time as importers would normally deposit estimated duties on this merchandise, estimated AD cash deposits on entries of subject merchandise from China with a time of entry on or after March 3, 2011 at the following estimated AD duty rates2.
(Note that DP-Master Group’s AD duty rate, as well as the AD duty rate for the separate rate respondents (i.e., all respondents except Baoshan and Yida) has been reduced for export subsidies3.)
| Exporter | Estimated AD Rate (Cash Only) |
|---|---|
| DP-Master Manufacturing Co., Ltd. and Jiangyin Liangda Drill Pipe Co., Ltd. (the DP-Master Group) | 69.18% |
| Baoshan Iron & Steel Co., Ltd. | de minimis4 |
| Shanxi Yida Special Steel Imp. & Exp. Co., Ltd. | de minimis4 |
| Shanxi Fenglei Drilling Tools Co., Ltd. | 69.18% |
| Jiangsu Shuguang Huayang Drilling Tool, Co. Ltd. | 69.18% |
| Jiangyin Long-Bright Drill Pipe Manufacturing Co., Ltd. | 69.18% |
| China-wide entity | 429.95% |
1The ITA notes that both the AD and CV duty investigations refer to their collective mandatory respondent as “DP Master Group,” but the entities that each group is composed of differ slightly.
2These AD duty rates are unchanged from the final AD duty determination.
3Because the ITA has determined that subject merchandise exported and produced by the DP-Master Group benefitted from an export subsidy, its AD duty rate, as well as the rate for the separate rate respondents, has been reduced for DP-Master Group's export subsidy portion of the rate determined in the final countervailing duty determination.
4The ITA has found final de minimis AD duty rates for Baoshan and Yida; therefore, no cash deposit is required for subject merchandise produced and exported by these companies.
(See ITA notice for additional information, including the scope of the order, etc.
See ITT's Online Archives or 03/03/11 news, 11030312, for BP summary of the companion countervailing duty order.
See ITT’s Online Archives or 01/11/11 and 02/08/11 news, 11011129 and 11020832, for BP summaries of the final AD duty determination and the ITA's finding that critical circumstances exist for most respondents.)
ITA contact -- Toni Dach (202) 482-1655
(FR Pub 03/03/11, ITA Case No. A-570-965)
The ITC’s final threat of injury determination (FR Pub 03/03/11) is available here.