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India Circular Welded Pipe: AD Rate Unchanged for Zenith in Final Determination

The International Trade Administration continued to find a 48.43 percent AD rate for Zenith Birla (India) Limited1 in its final determination in the investigation of circular welded carbon-quality steel pipe from India (A-533-852). But according to the ITA fact sheet that announced this final determination, the ITA found CV duties for Zenith to be so high that, adjusting for export subsidies, Zenith’s AD cash deposit rate will be zero. All other exporters of subject merchandise were excluded from this investigation, so it only applies to Zenith Birla.

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(When collecting cash deposits, the ITA said it will reduce some of the companies' AD rates found in this AD final determination by the respective amount determined to constitute export subsidies in this case's companion countervailing duty final determination. However, the companion CV investigation is currently in its "gap period", during which no CV duty liability exists. In past cases, the ITA has accounted for gap periods in companion CV cases by collecting the full and unadjusted AD rate determined in the AD final determination, without adjustment for export subsidies, until the effective date of the CV order (and end of the CV "gap period"), at which point adjustment of AD rates for export subsidies begins. (See ITT's Online Archives 12101915 for summary of final determination in this case's companion CV investigation.)

Rate Only Applicable to Zenith Birla

This investigation covers only merchandise manufactured and/or exported by Zenith, which had been excluded from an existing antidumping duty order covering welded steel pipe and tube from India. No “all others” deposit rate is applicable, because Zenith is the only manufacturer covered by the investigation. The ITA said if the merchandise is exported by another firm but manufactured by Zenith, the AD rate will be the rate established for Zenith.

AD Suspension of Liquidation Continues for Zenith

The ITA is instructing CBP to continue to suspend liquidation of all imports of subject merchandise manufactured or exported by Zenith that were entered on or after June 1. The ITA will instruct CBP to require an AD cash deposit or the posting of a bond, for all imports of subject merchandise which were entered, or withdrawn from warehouse, for consumption on or after Oct. 22, equal to Zenith’s 48.43 percent AD rate adjusted for any export subsidies. The ITA previously said that the adjustment would result in a zero AD cash deposit rate.

1Previously known as Zenith Steel Pipes and Industries, Ltd.

(The period of investigation is 10/01/10 -- 09/30/11. See ITA’s notice for more information, including the scope of the investigation (unchanged since the preliminary results), detailed instructions on cash deposit and assessment rates, etc. See ITT’s Online Archives 12053141 for summary of the preliminary determination of this investigation, and 12101720 for summary of the announcement of this final determination.)

ITA Contact -- Steve Bezirganian (202) 482-1131