Steel Products Prices North America

DOC Closes Loophole on OCTG Imports from China

Written by Sandy Williams

The US Department of Commerce said it will maintain anti-dumping and countervailing duties on oil country tubular goods (OCTG) imported from China, in announcement made earlier this week.

The recent decision closed loopholes in the 2009 AD/CV duties imposed by the International Trade Commission, which allowed pipe made in China but finished in other countries to slip through trade enforcement rules.

Commenting on the decision, The American Iron and Steel Institute said, “We are very pleased that the Department of Commerce has taken this significant step in working to prevent foreign companies from circumventing U.S. trade laws pertaining to steel imports.   The U.S. laws against unfair trade exist to counter market-distorting practices and restore conditions of fair trade. U.S. companies and their workers deserve to have a fair shake, and we applaud this decision in addressing the problem of unfairly traded OCTG imports.”

In 2012, U.S. Sens. Sherrod Brown (D-OH) and Rob Portman (R-OH) led a group of senators in encouraging the Department of Commerce to maintain the AD/CV duties to protect steel companies, such US Steel and Vallorec Star in Ohio, from illegal Chinese trade practices concerning steel pipe imports. The two senators sent a letter to the DOC in May 2013 and, most recently, in November 2013 urging the DOC to close the loopholes that changed “country of origin” from China to the country where the pipes received finishing treatment and threading or coupling.

“The Commerce Department’s ruling is excellent news for Ohio’s workers and manufacturers like those at U. S. Steel and Vallourec Star,” said Brown. “This decision makes it clear that countries like China can’t use loopholes to circumvent international law and evade anti-dumping and countervailing duties. Our steelmakers can compete with anyone in the world, and now we’ve taken a step towards leveling the playing field and protecting domestic jobs.”

“This ruling is an important step forward in ensuring that American manufactured goods can compete with their global competitors on a level playing field,” said Portman. “This is good news to the thousands of American workers who were threatened from the risk of watered-down protections which would have allowed cheap Chinese products to flood our domestic markets.”


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