OCTG industry salutes Customs for catching trade crooks

The preliminary finding has led CBP to launch a formal EAPA (Enforce and Protect Act) investigation into two US importers, Commercial Steel Products LLC and JOL Tubular Inc.

Boly Pipe and JOL Tubular appear to be affiliates of Chinese OCTG producer Jianli, according to the allegations brought to CBP by USOMA.

Those allegations cast doubt on whether Boly Pipe actually produced any of the OCTG in its exports, according to CBP’s notice of initiation.

CBP is looking into all subject pipes imported by those companies from Jan. 14, 2024, onward.

In a related EAPA investigation earlier this year, the agency found 10 importers guilty of duty evasion for importing Chinese-origin OCTG transshipped through Thailand via two other Thai companies. It ordered the importers to backpay the duties owed.

Domestic OCTG industry responds

The domestic energy tubulars industry cheered the launch of CBP’s probe.

“USOMA commends US Customs for their commitment to investigating possible evasion of US trade laws,” said Guillermo Moreno, president of Tenaris USA and chairman of USOMA.

The members of Washington, D.C.-based USOMA represent 75% of OCTG production in the US, according to the association. Members include Tenaris USA, Vallourec North America, Borusan Pipe US, PTC Liberty Tubulars, Welded Tube US, Axis Pipe and Tube, and BENTELER Steel and Tube. Combined, the companies operate 20 facilities across 10 states, employing nearly 8,000 people.

Moreno, who became USOMA’s new chairman earlier this month, said duty evasion robs the US government of billions of dollars in revenue.

Jacky Massaglia, senior vice president of Vallourec North America and vice chairman of USOMA, concurred, further noting, “Customs’ second finding of evasion of the AD and CVD orders on Chinese OCTG through the false front of operations in Thailand demonstrates the persistent challenges US producers face, even with trade orders in place.”

He added, “Only through strong enforcement can American manufacturing and American workers truly thrive. USOMA remains committed to working closely with US Customs to identify and stop evasion wherever it occurs.”

Moreno further highlighted that the domestic OCTG stands ready to serve customers with high-quality, American-made steel products.

Why it matters

While the pipe under investigation in this case is seamless only (and not welded), it’s still important for the flat-rolled industry to be aware of the trade remedy laws that exist and be prepared to utilize them when needed.

Customs will investigate claims of duty evasion and take measures to remedy the situation if allegations are substantiated.

The Enforce and Protect Act, or EAPA, became law in 2016, setting procedures for any interested party to make a claim of duty evasion. Since its implementation, CBP has launched more than 300 investigations and identified over $1 billion in AD/CVDs owed to the US government.

And when importing steel, know who you are working with and stay informed about evolving trade rules and regulations.