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Petitions for the Imposition of Antidumping Duties and Countervailing Duties on Imports of Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from Six Countries - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
I. Type of Action: Antidumping Duty (“AD”): China, Germany, India, Italy, Korea and Switzerland ; Countervailing Duty (“CVD”) : China and India;
II. Product: The scope of this investigation covers cold-drawn mechanical tubing of carbon and alloy steel ("cold-drawn mechanical tubing") of circular cross-section, in actual diameters less than 13 inches (less than 331 mm), and regardless of wall thickness, surface finish, end finish or industry specification. The subject cold-drawn mechanical tubing is a tubular product with a circular cross-sectional shape that has been cold-drawn or otherwise cold-finished after the initial tube formation in a manner that involves a change in the diameter or wall thickness of the tubing, or both. The subject cold-drawn mechanical tubing may be produced from either welded (e.g., electric resistance welded, continuous welded, etc.) or seamless (e.g., pierced, pilgered or extruded, etc.) carbon or alloy steel tubular products. It may also be heat treated after cold working (annealed, normalized, quenched and tempered, stress relieved or finish annealed). Typical cold-drawing methods for subject merchandise include, but are not limited to, drawing over mandrel, rod drawing, and sink drawing. Subject cold-drawn mechanical tubing is typically certified to meet industry specifications for cold-drawn tubing including but not limited to:
(1) American Society for Testing and Materials (ASTM) or American Society of Mechanical Engineers (ASME) specifications ASTM A-512, ASTM A-513 Type 3 (ASME S4513 Type 3), ASTM A-513 Type4 (ASME 54513 Type4), ASTM A-513 Type 5 (ASME S4513 Type 5), ASTM A-513 Type 6 (ASME 54513 Type 6), ASTM A-519 (cold-finished);
(2) SAE International (Society of Automotive Engineers) specifications SAE J524, SAE J525, SAE J2833, SAE J26T4,SAE J2467, SAE J2435, SAE J2613;
(3) Aerospace Material Specification (AMS) AMS T-6736 (AMS 6736), AMS 6371, AMS 5050, AMS 5075, AMS 5O62, AMS 636O, AMS 636I, AMS 6362, AMS 637I, AMS 6372, AMS 6374, AMS 6381, AMS 6415;
(4) United States Military Standards (MIL) MIL -T-5066 and MIL-T-6736;
(5) foreign standards equivalent to one of the previously listed ASTM, ASME, SAE, AMS or MIL specifications including but not limited to:
(a) German Institute for Standardization (DIN) specifications DIN 2391-2, DIN 2393-2, DIN 2394-2.
(b) European Standards (EN) EN 10305-1, EN 10305-2, EN 10305-4, EN 10305-6 and European national variations on those standards (e.g., British Standard (BS EN), Irish Standard (IS EN) and German Standard (DIN EN) variations, etc.);
(c) Japanese Industrial Standard (JIS) JIS G 3441 and JIS G 3445; and
(6) proprietary standards that are based on one of the above listed standards.
The subject cold-drawn mechanical tubing may also be dual or multiple certified to more than one standard.
Steel products included in the scope of this investigation are products in which: (1) iron predominates, by weight, over each of the other contained elements; and (2) the carbon content is 2 percent or less by weight.
For purposes of this scope, the place of cold-drawing determines the country of origin of the subject merchandise. Subject merchandise that is subject to minor working in a third country that occurs after drawing in one of the subject countries including, but not limited to, heat treatment, cutting to length, straightening, nondestruction testing, deburring or chamfering, remains within the scope of the investigation.
All products that meet the written physical description are within the scope of this investigation unless specifically excluded or covered by the scope of an existing order. Merchandise that meets the physical description of cold-drawn mechanical tubing above is within the scope of the investigation even if it is also dual or multiple certified to an otherwise excluded specification listed below. The following products are outside of, and/or specifically excluded from, the scope of this investigation:
(1) cold-drawn stainless steel tubing, containing 10.5 percent or more of chromium by weight and not more than 1.2 percent of carbon by weight;
(2) products certified to one or more of the ASTM, ASME or American Petroleum Institute (API) specifications listed below:
•ASTM A-53;
•ASTM A-106;
•ASTM A-t79 (ASME SA 179);
•ASTM A-192 (ASME SA 179);
•ASTM A-209 (ASME SA 209);
•ASTM A-210 (ASME SA 210);
•ASTM A-213 (ASME SA 213);
•ASTM A-334 (ASME SA 334);
•ASTM A-423 (ASME SA 423);
•ASTM A-498;
•ASTM A-496 (ASME SA 496);
•ASTM A-199;
•ASTM A-500;
•ASTM A-556;
•ASTM A-565;
•API5L; and
•API5CT
except that any cold-drawn tubing product certified to one of the above excluded specifications will not be excluded from the scope if it is also dual- or multiple-certified to any other specification that otherwise would fall within the scope of this investigation.
III. HTS classifications: The products subject to the investigation are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under item numbers: 7304.31.3000, 7304.31.6050, 7304.51.1000, 7304.51.5005, 7304.51.5060, 7306.30.5015, 7306.30.5020, 7306.50.5030. The HTSUS subheadings above are provided for convenience and customs purposes only. The written description of the scope of the investigation is dispositive.
IV. Date of Filing: April 19, 2017
V. Petitioners: ArcelorMittal Tubular Products, Michigan Seamless Tube, LLC, PTC Alliance Corp., Zekelman Industries, and Webco Industries, Inc.
VI. Foreign Producers/Exporters. Please contact our office for a list filed with the petition.
VII. US Importers named. Please contact our office for a list filed with the petition.
VIII. Alleged Dumping Margin:
China: 88.82%-188.88%
Germany: 70.53%-148.32%
India: 25.48%
Italy: 37.23%-69.13%
Korea: 12.14%-48.61%
Switzerland: 52.41%-57.82%
No CVD Margins listed.
IX. Comments:
A. Projected date of ITC Preliminary Conference: May 10, 2017.
- Please contact our office for a complete projected schedule for the AD investigation.
- Please contact our office for a complete projected schedule for the CVD Investigation.
B. The earliest theoretical date for retroactive suspension of liquidation for the antidumping duty is June 28, 2017, with the likeliest being August 17, 2017; for countervailing duty retroactive suspension the earliest is April 19, 2017, and the likeliest June 18, 2017.
C. Volume and Value of Imports: Please contact our office for a summary of the data filed with the petition.
If you have any questions regarding how this investigation may impact future imports of scope merchandise, or whether a particular product is within the scope of the investigation, please contact one of our attorneys.
Department of Commerce report on Miscellaneous Tariff Bills - International Trade Administration
Department of Commerce Report
The Department of Commerce, pursuant to its mandate under section 3(c) of the American Manufacturing Competitiveness Act of 2016, has published its report. Section 3(c) of the Act requires the Secretary of Commerce to submit to the United States International Trade Commission (USITC) and appropriate Congressional committees a report on each petition for a duty suspension or reduction submitted under section 3(b)(1)(A) of the Act.
As required by the Act, Commerce consulted with U.S. Customs and Border Protection and other relevant Federal agencies in preparing this report. Specific agency contributions are noted in the methodology section of the report. Nothing in the report should be construed as Administration support for, or objection to, legislation to suspend or reduce duties on articles subject to the petitions.
Overview
A Miscellaneous Tariff Bill (MTB) is a law that temporarily reduces or suspends the import tariffs paid on particular products imported into the United States. Typically, companies importing the products request the duty reductions or suspensions by submitting a petition for each concerned product.
The American Manufacturing Competitiveness Act of 2016, which became law on May 20, 2016, created an entirely new process for determining which products will be included in an MTB.
Previously, Congress had played the predominant role in the MTB process. Under the new process, the task of collecting petitions requesting reduced or suspended tariffs on particular products; receiving public comments on those petitions; and making a final determination on whether to include a requested product in an MTB falls to the U.S. International Trade Commission (USITC). The USITC obtains input from other Federal agencies, including the Department of Commerce, in making its determination for each petition.
The USITC has a designated page for the MTB process (https://mtbps.usitc.gov/external/) that includes both detailed and overview information on the MTB process and instructions on how to submit petitions and public comments. The website also contains access to the MTB portal through which users can submit and view product petitions.
Commerce Role
Under the new process, the Department of Commerce (Commerce) is tasked with coordinating interagency input for the Administration and with providing a report to the House Ways and Means and Senate Finance Committees, as well as the USITC, on each of two determinations for each product under review:
1. Does domestic production of the product subject to petition for duty suspension or reduction exist?
2. Does a domestic producer of the product object to the petition for the duty suspension or reduction?
The definitions used for “domestic production” and “domestic producer” are set out in the MTB legislation.
- “Domestic production” is the production of a product that is identical to, or like or directly competitive with, a product to which a petition for a duty suspension or reduction would apply, for which a domestic producer has demonstrated production, or imminent production, in the United States.
- “Domestic producer” is a person that demonstrates production, or imminent production, in the United States of a product that is identical to, or like or directly competitive with, a product to which a petition for a duty suspension or reduction would apply.
Commerce’s Administration Report will also include input from U.S. Customs and Border Protection (CBP) and other relevant Federal agencies, including any technical changes to the product’s article description (as the product is described in the tariff schedule) for each petition that are necessary for purposes of administration when products are presented for importation. Commerce is expected to deliver the report containing its findings for each petition to the House Ways and Means and Senate Finance Committees, as well as the USITC, in mid-April 2017.
Commerce’s task as set out in the legislation is consistent with the Department’s previous role in the MTB process, wherein for more than 20 years Commerce has been responsible for investigating whether there is domestic production of products proposed for an MTB, in order to prevent domestic manufacturers from being inadvertently injured by the tariff cuts.
USITC Role
Under the law, the USITC is responsible for the collection and publishing of product petitions, as well as public comments on those petitions. It is also responsible for making a determination on each product petition of whether or not that petition should go forward. The USITC will submit a report of its determinations to the congressional committees containing information on each petition, including but not limited to:
- A determination if domestic production of the product exists.
- A determination of whether or not a domestic producer objects to the petition.
- Any technical changes to the product’s article description that are necessary for purposes of administration.
- An estimate of the amount of loss in revenue to the United States if the duty suspension or reduction takes effect.
- A list of petitions that it does not recommend for inclusion in an MTB.
The USITC will take into account the Commerce report, including input from CBP, and other Executive agencies, in its report. The USITC will provide its preliminary report to the House Ways and Means and Senate Finance Committees in mid-June 2017 and its final report in mid-August 2017. In between the preliminary and final reports, the USITC is directed to consider information from the congressional committees on its report.
Public Comments
No later than January 11, 2017, the USITC will publish a Federal Register notice inviting the public to comment on the product petitions it received during the submission period and published on its website. The public comment period will last 45 days, ending no later than February 25, 2017. In filing a public comment, a U.S. producer of a like or competing product for which a petition was submitted may issue an objection to the proposed tariff reduction or suspension for that product. The USITC will use these comments and input from the Commerce report to determine whether domestic production of a given product exists.
As an alternative, a U.S. producer may note an objection directly with the Department of Commerce. To do so, contact the Department of Commerce at CommerceMTBs@trade.gov. For the purposes of Commerce’s report, all claims of domestic production will be verified by Commerce staff.
Producers that do not wish to file public comments on the USITC portal because they prefer to remain anonymous are encouraged to still note their objections with the Department of Commerce at our CommerceMTBs@trade.gov email address. The Department of Commerce will not share information on domestic producers who request to remain anonymous.
Objections from U.S. producers will be accepted by the Department of Commerce up until shortly before it submits its report, expected to be in mid-April. Again, the USITC is responsible for making the ultimate determination of whether domestic production of a given product exists.
Timing
The new MTB process, as set out in the law, runs from October 2016 through the end of 2017. The dates and time frames below have been obtained from the U.S. ITC and the text of the legislation.
- October 14 – December 12, 2016: USITC MTB portal open for petition submission.
- December 13, 2016 – January 10, 2017: USITC compiles petitions.
- No later than January 11 – USITC issues Federal Register notice soliciting comments on product petitions.
- January 11 - Late February, 2017 (45 days): USITC accepts public comments through online portal.
- January 11 - Mid-April, 2017 (90 days): Commerce conducts its review of petitions, at the end of which it submits its report to the congressional committees and the USITC.
- January 11 - Mid-June, 2017 (150 days): USITC conducts its review of petitions, at end of which it submits its Preliminary Report to the congressional committees, taking into consideration the Commerce Report.
- Mid-June – mid-August, 2017 (60 days): USITC conducts re-review of individual petitions, based on information submitted by the congressional committees, at the end of which it submits its Final Report to the congressional committees.
This process will repeat again in 2019.
USITC: New Releases, Annoucements, Documents - U.S. International Trade Commission
The Census Bureau’s International Trade Management Division (ITMD) is announcing the publication of a Final Rule revising several sections of the Foreign Trade Regulations (FTR), Title 15, Part 30. The amendments reflect new export reporting requirements related to the implementation of the International Trade Data System (ITDS), in accordance with the Executive Order 13659, Streamlining the Export/Import Process for American Businesses. The ITDS was established by section 405 of the Security and Accountability for Every (SAFE) Port Act of 2006 (Pub. L. 109-347, 120 Stat. 1884).
The changes also reflect the addition of the new original Internal Transaction Number (ITN) field in the Automated Export System (AES), new requirements for authorized agents in routed export transactions, and provides clarity on existing reporting requirements. The Census Bureau made additional revisions and incorporated provisions to the rule to address comments received on the Notice of Proposed Rulemaking. The requirement to report the export of used electronics via a new data element is not included in the Final Rule.
The capability to report information in the new original ITN optional data element field will be available in the AES on April 27, 2017. In a routed export transaction, the authorized agent is required to provide the U.S. Principal Party in Interest with two additional data elements, the ITN and the date of export. Therefore, these data elements will be added to the AES-203 Report in the Automated Commercial Environment on April 27, 2017 as well.
Please find the Final Rule in its entirety at https://federalregister.gov/d/2017-07646. For further information or questions about the FTR, contact the Trade Regulations Branch (TRB), ITMD at 800-549-0595, Option 3.
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