The US commerce department set a preliminary import duty of nearly 286% on a certain type of steel pipe from India to offset government subsidies and a duty of slightly more than 8% on the same product from Vietnam.
It declined to set preliminary duties on imports from Oman and the United Arab Emirates, saying it found little or no subsidies for steel pipe producers in those countries.
Tuesday?s decision is a mixed victory for US companies Allied Tube and Conduit, JMC Steel Group, Wheatland Tube and United States Steel, which filed a petition last year asking for import relief.
Importers of circular welded carbon-quality steel pipe from India and Vietnam will have to post bonds or cash deposits based on the preliminary duty rates while the department continues its probe.
The United States imported about $64.5 million of the steel pipe from India and $50.1 million from Vietnam. It imported $28.1 million from Oman and $53.9 million from the UAE.
?In the India investigation, mandatory respondents Zenith Birla (India) and Lloyds Metals and Engineers both received preliminary net subsidy rates of 285.95%, based on the application of adverse facts available,? the International Trade Administration said.
All other Indian producers/exporters also received a preliminary net subsidy rate of 285.95%, it said.
?Commerce has aligned the countervailing duty (CVD) investigations with concurrent anti-dumping duty investigations, and is currently scheduled to make its final determinations in August, 2012,? the statement said. If the commerce department makes affirmative final determinations and the US International Trade Commission (ITC) makes affirmative final determinations that imports of certain steel pipe from India, materially injure, or threaten material injury to, the domestic industry, Commerce will issue CVD orders, it added.
?If either commerce or the ITC?s final determinations are negative, no CVD order(s) will be issued. The ITC is scheduled to make its final injury determinations in July, 2012,? the statement said.
US duty will not impact operations: Welspun
Mumbai, Mar 28: Leading steel pipe manufacturer Welspun said on Wednesday that it will not be impacted by the US move to slap countervailing duty of 286% on certain steel pipes from India.
The proposal to impose duty was announced on Tuesday by the US commerce department. Following the news, the company?s share dipped 3.60% to R133.90 on the BSE on Wednesday.
In a statement, Welspun said, ?It may be noted that the company is not exporting any product under these category to US and thus shall have no impact on its Indian operations.? It added that the proposed move will help Welspun in the coming days as it is setting an ERW pipe plant of 1,75,000 tonne and coating unit in Arkansas.
PTI
