The Bonney Forge Corporation and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (“USW”) (“petitioners”), on October 23, 2019, filed antidumping (AD) and countervailing duty (CVD) petitions on imports of forged steel fittings from India and Korea.
The U.S. AD law imposes special tariffs to counteract imports that are sold in the United States at less than “normal value.” The U.S. CVD law imposes special tariffs to counteract imports that are sold in the United States with the benefit of foreign government subsidies. For AD/CVD duties to be imposed, the U.S. government must determine not only that dumping and/or subsidies are occurring, but also that there is “material injury” (or threat thereof) by reason of the dumped and/or subsidized imports. Importers are liable for any potential AD/CVD duties imposed. In addition, these investigations could impact purchasers by increasing prices and/or decreasing supply of certain forged steel fittings.
Scope
The merchandise covered by these investigations is carbon and alloy forged steel fittings, whether unfinished (commonly known as blanks or rough forgings) or finished. Such fittings are made in a variety of shapes including, but not limited to, elbows, tees, crosses, laterals, couplings, reducers, caps, plugs, bushings, unions, and outlets. Forged steel fittings are covered regardless of end finish, whether threaded, socket-weld or other end connections. The scope includes integrally reinforced forged branch outlet fittings, regardless of whether they have one or more ends that is a socket welding, threaded, butt welding end, or other end connections.
While these fittings are generally manufactured to specifications ASME B16.11, MSS SP-79, MSS SP-83, MSS SP-97, ASTM A105, ASTM A350 and ASTM A182, the scope is not limited to fittings made to these specifications.
The term “forged” is an industry term used to describe a class of products included in applicable standards, and it does not reference an exclusive manufacturing process. Forged steel fittings are not manufactured from castings. Pursuant to the applicable standards, fittings may also be machined from bar stock or machined from seamless pipe and tube.
All types of forged steel fittings are included in the scope regardless of nominal pipe size (which may or may not be expressed in inches of nominal pipe size), pressure class rating (expressed in pounds of pressure, e.g., 2,000 or 2M; 3,000 or 3M; 6,000 or 6M; 9,000 or 9M), wall thickness, and whether or not heat treated.
Excluded from this scope are all fittings entirely made of stainless steel. Also excluded are flanges, nipples, and all fittings that have a maximum pressure rating of 300 pounds per square inch/PSI or less.
Also excluded from the scope are fittings certified or made to the following standards, so long as the fittings are not also manufactured to the specifications of ASME B16.11, MSS SP-79, MSS SP-83, MSS SP-97, ASTM A105, ASTM A350 and ASTM A182:
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American Petroleum Institute (API) 5CT, API 5L, or API 11B;
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American Society of Mechanical Engineers (ASME) B16.9;
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Manufacturers Standardization Society (MSS) SP-75;
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Society of Automotive Engineering (SAE) J476, SAE J514, SAE J516, SAE
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J517, SAE J518, SAE J1026, SAE J1231, SAE J1453, SAE J1926, J2044 or SAE AS 35411;
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Underwriter’s Laboratories (UL) certified electrical conduit fittings;
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ASTM A153, A536, A576, or A865;
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Casing Conductor Connectors 16-42 inches in diameter made to proprietary specifications
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Military Specification (MIL) MIL-C-4109F and MIL-F-3541; and
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International Organization for Standardization (ISO) ISO6150-B.
To be excluded from the scope, products must have the appropriate standard or pressure markings and/or be accompanied by documentation showing product compliance to the applicable standard or pressure, e.g., “API 5CT” mark and/or a mill certification report.
Subject carbon and alloy forged steel fittings are normally entered under HTSUS 7307.92.3010, 7307.92.3030, 7307.92.9000, 7307.93.3010, 7307.93.3040, 7307.93.6000, 7307.93.9010, 7307.93.9040, 7307.93.9060, 7307.99.1000, 7307.99.3000, 7307.99.5045, and 7307.99.5060. They also may be entered under HTSUS 7326.19.0010. The HTSUS subheadings and specifications are provided for convenience and customs purposes; the written description of the scope is dispositive.
Alleged Dumping Margins
The petitioner alleges the following dumping margins:
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India: 114.47 percent
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Korea: 45.03 percent to 198.67 percent
Estimated Schedule of Investigations
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October 23, 2019 – Petition is filed
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November 12, 2019 – DOC initiates investigation
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November 13, 2019 – ITC staff conference
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December 9, 2019 – Deadline for ITC preliminary injury determinations
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January 16, 2020 – Deadline for DOC preliminary CVD determination, if not postponed
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March 23, 2020 – Deadline for DOC preliminary CVD determination, if fully postponed
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March 31, 2020 – Deadline for DOC preliminary AD determination, if not postponed
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May 20, 2020 – Deadline for DOC preliminary AD determination, if fully postponed
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October 2, 2020 – Deadline for DOC final AD determinations, if both preliminary and final determinations are fully postponed
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November 16, 2020 – Deadline for ITC final injury determinations, assuming fully postponed DOC deadlines