The Commerce Department has preliminary determined that cast iron soil pipe fitting imports are subsidized by the Chinese government to the detriment of U.S. producers of these products.
Commerce said Chinese pipe fitting producers and exporters received countervailable subsidies ranging from 8.66 to 102.31 percent. Foreign governments hand out countervailable subsidies to industries contingent on their export performance or use of domestic inputs over imports.
Specifically, Commerce calculated a preliminary subsidy rate of 8.66 percent for Shanxi Xuanshi Industrial Group Co. Ltd. and a preliminary subsidy rate of 12.72 percent for Wor-Biz International Trading Co., Ltd. (Anhui). Commerce applied a subsidy rate of 102.31 percent for Shijiazhuang Chengmei Import & Export Co. Ltd., since the company failed to respond to its request for information. All other Chinese producers and exporters of these pipe fittings received a subsidy rate of 10.37 percent.
As a result of the preliminary affirmative determination, Commerce will instruct Customs and Border Protection (CBP) to require cash deposits for these imports from China based on the preliminary rates. The department estimated in 2016 that imports of cast iron soil pipe fittings from China were valued at $8.6 million.
The petitioner for the countervailing duty investigation is the Cast Iron Soil Pipe Institute in Illinois, whose members include AB&I Foundry of California, Charlotte Pipe & Foundry in North Carolina, and Tyler Pipe of Texas.
Commerce is currently scheduled to announce its final countervailing duty determination for this investigation by April 24, 2018. If Commerce makes an affirmative final determination and the U.S. International Trade Commission (ITC) makes an affirmative final injury determination, Commerce will issue a countervailing duty order. If Commerce makes a negative final determination or the ITC makes a negative final determination of injury, the investigation will end and no order will be issued.
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