MESSAGE NO: 8347201 DATE: 12/12/2008

CATEGORY: CVD TYPE: FIN

REFERENCE: REFERENCE DATE:

CASES: C-570-936

PERIOD COVERED: 11/24/2008

LIQ SUSPENSION DATE:

TO: DIRECTORS OF FIELD OPERATIONS, PORT DIRECTORS

FROM: DIRECTOR, SPECIAL ENFORCEMENT

RE: NOTICE OF FINAL DETERMINATION IN THE COUNTERVAILING, DUTY
INVESTIGATION OF CIRCULAR WELDED CARBON QUALITY, STEEL LINE PIPE FROM
CHINA (C-570-936-000/001/002)

1\. ON NOVEMBER 24, 2008, COMMERCE PUBLISHED IN THE FEDERAL

REGISTER ITS FINAL AFFIRMATIVE DETERMINATION IN THE

COUNTERVAILING DUTY INVESTIGATION OF CIRCULAR WELDED CARBON

QUALITY STEEL LINE PIPE FROM THE PEOPLE\'S REPUBLIC OF CHINA

(73 FR 70961).

2\. THE MERCHANDISE COVERED BY THIS INVESTIGATION IS CIRCULAR

WELDED CARBON QUALITY STEEL PIPE OF A KIND USED FOR OIL AND GAS

PIPELINES (WELDED LINE PIPE), NOT MORE THAN 406.4 MM (16

INCHES) IN OUTSIDE DIAMETER, REGARDLESS OF WALL THICKNESS,

LENGTH, SURFACE FINISH, END FINISH OR STENCILING. THE TERM

\"CARBON QUALITY STEEL\" INCLUDES BOTH CARBON STEEL AND CARBON

STEEL MIXED WITH SMALL AMOUNTS OF ALLOYING ELEMENTS THAT MAY

EXCEED THE INDIVIDUAL WEIGHT LIMITS FOR NON ALLOY STEELS IMPOSED

IN THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES (HTSUS).

SPECIFICALLY, THE TERM \"CARBON QUALITY\" INCLUDES PRODUCTS IN

WHICH (1) IRON PREDOMINATES BY WEIGHT OVER EACH OF THE OTHER

CONTAINED ELEMENTS, (2) THE CARBON CONTENT IS 2 PERCENT OR LESS

BY WEIGHT AND (3) NONE OF THE ELEMENTS LISTED BELOW EXCEEDS THE

QUANTITY BY WEIGHT RESPECTIVELY INDICATED:

\(I\) 2.00 PERCENT OF MANGANESE,

\(II\) 2.25 PERCENT OF SILICON,

\(III\) 1.00 PERCENT OF COPPER,

\(IV\) 0.50 PERCENT OF ALUMINUM,

\(V\) 1.25 PERCENT OF CHROMIUM,

\(VI\) 0.30 PERCENT OF COBALT,

\(VII\) 0.40 PERCENT OF LEAD,

\(VIII\) 1.25 PERCENT OF NICKEL,

\(IX\) 0.30 PERCENT OF TUNGSTEN,

\(X\) 0.012 PERCENT OF BORON,

\(XI\) 0.50 PERCENT OF MOLYBDENUM,

\(XII\) 0.15 PERCENT OF NIOBIUM,

\(XIII\) 0.41 PERCENT OF TITANIUM,

\(XIV\) 0.15 PERCENT OF VANADIUM, OR

\(XV\) 0.15 PERCENT OF ZIRCONIUM.

WELDED LINE PIPE IS NORMALLY PRODUCED TO SPECIFICATIONS

PUBLISHED BY THE AMERICAN PETROLEUM INSTITUTE (API) (OR

COMPARABLE FOREIGN SPECIFICATIONS) INCLUDING API A-25, 5LA,

5LB, AND X GRADES FROM 42 AND ABOVE, AND/OR ANY OTHER

PROPRIETARY GRADES OR NON-GRADED MATERIAL. NEVERTHELESS, ALL

PIPE MEETING THE PHYSICAL DESCRIPTION SET FORTH ABOVE THAT IS

OF A KIND USED IN OIL AND GAS PIPELINES, INCLUDING ALL

MULTIPLE-STENCILED PIPE WITH AN API WELDED LINE PIPE STENCIL

IS COVERED BY THE SCOPE OF THIS INVESTIGATION.

EXCLUDED FROM THIS SCOPE ARE PIPES OF A KIND USED FOR OIL

AND GAS PIPELINES THAT ARE MULTIPLE-STENCILED TO A STANDARD

AND/OR STRUCTURAL SPECIFICATION AND HAVE ONE OR MORE OF THE

FOLLOWING CHARACTERISTICS: IS 32 FEET IN LENGTH OR LESS; IS

LESS THAN 2.0 INCHES (50 MM)IN OUTSIDE DIAMETER; HAS A

GALVANIZED AND/OR PAINTED SURFACE FINISH; OR HAS A THREADED

AND/OR COUPLED END FINISH. (THE TERM \"PAINTED\" DOES NOT

INCLUDE COATINGS TO INHIBIT RUST IN TRANSIT, SUCH AS VARNISH,

BUT INCLUDES COATINGS SUCH AS POLYESTER.)

THE WELDED LINE PIPE PRODUCTS THAT ARE THE SUBJECT OF THESE

INVESTIGATIONS ARE CURRENTLY CLASSIFIABLE IN THE HTSUS UNDER

SUBHEADINGS 7306.19.10.10, 7306.19.10.50, 7306.19.51.10, AND

7306.19.51.50. WHILE HTSUS SUBHEADINGS ARE PROVIDED FOR

CONVENIENCE AND CUSTOMS PURPOSES, THE WRITTEN DESCRIPTION OF

THE SCOPE OF THESE INVESTIGATIONS IS DISPOSITIVE.

3\. FOR FURTHER REPORTING PURPOSES THIS CASE HAS BEEN ASSIGNED

INVESTIGATION NUMBER C-570-936.

4\. FOR IMPORTS OF CIRCULAR WELDED CARBON QUALITY STEEL LINE

PIPE, CBP SHALL SUSPEND LIQUIDATION OF SUCH SHIPMENTS, ENTERED

OR WITHDRAWN FROM WAREHOUSE, FOR CONSUMPTION, ON OR AFTER

NOVEMBER 24, 2008. EFFECTIVE NOVEMBER 24, 2008, CBP SHALL

REQUIRE, FOR SUCH ENTRIES, A CASH DEPOSIT OR THE POSTING OF A

BOND EQUAL TO THE (MARGINS/SUBSIDY RATES) SHOWN BELOW:

MFR/PRODUCER CUSTOMS ID SUBSIDY RATE

IAONING NORTHERN STEEL C-570-936-001 40.05%

PIPE CO., LTD.

HULUDAO SEVEN-STAR STEEL C-570-936-002 35.63%

PIPE GROUP CO., LTD.

(HULUDAO SEVEN STAR

GROUP), HULUDAO STEEL

PIPE INDUSTRIAL CO. LTD.

(HULUDAO STEEL PIPE), AND

HULUDAO BOHAI OIL PIPE

INDUSTRIAL CO. LTD.

(HULUDAO BOHAI OIL PIPE)

(COLLECTIVELY, THE

HULUDAO COMPANIES)

ALL-OTHERS C-570-936-000 37.84%

5\. IN ACCORDANCE WITH T.D. 85-145, AT THE DISCRETION OF CBP,

CUSTOMS OFFICERS MAY ACCEPT EITHER A SINGLE-ENTRY BASIC

IMPORTATION AND ENTRY BOND OR A CONTINUOUS BASIC IMPORTATION

AND ENTRY BOND ONLY IF THE AMOUNT OF THE ESTIMATED ANTIDUMPING

OR COUNTERVAILING DUTY IS LESS THAN FIVE PERCENT AD VALOREM (OR

THE EQUIVALENT). OTHERWISE, WHERE THE IMPORTER HAS THE OPTION

TO POST A BOND FOR ESTIMATED ANTIDUMPING OR COUNTERVAILING

DUTIES, CUSTOMS OFFICERS MUST REQUIRE A SINGLE-ENTRY BASIC

IMPORTATION AND ENTRY BOND PURSUANT TO T.D. 85-147. YOU ARE

INSTRUCTED TO ADHERE TO THE REQUIREMENTS OF T.D. 85-145 WITH

RESPECT TO THESE BONDING REQUIREMENTS.

6\. IF THERE ARE ANY QUESTIONS REGARDING THIS MATTER BY CBP

OFFICERS, THE IMPORTING PUBLIC OR INTERESTED PARTIES, PLEASE

CONTACT DAVINA HASHMI OR RON TRENTHAM AT THE OFFICE OF AD/CVD

OPERATIONS, IMPORT ADMINISTRATION, INTERNATIONAL TRADE

ADMINISTRATION, U.S. DEPARTMENT OF COMMERCE, AT (202) 482-0984

OR (202) 482-3577, RESPECTIVELY (GENERATED BY O3/KJ).

7\. THERE ARE NO RESTRICTIONS ON THE RELEASE OF THIS INFORMATION.

DAVID M. GENOVESE