DOC: Cast Iron Soil Pipe from China Aided by Countervailing Subsidies, Dumped in U.S.

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The U.S. Department of Commerce. qingwa/Adobe Stock

The U.S. Department of Commerce (DOC) on Monday announced an affirmative determination in its anti-dumping and countervailing duty investigations of cast iron soil pipe imports from China.

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According to the DOC, China’s cast iron soil pipe exporters have sold the product at less than fair value in the United States at a rate of 235.93% and received countervailable subsidies at rates ranging from 14.69% to 109.27%.

The domestic petitioner in the case was the Cast Iron Soil Pipe Institute based in Mundelein, Illinois. According to the DOC, imports of cast iron soil pipe from China were valued at $11.5 million in 2017.

“In the AD investigation, Commerce assigned a dumping rate of 235.93 percent to mandatory respondent Yuncheng Jiangxian Economic Development Zone HengTong Casting Co., Ltd. (HengTong), the only responding mandatory respondent,” the DOC fact sheet for the investigation stated. “Commerce determined a dumping rate of 235.93 percent for the Chinawide entity, based entirely on a calculated rate. Commerce determined a dumping rate of 235.93 percent for all other exporters from China that Commerce found to be eligible for a separate rate.”

Meanwhile, for its countervailing duty investigation, the DOC calculated a subsidy rate of 14.69% for HengTong and 109.27% for Kingway Pipe Co., Ltd. (based on “adverse facts available”). The DOC determined a rate of 14.69% for all other Chinese producers and exporters.

The case now moves to the U.S. International Trade Commission (ITC), which will make its final injury determinations by April 8. If the ITC rules in the affirmative, the DOC will then issue anti-dumping and countervailing duty orders.

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The U.S. imported 15,695 metric tons of cast iron soil pipe from China in 2017, down 22.1% from the 20,147 metric tons imported in 2016. The value of 2017 cast iron soil pipe imports fell 15.3% from the $13.6 million in 2016 to $11.5 million in 2017.

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