NEW YORK An importer of
oil country tubular goods (OCTG) that are heat-treated and
finished in Indonesia from Chinese green tube is fighting U.S.
producers efforts to maintain countervailing and
anti-dumping duties on the product, arguing that the product
doesnt fall under the scope of the order.
Responding to a letter by
Maverick Tube Corp., a unit of Luxembourg-based pipe and tube
maker Tenaris SA, legal counsel for Gainesville, Texas-based
Bell Supply Co. LLC refuted in an April 16 submission to the
Commerce Departments International Trade Administration
the producers claim that Chinese finishing operations in
third-party countries are targeting the United States in such a
way that "all OCTG grades produced in China may escape the
orders with only minimal processing and value added in third
"There is substantial value
added from the green tube sales to the finished product. ...
The Chinese green tube processed and finished by (Indonesian
processor PT Citra Tubindo Tbk) is substantially transformed
and its finished OCTG products are Indonesian, not Chinese, and
thus are not in the scope of the OCTG orders and are not
circumventing those orders," according to the submission by
attorneys at Washington-based Morris, Manning & Martin
Domestic producers have argued
that omitting such product from countervailing and anti-dumping
duty orders would lead to a host of other processors in
third-party countries being established, with the material
subsequently flooding the U.S. market. One producer described
the impact to the U.S. market as potentially "devastating" (
amm.com, April 16).
But Bell questioned the basis
for this claim. "The (anti-dumping and countervailing duty)
petitions were filed four years ago, and the orders have been
in place for three years," Bells submission said. "Where
are these facilities?"
Bell also disputed that its supply agreement with Citra
Tubindo was established specifically to circumvent the duties,
noting that the deal was reached more than six months before
the duties went into effect.