NEW YORK A
deviation from a 2010 U.S. Customs ruling that the site of heat
treatment determines the country of origin for finished oil
country tubular goods (OCTG) could "harm the predictability
(of) doing business in the United States," an Indonesian
government official said.
The U.S. Commerce
Departments International Trade Administration (ITA)
issued a preliminary ruling recently that Chinese green tube
processed in third countries are subject to anti-dumping and
countervailing duties imposed on Chinese seamless product (
amm.com, June 5).
The government of
Indonesia believes that processed OCTG "undergo(es) certain
manufacturing processes that substantially transform imported
green tubes, i.e. from China, India and other countries.
Therefore, we are convinced that the country of origin of the
finished OCTG is Indonesia," director of trade defense Oke
Nurwan said in a letter to the ITA.
Other opponents of the
preliminary ruling claim the ITA erred in its analysis.
incorrectly analyzed the facts relating to ... four of the five
substantial transformation factors in the preliminary scope
ruling," lawyers at Washington-based law firm Miller &
Chevalier Chartered wrote on behalf of Toyota Tsusho America
Inc., the Georgetown, Ky.-based subsidiary of Nagoya,
Japan-based Toyota Tsusho Corp.
underestimated the sophistication of processing the tubes, the
substantive change in product properties that processing
causes, the cost of transformation and the level of investment
required to process the green tube, according to the law
Bell Supply Co. LLC,
whose agreement with Indonesias PT Citra Tubindo Tbk to
import processed green tubes from China to the domestic market
formed the basis of the ITAs investigation, wrote that in
the original anti-dumping investigation on the product the
International Trade Commission (ITC) did not address processed
green tubes. "Consequently, as a matter of law, the department
may not now include this merchandise within the scope of the
orders," lawyers at Washington-based Morris, Manning &
Martin LLP wrote on behalf of Gainesville, Texas-based Bell
A final ruling by the
ITA is expected by Sept. 30.
Some OCTG market
participants have flagged up the importance of the case (
amm.com, June 25) and one of the domestic
manufacturers that initiated the scope inquiry last year said
that the U.S. market could be flooded with Chinese OCTG if a
narrow ruling was applied (
amm.com, April 16).