NEW YORK The inclusion of unfinished oil country tubular goods (OCTG), also referred to as green tube, in anti-dumping and countervailing duties on the product has long precedent in trade cases, according to counsel representing the domestic industry.
"Since the 1980s, petitioners have always defined the scope of (anti-dumping and countervailing duty) orders on OCTG to include both finished and unfinished OCTG precisely to minimize potential circumvention and evasion through the finishing of subject OCTG in third countries," attorneys at Washington-based law firms Skadden, Arps, Slate, Meagher & Flom LLP, Wiley Rein LLP and Schagrin Associates wrote in rebuttal comments filed with the U.S. Commerce Department on behalf of domestic producers. The comments pertained to a scope inquiry on OCTG manufactured in China and finished in third-party countries.
The orders should apply to Chinese OCTG finished in third countries, as the original injury determination found that the U.S. industry is threatened by Chinese output regardless of the stage of processing, lawyers wrote in the filing.
Companies bringing processed Chinese green tubes into the domestic market have claimed that a 2010 ruling by U.S. Customs and Border Protection should determine the scope for green tube from China, but lawyers argued that Commerce has always made its own determination on the issue of substantial transformation, according to the filing.
Also, the transformation analysis done by Commerce is consistent with World Trade Organization rules, which only require countries to apply "a uniform practice with regard to rules of origin and ... issue country of origin rulings through a transparent process," according to the filing.
Domestic producers have said a narrow scope ruling in the case could be devastating for the U.S. market (amm.com, April 16).