U.S. Customs Finds Evasion by Thai Exporters of AD/CVD Duties on OCTG From China

WASHINGTON, May 29, 2024 (Newswire.com) - The U.S. OCTG Manufacturers Association (“USOMA”) announces that U.S. Customs and Border Protection agency (“Customs”) has determined that there is a reasonable suspicion of evasion of the antidumping (“AD”) and countervailing (“CVD”) duties on oil country tubular goods (“OCTG”) from China by transshipment of OCTG through Thailand. In particular, on May 23, 2024, Customs found that two (2) Thai companies, Petroleum Equipment (Thailand) Co., Ltd. ("PET") and Thai Oil Pipe Co., Ltd. ("TOP"), have been transshipping OCTG produced in China to the United States while falsely declaring the merchandise to be of Thai origin. Moreover, Customs found that the following ten (10) U.S. importers were importing Chinese OCTG that had been transshipped through Thailand by PET and TOP:

1. Amek Aluminum & Stainless, Inc.;
2. Centric Pipe LLC;
3. Copley International Group Co Ltd;
4. Energy Pipe & Equipment Rentals LLC;
5. Kana Energy Services Inc.;
6. LE Commodities, LLC;
7. Lixin Energy Group (HK) Co.;
8. Limited; Longfellow Energy, LP;
9. Trek Metals Inc.; and
10. TSPGA LLC 

Customs initiated this investigation after USOMA filed an allegation pursuant to the Enforce and Protect Act (“EAPA”) that detailed PET’s and TOP’s transshipment schemes.

In accordance with the EAPA statute and regulations, Customs stated that it will implement the following interim measures based on its affirmative preliminary determination:

• Extend liquidation of unliquidated entries that entered before the date of initiation, February 23, 2024; 
• Suspend liquidation of unliquidated entries entered on or after the date of initiation, February 23, 2024, and reject any entry summaries and require a re-file for those entries that are within the entry summary reject period; 
• Require “live” entry for all imports of certain oil country tubular goods manufactured by Petroleum Equipment (Thailand) Co., Ltd. or Thai Oil Pipe Co., Ltd., requiring the importers to submit proper documentation and all duties prior to release of the merchandise; and
• The AD rate is the “PRC-Wide Entity” rate of 99.14 percent and the CVD rate is the “All Others” rate of 27.08 percent.  

“USOMA commends Customs for reaching this preliminary determination of evasion, and we look forward to continuing to work together on this EAPA investigation of Thai exports,” said Luca Zanotti, President of Tenaris USA and Chairman of USOMA. “Measures like this help promote a healthy, competitive U.S. OCTG supply chain to responsibly develop America’s energy resources with reliable, high-quality products, with a lower carbon footprint.” 

Customs will issue a more detailed memorandum explaining its initial determination of evasion on May 31, 2024. Following this initial determination, Customs has seven (7) months to continue its investigation and determine appropriate penalties.

“Customs’ strong enforcement of U.S. trade remedy laws allows U.S. domestic producers to continue making investments in American manufacturing and American workers,” said Jacky Massaglia, Senior Vice President of Vallourec North America and the Vice Chairman of USOMA. “Filing this EAPA allegation was the first step that USOMA has taken to combat unfairly traded imports, but it will certainly not be our last.”

Added Roger Schagrin of Schagrin Associates, General Counsel to USOMA, “Customs has demonstrated time and again that it will act to stop Chinese producers and their accomplices from cheating the United States out of AD/CVD, 232, and 301 duties that cost Americans thousands of highly paid jobs. USOMA members have shown their commitment to going the extra mile to work with Customs to enforce our trade laws.”

About USOMA

The U.S. OCTG Manufacturers Association (USOMA) is a Washington, D.C.-based trade association that promotes the interests of U.S. manufacturers of oil country tubular goods (OCTG), a specialized type of steel pipe used in the exploration and production of oil and gas. The current members of the group are Tenaris USA, Vallourec Star LP, Borusan Pipe US, PTC Liberty Tubulars, Welded Tube US, Axis Pipe and Tube, and BENTELER Steel and Tube. These seven (7) companies have twenty (20) facilities in ten (10) states and employ almost 8,000 American workers.

Source: USOMA