On 21 July 2015, a group of petitioners
("Petitioners") asked the United States
Department of Commerce ("DoC") to
initiate an anti-dumping investigation into import of
"heavy-walled rectangular welded carbon steel pipes and
tubes", which originate from Turkey, South Korea or Mexico and
are classified under the tariff code numbered 7306.61.1000
("Product"). The Petitioners also
requested a subsidy investigation be launched into imports of the
Product from Turkey.
The Petitioners were Atlas Tube, a division of JMC Steel Group,
Bull Moose Tube Company, EXL TUBE, Hannibal Industries, Inc.,
Independence Tube Corporation, Maruichi American Corporation,
Searing Industries, Southland Tube, and Vest, Inc.
The request against Turkey claimed that producers in the United
States were being damaged through establishment of unfair
competition conditions. In particular, the Petitioners claimed:
The Product is sold in the United
States at less than fair value, compared to the prices in Turkey,
equating to between 96.5% and 108.6% of the Turkish pro-rated
The Turkish Government grants
benefits to Turkish producers and exporters which equate to
Accordingly, the United States International Trade Commission
("ITC") will investigate the
Petitioners' allegations regarding injury of local producers,
while the DoC will investigate whether dumping or subsidies
The Petitioners identified 14 Turkish producers and exporters
which will likely be involved in the investigations. The DoC and
the ITC will likely have already sent questionnaires to selected
Turkish producers and exporters; most likely the largest ones.
Other Turkish producers can voluntarily respond to the
questionnaires, if the ITC or the DoC respectively allow. The ITC
and the DoC aim to collect as much detailed data as possible in
relation to the amount of dumping, subsidy, or injuries. The
information includes sale volumes, as well as production or
It is crucial to respond to the questionnaires and cooperate
with the ITC and the DoC. Failure to do so can result in less
favorable investigation outcomes for Turkish producers and
Non-cooperation will essentially result in the investigation
determinations being made based exclusively on data provided by the
Petitioners. Accordingly, the Turkish producers and exporters could
be forced to pay anti-dumping and/or countervailing duties at
higher rates. This will naturally decrease the market share of
Turkish Products in the United States.
The estimated investigation dates are (subject to change):
4 August 2015 – Last date to
reply to the ITC questionnaires
10 August 2015 – Initiation of
the DoC investigation
11 August 2015 – Preliminary
hearing to be held by the ITC
4 September 2015 – Preliminary
injury determination to be made by the ITC
14 October 2015 – Preliminary
countervailable subsidy determination to be made by the DoC
28 December 2015 - Preliminary
dumping determination to be made by the DoC
Turkish manufacturers have become more familiar with United
States trade remedies as a result of recurring investigations over
the last decade. However, the latest investigation confirms that
Turkish manufacturers should very cautiously and carefully monitor
their prices to ensure they do not lose market share established
The latest investigation is a good illustration that both
developing and developed countries are prepared and willing to
adopt trade measures as a shield to protect local industries.
By their nature, investigations may be politically driven,
regardless of where they are initiated. Accordingly, it can be
difficult to obtain positive results by simply filing responses to
the authorities unless price determinations and market monitoring
have been carried out and recorded during the course of
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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