New USITC Ruling Impacts Import of Oil Country Tubular Products

Amid recent global regulatory measures impacting steel imports and exportations, it has never been more essential for importers and suppliers of steel products to strengthen their supply chain and trade compliance programs. Certain regulations that affect the steel trade have been instituted this year; among them are the United States and the EU sanctions of certain oil and gas products to Russia, as well as the new Mexican Mill Certificate requirements.

Most recently, however, the United States International Trade Commission (USITC) determined that tubular products from certain oil producing countries have injured or threatened U.S. industry. The ruling will impact duty rates upon the importation of affected merchandise by imposing Antidumping or Countervailing duties.

The USITC’s determination was made on August 22, 2014 and will now affect tubular products from India, Korea, the Philippines, Saudi Arabia, Taiwan, Thailand, Turkey, Ukraine, and Vietnam. They are primarily classified in 7304.29, 7305.20 and 7306.29 USHTS.  The tubular products are alleged to be sold in the U.S. at less than fair value, and in the case of India and Turkey, the products are allegedly subsidized by the governments of those countries.

In its official publication log, the USITC defines the oil country tubular goods (OCTG) covered by the investigation as “hollow steel products of circular cross section, including oil well casing and tubing, of iron (other than cast iron) or steel (both carbon and alloy), whether seamless or welded, regardless of end finish (e.g., whether or not plain-end, threaded and coupled) whether or not conforming to American Petroleum Institute (“API”) or non-API specification, whether finished (including limited OCTG products) or unfinished (including green tubes and limited service OCTG products), whether or not thread protectors are attached. The scope of the investigations also covers OCTG coupling stock. (USITC 5) Excluded from the scope of the investigation are: casing or tubing containing 10.5 percent or more by weight of chromium; drill pipe; unattached couplings; and unattached thread protectors.”

For questions relating to how Allyn can help your company navigate the USITC’s latest determination as well as other regulatory measures that affect steel exportation and importation, contact Global Trade Compliance Leader, Danielle Brazil at Brazil.d@allynintl.com.