U.S. sets preliminary penalties on China's oil pipes in record case

WASHINGTON, Nov. 5 (Xinhua) -- The U.S. Commerce Department on Thursday set preliminary anti-dumping duties on imports of Chinese-made oil pipes, the biggest U.S. trade action against China.

MORE DUTIES ON CHINESE GOODS

The Commerce Department said it "preliminarily determined that Chinese producers/exporters have sold OCTG (oil country tubular goods) in the United States at prices ranging from zero to 99.14 percent less than normal value."

The OCTG are widely used in oil and gas drilling.

As a result of this preliminary determination, a 36.53-percent levy will be imposed on the OCTG from 37 Chinese companies, while some other Chinese companies will receive a preliminary dumping rate of 99.14 percent.

The tariffs go into effect immediately, but since the finding is preliminary, U.S. Customs and Border Protection officials will collect cash deposits or bonds.

If the preliminary finding is not upheld, the money will be returned.

From 2006 to 2008, imports of OCTG from China increased 203 percent by value and amounted to an estimated 2.6 billion dollars in 2008, according to the U.S. Commerce Department.

In September, the U.S. Commerce Department also issued a preliminary countervailing duties ranging from 10.9 percent to 30.6 percent on oil pipe imports from China.

The department said that it will make its final determination of antidumping and countervailing duties next year.

With the Commerce Department's determination, the U.S. International Trade Commission (ITC) will make an affirmative final determination that the imports of wire decking from China materially injure, or threaten material injury to, the domestic industry.

The Commerce Department will issue an anti-dumping duty order or a countervailing duty one based on the ITC's decision.