| The U.S. Commerce Department issued preliminary duties of as much as 429 percent on Chinese steel drill pipe, saying those items are being unfairly dumped into the American market.
The average duties will be 106.82 percent, the department said today in a statement. While the case continues, importers of the product will have to deposit the duty payments with the U.S. government.
Companies such as closely held VAM Drilling USA Inc. and a U.S. subsidiary of Moscow-based OAO TMK sought the duties on $119 million in imports of the pipe, which is used in drilling for oil. The United Steelworkers union joined the complaint.
Chinese producers have faced a record number of complaints from U.S. makers of products such as glossy paper, aluminum tubes, bolts and steel. Chinese officials have said the spate of cases represents protectionism and have challenged at the World Trade Organization the way the U.S. levies such duties.
Imports of the drill pipe fell to $119 million last year from $194 million in 2008, according to the Commerce Department.
A separate complaint by the same companies, saying that the drill pipe is subsidized, resulted in a decision in June that the Chinese companies must pay preliminary duties of 15.72 percent.
Under the Commerce Department findings, DP Master Manufacturing Co. Ltd. received a preliminary rate of 206 percent and Baoshan Iron & Steel Co. Ltd. a rate of 7.64 percent, while Shanxi Yida Special Steel Imp. & Exp. Co. Ltd. wasn’t assessed a dumping duty. Three other companies that weren’t identified will pay the average duty of 106.82 percent, the department said today in the statement. All other producers face the 429 percent tariff.
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