Thursday, June 10, 2010

U.S. Sets Preliminary Penalties on Chinese Drill Pipe


The U.S. Commerce Department Tuesday set preliminary countervailing duties (CVD) on imports of some 119.2 million dollar drill pipe from China, a move might escalate trade disputes between the two countries.

The department said in a statement that it “preliminary determined that Chinese exporters of drill pipe have received countervailable subsidies of 15.72 percent.”

As a result of this preliminary determination, Commerce will instruct U.S. Customs and Border Protection to collect a cash deposit or bond based on these preliminary rates.

In 2009, imports of drill pipe from China were valued at an estimated 119.2 million dollars, according to the Commerce Department.

The department said that it is currently scheduled to make its final determination in August 2010. Read more here and here.