Trump delays decision on steel and aluminium tariffs.

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A little background – back in March 2018, President Trump imposed worldwide tariffs of 25% on imports of steel and 10% on aluminum. Countries such as Canada, Mexico and the European Union were temporarily exempted from these tariffs.

Later in April, the US gave South Korea a permanent exemption from these tariffs in exchange for a 30% reduction of SK exports of steel to the United States.

One country not exempted was China, and as posted previously on this blog, China retaliated with their own duties on many US imports to the middle kingdom.

Fast forward to May 1st and the current administration has extended negotiations on steel and aluminium tariffs for an additional 30 days with Canada, Mexico and the European Union. Tentative agreements have been reached with Argentina, Brazil and Australia.

Check back here for more details as they become available.

Givens & Johnston Secures Favorable Scope Ruling Regarding Pipe Spools.

Pipe Spools

Givens & Johnston PLLC recently secured a scope ruling excluding certain pipe spools manufactured in the People’s Republic of China (PRC) from Chinese anti-dumping duties (ADD) and countervailing duties (CVD). The exclusion covers pipe spools fabricated from non-Chinese originating pipe and pipe fittings (e.g. Japanese, Korean, U.S., etc.). In 2016, the ITA and Customs determined that all pipe spools fabricated in PRC were within the scope of the ADD & CVD orders applicable to Chinese pipe and pipe fittings as part of the ITA’s Westlake scope ruling decision.

In the Westlake case, the ITA declined to apply a substantial transformation analysis to the fabrication of pipe spools. Instead, the ITA used a mixed media analysis that looked at the components individually rather than as part of a whole. In Westlake, the ITA held that the pipe and pipe fittings fabricated into a pipe spool continue to have the same characteristics of pipe, so the ITA continued to treat them as pipe for ADD & CVD purposes. More recently, the ITA used the same method of analysis, except determined that because the non-Chinese origin pipe spool components were not subject to Chinese ADD & CVD, the fabrication into pipe spools did not change this result.

The full text of the scope ruling can be found here.

This ruling is crucial to companies who fabricate goods in the PRC from non-Chinese originating components and to any importers interested in importing pipe spools that are not subject to Chinese ADD & CVD. If you have any questions regarding how this ruling may affect you or your business, please give Givens & Johnston a call:

950 Echo Lane, Suite 360
Houston, Texas 77024
Phone: (713) 932-1540
Fax: (713) 932-1542

Potential Expansion of ADD/CVD Orders for Seamless Pipe from China to Include Pipe Rack Modules.

Seamless Pipe

On April 6, 2017, the ITA posted a scope ruling request filed by United Steel, Paper and Forestry, Rubber, Manufacturing Energy, Allied Industrial and Service Workers International Union (“USW”) attempting to extend the existing ADD & CVD cases against seamless pipe from China to include pipe rack modules. The 2016 Westlake scope ruling extended existing ADD & CVD cases against various types of pipe from China to include pipe spools, and the new request cites to Westlake extensively. If this case is successful, CBP will most likely apply it to more than just modules fabricated seamless pipe from China but to any pipe subject to an ADD or CVD case.

Givens & Johnston is currently pursuing multiple scope rulings clarifying Westlake pipe spool rulings and can provide immediate consultations about how importers and producers might respond.

Now is the time to get involved! Importers and producers can more easily impact or derail the scope rulings before a bad ruling is issued.

Please call David Hsu (713.932.1540) if you have any questions or would like more information.