USA decided to impose import duties on Turkish welded pipes

The US Department of Commerce (DOC) has tentatively decided to impose import duties on welded line pipes from Turkey. The decision was based on the fact that these products are manufactured using unfair government subsidies. Cheap imports of these products are holding back the growth of domestic industry. Meanwhile, taxes were excluded for imports from South Korea.

DOC found that Turkish manufacturers and exporters used excessive subsidies on welded line pipes supplied from the country. Borusan Mannesmann Boru and Tosyali Dis Ticaret AS were found to have subsidy rates of 8.85 percent and 3.76 percent, respectively. For all other Turkish companies, subsidies were 4.36 percent.

On the other hand, subsidies for South Korean producers and exporters were found to be below the threshold. DOC determined that NEXTEEL Co Ltd. and SeAH Steel Corporation received subsidy rates of 0.47 percent and 0.52 percent, respectively. DOC decided to exempt South Korean imports from duties. However, they said a parallel investigation should determine whether imported products from South Korea were sold at prices below cost. The positive conclusion of the investigation may become the basis for the introduction of duties on these products.

Following the approval of the DOC, the US Customs and Border Protection will be tasked with collecting monetary duties on the import of welded line pipes from Turkey.