Preliminary ruling would place tariff on Chinese imports

The ruling calls for 17
percent tariffs on Chinese pipe.

By DON SHILLING

VINDICATOR BUSINESS EDITOR

Wheatland Tube, Sharon Tube and other pipe producers scored a victory in their battle to place tariffs on Chinese imports.

The U.S. Department of Commerce issued a preliminary ruling Tuesday that would place tariffs of 17 percent on shipments from most Chinese producers.

A final ruling on the case won’t come until spring, but this step was hailed by those who make standard pipe, which is used in plumbing, sprinkler systems and fences.

“This important decision sends a strong message to China and other countries that government subsidies to pipe and tube producers will not be tolerated by the U.S. government,” said Armand Lauzon, chief executive of John Maneely Co., which owns Wheatland Tube and Sharon Tube.

The domestic producers say China has targeted their industry by offering preferred lending terms and direct subsidies to its pipe producers. Imports of standard pipe from China have increased from 10,000 tons in 2002 to 750,000 tons this year.

“All we ask for is a chance to compete based on quality without the intervention of foreign governments,” Lauzon said.

In the past 18 months, John Maneely Co. has blamed low-priced imports for the closing of three plants, including one in Sharon.

Leo Gerrard, president of the United Steelworkers of America, said that government action will lead to producers’ “regaining their competitive footing, saving jobs and the rehiring of laid-off workers hurt by the onslaught of illegal imports.”

The Commerce Department ruling carries tariffs that range from zero percent to 265 percent, but most producers would pay 17 percent. The tariffs vary by the amount of assistance the producer has received from the government.

The preliminary ruling means that importers must post bonds to cover the subsidies until a final ruling is made. Also, the ruling supports the domestic producers’ request that tariffs be applied retroactively by 90 days.

The Commerce Department is to issue its final ruling March 18. The case will then go to the U.S. International Trade Commission, which will decide the case in the spring.

The ITC also will rule on a dumping case filed by the domestic producers against the Chinese companies. Dumping is when product is sold at a lower price here than in the producer’s home market. The case seeks additional tariffs.

shilling@vindy.com