BEIJING (Commodity Online): Coming down heavily on the US over its decision to impose massive "anti-dumping" charges on steel pipes imported from China, the dragon nation termed the move as protectionist and vowed to take measures to protect its own domestic interests.

In a statement, China's Ministry of Commerce (MOC) said “We hope the United States can get rid of the bias and admit China's market economy status soon to tackle the double standards thoroughly and give Chinese enterprises equal and fair treatment".

Beijing will make the issue of trade and investment protectionism an issue at this week's Asia-Pacific summit, said the statement.

Retaliating on US decision, China said it will launch an anti-dumping and anti-subsidies probe into certain types of US cars and off-road vehicles.

China's Ministry of Commerce (MOC) said it had launched anti-dumping, anti-subsidy investigations into US-made off-road vehicles and sedans with engine displacements of 2.0 liters and above.

The US Commerce Department on Thursday slapped preliminary anti- dumping duties on Chinese-made steel pipes used in the oil and gas industry.

As a result, a 36.53-percent tariff will be imposed on oil country tubular goods (OCTG) from 37 Chinese companies, while some other companies will be levied a preliminary dumping rate of 99.14 percent.

They are in addition to the preliminary extra duties of 10.69 percent to 30.69 percent which the US Commerce Department announced in September for Chinese oil pipes.

It was the biggest US trade action against China to date, topping US President Barack Obama's earlier decision to put a 35 percent tariff on $1.85 billion of Chinese-made tires.

Analysts said the action will hit Chinese exports that were worth around $3.2 billion last year. The steel pipe anti-dumping case will impact more than 90 Chinese steel plants, many of them major employers.

China's steel exports to the US fell by 73 percent in the first eight months of the year, the China Iron and Steel Association said last month.

Meanwhile the new sanctions might create more worries to India as some Chinese manufacturers are evading anti-dumping duty by routing the same through India.

India’s Directorate of Revenue Intelligence in its annual report for 2008-09 said "Analysis of some of the cases detected during the year indicate that the objective was to evade payment of anti-dumping duties. Such frauds are being resorted to on account of increasing number of regional trade agreements or imposition of anti- dumping duties which impose country-specific restrictions or bestow tariff concessions on basis of country of origin of the goods concerned."

The investigators found that Chinese suppliers sent pipe fittings to Indian importers who would warehouse them, unpack the containers and pack them again in fresh containers before it is shipped to the abroad buyers. The new consignments would be covered by a different set of invoices (with 5-8% value addition) and documents showing them to be of Indian origin.

Imposition of Anti Dumping Duty is based on Commodity to Commodity, country to country and suppliers in Exporting countries.

2009-11-10 12:30:00

Source: www.commodityonline.com