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TAMSA succeeds in imposing quota on solar accessories from China

Tubos de Acero de México (TAMSA) managed to get Mexico to renew the countervailing duties for dumping on imports of solar accessories from China.

In a resolution published this Wednesday in the Official Gazette of the Federation (DOF), the Ministry of Economy declared the administrative procedure for examining the validity of the countervailing duty imposed on imports of carbon steel connections for butt welding originating in China, regardless of the country of origin, who enter through tariff section 7307.93.01 of the TIGIE, or by any other.

The Ministry of Economy decided to extend the validity of the definitive compensatory quota for five more years, counted from August 5, 2019.

On February 2, 2011, the final resolution of the first examination of the validity of the countervailing duty was published in the DOF. It was then decided to modify the compensatory quota from 2.07 to 1.05 dollars per kilogram and extend it for another five years.

Then, on July 2, 2015, the final resolution of the second examination of the validity of the countervailing duty was published in the DOF. It was decided to extend it for another five years.

TAMSA noted that non-market conditions prevail in China and in the steel butt-weld connection industry, in accordance with the Protocol of Accession of the People’s Republic of China to the World Trade Organization and articles 33 of the Law of Foreign Trade (LCE) and 48 of the Regulation of the Foreign Trade Law (RLCE).

In addition, TAMSA indicated that pursuant to subparagraph a) of paragraph 15 of China’s Protocol of Accession to the WTO, the possibility of using prices or costs in China or a different methodology for purposes of price comparability is established.

TAMSA

The product under review is carbon steel butt weld fittings with outside diameters in the range of ½ to 16 inches, inclusive of both, and comprises elbows, tees, reductions and caps (elbows, tees, reducers and caps. , in English). They are also known as carbon steel butt weld fittings, or by their English name “fittings”.

TAMSA argued that in China the State continues to control in a centralized and planned manner the macroeconomic variables that determine prices and costs, particularly in the steel sector.

According to the China Trade Policy Review Report number WT / TPR / S / 342, published by the WTO on June 15, 2016 (China Trade Policy Review 2016), a basic economic model in which public ownership continues to be the central pillar of the economy, even when allowing the parallel evolution of various forms of ownership, sectors of strategic importance (e.g. energy, public services, transportation, finance, telecommunications, education, and healthcare) remain only partially open to private investment;

Finally, TAMSA stated that it is the only company in Mexico that produces carbon steel butt-weld connections. To support it, he presented a letter from CANACERO dated June 12, 2019 that confirms it.

In 2019, TAMSA’s exports of this product totaled 9.4 million dollars, the vast majority to the United States.

 

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