In Mexico's second sunset review of the compensatory tariff imposed on the import of seamless steel pipe from China, the Mexican government decided to maintain the duty for now, the countervailing tariff imposed in 2014 of $1,568.92/mt. Although that figure has depreciated 25.4 percent due to inflation, the government mentioned that these products are taxed with additional taxes of 25 and 35 percent.
“The administrative procedure of the ex officio review continues without modifying the countervailing duty of $1,568.92 per metric ton,” the Ministry of Economy published in a statement in the official Mexican gazette (DOF).
The exporting company, importers or the representation of the Chinese government in Mexico have not participated in the review process. The Mexican government said that “it grants a period of 20 business days for the interested parties accredited in the procedure, if they consider it appropriate, to appear before the Ministry of Economy to present the arguments and complementary evidence that they deem relevant”.
According to a calculation by SteelOrbis, this compensatory tariff imposed in 2014, due to inflationary effects, lost 21.4 percent of its value. At present value, the $1,568.92 of January 2014, at the purchasing power of April 2024, is equivalent to $2,103.0.
The administrative procedure for the ex officio review of the CVD was at the request of the Mexican unit of the Italian-Argentinian Tenaris, Tubos de Acero de México (TAMSA), better known as TenarisTamsa.
The product enters Mexico through tariff items 7304.19.01, 7304.19.04, 7304.19.99, 7304.31.01, 7304.31.10, 7304.31.99, 7304.39.01, 7304.39.10, 7304.39.91, 7304.39.92 and 7304.39.99 of the Law of General Import and Export Taxes (TIGIE).
However, the government recalled that last April it modified the TIGIE to decree additional tariffs of 25 to 35 percent on steel products imported from countries with which Mexico does not have a free trade agreement. China is one of the countries with which there is no trade agreement.
Economía said that the tariff fractions with the 25 percent tax are: 7304.19.01, 7304.19.99, 7304.31.01, 7304.31.10, 7304.31.99 and 7304.39.10. With the 35 percent tariff they are 7304.19.04, 7304.39.01, 7304.39.11, 7304.39.91, 7304.39.92 and 7304.39.99.
The Ministry of Economy said that the product in question is known in the United States as seamless standard pipe, seamless pressure pipe, seamless line pipe or seamless structural pipe.