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| Russian Govt To Hold Public Hearing On Review Of UO Pipe Safeguard |
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It is likely that Russia's government will hold a public hearing in Moscow in late October to review the existing safeguard duty on imports of UO pipes from Japan and elsewhere, according to information made available in Tokyo. The safeguard duty took effect from December 2006 for a three-year term that expires December 20 this year. It is uncertain whether results of the public hearing will lead to the revocation of the safeguard duty because local pipe manufacturers are demanding its extension. In 2005, Russia's three pipe manufacturers Vyksa, Chelyabinsk, and Vozhsky requested the government to conduct an injury investigation into pipe imports for large-diameter welded pipes with 508mm or more outer diameters (namely UO pipes). At the time, Japan's integrated steelmakers claimed that no safeguard duty should apply to their exports of UO pipes to Russia because the exports feature products of high quality that cannot be produced in Russia. It was the Japan Iron & Steel Federation that acted a champion of the Japanese steelmakers. The Russian government, though, decided to impose an 8% safeguard duty for three years besides a normal 5-20% duty on UO pipe imports from December 2006. The term of the safeguard duty runs out December 20 this year. But the Russian pipe manufacturers concerned have requested the government to extend the term. In Russia, there is an environment where active demand for UO pipes exists in projects such as energy developments in the Russian Far East. Therefore, it is natural for the Japanese steelmakers to solicit the revocation of the safeguard duty. The Russian government is expected to hold a public hearing in Moscow in late October toward a review of the safeguard duty. There are prospects that Russia's UO pipe users such as Gazprom will argue against an extension of the safeguard duty because they need supplies of Japanese UO pipes. |
| last modified : Thu 22 Oct, 2009 [10:31] |
