US set preliminary duties on China steel cylinders

The U.S. Commerce Department said on Thursday it has set additional preliminary duties of 5 to 26 percent on high-pressure steel cylinders from China to protect the only remaining U.S. producer of the product.

Norris Cylinder Company, based in Longview, Texas, asked for duties earlier this year to offset alleged Chinese government subsidies and unfair pricing practices.

The Commerce Department announced a preliminary 22.34 percent countervailing duty in October on Chinese steel cylinders, and on Thursday added preliminary anti-dumping duties of 5 to 26 percent.

However, in its petition, Norris alleged Chinese producers were "dumping" steel cylinders in the United States at prices 17 to 176 percent below fair market value.

U.S. imports of the cylinders, which are typically used to store or transport compressed or liquefied gas, totaled about $48.8 million from China in 2010, up from $29.1 million in 2009, the Commerce Department said.

The department will make its final decision on duty rates in February. Until then, U.S. customs will collect a cash deposit or bond from importers based on the preliminary rates.

The U.S. International Trade Commission has to give its approval before the Commerce Department can issue final anti-dumping and countervailing duty orders.

That vote is expected in April.

? Thomson Reuters 2011. All rights reserved.