In a petition filed with the U. S. Department of Commerce on May 1, a coalition of U.S. manufacturers that produce carbon steel butt-weld pipe fittings used in pipeline applications in the oil and natural gas energy sectors charges that a 1992 antidumping duty order against butt-weld pipe fittings from China is being circumvented by Chinese pipe fittings that undergo minor processing in Malaysia. 

The coalition, whose members include Tube Forgings of America, Mills Iron Works and Hackney-Ladish, told DOC that companies in Malaysia are buying unfinished pipe fittings from China, performing finishing operations in Malaysia and selling the fittings to U.S. customers as products of Malaysia. 

In some cases, they contend the processing in Malaysia may be as minor as marking “Malaysia” as the country of origin.  These circumvention schemes enable manufacturers in China to avoid special import duties as high as 183%, the coalition charges.