Special safeguard re-investigation related to imports of stainless pipes into the territory of the Customs Union will have no negative impact on supplies from Ukraine
The Eurasian Economic Commission published the Notice "On initiation of a special safeguard re-investigation on corrosion-resistant stainless steel tubes & pipes with OD up to 426 mm incl. imported into the common territory of the Customs Union" on it’s official website on August 27, 2013. This investigation has started in accordance with the obligations of the Russian Federation under entry to WTO and is a logical follow-up in accordance with restrictive measures control mechanism applied in the Customs Union. It should be noted that this investigation will not have any negative impact on seamless stainless steel tubes & pipes supplies from Ukraine to the Customs Union, since it allows for mitigating the existing safeguard measure.
Restrictions of stainless steel tubes & pipes import into the territory of the Russian Federation has a separate history, which began in 2009 when anti-dumping duty of 28.1% was imposed against seamless stainless steel tubes & pipes imported into the territory of the Russian Federation. In 2010 the duty was changed to 9.9%, but not less than $ 1,500 per 1t. In 2012 it was decided to replace the duty by country quotas. Due to this decision a 5400t quota was allocated for Ukraine to ensure supplies in 2013. The quota was mostly allocated to Centravis Production Ukraine. The quota is in effect until the safeguard measure is over, i.e. until November 1, 2014.
According to the law, as effective period of the above mentioned safeguard measure already exceeds three years (i.e. since 2009), the competent authority represented by the Eurasian Economic Commission should start re-investigation. Consequently existing safeguard measure, which is in effect until November 1, 2014 can be retained, mitigated or suspended. Moreover, considering effective period of safeguard measure imposed on November 2, 2009 for three- year period (until November 1, 2012) was extended for two years until November 1, 2014 due to intermediate review; there are no possibilities to extend this measure within the current procedure.
Therefore, considering effective period of existing safeguard measure in the form of quota, it can be retained, mitigated or suspended as a result of safeguard re-investigation. The duration of the measure cannot be extended for longer than until November 1, 2014.