US applies China OCTG duties to Thai-made goods from Chinese steel
The U.S. Department of Commerce determined that seamless oil country tubular goods (OCTG) produced in Thailand using Chinese steel billets fall under existing antidumping and countervailing duty orders on OCTG from China. This expands the scope of duties to cover transshipment and input-based production, affecting goods exported by Boly Pipe Co., Ltd. to U.S. importers Commercial Steel Products LLC and JOL Tubular, Inc. The ruling targets a common circumvention method where Chinese steel inputs are processed in third countries to avoid direct tariffs.
Photo: Mr Alex Photography / PexelsUS Expands China OCTG Duties to Thai Production Using Chinese Inputs
On April 27, 2026, the U.S. Department of Commerce issued a final determination that seamless oil country tubular goods (OCTG) manufactured in Thailand using steel billets sourced from China are subject to existing antidumping and countervailing duty orders originally imposed on OCTG from China.
Scope of the Determination
Commerce ruled that seamless OCTG produced by Boly Pipe Co., Ltd. in Thailand and exported to U.S. customers Commercial Steel Products LLC and JOL Tubular, Inc. fall within the scope of the AD/CVD orders on OCTG from China. The key finding centers on the origin of the steel input: even though final production occurs in Thailand, the use of Chinese steel billets as the primary material triggers coverage under the original China OCTG orders.
OCTG—seamless pipes used in oil and gas well drilling and production—is classified under HS Chapter 73 (iron and steel products). The orders target a known circumvention strategy in which Chinese producers export semi-finished steel to third countries for final processing, allowing exporters to claim non-Chinese origin and avoid duties.
Who Is Affected
This determination directly impacts:
- U.S. importers of Thai-made OCTG, who must now apply China OCTG duty rates to goods from Boly Pipe, regardless of Thai manufacturing location
- Thai manufacturers sourcing Chinese steel billets for OCTG production
- Exporters and freight forwarders routing OCTG shipments through Southeast Asia as part of supply chain planning
The ruling reinforces Commerce's authority to track input origin, not just final assembly location, when determining duty scope.
What This Means for Shippers
Shippers importing OCTG must verify the full supply chain—including the geographic origin of steel inputs—before calculating landed costs and duty obligations. Even goods manufactured and shipped from non-China locations may trigger China-origin tariff treatment if key inputs derive from China.
For accurate duty estimation and compliance, importers should work with customs brokers and freight forwarders to document input sourcing and verify HS classification under Chapter 73. Learn more about tariff exposure and landed cost estimation at /landed-cost.
