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UNITED STATES DEPARTMENT OF COMMERCE

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					                  ••UNITED STATES DEPARTMENT OF COMMERCE
                     INTERNATIONAL TRADE ADMINISTRATION
                            IMPORT ADMINISTRATION

                     COUNTERVAILING DUTY QUESTIONNAIRE

                           Countervailing Duty Investigation
       Light-Walled Rectangular Pipe and Tube from the People’s Republic of China

                                       C-570-915


PERIOD OF INVESTIGATION:                Calendar Year 2006 or the Most Recently
                                        Completed Fiscal Year, if All Companies Have
                                        the Same Fiscal Year

SECTIONS II and III
  RESPONSE DUE DATE:                    November 2, 2007

OFFICIALS IN CHARGE:                    Shane Subler, Analyst, (202) 482-0189
                                        Damian Felton, Analyst, (202) 482-0133

FAX:                                    (202) 501-5439

EMAIL:                                  Shane_Subler@ita.doc.gov
                                        Damian.Felton@mail.doc.gov


Return Questionnaire Response to:

       Secretary of Commerce
       Import Administration/Central Records Unit
       U.S. Department of Commerce
       Fourteenth Street and Constitution Avenue, NW
       Room 1870
       Washington, D.C. 20230


STATUTORY REFERENCE:                    Tariff Act of 1930, Title VII, as amended

REGULATORY REFERENCE:                   19 CFR Parts 351 and 354
                            COUNTERVAILING DUTY INVESTIGATION
                                        TIME LINE

                                                                 Days per       One-year
                                                                  Event          Count

Initiation                                                           0             0
Questionnaire Issued                                                 7             7
Notification of Difficulty in Responding to the                     14            28
Questionnaire (14 days after receipt)
See 351.301(c)(2)(iv)

Response                                                            37            44
See 351.301(c)(2)(iii)

Supplemental Questionnaire                                           7            51
Allegation of Upstream Subsidies                                                  55
See 351.301 (d)(4)(ii)(A)

Supplemental Response                                                7            58
Preliminary Determination                                          65**          65**
See 351.205(b)(1)

Submission of Proposed Suspension Agreement                          7            72
See 351.208(f)(1)(B)

Submission of Ministerial Error Comments                             5            75
See 351.224(c)(2)

Request to Align CVD case with concurrent AD                                      77
case See 351.210(I)
Submission of Factual Information                                                 79
See 351.301(b)(1)

Verification                                                        15          86-101
See 351.307

Verification Report                                                 14            115
Case Briefs Due                                                     50            122
See 351.309(c)(1)(I)

Rebuttal Briefs Due                                                  5            127
See 351.309(d)

Hearing                                                                           129
See 351.310(d)(1)

Final Determination Issued                                          75           140**
See 351.210(b)(1)
Most of the deadlines shown here are approximate. The actual deadline in any
particular segment of a proceeding may depend on the date of an earlier event
or be established by the Secretary.
** May be extended.
                                PUBLIC SERVICE LIST

The public service list is a compilation of parties with Administrative Protective Order
(“APO”) access, interested parties, and other parties who have requested to be included
on the Public Service List. Only the authorized applicants with an APO are entitled to be
served with business proprietary information. All parties on this list are entitled to public
documents and public versions of proprietary documents.

Representative of Allied Tube & Conduit;
Atlas Tube; Bull Moose Tube Company;
California Steel and Tube; EXLTUBE;                Zhangjiagang Zhongyuan Pipe-Making Co.,
Hannibal Industries; Levitt Tube Company           Ltd.
LLC, Maruichi American Corporation;
Searing Industries; Southland Tube; Vest
Inc.; Welded Tube; and Western Tube and            Grant Shuguang Dong, Esq.
Conduit                                            Commerce & Finance Law Offices

Roger B. Schagrin, Esq.Schagrin                    6/F NCI Tower
Associates900 7th Street, NWSuite                  A12 Jianguomenwai Avenue
500Washington, DC 20001
                                                   Beijing, China 100022
Ministry of Commerce, People's Republic of
China, Bureau of Fair Trade for Imports
and Exports ("BOFT")                               Peter Koenig, Esq.
                                                   Miller & Chevalier
Lawrence A. Schneider, Esq.
Arnold & Porter LLP                                655 Fifteenth Street, NW
555 Twelfth Street, NW                             Suite 900
Washington, DC 20004-1206
                                                   Washington DC 20005-5701

Qingdao Xiangxing Steel Pipe Co., Ltd.
                                                   Representative of Guangdong Walsall Steel
No.48 204 Road Chengyang Distric                   Pipe Industrial Co., Ltd. (“Walsall”)
Qingdao City
Shandong Province 266109                           Ronald M. Wisla, Esq.
China                                              Garvey Schubert Barer
                                                   1000 Potomac Street, NW
Kunshan Lets Win Steel Machinery Co., Ltd.         5th floor
("Lets Win")                                       Washington, DC 20007-3501

Philippe M. Bruno, Esq.                            Jiangyin Jianye Metal Products Co., Ltd.,
Greenberg Traurig, LLP                             (“Jiangyin Jianye”)
800 Connecticut Avenue, NW
Suite 500                                          Frederick P. Waite, Esq.
Washington, DC 20006                               Vorys, Sater, Seymour and Pease LLP
1828 L Street, NW
11th Floor
Washington, DC 20036-5109
                                CONTENTS

SECTION I     GENERAL INSTRUCTIONS

              I.     Producers/Exporters Subject to Investigation
              II.    Scope and Time Period of Investigation
              III.   Filing Requirements and Guidelines


SECTION II QUESTIONNAIRE FOR THE GOVERNMENT OF THE PEOPLE’S
               REPUBLIC OF CHINA

              I.     General Questions
              II.    Program Specific Questions
              III.   Appendices


SECTION III   QUESTIONNAIRE FOR PRODUCERS/EXPORTERS OF
              SUBJECT MERCHANDISE

              I.     General Questions
              II.    Program Specific Questions
              III.   Appendices
                                          SECTION I
                                  GENERAL INSTRUCTIONS

The U.S. Department of Commerce (“the Department”) requests information about subsidies
alleged to be provided to producers/exporters in the People’s Republic of China (“PRC”) of
light-walled rectangular pipe and tube (“the subject merchandise” or “LWR”). Section 775 of
the Tariff Act of 1930, as amended (“the Act”), also requires the Department to investigate any
other potential subsidies it discovers during the course of this investigation that pertain to the
manufacture, production, or exportation of LWR.

If you have questions during the course of this investigation, we urge you to consult with the
official in charge named on the cover page. If for any reason you do not believe that you can
complete the response to the questionnaire by the date specified on the cover page of this
questionnaire, or in the form requested, you should contact the official in charge immediately.

Your response to the questionnaire should include all of the information requested. It is essential
and in your interest that the Department receive complete information early in the proceeding to
ensure a thorough and accurate analysis and to provide all parties the fullest opportunity to
review and comment on your submission and the Department’s analysis. We appreciate your
cooperation in this investigation.

I.     PRODUCERS/EXPORTERS SUBJECT TO INVESTIGATION

We have selected Qingdao Xiangxing Steel Pipe Co., Ltd. and Zhangjiagang Zhongyuan Pipe-
Making Co., Ltd. (in alphabetical order) as respondents. See Respondent Selection
Memorandum, August 7, 2007.

II.    SCOPE AND TIME PERIOD OF INVESTIGATION

       A.      Scope

       The merchandise that is the subject of this investigation is certain welded carbon-quality
       light-walled steel pipe and tube, of rectangular (including square) cross section (LWR),
       having a wall thickness of less than 4mm.

       The term carbon-quality steel includes both carbon steel and alloy steel which contains
       only small amounts of alloying elements. Specifically, the term carbon-quality includes
       products in which none of the elements listed below exceeds the quantity by weight
       respectively indicated: 1.80 percent of manganese, or 2.25 percent of silicon, or 1.00
       percent of copper, or 0.50 percent of aluminum, or 1.25 percent of chromium, or 0.30
       percent of cobalt, or 0.40 percent of lead, or 1.25 percent of nickel, or 0.30 percent of
       tungsten, or 0.10 percent of molybdenum, or 0.10 percent of niobium, or 0.15 percent
       vanadium, or 0.15 percent of zirconium. The description of carbon-quality is intended to
       identify carbon-quality products within the scope. The welded carbon-quality rectangular
       pipe and tube subject to this investigation is currently classified under the Harmonized
       Tariff Schedule of the United States (“HTSUS”) subheadings 7306.61.50.00 and
       7306.61.70.60. While HTSUS subheadings are provided for convenience and Customs
       purposes, our written description of the scope of these investigations is dispositive.

       B.        Period of Investigation

       The time period covered by this investigation (the period of investigation - “POI”) is as
       follows:

                calendar year 2006, or
                the most recently completed fiscal year, if all companies have the same fiscal year.

       It is the responsibility of the Government of China (“GOC”) to notify each responding
       company of the appropriate POI.

III.   FILING REQUIREMENTS AND GUIDELINES

       A.        Due Date

       1.        September 14, 2007, for Sections II and III

       2.        The GOC, the applicable local and/or provincial governments, and the companies
                 under investigation are responsible for forwarding their responses to the
                 Department in a timely manner such that they will be received by the Department
                 in Washington, D.C., no later than the close of business of the due date indicated
                 above. All laws, regulations, and other descriptive materials that supplement your
                 responses should be submitted on the same date as the initial responses.

       3.        Proprietary versions must be submitted by the due date specified above. The
                 public version may be filed one business day after the proprietary version.
                 However, you may not use this time as an opportunity to amend or revise in any
                 way the business proprietary version of the response. Responses containing no
                 proprietary information must be filed on the due date.

       B.        Number of Copies

       1.        Generally, you must submit six (6) copies (one original plus five copies).

       2.        If a response contains any proprietary information, under the “one-day lag rule”
                 (see 19 CFR 351.3031) you may submit one (1) copy of the business proprietary
                 document within the time limit; then, by close of business of the following
                 business day, you must submit:

                         Six (6) copies of the proprietary version

       1
           All references to the Department’s regulations refer to 19 CFR 351 and 354, as published in the
Federal Register on May 19, 1997 (62 FR 27296), May 4, 1998 (63 FR 24391), and November 25, 1998
(63 FR 65348), unless otherwise noted.
                                     3

            Three (3) copies of the non-proprietary version
            One (1) copy of the APO version, if one has been prepared.

     However, if you file an electronic copy of the proprietary version in Word Perfect
                                                                  6/7/8/9/10, you need
                                                                  file only four (4)
                                                                  copies of the
                                                                  proprietary version.
                                                                  Filing requirements
                                                                  for the non-
                                                                  proprietary and APO
                                                                  versions remain the
                                                                  same. If you opt to
                                                                  file an electronic copy
                                                                  of the proprietary
                                                                  version, please also
                                                                  certify that you have
                                                                  scanned the diskette
                                                                  for viruses.


     Note: the final business proprietary version must be identical to the business
     proprietary version filed on the previous day, except for bracketing corrections.

3.   If a response contains no proprietary information, you must submit:

            Six (6) copies (one original plus five copies) of the non-proprietary
            response.

4.   Please submit one courtesy copy each to the attention of Susan Kuhbach, Brandon
     Farlander, Shane Subler, Damian Felton and Salim Bhabhrawala to Room 3069A
     and Carrie Blozy to Room 4219.

C.   Document Format and Information Guidelines

1.   You are required to state in the upper right-hand corner of your cover letter:

     a.     the Department case number (C-570-915);

     b.     the total number of pages in the document including cover pages and
            appendices;

     c.     the numbers of any pages containing proprietary information; and

     d.     whether you agree or object to release of the submitted information under
            APO (see Section H below).
                                     4


2.   Please include a “Re:” line on the cover letter of your response, or any other
     submissions you make during this investigation. In the Re: line, briefly
     summarize the purpose of your submission, e.g., “response to questionnaire,”
     “case brief,” etc.

3.   In your response, please repeat the number and narrative of each question prior to
     providing your answer. We are enclosing a diskette with this questionnaire in
     Word Perfect 6/7/8/9/10 for your convenience. You may wish to scan the diskette
     for viruses before using it.
                                     5

4.   Prepare your response in typed form and in English or accompanied by an English
     translation. Any foreign language submission which is not accompanied by an
     English translation will be disregarded.

5.   In each of your answers, please list your source(s) of information. Please provide,
     with your response, copies of all source materials.

6.   Identify all units of measurement, currencies and conversion factors used in your
     narrative response, worksheets or other appendices. All monetary amounts should
     be shown in the currency in which they were originally denominated, and in the
     currency in which they are registered in your accounts (if the two are different).
     Also, report the actual exchange rate used for a particular conversion. For all
     values adjusted for inflation, please provide the data in both nominal and adjusted
     terms and explain how these values were adjusted.

7.   We request that tabulated information regarding company use of programs (e.g.,
     loans, loan guarantees, and grants) be submitted on IBM-PC compatible 3.5"
     DS/DD floppy disks or CDs, using the LOTUS 1-2-3 or Microsoft Excel financial
     spreadsheet program compatible with the Microsoft Disk Operating System (MS-
     DOS) software. Two sets of spreadsheet files on separate diskettes or CDs will be
     needed.

8.   Please file your questionnaire response in Washington, D.C. at the address listed
     on the cover page.

D.   Certification

     You must certify that all information you provide is accurate and complete.

     Section 782(b) of the Act requires that the providers of information and the person
     submitting it, if different (i.e., your legal representative), certify that they have
     read the information contained in the submission and that it is accurate and
     complete to the best of their knowledge. All submissions that do not contain such
     certification statements will be rejected at the time of filing. A form for such
     certification is included as Appendix 4 to Section II and Appendix 5 to Section III
     of this questionnaire. You may photocopy this form and submit a completed copy
     with each of your submissions; refer to 19 CFR 351.303 for guidance.

E.   Proprietary Information

     If you wish to make a request for proprietary treatment of particular information,
     refer to 19 CFR 351.304.

1.   As a general rule, all information will be made available in the public file unless
     proprietary treatment is requested.
                                      6

2.   You must indicate, at the time of your submission, whether the information is
     public or proprietary.

3.   Proprietary treatment may be requested for all or any part of the information
     submitted during this investigation.

4.   Proprietary treatment may not be requested for information which is publicly
     available.

5.   If we disagree with your contention that the information is proprietary, you either
     may agree to have the material made publicly available, or you may withdraw the
     material. Material which you withdraw will not be considered in our
     determinations.

6.   If we agree that the information is proprietary, we will not publicly disclose that
     information.

7.   Place brackets (“[ ]”) around information for which you request business
     proprietary treatment. Place double brackets (“[[ ]]”) around information for
     which you request proprietary treatment and which you do not agree to release
     under APO.

8.   Place double brackets (“[[ ]]”) around customer names. The Department may not
     release customer names under APO during an investigation.

F.   Public Summary of Proprietary Information

     Where you request proprietary treatment of information (see 19 CFR 351.304(a)),
     your response must be in accordance with one of the two options listed below:

1.   the public summary of the proprietary information must conform to the
     requirements of 19 CFR 351.304(c)(1); or

2.   alternatively, if you submit a statement that the information cannot be summarized
     as described in 19 CFR 351.304(b)(2), you must state all supporting reasons that
     you believe justify withholding the information.

     As indicated above, you are permitted to file and serve the public version of any
     document containing business proprietary information within one day after filing
     the business proprietary version. However, you may not use this time as an
     opportunity to amend or revise in any way the business proprietary version of the
     response.
                                     7

G.   Government Confidential Information

     Any government confidential information communicated to us should be clearly
     labeled, preferably with the national security classification mark of the responsible
     authority. The appropriate authority should also submit a statement explaining, in
     detail, why the information is confidential in accordance with U.S. Executive
     Order No. 12356.

     Please note that any company-specific information submitted by government
     authorities, for which the government is acting merely as a conduit, is not entitled
     to government confidential treatment; such information is covered by the
     proprietary standards outlined above.

H.   Administrative Protective Order

     Section 351.305 of the Department’s regulations permits limited disclosure to
     representatives of parties (e.g., legal counsel) of certain business proprietary
     information, under an administrative protective order. (Note that data received
     under an APO cannot be shared with others who are not covered by the APO.)
     Section 351.304(b) of the Department’s regulations requires that all submissions
     contain either:

1.   a statement which permits release under APO of information submitted by you in
     confidence during the course of the investigation; or,

2.   a statement itemizing which portions of that information should not be released
     under APO together with all arguments supporting any objections to release under
     APO.

     All submissions of proprietary information that do not contain one of these
     statements will be rejected at the time of the filing. You must state in the upper
     right-hand corner of the cover letter accompanying your questionnaire response
     whether you agree or object to release of the submitted information under APO
     (see 19 CFR 351.304(b) for specific instructions).

     If you do not agree to release all or part of the proprietary information, but we
     determine that the information should, in fact, be released, you will have the
     opportunity to agree to serve the contested proprietary information under APO or
     withdraw the information, according to 19 CFR 351.304(d). However, any
     information which you withdraw or which we return to you will be taken out of
     the official record and, thus, will not be used in our determination.

I.   Serving Other Parties to the Proceeding

1.   Parties under APO
                                     8

     a.     Section 777(b) of the Act requires that a submitter of proprietary
            information shall, at the same time the information is submitted to the
            Department, directly serve the information upon all other interested
            parties who are parties to the proceeding that are subject to the APO.

     b.     This section further states that the administering authority shall not accept
            any such information that is not accompanied by a certificate of service
            and a copy of the APO version of the document containing the
            information. Forms for such certification are included at Appendix 3 of
            Section II and Appendix 4 of Section III of this questionnaire. You may
            photocopy these forms and submit completed copies with each of your
            submissions.

2.   Parties not under APO

     a.     If an interested party is not covered by the APO, then the Department
            requires a submitter of information to serve public versions of the
            information to those parties.

     b.     The accompanying certificate of service must indicate which parties
            received only public versions.

3.   Submission of Public Information

     If an interested party is submitting information which is entirely public (i.e., the
     original, complete document contains no business proprietary information) the
     Department requires the submitter to serve the information to all interested parties
     in the investigation. The submission should also be accompanied by the
     certificate of service.

J.   Verification

     All information submitted will be subject to verification. Failure to allow full and
     complete verification of any piece of information may affect the consideration
     accorded to that or any other verified or non-verified item in the responses.
                                                 SECTION II

      QUESTIONNAIRE FOR THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF
                                 CHINA

This questionnaire requests information about programs alleged to be provided to
producers/exporters in the PRC of light-walled rectangular pipe and tube (“LWR” or “the subject
merchandise”). Section 775 of the Act also requires the Department to investigate any other
programs discovered during the course of this investigation that potentially confer
countervailable subsidies on the manufacture, production, or exportation of LWR.

I.      GENERAL QUESTIONS

        A.         Please provide the GOC’s tariff schedule numbers which correspond to the
                   HTSUS item numbers listed under Scope in Section I, General Instructions, of this
                   questionnaire. Provide the official description applicable to the products covered
                   by these numbers.

        B.         Please provide the 2005 and 2006 Annual Reports of the People’s Bank of China,
                   or, if not available, the most recently published Annual Reports.


II.     PROGRAM SPECIFIC QUESTIONS

        For each program, if no company(ies) under investigation or “cross-owned”companies as
        defined in Section III applied for, used, or benefitted from that program during the POI,
        the GOC must so state and provide a brief explanation of the program and a detailed
        description of the records kept on that program. Otherwise, please answer the questions
        listed.

        Respondents should be aware that the Department allocates the benefits received from
        certain types of subsidies over time.1 Although the POI is a recent period, we are
        investigating alleged subsidies received over a time period corresponding to the average
        useful life of renewable physical assets (“AUL”). In this investigation, the Department
        plans to use a 15-year AUL.2 Thus, we are investigating alleged subsidies received
        during the POI and the preceding 14 years.

        The government is responsible for providing the information requested below even if the
        alleged subsidy was received by companies, or their former parent companies, which
        have since been merged with, purchased by, or have transferred a substantial portion of
        their assets to, other companies. If former parent companies received assistance under

        1
            See 19 CFR 351.524.

        2
           Pursuant to 19 CFR 351.524(d)(2), interested parties may argue that the company-specific or country-
wide AUL for the industry under investigation differs “significantly” from 15 years. If so, the GOC will need to
report subsidies for the alternative AUL.
      any of the programs listed below, please indicate and provide separate answers.

      For any program which had multiple funding sources or was administered by different
      governmental levels, please provide information as to the roles played by each
      administrating authority.

      If a question requires information from other authorities, e.g., local governments, please
      forward questions to the correct source. However, it is the responsibility of the
      GOC to ensure that full and complete responses to questions on regional programs are
      obtained from the appropriate regional authority.

Government of the People’s Republic of China Programs

      A. Government Policy Lending:


      Petitioners allege that the GOC has a long-standing policy to develop and grow
      China’s steel industry, including producers of LWR, as set out, inter alia, in the
      policies named below. In pursuit of these goals, the GOC allegedly provided
      discounted and/or low cost loans, or interest subsidies through policy banks and
      state-owned commercial banks.


      Designations


      The GOC allegedly considers or has considered the steel industry, and specifically,
      the LWR industry, a “pillar” and “encouraged” industry. Further, provincial
      governments have allegedly designated certain LWR producers as “key,”
      “backbone,” “famous,” “priority” and/or “Province Special Grade Credit Venture”
      enterprises.


      (1) Identify the LWR producers that have received any of these designations.


      (2) Explain the purpose of these designations, the criteria for receiving any such
      designation and the benefits or obligations that arise from each such designation.


      (3) Describe how each of these designations relates to the industrial plans or
      policies of either the central or provincial governments. Is there any connection
                                                3

       between this designation and five-year plans or other industrial and/or economic
       policies or administrative measures? With respect to provincial level designations,
       please identify any corresponding central government designations for LWR
       producers.


       Five-Year Plans and Industrial and Economic Policies


       (4) Provide a comprehensive description of how the following plans, policies and
       measures address the steel industry, including the LWR industry. Include a
       description of all references to targets or guidance on production volumes, products,
       technology upgrades, domestic consumption of steel products, and access to
       financing or discounted or low-interest loans:


       ·      The Tenth Five-Year Plan
       ·      The Eleventh Five-Year Plan
       ·      Policies for Development of Iron and Steel Industry, Order No. 35 (2005)
       ·      The Decision of the State Council on Promulgating the “Interim Provisions on
              Promoting Industrial Structure Adjustment” as well as the Guidance
              Catalogue on Readjustment of Industrial Structure

       With respect to each of the above-mentioned plans, policies or measures,            please
provide the information requested below:

       (5) What government agencies are responsible for drafting the plan, policy or measure?

       (6) Describe the nature of the plan, policy or measure, when it was established, and the
       government’s policy behind the plan, policy or measure.

       (7) Provide a general description of how the goals and objectives of the plan, policy or
       measure are decided-upon and implemented.

       (8) Provide a general description, as well as any reports, relating to assessments of the
       plan, policy or measure, including whether, how and by whom implementation of the
       plan, policy or measure was evaluated or assessed.

       (9) Provide translated copies of central, provincial or municipal government laws and
       regulations relating to the plan, policy or measure as well as any published during or since
       the POI.
                                             4


     (10) Identify and explain the types of records maintained by the relevant government or
     governments (e.g., accounting records, company-specific files, databases, budget
     authorizations, etc.) regarding the drafting, administering, implementation or follow-up of
     the plan, policy or measure.

     (11) How are cash infusions, access to lending, and/or discounted loans provided to steel
     industry, including LWR producers, used to meet the goals and objectives of the plan,
     policy or measure?

     (12) How are the objectives of the central government’s plans, policy and measures
     implemented at the local level? What role do the local governments play in ensuring that
     the economic and industrial policy objectives of the central government are carried out?
     How does the central government communicate the goals and objectives to the local
     governments? Please include English translations of the laws, regulations, decrees or
     policy statements that guide local government’s responsibilities with regard to
     implementation of the central government’s economic and industrial policies.

     (13) Explain whether there are any other central or local government programs for the
     steel industry, including the LWR producers, to achieve the central, provincial or
     municipal governments’ development goals for the industry. If so, please provide a full
     description of these programs and translated copies of all relevant documents relating to
     these programs.

   Please have the local governments of the responding companies provide a response
     to the following questions:


     (14) What laws, regulations, decrees or policy statements were implemented to
     fulfill the goals of the central government measures listed below? Please provide
     translated copies of all relevant documents.


     ·      The Tenth Five-Year Plan
     ·      The Eleventh Five-Year Plan
     ·      Policies for Development of Iron and Steel Industry, Order No. 35 (2005)
     ·      The Decision of the State Council on Promulgating the “Interim Provisions on
            Promoting Industrial Structure Adjustment” as well as the Guidance
            Catalogue on Readjustment of Industrial Structure
                                       5

(15) Explain whether there are any other plans, policies, programs or measures
that are available to the steel industry, including LWR producers. If so, please
provide translated copies of all relevant documents.


(16) Provide any laws or regulations outlining the development of the economic
zone, region or areas (e.g., special economic zone) where the respondent is
located. If not stated in the law or regulations, please provide a list of economic
benefits bestowed onto companies in the zone, region or area.


B. Loans and Interest Subsidies Related to the Northeast Revitalization Program

Petitioners allege that the GOC provides loans through the Northeast Revitalization
Bank to revitalize industries in northeastern China. Additionally, the Dalian Branch
of the China Export-Import Bank allegedly provides export credits for companies in
the covered area.

Please provide the information requested in Appendix 1 with respect to loans from the
Northeast Revitalization Bank and export credits to companies located in the Northeast.
C. “Two Free, Three Half” Program

Petitioners allege that under Chinese law, a Foreign Invested Enterprise (“FIE”) that
is “productive” and is scheduled to operate for not less than ten years may be
exempted from income tax in the first two years of profitability and pay income
taxes at half the standard rate for the next three years.

Please provide the information requested in Appendix 1 with respect to tax relief under
the “Two Free, Three Half” program.


D. Income Tax Exemption for Export-oriented FIEs

Petitioners allege that, pursuant to Chinese tax law, following the conclusion of the
“Two Free, Three Half” program, an FIE may continue to pay income tax at half the
standard rate if its exports constitute 70 percent of the FIE’s sales.
                                        6

Please provide the information requested in Appendix 1 with respect to tax relief for
export-oriented FIEs.

E. Income Tax Refund for Reinvestment of FIE Profits in Export-oriented Enterprises

Petitioners allege that FIEs, or foreign investors in Chinese companies that re-invest
profits into the same FIE or use those profits to establish another FIE (or high-
technology company), are eligible for complete refunds of the corporate income tax
already paid on the invested amount, so long as the recipient is export oriented and
scheduled to operate for five years.

Please provide the information requested in Appendix 1 with respect to tax refunds for
export-oriented FIEs.

F. Local Income Tax Exemptions and Reductions for “Productive” FIEs

Petitioners allege that, pursuant to Chinese tax regulations, local provinces authorize
exemptions (or rate reductions) from the local income tax for “productive” FIEs,
within their jurisdiction.

Please have the local governments of the responding companies provide the
information requested in Appendix 1 with respect to local income tax relief for FIEs.

G. Reduced Income Tax Rates for FIEs Based on Location

Petitioners allege that FIEs located in special designated locations (e.g., new-
technology and high-technology zones, special economic zones, and economic and
technological development zones) pay income tax at reduced rates.


Please provide the information requested in Appendix 1 with respect to tax relief for FIEs
based on their location.

H. Reduced Income Tax Rate for Technology and Knowledge Intensive FIEs

Petitioners allege that FIEs that qualify as technology-intensive or
knowledge-intensive, and have major products listed in a catalogue issued by the
                                        7

Ministry of Science and Technology (“MOST”), pay a reduced income tax of 15
percent.


Please provide the information requested in Appendix 1 with respect to tax relief for
technology and knowledge intensive FIEs.


I. Reduced Income Tax Rate for High or New Technology FIEs


Petitioners allege that the GOC provides tax benefits to FIEs recognized as high or
new technology enterprises established in the State high or new technology
development zones, and for advanced technology enterprises invested in and
operated by foreign businesses. These benefits include: a reduced income tax rate
of 15% and additional tax preferences administered by the governments of the
development zones.


Please provide the information requested in Appendix 1 with respect to tax relief for high
or new technology FIEs.

Please have the governments of the development zones in which responding
companies are located provide the information requested in Appendix 1 with respect
to additional tax preferences available in the development zones.


J. Preferential Income Tax Policy for Research and Development by FIEs

Petitioners allege that when research and development expenses of FIEs increase
10 percent or more from the previous year, an offset in the amount of 150 percent
the expenses may be taken against taxable income.


Please provide the information requested in Appendix 1 with respect to preferential tax
treatment of R&D expenditures by FIEs.

K. Income Tax Credits on Purchases of Domestically Produced Equipment by FIEs

The GOC offers preferential income tax policies to FIEs that upgrade their
manufacturing operations with Chinese-made equipment. FIEs that upgrade
                                        8

technology consistent with GOC industrial policies may deduct 40 percent of the
cost of equipment from their next year’s income tax obligation.

Please provide the information requested in Appendix 1 with respect to tax relief for FIEs
purchasing domestically produced equipment.

L. Income Tax Credits on Purchases of Domestically Produced Equipment by Domestic
Enterprises

Petitioners allege that the GOC offers preferential income tax policies to domestic
enterprises that upgrade their manufacturing operations with Chinese-made
equipment. Domestic enterprises that upgrade technology consistent with GOC
industrial policies may deduct 40 percent of the cost of equipment from their next
year’s income tax obligation.

Please provide the information requested in Appendix 1 with respect to tax relief for
domestically owned companies purchasing domestically produced equipment.

M. Excessive Value Added Tax (“VAT”) Remissions Upon Exportation

Petitioners state that LWR producers receive a refund or rebate of the VAT paid on the
price of inputs, and that the amount is in excess of the indirect tax levied on the
production and distribution of the same product sold in the domestic market.

(1) Please provide the information requested in Appendix 1 with respect to VAT rebates
given on exports of the subject merchandise.

(2) What was the level of VAT rebate for subject merchandise during the POI?

(3) What was the VAT rate for inputs used to produce subject merchandise during the
POI?

(4) Provide a sample calculation showing how the amount of the VAT rebate for an
individual company is calculated.

N. VAT and Tariff Exemptions on Imported Equipment

Petitioners allege that FIEs and certain domestic enterprises in encouraged industries
are exempted from paying the VAT and tariffs on imported equipment as a result of
the State Councils’s Circular on Adjusting Tax Policies on Imported Equipment
(Guofa No. 37).
                                        9


Please provide the information requested in Appendix 1 with respect to VAT and tariff
exemptions on imported equipment.

O. VAT Rebates on Domestically Produced Equipment

Petitioners allege that the GOC refunds the VAT paid by FIEs on purchases of
certain domestically-produced equipment, pursuant to the Circular of the State
Administration of Taxation Concerning Transmitting the Interim Measure for the
Administration of Tax Refund to Enterprises with Foreign Investment for the
Domestic Equipment Purchases.


Please provide the information requested in Appendix 1 with respect to VAT rebates for
FIEs on their purchases of domestically produced equipment.


P. Exemption from Payment of Staff and Worker Benefits for Export-oriented Enterprises

Petitioners allege that FIEs and technology advanced enterprises are exempt from the
payment of staff and worker benefit taxes if the products of the FIE/advanced enterprise
are mainly for export.

Please provide the information requested in Appendix 1 with respect to the exemption
from paying staff and worker benefits for FIEs and technology advanced enterprises.

Q. The State Key Technologies Renovation Project Fund

Petitioners allege that companies receive payments in the form of “project
investment facility” grants covering two years’ worth of interest payments on loans
to fund improvement projects or up to three years’ worth of interest payments for
enterprise located in the northeast, central, or western areas of the country. The
purpose of this subsidy program is to promote technological renovations and
improvements in key industries.


Please provide the information requested in Appendices 1 and 2 with respect to
State Key Technologies Renovation Project grants. For Appendix 2, please provide
information on grants received by responding companies from 1992 through 2006.
                                        10

R. Grants to Loss-making State Owned Enterprises

Petitioners allege that the GOC maintains two programs to subsidize loss-making
state owned enterprises (“SOEs”); one at the national level and one at the local
level. Subsidy benefits under both programs include grants and tax benefits to help
maintain employment.

Please provide the information requested in Appendices 1 and 2 with respect to
grants to loss-making state owned enterprises. For Appendix 2, please provide
information on grants received by responding companies from 1992 through 2006.

Please provide the information requested in Appendix 1 for tax benefits provided to loss-
making SOEs.

Please have the local governments of the responding companies provide the
information requested in Appendices 1 and 2 with respect to grants those
governments made to loss-making state owned enterprises, also for the period 1992
- 2006. They should also provide the information requested in Appendix 1 for tax
benefits provided to loss-making SOEs.

S. Provision of Hot-rolled Steel for Less Than Adequate Remuneration

Petitioners allege that Chinese pipe and tube producers receive hot-rolled steel (which is
the main input for LWR) from Chinese steel producers at subsidized prices. Low hot-
rolled prices to Chinese LWR producers are possible through GOC support of Chinese
steel producers at both the national and local levels and by control of the steel industry
through its SOEs .

(1) Describe the hot-rolled steel industry in the PRC. Please include in your response the
number of producers of hot-rolled steel, and the nature of their relationship to the
government, i.e., are they owned by the government, are their prices for hot-rolled steel
set through regulation?

(2) List the industries in the PRC that purchase hot-rolled steel.

(3) What percentage of total domestic consumption of hot-rolled steel is supplied by
state-owned steel producers? Are the domestic suppliers of the responding companies
state-owned steel producers?
                                         11

(4) Are there any restrictions on the importation of hot-rolled steel into the PRC? If yes,
please describe the restrictions. Provide the volume and f.o.b. value of imports, by
country, during the POI.

T. Provision of Electricity and Natural Gas for Less Than Adequate Remuneration

Petitioners allege that the GOC controls and sets prices for electricity and natural
gas, and that it provides subsidies on energy inputs to “special industry sectors.”
Under this program, certain steel companies receive a category of electricity prices
reserved for “encouraged” companies.


For Electricity:


(1) Describe the electricity suppliers in the PRC. Please include in your response the
nature of their relationship to the government, i.e., are they owned by the government, are
their prices for electricity set through regulation?

(2) Provide the rate schedule followed by the enterprises supplying electricity to the
responding companies. How are these rates set? Please include in your response the
considerations that go into determining the different rates for the different categories of
users.

(3) Identify any “special industry sectors” or “encouraged” companies that receive
preferential electricity rates.

For Natural Gas:

(4) Describe the natural gas suppliers in the PRC. Please include in your response the
nature of their relationship to the government, i.e., are they owned by the government, are
their prices for natural gas set through regulation?

(5) Provide the rate schedule followed by the enterprises supplying natural gas to the
responding companies. How are these rates set? Please include in your response the
considerations that go into determining the different rates for the different categories of
users.

(6) Identify any “special industry sectors” or “encouraged” companies that receive
preferential natural gas rates.


U. Provision of Water for Less Than Adequate Remuneration
                                         12

Petitioners allege that the GOC has promoted expansion of the steel industry
through the provision of unlimited water supply and differential water rates.


(1) Describe the water suppliers in the PRC. Please include in your response the nature
of their relationship to the government, i.e., are they owned by the government, are their
prices for water set through regulation?

(2) Provide the rate schedule followed by the enterprises supplying water to the
responding companies. How are these rates set? Please include in your response the
considerations that go into determining the different rates for the different categories of
users.

(3) Identify any “special industry sectors” or “encouraged” companies that receive
preferential water rates.

(4) Describe any limitations or restrictions on access to water by industrial users. Do
these limitations or restrictions apply to the responding companies?


V. Provision of Land for Less Than Adequate Remuneration


Petitioners allege that the GOC provides Chinese steel companies, including LWR
producers and their cross-owned steel suppliers, with land grants and/or reduced
land costs.


(1) Describe how industrial producers obtain land for their factories. Please include in
your response a discussion of land ownership by industrial producers, whether land is
typically owned or rented by industrial producers and, generally, how land prices/rents are
established.

(2) Identify any “special industry sectors” or “encouraged” companies that pay
preferential prices/rent for their land.

W. Government Export Restraints - Zinc

Petitioners allege that the GOC restrains exports of zinc, a critical input for steel pipe and
tube, by means of an export tax. According to the petitioners, this restraint artificially
suppresses the price a zinc producer in China can charge for its product.

(1) Provide copies of the legislation, regulation, or administrative decision imposing an
export tax on zinc.
                                             13


      (2) Describe the purpose of the export tax.

      (3) Provide the domestic prices for zinc for calendar year 2007 (up to the most recent
      month the data are available).

      V. Government Export Restraint - Hot-rolled Steel

      Petitioners allege that the GOC restrains exports of hot-rolled steel, the major input
      for steel pipe and tube, by means of an export tax. According to the petitioners,
      this restraint artificially suppresses the price a steel producer in China can charge
      for its product.


      (1) Provide copies of the legislation, regulation, or administrative decision imposing
      an export tax on hot-rolled steel.


      (2) Describe the purpose of the export tax.


      (3) Provide the domestic prices for hot-rolled steel for calendar year 2007 (up to
      the most recent month the data are available).

Provincial/Local Government Programs

      AA. Program to Rebate Antidumping Legal Fees in Zhejiang Province

      Petitioners allege that the Shenzhen World Trade Organization Office has a fund of
      more than RMB 10 million to reimburse up to 30 percent of legal fees to local
      companies facing antidumping investigations abroad. Petitioners claim that a similar
      program exists in Zhejiang Province, where the local government's Fair Trade
      Department provides professional advice and set up a fund for fighting antidumping
      duties.


      Please have the government in Zhejiang Province provide the information requested
      in Appendices 1 and 2 with respect to payments to rebate antidumping legal fees.
                                              14

       For Appendix 2, please provide information on payments made to responding
       companies in 2006.

       BB. Export Interest Subsidy Funds for Enterprises Located in Zhejiang Province

       Petitioners allege that small- and medium-sized enterprises with export volumes of
       less than US$ 15 million are eligible for interest subsidies in the amount of US$
       0.03 for every US$ 1.00 of exports of general merchandise produced in Shenzhen
       Province. Petitioners note that there are reports of a similar program in Zhejiang
       Province.


       Please have the government Zhejiang Province provide the information requested in
       Appendices 1 and 2 with respect to export interest subsidy funds. For Appendix 2,
       please provide information on payments made to responding companies in 2006.



       CC. Loans Pursuant to Liaoning Provinces’s Five-year Framework

       Petitioners allege that Liaoning Province’s 10th Five-Year Industrial Economic
       Development and Structure Adjustment Framework (“the Framework”) lists several
       types of pipe as key products to be developed with government assistance. This
       assistance includes loan interest subsidy earmarks by the Liaoning Province
       Financial Bureau, discounted loans to non-state owned enterprises as directed by
       the Liaoning provincial government, and loan interest subsidies for enterprises in
       certain industries and in coastal industrial parks.


       Please have the Government of Liaoning Province respond to the following
questions:


       (1) Provide a comprehensive description of how the 10th Five-Year Industrial Economic
       Development and Structure Adjustment Framework (“the Framework”) addresses the steel
       industry, including the LWR industry. Include a description of all references to
                                      15

targets or guidance on production volumes, products, technology upgrades, domestic
consumption of steel products, and access to financing or discounted or low-interest
loans:


(2) What government agencies are responsible for drafting the Framework?


(3) Describe the nature of the Framework, when it was established, and the
government’s policy behind the program.


(4) Provide a general description of how the goals and objectives of the Framework
are decided-upon and implemented.


(5) Provide a general description, as well as any reports, relating to assessments
of the Framework, including whether, how and by whom implementation of the
Framework was evaluated or assessed.


(6) Provide translated copies of provincial or municipal government laws and
regulations relating to the Framework, as well as any published during or since the
POI.


(7) Identify and explain the types of records maintained by the relevant
government or governments (e.g., accounting records, company-specific files,
databases, budget authorizations, etc.) regarding the drafting, administering,
implementation or follow-up of the Framework.


(8) How are cash infusions, access to lending, and/or discounted loans provided
to steel industry, including LWR producers, used to meet the goals and objectives
of the plan, policy or measure?
Other Subsidies

      Does the GOC (or entities owned directly, in whole or in part, by the GOC or any
      provincial or local government) provide, directly or indirectly, any other forms of
      assistance to producers or exporters of LWR? If so, please describe such assistance in
      detail, including the amounts, date of receipt, purpose and terms.
                                         SECTION II
                                         Appendix 1

                                     Standard Questions

A.   Provide a brief description of the program to include the purpose of the program and the
     date it was established.

B.   Provide the name and address of the government agencies or authorities responsible for
     administering the program. Please be specific in identifying the level of government for
     approving assistance and for administering the distribution of assistance.

C.   Provide translated copies of the laws and regulations relating to the program and any
     reports pertaining to the program published during or since the POI.

D.   Identify and explain the types of records maintained by the relevant government or
     governments (e.g., accounting records, company-specific files, databases, budget
     authorizations, etc.) regarding the program.

E.   Describe the application process for assistance under the program and provide a blank
     copy of the application form (translated, if necessary). After an application is submitted,
     please describe the procedures by which an application is analyzed and eventually
     approved or rejected.

F.   Please answer the following questions regarding eligibility for and actual use of the
     benefits provided under this program.

     1.     Is eligibility for, or actual use of this program contingent, whether solely or as one
            of several other conditions, upon export performance? If so, please describe. If
            eligibility for, or actual use of, this program is contingent upon export
            performance, you need not respond to the remaining questions.

     2.     Is eligibility for this program contingent, whether solely or as one of several other
            conditions, upon the use of domestic over imported goods? If so, please describe.
             If eligibility for this program is contingent upon the use of domestic over
            imported goods you need not respond to the remaining questions.

     3.     Is eligibility for the subsidy limited to enterprises or industries located within
            designated regions? If so, you need not respond to the remaining questions.

     4.     Is eligibility limited, by law or in fact, to any enterprise or group of enterprises, or
            to any industry or group of industries? If so, please describe and specify the
            eligible enterprises or industries. If eligibility is limited, by law or in fact, to any
            enterprise or group of enterprises, or to any industry or group of industries, you
            need not respond to the remaining questions.

     5.     Describe the criteria governing the eligibility for and receipt of any benefit under
                                                           this program. Please also describe
                                                           the criteria governing the size of the
                                                           benefit provided. Provide a copy of
                                                           any law, regulation or other official
                                                           document detailing these criteria. If
                                                           the eligibility criteria as listed in the
                                                           applicable law, regulation or other
                                                           official documents are met, will the
                                                           applicant always receive a benefit or
                                                           is final approval contingent upon the
                                                           government agency or authority
                                                           which administers the program? Is
                                                           the amount of the benefit provided
                                                           exclusively determined by
                                                           established criteria found in the law,
                                                           regulation or other official document
                                                           or is the benefit amount determined
                                                           by the government agency or
                                                           authority which administers the
                                                           program?

     6.     Please provide a list by industry and by region of the number of companies which
            have received benefits under this program in the year the provision of benefits was
            approved and each of the preceding three years. Provide the total amounts of
            benefits received by each type of industry in each region in the year the provision
            of benefits was approved and each of the preceding three years.

     7.     How many companies have applied for benefits under this program in the year the
            financial assistance or benefit was approved and each of the preceding three
            years? How many applicants have received financial assistance/benefit and how
            many applicants have been rejected in the year the financial assistance/benefit was
            approved and each of the preceding three years? Please explain why applicants
            have been rejected.

G.   Describe any anticipated changes in the program. Provide documentation substantiating
     your answer. If the program is being terminated, state the last date that a company could
     apply for or claim benefits under the program. When is the last date that a company
     could receive benefits under the program?
H.   Please indicate which of the responding companies applied for, accrued, or received
     benefits under the program during the POI. For income tax programs, please indicate
     which producers/exporters of subject merchandise to this investigation qualified for,
     claimed, or received assistance under the program on the tax return filed during the POI.
                                           SECTION II
                                           Appendix 2

                                         Grant Information


Please provide the following information in chart form for each producer and/or exporter of the
subject merchandise.

A.     The amount of the grant authorized by the government.

B.     The date of government authorization/approval.

C.      The amount actually disbursed.

D.     The date(s) the grant was disbursed. Please indicate whether the grant was paid in a lump
       sum or in multiple disbursements.
                                         SECTION II
                                          Appendix 3


                                     Certificate of Service



I, _______________________, hereby certify that a copy of the
   (name of certifying official)

foregoing submission on behalf of ____________________________,
                                          (company name)

dated _________________, was served by first class mail or by hand delivery (circle the method
used) on the following parties:


(Business Proprietary Version)

On Behalf of

Name and address


(Public Version)

On Behalf of

Name and address


                          __________________________________
                              (signature of certifying official)
                                         SECTION II
                                         Appendix 4

                               Government Official Certification




I, ____________________________________, currently employed
             (name and title)

by _____________________________________, certify that (1) I have
       (Interested Party)

read the attached submission, and (2) the information contained

in this submission is, to the best of my knowledge, complete and

accurate.

                           __________________________________
                               (signature of certifying official)
                                                2


                                         SECTION III

                  QUESTIONNAIRE FOR PRODUCERS/EXPORTERS OF
                   LWR FROM THE PEOPLE’S REPUBLIC OF CHINA

This questionnaire requests information about programs alleged to be provided to producers/
exporters in the PRC of light-walled rectangular pipe and tube (“LWR” or “the subject
merchandise”). Section 775 of the Act also requires the Department to investigate any other
programs discovered during the course of this investigation that potentially confer
countervailable subsidies on the manufacture, production, or exportation of LWR.

You will be instructed by your government as to which time period, or POI, is covered by this
investigation.

AFFILIATED COMPANIES

In accordance with section 771(33) of the Act, affiliated companies include: (1) members of the
same family, (2) any officer or director of an organization and such organization, (3) partners, (4)
employers and their employees, and (5) any person or organization directly or indirectly owning,
controlling, or holding with power to vote, 5 percent or more of the outstanding voting stock or
shares of any organization and such organization. In addition, affiliates include (6) any person
who controls any other person and that person, or (7) any two persons who directly control, are
controlled by, or are under common control with, any person. “Control” exists where one person
is legally or operationally in a position to exercise restraint or direction over the other person.

A.     Please identify all companies with which your company is affiliated according to the
       above criteria. Provide the full name and mailing address of each company.

B.     Please describe in detail the nature of the relationship between your company and those
       companies listed in response to question A, above. Specify, for example, whether the
       companies share a board of directors, or whether members of each company’s board sit
       on the board(s) of the other company(ies), and how the voting rights are distributed
       among board members; specify if, and how, officers of one company are directly involved
       in overseeing the operations of another company. Specify whether an affiliated company
       supplies inputs into your company’s production process.

Affiliated companies may be required to respond to this questionnaire where “cross-ownership”
exists. According to 19 CFR 351.525(6)(vi), cross-ownership exists between two or more
corporations where one corporation can use or direct the individual assets of the other
corporation(s) in essentially the same ways it can use its own assets. Normally, this standard will
be met where there is a majority voting ownership interest between two corporations or through
common ownership of two (or more) corporations.

C.     You must provide a complete questionnaire response for those affiliates where “cross-
       ownership” exists and:
                                              3

     1.     the affiliate produces the subject merchandise; or

     2.     the affiliate is a holding company or a parent company (with its own operations)
            of your company; or

     3.     the affiliate supplies an input product to you that is primarily dedicated to the
            production of the subject merchandise, or

     4.     the affiliate has received a subsidy and transferred it to your company.

     If you have any questions regarding whether another company is affiliated with your
     company or whether cross-ownership exists, we urge you to consult with the official in
     charge named on the cover page as soon as possible.

I.   GENERAL QUESTIONS

A.   For each entity that is involved in the manufacture, production or exportation of LWR,
     please provide the following information:

     1.     The addresses of your company’s headquarters and manufacturing/export
            facilities.

     2.     A description of how your company. Please include in your response: the date
            your company was formed, a history of your company’s ownership, whether your
            company is a “productive” FIE or SOE and the products your company produces.

     3.     Using diagrams and/or flow charts, describe the process by which your company
            produces the subject merchandise. If different steps of the production process
            occur in different production units, divisions, or affiliated companies, please
            identify those production units, divisions, or affiliated companies.

     4.     Using diagrams and/or flow charts, describe the process by which your company
            markets and distributes the subject merchandise in the PRC. If sales are made
            through different divisions or affiliated companies, please identify those divisions
            or companies.

     5.     Does your company (including affiliates) export LWR produced by other
            companies in the PRC? If so, please identify the suppliers.

     6.     Please provide your company’s complete audited financial statements from the
            last three fiscal years. (Please provide the financial statements in English, if
            available. If they are not available in English, provide translations of the Income
            Statement, the Balance Sheet, and all notes thereto, plus the auditor’s opinion.)
            These should be the official financial statements filed with your government. If
            there is no such filing requirement, the financial statements should be those
            presented to the banks or other independent third parties. The financial statements
                                             4

            should include the complete set of statements, e.g., income statement, balance
            sheet, cash flow statement, statement of change in equity, footnotes, and must be
            accompanied by the auditors’ opinion.

     7.     Provide the HTSUS subheadings or the PRC tariff schedule numbers under which
            you export the subject merchandise.

B.   Please provide the following information for your company for the POI and the preceding
     two calendar or fiscal years (depending on how the POI has been classified). Do not
     include the volume and value of merchandise produced outside the PRC or returned
     merchandise. Separately report the value of services sold by your company, if any.

     1.     Total Sales

            What was the quantity and f.o.b. value of total sales (both subject and non-subject
            merchandise) to all markets (domestic and foreign)? Please report the sales value
            on an f.o.b. (port) basis with respect to export sales and/or on an f.o.b. (factory)
            basis for domestic sales. If the actual value recorded in your accounting records is
            booked on a basis other than f.o.b., please describe any adjustments that were
            made to derive the f.o.b. value.

     2.     Sales of Subject Merchandise

            What was the quantity and f.o.b. value of the subject merchandise sold to all
            markets (domestic and foreign)? Please report the sales value on an f.o.b. (port)
            basis with respect to export sales and/or on an f.o.b. (factory) basis for domestic
            sales. If the actual value recorded in your accounting records is booked on a basis
            other than f.o.b., please describe any adjustments that were made to derive the
            f.o.b. value.

     3.     Total Exports

            What was the total quantity and f.o.b. (port) value of export sales (both subject
            and non-subject merchandise) to all markets? If the actual value recorded in your
            accounting records is booked on a basis other than f.o.b., please describe any
            adjustments that were made to derive the f.o.b. value.

     4.     Total Exports to the United States

            What was the total quantity and f.o.b.. (port) value of export sales (both subject
            and non-subject merchandise) to the United States? If the actual value recorded in
            your accounting records is booked on a basis other than f.o.b., please describe any
            adjustments that were made to derive the f.o.b. value.
                                                     5

     5.         Exports of Subject Merchandise

                What was the total quantity and f.o.b. (port) value of the subject merchandise
                exported to all markets (including the United States)? If the actual value recorded
                in your accounting records is booked on a basis other than f.o.b., please describe
                any adjustments that were made to derive the f.o.b. value.

     6.         Exports to the United States of Subject Merchandise

                What was the total quantity and f.o.b. (port) value of the subject merchandise
                                                      exported to the United States? If the actual
                                                      value recorded in your accounting records is
                                                      booked on a basis other than f.o.b., please
                                                      describe any adjustments that were made to
                                                      derive the f.o.b. value.

     7.         Please explain how the sales of LWR are recorded in your company’s financial
                records. Are your company’s sales consolidated with those of other companies in
                the financial report of a parent, holding company, or group of companies? If so,
                please explain how.

C.   As established in 19 CFR 351.524(d)(2), the allocation period for non-recurring1
     subsidies is defined by the AUL of renewable physical assets for the industry concerned,
     as listed in the U.S. Internal Revenue Service’s Depreciation Range System (“IRS
     tables”). The AUL listed in the IRS tables that would apply to the LWR industry is
     fifteen (15) years.

     Parties may rebut the presumption to use the IRS tables by demonstrating either that the
     company-specific AUL or country-wide AUL for the industry in the respondent country
     differs by one year or more from the AUL in the IRS tables for the industry under review.
      Unless the parties establish that the IRS tables do not reasonably reflect the AUL of a
     firm’s assets, however, the Department will rely on the IRS tables to define the
     appropriate AUL.

     If your company chooses to rebut the presumption to use the IRS tables, please perform
     the calculations described in 19 CFR 351.524(d)(2)(iii) using information from the years
     1992 through 2006. Explain your company’s accounting policies concerning depreciation
     of productive assets. State whether straight-line or accelerated depreciation is used, and
     what conventions are applied. If you do not want to rebut the use of the AUL in the IRS
     tables, you do not need to answer this question.



     1
         For definitions of recurring and non-recurring benefits, see 19 CFR 351.524(c).
                                               6

PART II -- PROGRAM-SPECIFIC QUESTIONS

For each program, if your company (including affiliates) did not apply for, use, or benefit from
that program during the POI, you must clearly state so. Otherwise, please answer the questions
listed. To determine the information which must be reported under each program, please see the
instructions for each program in this section of the questionnaire and in the referenced
appendices.

If any government assistance, as enumerated below, was received by companies which have since
been merged with or purchased by your company, you are responsible for answering the
questions with respect to such assistance to the merged or purchased company.

Government of the People’s Republic of China Programs

       A. Government Policy Lending:


       Petitioners allege that the GOC has a long-standing policy to develop and grow
       China’s steel industry, including producers of LWR, as set out, inter alia, in the
       policies named below. In pursuit of these goals, the GOC allegedly provided
       discounted and/or low cost loans, or interest subsidies through policy banks and
       state-owned commercial banks.


       Designations


       The GOC allegedly considers or has considered the steel industry, and specifically,
       the LWR industry, a “pillar” and “encouraged” industry. Further, provincial
       governments have allegedly designated certain LWR producers as “key,”
       “backbone,” “famous,” “priority” and/or “Province Special Grade Credit Venture”
       enterprises.


       (1) Has your company received any of these designations?


       (2) Explain the purpose of these designations, the criteria for receiving any such
       designation and the benefits or obligations that arise from each such designation.
                                       7



(3) Is there any connection between this designation and five-year plans or other
industrial and/or economic policies or administrative measures?


Five-Year Plans and Industrial and Economic Policies


·      The Tenth Five-Year Plan
·      The Eleventh Five-Year Plan
·      Policies for Development of Iron and Steel Industry, Order No. 35 (2005)
·      The Decision of the State Council on Promulgating the “Interim Provisions on
       Promoting Industrial Structure Adjustment” as well as the Guidance
       Catalogue on Readjustment of Industrial Structure

(4) Does your company provide information for or request inclusion in any of the above-
named plans, policies, or measures?

(5) Does your company provide information relating to assessments of the
implementation of the plan, policy or measure?

(6) Report all loans to your company that were outstanding during the POI. These loans
should be submitted on IBM-PC compatible 3.5" DS/DD floppy disks or CDs, using the
LOTUS 1-2-3 or Microsoft Excel financial spreadsheet program compatible with the
Microsoft Disk Operating System (MS-DOS) software. A template showing the required
information is provided at Appendix 3. Two sets of spreadsheet files on separate
diskettes or CDs will be needed.

B. Loans and Interest Subsidies Related to the Northeast Revitalization Program

Petitioners allege that the GOC provides loans through the Northeast Revitalization
Bank to revitalize industries in northeastern China. Additionally, the Dalian Branch
of the China Export-Import Bank allegedly provides export credits for companies in
the covered area.

Please provide the information requested in Appendix 1 with respect to outstanding loans
from the Northeast Revitalization Bank and/or export credits from the Dalian Branch of
the China Import/Export Bank.
                                       8


C. “Two Free, Three Half” Program

Petitioners allege that under Chinese law, a Foreign Invested Enterprise (“FIE”) that
is “productive” and is scheduled to operate for not less than ten years may be
exempted from income tax in the first two years of profitability and pay income
taxes at half the standard rate for the next three years.

Please provide the income tax form your company filed in 2006 (including the annexes to
the form). If your company received tax relief under the “Two Free, Three Half”
program, specify the amount of the tax savings and identify where on the form your
company claimed the benefit.

D. Income Tax Exemption for Export-oriented FIEs

Petitioners allege that, pursuant to Chinese tax law, following the conclusion of the
“Two Free, Three Half” program, an FIE may continue to pay income tax at half the
standard rate if its exports constitute 70 percent of the FIE’s sales.

Please provide the income tax form your company filed in 2006 (including the annexes to
the form). If your company received an exemption as an export-oriented company,
specify the amount of the tax savings and identify where on the form your company
claimed the benefit.

E. Income Tax Refund for Reinvestment of FIE Profits in Export-oriented Enterprises

Petitioners allege that FIEs, or foreign investors in Chinese companies that re-invest
profits into the same FIE or use those profits to establish another FIE (or high-
technology company), are eligible for complete refunds of the corporate income tax
already paid on the invested amount, so long as the recipient is export oriented and
scheduled to operate for five years.

Please provide the information requested in Appendix 1 with respect to tax refunds for
export-oriented FIEs. If your company received such a refund in 2006, please report the
amount.

F. Local Income Tax Exemptions and Reductions for “Productive” FIEs
                                       9

Petitioners allege that, pursuant to Chinese tax regulations, local provinces authorize
exemptions (or rate reductions) from the local income tax for “productive” FIEs
within their jurisdiction.

Please provide the income tax form your company filed in 2006 (including the annexes to
the form). If your company received an exemption from or paid a reduced local income
tax, specify the amount of the tax savings and identify where on the form your company
claimed the benefit.

G. Reduced Income Tax Rates for FIEs Based on Location

Petitioners allege that FIEs located in special designated locations (e.g., new-
technology and high-technology zones, special economic zones, and economic and
technological development zones) pay income tax at reduced rates.


Please provide the income tax form your company filed in 2006 (including the annexes to
the form). If your company received an exemption from or paid a reduced rate of income
tax due to your company’s location, specify the amount of the tax savings and identify
where on the form your company claimed the benefit.

H. Reduced Income Tax Rate for Technology and Knowledge Intensive FIEs

Petitioners allege that FIEs that qualify as technology-intensive or
knowledge-intensive, and have major products listed in a catalogue issued by the
Ministry of Science and Technology (“MOST”), pay a reduced income tax of 15
percent.


Please provide the income tax form your company filed in 2006 (including the annexes to
the form). If your company paid a reduced rate of income tax as a technology or
knowledge intensive FIE, specify the amount of the tax savings and identify where on the
form your company claimed the benefit.


I. Reduced Income Tax Rate for High or New Technology FIEs


Petitioners allege that the GOC provides tax benefits to FIEs recognized as high or
new technology enterprises established in the State high or new technology
                                       10

development zones, and for advanced technology enterprises invested in and
operated by foreign businesses. These benefits include: a reduced income tax rate
of 15% and additional tax preferences administered by the governments of the
development zones.


Please provide the income tax form your company filed in 2006 (including the annexes to
                      the form). If your company paid a reduced rate of income tax
                      because it is located in a high or new technology zone or because
                      you company is an advanced technology FIE, specify the amount of
                      the tax savings and identify where on the form your company
                      claimed the benefit.

Please identify any additional tax preferences your company received because it is located
in a high or new technology zone.

J. Preferential Income Tax Policy for Research and Development by FIEs

Petitioners allege that when research and development expenses of FIEs increase
10 percent or more from the previous year, an offset in the amount of 150 percent
the expenses may be taken against taxable income.


Please provide the income tax form your company filed in 2006 (including the annexes to
                                    the form). If your company is an FIE and claimed
                                    an offset or increased deduction for R&D expenses,
                                    specify the amount of the tax savings and identify
                                    where on the form your company claimed the
                                    benefit.

K. Income Tax Credits on Purchases of Domestically Produced Equipment by FIEs

The GOC offers preferential income tax policies to FIEs that upgrade their
manufacturing operations with Chinese-made equipment. FIEs that upgrade
technology consistent with GOC industrial policies may deduct 40 percent of the
cost of equipment from their next year’s income tax obligation.

Please provide the income tax form your company filed in 2006 (including the annexes to
the form). If your company is an FIE and claimed an offset or increased deduction for its
                                      11

purchases of domestically produced equipment, specify the amount of the tax savings and
identify where on the form your company claimed the benefit.
                                      12

L. Income Tax Credits on Purchases of Domestically Produced Equipment by Domestic
Enterprises

Petitioners allege that the GOC offers preferential income tax policies to domestic
enterprises that upgrade their manufacturing operations with Chinese-made
equipment. Domestic enterprises that upgrade technology consistent with GOC
industrial policies may deduct 40 percent of the cost of equipment from their next
year’s income tax obligation.

Please provide the income tax form your company filed in 2006 (including the annexes to
the form). If your company is a domestic enterprise and claimed an offset or increased
deduction for its purchases of domestically produced equipment, specify the amount of
the tax savings and identify where on the form your company claimed the benefit.

M. Excessive VAT Remissions Upon Exportation

Petitioners state that LWR producers receive a refund or rebate of the VAT paid on the
price of inputs, and that the amount is in excess of the indirect tax levied on the
production and distribution of the same product sold in the domestic market.

(1) Please provide the information requested in Appendix 1 with respect to VAT rebates
given on exports of the subject merchandise.

(2) Did your company pay VAT on its inputs (materials and equipment) during the POI?
 If your company did not pay VAT on some or all of its inputs, identify those inputs and
explain why the VAT was not paid.

(3) Was your company exempted from collecting or remitting VAT on its sales in the
domestic market? If so, explain why the VAT was not collected or paid.

(4) Provide a sample calculation showing how the VAT your company pays to the
government is determined.

(5) Provide a sample calculation showing how the VAT rebate your company receives on
its exports is calculated.

(6) What was the total VAT rebate received by you company on exports of subject
merchandise to the United States during the POI?

N. VAT and Tariff Exemptions on Imported Equipment
                                       13

Petitioners allege that FIEs and certain domestic enterprises in encouraged industries
are exempted from paying the VAT and tariffs on imported equipment as a result of
the State Councils’s Circular on Adjusting Tax Policies on Imported Equipment
(Guofa No. 37).


Please report the amount of VAT and tariff savings your company received in 2006.
Include in your response a brief description of the equipment your company imported
under this program.

O. VAT Rebates on Domestically Produced Equipment

Petitioners allege that the GOC refunds the VAT paid by FIEs on purchases of
certain domestically-produced equipment, pursuant to the Circular of the State
Administration of Taxation Concerning Transmitting the Interim Measure for the
Administration of Tax Refund to Enterprises with Foreign Investment for the
Domestic Equipment Purchases.


Please report the amount of VAT savings your company received in 2006. Include in
your response a brief description of the domestically produced equipment your company
purchased under this program.
P. Exemption from Payment of Staff and Worker Benefits for Export-oriented
Enterprises

Petitioners allege that FIE and technology advanced enterprises are exempt from the
payment of staff and worker benefit taxes if the products of the FIE/advanced enterprise
are mainly for export.

Please report the amount of savings your company received in 2006 as a result of the
exemption from payment of staff and worker benefits under this program.

Q. The State Key Technologies Renovation Project Fund

Petitioners allege that companies receive payments in the form of “project
investment facility” grants covering two years’ worth of interest payments on loans
to fund improvement projects or up to three years’ worth of interest payments for
enterprise located in the northeast, central, or western areas of the country. The
                                        14

purpose of this subsidy program is to promote technological renovations and
improvements in key industries.


Please provide the information requested in Appendices 1 and 2 with respect to
State Key Technologies Renovation Project grants. For Appendix 2, please provide
information on grants received by your company from 1992 through 2006.

R. Grants to Loss-making State Owned Enterprises

Petitioners allege that the GOC maintains two programs to subsidize loss-making
SOEs; one at the national level and one at the local level. Subsidy benefits under
both programs include grants and tax benefits to help maintain employment.

Please provide the information requested in Appendices 1 and 2 with respect to
grants to loss-making state owned enterprises. For Appendix 2, please provide
information on grants received by your company responding companies from 1992
through 2006.

Please describe any tax benefits your company received under this program.

S. Provision of Hot-rolled Steel for Less Than Adequate Remuneration

Petitioners allege that Chinese pipe and tube producers receive hot-rolled steel (which is
the main input for LWR) from Chinese steel producers at subsidized prices. Low hot-
rolled prices to Chinese LWR producers are possible through GOC support of Chinese
steel producers at both the national and local levels and by control of the steel industry
through its SOEs .

(1) Identify your company’s suppliers of hot-rolled steel during the POI.

(2) Report the monthly, weighted-average price your company paid for hot-rolled steel
during the POI.

T. Provision of Electricity and Natural Gas for Less Than Adequate Remuneration
Petitioners allege that the GOC controls and sets prices for electricity and natural
gas, and that it provides subsidies on energy inputs to “special industry sectors.”
Under this program, certain steel companies receive a category of electricity prices
reserved for “encouraged” companies.


For electricity:


(1) Identify your company’s suppliers of electricity during the POI.

(2) Report the rate your company paid for electricity, by month, during the POI.

(3) Does your company pay a reduced or preferential rate for electricity because it
produces LWR?

For Natural Gas:

(4) Identify your company’s suppliers of natural gas during the POI.

(5) Report the rate your company paid for natural gas, by month, during the POI.

(6) Does your company pay a reduced or preferential rate for natural gas because it
produces LWR?
                                       16

U. Provision of Water for Less Than Adequate Remuneration

Petitioners allege that the GOC has promoted expansion of the steel industry
through the provision of unlimited water supply and differential water rates.


(1) Identify your company’s suppliers of water during the POI.

(2) Report the rate your company paid for water, by month, during the POI.

(3) Does your company pay a reduced or preferential rate for water because it produces
LWR?

(4) Does your company receive preferential access to water because it produces LWR?


V. Provision of Land for Less Than Adequate Remuneration


Petitioners allege that the GOC provides Chinese steel companies, including tube
producers and their cross-owned steel suppliers, with land grants and/or reduced
land costs.


(1) How did your company obtain land for its factories? Please include in your response
a discussion of whether your company owns or rents its land.

(2) How much did your company pay to purchase its land, or if land is rented, from
whom is it rented and how much did your company pay in rent during the POI?.

(3) Please provide any information you have about price/rents for other properties in the
area of your factories.


W. Government Export Restraints - Zinc


Petitioners allege that the GOC restrains exports of zinc, a critical input for steel
pipe and tube, by means of an export tax. According to the petitioners, this
                                      17

restraint artificially suppresses the price a zinc producer in China can charge for its
product.


(1) Identify your company’s suppliers of zinc in 2007.


(2) Provide the prices for zinc purchased from domestic suppliers for calendar year
2007 (up to the most recent month the data are available).


(3) Did the imposition of the export tax on zinc in June 2007 affect the price your
company pays for zinc.
                                            18

      V. Government Export Restraint - Hot-rolled Steel

      Petitioners allege that the GOC restrains exports of hot-rolled steel, the major input
      for steel pipe and tube, by means of an export tax. According to the petitioners,
      this restraint artificially suppresses the price a steel producer in China can charge
      for its product.


      (1) Identify your company’s suppliers of hot-rolled steel in 2007.


      (2) Provide the prices for hot-rolled steel purchased from domestic suppliers for
      calendar year 2007 (up to the most recent month the data are available).


      (3) Did the imposition of the export tax on hot-rolled steel in June 2007 affect the
      price your company pays for hot-rolled steel.


Provincial/Local Government Programs

      AA. Program to Rebate Antidumping Legal Fees in Zhejiang Province

      Petitioners allege that the Shenzhen World Trade Organization Office has a fund of
      more than RMB 10 million to reimburse up to 30 percent of legal fees to local
      companies facing antidumping investigations abroad. Petitioners claim that a similar
      program exists in Zhejiang Province, where the local government's Fair Trade
      Department provides professional advice and set up a fund for fighting antidumping
      duties.


      Please provide the information requested in Appendices 1 and 2 with respect to
      payments your company received to rebate antidumping legal fees. For Appendix
      2, please provide information on payments made to responding companies in 2006.


      BB. Export Interest Subsidy Funds for Enterprises Located in Zhejiang Province
                                       19


Petitioners allege that small- and medium-sized enterprises with export volumes of
less than US$ 15 million are eligible for interest subsidies in the amount of US$
0.03 for every US$ 1.00 of exports of general merchandise produced in Shenzhen
Province. Petitioners note that there are reports of a similar program in Zhejiang
Province.


Please provide the information requested in Appendices 1 and 2 with respect to
export interest subsidy funds received by your company. For Appendix 2, please
provide information on payments made to responding companies in 2006.


CC. Loans Pursuant to Liaoning Provinces’s Five-year Framework

Petitioners allege that Liaoning Province’s 10th Five-Year Industrial Economic
Development and Structure Adjustment Framework (“the Framework”) lists several
types of pipe as key products to be developed with government assistance. This
assistance includes loan interest subsidy earmarks by the Liaoning Province
Financial Bureau, discounted loans to non-state owned enterprises as directed by
the Liaoning Provincial government, and loan interest subsidies for enterprises in
certain industries and in coastal industrial parks.


(1) Does your company provide information for or request inclusion in the Framework?

(2) Does your company provide information relating to assessments of the
implementation of the Framework?


(3) Please identify which of your company’s outstanding loans are provided
pursuant to the Framework. Or, if your company has received grants to cover
interest payments under this program, please report all payments received in
connection with loans outstanding during the POI.
Other Subsidies

      Does the GOC (or entities owned directly, in whole or in part, by the GOC or any
      provincial or local government) provide, directly or indirectly, any other forms of
      assistance to your company? If so, please describe such assistance in detail, including the
      amounts, date of receipt, purpose and terms.
                                       SECTION III
                                        Appendix 1

                                     Standard Questions

A.   Specify the eligibility criteria your company had to meet in order to receive benefits under
     this program. State whether eligibility was or is currently contingent on one or more of
     the following criteria: 1) whether or not your company exports or has increased its
     exports, 2) the use of domestic rather than imported inputs, 3) the industry to which your
     company belongs, or 4) the region in which your company is located.

B.   Describe in detail the application and approval process through which your company
     went to receive benefits through the program.

C.   Specify the criteria your company met to receive the particular amount of assistance
     provided.

D.   What records does your company keep regarding each of the benefits received under this
     program? Provide your company’s executed application forms and other application
     documents with respect to this program.

E.   Indicate where benefits under this program can be found in your accounting system (i.e.,
     specify the ledgers or journals) and financial statements.

F.   Please indicate which merchandise you produced benefitted from this program.

G.   Has the program been terminated? If so, please explain. When is the last date that your
     company could apply for or claim benefits under the program? When is the last date that
     your company could receive benefits under the program?
                                        SECTION III
                                         Appendix 2

                                      Grant Information


A.   the amount of all grants authorized and the amount received (state whether the grant was
     received in a lump sum or in multiple disbursements),and

B.   date of the approval of the grant and the date(s) it was received.

C.   total or export sales (depending on whether the program is a domestic or export subsidy)
     in the year in which the grant was received.
                                                                                            Section III
                                                                                            Appendix 3

                                                                      Outstanding Short/Long Term Loans during the POI

Sequence Name of Creditor Drawdown   Maturity   Interest   Fixed or          Purpose for Loan     Collateral Guarantor/s   Currency   Principal    Date of     Amount of     Date of      Amount of
Number                     Date       Date       Rate      Variable                                                        of Loan    Amount        Interst     Interest     Principal     Principal
                                                           Interest                                                                               Payment in   Payment     Repayment in Repaid in POI
                                                            Rate                                                                                   the POI                     POI
                                        SECTION III
                                         Appendix 4

                                     Certificate of Service




I, _______________________, hereby certify that a copy of the
   (name of certifying official)

foregoing submission on behalf of ____________________________,
                                          (company name)

dated _________________, was served by first class mail or by hand delivery (circle the method
used) on the following parties:


(Business Proprietary Version)

On Behalf of

Name and address


(Public Version)

On Behalf of

Name and address


                          __________________________________
                              (signature of certifying official)
                                        SECTION III
                                         Appendix 5

                                Company Official Certification




I, ____________________________________, currently employed
             (name and title)

by _____________________________________, certify that (1) I have
       (Interested Party)

read the attached submission, and (2) the information contained

in this submission is, to the best of my knowledge, complete and

accurate.

                           __________________________________
                               (signature of certifying official)

				
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