Certain Oil Country Tubular Goods From the Republic of Turkey: Final Affirmative Countervailing Duty Determination and Final Affirmative Critical Circumstances Determination, 41964-41966 [2014-16860]

Download as PDF 41964 Federal Register / Vol. 79, No. 138 / Friday, July 18, 2014 / Notices + + = + + + + + + U.S. Packing Profit Constructed Value U.S. Direct Selling Expense U.S. Indirect Selling Expense U.S. Commission Expense U.S. Movement Expense U.S. Credit Expense U.S. Further-Manufacturing Expenses (if any) + CEP Profit ¥ HM Direct Selling Expense ¥ HM Commission Expense [1] ¥ HM Credit Expense = NV for CEP Sales [1] If the company does not have HM commissions, HM indirect expenses are subtracted only up to the amount of the U.S. commissions. sroberts on DSK5SPTVN1PROD with NOTICES Appendix C: Special Adjustment for Interim Period Normal Values Unique events occurred in Ukraine in the first half of 2014, including the National Bank of Ukraine abandoning its de facto exchange rate peg and switching to a flexible exchange rate regime in February 2014. Due to this fundamental shift in the exchange rate regime, as well as to other unique circumstances occurring throughout the period, the Department and the signatory producer/exporter, Interpipe, agree that, for purposes of the calculation and issuance of Interpipe’s NVs for the Interim Period (see Section C(2) of the Agreement), a special adjustment is appropriate to address the disconnect between the costs that were reported before the events described above and the current exchange rate. In order to calculate the Interim Period NVs from the period of investigation (‘‘POI’’) costs and expenses reported in the underlying investigation, the Department intends to adjust Interpipe’s Ukrainian Hryvnia (‘‘UAH’’)-denominated costs and selling expenses to make them as contemporaneous as possible with the exchange rate that will be used to convert the UAH-denominated NVs to U.S. dollardenominated NVs upon issuance. The Department will apply to the POI costs and expenses an adjustment factor that accounts for the movement in the Producer Price Index (‘‘PPI’’) between the average for the POI and the latest month for which there is data reported in the International Monetary Fund’s International Financial Statistics. If a time gap exists between the latest month of PPI data available and the exchange rate to be used to convert the UAH-denominated NVs to U.S. dollar-denominated NVs, however, the Department may consider whether further adjustments are appropriate for this Interim Period. DEPARTMENT OF COMMERCE International Trade Administration [C–489–817] Certain Oil Country Tubular Goods From the Republic of Turkey: Final Affirmative Countervailing Duty Determination and Final Affirmative Critical Circumstances Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the Department) determines that countervailable subsidies are being provided to producers and exporters of certain oil country tubular goods (OCTG) from the Republic of Turkey (Turkey). For information on the estimated subsidy rates, see the ‘‘Suspension of Liquidation’’ section of this notice. DATES: Effective Date: July 18, 2014. FOR FURTHER INFORMATION CONTACT: Jennifer Meek or Shane Subler, AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482–2778, and (202) 482–0189, respectively. SUPPLEMENTARY INFORMATION: AGENCY: Background [FR Doc. 2014–16876 Filed 7–17–14; 8:45 am] The petitioners in this investigation are Maverick Tube Corporation; United States Steel Corporation; Boomerang Tube; Energex Tube, a division of JMC Steel Group; Northwest Pipe Company; Tejas Tubular Products; TMK IPSCO; Vallourec Star, L.P.; and Welded Tube USA Inc. In addition to the Government of the Republic of Turkey (GOT), the mandatory respondents in this investigation are: (1) Borusan Mannesmann Boru Sanayi ve Ticaret A.S., Borusan Istikbal Ticaret, Borusan Mannesmann Boru Yatirim Holding A.S., and Borusan Holding A.S. (collectively, Borusan); and (2) Toscelik ¸ Profil ve Sac Endustrisi A.S., Tosyali Dis Ticaret A.S., Tosyali Elektrik Enerjisi Toptan Satis Ith. Ihr. A.S., Tosyali Holding A.S., and Tosyali Demir Celik San. A.S. (collectively, Toscelik). The period of investigation (POI) for which we are measuring subsidies is January 1, 2012, through December 31, 2012. BILLING CODE 3510–DS–P Case History The events that occurred since the Department published the Preliminary VerDate Mar<15>2010 23:20 Jul 17, 2014 Jkt 232001 PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 Determination 1 on December 23, 2013, and the Preliminary Determination of Critical Circumstances 2 on January 27, 2014, are discussed in the Issues and Decision Memorandum.3 The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (IA ACCESS). IA ACCESS is available to registered users at https:// iaaccess.trade.gov, and is available to all parties in the Central Records Unit, room 7046 of the main Department of Commerce building. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at https://enforcement.trade.gov/ frn/. The signed Issues and Decision Memorandum and the electronic versions of the Issues and Decision Memorandum are identical in content. Scope Comments In accordance with the preamble to the Department’s regulations,4 in the Initiation Notice,5 we set aside a period of time for parties to raise issues regarding product coverage. We encouraged all parties to submit comments within 20 calendar days of publication of the Initiation Notice. As described at pages 3–4 of the decision memorandum accompanying the Preliminary Determination, on August 12, 2013, WSP Pipe Co., Ltd. (WSP) (the sole mandatory respondent in the concurrent antidumping duty investigation involving OCTG from Thailand) submitted scope comments to the Department regarding ‘‘pierced billets.’’ WSP asked the Department to determine that such merchandise was 1 See Certain Oil Country Tubular Goods From the Republic of Turkey: Preliminary Negative Countervailing Duty Determination and Alignment of Final Determination with Final Antidumping Determination, 78 FR 77420 (December 23, 2013) (Preliminary Determination). 2 See Certain Oil Country Tubular Goods from India and Turkey: Preliminary Determination of Critical Circumstances in the Countervailing Duty Investigations, 79 FR 4333 (January 27, 2014) (Preliminary Determination of Critical Circumstances). 3 See Memorandum from Christian Marsh, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, to Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and Compliance, regarding ‘‘Issues and Decision Memorandum for the Final Determination in the Countervailing Duty Investigation of Certain Oil Country Tubular Goods from the Republic of Turkey,’’ dated concurrently with this notice (Issues and Decision Memorandum). 4 See Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May 19, 1997). 5 See Certain Oil Country Tubular Goods From India and Turkey: Initiation of Countervailing Duty Investigations, 78 FR 45502 (July 29, 2013) (Initiation Notice). E:\FR\FM\18JYN1.SGM 18JYN1 Federal Register / Vol. 79, No. 138 / Friday, July 18, 2014 / Notices outside of the scope of this and the other OCTG investigations. The Department addressed WSP’s scope comments in the preliminary determination of the corresponding antidumping duty investigation to this case.6 As stated in the decision memorandum accompanying the AD Preliminary Determination, we preliminarily determined not to change the scope language as presented in the Initiation Notice. No party submitted comments on this issue subsequent to the AD Preliminary Determination. Therefore, we determined not to change the scope language as presented below and in the Initiation Notice. Scope of the Investigation The merchandise covered by the investigation is certain oil country tubular goods (OCTG), which are hollow steel products of circular cross-section, including oil well casing and tubing, of iron (other than cast iron) or steel (both carbon and alloy), whether seamless or welded, regardless of end finish (e.g., whether or not plain end, threaded, or threaded and coupled) whether or not conforming to American Petroleum Institute (API) or non-API specifications, whether finished (including limited service OCTG products) or unfinished (including green tubes and limited service OCTG products), whether or not thread protectors are attached. The scope of the investigation also covers OCTG coupling stock. For a complete description of the scope of the investigation, see Appendix I to this notice. Critical Circumstances In the Preliminary Determination of Critical Circumstances, the Department concluded that critical circumstances existed with respect to imports of OCTG from Turkey produced and/or exported by Borusan, Toscelik, and all other producers/exporters, in accordance with section 703(e)(1) of the Tariff Act of 1930, as amended (the Act). Our analysis of the results of verification and the comments submitted by interested parties has not led us to change our findings from the Preliminary Determination of Critical Circumstances. Therefore, in accordance with section 705(a)(2) of the Act, we continue to find that critical circumstances exist with respect to imports of OCTG from Turkey produced and/or exported by Borusan, Toscelik, and all other producers/exporters. Analysis of Subsidy Programs and Comments Received The subsidy programs under investigation and the issues raised in the case and rebuttal briefs by parties in this investigation are discussed in the Issues and Decision Memorandum, which is hereby adopted by this notice. A list of the issues that parties have raised, and to which we responded in the Issues and Decision Memorandum, is attached to this notice as Appendix II. Use of Adverse Facts Available For purposes of this final determination, we continue to rely on facts available and to draw an adverse inference, in accordance with sections 776(a) and (b) of the Act, to determine the subsidy rate for Borusan’s purchases of hot-rolled steel (HRS) for less than adequate remuneration. Borusan failed to report its HRS purchases for the Halkali and Izmit mills as requested by the Department in two different questionnaires. Because of Borusan’s failure to report these purchases, necessary information regarding Borusan’s HRS purchases for these facilities is not on the record. Thus, we determine that we must rely on facts otherwise available in this final determination in calculating Borusan’s CVD rate.7 Moreover, we find that Borusan failed to cooperate by not acting to the best of its ability and, consequently, an adverse inference is warranted in the application of facts available.8 As adverse facts available, we, therefore, inferred that Borusan purchased all HRS for its Halkali and Izmit mills at the lowest price on the record for its Gemlik mill’s HRS purchases from Eregli Demir ve Celik Fabrikalari T.A.S. (Erdemir) and Iskenderun Demir ve Celik A.S. (Isdemir). We also inferred as adverse facts available that Borusan purchased the same quantity of HRS during the POI for its Halkali and Izmit mills as the mills’ reported annual production capacities. For a full discussion of these issues, see the Issues and Decision Memorandum, at ‘‘Use of Facts Otherwise Available and Adverse Facts Available.’’ Suspension of Liquidation In accordance with section 705(c)(1)(B)(i) of the Act, we calculated a rate for each company respondent. Section 705(c)(5)(A)(i) of the Act states that, for companies not individually investigated, we will determine an ‘‘all others’’ rate equal to the weightedaverage countervailable subsidy rates established for exporters and producers individually investigated, excluding any zero and de minimis countervailable subsidy rates, and any rates determined entirely under section 776 of the Act. Notwithstanding the language of section 705(c)(5)(A)(i) of the Act, we have not calculated the ‘‘all others’’ rate by weight averaging the rates of Borusan and Toscelik because doing so risks disclosure of proprietary information. Therefore, we calculated a simple average of Borusan’s and Toscelik’s rates. Since both Borusan and Toscelik received countervailable export subsidies and the ‘‘all others’’ rate is an average based on the individually investigated respondents, the ‘‘all others’’ rate includes export subsidies. We determine the total estimated net countervailable subsidy rates to be: Subsidy rate (percent) Company sroberts on DSK5SPTVN1PROD with NOTICES Borusan Istikbal Ticaret, Borusan Mannesmann Boru Sanayi, Borusan Mannesmann Boru Yatirim Holding A.S., and Borusan Holding A.S .................................................................................................................................................................. Tosyali Dis Ticaret A.S, Toscelik Profil ve Sac Endustrisi A.S., Tosyali Elektrik Enerjisi Toptan Satis Ith. Ihr. A.S., Tosyali ¸ Demir Celik San. A.S., and Tosyali Holding A.S ....................................................................................................................... All Others ....................................................................................................................................................................................... 6 See Certain Oil Country Tubular Goods From the Republic of Turkey: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Negative Preliminary Determination of Critical Circumstances, and Postponement of Final Determination, 79 FR 10484 (February 25, 2014) (‘‘AD Preliminary Determination’’), and accompanying decision memorandum at pages 5–7. VerDate Mar<15>2010 23:20 Jul 17, 2014 Jkt 232001 7 See sections 776(a)(1), (a)(2)(A) and (a)(2)(B) of the Act (stating that the Department may make a determination based on facts available if ‘‘(1) necessary information is not available on the record’’ or ‘‘(2) an interested party’’ ‘‘(A) withholds information that has been requested’’ by the Department or ‘‘(B) fails to provide such PO 00000 Frm 00012 Fmt 4703 41965 Sfmt 4703 15.89. 2.53. 9.21. information by the deadline for the submission of the information’’). 8 See section 776(b) of the Act (permitting the Department to ‘‘use an inference that is adverse to the interests of the party in selecting from among the facts otherwise available’’). E:\FR\FM\18JYN1.SGM 18JYN1 41966 Federal Register / Vol. 79, No. 138 / Friday, July 18, 2014 / Notices In accordance with section 705(c)(1)(C) of the Act, we are directing U.S. Customs and Border Protection (CBP) to suspend liquidation of all imports of the subject merchandise from Turkey that are entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice in the Federal Register, and to require a cash deposit for such entries of merchandise in the amounts indicated above. The suspension of liquidation will remain in effect until further notice. Further, as a result of the Preliminary Determination of Critical Circumstances and this final affirmative determination of critical circumstances, we are instructing CBP to suspend liquidation of all entries of subject merchandise from Borusan, Toscelik, and all other producers/exporters of OCTG from Turkey which were entered or withdrawn from warehouse for consumption 90 days prior to the date of publication of this notice in the Federal Register, pursuant to section 703(e)(2) of the Act. As our final determination is affirmative and our preliminary determination was negative, in accordance with section 705(b)(3) of the Act, the U.S. International Trade Commission (ITC) will determine within 75 days whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports or sales (or the likelihood of sales) for importation of the subject merchandise. We will issue a countervailing duty order if the ITC issues a final affirmative injury determination. If the ITC determines that material injury, or threat of material injury, does not exist, this proceeding will be terminated and all estimated duties deposited or securities posted as a result of the suspension of liquidation will be refunded or canceled. sroberts on DSK5SPTVN1PROD with NOTICES ITC Notification In accordance with section 705(d) of the Act, we will notify the ITC of our determination. In addition, we are making available to the ITC all nonprivileged and non-proprietary information related to this investigation. We will allow the ITC access to all privileged and business proprietary information in our files, provided the ITC confirms that it will not disclose such information, either publicly or under an administrative protective order (APO), without the written consent of the Assistant Secretary for Enforcement and Compliance. VerDate Mar<15>2010 23:20 Jul 17, 2014 Jkt 232001 Return or Destruction of Proprietary Information In the event that the ITC issues a final negative injury determination, this notice will serve as the only reminder to parties subject to an APO of their responsibility concerning the destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely written notification of the return/ destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and terms of an APO is a violation which is subject to sanction. This determination is issued and published pursuant to sections 705(d) and 777(i) of the Act. Dated: July 10, 2014. Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and Compliance. Appendix I Scope of the Investigation The merchandise covered by the investigation is certain oil country tubular goods (‘‘OCTG’’), which are hollow steel products of circular cross-section, including oil well casing and tubing, of iron (other than cast iron) or steel (both carbon and alloy), whether seamless or welded, regardless of end finish (e.g., whether or not plain end, threaded, or threaded and coupled) whether or not conforming to American Petroleum Institute (‘‘API’’) or non-API specifications, whether finished (including limited service OCTG products) or unfinished (including green tubes and limited service OCTG products), whether or not thread protectors are attached. The scope of the investigation also covers OCTG coupling stock. Excluded from the scope of the investigation are: casing or tubing containing 10.5 percent or more by weight of chromium; drill pipe; unattached couplings; and unattached thread protectors. The merchandise subject to the investigation is currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under item numbers: 7304.29.10.10, 7304.29.10.20, 7304.29.10.30, 7304.29.10.40, 7304.29.10.50, 7304.29.10.60, 7304.29.10.80, 7304.29.20.10, 7304.29.20.20, 7304.29.20.30, 7304.29.20.40, 7304.29.20.50, 7304.29.20.60, 7304.29.20.80, 7304.29.31.10, 7304.29.31.20, 7304.29.31.30, 7304.29.31.40, 7304.29.31.50, 7304.29.31.60, 7304.29.31.80, 7304.29.41.10, 7304.29.41.20, 7304.29.41.30, 7304.29.41.40, 7304.29.41.50, 7304.29.41.60, 7304.29.41.80, 7304.29.50.15, 7304.29.50.30, 7304.29.50.45, 7304.29.50.60, 7304.29.50.75, 7304.29.61.15, 7304.29.61.30, 7304.29.61.45, 7304.29.61.60, 7304.29.61.75, 7305.20.20.00, 7305.20.40.00, 7305.20.60.00, 7305.20.80.00, 7306.29.10.30, 7306.29.10.90, 7306.29.20.00, 7306.29.31.00, 7306.29.41.00, 7306.29.60.10, 7306.29.60.50, 7306.29.81.10, and 7306.29.81.50. PO 00000 Frm 00013 Fmt 4703 Sfmt 9990 The merchandise subject to the investigation may also enter under the following HTSUS item numbers: 7304.39.00.24, 7304.39.00.28, 7304.39.00.32, 7304.39.00.36, 7304.39.00.40, 7304.39.00.44, 7304.39.00.48, 7304.39.00.52, 7304.39.00.56, 7304.39.00.62, 7304.39.00.68, 7304.39.00.72, 7304.39.00.76, 7304.39.00.80, 7304.59.60.00, 7304.59.80.15, 7304.59.80.20, 7304.59.80.25, 7304.59.80.30, 7304.59.80.35, 7304.59.80.40, 7304.59.80.45, 7304.59.80.50, 7304.59.80.55, 7304.59.80.60, 7304.59.80.65, 7304.59.80.70, 7304.59.80.80, 7305.31.40.00, 7305.31.60.90, 7306.30.50.55, 7306.30.50.90, 7306.50.50.50, and 7306.50.50.70. The HTSUS subheadings above are provided for convenience and customs purposes only. The written description of the scope of the investigation is dispositive. Appendix II Issues and Decision Memorandum I. Summary II. Background III. Critical Circumstances IV. Subsidies Valuation Information a. Period of Investigation b. Allocation Period c. Attribution of Subsidies V. Benchmark Interest Rates VI. Use of Facts Otherwise Available and Adverse Inferences VII. Analysis of Programs a. Programs Found To Be Countervailable b. Programs Found Not To Be Countervailable c. Programs Found Not To Be Used VIII. Analysis of Comments Comment 1: Treatment of Erdemir and Isdemir as Government Authorities Comment 2: Distortion of Turkish HRS Market and Use of External Benchmark Comment 3: The Department’s World Market Price Benchmark Comment 4: Averaging of Benchmark Prices for HRS Comment 5: Specificity of HRS Program Comment 6: Application of AFA to Borusan’s HRS Purchases Comment 7: The Department’s Adverse Inference for Purchases by Borusan’s Halkali and Izmit Mills Comment 8: Purchases of OCTG-Qualified HRS Comment 9: Verification of the HRS for LTAR Program at the GOT Comment 10: Toscelik Sales Denominator Comment 11: Provision of Land for LTAR Comment 12: Provision of Electricity for LTAR/Law 5084: Energy Support Program Comment 13: Export Financing Loans: Subtraction of Bank Guarantee Fees From Benefit Comment 14: Specificity and Countervailability of the Investment Incentive Certificate Program Comment 15: Basis for Affirmative Critical Circumstances Determination Comment 16: Whether To Issue an Amended Preliminary Determination [FR Doc. 2014–16860 Filed 7–17–14; 8:45 am] BILLING CODE 3510–DS–P E:\FR\FM\18JYN1.SGM 18JYN1

Agencies

[Federal Register Volume 79, Number 138 (Friday, July 18, 2014)]
[Notices]
[Pages 41964-41966]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-16860]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-489-817]


Certain Oil Country Tubular Goods From the Republic of Turkey: 
Final Affirmative Countervailing Duty Determination and Final 
Affirmative Critical Circumstances Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of certain oil country tubular goods (OCTG) from the Republic of Turkey 
(Turkey). For information on the estimated subsidy rates, see the 
``Suspension of Liquidation'' section of this notice.

DATES: Effective Date: July 18, 2014.

FOR FURTHER INFORMATION CONTACT: Jennifer Meek or Shane Subler, AD/CVD 
Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
2778, and (202) 482-0189, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The petitioners in this investigation are Maverick Tube 
Corporation; United States Steel Corporation; Boomerang Tube; Energex 
Tube, a division of JMC Steel Group; Northwest Pipe Company; Tejas 
Tubular Products; TMK IPSCO; Vallourec Star, L.P.; and Welded Tube USA 
Inc. In addition to the Government of the Republic of Turkey (GOT), the 
mandatory respondents in this investigation are: (1) Borusan Mannesmann 
Boru Sanayi ve Ticaret A.S., Borusan Istikbal Ticaret, Borusan 
Mannesmann Boru Yatirim Holding A.S., and Borusan Holding A.S. 
(collectively, Borusan); and (2) Tos[ccedil]elik Profil ve Sac 
Endustrisi A.S., Tosyali Dis Ticaret A.S., Tosyali Elektrik Enerjisi 
Toptan Satis Ith. Ihr. A.S., Tosyali Holding A.S., and Tosyali Demir 
Celik San. A.S. (collectively, Toscelik). The period of investigation 
(POI) for which we are measuring subsidies is January 1, 2012, through 
December 31, 2012.

Case History

    The events that occurred since the Department published the 
Preliminary Determination \1\ on December 23, 2013, and the Preliminary 
Determination of Critical Circumstances \2\ on January 27, 2014, are 
discussed in the Issues and Decision Memorandum.\3\ The Issues and 
Decision Memorandum is a public document and is on file electronically 
via Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (IA ACCESS). IA ACCESS is 
available to registered users at https://iaaccess.trade.gov, and is 
available to all parties in the Central Records Unit, room 7046 of the 
main Department of Commerce building. In addition, a complete version 
of the Issues and Decision Memorandum can be accessed directly at 
https://enforcement.trade.gov/frn/. The signed Issues and Decision 
Memorandum and the electronic versions of the Issues and Decision 
Memorandum are identical in content.
---------------------------------------------------------------------------

    \1\ See Certain Oil Country Tubular Goods From the Republic of 
Turkey: Preliminary Negative Countervailing Duty Determination and 
Alignment of Final Determination with Final Antidumping 
Determination, 78 FR 77420 (December 23, 2013) (Preliminary 
Determination).
    \2\ See Certain Oil Country Tubular Goods from India and Turkey: 
Preliminary Determination of Critical Circumstances in the 
Countervailing Duty Investigations, 79 FR 4333 (January 27, 2014) 
(Preliminary Determination of Critical Circumstances).
    \3\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and 
Compliance, regarding ``Issues and Decision Memorandum for the Final 
Determination in the Countervailing Duty Investigation of Certain 
Oil Country Tubular Goods from the Republic of Turkey,'' dated 
concurrently with this notice (Issues and Decision Memorandum).
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Scope Comments

    In accordance with the preamble to the Department's regulations,\4\ 
in the Initiation Notice,\5\ we set aside a period of time for parties 
to raise issues regarding product coverage. We encouraged all parties 
to submit comments within 20 calendar days of publication of the 
Initiation Notice. As described at pages 3-4 of the decision memorandum 
accompanying the Preliminary Determination, on August 12, 2013, WSP 
Pipe Co., Ltd. (WSP) (the sole mandatory respondent in the concurrent 
antidumping duty investigation involving OCTG from Thailand) submitted 
scope comments to the Department regarding ``pierced billets.'' WSP 
asked the Department to determine that such merchandise was

[[Page 41965]]

outside of the scope of this and the other OCTG investigations. The 
Department addressed WSP's scope comments in the preliminary 
determination of the corresponding antidumping duty investigation to 
this case.\6\ As stated in the decision memorandum accompanying the AD 
Preliminary Determination, we preliminarily determined not to change 
the scope language as presented in the Initiation Notice. No party 
submitted comments on this issue subsequent to the AD Preliminary 
Determination. Therefore, we determined not to change the scope 
language as presented below and in the Initiation Notice.
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    \4\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \5\ See Certain Oil Country Tubular Goods From India and Turkey: 
Initiation of Countervailing Duty Investigations, 78 FR 45502 (July 
29, 2013) (Initiation Notice).
    \6\ See Certain Oil Country Tubular Goods From the Republic of 
Turkey: Preliminary Affirmative Determination of Sales at Less Than 
Fair Value, Negative Preliminary Determination of Critical 
Circumstances, and Postponement of Final Determination, 79 FR 10484 
(February 25, 2014) (``AD Preliminary Determination''), and 
accompanying decision memorandum at pages 5-7.
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Scope of the Investigation

    The merchandise covered by the investigation is certain oil country 
tubular goods (OCTG), which are hollow steel products of circular 
cross-section, including oil well casing and tubing, of iron (other 
than cast iron) or steel (both carbon and alloy), whether seamless or 
welded, regardless of end finish (e.g., whether or not plain end, 
threaded, or threaded and coupled) whether or not conforming to 
American Petroleum Institute (API) or non-API specifications, whether 
finished (including limited service OCTG products) or unfinished 
(including green tubes and limited service OCTG products), whether or 
not thread protectors are attached. The scope of the investigation also 
covers OCTG coupling stock. For a complete description of the scope of 
the investigation, see Appendix I to this notice.

Critical Circumstances

    In the Preliminary Determination of Critical Circumstances, the 
Department concluded that critical circumstances existed with respect 
to imports of OCTG from Turkey produced and/or exported by Borusan, 
Toscelik, and all other producers/exporters, in accordance with section 
703(e)(1) of the Tariff Act of 1930, as amended (the Act). Our analysis 
of the results of verification and the comments submitted by interested 
parties has not led us to change our findings from the Preliminary 
Determination of Critical Circumstances. Therefore, in accordance with 
section 705(a)(2) of the Act, we continue to find that critical 
circumstances exist with respect to imports of OCTG from Turkey 
produced and/or exported by Borusan, Toscelik, and all other producers/
exporters.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum, which is hereby 
adopted by this notice. A list of the issues that parties have raised, 
and to which we responded in the Issues and Decision Memorandum, is 
attached to this notice as Appendix II.

Use of Adverse Facts Available

    For purposes of this final determination, we continue to rely on 
facts available and to draw an adverse inference, in accordance with 
sections 776(a) and (b) of the Act, to determine the subsidy rate for 
Borusan's purchases of hot-rolled steel (HRS) for less than adequate 
remuneration. Borusan failed to report its HRS purchases for the 
Halkali and Izmit mills as requested by the Department in two different 
questionnaires. Because of Borusan's failure to report these purchases, 
necessary information regarding Borusan's HRS purchases for these 
facilities is not on the record. Thus, we determine that we must rely 
on facts otherwise available in this final determination in calculating 
Borusan's CVD rate.\7\ Moreover, we find that Borusan failed to 
cooperate by not acting to the best of its ability and, consequently, 
an adverse inference is warranted in the application of facts 
available.\8\ As adverse facts available, we, therefore, inferred that 
Borusan purchased all HRS for its Halkali and Izmit mills at the lowest 
price on the record for its Gemlik mill's HRS purchases from Eregli 
Demir ve Celik Fabrikalari T.A.S. (Erdemir) and Iskenderun Demir ve 
Celik A.S. (Isdemir). We also inferred as adverse facts available that 
Borusan purchased the same quantity of HRS during the POI for its 
Halkali and Izmit mills as the mills' reported annual production 
capacities. For a full discussion of these issues, see the Issues and 
Decision Memorandum, at ``Use of Facts Otherwise Available and Adverse 
Facts Available.''
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    \7\ See sections 776(a)(1), (a)(2)(A) and (a)(2)(B) of the Act 
(stating that the Department may make a determination based on facts 
available if ``(1) necessary information is not available on the 
record'' or ``(2) an interested party'' ``(A) withholds information 
that has been requested'' by the Department or ``(B) fails to 
provide such information by the deadline for the submission of the 
information'').
    \8\ See section 776(b) of the Act (permitting the Department to 
``use an inference that is adverse to the interests of the party in 
selecting from among the facts otherwise available'').
---------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated a rate for each company respondent. Section 705(c)(5)(A)(i) 
of the Act states that, for companies not individually investigated, we 
will determine an ``all others'' rate equal to the weighted-average 
countervailable subsidy rates established for exporters and producers 
individually investigated, excluding any zero and de minimis 
countervailable subsidy rates, and any rates determined entirely under 
section 776 of the Act.
    Notwithstanding the language of section 705(c)(5)(A)(i) of the Act, 
we have not calculated the ``all others'' rate by weight averaging the 
rates of Borusan and Toscelik because doing so risks disclosure of 
proprietary information. Therefore, we calculated a simple average of 
Borusan's and Toscelik's rates. Since both Borusan and Toscelik 
received countervailable export subsidies and the ``all others'' rate 
is an average based on the individually investigated respondents, the 
``all others'' rate includes export subsidies.
    We determine the total estimated net countervailable subsidy rates 
to be:

------------------------------------------------------------------------
                                                          Subsidy rate
                       Company                             (percent)
------------------------------------------------------------------------
Borusan Istikbal Ticaret, Borusan Mannesmann Boru                 15.89.
 Sanayi, Borusan Mannesmann Boru Yatirim Holding
 A.S., and Borusan Holding A.S.......................
Tosyali Dis Ticaret A.S, Tos[ccedil]elik Profil ve                 2.53.
 Sac Endustrisi A.S., Tosyali Elektrik Enerjisi
 Toptan Satis Ith. Ihr. A.S., Tosyali Demir Celik
 San. A.S., and Tosyali Holding A.S..................
All Others...........................................              9.21.
------------------------------------------------------------------------


[[Page 41966]]

    In accordance with section 705(c)(1)(C) of the Act, we are 
directing U.S. Customs and Border Protection (CBP) to suspend 
liquidation of all imports of the subject merchandise from Turkey that 
are entered, or withdrawn from warehouse, for consumption on or after 
the date of publication of this notice in the Federal Register, and to 
require a cash deposit for such entries of merchandise in the amounts 
indicated above. The suspension of liquidation will remain in effect 
until further notice. Further, as a result of the Preliminary 
Determination of Critical Circumstances and this final affirmative 
determination of critical circumstances, we are instructing CBP to 
suspend liquidation of all entries of subject merchandise from Borusan, 
Toscelik, and all other producers/exporters of OCTG from Turkey which 
were entered or withdrawn from warehouse for consumption 90 days prior 
to the date of publication of this notice in the Federal Register, 
pursuant to section 703(e)(2) of the Act.
    As our final determination is affirmative and our preliminary 
determination was negative, in accordance with section 705(b)(3) of the 
Act, the U.S. International Trade Commission (ITC) will determine 
within 75 days whether the domestic industry in the United States is 
materially injured, or threatened with material injury, by reason of 
imports or sales (or the likelihood of sales) for importation of the 
subject merchandise. We will issue a countervailing duty order if the 
ITC issues a final affirmative injury determination. If the ITC 
determines that material injury, or threat of material injury, does not 
exist, this proceeding will be terminated and all estimated duties 
deposited or securities posted as a result of the suspension of 
liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation which is subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: July 10, 2014.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by the investigation is certain oil 
country tubular goods (``OCTG''), which are hollow steel products of 
circular cross-section, including oil well casing and tubing, of 
iron (other than cast iron) or steel (both carbon and alloy), 
whether seamless or welded, regardless of end finish (e.g., whether 
or not plain end, threaded, or threaded and coupled) whether or not 
conforming to American Petroleum Institute (``API'') or non-API 
specifications, whether finished (including limited service OCTG 
products) or unfinished (including green tubes and limited service 
OCTG products), whether or not thread protectors are attached. The 
scope of the investigation also covers OCTG coupling stock.
    Excluded from the scope of the investigation are: casing or 
tubing containing 10.5 percent or more by weight of chromium; drill 
pipe; unattached couplings; and unattached thread protectors.
    The merchandise subject to the investigation is currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under item numbers: 7304.29.10.10, 7304.29.10.20, 
7304.29.10.30, 7304.29.10.40, 7304.29.10.50, 7304.29.10.60, 
7304.29.10.80, 7304.29.20.10, 7304.29.20.20, 7304.29.20.30, 
7304.29.20.40, 7304.29.20.50, 7304.29.20.60, 7304.29.20.80, 
7304.29.31.10, 7304.29.31.20, 7304.29.31.30, 7304.29.31.40, 
7304.29.31.50, 7304.29.31.60, 7304.29.31.80, 7304.29.41.10, 
7304.29.41.20, 7304.29.41.30, 7304.29.41.40, 7304.29.41.50, 
7304.29.41.60, 7304.29.41.80, 7304.29.50.15, 7304.29.50.30, 
7304.29.50.45, 7304.29.50.60, 7304.29.50.75, 7304.29.61.15, 
7304.29.61.30, 7304.29.61.45, 7304.29.61.60, 7304.29.61.75, 
7305.20.20.00, 7305.20.40.00, 7305.20.60.00, 7305.20.80.00, 
7306.29.10.30, 7306.29.10.90, 7306.29.20.00, 7306.29.31.00, 
7306.29.41.00, 7306.29.60.10, 7306.29.60.50, 7306.29.81.10, and 
7306.29.81.50.
    The merchandise subject to the investigation may also enter 
under the following HTSUS item numbers: 7304.39.00.24, 
7304.39.00.28, 7304.39.00.32, 7304.39.00.36, 7304.39.00.40, 
7304.39.00.44, 7304.39.00.48, 7304.39.00.52, 7304.39.00.56, 
7304.39.00.62, 7304.39.00.68, 7304.39.00.72, 7304.39.00.76, 
7304.39.00.80, 7304.59.60.00, 7304.59.80.15, 7304.59.80.20, 
7304.59.80.25, 7304.59.80.30, 7304.59.80.35, 7304.59.80.40, 
7304.59.80.45, 7304.59.80.50, 7304.59.80.55, 7304.59.80.60, 
7304.59.80.65, 7304.59.80.70, 7304.59.80.80, 7305.31.40.00, 
7305.31.60.90, 7306.30.50.55, 7306.30.50.90, 7306.50.50.50, and 
7306.50.50.70.
    The HTSUS subheadings above are provided for convenience and 
customs purposes only. The written description of the scope of the 
investigation is dispositive.

Appendix II

Issues and Decision Memorandum

I. Summary
II. Background
III. Critical Circumstances
IV. Subsidies Valuation Information
    a. Period of Investigation
    b. Allocation Period
    c. Attribution of Subsidies
V. Benchmark Interest Rates
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Analysis of Programs
    a. Programs Found To Be Countervailable
    b. Programs Found Not To Be Countervailable
    c. Programs Found Not To Be Used
VIII. Analysis of Comments
Comment 1: Treatment of Erdemir and Isdemir as Government 
Authorities
Comment 2: Distortion of Turkish HRS Market and Use of External 
Benchmark
Comment 3: The Department's World Market Price Benchmark
Comment 4: Averaging of Benchmark Prices for HRS
Comment 5: Specificity of HRS Program
Comment 6: Application of AFA to Borusan's HRS Purchases
Comment 7: The Department's Adverse Inference for Purchases by 
Borusan's Halkali and Izmit Mills
Comment 8: Purchases of OCTG-Qualified HRS
Comment 9: Verification of the HRS for LTAR Program at the GOT
Comment 10: Toscelik Sales Denominator
Comment 11: Provision of Land for LTAR
Comment 12: Provision of Electricity for LTAR/Law 5084: Energy 
Support Program
Comment 13: Export Financing Loans: Subtraction of Bank Guarantee 
Fees From Benefit
Comment 14: Specificity and Countervailability of the Investment 
Incentive Certificate Program
Comment 15: Basis for Affirmative Critical Circumstances 
Determination
Comment 16: Whether To Issue an Amended Preliminary Determination

[FR Doc. 2014-16860 Filed 7-17-14; 8:45 am]
BILLING CODE 3510-DS-P

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