Certain Oil Country Tubular Goods From the Socialist Republic of Vietnam: Final Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances, 41973-41976 [2014-16862]

Download as PDF Federal Register / Vol. 79, No. 138 / Friday, July 18, 2014 / Notices 735(c)(1) and 772(c)(1)(C) of the Act and 19 CFR 351.210(d), the Department will instruct CBP to require cash deposits equal to the weighted-average dumping margins indicated below, adjusted where appropriate for export subsidies. We will instruct CBP to require a cash deposit equal to the weighted-average amount by which normal value exceeds U.S. price, as follows: (1) The rate for ¨ Yucel will be the rate we determined in this final determination; (2) if the exporter is not a firm identified in this investigation but the producer is, the rate will be the rate established for the producer of the subject merchandise; (3) the rate for all other producers or exporters will be 35.86 percent, as discussed in the ‘‘All Others Rate’’ section, below. These suspension of liquidation and cash deposit instructions will remain in effect until further notice. Final Determination The Department determines that the following dumping margins exist for the period July 1, 2012, through June 30, 2013: Exporter/manufacturer Borusan Mannesmann Boru Sanayi ve Ticaret and Borusan Istikbal Ticaret (collectively Borusan) .................. Cayirova Boru Sanayi ve ¸ ¨ Ticaret A.S. and Yucel Boru ¸ Ithalat-Ihracat ve Pazarlama ¨ A.S. (collectively Yucel) ........ ¸ All Others .................................. sroberts on DSK5SPTVN1PROD with NOTICES Section 735(c)(5)(A) of the Act provides that the estimated ‘‘all others’’ rate shall be an amount equal to the weighted average of the estimated weighted-average dumping margins established for exporters and producers individually investigated, excluding any zero or de minimis margins, and any margins determined entirely under section 776 of the Act. In this final determination, we have assigned the ‘‘All Others’’ a rate based on the weighted-average dumping margin ¨ calculated for Yucel, the only company for which the Department calculated a rate. Countervailing Duty Determination and Final Affirmative Critical Circumstances Determination, dated concurrently with this notice. 23:20 Jul 17, 2014 In accordance with section 735(d) of the Act, we notified the U.S. International Trade Commission (ITC) of our final determination. As our final determination is affirmative, in accordance with section 735(b)(2) of the Act, the ITC will determine within 45 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. If the ITC determines that such injury exists, the Department will issue an antidumping duty order directing CBP to assess, upon further instruction by the Department, antidumping duties on imports of the subject merchandise entered, or withdrawn from warehouse, for consumption on or after the effective date of the suspension of liquidation, as discussed above in the ‘‘Continuation of Suspension of Liquidation’’ section. Return or Destruction of Proprietary Information This notice will serve as a reminder to parties subject to administrative protective order (APO) of their Weightedresponsibility concerning the average dumping disposition of proprietary information margin disclosed under APO in accordance (percent) with 19 CFR 351.305. Timely written notification of the destruction of APO materials or conversion to judicial protective order is hereby requested. 0.00 Failure to comply with the regulations and the terms of an APO is a sanctionable violation. We are issuing and publishing this 35.86 determination and notice pursuant to 35.86 sections 735(d) and 777(i)(l) of the Act. All Others Rate VerDate Mar<15>2010 U.S. International Trade Commission Notification Jkt 232001 Dated: July 10, 2014. Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and Compliance. Appendix List of Topics Discussed in the Issues and Decision Memorandum I. Summary II. Background III. Critical Circumstances IV. Scope of the Investigation V. Margin Calculations VI. Discussion of the Issues 1. Duty Drawback 2. Constructed Value Selling Expenses for ¨ Yucel 3. Constructed Value Selling Profit for ¨ Yucel 4. Borusan’s Home Market Sales 5. Standard J55 and Upgradeable J55 6. Borusan’s Export Price Sales 7. Differential Pricing Analysis: Thresholds for the Results of the Ratio Test PO 00000 Frm 00020 Fmt 4703 Sfmt 4703 41973 8. Treatment of Borusan’s Second-Quality Pipe 9. Misclassification of Borusan’s Steel Coil Purchases VII. Recommendation [FR Doc. 2014–16873 Filed 7–17–14; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–552–817] Certain Oil Country Tubular Goods From the Socialist Republic of Vietnam: Final Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Department) determines that certain oil country tubular goods (OCTG) from the Socialist Republic of Vietnam (Vietnam) are being, or are likely to be, sold in the United States at less-than-fair value (LTFV), as provided in section 735 of the Tariff Act of 1930, as amended (the Act). The final weighted-average dumping margins of sales at LTFV are shown in the ‘‘Final Determination’’ section of this notice. DATES: Effective Date: July 18, 2014. FOR FURTHER INFORMATION CONTACT: Fred Baker or Davina Friedmann, AD/CVD Operations, Office VI, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482–2924 or (202) 482– 0698, respectively. SUPPLEMENTARY INFORMATION: AGENCY: Background The Department published its preliminary determination on February 25, 2014.1 On June 6, 2014, we received case briefs from United States Steel Corporation (U.S. Steel) and SeAH Steel VINA Corporation (SeAH VINA). On June 13, 2014, we received rebuttal briefs from U.S. Steel and SeAH VINA. At the request of both parties, we held a public hearing on June 20, 2014. Based on an analysis of the comments received, the Department has made 1 See Certain Oil Country Tubular Goods From the Socialist Republic of Vietnam: Preliminary Determination of Sales at Less Than Fair Value, Affirmative Preliminary Determination of Critical Circumstances, in Part, and Postponement of Final Determination, 79 FR 10478 (February 25, 2014) (Preliminary Determination), and the accompanying Preliminary Decision memorandum. E:\FR\FM\18JYN1.SGM 18JYN1 41974 Federal Register / Vol. 79, No. 138 / Friday, July 18, 2014 / Notices changes to the Preliminary Determination. sroberts on DSK5SPTVN1PROD with NOTICES Period of Investigation The period of investigation (POI) is January 1, 2013, through June 30, 2013. Scope of the Investigation The merchandise covered by this 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, VerDate Mar<15>2010 23:20 Jul 17, 2014 Jkt 232001 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. Verification As provided in section 782(i) of the Act, the Department verified the information submitted by SeAH VINA for use in the final determination. The Department used standard verification procedures, including examination of relevant accounting and production records and original source documents provided by the respondent.2 Analysis of Comments Received All issues raised in the case and rebuttal briefs for this investigation are addressed in the Issues and Decision Memorandum, which is dated concurrently with and hereby adopted by this notice.3 A list of the issues which parties have raised and to which we have responded in the Issues and Decision Memorandum is attached to this notice as an Appendix. 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). Access to IA ACCESS is available to registered users at https:// iaaccess.trade.gov, and it is available to 2 See Memorandum to the File From Fred Baker and Scott Hoefke, ‘‘Verification of the Sales and Factors Response of SeAH Steel VINA Corporation (SSV) in the Antidumping Investigation of Oil Country Tubular Goods (OCTG) From the Socialist Republic of Vietnam (Vietnam),’’ dated May 7, 2014, and Memorandum to the File From Fred Baker and Scott Hoefke, ‘‘Verification of the Sales of Pusan Pipe America (PPA) in the Antidumping Investigation of Oil Country Tubular Goods (OCTG) From the Socialist Republic of Vietnam (Vietnam),’’ dated May 30, 2014. 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, ‘‘Certain Oil Country Tubular Goods From the Socialist Republic of Vietnam: Issues and Decision Memorandum for the Final Determination’’ dated July 10, 2014 (Issues and Decision Memorandum). PO 00000 Frm 00021 Fmt 4703 Sfmt 4703 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 on the Internet at https:// www.trade.gov/enforcement/frn/ index.html. The signed version and electronic version of the Issues and Decision Memorandum are identical in content. Changes Since the Preliminary Determination Based on our analysis of the comments received and our findings at verification, we have made certain changes to the margin calculation for SeAH VINA.4 Critical Circumstances In the Preliminary Determination, the Department found that there was reason to believe or suspect that critical circumstances existed for imports of subject merchandise from the Vietnamwide entity, and that these imports were massive during a relatively short period.5 However, the Department did not preliminarily find that there was reason to believe or suspect that critical circumstances existed for imports of subject merchandise from SeAH VINA.6 No parties commented on the Department’s preliminary critical circumstances determination and we find no reason to reconsider this determination. Therefore, we continue to determine that critical circumstances exist for the Vietnam-wide entity, but that critical circumstances do not exist for SeAH VINA for this final determination. Use of Facts Available and Adverse Facts Available Section 776(a) of the Act provides that the Department shall apply facts available (‘‘FA’’) if (1) necessary information is not on the record, or (2) an interested party or any other person (A) withholds information that has been requested, (B) fails to provide information within the deadlines established, or in the form and manner requested by the Department, subject to subsections (c)(1) and (e) of section 782 of the Act, (C) significantly impedes a proceeding, or (D) provides information that cannot be verified as provided by section 782(i) of the Act. Section 776(b) of the Act further provides that the Department may use an adverse inference in applying FA when a party has failed to cooperate by 4 See Issues and Decision Memorandum. sections 733(e)(1)(A)(ii) and (B) of the Act. 6 See Preliminary Determination, 79 FR at 10478. 5 See E:\FR\FM\18JYN1.SGM 18JYN1 41975 Federal Register / Vol. 79, No. 138 / Friday, July 18, 2014 / Notices not acting to the best of its ability to comply with a request for information. Such an adverse inference may include reliance on information derived from the petition, the final determination, a previous administrative review, or other information placed on the record. Vietnam-Wide Entity In the Preliminary Determination, the Department determined that certain Vietnamese exporters did not respond to the Department’s requests for information and did not establish that they were eligible for a separate rate. Thus, the Department has found that these Vietnamese exporters are part of the Vietnam-wide entity and the Vietnam-wide entity has not responded to our requests for information. Because the Vietnam-wide entity did not provide the Department with requested information, pursuant to section 776(a)(2)(A) of the Act, the Department continues to find it appropriate to base the weighted-average dumping margin for the Vietnam-wide entity on FA. The Department determines that, because the Vietnam-wide entity did not respond to our request for information, the Vietnam-wide entity has failed to cooperate to the best of its ability. Therefore, pursuant to section 776(b) of the Act, the Department finds that, in selecting from among the FA, an adverse inference is appropriate for the Vietnam-wide entity. Because the Department begins with the presumption that all companies within an NME country are subject to government control, and because only SeAH VINA has overcome that presumption, the Department is assigning a single weight-average dumping margin to all other exporters of subject merchandise from Vietnam. Such companies have not demonstrated their eligibility for a separate rate.7 sroberts on DSK5SPTVN1PROD with NOTICES Selection of the Adverse Facts Available Rate for the Vietnam-Wide Entity In determining a weighted-average dumping margin based on AFA, the Department’s practice is to select a rate that is sufficiently adverse ‘‘as to effectuate the purpose of the adverse facts available rule to induce respondents to provide the Department with complete and accurate information in a timely manner.’’ 8 Further, it is the 7 See, e.g., Notice of Final Determination of Sales at Less Than Fair Market Value: Synthetic Indigo From the People’s Republic of China, 65 FR 25706, 25707 (May 2, 2000). 8 See Notice of Final Determination of Sales at Less than Fair Value: Static Random Access Memory Semiconductors From Taiwan, 63 FR 8909, 8932 (February 23, 1998). VerDate Mar<15>2010 23:20 Jul 17, 2014 Jkt 232001 Department’s practice to select a rate that ensures ‘‘that the party does not obtain a more favorable result by failing to cooperate than if it had cooperated fully.’’ 9 Thus, it is the Department’s practice to select as AFA the higher of the (a) highest dumping margin alleged in the petition or (b) the highest calculated rate of any respondent in the investigation.10 As in the Preliminary Determination, we have selected a rate of 111.47 percent for the Vietnam-wide entity, the highest dumping margin alleged in the petition, as corrected by the petitioners 11 prior to our initiation of this investigation.12 In order to determine the probative value of the dumping margin in the petition for use as AFA for purposes of this final determination, we compared it to the transaction-specific dumping margins we found for the participating mandatory respondent SeAH VINA. We found that the rate of 111.47 percent is reliable and relevant because it is within the range of SeAH VINA’s transactionspecific dumping margins.13 Accordingly, we find the rate of 111.47 percent is corroborated within the meaning of section 776(c) of the Act. The weighted-average dumping margin assigned to the Vietnam-wide entity applies to all entries of the merchandise under investigation except for entries of merchandise under investigation from the exporter/ producer combinations listed in the chart in the ‘‘Final Determination’’ section below. Final Determination The Department determines that the following weighted-average dumping margins exist: 9 See Brake Rotors from the People’s Republic of China: Final Results and Partial Rescission of the Seventh Administrative Review; Final Results of the Eleventh New Shipper Review, 70 FR 69937, 69939 (November 18, 2005)(quoting the Statement of Administrative Action accompanying the Uruguay Round Agreements Act, H. Doc. No. 316, 103d Cong., 2d Session at 870 (1994)). 10 See, e.g., Seamless Refined Copper Pipe and Tube From the People’s Republic of China: Final Determination of Sales at Less Than Fair Value, 75 FR 60725, 60729 (October 1, 2010). 11 The petitioners in this proceeding are U.S. Steel, Maverick Tube 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. 12 See Preliminary Determination, 79 FR 10479 and the accompanying Preliminary Decision Memorandum at 11 f. 13 See SeAH VINA final determination analysis memorandum dated July 10, 2014. PO 00000 Frm 00022 Fmt 4703 Sfmt 4703 Exporter Producer SeAH Steel VINA Corporation. SeAH Steel VINA Corporation. Vietnam-Wide Entity Weightedaverage dumping margin (percent) 24.22 111.47 Disclosure The Department intends to disclose calculations performed for this final determination to the parties within five days of the date of publication of this notice in accordance with 19 CFR 351.224(b). Continuation of Suspension of Liquidation As noted above, the Department found that critical circumstances exist with respect to imports of merchandise under consideration from the Vietnamwide entity. In accordance with section 735(c)(1)(B) of the Act, the Department will instruct CBP to continue to suspend liquidation of all appropriate entries of subject merchandise, as described in the ‘‘Scope of Investigation’’ section of this notice, from the Vietnam-wide entity that were entered, or withdrawn from warehouse for consumption on or after the date 90 days prior of the publication of the Preliminary Determination in the Federal Register. Since critical circumstances do not exist for SeAH VINA, the Department will instruct CBP to suspend liquidation of all appropriate entries of subject merchandise produced and exported by SeAH VINA that were entered, or withdrawn from warehouse for consumption on or after February 25, 2014, the publication date of the Preliminary Determination in the Federal Register. CBP shall require a cash deposit equal to the estimated amount by which the normal value exceeds the U.S. price as shown above. These instructions suspending liquidation will remain in effect until further notice. International Trade Commission (ITC) Notification In accordance with section 735(d) of the Act, we will notify the ITC of our final affirmative determination of sales at LTFV. Because the final determination in this proceeding is affirmative, in accordance with section 735(b)(2) of the Act, the ITC will make its final determination as to whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports of OCTG from Vietnam no later than 45 days after our final determination. If the E:\FR\FM\18JYN1.SGM 18JYN1 41976 Federal Register / Vol. 79, No. 138 / Friday, July 18, 2014 / Notices ITC determines that material injury or threat of material injury does not exist, the proceeding will be terminated and all securities posted will be refunded or canceled. If the ITC determines that such injury does exist, the Department will issue an antidumping duty order directing CBP to assess antidumping duties on all imports of the merchandise under investigation entered, or withdrawn from warehouse, for consumption on or after the effective date of the suspension of liquidation. Notification Regarding Administrative Protective Orders This notice also serves as a final reminder to the parties subject to an administrative protective order (APO) of their responsibility concerning the disposition of proprietary information disclosed under APO in accordance with 19 CFR 351.305. Timely written notification of the return or destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and the terms of an APO is a sanctionable violation. Notification to Interested Parties This determination and notice are issued and published in accordance with sections 735(d) and 777(i)(1) of the Act. Dated: July 10, 2014. Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and Compliance. sroberts on DSK5SPTVN1PROD with NOTICES Appendix Comment 1: Surrogate Value for Domestic Brokerage and Handling Comment 2: Financial Statements Comment 3: Surrogate Value for Labor Comment 4: Surrogate Value for Water Comment 5: Whether to Exclude ‘‘LimitedService’’ Pipe From the Margin Calculation Comment 6: Differential Pricing Comment 7: Valuation of Hot-Rolled Coil Comment 8: Adjusting the Price of SSV’s Hot-Rolled Coil To Reflect Arm’s-Length Transactions Comment 9: Whether To Revise the Reported Yield Rates Comment 10: Adding Brokerage and Handling and Port Fees to SSV’s MarketEconomy Purchases of Hot-Rolled Coil Comment 11: Domestic Inland Insurance Comment 12: Whether To Revise Further Manufacturing Costs to Include Interest Expenses Comment 13: Import Duties on Varnish [FR Doc. 2014–16862 Filed 7–17–14; 8:45 am] BILLING CODE 3510–DS–P VerDate Mar<15>2010 23:20 Jul 17, 2014 Jkt 232001 DEPARTMENT OF COMMERCE International Trade Administration [A–565–802] Certain Oil Country Tubular Goods From the Republic of the Philippines: Final Determination of Sales at Less Than Fair Value and Negative Final Determination of Critical Circumstances Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department determines that imports of certain oil country tubular goods from the Republic of the Philippines are being, or likely to be, sold in the United States at less than fair value (LTFV), as provided in section 735 of the Tariff Act of 1930, as amended (the Act). The final weightedaverage dumping margins of sales at LTFV are listed in the ‘‘Final Determination’’ section of this notice. DATES: Effective Date: July 18, 2014. FOR FURTHER INFORMATION CONTACT: Dmitry Vladimirov, AD/CVD Operations, Office I, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482–0665. SUPPLEMENTARY INFORMATION: AGENCY: Background On February 25, 2014, the Department published the Preliminary Determination in the Federal Register.1 In the Preliminary Determination, we postponed the final determination until no later than 135 days after the publication of the Preliminary Determination in accordance with section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii) and invited parties to comment on our Preliminary Determination. We received case and rebuttal briefs from the petitioners 2 and HLD Clark Steel Pipe Co., Inc. (HLD Clark) in May 2014.3 On June 2, 2014, 1 See Certain Oil Country Tubular Goods From the Republic of the Philippines: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Negative Preliminary Determination of Critical Circumstances, and Postponement of Final Determination, 79 FR 10491 (February 25, 2014) (Preliminary Determination). 2 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. (collectively, the petitioners). 3 On June 27, 2014, we placed certain new factual information on the record. On July 1, 2014, HLD Clark provided comments on this information. PO 00000 Frm 00023 Fmt 4703 Sfmt 4703 we conducted a hearing in this investigation. Period of Investigation The period of investigation is July 1, 2012, through June 30, 2013. 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 investigations 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, E:\FR\FM\18JYN1.SGM 18JYN1

Agencies

[Federal Register Volume 79, Number 138 (Friday, July 18, 2014)]
[Notices]
[Pages 41973-41976]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-16862]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-552-817]


Certain Oil Country Tubular Goods From the Socialist Republic of 
Vietnam: Final Determination of Sales at Less Than Fair Value and Final 
Affirmative Determination of Critical Circumstances

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

SUMMARY: The Department of Commerce (Department) determines that 
certain oil country tubular goods (OCTG) from the Socialist Republic of 
Vietnam (Vietnam) are being, or are likely to be, sold in the United 
States at less-than-fair value (LTFV), as provided in section 735 of 
the Tariff Act of 1930, as amended (the Act). The final weighted-
average dumping margins of sales at LTFV are shown in the ``Final 
Determination'' section of this notice.

DATES: Effective Date: July 18, 2014.

FOR FURTHER INFORMATION CONTACT: Fred Baker or Davina Friedmann, AD/CVD 
Operations, Office VI, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
2924 or (202) 482-0698, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published its preliminary determination on February 
25, 2014.\1\ On June 6, 2014, we received case briefs from United 
States Steel Corporation (U.S. Steel) and SeAH Steel VINA Corporation 
(SeAH VINA). On June 13, 2014, we received rebuttal briefs from U.S. 
Steel and SeAH VINA. At the request of both parties, we held a public 
hearing on June 20, 2014. Based on an analysis of the comments 
received, the Department has made

[[Page 41974]]

changes to the Preliminary Determination.
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    \1\ See Certain Oil Country Tubular Goods From the Socialist 
Republic of Vietnam: Preliminary Determination of Sales at Less Than 
Fair Value, Affirmative Preliminary Determination of Critical 
Circumstances, in Part, and Postponement of Final Determination, 79 
FR 10478 (February 25, 2014) (Preliminary Determination), and the 
accompanying Preliminary Decision memorandum.
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Period of Investigation

    The period of investigation (POI) is January 1, 2013, through June 
30, 2013.

Scope of the Investigation

    The merchandise covered by this 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.

Verification

    As provided in section 782(i) of the Act, the Department verified 
the information submitted by SeAH VINA for use in the final 
determination. The Department used standard verification procedures, 
including examination of relevant accounting and production records and 
original source documents provided by the respondent.\2\
---------------------------------------------------------------------------

    \2\ See Memorandum to the File From Fred Baker and Scott Hoefke, 
``Verification of the Sales and Factors Response of SeAH Steel VINA 
Corporation (SSV) in the Antidumping Investigation of Oil Country 
Tubular Goods (OCTG) From the Socialist Republic of Vietnam 
(Vietnam),'' dated May 7, 2014, and Memorandum to the File From Fred 
Baker and Scott Hoefke, ``Verification of the Sales of Pusan Pipe 
America (PPA) in the Antidumping Investigation of Oil Country 
Tubular Goods (OCTG) From the Socialist Republic of Vietnam 
(Vietnam),'' dated May 30, 2014.
---------------------------------------------------------------------------

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs for this 
investigation are addressed in the Issues and Decision Memorandum, 
which is dated concurrently with and hereby adopted by this notice.\3\ 
A list of the issues which parties have raised and to which we have 
responded in the Issues and Decision Memorandum is attached to this 
notice as an Appendix. 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). Access to IA ACCESS is available to registered 
users at https://iaaccess.trade.gov, and it 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 on the Internet at https://www.trade.gov/enforcement/frn/. The signed version and 
electronic version of the Issues and Decision Memorandum are identical 
in content.
---------------------------------------------------------------------------

    \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, ``Certain Oil Country Tubular Goods From the Socialist 
Republic of Vietnam: Issues and Decision Memorandum for the Final 
Determination'' dated July 10, 2014 (Issues and Decision 
Memorandum).
---------------------------------------------------------------------------

Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we have made certain changes to the margin calculation 
for SeAH VINA.\4\
---------------------------------------------------------------------------

    \4\ See Issues and Decision Memorandum.
---------------------------------------------------------------------------

Critical Circumstances

    In the Preliminary Determination, the Department found that there 
was reason to believe or suspect that critical circumstances existed 
for imports of subject merchandise from the Vietnam-wide entity, and 
that these imports were massive during a relatively short period.\5\ 
However, the Department did not preliminarily find that there was 
reason to believe or suspect that critical circumstances existed for 
imports of subject merchandise from SeAH VINA.\6\ No parties commented 
on the Department's preliminary critical circumstances determination 
and we find no reason to reconsider this determination. Therefore, we 
continue to determine that critical circumstances exist for the 
Vietnam-wide entity, but that critical circumstances do not exist for 
SeAH VINA for this final determination.
---------------------------------------------------------------------------

    \5\ See sections 733(e)(1)(A)(ii) and (B) of the Act.
    \6\ See Preliminary Determination, 79 FR at 10478.
---------------------------------------------------------------------------

Use of Facts Available and Adverse Facts Available

    Section 776(a) of the Act provides that the Department shall apply 
facts available (``FA'') if (1) necessary information is not on the 
record, or (2) an interested party or any other person (A) withholds 
information that has been requested, (B) fails to provide information 
within the deadlines established, or in the form and manner requested 
by the Department, subject to subsections (c)(1) and (e) of section 782 
of the Act, (C) significantly impedes a proceeding, or (D) provides 
information that cannot be verified as provided by section 782(i) of 
the Act.
    Section 776(b) of the Act further provides that the Department may 
use an adverse inference in applying FA when a party has failed to 
cooperate by

[[Page 41975]]

not acting to the best of its ability to comply with a request for 
information. Such an adverse inference may include reliance on 
information derived from the petition, the final determination, a 
previous administrative review, or other information placed on the 
record.

Vietnam-Wide Entity

    In the Preliminary Determination, the Department determined that 
certain Vietnamese exporters did not respond to the Department's 
requests for information and did not establish that they were eligible 
for a separate rate. Thus, the Department has found that these 
Vietnamese exporters are part of the Vietnam-wide entity and the 
Vietnam-wide entity has not responded to our requests for information. 
Because the Vietnam-wide entity did not provide the Department with 
requested information, pursuant to section 776(a)(2)(A) of the Act, the 
Department continues to find it appropriate to base the weighted-
average dumping margin for the Vietnam-wide entity on FA.
    The Department determines that, because the Vietnam-wide entity did 
not respond to our request for information, the Vietnam-wide entity has 
failed to cooperate to the best of its ability. Therefore, pursuant to 
section 776(b) of the Act, the Department finds that, in selecting from 
among the FA, an adverse inference is appropriate for the Vietnam-wide 
entity.
    Because the Department begins with the presumption that all 
companies within an NME country are subject to government control, and 
because only SeAH VINA has overcome that presumption, the Department is 
assigning a single weight-average dumping margin to all other exporters 
of subject merchandise from Vietnam. Such companies have not 
demonstrated their eligibility for a separate rate.\7\
---------------------------------------------------------------------------

    \7\ See, e.g., Notice of Final Determination of Sales at Less 
Than Fair Market Value: Synthetic Indigo From the People's Republic 
of China, 65 FR 25706, 25707 (May 2, 2000).
---------------------------------------------------------------------------

Selection of the Adverse Facts Available Rate for the Vietnam-Wide 
Entity

    In determining a weighted-average dumping margin based on AFA, the 
Department's practice is to select a rate that is sufficiently adverse 
``as to effectuate the purpose of the adverse facts available rule to 
induce respondents to provide the Department with complete and accurate 
information in a timely manner.'' \8\ Further, it is the Department's 
practice to select a rate that ensures ``that the party does not obtain 
a more favorable result by failing to cooperate than if it had 
cooperated fully.'' \9\ Thus, it is the Department's practice to select 
as AFA the higher of the (a) highest dumping margin alleged in the 
petition or (b) the highest calculated rate of any respondent in the 
investigation.\10\ As in the Preliminary Determination, we have 
selected a rate of 111.47 percent for the Vietnam-wide entity, the 
highest dumping margin alleged in the petition, as corrected by the 
petitioners \11\ prior to our initiation of this investigation.\12\
---------------------------------------------------------------------------

    \8\ See Notice of Final Determination of Sales at Less than Fair 
Value: Static Random Access Memory Semiconductors From Taiwan, 63 FR 
8909, 8932 (February 23, 1998).
    \9\ See Brake Rotors from the People's Republic of China: Final 
Results and Partial Rescission of the Seventh Administrative Review; 
Final Results of the Eleventh New Shipper Review, 70 FR 69937, 69939 
(November 18, 2005)(quoting the Statement of Administrative Action 
accompanying the Uruguay Round Agreements Act, H. Doc. No. 316, 103d 
Cong., 2d Session at 870 (1994)).
    \10\ See, e.g., Seamless Refined Copper Pipe and Tube From the 
People's Republic of China: Final Determination of Sales at Less 
Than Fair Value, 75 FR 60725, 60729 (October 1, 2010).
    \11\ The petitioners in this proceeding are U.S. Steel, Maverick 
Tube 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.
    \12\ See Preliminary Determination, 79 FR 10479 and the 
accompanying Preliminary Decision Memorandum at 11 f.
---------------------------------------------------------------------------

    In order to determine the probative value of the dumping margin in 
the petition for use as AFA for purposes of this final determination, 
we compared it to the transaction-specific dumping margins we found for 
the participating mandatory respondent SeAH VINA. We found that the 
rate of 111.47 percent is reliable and relevant because it is within 
the range of SeAH VINA's transaction-specific dumping margins.\13\ 
Accordingly, we find the rate of 111.47 percent is corroborated within 
the meaning of section 776(c) of the Act.
---------------------------------------------------------------------------

    \13\ See SeAH VINA final determination analysis memorandum dated 
July 10, 2014.
---------------------------------------------------------------------------

    The weighted-average dumping margin assigned to the Vietnam-wide 
entity applies to all entries of the merchandise under investigation 
except for entries of merchandise under investigation from the 
exporter/producer combinations listed in the chart in the ``Final 
Determination'' section below.

Final Determination

    The Department determines that the following weighted-average 
dumping margins exist:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
              Exporter                       Producer           dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
SeAH Steel VINA Corporation.........  SeAH Steel VINA              24.22
                                       Corporation.
------------------------------------------------------------------------
                     Vietnam-Wide Entity                          111.47
------------------------------------------------------------------------

Disclosure

    The Department intends to disclose calculations performed for this 
final determination to the parties within five days of the date of 
publication of this notice in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As noted above, the Department found that critical circumstances 
exist with respect to imports of merchandise under consideration from 
the Vietnam-wide entity. In accordance with section 735(c)(1)(B) of the 
Act, the Department will instruct CBP to continue to suspend 
liquidation of all appropriate entries of subject merchandise, as 
described in the ``Scope of Investigation'' section of this notice, 
from the Vietnam-wide entity that were entered, or withdrawn from 
warehouse for consumption on or after the date 90 days prior of the 
publication of the Preliminary Determination in the Federal Register. 
Since critical circumstances do not exist for SeAH VINA, the Department 
will instruct CBP to suspend liquidation of all appropriate entries of 
subject merchandise produced and exported by SeAH VINA that were 
entered, or withdrawn from warehouse for consumption on or after 
February 25, 2014, the publication date of the Preliminary 
Determination in the Federal Register. CBP shall require a cash deposit 
equal to the estimated amount by which the normal value exceeds the 
U.S. price as shown above. These instructions suspending liquidation 
will remain in effect until further notice.

International Trade Commission (ITC) Notification

    In accordance with section 735(d) of the Act, we will notify the 
ITC of our final affirmative determination of sales at LTFV. Because 
the final determination in this proceeding is affirmative, in 
accordance with section 735(b)(2) of the Act, the ITC will make its 
final determination as to whether the domestic industry in the United 
States is materially injured, or threatened with material injury, by 
reason of imports of OCTG from Vietnam no later than 45 days after our 
final determination. If the

[[Page 41976]]

ITC determines that material injury or threat of material injury does 
not exist, the proceeding will be terminated and all securities posted 
will be refunded or canceled. If the ITC determines that such injury 
does exist, the Department will issue an antidumping duty order 
directing CBP to assess antidumping duties on all imports of the 
merchandise under investigation entered, or withdrawn from warehouse, 
for consumption on or after the effective date of the suspension of 
liquidation.

Notification Regarding Administrative Protective Orders

    This notice also serves as a final reminder to the parties subject 
to an administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305. Timely written notification of 
the return or destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and the terms of an APO is a sanctionable violation.

Notification to Interested Parties

    This determination and notice are issued and published in 
accordance with sections 735(d) and 777(i)(1) of the Act.

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

Appendix

Comment 1: Surrogate Value for Domestic Brokerage and Handling
Comment 2: Financial Statements
Comment 3: Surrogate Value for Labor
Comment 4: Surrogate Value for Water
Comment 5: Whether to Exclude ``Limited-Service'' Pipe From the 
Margin Calculation
Comment 6: Differential Pricing
Comment 7: Valuation of Hot-Rolled Coil
Comment 8: Adjusting the Price of SSV's Hot-Rolled Coil To Reflect 
Arm's-Length Transactions
Comment 9: Whether To Revise the Reported Yield Rates
Comment 10: Adding Brokerage and Handling and Port Fees to SSV's 
Market-Economy Purchases of Hot-Rolled Coil
Comment 11: Domestic Inland Insurance
Comment 12: Whether To Revise Further Manufacturing Costs to Include 
Interest Expenses
Comment 13: Import Duties on Varnish

[FR Doc. 2014-16862 Filed 7-17-14; 8:45 am]
BILLING CODE 3510-DS-P
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