Certain Oil Country Tubular Goods From the Republic of Korea: Final Determination of Sales at Less Than Fair Value and Negative Final Determination of Critical Circumstances, 41983-41986 [2014-16874]
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Federal Register / Vol. 79, No. 138 / Friday, July 18, 2014 / Notices
Dated: July 10, 2014.
Ronald K. Lorentzen,
Acting Assistant Secretary, for Enforcement
and Compliance.
exporters when adjusted for export
subsidies is zero percent.6
International Trade Commission
Notification
In accordance with section 735(d) of
the Act, we will notify the International
Trade Commission (ITC) of our final
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.
Notification to Importers
This notice serves as a final reminder
to importers of their responsibility
under 19 CFR 51.402(f)(2) to file a
certificate regarding the reimbursement
of antidumping duties prior to
liquidation of the relevant entries.
Failure to comply with this requirement
could result in the Secretary’s
presumption that reimbursement of
antidumping duties occurred and the
subsequent assessment of double
antidumping duties.
Administrative Protective Orders
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 return/
destruction or 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
sroberts on DSK5SPTVN1PROD with NOTICES
We are issuing and publishing this
determination and notice in accordance
with sections 735(d) and 777(i) of the
Act.
6 Consistent with the Department’s normal
practice, because we calculated the ‘‘All Others
Rate’’ in this investigation by weight-averaging
public data from the two mandatory respondents,
the ‘‘All Others Rate’’ included an export subsidy
rate equal to the average of the CVD export subsidy
rates applicable to the mandatory respondents. See
Utility Scale Wind Towers From the People’s
Republic of China: Preliminary Determination of
Sales at Less Than Fair Value and Postponement
of Final Determination, 77 FR 46034, 46043 (August
2, 2012); see also All-Others Rate Memorandum for
the derivation of the All-Others export subsidies.
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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
List of Topics Discussed in the Issues and
Decision Memorandum
1. Summary
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41983
2. Background
3. Critical Circumstances
4. Scope of the Investigation
5. Margin Calculations
6. Discussion of the Issues
7. Recommendation
[FR Doc. 2014–16868 Filed 7–17–14; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–580–870]
Certain Oil Country Tubular Goods
From the Republic of Korea: 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 of Commerce
(the Department) determines that
imports of oil country tubular goods
from the Republic of Korea are being
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 below in the section
entitled ‘‘Final Determination Margins.’’
DATES: Effective Date: July 18, 2014.
FOR FURTHER INFORMATION CONTACT:
Victoria Cho or Deborah Scott, 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) 482–5075 or (202) 482–
2657.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On February 25, 2014, the Department
published in the Federal Register the
preliminary determination in the LTFV
investigation of OCTG from the
Republic of Korea.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
1 See Certain Oil Country Tubular Goods From
the Republic of Korea: Negative Preliminary
Determination of Sales at Less Than Fair Value,
Negative Preliminary Determination of Critical
Circumstances and Postponement of Final
Determination, 79 FR 10480 (February 25, 2014)
(Preliminary Determination).
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Federal Register / Vol. 79, No. 138 / Friday, July 18, 2014 / Notices
invited parties to comment on our
Preliminary Determination.
The following events occurred since
the Preliminary Determination was
issued. We issued supplemental sales
and cost questionnaires to NEXTEEL Co.
Ltd. (NEXTEEL), NEXTEEL’s Korean
customer and its U.S. subsidiary,
NEXTEEL’s hot-rolled supplier
(POSCO), Hyundai HYSCO (HYSCO),
Hyundai HYSCO USA (HHU) and
HYSCO’s U.S. customer. We received
responses to these supplemental
questionnaires in March and April 2014.
On March 26, 2014, and March 27,
2014, respectively, Husteel Co. Ltd.
(Husteel), Iljin Steel Corporation (Iljin),
NEXTEEL, HYSCO, SeAH Steel
Corporation (SeAH), and the
petitioners 2 requested that the
Department hold a hearing in this
investigation, which was held on June
26, 2014.
Between April 21, 2014, and June 4,
2014, the Department conducted sales
and cost verifications of both
respondents. See ‘‘Verification,’’ infra.
From June 18, 2014 through June 23,
2014, the petitioners, HYSCO,
NEXTEEL, AJU Besteel Co. Ltd. (AJU
Besteel), Husteel, Iljin, and SeAH
submitted case and/or rebuttal briefs.
Period of Investigation
The period of investigation is July 1,
2012, through June 30, 2013.
sroberts on DSK5SPTVN1PROD with NOTICES
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. For a complete
description of the scope of the
investigation, see Appendix I to this
notice.
2 Boomerang Tube, Energex Tube, a division of
JMC Steel Group, Maverick Tube Corporation,
Northwest Pipe Company, Tejas Tubular Products,
TMK IPSCO, United States Steel Corporation,
Vallourec Star, L.P., and Welded Tube USA Inc.
(collectively, the petitioners).
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Jkt 232001
Analysis of Comments Received
All issues raised in the case and
rebuttal briefs by parties in this
investigation are addressed in the Issues
and Decision Memorandum 3 which is
hereby adopted by this notice. A list of
the issues raised is attached to this
notice as Appendix II. 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; the memorandum 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
and electronic versions of the Issues and
Decision Memorandum are identical in
content.
Negative Final Determination of
Critical Circumstances
In the Preliminary Determination, the
Department found that critical
circumstances did not exist for HYSCO
and NEXTEEL nor for all other
producers and exporters, in accordance
with section 733(e)(1) of the Act and 19
CFR 351.206(c)(1).4 Our analysis of the
comments submitted by interested
parties led us to affirm our findings
from the Preliminary Determination. In
accordance with section 735(a)(3) of the
Act, we find that critical circumstances
do not exist with respect to imports
from HYSCO and NEXTEEL, and for all
other producers or exporters of OCTG
from the Republic of Korea.5
Verification
As provided in section 782(i) of the
Act, in April 2014 through June 2014,
we verified the sales and cost
information submitted by NEXTEEL,
NEXTEEL’s Korean customer and its
U.S. subsidiary, NEXTEEL’s hot-rolled
supplier (POSCO), HYSCO, HHU, and
HYSCO’s U.S. customer for use in our
3 See Memorandum to Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and
Compliance, from Christian Marsh, entitled ‘‘Issues
and Decision Memorandum for the Final
Affirmative Determination in the Less than Fair
Value Investigation of Certain Oil Country Tubular
Goods from the Republic of Korea’’ (Issues and
Decision Memorandum), which is dated
concurrently with and hereby adopted by this
notice.
4 See Preliminary Determination, 79 FR 10480,
10481.
5 For a full description of the methodology and
results of our analysis, see the Issues and Decision
Memorandum.
PO 00000
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final determination. We used standard
verification procedures including an
examination of relevant accounting and
production records, and original source
documents provided by NEXTEEL,
NEXTEEL’s Korean customer and its
U.S. subsidiary, NEXTEEL’s hot-rolled
supplier (POSCO), HYSCO, HHU, and
HYSCO’s U.S. customer.
Final Determination
The Department determines that the
following weighted-average dumping
margins exist for the period July 1, 2012,
through June 30, 2013:
Exporter or producer
Hyundai HYSCO .......................
NEXTEEL Co. Ltd ....................
All Others ..................................
Weightedaverage
dumping
margin
(percent)
15.75
9.89
12.82
All Others Rate
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. For the
calculation of the dumping margin for
all other producers and exporters, see
the Memorandum to the File from
Victoria Cho, International Trade
Compliance Analyst, entitled,
‘‘Calculation of the Final Determination
All-Others Rate,’’ dated concurrently
with this notice.
Disclosure
We will disclose to parties in this
proceeding the calculations performed
for this final determination within five
days of the date of publication of this
notice, in accordance with 19 CFR
351.224(b).
Suspension of Liquidation
Pursuant to section 735(c)(1)(B) and
(C) of the Act, the Department will
instruct U.S. Customs and Border
Protection (CBP) to suspend liquidation
of all entries of OCTG from the Republic
of the Korea which were entered, or
withdrawn from warehouse, for
consumption on or after the date of
publication of the final determination.
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 rates for
NEXTEEL and HYSCO will be the rates
we determined in this final
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Federal Register / Vol. 79, No. 138 / Friday, July 18, 2014 / Notices
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
12.82 percent. These suspension of
liquidation instructions will remain in
effect until further notice.
International Trade Commission
Notification
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)(3) of the
Act, the 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. 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 all imports of the
subject merchandise entered, or
withdrawn from warehouse, for
consumption on or after the effective
date of the suspension of liquidation.
Notification to Importers
This notice serves as a final reminder
to importers of their responsibility
under 19 CFR 51.402(f)(2) to file a
certificate regarding the reimbursement
of antidumping duties prior to
liquidation of the relevant entries.
Failure to comply with this requirement
could result in the Secretary’s
presumption that reimbursement of
antidumping duties occurred and the
subsequent assessment of double
antidumping duties.
sroberts on DSK5SPTVN1PROD with NOTICES
Return or Destruction of Proprietary
Information
This notice will serve as a reminder
to parties subject to 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 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
We are issuing and publishing this
determination and notice in accordance
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23:20 Jul 17, 2014
Jkt 232001
with sections 735(d) and 777(i) of the
Act.
Appendix II
Dated: July 10, 2014.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement
and Compliance.
41985
Case Issues:
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.
PO 00000
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List of Topics Discussed in the Issues and
Decision Memorandum
General Issues
Comment 1: Constructed Value Profit
Comment 2: The Department Should Base Its
Final Determination on an Objective
Assessment of the Facts and Law
Comment 3: Whether to Reject Certain
Submissions Containing New Factual
Information
Comment 4: Denial of Offsets for NonDumped Sales With the Average-toTransaction Method
Comment 5: Application of the Average-toTransaction Method to All U.S. Sales
Comment 6: Differential Pricing Analysis:
Thresholds for the Results of the Ratio Test
Comment 7: Differential Pricing Analysis:
Calculations of the Ratio Test
Issues Pertaining to HYSCO
Comment 8: Basis for U.S. Price
Comment 9: HYSCO’s International Freight
Expenses
Comment 10: Application of Total or Partial
Adverse Facts Available to HYSCO’s
Reported Costs
Comment 11: HYSCO’s Domestic Inland
Freight Expenses
Comment 12: Raw Material Transportation
Costs Provided by HYSCO’s Affiliate
Comment 13: Rental Fees Paid to HYSCO’s
Affiliate
Comment 14: HYSCO’s Packing Expenses
Comment 15: Whether to Reject One of
HHU’s Minor Corrections
Comment 16: Whether to Allocate HHU’s
Property Taxes to OCTG Sales or Sales of
All Products
Comment 17: HYSCO’s Warranty Expenses
Comment 18: Treatment of HYSCO’s NonPrime Merchandise
Comment 19: Adjustments to HYSCO’s
General and Administrative Expenses
Issues Pertaining to NEXTEEL
Comment 20: Affiliation and Application of
the Major Input Rule
Comment 21: Propriety of Use of Adverse
Facts Available for NEXTEEL
Comment 22: NEXTEEL’s Warranty Expenses
Comment 23: NEXTEEL’s Warehousing
Expenses
Comment 24: NEXTEEL’s Direct Sales to U.S.
Customers
Comment 25: Alleged Middleman Dumping
Comment 26: Date of Sale
Comment 27: The Department Should Apply
AFA to NEXTEEL’s Direct Material Costs
Comment 28: The Department Should Adjust
NEXTEEL’s Reported Data to Correct for
the Unreconciled Difference
Comment 29: The Department Should
Exclude the Transferred Quantity of OCTG
from NEXTEEL’s Cost File
Comment 30: The Department Should
Increase NEXTEEL’s TOTCOM for Costs
Related to Test Production
Comment 31: The Department Should
Increase NEXTEEL’s TOTCOM for
Expenses Incurred by NEXTEEL’s WhollyOwned Subsidiary NEXTEEL QNT
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Comment 32: The Department Should Rely
on Facts Available for NEXTEEL’s Heat
Treatment Costs
Comment 33: The Department Erred in
Adjusting NEXTEEL’s Reported Costs for
Apparent Minor Differences in Scrap Value
Comment 34: The Department Should Accept
NEXTEEL’s Reported General and
Administrative Expense Ratio Without
Adjustment
Comment 35: Miscellaneous Comments on
the Department’s Cost Verification Report
Issues Pertaining to Non-Selected
Respondents
Comment 36: Respondent Selection and
Basis for the Weighted-Average Dumping
Margin Assigned to Non-Selected
Respondents
Comment 37: Critical Circumstances
Comment 38: Incorporating Arguments by
Reference
[FR Doc. 2014–16874 Filed 7–17–14; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–517–804]
Certain Oil Country Tubular Goods
From Saudi Arabia: Final
Determination of Sales at Less Than
Fair Value
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) determines that
imports of oil country tubular goods
(OCTG) from Saudi Arabia are being, or
likely to be, sold in the United States at
less than fair value, as provided in
section 735 of the Tariff Act of 1930, as
amended (the Act). The final weightedaverage dumping margins are listed
below in the section entitled ‘‘Final
Determination Margins.’’
DATES: Effective Date: July 18, 2014.
FOR FURTHER INFORMATION CONTACT:
Jason Rhoads, AD/CVD Operations,
Office VII, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue NW., Washington, DC 20230;
telephone: (202) 482–0123.
SUPPLEMENTARY INFORMATION:
AGENCY:
sroberts on DSK5SPTVN1PROD with NOTICES
Background
On February 25, 2014, the Department
published the Preliminary
Determination in the Federal Register.1
1 See Certain Oil Country Tubular Goods From
Saudi Arabia: Preliminary Determination of Sales at
Less Than Fair Value, and Postponement of Final
Determination, 79 FR 10489 (February 25, 2014)
(Preliminary Determination).
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23:20 Jul 17, 2014
Jkt 232001
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
the respondent. On June 12, 2014, 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 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. For a complete
description of the scope of the
investigation, see Appendix I to this
notice.
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 at https://enforcement.trade.gov/
frn/. The signed and electronic versions
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 made certain changes to
the margin calculations. For a
discussion of these changes, see the
‘‘Margin Calculations’’ section of the
Issues and Decision Memorandum.
Verification
As provided in section 782(i) of the
Act, in March and April, 2014, we
verified the sales and cost information
submitted by JESCO for use in our final
determination. We used standard
verification procedures including an
examination of relevant accounting and
production records, and original source
documents provided by JESCO.4
Final Determination Margins
The weighted-average dumping
margins are as follows:
Exporter or producer
Jubail Energy Services Company ......................................
All Others ..................................
Weightedaverage
dumping
margin
(percent)
2.69
2.69
Analysis of Comments Received
All issues raised in the case and
rebuttal briefs by parties in this
investigation are addressed in the Issues
and Decision Memorandum 3 which is
hereby adopted by this notice. A list of
the issues raised is attached to this
notice as Appendix II. 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
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 weighted-average
dumping margins calculated for the
producers or exporters individually
examined, excluding rates that are zero,
de minimis or determined entirely
under section 776 of the Act. Because
we calculated a weighted-average
dumping margin for only one of the
mandatory respondents (JESCO) that
2 Boomerang Tube, Energex Tube, a division of
JMC Steel Group, Northwest Pipe Company, Tejas
Tubular Products, TMK IPSCO, and Welded Tube
USA Inc. (collectively, the petitioners).
3 See Memorandum to Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and
Compliance, ‘‘Issues and Decision Memorandum for
the Final Affirmative Determination in the Less
than Fair Value Investigation of Certain Oil Country
Tubular Goods from Saudi Arabia’’ (Issues and
Decision Memorandum), which is dated
concurrently with and hereby adopted by this
notice.
4 See the memoranda, ‘‘Verification of the Sales
Response of Duferco Steel Inc. in the Antidumping
Duty Investigation of Oil Country Tubular Goods
(OCTG) from the Kingdom of Saudi Arabia,’’ May
16, 2014; ‘‘Verification of the Sales Response of
Jubail Energy Services Company (JESCO) in the
Antidumping Duty Investigation of Oil Country
Tubular Goods (OCTG) from the Kingdom of Saudi
Arabia,’’ May 16, 2014; and ‘‘Verification of the
Cost Response of Jubail Energy Services Company
(JESCO) in the Antidumping Duty Investigation of
Oil Country Tubular Goods from Saudi Arabia,’’
May 6, 2014.
PO 00000
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]]>Agencies
[Federal Register Volume 79, Number 138 (Friday, July 18, 2014)]
[Notices]
[Pages 41983-41986]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-16874]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-870]
Certain Oil Country Tubular Goods From the Republic of Korea:
Final Determination of Sales at Less Than Fair Value and Negative Final
Determination of Critical Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that
imports of oil country tubular goods from the Republic of Korea are
being 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
listed below in the section entitled ``Final Determination Margins.''
DATES: Effective Date: July 18, 2014.
FOR FURTHER INFORMATION CONTACT: Victoria Cho or Deborah Scott, 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-
5075 or (202) 482-2657.
SUPPLEMENTARY INFORMATION:
Background
On February 25, 2014, the Department published in the Federal
Register the preliminary determination in the LTFV investigation of
OCTG from the Republic of Korea.\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
[[Page 41984]]
invited parties to comment on our Preliminary Determination.
---------------------------------------------------------------------------
\1\ See Certain Oil Country Tubular Goods From the Republic of
Korea: Negative Preliminary Determination of Sales at Less Than Fair
Value, Negative Preliminary Determination of Critical Circumstances
and Postponement of Final Determination, 79 FR 10480 (February 25,
2014) (Preliminary Determination).
---------------------------------------------------------------------------
The following events occurred since the Preliminary Determination
was issued. We issued supplemental sales and cost questionnaires to
NEXTEEL Co. Ltd. (NEXTEEL), NEXTEEL's Korean customer and its U.S.
subsidiary, NEXTEEL's hot-rolled supplier (POSCO), Hyundai HYSCO
(HYSCO), Hyundai HYSCO USA (HHU) and HYSCO's U.S. customer. We received
responses to these supplemental questionnaires in March and April 2014.
On March 26, 2014, and March 27, 2014, respectively, Husteel Co.
Ltd. (Husteel), Iljin Steel Corporation (Iljin), NEXTEEL, HYSCO, SeAH
Steel Corporation (SeAH), and the petitioners \2\ requested that the
Department hold a hearing in this investigation, which was held on June
26, 2014.
---------------------------------------------------------------------------
\2\ Boomerang Tube, Energex Tube, a division of JMC Steel Group,
Maverick Tube Corporation, Northwest Pipe Company, Tejas Tubular
Products, TMK IPSCO, United States Steel Corporation, Vallourec
Star, L.P., and Welded Tube USA Inc. (collectively, the
petitioners).
---------------------------------------------------------------------------
Between April 21, 2014, and June 4, 2014, the Department conducted
sales and cost verifications of both respondents. See ``Verification,''
infra. From June 18, 2014 through June 23, 2014, the petitioners,
HYSCO, NEXTEEL, AJU Besteel Co. Ltd. (AJU Besteel), Husteel, Iljin, and
SeAH submitted case and/or rebuttal briefs.
Period of Investigation
The period of investigation is July 1, 2012, 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. For a complete
description of the scope of the investigation, see Appendix I to this
notice.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties in
this investigation are addressed in the Issues and Decision Memorandum
\3\ which is hereby adopted by this notice. A list of the issues raised
is attached to this notice as Appendix II. 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; the
memorandum 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 and
electronic versions of the Issues and Decision Memorandum are identical
in content.
---------------------------------------------------------------------------
\3\ See Memorandum to Ronald K. Lorentzen, Acting Assistant
Secretary for Enforcement and Compliance, from Christian Marsh,
entitled ``Issues and Decision Memorandum for the Final Affirmative
Determination in the Less than Fair Value Investigation of Certain
Oil Country Tubular Goods from the Republic of Korea'' (Issues and
Decision Memorandum), which is dated concurrently with and hereby
adopted by this notice.
---------------------------------------------------------------------------
Negative Final Determination of Critical Circumstances
In the Preliminary Determination, the Department found that
critical circumstances did not exist for HYSCO and NEXTEEL nor for all
other producers and exporters, in accordance with section 733(e)(1) of
the Act and 19 CFR 351.206(c)(1).\4\ Our analysis of the comments
submitted by interested parties led us to affirm our findings from the
Preliminary Determination. In accordance with section 735(a)(3) of the
Act, we find that critical circumstances do not exist with respect to
imports from HYSCO and NEXTEEL, and for all other producers or
exporters of OCTG from the Republic of Korea.\5\
---------------------------------------------------------------------------
\4\ See Preliminary Determination, 79 FR 10480, 10481.
\5\ For a full description of the methodology and results of our
analysis, see the Issues and Decision Memorandum.
---------------------------------------------------------------------------
Verification
As provided in section 782(i) of the Act, in April 2014 through
June 2014, we verified the sales and cost information submitted by
NEXTEEL, NEXTEEL's Korean customer and its U.S. subsidiary, NEXTEEL's
hot-rolled supplier (POSCO), HYSCO, HHU, and HYSCO's U.S. customer for
use in our final determination. We used standard verification
procedures including an examination of relevant accounting and
production records, and original source documents provided by NEXTEEL,
NEXTEEL's Korean customer and its U.S. subsidiary, NEXTEEL's hot-rolled
supplier (POSCO), HYSCO, HHU, and HYSCO's U.S. customer.
Final Determination
The Department determines that the following weighted-average
dumping margins exist for the period July 1, 2012, through June 30,
2013:
------------------------------------------------------------------------
Weighted-
average
Exporter or producer dumping
margin
(percent)
------------------------------------------------------------------------
Hyundai HYSCO.............................................. 15.75
NEXTEEL Co. Ltd............................................ 9.89
All Others................................................. 12.82
------------------------------------------------------------------------
All Others Rate
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. For the calculation of the dumping margin for all other
producers and exporters, see the Memorandum to the File from Victoria
Cho, International Trade Compliance Analyst, entitled, ``Calculation of
the Final Determination All-Others Rate,'' dated concurrently with this
notice.
Disclosure
We will disclose to parties in this proceeding the calculations
performed for this final determination within five days of the date of
publication of this notice, in accordance with 19 CFR 351.224(b).
Suspension of Liquidation
Pursuant to section 735(c)(1)(B) and (C) of the Act, the Department
will instruct U.S. Customs and Border Protection (CBP) to suspend
liquidation of all entries of OCTG from the Republic of the Korea which
were entered, or withdrawn from warehouse, for consumption on or after
the date of publication of the final determination. 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 rates for
NEXTEEL and HYSCO will be the rates we determined in this final
[[Page 41985]]
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 12.82 percent. These
suspension of liquidation instructions will remain in effect until
further notice.
International Trade Commission Notification
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)(3) of the Act, the 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. 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 all imports of the
subject merchandise entered, or withdrawn from warehouse, for
consumption on or after the effective date of the suspension of
liquidation.
Notification to Importers
This notice serves as a final reminder to importers of their
responsibility under 19 CFR 51.402(f)(2) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries. Failure to comply with this requirement could
result in the Secretary's presumption that reimbursement of antidumping
duties occurred and the subsequent assessment of double antidumping
duties.
Return or Destruction of Proprietary Information
This notice will serve as a reminder to parties subject to
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 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
We are issuing and publishing this determination and notice in
accordance with sections 735(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
List of Topics Discussed in the Issues and Decision Memorandum
Case Issues:
General Issues
Comment 1: Constructed Value Profit
Comment 2: The Department Should Base Its Final Determination on an
Objective Assessment of the Facts and Law
Comment 3: Whether to Reject Certain Submissions Containing New
Factual Information
Comment 4: Denial of Offsets for Non-Dumped Sales With the Average-
to-Transaction Method
Comment 5: Application of the Average-to-Transaction Method to All
U.S. Sales
Comment 6: Differential Pricing Analysis: Thresholds for the Results
of the Ratio Test
Comment 7: Differential Pricing Analysis: Calculations of the Ratio
Test
Issues Pertaining to HYSCO
Comment 8: Basis for U.S. Price
Comment 9: HYSCO's International Freight Expenses
Comment 10: Application of Total or Partial Adverse Facts Available
to HYSCO's Reported Costs
Comment 11: HYSCO's Domestic Inland Freight Expenses
Comment 12: Raw Material Transportation Costs Provided by HYSCO's
Affiliate
Comment 13: Rental Fees Paid to HYSCO's Affiliate
Comment 14: HYSCO's Packing Expenses
Comment 15: Whether to Reject One of HHU's Minor Corrections
Comment 16: Whether to Allocate HHU's Property Taxes to OCTG Sales
or Sales of All Products
Comment 17: HYSCO's Warranty Expenses
Comment 18: Treatment of HYSCO's Non-Prime Merchandise
Comment 19: Adjustments to HYSCO's General and Administrative
Expenses
Issues Pertaining to NEXTEEL
Comment 20: Affiliation and Application of the Major Input Rule
Comment 21: Propriety of Use of Adverse Facts Available for NEXTEEL
Comment 22: NEXTEEL's Warranty Expenses
Comment 23: NEXTEEL's Warehousing Expenses
Comment 24: NEXTEEL's Direct Sales to U.S. Customers
Comment 25: Alleged Middleman Dumping
Comment 26: Date of Sale
Comment 27: The Department Should Apply AFA to NEXTEEL's Direct
Material Costs
Comment 28: The Department Should Adjust NEXTEEL's Reported Data to
Correct for the Unreconciled Difference
Comment 29: The Department Should Exclude the Transferred Quantity
of OCTG from NEXTEEL's Cost File
Comment 30: The Department Should Increase NEXTEEL's TOTCOM for
Costs Related to Test Production
Comment 31: The Department Should Increase NEXTEEL's TOTCOM for
Expenses Incurred by NEXTEEL's Wholly-Owned Subsidiary NEXTEEL QNT
[[Page 41986]]
Comment 32: The Department Should Rely on Facts Available for
NEXTEEL's Heat Treatment Costs
Comment 33: The Department Erred in Adjusting NEXTEEL's Reported
Costs for Apparent Minor Differences in Scrap Value
Comment 34: The Department Should Accept NEXTEEL's Reported General
and Administrative Expense Ratio Without Adjustment
Comment 35: Miscellaneous Comments on the Department's Cost
Verification Report
Issues Pertaining to Non-Selected Respondents
Comment 36: Respondent Selection and Basis for the Weighted-Average
Dumping Margin Assigned to Non-Selected Respondents
Comment 37: Critical Circumstances
Comment 38: Incorporating Arguments by Reference
[FR Doc. 2014-16874 Filed 7-17-14; 8:45 am]
BILLING CODE 3510-DS-P
