Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, 44562-44564 [2017-20413]

Download as PDF 44562 Federal Register / Vol. 82, No. 184 / Monday, September 25, 2017 / Notices information disclosed under the APO, which continues to govern business proprietary information in this segment of the proceeding. 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 terms of an APO is a violation subject to sanction. Notification to Interested Parties We intend to issue and publish these results in accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.213(h) and 351.221(b)(5). Dated: September 19, 2017. Gary Taverman, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance. [FR Doc. 2017–20401 Filed 9–22–17; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–059] Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel From the People’s Republic of China: Preliminary Affirmative Countervailing Duty Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the Department) preliminarily determines that countervailable subsidies are being provided to producers and exporters of certain colddrawn mechanical tubing of carbon and alloy steel (cold-drawn mechanical tubing) from the People’s Republic of China (PRC). The period of investigation is January 1, 2016, through December 31, 2016. DATES: Applied September 25, 2017. FOR FURTHER INFORMATION CONTACT: Shanah Lee at (202) 482–6386 or Laurel LaCivita at (202) 482–4243, AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230. SUPPLEMENTARY INFORMATION: asabaliauskas on DSKBBXCHB2PROD with NOTICES AGENCY: Background This preliminary determination is made in accordance with section 703(b) of the Tariff Act of 1930, as amended (the Act). The Department published the VerDate Sep<11>2014 19:45 Sep 22, 2017 Jkt 241001 notice of initiation of this investigation on May 16, 2017.1 On June 23, 2017, the Department postponed the preliminary determination of this investigation and the revised deadline is now September 18, 2017.2 For a complete description of the events that followed the initiation of this investigation, see the Preliminary Decision Memorandum.3 A list of topics discussed in the Preliminary Decision Memorandum is included as Appendix II to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https:// access.trade.gov, and is available to all parties in the Central Records Unit, room B8024 of the main Department of Commerce building. In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at https://enforcement.trade.gov/ frn/. The signed and electronic versions of the Preliminary Decision Memorandum are identical in content. Scope of the Investigation The product covered by this investigation is cold-drawn mechanical tubing from the PRC. For a complete description of the scope of this investigation, see Appendix I. Scope Comments In accordance with the preamble to the Department’s regulations,4 the Initiation Notice set aside a period of time for parties to raise issues regarding product coverage, (i.e., scope).5 Certain interested parties commented on the scope of the investigation as it appeared in the Initiation Notice, as well as additional language proposed by the Department. The Department intends to issue its preliminary decision regarding comments concerning the scope of the antidumping duty (AD) and 1 See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from India and the People’s Republic of China: Initiation of Countervailing Duty Investigations, 82 FR 22486 (May 16, 2017) (Initiation Notice). 2 See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from India and the People’s Republic of China: Postponement of Preliminary Determinations of Countervailing Duty Investigations, 82 FR 28641 (June 23, 2017). 3 See Memorandum, ‘‘Decision Memorandum for the Preliminary Affirmative Determination: Countervailing Duty Investigation of Certain ColdDrawn Mechanical Tubing of Carbon and Alloy Steel from the People’s Republic of China,’’ dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). 4 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997). 5 See Initiation Notice, 82 FR at 22486, 22487. PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 countervailing duty (CVD) investigations in the preliminary determination of the companion AD investigation. Methodology The Department is conducting this investigation in accordance with section 701 of the Act. For each of the subsidy programs found countervailable, the Department preliminarily determines that there is a subsidy, i.e., a financial contribution by an ‘‘authority’’ that gives rise to a benefit to the recipient, and that the subsidy is specific.6 The Department notes that in making these findings, it relied, in part, on facts available and, because it finds that one or more respondents did not act to the best of their ability to respond to the Department’s requests for information, it drew an adverse inference where appropriate in selecting from among the facts otherwise available.7 For further information, see ‘‘Use of Facts Otherwise Available and Adverse Inferences’’ in the Preliminary Decision Memorandum. All-Others Rate Sections 703(d) and 705(c)(5)(A) of the Act provide that in the preliminary determination, the Department shall determine an estimated all-others rate for companies not individually examined. This rate shall be an amount equal to the weighted average of the estimated subsidy rates established for those companies individually examined, excluding any zero and de minimis rates and any rates based entirely under section 776 of the Act. In this investigation, the Department calculated individual estimated countervailable subsidy rates for Jiangsu Hongyi Steel Pipe Co., Ltd. (Hongyi) and Zhangjiagang Huacheng Import & Export Co., Ltd. (Huacheng I&E) that are not zero, de minimis, or based entirely on facts otherwise available. The Department calculated the all-others’’ rate using a simple average of the individual estimated subsidy rates calculated for the examined respondents.8 6 See sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity. 7 See sections 776(a) and (b) of the Act. 8 With two respondents under examination, the Department normally calculates (A) a weightedaverage of the estimated subsidy rates calculated for the examined respondents; (B) a simple average of the estimated subsidy rates calculated for the examined respondents; and (C) a weighted-average of the estimated subsidy rates calculated for the examined respondents using each company’s publicly-ranged values for the merchandise under consideration. The Department then compares (B) and (C) to (A) and selects the rate closest to (A) as E:\FR\FM\25SEN1.SGM 25SEN1 Federal Register / Vol. 82, No. 184 / Monday, September 25, 2017 / Notices Preliminary Determination The Department preliminarily determines that the following estimated countervailable subsidy rates exist: the information relied upon in making its final determination. Public Comment Case briefs or other written comments may be submitted to the Assistant Company Secretary for Enforcement and Compliance no later than seven days after the date on which the last Jiangsu Hongyi Steel Pipe Co., 35.69 verification report is issued in this Ltd 9 ........................................... Zhangjiagang Huacheng Import & investigation. Rebuttal briefs, limited to Export Co., Ltd 10 ...................... 33.31 issues raised in case briefs, may be All-Others ...................................... 34.5 submitted no later than five days after the deadline date for case briefs.11 Pursuant to 19 CFR 351.309(c)(2) and Suspension of Liquidation (d)(2), parties who submit case briefs or In accordance with section rebuttal briefs in this investigation are 703(d)(1)(B) and (d)(2) of the Act, the encouraged to submit with each Department will direct U.S. Customs argument: (1) A statement of the issue; and Border Protection (CBP) to suspend (2) a brief summary of the argument; liquidation of entries of subject and (3) a table of authorities. merchandise as described in the scope Pursuant to 19 CFR 351.310(c), of the investigation section entered, or interested parties who wish to request a withdrawn from warehouse, for hearing, limited to issues raised in the consumption on or after the date of publication of this notice in the Federal case and rebuttal briefs, must submit a written request to the Assistant Register. Further, pursuant to 19 CFR 351.205(d), the Department will instruct Secretary for Enforcement and Compliance, U.S. Department of CBP to require a cash deposit equal to Commerce, within 30 days after the date the rates indicated above. of publication of this notice. Requests Disclosure should contain the party’s name, The Department intends to disclose address, and telephone number, the its calculations and analysis performed number of participants, and a list of the to interested parties in this preliminary issues to be discussed. If a request for determination within five days of its a hearing is made, the Department public announcement, or if there is no intends to hold the hearing at the U.S. public announcement, within five days Department of Commerce, 1401 of the date of this notice in accordance Constitution Avenue NW., Washington, with 19 CFR 351.224(b). DC 20230, at a time and date to be determined. Parties should confirm by Verification As provided in section 782(i)(1) of the telephone the date, time, and location of the hearing two days before the Act, the Department intends to verify scheduled date. asabaliauskas on DSKBBXCHB2PROD with NOTICES Subsidy rate (%) the most appropriate rate for all other producers and exporters. See, e.g., Ball Bearings and Parts Thereof from France, Germany, Italy, Japan, and the United Kingdom: Final Results of Antidumping Duty Administrative Reviews, Final Results of Changed-Circumstances Review, and Revocation of an Order in Part, 75 FR 53661, 53663 (September 1, 2010). As complete publicly ranged sales data was available, the Department based the all-others rate on the publicly ranged sales data of the mandatory respondents. For a complete analysis of the data, please see the All-Others’’ Rate Calculation Memorandum. 9 As discussed in the Preliminary Decision Memorandum, the Department finds the following companies to be cross-owned with Hongyi: Jiangsu Hongren Precision Pipe Manufacturing Co., Ltd. and Changzhou Kemeng Mechanical Equipment Co., Ltd. 10 As discussed in the Preliminary Decision Memorandum, the Department finds the following companies to be cross-owned with Huacheng I&E: Zhangjiagang Huacheng Industry Pipe Making Corporation, Zhangjiagang Salem Fine Tubing Co., Ltd., Zhangjiagang Huacheng Investment Holding Co., Ltd., Zhangjiagang HZB Special Material Technology Co., Ltd. and Zhangjiagang Huacheng Special Materials Corporation. VerDate Sep<11>2014 19:45 Sep 22, 2017 Jkt 241001 International Trade Commission Notification In accordance with section 703(f) of the Act, the Department will notify the International Trade Commission (ITC) of its determination. If the final determination is affirmative, the ITC will determine before the later of 120 days after the date of this preliminary determination or 45 days after the final determination. Notification to Interested Parties This determination is issued and published pursuant to sections 703(f) and 777(i) of the Act and 19 CFR 351.205(c). 11 See 19 CFR 351.309; see also 19 CFR 351.303 (for general filing requirements). PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 44563 Dated: September 18, 2017. Gary Taverman, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations performing the non-exclusive duties of the Assistant Secretary for Enforcement and Compliance. Appendix I Scope of the Investigation The scope of this investigation covers colddrawn mechanical tubing of carbon and alloy steel (cold-drawn mechanical tubing) of circular cross-section, in actual outside diameters less than 331 mm, and regardless of wall thickness, surface finish, end finish or industry specification. The subject colddrawn mechanical tubing is a tubular product with a circular cross-sectional shape that has been cold-drawn or otherwise coldfinished after the initial tube formation in a manner that involves a change in the diameter or wall thickness of the tubing, or both. The subject cold-drawn mechanical tubing may be produced from either welded (e.g., electric resistance welded, continuous welded, etc.) or seamless (e.g. , pierced, pilgered or extruded, etc.) carbon or alloy steel tubular products. It may also be heat treated after cold working. Such heat treatments may include, but are not limited to, annealing, normalizing, quenching and tempering, stress relieving or finish annealing. Typical cold-drawing methods for subject merchandise include, but are not limited to, drawing over mandrel, rod drawing, plug drawing, sink drawing and similar processes that involve reducing the outside diameter of the tubing with a die or similar device, whether or not controlling the inside diameter of the tubing with an internal support device such as a mandrel, rod, plug or similar device. Subject cold-drawn mechanical tubing is typically certified to meet industry specifications for cold-drawn tubing including but not limited to: (1) American Society for Testing and Materials (ASTM) or American Society of Mechanical Engineers (ASME) specifications ASTM A–512, ASTM A–513 Type 3 (ASME SA513 Type 3), ASTM A–513 Type 4 (ASME SA513 Type 4), ASTM A–513 Type 5 (ASME SA513 Type 5), ASTM A–513 Type 6 (ASME SA513 Type 6), ASTM A–519 (cold-finished); (2) SAE International (Society of Automotive Engineers) specifications SAE J524, SAE J525, SAE J2833, SAE J2614, SAE J2467, SAE J2435, SAE J2613; (3) Aerospace Material Specification (AMS) AMS T–6736 (AMS 6736), AMS 6371, AMS 5050, AMS 5075, AMS 5062, AMS 6360, AMS 6361, AMS 6362, AMS 6371, AMS 6372, AMS 6374, AMS 6381, AMS 6415; (4) United States Military Standards (MIL) MIL–T–5066 and MIL–T–6736; (5) foreign standards equivalent to one of the previously listed ASTM, ASME, SAE, AMS or MIL specifications including but not limited to: (a) German Institute for Standardization (DIN) specifications DIN 2391–2, DIN 2393– 2, DIN 2394–2); (b) European Standards (EN) EN 10305–1, EN 10305–2, EN 10305–4, EN 10305–6 and E:\FR\FM\25SEN1.SGM 25SEN1 asabaliauskas on DSKBBXCHB2PROD with NOTICES 44564 Federal Register / Vol. 82, No. 184 / Monday, September 25, 2017 / Notices European national variations on those standards (e.g., British Standard (BS EN), Irish Standard (IS EN) and German Standard (DIN EN) variations, etc.); (c) Japanese Industrial Standard (JIS) JIS G 3441 and JIS G 3445; and (6) proprietary standards that are based on one of the above-listed standards. The subject cold-drawn mechanical tubing may also be dual or multiple certified to more than one standard. Pipe that is multiple certified as cold-drawn mechanical tubing and to other specifications not covered by this scope, is also covered by the scope of this investigation when it meets the physical description set forth above. Steel products included in the scope of this investigation are products in which: (1) Iron predominates, by weight, over each of the other contained elements; and (2) the carbon content is 2 percent or less by weight. For purposes of this scope, the place of cold-drawing determines the country of origin of the subject merchandise. Subject merchandise that is subject to minor working in a third country that occurs after drawing in one of the subject countries including, but not limited to, heat treatment, cutting to length, straightening, nondestruction testing, deburring or chamfering, remains within the scope of the investigation. All products that meet the written physical description are within the scope of this investigation unless specifically excluded or covered by the scope of an existing order. Merchandise that meets the physical description of cold-drawn mechanical tubing above is within the scope of the investigation even if it is also dual or multiple certified to an otherwise excluded specification listed below. The following products are outside of, and/or specifically excluded from, the scope of this investigation: (1) Cold-drawn stainless steel tubing, containing 10.5 percent or more of chromium by weight and not more than 1.2 percent of carbon by weight; (2) products certified to one or more of the ASTM, ASME or American Petroleum Institute (API) specifications listed below: • ASTM A–53; • ASTM A–106; • ASTM A–179 (ASME SA 179); • ASTM A–192 (ASME SA 192); • ASTM A–209 (ASME SA 209); • ASTM A–210 (ASME SA 210); • ASTM A–213 (ASME SA 213); • ASTM A–334 (ASME SA 334); • ASTM A–423 (ASME SA 423); • ASTM A–498; • ASTM A–496 (ASME SA 496); • ASTM A–199; • ASTM A–500; • ASTM A–556; • ASTM A–565; • API 5L; and • API 5CT except that any cold-drawn tubing product certified to one of the above excluded specifications will not be excluded from the scope if it is also dual-or multiple-certified to any other specification that otherwise would fall within the scope of this investigation. The products subject to the investigation are currently classified in the Harmonized VerDate Sep<11>2014 20:52 Sep 22, 2017 Jkt 241001 Tariff Schedule of the United States (HTSUS) under item numbers: 7304.31.3000, 7304.31.6050, 7304.51.1000, 7304.51.5005, 7304.51.5060, 7306.30.5015, 7306.30.5020, 7306.50.5030. Subject merchandise may also enter under numbers 7306.30.1000 and 7306.50.1000. 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 Preliminary Decision Memorandum I. Summary II. Background III. Scope Comments IV. Scope of the Investigation V. Injury Test VI. Application of the CVD Law to Imports from the PRC VII. Subsidies Valuation VIII. Benchmarks and Interest Rates IX. Use of Facts Otherwise Available and Adverse Inferences X. Analysis of Programs XI. ITC Notification XII. Disclosure and Public Comment XIII. Verification XIV. Conclusion [FR Doc. 2017–20413 Filed 9–22–17; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration Advisory Committee on Supply Chain Competitiveness; Notice of Public Meetings International Trade Administration, U.S. Department of Commerce. ACTION: Notice of open meetings. AGENCY: This notice sets forth the schedule and proposed topics of discussion for public meetings of the Advisory Committee on Supply Chain Competitiveness (Committee). DATES: The meetings will be held on October 18, 2017, from 12:00 p.m. to 3:00 p.m., and October 19, 2017, from 9:00 a.m. to 4:00 p.m., Eastern Standard Time (EST). ADDRESSES: The meetings on October 18 and 19 will be held at the U.S. Department of Commerce, 1401 Constitution Avenue NW., Research Library (Room 1894), Washington, DC 20230. FOR FURTHER INFORMATION CONTACT: Richard Boll, Office of Supply Chain, Professional & Business Services (OSCPBS), International Trade Administration. (Phone: (202) 482–1135 or Email: richard.boll@trade.gov. SUPPLEMENTARY INFORMATION: SUMMARY: PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 Background: The Committee was established under the discretionary authority of the Secretary of Commerce and in accordance with the Federal Advisory Committee Act (5 U.S.C. App.). It provides advice to the Secretary of Commerce on the necessary elements of a comprehensive policy approach to supply chain competitiveness designed to support U.S. export growth and national economic competitiveness, encourage innovation, facilitate the movement of goods, and improve the competitiveness of U.S. supply chains for goods and services in the domestic and global economy; and provides advice to the Secretary on regulatory policies and programs and investment priorities that affect the competitiveness of U.S. supply chains. For more information about the Committee visit: https:// trade.gov/td/services/oscpb/ supplychain/acscc/. Matters to Be Considered: Committee members are expected to continue to discuss the major competitivenessrelated topics raised at the previous Committee meetings, including trade and competitiveness; freight movement and policy; trade innovation; regulatory issues; finance and infrastructure; and workforce development. The Committee’s subcommittees will report on the status of their work regarding these topics. The agenda may change to accommodate other Committee business. The Office of Supply Chain, Professional & Business Services will post the final detailed agendas on its Web site, https://trade.gov/td/services/ oscpb/supplychain/acscc/, at least one week prior to the meeting. The meetings will be open to the public and press on a first-come, firstserved basis. Space is limited. The public meetings are physically accessible to people with disabilities. Individuals requiring accommodations, such as sign language interpretation or other ancillary aids, are asked to notify Mr. Richard Boll, at (202) 482–1135 or richard.boll@trade.gov five (5) business days before the meeting. Interested parties are invited to submit written comments to the Committee at any time before and after the meeting. Parties wishing to submit written comments for consideration by the Committee in advance of this meeting must send them to the Office of Supply Chain, Professional & Business Services, 1401 Constitution Ave. NW., Room 11014, Washington, DC 20230, or email to richard.boll@trade.gov. For consideration during the meetings, and to ensure transmission to the Committee prior to the meetings, comments must be received no later E:\FR\FM\25SEN1.SGM 25SEN1

Agencies

[Federal Register Volume 82, Number 184 (Monday, September 25, 2017)]
[Notices]
[Pages 44562-44564]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-20413]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-059]


Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel 
From the People's Republic of China: Preliminary Affirmative 
Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of certain cold-drawn mechanical tubing of 
carbon and alloy steel (cold-drawn mechanical tubing) from the People's 
Republic of China (PRC). The period of investigation is January 1, 
2016, through December 31, 2016.

DATES: Applied September 25, 2017.

FOR FURTHER INFORMATION CONTACT: Shanah Lee at (202) 482-6386 or Laurel 
LaCivita at (202) 482-4243, AD/CVD Operations, Enforcement and 
Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). The Department 
published the notice of initiation of this investigation on May 16, 
2017.\1\ On June 23, 2017, the Department postponed the preliminary 
determination of this investigation and the revised deadline is now 
September 18, 2017.\2\ For a complete description of the events that 
followed the initiation of this investigation, see the Preliminary 
Decision Memorandum.\3\ A list of topics discussed in the Preliminary 
Decision Memorandum is included as Appendix II to this notice. The 
Preliminary Decision Memorandum is a public document and is on file 
electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (ACCESS). 
ACCESS is available to registered users at https://access.trade.gov, and 
is available to all parties in the Central Records Unit, room B8024 of 
the main Department of Commerce building. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at https://enforcement.trade.gov/frn/. The signed and electronic 
versions of the Preliminary Decision Memorandum are identical in 
content.
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    \1\ See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy 
Steel from India and the People's Republic of China: Initiation of 
Countervailing Duty Investigations, 82 FR 22486 (May 16, 2017) 
(Initiation Notice).
    \2\ See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy 
Steel from India and the People's Republic of China: Postponement of 
Preliminary Determinations of Countervailing Duty Investigations, 82 
FR 28641 (June 23, 2017).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination: Countervailing Duty Investigation of 
Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from 
the People's Republic of China,'' dated concurrently with, and 
hereby adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is cold-drawn mechanical 
tubing from the PRC. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    In accordance with the preamble to the Department's regulations,\4\ 
the Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage, (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice, as well as additional language proposed by the 
Department. The Department intends to issue its preliminary decision 
regarding comments concerning the scope of the antidumping duty (AD) 
and countervailing duty (CVD) investigations in the preliminary 
determination of the companion AD investigation.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice, 82 FR at 22486, 22487.
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Methodology

    The Department is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, the Department preliminarily determines that there is 
a subsidy, i.e., a financial contribution by an ``authority'' that 
gives rise to a benefit to the recipient, and that the subsidy is 
specific.\6\
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    \6\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    The Department notes that in making these findings, it relied, in 
part, on facts available and, because it finds that one or more 
respondents did not act to the best of their ability to respond to the 
Department's requests for information, it drew an adverse inference 
where appropriate in selecting from among the facts otherwise 
available.\7\ For further information, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Decision 
Memorandum.
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    \7\ See sections 776(a) and (b) of the Act.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, the Department shall determine an estimated 
all-others rate for companies not individually examined. This rate 
shall be an amount equal to the weighted average of the estimated 
subsidy rates established for those companies individually examined, 
excluding any zero and de minimis rates and any rates based entirely 
under section 776 of the Act. In this investigation, the Department 
calculated individual estimated countervailable subsidy rates for 
Jiangsu Hongyi Steel Pipe Co., Ltd. (Hongyi) and Zhangjiagang Huacheng 
Import & Export Co., Ltd. (Huacheng I&E) that are not zero, de minimis, 
or based entirely on facts otherwise available. The Department 
calculated the all-others'' rate using a simple average of the 
individual estimated subsidy rates calculated for the examined 
respondents.\8\
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    \8\ With two respondents under examination, the Department 
normally calculates (A) a weighted-average of the estimated subsidy 
rates calculated for the examined respondents; (B) a simple average 
of the estimated subsidy rates calculated for the examined 
respondents; and (C) a weighted-average of the estimated subsidy 
rates calculated for the examined respondents using each company's 
publicly-ranged values for the merchandise under consideration. The 
Department then compares (B) and (C) to (A) and selects the rate 
closest to (A) as the most appropriate rate for all other producers 
and exporters. See, e.g., Ball Bearings and Parts Thereof from 
France, Germany, Italy, Japan, and the United Kingdom: Final Results 
of Antidumping Duty Administrative Reviews, Final Results of 
Changed-Circumstances Review, and Revocation of an Order in Part, 75 
FR 53661, 53663 (September 1, 2010). As complete publicly ranged 
sales data was available, the Department based the all-others rate 
on the publicly ranged sales data of the mandatory respondents. For 
a complete analysis of the data, please see the All-Others'' Rate 
Calculation Memorandum.

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[[Page 44563]]

Preliminary Determination

    The Department preliminarily determines that the following 
estimated countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                              rate (%)
------------------------------------------------------------------------
Jiangsu Hongyi Steel Pipe Co., Ltd \9\.......................      35.69
Zhangjiagang Huacheng Import & Export Co., Ltd \10\..........      33.31
All-Others...................................................       34.5
------------------------------------------------------------------------

     
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    \9\ As discussed in the Preliminary Decision Memorandum, the 
Department finds the following companies to be cross-owned with 
Hongyi: Jiangsu Hongren Precision Pipe Manufacturing Co., Ltd. and 
Changzhou Kemeng Mechanical Equipment Co., Ltd.
    \10\ As discussed in the Preliminary Decision Memorandum, the 
Department finds the following companies to be cross-owned with 
Huacheng I&E: Zhangjiagang Huacheng Industry Pipe Making 
Corporation, Zhangjiagang Salem Fine Tubing Co., Ltd., Zhangjiagang 
Huacheng Investment Holding Co., Ltd., Zhangjiagang HZB Special 
Material Technology Co., Ltd. and Zhangjiagang Huacheng Special 
Materials Corporation.
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Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, the 
Department will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
the Department will instruct CBP to require a cash deposit equal to the 
rates indicated above.

Disclosure

    The Department intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date of this notice in accordance 
with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, the Department intends 
to verify the information relied upon in making its final 
determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\11\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
are encouraged to submit with each argument: (1) A statement of the 
issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
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    \11\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, and a list of the issues to be discussed. If a request 
for a hearing is made, the Department intends to hold the hearing at 
the U.S. Department of Commerce, 1401 Constitution Avenue NW., 
Washington, DC 20230, at a time and date to be determined. Parties 
should confirm by telephone the date, time, and location of the hearing 
two days before the scheduled date.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, the Department will 
notify the International Trade Commission (ITC) of its determination. 
If the final determination is affirmative, the ITC will determine 
before the later of 120 days after the date of this preliminary 
determination or 45 days after the final determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: September 18, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations performing the non-exclusive duties of the Assistant 
Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation covers cold-drawn mechanical 
tubing of carbon and alloy steel (cold-drawn mechanical tubing) of 
circular cross-section, in actual outside diameters less than 331 
mm, and regardless of wall thickness, surface finish, end finish or 
industry specification. The subject cold-drawn mechanical tubing is 
a tubular product with a circular cross-sectional shape that has 
been cold-drawn or otherwise cold-finished after the initial tube 
formation in a manner that involves a change in the diameter or wall 
thickness of the tubing, or both. The subject cold-drawn mechanical 
tubing may be produced from either welded (e.g., electric resistance 
welded, continuous welded, etc.) or seamless (e.g. , pierced, 
pilgered or extruded, etc.) carbon or alloy steel tubular products. 
It may also be heat treated after cold working. Such heat treatments 
may include, but are not limited to, annealing, normalizing, 
quenching and tempering, stress relieving or finish annealing. 
Typical cold-drawing methods for subject merchandise include, but 
are not limited to, drawing over mandrel, rod drawing, plug drawing, 
sink drawing and similar processes that involve reducing the outside 
diameter of the tubing with a die or similar device, whether or not 
controlling the inside diameter of the tubing with an internal 
support device such as a mandrel, rod, plug or similar device.
    Subject cold-drawn mechanical tubing is typically certified to 
meet industry specifications for cold-drawn tubing including but not 
limited to:
    (1) American Society for Testing and Materials (ASTM) or 
American Society of Mechanical Engineers (ASME) specifications ASTM 
A-512, ASTM A-513 Type 3 (ASME SA513 Type 3), ASTM A-513 Type 4 
(ASME SA513 Type 4), ASTM A-513 Type 5 (ASME SA513 Type 5), ASTM A-
513 Type 6 (ASME SA513 Type 6), ASTM A-519 (cold-finished);
    (2) SAE International (Society of Automotive Engineers) 
specifications SAE J524, SAE J525, SAE J2833, SAE J2614, SAE J2467, 
SAE J2435, SAE J2613;
    (3) Aerospace Material Specification (AMS) AMS T-6736 (AMS 
6736), AMS 6371, AMS 5050, AMS 5075, AMS 5062, AMS 6360, AMS 6361, 
AMS 6362, AMS 6371, AMS 6372, AMS 6374, AMS 6381, AMS 6415;
    (4) United States Military Standards (MIL) MIL-T-5066 and MIL-T-
6736;
    (5) foreign standards equivalent to one of the previously listed 
ASTM, ASME, SAE, AMS or MIL specifications including but not limited 
to:
    (a) German Institute for Standardization (DIN) specifications 
DIN 2391-2, DIN 2393-2, DIN 2394-2);
    (b) European Standards (EN) EN 10305-1, EN 10305-2, EN 10305-4, 
EN 10305-6 and

[[Page 44564]]

European national variations on those standards (e.g., British 
Standard (BS EN), Irish Standard (IS EN) and German Standard (DIN 
EN) variations, etc.);
    (c) Japanese Industrial Standard (JIS) JIS G 3441 and JIS G 
3445; and
    (6) proprietary standards that are based on one of the above-
listed standards.
    The subject cold-drawn mechanical tubing may also be dual or 
multiple certified to more than one standard. Pipe that is multiple 
certified as cold-drawn mechanical tubing and to other 
specifications not covered by this scope, is also covered by the 
scope of this investigation when it meets the physical description 
set forth above.
    Steel products included in the scope of this investigation are 
products in which:
    (1) Iron predominates, by weight, over each of the other 
contained elements; and
    (2) the carbon content is 2 percent or less by weight.
    For purposes of this scope, the place of cold-drawing determines 
the country of origin of the subject merchandise. Subject 
merchandise that is subject to minor working in a third country that 
occurs after drawing in one of the subject countries including, but 
not limited to, heat treatment, cutting to length, straightening, 
nondestruction testing, deburring or chamfering, remains within the 
scope of the investigation.
    All products that meet the written physical description are 
within the scope of this investigation unless specifically excluded 
or covered by the scope of an existing order. Merchandise that meets 
the physical description of cold-drawn mechanical tubing above is 
within the scope of the investigation even if it is also dual or 
multiple certified to an otherwise excluded specification listed 
below. The following products are outside of, and/or specifically 
excluded from, the scope of this investigation:
    (1) Cold-drawn stainless steel tubing, containing 10.5 percent 
or more of chromium by weight and not more than 1.2 percent of 
carbon by weight;
    (2) products certified to one or more of the ASTM, ASME or 
American Petroleum Institute (API) specifications listed below:
     ASTM A-53;
     ASTM A-106;
     ASTM A-179 (ASME SA 179);
     ASTM A-192 (ASME SA 192);
     ASTM A-209 (ASME SA 209);
     ASTM A-210 (ASME SA 210);
     ASTM A-213 (ASME SA 213);
     ASTM A-334 (ASME SA 334);
     ASTM A-423 (ASME SA 423);
     ASTM A-498;
     ASTM A-496 (ASME SA 496);
     ASTM A-199;
     ASTM A-500;
     ASTM A-556;
     ASTM A-565;
     API 5L; and
     API 5CT

except that any cold-drawn tubing product certified to one of the 
above excluded specifications will not be excluded from the scope if 
it is also dual-or multiple-certified to any other specification 
that otherwise would fall within the scope of this investigation.
    The products subject to the investigation are currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under item numbers: 7304.31.3000, 7304.31.6050, 
7304.51.1000, 7304.51.5005, 7304.51.5060, 7306.30.5015, 
7306.30.5020, 7306.50.5030. Subject merchandise may also enter under 
numbers 7306.30.1000 and 7306.50.1000. 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 Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Injury Test
VI. Application of the CVD Law to Imports from the PRC
VII. Subsidies Valuation
VIII. Benchmarks and Interest Rates
IX. Use of Facts Otherwise Available and Adverse Inferences
X. Analysis of Programs
XI. ITC Notification
XII. Disclosure and Public Comment
XIII. Verification
XIV. Conclusion

[FR Doc. 2017-20413 Filed 9-22-17; 8:45 am]
BILLING CODE 3510-DS-P

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