Cold-Drawn Mechanical Tubing From Switzerland: Preliminary Affirmative Determination of Sales at Less Than Fair Value and Postponement of Final Determination, and Extension of Provisional Measures, 55571-55574 [2017-25293]

Download as PDF Federal Register / Vol. 82, No. 224 / Wednesday, November 22, 2017 / Notices DEPARTMENT OF COMMERCE Appendix II Background List of Topics Discussed in the Preliminary Decision Memorandum asabaliauskas on DSKBBXCHB2PROD with NOTICES (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. This preliminary determination is made in accordance with section 733(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 September 12, 2017, the Department postponed the preliminary determination of this investigation until November 15, 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 I. Summary II. Background III. Period of Investigation IV. Scope Comments V. Discussion of the Methodology A. Determination of the Comparison Method B. Results of the Differential Pricing Analysis VI. Date of Sale VII. Product Comparisons VIII. Export Price and Constructed Export Price IX. Normal Value A. Home Market Viability B. Level of Trade C. Cost of Production (COP) Analysis 1. Calculation of COP 2. Test of Comparison Market Sales Prices 3. Results of the COP Test D. Calculation of NV Based on Comparison Market Prices E. Calculation of NV Based on Constructed Value X. Currency Conversion XI. Conclusion [FR Doc. 2017–25292 Filed 11–21–17; 8:45 am] BILLING CODE 3510–DS–P VerDate Sep<11>2014 18:57 Nov 21, 2017 Jkt 244001 International Trade Administration [A–441–801] Cold-Drawn Mechanical Tubing From Switzerland: Preliminary Affirmative Determination of Sales at Less Than Fair Value and Postponement of Final Determination, and Extension of Provisional Measures Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the Department) preliminarily determines that certain cold-drawn mechanical tubing of carbon and alloy steel (cold-drawn mechanical tubing) from Switzerland is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is April 1, 2016, through March 31, 2017. DATES: Applicable November 22, 2017. FOR FURTHER INFORMATION CONTACT: Laurel LaCivita, AD/CVD Operations, Office III or Amanda Brings, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482–4243 or (202) 482–3927, respectively. AGENCY: SUPPLEMENTARY INFORMATION: 1 See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from the Federal Republic of Germany, India, Italy, the Republic of Korea, the People’s Republic of China, and Switzerland: Initiation of Less-Than-Fair-Value Investigations, 82 FR 22491 (May 16, 2017) (Initiation Notice). 2 See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from the Federal Republic of Germany, India, Italy, the Republic of Korea, the People’s Republic of China, and Switzerland: Postponement of Preliminary Determinations in the Less-Than-Fair-Value Investigations, 82 FR 42788 (September 12, 2017). 3 See Memorandum, ‘‘Decision Memorandum for the Preliminary Determination in the Less-ThanFair-Value Investigation of Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from Switzerland’’ dated concurrently with, and hereby PO 00000 Frm 00019 Fmt 4703 Sfmt 4703 55571 included 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 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 the 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 Switzerland. 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. For a summary of the product coverage comments and rebuttal responses submitted to the record for this preliminary determination, and accompanying discussion and analysis of all comments timely received, see the Preliminary Scope Decision Memorandum.6 The Department is preliminarily modifying the scope language as it appeared in the Initiation Notice. See the revised scope in Appendix I to this notice. Methodology The Department is conducting this investigation in accordance with section 731 of the Act. Export prices were calculated in accordance with section 772(a) of the Act. Constructed export prices were calculated in accordance with section 772(b) of the Act. Normal value (NV) was calculated in accordance 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. 6 See Memorandum, ‘‘Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel (Cold-Drawn Mechanical Tubing) from Full Country Name: Scope Comments Decision Memorandum for the Preliminary Determination’’ (Preliminary Scope Decision Memorandum), dated concurrently with this preliminary determination. E:\FR\FM\22NON1.SGM 22NON1 55572 Federal Register / Vol. 82, No. 224 / Wednesday, November 22, 2017 / Notices with section 773 of the Act. In addition, the Department has relied on partial facts available under section 776(a)(1) of the Act. For a full description of the methodology underlying the preliminary determination, see the Preliminary Decision Memorandum.7 All-Others Rate Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in the preliminary determination the Department shall determine an estimated all-others rate for all exporters and producers not individually examined. This 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 and de minimis margins, and any margins determined entirely under section 776 of the Act. In this investigation, the Department calculated estimated weighted-average dumping margins for Benteler Rothrist and Mubea that are not zero, de minimis, or based entirely on facts otherwise available. The Department calculated the all-others rate using a weighted average of the estimated weighted-average dumping margins calculated for the examined respondents using each company’s publicly-ranged values for the merchandise under consideration.8 Preliminary Determination The Department preliminarily determines that the following estimated weighted-average dumping margins exist: 7 See the Preliminary Decision Memorandum. two respondents under examination, the Department normally calculates (A) a weightedaverage of the estimated weighted-average dumping margins calculated for the examined respondents; (B) a simple average of the estimated weightedaverage dumping margins calculated for the examined respondents; and (C) a weighted-average of the estimated weighted-average dumping margins calculated for the examined respondents using each company’s publicly-ranged U.S. sale quantities 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 Ball Bearings and Parts Thereof from France, Germany, Italy, Japan, and the United Kingdom: Final Results of Antidumping Duty Administrative Reviews, Final Results of ChangedCircumstances 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. asabaliauskas on DSKBBXCHB2PROD with NOTICES 8 With VerDate Sep<11>2014 18:57 Nov 21, 2017 Jkt 244001 the publication of the preliminary AD determinations for the PRC, Germany, India, Italy, Korea, and Switzerland in Exporter/producer the Federal Register. Rebuttal scope briefs, limited to issues raised in the scope case briefs, may be submitted no Benteler Rothrist AG later than three days after the deadline (Benteler Rothrist) ............. 34.15 for the scope case briefs. These ¨ Mubea Prazisionsstahlrohr deadlines, which are based on AG (MPST) ....................... 68.59 publication in the Federal Register of All-Others .............................. 36.17 the preliminary determinations in the AD investigations of cold-drawn Suspension of Liquidation mechanical tubing, apply for both the In accordance with section 733(d)(2) on-going CVD and AD investigations. of the Act, the Department will direct There is only one briefing schedule for U.S. Customs and Border Protection scope case and rebuttal briefs in the (CBP) to suspend liquidation of entries CVD and AD investigations. For all of subject merchandise, as described in scope issues, parties must file separate Appendix I, entered, or withdrawn from and identical documents on the records of all of the ongoing CVD and AD coldwarehouse, for consumption on or after drawn mechanical tubing investigations. the date of publication of this notice in No new factual information should be the Federal Register. Further, pursuant to section 733(d)(1)(B) of the Act and 19 included in scope case briefs or rebuttal scope briefs, and no proprietary CFR 351.205(d), the Department will information should be submitted in the instruct CBP to require a cash deposit equal to the estimated weighted-average scope case briefs and rebuttal scope briefs. dumping margin or the estimated allPursuant to 19 CFR 351.310(c), others rate, as follows: (1) The cash interested parties who wish to request a deposit rate for the respondents listed hearing on the revised scope, limited to above will be equal to the companyissues raised in the scope case and specific estimated weighted-average rebuttal briefs, must submit a written dumping margins determined in this request to the Assistant Secretary for preliminary determination; (2) if the Enforcement and Compliance, U.S. exporter is not a respondent identified above, but the producer is, then the cash Department of Commerce, separate from the hearing on issues raised in case deposit rate will be equal to the briefs, within five days after the date of company-specific estimated weightedaverage dumping margin established for publication of this notice. Requests should contain the party’s name, that producer of the subject address, and telephone number, the merchandise; and (3) the cash deposit number of participants, whether any rate for all other producers and participant is a foreign national, and a exporters will be equal to the all-others list of the issues to be discussed. If a estimated weighted-average dumping request for a hearing is made, the margin. Department intends to hold the hearing Disclosure at the U.S. Department of Commerce, 1401 Constitution Avenue NW., The Department intends to disclose Washington, DC 20230, at a time and its calculations and analysis performed date to be determined. Parties should to interested parties in this preliminary confirm by telephone the date, time, and determination within five days of any location of the hearing two days before public announcement or, if there is no the scheduled date. public announcement, within five days Scope comments may only be of the date of publication of this notice included in the scope case brief and in accordance with 19 CFR 351.224(b). scope rebuttal brief. Should this Verification investigation result in an order, As provided in section 782(i)(1) of the interested parties may submit requests for a scope ruling after the issuance of Act, the Department intends to verify any such order. the information relied upon in making Case briefs or other non-scope written its final determination. comments may be submitted to the Public Comment Assistant Secretary for Enforcement and Compliance no later than seven days The Department is setting different after the date on which the last deadlines for scope-related case and verification report is issued in this rebuttal briefs, and case and rebuttal investigation, unless the Secretary alters briefs addressing all other issues. Scope briefs may be submitted to the the time limit. Rebuttal briefs, limited to Assistant Secretary for Enforcement and issues raised in case briefs, may be Compliance no later than five days after submitted no later than five days after PO 00000 Estimated weightedaverage dumping margin (percent) Frm 00020 Fmt 4703 Sfmt 4703 E:\FR\FM\22NON1.SGM 22NON1 Federal Register / Vol. 82, No. 224 / Wednesday, November 22, 2017 / Notices asabaliauskas on DSKBBXCHB2PROD with NOTICES the deadline date for case briefs.9 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. 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, whether any participant is a foreign national, 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. Postponement of Final Determination and Extension of Provisional Measures Section 735(a)(2) of the Act provides that a final determination may be postponed until not later than 135 days after the date of the publication of the preliminary determination if, in the event of an affirmative preliminary determination, a request for such postponement is made by exporters who account for a significant proportion of exports of the subject merchandise, or in the event of a negative preliminary determination, a request for such postponement is made by the petitioner. Section 351.210(e)(2) of the Department’s regulations requires that a request by exporters for postponement of the final determination be accompanied by a request for extension of provisional measures from a fourmonth period to a period not more than six months in duration. On October 24, 2017, pursuant to 19 CFR 351.210(e), Benteler Rothrist requested the Department to postpone the final determination and that provisional measures be extended to a period not to exceed six months.10 In accordance with section 735(a)(2)(A) of 9 See 19 CFR 351.309; see also 19 CFR 351.303 (for general filing requirements). 10 See Benteler Rothrist’s letter, ‘‘Antidumping Duty Investigation of Cold-Drawn Mechanical Tubing from Switzerland: Request for Postponement of Final Determination and Provisional Measures Period,’’ dated October 24, 2017 (Benteler Rothrist’s Extension Request). VerDate Sep<11>2014 18:57 Nov 21, 2017 Jkt 244001 the Act and 19 CFR 351.210(b)(2)(ii), because: (1) The preliminary determination is affirmative; (2) the requesting exporter accounts for a significant proportion of exports of the subject merchandise; (3) the petitioners support Benteler Rothrist’s extension request; 11 and (4) no compelling reasons for denial exist, the Department is postponing the final determination and extending the provisional measures from a four-month period to a period not greater than six months. Accordingly, the Department will make its final determination no later than 135 days after the date of publication of this preliminary determination. International Trade Commission Notification In accordance with section 733(f) of the Act, the Department will notify the International Trade Commission (ITC) of its preliminary 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 whether these imports are materially injuring, or threaten material injury to, the U.S. industry. Notification to Interested Parties This determination is issued and published in accordance with sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c). Dated: November 15, 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. 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, 304.8 mm or more in length, 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 11 See the petitioners’ letter, ‘‘Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from China, Germany, India, Italy, Korea and Switzerland—Petitioners’ Comments Regarding Extension of the Final Determination Deadline,’’ dated November 13, 2017 (Petitioners’ Extension Request). PO 00000 Frm 00021 Fmt 4703 Sfmt 4703 55573 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 colddrawing 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. Other cold-finishing operations that may be used to produce subject merchandise include coldrolling and cold-sizing the tubing. 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 10305–3, EN 10305–4, EN 10305–6 and 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 E:\FR\FM\22NON1.SGM 22NON1 55574 Federal Register / Vol. 82, No. 224 / Wednesday, November 22, 2017 / Notices asabaliauskas on DSKBBXCHB2PROD with NOTICES 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 this 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. Period of Investigation IV. Scope Comments V. Discussion of the Methodology A. Determination of the Comparison Method VerDate Sep<11>2014 18:57 Nov 21, 2017 Jkt 244001 B. Results of the Differential Pricing Analysis VI. Date of Sale VII. Product Comparisons VIII. Export Price and Constructed Export Price IX. Normal Value A. Home Market Viability B. Affiliated-Party Transactions and Arm’sLength Test C. Level of Trade D. Cost of Production (COP) Analysis 1. Calculation of COP 2. Test of Comparison Market Sales Prices 3. Results of the COP Test E. Calculation of NV Based on Comparison Market Prices X. Applications of Facts Available XI. Currency Conversion XII. Conclusion [FR Doc. 2017–25293 Filed 11–21–17; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–058] Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel From the People’s Republic of China: Preliminary Affirmative Determination of Sales at Less-Than-Fair Value and Preliminary Affirmative Determination of Critical Circumstances, in Part, and Postponement of Final Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the Department) preliminarily determines that certain cold-drawn mechanical tubing of carbon and alloy steel (cold-drawn mechanical tubing) from the People’s Republic of China (PRC) is being sold in the United States at less than fair value (LTFV). The period of investigation (POI) is October 1, 2016, through March 31, 2017. DATES: Applicable November 22, 2017. FOR FURTHER INFORMATION CONTACT: Keith Haynes or Paul Stolz, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482–5139 or (202) 482–4474, respectively. AGENCY: SUPPLEMENTARY INFORMATION: Background This preliminary determination is made in accordance with section 733(b) of the Tariff Act of 1930, as amended (the Act). The Department published the notice of initiation of this investigation PO 00000 Frm 00022 Fmt 4703 Sfmt 4703 on May 16, 2017.1 On September 12, 2017, the Department postponed the preliminary determination of this investigation until November 15, 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 included 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 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 the 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 petitioners.6 For a summary of the 1 See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from the People’s Republic of China: Initiation of Less-Than-Fair-Value Investigation, 82 FR 22491 (May 16, 2017) (Initiation Notice). 2 See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from the Federal Republic of Germany, India, Italy, the Republic of Korea, the People’s Republic of China, and Switzerland: Postponement of Preliminary Determinations in the Less-Than-Fair-Value Investigations, 82 FR 42788 (September 12, 2017). 3 See ‘‘Decision Memorandum for Preliminary Determination for the Antidumping 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). 4 See Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May 19, 1997). 5 See Initiation Notice, 82 FR at 22492. 6 ArcelorMittal Tubular Products, Michigan Seamless Tube, LLC, PTC Alliance Corp., Plymouth Tube Co. USA, Webco Industries, Inc., and E:\FR\FM\22NON1.SGM 22NON1

Agencies

[Federal Register Volume 82, Number 224 (Wednesday, November 22, 2017)]
[Notices]
[Pages 55571-55574]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-25293]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-441-801]


Cold-Drawn Mechanical Tubing From Switzerland: Preliminary 
Affirmative Determination of Sales at Less Than Fair Value and 
Postponement of Final Determination, and Extension of Provisional 
Measures

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that certain cold-drawn mechanical tubing of carbon and 
alloy steel (cold-drawn mechanical tubing) from Switzerland is being, 
or is likely to be, sold in the United States at less than fair value 
(LTFV). The period of investigation (POI) is April 1, 2016, through 
March 31, 2017.

DATES: Applicable November 22, 2017.

FOR FURTHER INFORMATION CONTACT: Laurel LaCivita, AD/CVD Operations, 
Office III or Amanda Brings, AD/CVD Operations, Office V, Enforcement 
and Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; 
telephone: (202) 482-4243 or (202) 482-3927, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
733(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 September 12, 2017, the Department postponed the 
preliminary determination of this investigation until November 15, 
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 included 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 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 the electronic versions of the Preliminary 
Decision Memorandum are identical in content.
---------------------------------------------------------------------------

    \1\ See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy 
Steel from the Federal Republic of Germany, India, Italy, the 
Republic of Korea, the People's Republic of China, and Switzerland: 
Initiation of Less-Than-Fair-Value Investigations, 82 FR 22491 (May 
16, 2017) (Initiation Notice).
    \2\ See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy 
Steel from the Federal Republic of Germany, India, Italy, the 
Republic of Korea, the People's Republic of China, and Switzerland: 
Postponement of Preliminary Determinations in the Less-Than-Fair-
Value Investigations, 82 FR 42788 (September 12, 2017).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of Certain 
Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from 
Switzerland'' 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 Switzerland. 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. For a summary of the product coverage comments 
and rebuttal responses submitted to the record for this preliminary 
determination, and accompanying discussion and analysis of all comments 
timely received, see the Preliminary Scope Decision Memorandum.\6\ The 
Department is preliminarily modifying the scope language as it appeared 
in the Initiation Notice. See the revised scope in Appendix I to this 
notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
    \6\ See Memorandum, ``Certain Cold-Drawn Mechanical Tubing of 
Carbon and Alloy Steel (Cold-Drawn Mechanical Tubing) from Full 
Country Name: Scope Comments Decision Memorandum for the Preliminary 
Determination'' (Preliminary Scope Decision Memorandum), dated 
concurrently with this preliminary determination.
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Methodology

    The Department is conducting this investigation in accordance with 
section 731 of the Act. Export prices were calculated in accordance 
with section 772(a) of the Act. Constructed export prices were 
calculated in accordance with section 772(b) of the Act. Normal value 
(NV) was calculated in accordance

[[Page 55572]]

with section 773 of the Act. In addition, the Department has relied on 
partial facts available under section 776(a)(1) of the Act. For a full 
description of the methodology underlying the preliminary 
determination, see the Preliminary Decision Memorandum.\7\
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    \7\ See the Preliminary Decision Memorandum.
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All-Others Rate

    Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in 
the preliminary determination the Department shall determine an 
estimated all-others rate for all exporters and producers not 
individually examined. This 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 and de minimis margins, and any margins determined 
entirely under section 776 of the Act.
    In this investigation, the Department calculated estimated 
weighted-average dumping margins for Benteler Rothrist and Mubea that 
are not zero, de minimis, or based entirely on facts otherwise 
available. The Department calculated the all-others rate using a 
weighted average of the estimated weighted-average dumping margins 
calculated for the examined respondents using each company's publicly-
ranged values for the merchandise under consideration.\8\
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    \8\ With two respondents under examination, the Department 
normally calculates (A) a weighted-average of the estimated 
weighted-average dumping margins calculated for the examined 
respondents; (B) a simple average of the estimated weighted-average 
dumping margins calculated for the examined respondents; and (C) a 
weighted-average of the estimated weighted-average dumping margins 
calculated for the examined respondents using each company's 
publicly-ranged U.S. sale quantities 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 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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Preliminary Determination

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

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                    Exporter/producer                         average
                                                          dumping margin
                                                             (percent)
------------------------------------------------------------------------
Benteler Rothrist AG (Benteler Rothrist)................           34.15
Mubea Pr[auml]zisionsstahlrohr AG (MPST)................           68.59
All-Others..............................................           36.17
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(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 Appendix 
I, entered, or withdrawn from warehouse, for consumption on or after 
the date of publication of this notice in the Federal Register. 
Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR 
351.205(d), the Department will instruct CBP to require a cash deposit 
equal to the estimated weighted-average dumping margin or the estimated 
all-others rate, as follows: (1) The cash deposit rate for the 
respondents listed above will be equal to the company-specific 
estimated weighted-average dumping margins determined in this 
preliminary determination; (2) if the exporter is not a respondent 
identified above, but the producer is, then the cash deposit rate will 
be equal to the company-specific estimated weighted-average dumping 
margin established for that producer of the subject merchandise; and 
(3) the cash deposit rate for all other producers and exporters will be 
equal to the all-others estimated weighted-average dumping margin.

Disclosure

    The Department intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of any public announcement or, if there is no public 
announcement, within five days of the date of publication 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

    The Department is setting different deadlines for scope-related 
case and rebuttal briefs, and case and rebuttal briefs addressing all 
other issues.
    Scope briefs may be submitted to the Assistant Secretary for 
Enforcement and Compliance no later than five days after the 
publication of the preliminary AD determinations for the PRC, Germany, 
India, Italy, Korea, and Switzerland in the Federal Register. Rebuttal 
scope briefs, limited to issues raised in the scope case briefs, may be 
submitted no later than three days after the deadline for the scope 
case briefs. These deadlines, which are based on publication in the 
Federal Register of the preliminary determinations in the AD 
investigations of cold-drawn mechanical tubing, apply for both the on-
going CVD and AD investigations. There is only one briefing schedule 
for scope case and rebuttal briefs in the CVD and AD investigations. 
For all scope issues, parties must file separate and identical 
documents on the records of all of the ongoing CVD and AD cold-drawn 
mechanical tubing investigations. No new factual information should be 
included in scope case briefs or rebuttal scope briefs, and no 
proprietary information should be submitted in the scope case briefs 
and rebuttal scope briefs.
    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing on the revised scope, limited to issues raised in the 
scope case and rebuttal briefs, must submit a written request to the 
Assistant Secretary for Enforcement and Compliance, U.S. Department of 
Commerce, separate from the hearing on issues raised in case briefs, 
within five days after the date of publication of this notice. Requests 
should contain the party's name, address, and telephone number, the 
number of participants, whether any participant is a foreign national, 
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.
    Scope comments may only be included in the scope case brief and 
scope rebuttal brief. Should this investigation result in an order, 
interested parties may submit requests for a scope ruling after the 
issuance of any such order.
    Case briefs or other non-scope 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, unless the Secretary alters the time 
limit. Rebuttal briefs, limited to issues raised in case briefs, may be 
submitted no later than five days after

[[Page 55573]]

the deadline date for case briefs.\9\ 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. 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, whether any participant is a foreign national, 
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.
---------------------------------------------------------------------------

    \9\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
---------------------------------------------------------------------------

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioner. Section 351.210(e)(2) of the Department's regulations 
requires that a request by exporters for postponement of the final 
determination be accompanied by a request for extension of provisional 
measures from a four-month period to a period not more than six months 
in duration.
    On October 24, 2017, pursuant to 19 CFR 351.210(e), Benteler 
Rothrist requested the Department to postpone the final determination 
and that provisional measures be extended to a period not to exceed six 
months.\10\ In accordance with section 735(a)(2)(A) of the Act and 19 
CFR 351.210(b)(2)(ii), because: (1) The preliminary determination is 
affirmative; (2) the requesting exporter accounts for a significant 
proportion of exports of the subject merchandise; (3) the petitioners 
support Benteler Rothrist's extension request; \11\ and (4) no 
compelling reasons for denial exist, the Department is postponing the 
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly, the 
Department will make its final determination no later than 135 days 
after the date of publication of this preliminary determination.
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    \10\ See Benteler Rothrist's letter, ``Antidumping Duty 
Investigation of Cold-Drawn Mechanical Tubing from Switzerland: 
Request for Postponement of Final Determination and Provisional 
Measures Period,'' dated October 24, 2017 (Benteler Rothrist's 
Extension Request).
    \11\ See the petitioners' letter, ``Certain Cold-Drawn 
Mechanical Tubing of Carbon and Alloy Steel from China, Germany, 
India, Italy, Korea and Switzerland--Petitioners' Comments Regarding 
Extension of the Final Determination Deadline,'' dated November 13, 
2017 (Petitioners' Extension Request).
---------------------------------------------------------------------------

International Trade Commission Notification

    In accordance with section 733(f) of the Act, the Department will 
notify the International Trade Commission (ITC) of its preliminary 
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 
whether these imports are materially injuring, or threaten material 
injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

    Dated: November 15, 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.

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, 304.8 mm or more in length, 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. Other cold-finishing 
operations that may be used to produce subject merchandise include 
cold-rolling and cold-sizing the tubing.
    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 10305-3, 
EN 10305-4, EN 10305-6 and 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

[[Page 55574]]

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 this 
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. Period of Investigation
IV. Scope Comments
V. Discussion of the Methodology
    A. Determination of the Comparison Method
    B. Results of the Differential Pricing Analysis
VI. Date of Sale
VII. Product Comparisons
VIII. Export Price and Constructed Export Price
IX. Normal Value
    A. Home Market Viability
    B. Affiliated-Party Transactions and Arm's-Length Test
    C. Level of Trade
    D. Cost of Production (COP) Analysis
    1. Calculation of COP
    2. Test of Comparison Market Sales Prices
    3. Results of the COP Test
    E. Calculation of NV Based on Comparison Market Prices
X. Applications of Facts Available
XI. Currency Conversion
XII. Conclusion

[FR Doc. 2017-25293 Filed 11-21-17; 8:45 am]
BILLING CODE 3510-DS-P

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