Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel From India: Final Affirmative Countervailing Duty Determination, 58172-58175 [2017-26609]
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58172
Federal Register / Vol. 82, No. 236 / Monday, December 11, 2017 / Notices
importer certification attached hereto as
Appendix III. The importer and exporter are
required to maintain the exporter
certification attached hereto as Appendix IV.
The importer certification must be
completed, signed, and dated at the time of
the entry of the CORE product. The exporter
certification must be completed, signed, and
dated at the time of shipment of the relevant
entries. For shipments and/or entries on or
after November 4, 2016, but before the
publication of this notice in the Federal
Register, for which certifications are
required, importers and exporters should
complete the required certification within 30
days of the publication of this notice in the
Federal Register. The importer and
Vietnamese exporter are also required to
maintain sufficient documentation
supporting their certifications. The importer
will not be required to submit the
certifications or supporting documentation to
CBP as part of the entry process. However,
the importer and the exporter will be
required to present the certifications and
supporting documentation, to the
Department and/or U.S. Customs and Border
Protection (CBP), as applicable, upon request
by the respective agency. Additionally, the
claims made in the certifications and any
supporting documentation are subject to
verification by the Department and/or CBP.
The importer and exporter are required to
maintain the certifications and supporting
documentation for the later of (1) a period of
five years from the date of entry or (2) a
period of three years after the conclusion of
any litigation in United States courts
regarding such entries. If it is determined that
the certification and/or documentation
requirements in a certification have not been
met, the Department intends to instruct CBP
to suspend, under the PRC CORE orders (A–
570–026, C–570–027), all unliquidated
entries for which these requirements were
not met and require the importer to post
applicable antidumping duty (AD) and
countervailing duty (CVD) cash deposits
equal to the rates as determined by the
Department of Commerce. Entries suspended
under A–570–026 and C–570–027 will be
liquidated pursuant to applicable
administrative reviews of the PRC orders or
through the automatic liquidation process.
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Appendix III
Importer Certification
I hereby certify that:
• My name is {INSERT COMPANY
OFFICIAL’S NAME HERE} and I am an
official of {INSERT NAME OF IMPORTING
COMPANY};
• I have direct personal knowledge of the
facts regarding the importation of the
corrosion-resistant steel products produced
in Vietnam that entered under entry
number(s) {INSERT ENTRY NUMBER(S)}
and are covered by this certification;
• I have personal knowledge of the facts
regarding the production of the imported
products covered by this certification;
• These corrosion-resistant steel products
produced in Vietnam do not contain hotrolled or cold-rolled steel substrate produced
in the People’s Republic of China (PRC);
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• I understand that {INSERT NAME OF
IMPORTING COMPANY} is required to
maintain a copy ofthis certification and
sufficient documentation supporting this
certification for the later of (1) a period of
five years from the date of entry or (2) a
period of three years after the conclusion of
any litigation in the United States courts
regarding such entries;
• I understand that {INSERT NAME OF
IMPORTING COMPANY}is required to
provide this certification and supporting
records, upon request, to U.S. Customs and
Border Protection (CBP) and/or the
Department of Commerce (the Department);
• I understand that {INSERT NAME OF
IMPORTING COMPANY} is required to
maintain a copy of the exporter’s certification
for the later of (1) a period of five years from
the date of entry or (2) a period of three years
after the conclusion of any litigation in
United States courts regarding such entries;
• I understand that {INSERT NAME OF
IMPORTING COMPANY} is required to
maintain and provide a copy of the exporter’s
certification and supporting records, upon
request, to CBP and/or the Department;
• I understand that the claims made
herein, and the substantiating
documentation, are subject to verification by
CBP and/or the Department;
• I understand that failure to maintain the
required certification and/or failure to
substantiate the claims made herein will
result in:
Æ suspension of liquidation of all
unliquidated entries (and entries for which
liquidation has not become final) for which
these requirements were not met and
Æ the requirement that the importer post
applicable antidumping duty (AD) and
countervailing duty (CVD) cash deposits
equal to the rates as determined by the
Department;
• I understand that agents of the importer,
such as brokers, are not permitted to make
this certification;
• This certification was completed at the
time of entry;
• I am aware that U.S. law (including, but
not limited to, 18 U.S.C. 1001) imposes
criminal sanctions on individuals who
knowingly and willfully make material false
statements to the U.S. government.
Signature llllllllllllllll
lllllllllllllllllllll
NAME OF COMPANY OFFICIAL
lllllllllllllllllllll
TITLE
lllllllllllllllllllll
DATE
rolled or cold-rolled steel substrate produced
in the People’s Republic of China (PRC);
• I understand that {INSERT NAME OF
EXPORTING COMPANY} is required to
maintain a copy of the this certification and
sufficient documentation supporting this
certification for the later of (1) a period of
five years from the date of entry or (2) a
period of three years after the conclusion of
any litigation in the United States courts
regarding such entries;
• I understand that {INSERT NAME OF
EXPORTING COMPANY} must provide this
Exporter Certification to the U.S. importer at
the time of shipment;
• I understand that {INSERT NAME OF
EXPORTING COMPANY} is required to
provide a copy of this certification and
supporting records, upon request, to U.S.
Customs and Border Protection (CBP) and/or
the Department of Commerce (the
Department);
• I understand that the claims made
herein, and the substantiating documentation
are subject to verification by CBP and/or the
Department;
• I understand that failure to maintain the
required certification and/or failure to
substantiate the claims made herein will
result in:
Æ suspension of all unliquidated entries
(and entries for which liquidation has not
become final) for which these requirements
were not met and
Æ the requirement that the importer post
applicable antidumping duty (AD) and
countervailing duty (CVD) cash deposits
equal to the rates as determined by the
Department;
• This certification was completed at or
prior to the time of shipment.
• I am aware that U.S. law (including, but
not limited to, 18 U.S.C. 1001) imposes
criminal sanctions on individuals who
knowingly and willfully make material false
statements to the U.S. government;
Signature llllllllllllllll
lllllllllllllllllllll
NAME OF COMPANY OFFICIAL
lllllllllllllllllllll
TITLE
lllllllllllllllllllll
DATE
Appendix IV
[C–533–874]
Exporter Certification
I hereby certify that:
• My name is {INSERT COMPANY
OFFICIAL’S NAME HERE} and I am an
official of {INSERT NAME OF EXPORTING
COMPANY};
• I have direct personal knowledge of the
facts regarding the production and
exportation of the corrosion-resistant steel
products identified below;
• These corrosion-resistant steel products
produced in Vietnam do not contain hot-
Certain Cold-Drawn Mechanical Tubing
of Carbon and Alloy Steel From India:
Final Affirmative Countervailing Duty
Determination
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[FR Doc. 2017–26606 Filed 12–8–17; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Department) determines that
countervailable subsidies are being
AGENCY:
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Federal Register / Vol. 82, No. 236 / Monday, December 11, 2017 / Notices
provided to producers and exporters of
certain cold-drawn mechanical tubing of
carbon and alloy steel (cold-drawn
mechanical tubing) from India. The
period of investigation is April 1, 2016,
through March 31, 2017.
DATES: Applicable December 11, 2017.
FOR FURTHER INFORMATION CONTACT:
Ryan Mullen or Carrie Bethea, AD/CVD
Operations, Office V, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW., Washington, DC 20230; telephone
202–482–5260 or 202–482–1491,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On September 25, 2017, the
Department published the Preliminary
Determination in the Federal Register.1
A summary of the events that
occurred since the Department
published the Preliminary
Determination, as well as a full
discussion of the issues raised by parties
for this final determination, may be
found in the accompanying Issues and
Decision Memorandum.2 The Issues and
Decision Memorandum is a public
document, and is on file electronically
via Enforcement and Compliance’s
Antidumping and Countervailing Duty
Centralized Electronic Service System
(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 Issues and
Decision Memorandum can be accessed
directly at https://enforcement.trade.gov.
The signed and electronic versions of
the Issues and Decision Memorandum
are identical in content.
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Scope Comments
In the Department’s Preliminary
Scope Decision Memorandum, we set
aside a period of time for parties to raise
issues regarding product coverage (i.e.,
scope) in scope case briefs or other
written comments on scope issues.3
1 See Certain Cold-Drawn Mechanical Tubing of
Carbon and Alloy Steel from India: Preliminary
Affirmative Countervailing Duty Determination, 82
FR 44558 (September 25, 2017) and accompanying
Preliminary Decision Memorandum (Preliminary
Determination).
2 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final Determination in the
Countervailing Duty Investigation of Certain ColdDrawn Mechanical Tubing of Carbon and Alloy
Steel from India,’’ dated concurrently with this
determination and hereby adopted by this notice
(Issues and Decision Memorandum).
3 See Memorandum, ‘‘Scope Comments Decision
Memorandum for the Preliminary Determinations,’’
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Certain interested parties commented on
the scope of the investigation as it
appeared in the Preliminary Scope
Decision Memorandum. For a summary
of the product coverage comments and
rebuttal responses submitted to the
record for this final determination, and
accompanying discussion and analysis
of all comments timely received, see the
Final Scope Decision
Memorandum.4 See the scope in
Appendix I to this notice.
Scope of the Investigation
The products covered by this
investigation are cold-drawn
mechanical tubing from India. For a
complete description of the scope of this
investigation, see ‘‘Scope of the
Investigation,’’ in Appendix I of this
notice.
Analysis of Subsidy Programs and
Comments Received
The subsidy programs under
investigation, and the issues raised in
the case and rebuttal briefs filed by the
parties, are discussed in the Issues and
Decision Memorandum. A list of the
issues parties raised and to which we
responded in the Issues and Decisions
Memorandum, is attached to this notice
at Appendix II.
Verification
The Department conducted
verification of the questionnaire
responses submitted by the Government
of India, Goodluck India Limited
(Goodluck), and Tube Investments of
India Limited (Tube Investments)
between October 23, and October 31,
2017.
Use of Adverse Facts Available
If necessary information is not
available on the record, or an interested
party withholds information, fails to
provide requested information in a
timely manner, significantly impedes a
proceeding by not providing
information, or information provided
cannot be verified, the Department will
apply facts available, pursuant to
section 776(a)(1) and (2) of the Tariff
Act of 1930, as amended (the Act). For
purposes of this final determination, the
Department relied, in part, on facts
available and, because certain
respondents did not cooperate by not
acting to the best of their ability to
respond to the Department’s requests for
information, we drew an adverse
dated November 15, 2017 (Preliminary Scope
Decision Memorandum).
4 See Memorandum, ‘‘Scope Comments Decision
Memorandum for the Final Determinations,’’ dated
December 4, 2017 (Final Scope Decision
Memorandum).
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58173
inference, where appropriate, in
selecting from among the facts
otherwise available.5 A full discussion
of our decision to rely on adverse facts
available is presented in the ‘‘Use of
Facts Otherwise Available and Adverse
Inferences’’ section of the Issues and
Decision Memorandum.
Changes Since the Preliminary
Determination
Based on our analysis of the
comments received from parties and the
minor corrections presented, as well as
additional items discovered at
verification, we made certain changes to
the respondents’ subsidy rate
calculations set forth in the Preliminary
Determination. For a discussion of these
changes, see the Issues and Decision
Memorandum and the Final Calculation
Memoranda.6
Final Determination
In accordance with section
705(c)(1)(B)(i) of the Act, we calculated
a rate for each exporter/producer of the
subject merchandise individually
investigated, i.e., Goodluck and Tube
Investments. In accordance with section
705(c)(5)(A) of the Act, for companies
not individually investigated, we apply
an ‘‘all-others’’ rate, which is normally
calculated by weighting the subsidy
rates of the individual companies
selected as mandatory respondents by
those companies’ exports of the subject
merchandise to the United States. Under
section 705(c)(5)(A)(i) of the Act, the
‘‘all-others’’ rate excludes zero and de
minimis rates calculated for the
exporters and producers individually
investigated, as well as rates based
entirely on facts otherwise available.
Where the rates for the individually
investigated companies are all zero or
de minimis, or determined entirely
using facts otherwise available, section
705(c)(5)(A)(ii) of the Act instructs the
Department to establish an ‘‘all-others’’
rate using ‘‘any reasonable method.’’
In this investigation, the Department
calculated individual countervailable
subsidy rates for Goodluck and Tube
Investments 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 individual
estimated subsidy rates calculated for
5 See
sections 776(a) and (b) of the Act.
Issues and Decision Memorandum; see also
Memorandum, ‘‘Final Determination Calculation for
Goodluck India Limited,’’ dated December 4, 2017
(Goodluck Final Calculation Memorandum) and
Memorandum, ‘‘Final Determination Calculation for
Tube Investments of India Limited,’’ dated
December 4, 2017 (Tube Investments Final
Calculation Memorandum) (collectively, Final
Calculation Memoranda).
6 See
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Federal Register / Vol. 82, No. 236 / Monday, December 11, 2017 / Notices
Notification Regarding Administrative
Protective Orders
This notice serves as a reminder to
parties such to an APO of their
responsibility concerning the
Company
Subsidy rate
disposition of proprietary information
disclosed under APO in accordance
Goodluck India Limited .........
8.02 with 19 CFR 351.305(a)(3). Timely
Tube Investments of India
written notification of the return or
Limited ...............................
42.60 destruction of APO materials or,
All-Others ..............................
22.41 alternatively, conversion to judicial
protective order, is hereby requested.
Disclosure
Failure to comply with the regulations
and terms of an APO is a violation that
We intend to disclose the calculations
is subject to sanction.
performed within five days of the date
of publication of this notice to parties in Notification to Interested Parties
this proceeding in accordance with 19
This determination is published
CFR 351.224(b).
pursuant to section 705(d) and 777(i) of
the Act and 19 CFR 351.210(c).
Continuation of Suspension of
Dated: December 4, 2017.
Liquidation
the examined respondents using each
company’s publicly-ranged values for
the merchandise under consideration.
The final subsidy rates are as follows:
As a result of our Preliminary
Determination and pursuant to section
703(d) of the Act, we instructed U.S.
Customs and Border Protection (CBP) to
suspend liquidation of any entries of
merchandise under consideration from
India that were entered, or withdrawn
from warehouse, for consumption on or
after September 25, 2017, which is the
publication date in the Federal Register
of the Preliminary Determination.
If the U.S. International Trade
Commission (ITC) issues a final
affirmative injury determination, we
will issue a countervailing duty order
and will require a cash deposit of
estimated countervailing duties for such
entries of subject merchandise in the
amounts indicated above. If the ITC
determines that material injury, or
threat of material injury, does not exist,
this proceeding will be terminated and
all estimated duties deposited or
securities posted as a result of the
suspension of liquidation will be
refunded or canceled.
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U.S. International Trade Commission
Notification
In accordance with section 705(d) of
the Act, we will notify the ITC of our
determination. In addition, we are
making available to the ITC all nonprivileged and non-proprietary
information relating to this
investigation. We will allow the ITC
access to all privileged and business
proprietary information in our files,
provided the ITC confirms that it will
not disclose such information, either
publicly or under an administrative
protective order (APO), without the
written consent of the Acting Assistant
Secretary for Enforcement and
Compliance.
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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
331mm, 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 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
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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
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
these investigations when it meets the
physical description set forth above.
Steel products included in the scope of
these investigations 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, nondestructive testing,
deburring or chamfering, remains within the
scope of these investigations.
All products that meet the written physical
description are within the scope of these
investigations 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
investigations 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 these
investigations:
(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:
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• 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 these
investigations.
The products subject to the investigations
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 investigations
is dispositive.
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Appendix II
List of Topics Discussed in the Final
Decision Memo
I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Subsidies Valuation Information
VII. Benchmarks and Interest Rates
VIII. Use of Facts Otherwise Available and
Adverse Inferences
IX. Analysis of Programs
X. Discussion of the Issues
Comment 1: The Department’s Application
of AFA for the GOI’s Failure to Provide
Requested Information
Comment 2: Whether AAP and DDB
Programs are Countervailable
Comment 3: The Department’s Treatment
of EPCGS
Comment 4: The Department’s Treatment
of SHIS
Comment 5: Whether the Benefit for MEIS
is Determined at the Date of Issuance
Comment 6: Whether the Deduction under
32–AC of the Income Tax Act is
Countervailable
Comment 7: The Department’s
Determination Regarding the Entry Tax
Exemption for the Iron and Steel
Industry in Uttar Pradesh
Comment 8: The Denominator Used to
Calculate Goodluck’s DDB Exemption
Comment 9: The Inclusion of Tube
Investments’ Non-Subject Merchandise
in the Benefit Calculation for DDB
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Comment 10: The Department’s
Calculation Methodology for Tube
Investments’ EPCGS Benefits
Comment 11: The Department’s
Application of AFA for Certain
Unreported Subsidies Discovered at
Tube Investments’ Verification
Comment 12: The Department’s
Calculation Methodology for the Income
Tax for Research and Development
Program
Comment 13: The Department’s Decision to
Countervail Benefits for Tube
Investments’ Non-Subject Merchandise
Comment 14: The Revised Sales and
Subsidy Data Presented as Minor
Corrections
XI. Conclusion
[FR Doc. 2017–26609 Filed 12–8–17; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–059]
Countervailing Duty Investigation of
Cold-Drawn Mechanical Tubing of
Carbon and Alloy Steel From the
People’s Republic of China: Final
Affirmative Determination, and Final
Affirmative Determination of Critical
Circumstances, in Part
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) determines that
countervailable subsidies are being
provided to producers and exporters of
certain cold-drawn mechanical tubing of
carbon and alloy steel (cold-drawn
mechanical tubing) from the People’s
Republic of China (PRC), as provided in
section 705 of the Tariff Act of 1930 (the
Act). The period of investigation is
January 1, 2016, through December 31,
2016. For more information on the
estimated subsidy rates, see the ‘‘Final
Determination’’ section of this notice.
DATES: Applicable December 11, 2017.
FOR FURTHER INFORMATION CONTACT:
Shanah Lee at (202) 482–6386 or Alex
Rosen at (202) 482–7814, AD/CVD
Operations, Office III, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW., Washington, DC 20230.
AGENCY:
Background
The Department published the
Preliminary Determination on
September 25, 2017.1 A summary of
1 See Certain Cold-Drawn Mechanical Tubing of
Carbon and Alloy Steel from the People’s Republic
of China: Preliminary Affirmative Countervailing
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58175
events that occurred since the
Department published the Preliminary
Determination, as well as a full
discussion of the issues raised by parties
for this final determination, may be
found in the Issues and Decision
Memorandum.2 The Issues and Decision
Memorandum is a public document and
is on file electronically via Enforcement
and Compliance’s Antidumping and
Countervailing Duty Centralized
Electronic Service System (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
Issues and Decision Memorandum can
be accessed directly at https://
enforcement.trade.gov/frn/. The signed
Issues and Decision Memorandum and
the electronic version 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 of this
notice.
Scope Comments
In the Department’s Preliminary
Scope Decision Memorandum, we set
aside a period of time for parties to raise
issues regarding product coverage (i.e.,
scope) in scope case briefs or other
written comments on scope issues.3
Certain interested parties commented on
the scope of the investigation as it
appeared in the Preliminary Scope
Decision Memorandum. For a summary
of the product coverage comments and
rebuttal responses submitted to the
record for this final determination, and
accompanying discussion and analysis
of all comments timely received, see the
Final Scope Decision
Memorandum.4 See the scope in
Appendix I to this notice.
Duty Determination, 82 FR 44562 (September 25,
2017) (Preliminary Determination).
2 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final Determination in the
Countervailing Duty Investigation of 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 (Issues and
Decision Memorandum).
3 Seeemorandum, ‘‘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: Scope Comments Decision
Memorandum for the Preliminary Determinations’’
dated November 15, 2017 (Preliminary Scope
Decision Memorandum).
4 See Memorandum, ‘‘Certain Cold-Drawn
Mechanical Tubing of Carbon and Alloy Steel from
E:\FR\FM\11DEN1.SGM
Continued
11DEN1
]]>Agencies
[Federal Register Volume 82, Number 236 (Monday, December 11, 2017)]
[Notices]
[Pages 58172-58175]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-26609]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-874]
Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel
From India: Final Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Department) determines that
countervailable subsidies are being
[[Page 58173]]
provided to producers and exporters of certain cold-drawn mechanical
tubing of carbon and alloy steel (cold-drawn mechanical tubing) from
India. The period of investigation is April 1, 2016, through March 31,
2017.
DATES: Applicable December 11, 2017.
FOR FURTHER INFORMATION CONTACT: Ryan Mullen or Carrie Bethea, AD/CVD
Operations, Office V, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW., Washington, DC 20230; telephone 202-482-5260 or 202-482-1491,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On September 25, 2017, the Department published the Preliminary
Determination in the Federal Register.\1\
---------------------------------------------------------------------------
\1\ See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy
Steel from India: Preliminary Affirmative Countervailing Duty
Determination, 82 FR 44558 (September 25, 2017) and accompanying
Preliminary Decision Memorandum (Preliminary Determination).
---------------------------------------------------------------------------
A summary of the events that occurred since the Department
published the Preliminary Determination, as well as a full discussion
of the issues raised by parties for this final determination, may be
found in the accompanying Issues and Decision Memorandum.\2\ The Issues
and Decision Memorandum is a public document, and is on file
electronically via Enforcement and Compliance's Antidumping and
Countervailing Duty Centralized Electronic Service System (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 Issues and Decision Memorandum can be accessed directly
at https://enforcement.trade.gov. The signed and electronic versions of
the Issues and Decision Memorandum are identical in content.
---------------------------------------------------------------------------
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination in the Countervailing Duty Investigation of
Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from
India,'' dated concurrently with this determination and hereby
adopted by this notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------
Scope Comments
In the Department's Preliminary Scope Decision Memorandum, we set
aside a period of time for parties to raise issues regarding product
coverage (i.e., scope) in scope case briefs or other written comments
on scope issues.\3\ Certain interested parties commented on the scope
of the investigation as it appeared in the Preliminary Scope Decision
Memorandum. For a summary of the product coverage comments and rebuttal
responses submitted to the record for this final determination, and
accompanying discussion and analysis of all comments timely received,
see the Final Scope Decision Memorandum.\4\ See the scope in Appendix I
to this notice.
---------------------------------------------------------------------------
\3\ See Memorandum, ``Scope Comments Decision Memorandum for the
Preliminary Determinations,'' dated November 15, 2017 (Preliminary
Scope Decision Memorandum).
\4\ See Memorandum, ``Scope Comments Decision Memorandum for the
Final Determinations,'' dated December 4, 2017 (Final Scope Decision
Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The products covered by this investigation are cold-drawn
mechanical tubing from India. For a complete description of the scope
of this investigation, see ``Scope of the Investigation,'' in Appendix
I of this notice.
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation, and the issues raised in
the case and rebuttal briefs filed by the parties, are discussed in the
Issues and Decision Memorandum. A list of the issues parties raised and
to which we responded in the Issues and Decisions Memorandum, is
attached to this notice at Appendix II.
Verification
The Department conducted verification of the questionnaire
responses submitted by the Government of India, Goodluck India Limited
(Goodluck), and Tube Investments of India Limited (Tube Investments)
between October 23, and October 31, 2017.
Use of Adverse Facts Available
If necessary information is not available on the record, or an
interested party withholds information, fails to provide requested
information in a timely manner, significantly impedes a proceeding by
not providing information, or information provided cannot be verified,
the Department will apply facts available, pursuant to section
776(a)(1) and (2) of the Tariff Act of 1930, as amended (the Act). For
purposes of this final determination, the Department relied, in part,
on facts available and, because certain respondents did not cooperate
by not acting to the best of their ability to respond to the
Department's requests for information, we drew an adverse inference,
where appropriate, in selecting from among the facts otherwise
available.\5\ A full discussion of our decision to rely on adverse
facts available is presented in the ``Use of Facts Otherwise Available
and Adverse Inferences'' section of the Issues and Decision Memorandum.
---------------------------------------------------------------------------
\5\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------
Changes Since the Preliminary Determination
Based on our analysis of the comments received from parties and the
minor corrections presented, as well as additional items discovered at
verification, we made certain changes to the respondents' subsidy rate
calculations set forth in the Preliminary Determination. For a
discussion of these changes, see the Issues and Decision Memorandum and
the Final Calculation Memoranda.\6\
---------------------------------------------------------------------------
\6\ See Issues and Decision Memorandum; see also Memorandum,
``Final Determination Calculation for Goodluck India Limited,''
dated December 4, 2017 (Goodluck Final Calculation Memorandum) and
Memorandum, ``Final Determination Calculation for Tube Investments
of India Limited,'' dated December 4, 2017 (Tube Investments Final
Calculation Memorandum) (collectively, Final Calculation Memoranda).
---------------------------------------------------------------------------
Final Determination
In accordance with section 705(c)(1)(B)(i) of the Act, we
calculated a rate for each exporter/producer of the subject merchandise
individually investigated, i.e., Goodluck and Tube Investments. In
accordance with section 705(c)(5)(A) of the Act, for companies not
individually investigated, we apply an ``all-others'' rate, which is
normally calculated by weighting the subsidy rates of the individual
companies selected as mandatory respondents by those companies' exports
of the subject merchandise to the United States. Under section
705(c)(5)(A)(i) of the Act, the ``all-others'' rate excludes zero and
de minimis rates calculated for the exporters and producers
individually investigated, as well as rates based entirely on facts
otherwise available. Where the rates for the individually investigated
companies are all zero or de minimis, or determined entirely using
facts otherwise available, section 705(c)(5)(A)(ii) of the Act
instructs the Department to establish an ``all-others'' rate using
``any reasonable method.''
In this investigation, the Department calculated individual
countervailable subsidy rates for Goodluck and Tube Investments 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 individual estimated subsidy rates calculated
for
[[Page 58174]]
the examined respondents using each company's publicly-ranged values
for the merchandise under consideration.
The final subsidy rates are as follows:
------------------------------------------------------------------------
Company Subsidy rate
------------------------------------------------------------------------
Goodluck India Limited.................................. 8.02
Tube Investments of India Limited....................... 42.60
All-Others.............................................. 22.41
------------------------------------------------------------------------
Disclosure
We intend to disclose the calculations performed within five days
of the date of publication of this notice to parties in this proceeding
in accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
section 703(d) of the Act, we instructed U.S. Customs and Border
Protection (CBP) to suspend liquidation of any entries of merchandise
under consideration from India that were entered, or withdrawn from
warehouse, for consumption on or after September 25, 2017, which is the
publication date in the Federal Register of the Preliminary
Determination.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order and will require a cash deposit of estimated countervailing
duties for such entries of subject merchandise in the amounts indicated
above. If the ITC determines that material injury, or threat of
material injury, does not exist, this proceeding will be terminated and
all estimated duties deposited or securities posted as a result of the
suspension of liquidation will be refunded or canceled.
U.S. International Trade Commission Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary information relating to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Acting Assistant Secretary for Enforcement and
Compliance.
Notification Regarding Administrative Protective Orders
This notice serves as a reminder to parties such to an APO of their
responsibility concerning the disposition of proprietary information
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely
written notification of the return or destruction of APO materials or,
alternatively, conversion to judicial protective order, is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation that is subject to sanction.
Notification to Interested Parties
This determination is published pursuant to section 705(d) and
777(i) of the Act and 19 CFR 351.210(c).
Dated: December 4, 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 331mm, 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 10305-4,
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 these investigations when it meets the physical description
set forth above.
Steel products included in the scope of these investigations 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,
nondestructive testing, deburring or chamfering, remains within the
scope of these investigations.
All products that meet the written physical description are
within the scope of these investigations 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 investigations 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 these investigations:
(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:
[[Page 58175]]
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 these investigations.
The products subject to the investigations 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 investigations is dispositive.
Appendix II
List of Topics Discussed in the Final Decision Memo
I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Subsidies Valuation Information
VII. Benchmarks and Interest Rates
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Analysis of Programs
X. Discussion of the Issues
Comment 1: The Department's Application of AFA for the GOI's
Failure to Provide Requested Information
Comment 2: Whether AAP and DDB Programs are Countervailable
Comment 3: The Department's Treatment of EPCGS
Comment 4: The Department's Treatment of SHIS
Comment 5: Whether the Benefit for MEIS is Determined at the
Date of Issuance
Comment 6: Whether the Deduction under 32-AC of the Income Tax
Act is Countervailable
Comment 7: The Department's Determination Regarding the Entry
Tax Exemption for the Iron and Steel Industry in Uttar Pradesh
Comment 8: The Denominator Used to Calculate Goodluck's DDB
Exemption
Comment 9: The Inclusion of Tube Investments' Non-Subject
Merchandise in the Benefit Calculation for DDB
Comment 10: The Department's Calculation Methodology for Tube
Investments' EPCGS Benefits
Comment 11: The Department's Application of AFA for Certain
Unreported Subsidies Discovered at Tube Investments' Verification
Comment 12: The Department's Calculation Methodology for the
Income Tax for Research and Development Program
Comment 13: The Department's Decision to Countervail Benefits
for Tube Investments' Non-Subject Merchandise
Comment 14: The Revised Sales and Subsidy Data Presented as
Minor Corrections
XI. Conclusion
[FR Doc. 2017-26609 Filed 12-8-17; 8:45 am]
BILLING CODE 3510-DS-P
