Large Diameter Welded Pipe From the Republic of Korea: Final Affirmative Countervailing Duty Determination, 6369-6372 [2019-03318]
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Federal Register / Vol. 84, No. 39 / Wednesday, February 27, 2019 / Notices
the ITC determines that material injury
or threat of material injury does not
exist, the proceeding will be terminated
and all cash deposits will be refunded.
If the ITC determines that such injury
does exist, Commerce will issue a CVD
order directing CBP to assess, upon
further instruction by Commerce,
countervailing duties on all imports of
the subject merchandise, other than
those produced and exported by
Borusan because its rate is de minimis,
that are entered, or withdrawn from
warehouse, for consumption on or after
the effective date of the suspension of
liquidation, as discussed above in the
‘‘Continuation of Suspension of
Liquidation’’ section.
Notification Regarding Administrative
Protective Orders
In the event that the ITC issues a final
negative injury determination, this
notice will serve as the only reminder
to parties subject to the APO of their
responsibility concerning the
destruction of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3). Timely
written notification of the return/
destruction of APO materials or
conversion to judicial protective order is
hereby requested. Failure to comply
with the regulations and terms of an
APO is a violation which is subject to
sanction.
This determination is issued and
published pursuant to sections 705(d)
and 777(i) of the Act.
Dated: February 19, 2019.
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.
amozie on DSK3GDR082PROD with NOTICES1
Appendix I
Scope of the Investigation
The merchandise covered by this
investigation is welded carbon and alloy steel
pipe (including stainless steel pipe), more
than 406.4 mm (16 inches) in nominal
outside diameter (large diameter welded
pipe), regardless of wall thickness, length,
surface finish, grade, end finish, or
stenciling. Large diameter welded pipe may
be used to transport oil, gas, slurry, steam, or
other fluids, liquids, or gases. It may also be
used for structural purposes, including, but
not limited to, piling. Specifically, not
included is large diameter welded pipe
produced only to specifications of the
American Water Works Association (AWWA)
for water and sewage pipe.
Large diameter welded pipe used to
transport oil, gas, or natural gas liquids is
normally produced to the American
Petroleum Institute (API) specification 5L.
Large diameter welded pipe may also be
produced to American Society for Testing
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and Materials (ASTM) standards A500, A252,
or A53, or other relevant domestic
specifications, grades and/or standards. Large
diameter welded pipe can be produced to
comparable foreign specifications, grades
and/or standards or to proprietary
specifications, grades and/or standards, or
can be non-graded material. All pipe meeting
the physical description set forth above is
covered by the scope of this investigation,
whether or not produced according to a
particular standard.
Subject merchandise also includes large
diameter welded pipe that has been further
processed in a third country, including but
not limited to coating, painting, notching,
beveling, cutting, punching, welding, or any
other processing that would not otherwise
remove the merchandise from the scope of
the investigation if performed in the country
of manufacture of the in-scope large diameter
welded pipe.
Excluded from the scope are any products
covered by the existing countervailing duty
order on welded line pipe from the Republic
of Turkey. See Welded Line Pipe from the
Republic of Turkey: Countervailing Duty
Order, 80 FR 75054 (December 1, 2015).
The large diameter welded pipe that is
subject to this investigation is currently
classifiable in the Harmonized Tariff
Schedule of the United States (HTSUS) under
subheadings 7305.11.1030, 7305.11.1060,
7305.11.5000, 7305.12.1030, 7305.12.1060,
7305.12.5000, 7305.19.1030, 7305.19.1060,
7305.19.5000, 7305.31.4000, 7305.31.6010,
7305.31.6090, 7305.39.1000 and
7305.39.5000. While the HTSUS subheadings
are provided for convenience and customs
purposes, the written description of the
scope of this investigation is dispositive.
Appendix II
List of Topics Discussed in the Issues and
Decision Memorandum
I. Summary
II. Background
Case History
Period of Investigation
Scope of the Investigation
III. Subsidies Valuation Information
A. Allocation Period
B. Attribution of Subsidies
C. Denominators
D. Loan Interest Rate Benchmarks and
Discount Rates
IV. Analysis of Programs
A. Programs Determined to Be
Countervailable
B. Programs Determined Not To Provide
Countervailable Benefits During the POI
C. Programs Determined Not To Be Used
During the POI
D. Programs Determined To Be Not
Countervailable in this Investigation
V. Analysis of Comments
Comment 1: Using Production Data
Provided by the Government of Turkey
in Analysis of Market Distortion
Comment 2: The Appropriate Methodology
To Calculate a ‘‘Tier 2’’ Benchmark
Comment 3: Application of Adverse Facts
Available to the Deduction From Taxable
Income for Export Revenue Program
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6369
Comment 4: Deducting Guarantee Fees in
Calculating the Benefit for the
Rediscount Program
Comment 5: Verification Corrections for
Borusan and HDM Celik
VI. Recommendation
[FR Doc. 2019–03344 Filed 2–26–19; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–580–898]
Large Diameter Welded Pipe From the
Republic of Korea: Final Affirmative
Countervailing Duty Determination
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) determines that
countervailable subsidies are being
provided to producers and exporters of
large diameter welded pipe (welded
pipe) from the Republic of Korea
(Korea). For information on the
estimated subsidy rates, see the ‘‘Final
Determination’’ section of this notice.
DATES: Applicable February 27, 2019.
FOR FURTHER INFORMATION CONTACT:
George Ayache or Robert Palmer, AD/
CVD Operations, Office VIII,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–2623 or
(202) 482–9068, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
The petitioners in this investigation
are American Cast Iron Pipe Company,
Berg Steel Pipe Corp./Berg Spiral Pipe
Corp, Dura-Bond Industries, Skyline
Steel, Stupp Corporation, Greens Bayou
Pipe Mill, LP, JSW Steel (USA) Inc., and
Trinity Products LLC (collectively, the
petitioners). In addition to the
Government of Korea (GOK), the
mandatory respondents in this
investigation are Husteel Co., Ltd.
(Husteel), Hyundai Steel Company
(Hyundai Steel), and SeAH Steel
Corporation (SeAH Steel).
The events that occurred since
Commerce published the Preliminary
Determination 1 on June 29, 2018, are
1 See Large Diameter Welded Pipe from India:
Preliminary Affirmative Countervailing Duty
Determination and Alignment of Final
Determination with Final Antidumping Duty
Determination, 83 FR 30690 (June 29, 2018)
(Preliminary Determination), and accompanying
Preliminary Decision Memorandum.
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Federal Register / Vol. 84, No. 39 / Wednesday, February 27, 2019 / Notices
discussed in the Issues and Decision
Memorandum, which is hereby adopted
by this notice.2 The Issues and Decision
Memorandum also details the changes
we made since the Preliminary
Determination to the subsidy rates
calculated for the mandatory
respondents and all other producers/
exporters. 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 and electronic versions of
the Issues and Decision Memorandum
are identical in content.
Commerce exercised its discretion to
toll all deadlines affected by the partial
federal government closure from
December 22, 2018, through the
resumption of operations on January 29,
2019.3 If the new deadline falls on a
non-business day, in accordance with
Commerce’s practice, the deadline will
become the next business day. The
revised deadline for the final
determination of this investigation is
now February 19, 2019.
Period of Investigation
The period of investigation is January
1, 2017, through December 31, 2017.
Scope of the Investigation
The product covered by this
investigation is welded pipe from Korea.
For a full description of the scope of this
investigation, see the ‘‘Scope of the
Investigation’’ in Appendix I of this
notice.
amozie on DSK3GDR082PROD with NOTICES1
Scope Comments
During the course of this investigation
and the concurrent less-than-fair-value
investigations of large diameter welded
pipe from Canada, Greece, Korea, the
2 See Memorandum, ‘‘Large Diameter Welded
Pipe from Korea: Issues and Decision Memorandum
for the Final Affirmative Determination of the
Countervailing Duty Investigation,’’ dated
concurrently with this determination (Issues and
Decision Memorandum).
3 See Memorandum to the Record from 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, ‘‘Deadlines Affected by the Partial
Shutdown of the Federal Government,’’ dated
January 28, 2019. All deadlines in this segment of
the proceeding have been extended by 40 days.
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People’s Republic of China (China) and
Turkey, and the concurrent
countervailing duty (CVD)
investigations of large diameter welded
pipe from China, India, Korea and
Turkey, Commerce received scope
comments from interested parties.
Commerce issued a Preliminary Scope
Decision Memorandum 4 to address
these comments. In the Preliminary
Determination, Commerce set aside a
period of time for parties to address
scope issues in scope case and rebuttal
briefs.5 No interested parties submitted
comments regarding the Preliminary
Scope Decision Memorandum.
Therefore, for this final determination,
the scope of this investigation remains
unchanged from that published in the
Preliminary Determination.
Analysis of Subsidy Programs and
Comments Received
The subsidy programs under
investigation and the issues raised in
the case and rebuttal briefs by parties in
this investigation are discussed in the
Issues and Decision Memorandum. A
list of the issues that parties raised, and
to which we responded in the Issues
and Decision Memorandum, is attached
to this notice at Appendix II.
Methodology
Commerce conducted this
investigation in accordance with section
701 of the Tariff Act of 1930, as
amended (the Act). For each of the
subsidy programs found
countervailable, Commerce determines
that there is a subsidy, i.e. , a financial
contribution by an ‘‘authority’’ that
gives rise to a benefit to the recipient,
and that the subsidy is specific.6 For a
full description of the methodology
underlying our final determination, see
the Issues and Decision Memorandum.
In making these findings, Commerce
relied, in part, on facts available.
Further, because one or more
respondents did not act to the best of
their ability to respond to Commerce’s
requests for information, an adverse
inference was drawn, where
appropriate, in selecting from among the
facts otherwise available.7 For further
4 See Memorandum, ‘‘Scope Comments Decision
Memorandum for the Preliminary Determinations,’’
dated June 19, 2018 (Preliminary Scope Decision
Memorandum).
5 See Large Diameter Welded Pipe from the
Republic of Korea: Preliminary Determination of
Sales at Less than Fair Value and Postponement of
Final Determination, 83 FR 43651 (August 27,
2018).
6 See sections 771(5)(B) and (D) of the Act
regarding financial contribution; section 771(5)(E)
of the Act regarding benefit; and section 771(5A) of
the Act regarding specificity.
7 See sections 776(a),(b), and 782(d) of the Act.
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information, see ‘‘Use of Facts
Otherwise Available and Adverse
Inferences’’ in the Issues and Decision
Memorandum.
Verification
As provided in section 782(i) of the
Act, during September 2018, Commerce
verified the subsidy information
reported by the GOK, Husteel, Hyundai
Steel, and SeAH Steel. We used
standard verification procedures,
including an examination of relevant
accounting records and original source
documents provided by the
respondents.8
Changes Since the Preliminary
Determination
Based on our review and analysis of
the comments received from parties,
verification, and the minor corrections
presented at verification, we made
certain changes to the respondents’
subsidy rate calculations. As a result of
these changes, Commerce has also
revised the ‘‘all-others’’ rate. For a
discussion of these changes, see the
Issues and Decision Memorandum.
Final Determination
In accordance with section
705(c)(l)(B)(i) of the Act, we calculated
a rate for Husteel and Hyundai Steel,
two producers/exporters of subject
merchandise selected for individual
examination in this investigation.
Commerce assigned a rate based entirely
on facts otherwise available with
adverse inferences pursuant to section
776 of the Act to SeAH Steel.
Section 705(c)(5)(A) of the Act
provides that in the final determination,
Commerce shall determine an estimated
all-others rate for companies not
individually examined. This rate shall
be an amount equal to the weighted
average of the estimated subsidy rates
established for those companies
individually examined, excluding any
zero and de minimis rates and any rates
based entirely under section 776 of the
Act. 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
Commerce to establish an all-others rate
using ‘‘any reasonable method.’’
According to section 705(c)(5)(A)(ii) of
8 See Memoranda, ‘‘Verification of the
Questionnaire Responses of the Government of
Korea,’’ ‘‘Verification of the Questionnaire
Responses of Husteel Co., Ltd.,’’ ‘‘Verification of the
Questionnaire Responses of Hyundai Corporation,’’
‘‘Verification of the Questionnaire Responses of
Hyundai Steel Company,’’ and ‘‘Verification of the
Questionnaire Responses of SeAH Steel Corporation
and ESAB SeAH Corporation,’’ all dated October
26, 2018.
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Federal Register / Vol. 84, No. 39 / Wednesday, February 27, 2019 / Notices
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the Act, one such ‘‘reasonable method’’
includes ‘‘averaging the weighted
average countervailable subsidy rates
determined for the exporters and
producers individually investigated.’’
Here, the countervailable subsidy rates
for all of the individually investigated
respondents are zero or de minimis or
are based on adverse facts available
(AFA). Therefore, consistent with
section 705(c)(5)(A)(ii) of the Act, we
have averaged the rates of the three
individually investigated respondents to
establish the estimated all others rate.
This approach is also consistent with
our practice in other investigations.9
Commerce determines the total
estimated net countervailable subsidy
rates to be:
liquidation of all entries from June 29,
2018, through October 25, 2018.
If the U.S. International Trade
Commission (ITC) issues a final
affirmative injury determination, we
will issue a CVD order, reinstate the
suspension of liquidation under section
706(a) of the Act, and 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.
ITC Notification
In accordance with section 705(d) of
Subsidy rate
the Act, Commerce will notify the ITC
Company
(percent)
of its determination. In addition, we are
Husteel Co., Ltd ....................
* 0.01 making available to the ITC all nonHyundai Steel Company .......
* 0.44 privileged and non-proprietary
SeAH Steel Corporation .......
27.42 information related to this investigation.
All-Others Rate .....................
9.29 We will allow the ITC access to all
privileged and business proprietary
* (de minimis).
information in our files, provided the
ITC confirms that it will not disclose
Disclosure
such information, either publicly or
under an administrative protective order
Commerce will disclose the
calculations performed within five days (APO), without the written consent of
the Assistant Secretary for Enforcement
of the date of publication of this notice
and Compliance.
to parties in this proceeding in
Because the final determination in
accordance with 19 CFR 351.224(b).
this proceeding is affirmative, in
Continuation of Suspension of
accordance with section 705(b) of the
Liquidation
Act, the ITC will make its final
determination as to whether the
As a result of our Preliminary
domestic industry in the United States
Determination and pursuant to section
is materially injured, or threatened with
703(d)(1)(B) and (d)(2) of the Act,
Commerce instructed U.S. Customs and material injury, by reason of imports of
welded pipe from Korea no later than 45
Border Protection (CBP) to suspend
days after our final determination. If the
liquidation of entries of subject
ITC determines that material injury or
merchandise as described in the scope
threat of material injury does not exist,
of the investigation section entered, or
the proceeding will be terminated and
withdrawn from warehouse, for
all cash deposits will be refunded. If the
consumption on or after the date of
ITC determines that such injury does
publication of the Preliminary
exist, Commerce will issue a CVD order
Determination in the Federal Register ,
except for Husteel and Hyundai Steel.10 directing CBP to assess, upon further
In accordance with section 703(d) of the instruction by Commerce,
countervailing duties on all imports of
Act, we issued instructions to CBP to
the subject merchandise, other than
discontinue the suspension of
liquidation for CVD purposes for subject those produced and exported by Husteel
and Hyundai Steel because their rates
merchandise entered, or withdrawn
from warehouse, on or after October 26, are de minimis , that are entered, or
withdrawn from warehouse, for
2018, but to continue the suspension of
consumption on or after the effective
date of the suspension of liquidation, as
9 See, e.g., Countervailing Duty Investigation of
discussed above in the ‘‘Continuation of
Certain Corrosion-Resistant Steel Products from
Suspension of Liquidation’’ section.
Italy: Final Affirmative Determination and Final
Affirmative Critical Circumstances, in Part, 81 FR
35326, 35327 (June 2, 2016).
10 See Preliminary Determination, 83 FR at 30694.
Because the rates for Husteel and Hyundai Steel
were zero or de minimis in the Preliminary
Determination, Commerce did not suspend entries
of merchandise from these companies.
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Notification Regarding Administrative
Protective Orders
In the event that the ITC issues a final
negative injury determination, this
notice will serve as the only reminder
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6371
to parties subject to an APO of their
responsibility concerning the
destruction of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3). Timely
written notification of the return/
destruction of APO materials or
conversion to judicial protective order is
hereby requested. Failure to comply
with the regulations and terms of an
APO is a violation which is subject to
sanction.
This determination is issued and
published pursuant to sections 705(d)
and 777(i) of the Act.
Dated: February 19, 2019
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 merchandise covered by this
investigation is welded carbon and alloy steel
pipe (including stainless steel pipe), more
than 406.4 mm (16 inches) in nominal
outside diameter (large diameter welded
pipe), regardless of wall thickness, length,
surface finish, grade, end finish, or
stenciling. Large diameter welded pipe may
be used to transport oil, gas, slurry, steam, or
other fluids, liquids, or gases. It may also be
used for structural purposes, including, but
not limited to, piling. Specifically, not
included is large diameter welded pipe
produced only to specifications of the
American Water Works Association (AWWA)
for water and sewage pipe.
Large diameter welded pipe used to
transport oil, gas, or natural gas liquids is
normally produced to the American
Petroleum Institute (API) specification 5L.
Large diameter welded pipe may also be
produced to American Society for Testing
and Materials (ASTM) standards A500, A252,
or A53, or other relevant domestic
specifications, grades and/or standards. Large
diameter welded pipe can be produced to
comparable foreign specifications, grades
and/or standards or to proprietary
specifications, grades and/or standards, or
can be non-graded material. All pipe meeting
the physical description set forth above is
covered by the scope of this investigation,
whether or not produced according to a
particular standard.
Subject merchandise also includes large
diameter welded pipe that has been further
processed in a third country, including but
not limited to coating, painting, notching,
beveling, cutting, punching, welding, or any
other processing that would not otherwise
remove the merchandise from the scope of
the investigation if performed in the country
of manufacture of the in-scope large diameter
welded pipe.
The large diameter welded pipe that is
subject to this investigation is currently
classifiable in the Harmonized Tariff
Schedule of the United States (HTSUS) under
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subheadings 7305.11.1030, 7305.11.1060,
7305.11.5000, 7305.12.1030, 7305.12.1060,
7305.12.5000, 7305.19.1030, 7305.19.1060,
7305.19.5000, 7305.31.4000, 7305.31.6010,
7305.31.6090, 7305.39.1000 and
7305.39.5000. While the HTSUS subheadings
are provided for convenience and customs
purposes, the written description of the
scope of this investigation is dispositive.
Appendix II
List of Topics Discussed in the Issues and
Decision Memorandum
I. Summary
II. Background
III. Use of Facts Otherwise Available and
Adverse Inferences
IV. Subsidies Valuation
V. Analysis of Programs
VI. Analysis of Comments
Comment 1: Application of Adverse Facts
Available (AFA) to SeAH Steel for
Unreported Affiliates
Comment 2: Application of AFA to SeAH
Steel for SPP Pipe
Comment 3: Whether the Demand
Response Resources (DRR) Program is
Countervailable
Comment 4: Whether Tax Credits under
Restriction of Special Taxation Act
(RSTA) Articles 25(2), 25(3), and 26 Are
Countervailable
Comment 5: Whether a Benefit Exists in
the Modal Shift Program
VII. Recommendation
[FR Doc. 2019–03318 Filed 2–26–19; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–428–844]
Carbon and Alloy Steel Cut-to-Length
Plate From the Federal Republic of
Germany: Preliminary Results and
Partial Rescission of the Antidumping
Duty Administrative Review; 2016–
2018
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) preliminary determines
that sales of certain carbon and alloy
steel cut-to-length plate (CTL plate)
from the Federal Republic of Germany
(Germany) were made at less than
normal value during the period of
review (POR), November 14, 2016,
through April 30, 2018. We invite
interested parties to comment on these
preliminary results.
DATES: Applicable February 27, 2019.
FOR FURTHER INFORMATION CONTACT:
David Goldberger or Ross Belliveau,
AD/CVD Operations, Office II,
Enforcement and Compliance,
International Trade Administration,
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AGENCY:
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17:07 Feb 26, 2019
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U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–4136 or
(202) 482–4952, respectively.
SUPPLEMENTARY INFORMATION:
Scope of the Order
The products covered by the order are
certain carbon and alloy steel hot-rolled
or forged flat plate products not in coils,
whether or not painted, varnished, or
coated with plastics or other nonmetallic substances from Germany.
Products subject to the order are
currently classified in the Harmonized
Tariff Schedule of the United States
(HTSUS) under item numbers:
7208.40.3030, 7208.40.3060,
7208.51.0030, 7208.51.0045,
7208.51.0060, 7208.52.0000,
7211.13.0000, 7211.14.0030,
7211.14.0045, 7225.40.1110,
7225.40.1180, 7225.40.3005,
7225.40.3050, 7226.20.0000, and
7226.91.5000. Although the HTSUS
subheadings are provided for
convenience and customs purposes, the
written description of the merchandise
subject to this scope is dispositive.1
Methodology
Commerce is conducting this review
in accordance with sections 751(a)(1)(B)
and (2) of the Tariff Act of 1930, as
amended (the Act). Pursuant to sections
776(a) and (b) of the Act, Commerce
preliminarily relied upon the facts
otherwise available with adverse
inferences (AFA) to determine the
margin for Ilsenburger Grobblech
GmbH, Salzgitter Mannesmann
Grobblech GmbH, Salzgitter Flachstahl
GmbH, and Salzgitter Mannesmann
International GmbH (collectively,
Salzgitter), the sole remaining
mandatory respondent selected for
review, because Salzgitter did not
respond to Commerce’s questionnaire in
this administrative review. For a
complete explanation of the
methodology and analysis underlying
our preliminary application of AFA to
Salzgitter, see the Preliminary Decision
Memorandum. 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
1 For a full description of the scope of the order,
see Memorandum entitled ‘‘Decision Memorandum
for the Preliminary Results and Partial Rescission
of the 2016–2018 Administrative Review of the
Antidumping Duty Order on Certain Carbon and
Alloy Steel Cut-to-Length Plate from the Federal
Republic of Germany,’’ dated concurrently with,
and hereby adopted by, this notice (Preliminary
Decision Memorandum).
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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 found at https://
enforcement.trade.gov/frn/. The signed
Preliminary Decision Memorandum and
the electronic version of the Preliminary
Decision Memorandum are identical in
content. A list of the topics discussed in
the Preliminary Decision Memorandum
is attached as the Appendix to this
notice.
Partial Rescission of Review
On October 22, 2018, the petitioners 2
withdrew their review requests for the
following companies: AG der Dillinger
Hu¨ttenwerke (Dillinger); Perficon Steel
GmbH (Perficon); Reiner Brach GmbH &
Co. KG (Reiner Brach); Rudolf
Rafflenbeul Stahlwarenfabrik GmbH &
Co (Rudolf Rafflenbeul); Tenova
(TAKRAF GmbH Lauchhammer)
(Tenova); ThyssenKrupp Steel Europe
AG (ThyssenKrupp Steel);
ThyssenKrupp Schulte GmbH
(TyssenKrupp Schulte); UPC Universal
Piping GmbH (UPC); and VETTER
Umformtechnik GmbH (VETTER).3 In
accordance with 19 CFR 351.213(d)(1),
Commerce is rescinding this review, in
part, with respect to the following
companies: Dillinger, Perficon, Reiner
Brach, Rudolf Rafflenbeul, Tenova,
ThyssenKrupp Steel, ThyssenKrupp
Schulte, UPC, and VETTER.
Preliminary Results of the Review
As a result of this review, Commerce
preliminarily determines that a
dumping margin of 174.03 percent
exists for Salzgitter for the period
November 14, 2016, through April 30,
2018.
Disclosure
Normally, Commerce discloses to
interested parties the calculations
performed in connection with the
preliminary results within five days of
the date of publication of the notice of
preliminary results in the Federal
Register, in accordance with 19 CFR
2 Enterprises LLC and Nucor Corporation,
domestic producers and certain of the petitioners in
the underlying less-than-fair-value investigation
(hereafter, the petitioners)
3 See Letter from the petitioners, ‘‘Carbon and
Alloy Steel Cut-To-Length Plate from Germany
Withdrawal of Request for Administrative Review,
dated October 22, 2018. The petitioners also
withdrew their review request for Ilsenburger
Grobblech GmbH (ILG). However, this company is
one of the Salzgitter entities and the petitioners
specifically indicated their intent to continue the
review with respect to Salzgitter. Accordingly, we
are not rescinding the administrative review with
respect to ILG.
E:\FR\FM\27FEN1.SGM
27FEN1
]]>Agencies
[Federal Register Volume 84, Number 39 (Wednesday, February 27, 2019)]
[Notices]
[Pages 6369-6372]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03318]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-898]
Large Diameter Welded Pipe From the Republic of Korea: Final
Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of large diameter welded pipe (welded pipe) from the Republic of Korea
(Korea). For information on the estimated subsidy rates, see the
``Final Determination'' section of this notice.
DATES: Applicable February 27, 2019.
FOR FURTHER INFORMATION CONTACT: George Ayache or Robert Palmer, AD/CVD
Operations, Office VIII, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-2623 or (202)
482-9068, respectively.
SUPPLEMENTARY INFORMATION:
Background
The petitioners in this investigation are American Cast Iron Pipe
Company, Berg Steel Pipe Corp./Berg Spiral Pipe Corp, Dura-Bond
Industries, Skyline Steel, Stupp Corporation, Greens Bayou Pipe Mill,
LP, JSW Steel (USA) Inc., and Trinity Products LLC (collectively, the
petitioners). In addition to the Government of Korea (GOK), the
mandatory respondents in this investigation are Husteel Co., Ltd.
(Husteel), Hyundai Steel Company (Hyundai Steel), and SeAH Steel
Corporation (SeAH Steel).
The events that occurred since Commerce published the Preliminary
Determination \1\ on June 29, 2018, are
[[Page 6370]]
discussed in the Issues and Decision Memorandum, which is hereby
adopted by this notice.\2\ The Issues and Decision Memorandum also
details the changes we made since the Preliminary Determination to the
subsidy rates calculated for the mandatory respondents and all other
producers/exporters. 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 and electronic versions of the Issues and
Decision Memorandum are identical in content.
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\1\ See Large Diameter Welded Pipe from India: Preliminary
Affirmative Countervailing Duty Determination and Alignment of Final
Determination with Final Antidumping Duty Determination, 83 FR 30690
(June 29, 2018) (Preliminary Determination), and accompanying
Preliminary Decision Memorandum.
\2\ See Memorandum, ``Large Diameter Welded Pipe from Korea:
Issues and Decision Memorandum for the Final Affirmative
Determination of the Countervailing Duty Investigation,'' dated
concurrently with this determination (Issues and Decision
Memorandum).
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Commerce exercised its discretion to toll all deadlines affected by
the partial federal government closure from December 22, 2018, through
the resumption of operations on January 29, 2019.\3\ If the new
deadline falls on a non-business day, in accordance with Commerce's
practice, the deadline will become the next business day. The revised
deadline for the final determination of this investigation is now
February 19, 2019.
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\3\ See Memorandum to the Record from 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, ``Deadlines
Affected by the Partial Shutdown of the Federal Government,'' dated
January 28, 2019. All deadlines in this segment of the proceeding
have been extended by 40 days.
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Period of Investigation
The period of investigation is January 1, 2017, through December
31, 2017.
Scope of the Investigation
The product covered by this investigation is welded pipe from
Korea. For a full description of the scope of this investigation, see
the ``Scope of the Investigation'' in Appendix I of this notice.
Scope Comments
During the course of this investigation and the concurrent less-
than-fair-value investigations of large diameter welded pipe from
Canada, Greece, Korea, the People's Republic of China (China) and
Turkey, and the concurrent countervailing duty (CVD) investigations of
large diameter welded pipe from China, India, Korea and Turkey,
Commerce received scope comments from interested parties. Commerce
issued a Preliminary Scope Decision Memorandum \4\ to address these
comments. In the Preliminary Determination, Commerce set aside a period
of time for parties to address scope issues in scope case and rebuttal
briefs.\5\ No interested parties submitted comments regarding the
Preliminary Scope Decision Memorandum. Therefore, for this final
determination, the scope of this investigation remains unchanged from
that published in the Preliminary Determination.
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\4\ See Memorandum, ``Scope Comments Decision Memorandum for the
Preliminary Determinations,'' dated June 19, 2018 (Preliminary Scope
Decision Memorandum).
\5\ See Large Diameter Welded Pipe from the Republic of Korea:
Preliminary Determination of Sales at Less than Fair Value and
Postponement of Final Determination, 83 FR 43651 (August 27, 2018).
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Issues and Decision Memorandum. A list of the issues
that parties raised, and to which we responded in the Issues and
Decision Memorandum, is attached to this notice at Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found countervailable, Commerce determines that there
is a subsidy, i.e. , a financial contribution by an ``authority'' that
gives rise to a benefit to the recipient, and that the subsidy is
specific.\6\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
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\6\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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In making these findings, Commerce relied, in part, on facts
available. Further, because one or more respondents did not act to the
best of their ability to respond to Commerce's requests for
information, an adverse inference was drawn, where appropriate, in
selecting from among the facts otherwise available.\7\ For further
information, see ``Use of Facts Otherwise Available and Adverse
Inferences'' in the Issues and Decision Memorandum.
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\7\ See sections 776(a),(b), and 782(d) of the Act.
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Verification
As provided in section 782(i) of the Act, during September 2018,
Commerce verified the subsidy information reported by the GOK, Husteel,
Hyundai Steel, and SeAH Steel. We used standard verification
procedures, including an examination of relevant accounting records and
original source documents provided by the respondents.\8\
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\8\ See Memoranda, ``Verification of the Questionnaire Responses
of the Government of Korea,'' ``Verification of the Questionnaire
Responses of Husteel Co., Ltd.,'' ``Verification of the
Questionnaire Responses of Hyundai Corporation,'' ``Verification of
the Questionnaire Responses of Hyundai Steel Company,'' and
``Verification of the Questionnaire Responses of SeAH Steel
Corporation and ESAB SeAH Corporation,'' all dated October 26, 2018.
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Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, verification, and the minor corrections presented at
verification, we made certain changes to the respondents' subsidy rate
calculations. As a result of these changes, Commerce has also revised
the ``all-others'' rate. For a discussion of these changes, see the
Issues and Decision Memorandum.
Final Determination
In accordance with section 705(c)(l)(B)(i) of the Act, we
calculated a rate for Husteel and Hyundai Steel, two producers/
exporters of subject merchandise selected for individual examination in
this investigation. Commerce assigned a rate based entirely on facts
otherwise available with adverse inferences pursuant to section 776 of
the Act to SeAH Steel.
Section 705(c)(5)(A) of the Act provides that in the final
determination, Commerce shall determine an estimated all-others rate
for companies not individually examined. This rate shall be an amount
equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act. 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 Commerce to establish an all-others rate using ``any
reasonable method.'' According to section 705(c)(5)(A)(ii) of
[[Page 6371]]
the Act, one such ``reasonable method'' includes ``averaging the
weighted average countervailable subsidy rates determined for the
exporters and producers individually investigated.'' Here, the
countervailable subsidy rates for all of the individually investigated
respondents are zero or de minimis or are based on adverse facts
available (AFA). Therefore, consistent with section 705(c)(5)(A)(ii) of
the Act, we have averaged the rates of the three individually
investigated respondents to establish the estimated all others rate.
This approach is also consistent with our practice in other
investigations.\9\
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\9\ See, e.g., Countervailing Duty Investigation of Certain
Corrosion-Resistant Steel Products from Italy: Final Affirmative
Determination and Final Affirmative Critical Circumstances, in Part,
81 FR 35326, 35327 (June 2, 2016).
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Commerce determines the total estimated net countervailable subsidy
rates to be:
------------------------------------------------------------------------
Subsidy rate
Company (percent)
------------------------------------------------------------------------
Husteel Co., Ltd........................................ * 0.01
Hyundai Steel Company................................... * 0.44
SeAH Steel Corporation.................................. 27.42
All-Others Rate......................................... 9.29
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* (de minimis).
Disclosure
Commerce will 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)(1)(B) and (d)(2) of the Act, Commerce instructed U.S.
Customs and Border Protection (CBP) to suspend liquidation of entries
of subject merchandise as described in the scope of the investigation
section entered, or withdrawn from warehouse, for consumption on or
after the date of publication of the Preliminary Determination in the
Federal Register , except for Husteel and Hyundai Steel.\10\ In
accordance with section 703(d) of the Act, we issued instructions to
CBP to discontinue the suspension of liquidation for CVD purposes for
subject merchandise entered, or withdrawn from warehouse, on or after
October 26, 2018, but to continue the suspension of liquidation of all
entries from June 29, 2018, through October 25, 2018.
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\10\ See Preliminary Determination, 83 FR at 30694. Because the
rates for Husteel and Hyundai Steel were zero or de minimis in the
Preliminary Determination, Commerce did not suspend entries of
merchandise from these companies.
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If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order, reinstate
the suspension of liquidation under section 706(a) of the Act, and
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.
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its determination. In addition, we are making available to
the ITC all non-privileged and non-proprietary information related to
this investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Enforcement and Compliance.
Because the final determination in this proceeding is affirmative,
in accordance with section 705(b) of the Act, the ITC will make its
final determination as to whether the domestic industry in the United
States is materially injured, or threatened with material injury, by
reason of imports of welded pipe from Korea no later than 45 days after
our final determination. If the ITC determines that material injury or
threat of material injury does not exist, the proceeding will be
terminated and all cash deposits will be refunded. If the ITC
determines that such injury does exist, Commerce will issue a CVD order
directing CBP to assess, upon further instruction by Commerce,
countervailing duties on all imports of the subject merchandise, other
than those produced and exported by Husteel and Hyundai Steel because
their rates are de minimis , that are entered, or withdrawn from
warehouse, for consumption on or after the effective date of the
suspension of liquidation, as discussed above in the ``Continuation of
Suspension of Liquidation'' section.
Notification Regarding Administrative Protective Orders
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return/destruction of
APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act.
Dated: February 19, 2019
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 merchandise covered by this investigation is welded carbon
and alloy steel pipe (including stainless steel pipe), more than
406.4 mm (16 inches) in nominal outside diameter (large diameter
welded pipe), regardless of wall thickness, length, surface finish,
grade, end finish, or stenciling. Large diameter welded pipe may be
used to transport oil, gas, slurry, steam, or other fluids, liquids,
or gases. It may also be used for structural purposes, including,
but not limited to, piling. Specifically, not included is large
diameter welded pipe produced only to specifications of the American
Water Works Association (AWWA) for water and sewage pipe.
Large diameter welded pipe used to transport oil, gas, or
natural gas liquids is normally produced to the American Petroleum
Institute (API) specification 5L. Large diameter welded pipe may
also be produced to American Society for Testing and Materials
(ASTM) standards A500, A252, or A53, or other relevant domestic
specifications, grades and/or standards. Large diameter welded pipe
can be produced to comparable foreign specifications, grades and/or
standards or to proprietary specifications, grades and/or standards,
or can be non-graded material. All pipe meeting the physical
description set forth above is covered by the scope of this
investigation, whether or not produced according to a particular
standard.
Subject merchandise also includes large diameter welded pipe
that has been further processed in a third country, including but
not limited to coating, painting, notching, beveling, cutting,
punching, welding, or any other processing that would not otherwise
remove the merchandise from the scope of the investigation if
performed in the country of manufacture of the in-scope large
diameter welded pipe.
The large diameter welded pipe that is subject to this
investigation is currently classifiable in the Harmonized Tariff
Schedule of the United States (HTSUS) under
[[Page 6372]]
subheadings 7305.11.1030, 7305.11.1060, 7305.11.5000, 7305.12.1030,
7305.12.1060, 7305.12.5000, 7305.19.1030, 7305.19.1060,
7305.19.5000, 7305.31.4000, 7305.31.6010, 7305.31.6090, 7305.39.1000
and 7305.39.5000. While the HTSUS subheadings are provided for
convenience and customs purposes, the written description of the
scope of this investigation is dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Use of Facts Otherwise Available and Adverse Inferences
IV. Subsidies Valuation
V. Analysis of Programs
VI. Analysis of Comments
Comment 1: Application of Adverse Facts Available (AFA) to SeAH
Steel for Unreported Affiliates
Comment 2: Application of AFA to SeAH Steel for SPP Pipe
Comment 3: Whether the Demand Response Resources (DRR) Program
is Countervailable
Comment 4: Whether Tax Credits under Restriction of Special
Taxation Act (RSTA) Articles 25(2), 25(3), and 26 Are
Countervailable
Comment 5: Whether a Benefit Exists in the Modal Shift Program
VII. Recommendation
[FR Doc. 2019-03318 Filed 2-26-19; 8:45 am]
BILLING CODE 3510-DS-P
