Large Diameter Welded Pipe From the Republic of Turkey: Final Affirmative Countervailing Duty Determination, 6367-6369 [2019-03344]
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amozie on DSK3GDR082PROD with NOTICES1
Federal Register / Vol. 84, No. 39 / Wednesday, February 27, 2019 / Notices
such purposes as this is intended to be
used, that was being manufactured in
the United States at the time of order.
Reasons: The instrument will be used
for a basic scientific research project
that will study neurtrinos, a type of
elementary particle. There are three
known types of neutrinos in the
universe, although there could be more
that have not yet been observed. The
phenomena to be studied are the
number of neutrino types and
interaction cross-sections for the
currently known neutrino types. Two
detectors are required to perform the
neutrino oscillation studies: The Short
Baseline Near Detector (SBND) is one of
these detectors. The primary objective of
the SBN program is to look for evidence
of neutrino oscillations, over distances
of 1 kilometer or less, and if found to
measure the oscillation parameters. The
SBND TPC is a complex and unique
instrument. Justification for Duty-Free
Entry: There are no instruments of the
same general category manufactured in
the United States.
Docket Number: 18–008. Applicant:
Lawrence Berkeley National Laboratory,
Berkeley, CA 94720. Instrument: In
Vacuum Insertion Device (aka
Undulator). Manufacturer: Hitachi
Metals America, LLC, Japan. Intended
Use: See notice at 83 FR 62838,
December 6, 2018. Comments: None
received. Decision: Approved. We know
of no instruments of equivalent
scientific value to the foreign
instruments described below, for such
purposes as this is intended to be used,
that was being manufactured in the
United States at the time of order.
Reasons: The instrument will be
installed in Sector 2.0 of the Advanced
Light Source (ALS) facility at Lawrence
Berkeley Laboratory, for use as a high
brightness beamline source for the
sector. Sector 2.0 of the ALS is
dedicated to the study and analysis of
protein crystallography. The objectives
pursued are to determine the atomicresolution, three-dimensional structures
of proteins and nucleic acids-the
building blocks of life-as well as
complexes of these molecules, the
interactions of which give rise to
biological processes. Justification for
Duty-Free Entry: There are no
instruments of the same general
category manufactured in the United
States.
Dated: February 22, 2019.
Gregory W. Campbell,
Director, Subsidies Enforcement, Enforcement
and Compliance.
[FR Doc. 2019–03423 Filed 2–26–19; 8:45 am]
BILLING CODE 3510–DS–P
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DEPARTMENT OF COMMERCE
International Trade Administration
[C–489–834]
Large Diameter Welded Pipe From the
Republic of Turkey: 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 Turkey
(Turkey).
AGENCY:
Applicable February 27, 2019.
Ross
Belliveau or Ajay Menon, AD/CVD
Operations, Office II, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
(202) 482–4952, or (202) 482–1993,
respectively.
DATES:
FOR FURTHER INFORMATION CONTACT:
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 Turkey, the mandatory
respondents in this investigation are
Borusan Mannesmann Boru Sanayi ve
Ticaret A.S. (Borusan) and HDM Celik
Boru Sanayi ve Ticaret A.S. (HDM
Celik).
The events that occurred since
Commerce published the Preliminary
Determination 1 on June 29, 2018, are
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
1 See Large Diameter Welded Pipe from the
Republic of Turkey: Preliminary Affirmative
Countervailing Duty Determination and Alignment
of Final Determination with Final Antidumping
Duty Determination, 83 FR 30697 (June 29, 2018)
(Preliminary Determination), and accompanying
Preliminary Decision Memorandum.
2 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final Determination in the
Countervailing Duty Investigation of Large Diameter
Welded Pipe from the Republic of Turkey,’’ dated
concurrently with this determination (Issues and
Decision Memorandum).
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6367
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 Issues and Decision
Memorandum and the electronic
version 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 scope of the investigation is
welded pipe from Turkey. For a
complete description of the scope of the
investigation, see Appendix I.
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 to address these
comments.4 In the Preliminary
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.
4 See Memorandum, ‘‘Scope Comments Decision
Memorandum for the Preliminary Determinations,’’
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Federal Register / Vol. 84, No. 39 / Wednesday, February 27, 2019 / Notices
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 as 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.
Verification
amozie on DSK3GDR082PROD with NOTICES1
As provided in section 782(i) of the
Tariff Act of 1930, as amended (the Act),
during July 2018, Commerce verified the
subsidy information reported by the
Government of Turkey, Borusan, and
HDM Celik. We used standard
verification procedures, including an
examination of relevant accounting
records and original source documents
provided by the respondents.7
dated June 19, 2018 (Preliminary Scope Decision
Memorandum).
5 See Large Diameter Welded Pipe from the
Republic of Turkey: Preliminary Determination of
Sales at Less than Fair Value and Postponement of
Final Determination, 83 FR 43646 (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 Memoranda: ‘‘Verification of the
Questionnaire Responses of the Government of
Turkey (GOT),’’ dated September 17, 2018;
‘‘Verification of the Questionnaire Responses of
Verification of the Questionnaire Responses of
Borusan Mannesmann Boru Sanayi ve Ticaret A.S.
(Borusan),’’ dated October 2, 2018; and
‘‘Verification of the Questionnaire Responses of
HDM Celik (HDM Celik),’’ dated October 5, 2018.
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Changes Since the Preliminary
Determination
Based on our review and analysis of
the comments received from parties and
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
and the Final Analysis Memoranda.8
Final Determination
In accordance with section
705(c)(1)(B)(i)(I) of the Act, we
calculated a rate for Borusan and HDM
Celik. Section 705(c)(5)(A)(i) of the Act
states that, for companies not
individually investigated, we will
determine an ‘‘all others’’ rate equal to
the weighted-average countervailable
subsidy rates established for exporters
and producers individually
investigated, excluding any zero and de
minimis countervailable subsidy rates,
and any rates determined entirely under
section 776 of the Act. In the final
determination of this investigation,
Commerce calculated a de minimis rate
for Borusan. Therefore, the only rate
that is not zero, de minimis, or based
entirely on facts otherwise available is
the rate calculated for HDM Celik.
Consequently, the rate calculated for
HDM Celik is also assigned as the rate
for ‘‘all other’’ producers and exporters.
Commerce determines the total
estimated net countervailable subsidy
rates to be:
Subsidy rate
(percent)
Company
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.
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.
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
3.72 the Act, we will notify the ITC of our
determination. In addition, we are
* 0.92
making available to the ITC all non3.72
privileged and non-proprietary
* (de minimis)
information related to this investigation.
We will allow the ITC access to all
Disclosure
privileged and business proprietary
Commerce will disclose the
information in our files, provided the
calculations performed within five days ITC confirms that it will not disclose
of the date of publication of this notice
such information, either publicly or
under an administrative protective order
8 See Memoranda: ‘‘Countervailing Duty
(APO), without the written consent of
Investigation of Large Diameter Welded Pipe from
the Assistant Secretary for Enforcement
Turkey: Final Determination Calculation
and Compliance.
Memorandum for Borusan,’’ dated concurrently
with this notice; and ‘‘Countervailing Duty
Because the final determination in
Investigation of Large Diameter Welded Pipe from
this proceeding is affirmative, in
Turkey: Final Determination Calculation
accordance with section 705(b) of the
Memorandum for HDM Celik,’’ dated concurrently
Act, the ITC will make its final
with this notice.
9 Commerce found the following company to be
determination as to whether the
cross-owned with HDM Celik: HDM Spiral Kaynakli domestic industry in the United States
Celik Boru A.S.
is materially injured, or threatened with
10 Commerce found the following companies to be
material injury, by reason of imports of
cross-owned with Borusan: Borusan Mannesmann
welded pipe from Turkey no later than
Boru Yatirim Holding A.S., and Borusan Holding
A.S.
45 days after our final determination. If
HDM C
¸ elik Boru Sanayi ve
Ticaret A.S 9 ......................
Borusan Mannesmann Boru
Sanayi ve Ticaret A.S 10 ...
All-Others ..............................
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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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17:07 Feb 26, 2019
Jkt 247001
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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Agencies
[Federal Register Volume 84, Number 39 (Wednesday, February 27, 2019)]
[Notices]
[Pages 6367-6369]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03344]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-489-834]
Large Diameter Welded Pipe From the Republic of Turkey: 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 Turkey
(Turkey).
DATES: Applicable February 27, 2019.
FOR FURTHER INFORMATION CONTACT: Ross Belliveau or Ajay Menon, AD/CVD
Operations, Office II, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-4952, or (202) 482-1993,
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 Turkey, the mandatory
respondents in this investigation are Borusan Mannesmann Boru Sanayi ve
Ticaret A.S. (Borusan) and HDM Celik Boru Sanayi ve Ticaret A.S. (HDM
Celik).
The events that occurred since Commerce published the Preliminary
Determination \1\ on June 29, 2018, are 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 Issues and Decision
Memorandum and the electronic version of the Issues and Decision
Memorandum are identical in content.
---------------------------------------------------------------------------
\1\ See Large Diameter Welded Pipe from the Republic of Turkey:
Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination with Final Antidumping Duty
Determination, 83 FR 30697 (June 29, 2018) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum.
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination in the Countervailing Duty Investigation of
Large Diameter Welded Pipe from the Republic of Turkey,'' 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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
Period of Investigation
The period of investigation is January 1, 2017, through December
31, 2017.
Scope of the Investigation
The scope of the investigation is welded pipe from Turkey. For a
complete description of the scope of the investigation, see Appendix I.
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 to address these
comments.\4\ In the Preliminary
[[Page 6368]]
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.
---------------------------------------------------------------------------
\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 Turkey:
Preliminary Determination of Sales at Less than Fair Value and
Postponement of Final Determination, 83 FR 43646 (August 27, 2018).
---------------------------------------------------------------------------
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 as 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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
Verification
As provided in section 782(i) of the Tariff Act of 1930, as amended
(the Act), during July 2018, Commerce verified the subsidy information
reported by the Government of Turkey, Borusan, and HDM Celik. We used
standard verification procedures, including an examination of relevant
accounting records and original source documents provided by the
respondents.\7\
---------------------------------------------------------------------------
\7\ See Memoranda: ``Verification of the Questionnaire Responses
of the Government of Turkey (GOT),'' dated September 17, 2018;
``Verification of the Questionnaire Responses of Verification of the
Questionnaire Responses of Borusan Mannesmann Boru Sanayi ve Ticaret
A.S. (Borusan),'' dated October 2, 2018; and ``Verification of the
Questionnaire Responses of HDM Celik (HDM Celik),'' dated October 5,
2018.
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Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties and 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 and
the Final Analysis Memoranda.\8\
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\8\ See Memoranda: ``Countervailing Duty Investigation of Large
Diameter Welded Pipe from Turkey: Final Determination Calculation
Memorandum for Borusan,'' dated concurrently with this notice; and
``Countervailing Duty Investigation of Large Diameter Welded Pipe
from Turkey: Final Determination Calculation Memorandum for HDM
Celik,'' dated concurrently with this notice.
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Final Determination
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we
calculated a rate for Borusan and HDM Celik. Section 705(c)(5)(A)(i) of
the Act states that, for companies not individually investigated, we
will determine an ``all others'' rate equal to the weighted-average
countervailable subsidy rates established for exporters and producers
individually investigated, excluding any zero and de minimis
countervailable subsidy rates, and any rates determined entirely under
section 776 of the Act. In the final determination of this
investigation, Commerce calculated a de minimis rate for Borusan.
Therefore, the only rate that is not zero, de minimis, or based
entirely on facts otherwise available is the rate calculated for HDM
Celik. Consequently, the rate calculated for HDM Celik is also assigned
as the rate for ``all other'' producers and exporters.
Commerce determines the total estimated net countervailable subsidy
rates to be:
------------------------------------------------------------------------
Subsidy rate
Company (percent)
------------------------------------------------------------------------
HDM [Ccedil]elik Boru Sanayi ve Ticaret A.S \9\......... 3.72
Borusan Mannesmann Boru Sanayi ve Ticaret A.S \10\...... * 0.92
All-Others.............................................. 3.72
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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).
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\9\ Commerce found the following company to be cross-owned with
HDM Celik: HDM Spiral Kaynakli Celik Boru A.S.
\10\ Commerce found the following companies to be cross-owned
with Borusan: Borusan Mannesmann Boru Yatirim Holding A.S., and
Borusan Holding A.S.
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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. 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.
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, we will notify the
ITC of our 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 Turkey no later than 45 days
after our final determination. If
[[Page 6369]]
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.
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.
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
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