Oil Country Tubular Goods From the Russian Federation: Final Affirmative Countervailing Duty Determination and Final Negative Critical Circumstances Determination, 59047-59049 [2022-21179]
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Federal Register / Vol. 87, No. 188 / Thursday, September 29, 2022 / Notices
The HTSUS subheadings and
specifications above are provided for
convenience and customs purposes only. The
written description of the scope of this
investigation is dispositive.
Dated: September 23, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and
Compliance.
khammond on DSKJM1Z7X2PROD with NOTICES
Appendix I
Scope of the Investigation
The merchandise covered by this
investigation is certain OCTG, which are
hollow steel products of circular crosssection, including oil well casing and tubing,
of iron (other than case iron) or steel (both
carbon and alloy), whether seamless or
welded, regardless of end finish (e.g.,
whether or not plain end, threaded, or
threaded and coupled) whether or not
conforming to American Petroleum Institute
(API) or non-API specifications, whether
finished (including limited service OCTG
products) or unfinished (including green
tubes and limited service OCTG products),
whether or not thread protectors are attached.
The scope of this investigation also covers
OCTG coupling stock.
Subject merchandise includes material
matching the above description that has been
finished, packaged, or otherwise processed in
a third country, including by performing any
heat treatment, cutting, upsetting, threading,
coupling, or any other finishing, packaging,
or processing that would not otherwise
remove the merchandise from the scope of
the investigation if performed in the country
of manufacture of the OCTG.
Excluded from the scope of the
investigation are: casing, tubing, or coupling
stock containing 10.5 percent or more by
weight of chromium; drill pipe; unattached
couplings; and unattached thread protectors.
The merchandise subject to this
investigation is currently classified in the
Harmonized Tariff Schedule of the United
States (HTSUS) under item numbers:
7304.29.1010, 7304.29.1020, 7304.29.1030,
7304.29.1040, 7304.29.1050, 7304.29.1060,
7304.29.1080, 7304.29.2010, 7304.29.2020,
7304.29.2030, 7304.29.2040, 7304.29.2050,
7304.29.2060, 7304.29.2080, 7304.29.3110,
7304.29.3120, 7304.29.3130, 7304.29.3140,
7304.29.3150, 7304.29.3160, 7304.29.3180,
7304.29.4110, 7304.29.4120, 7304.29.4130,
7304.29.4140, 7304.29.4150, 7304.29.4160,
7304.29.4180, 7304.29.5015, 7304.29.5030,
7304.29.5045, 7304.29.5060, 7304.29.5075,
7304.29.6115, 7304.29.6130, 7304.29.6145,
7304.29.6160, 7304.29.6175, 7305.20.2000,
7305.20.4000, 7305.20.6000, 7305.20.8000,
7306.29.1030, 7306.29.1090, 7306.29.2000,
7306.29.3100, 7306.29.4100, 7306.29.6010,
7306.29.6050, 7306.29.8110, and
7306.29.8150.
The merchandise subject to this
investigation may also enter under the
following HTSUS item numbers:
7304.39.0024, 7304.39.0028, 7304.39.0032,
7304.39.0036, 7304.39.0040, 7304.39.0044,
7304.39.0048, 7304.39.0052, 7304.39.0056,
7304.39.0062, 7304.39.0068, 7304.39.0072,
7304.39.0076, 7304.39.0080, 7304.59.6000,
7304.59.8015, 7304.59.8020, 7304.59.8025,
7304.59.8030, 7304.59.8035, 7304.59.8040,
7304.59.8045, 7304.59.8050, 7304.59.8055,
7304.59.8060, 7304.59.8065, 7304.59.8070,
7304.59.8080, 7305.31.4000, 7305.31.6090,
7306.30.5055, 7306.30.5090, 7306.50.5050,
and 7306.50.5070.
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Appendix II
List of Topics Discussed in the Issues and
Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Changes Since the Preliminary
Determination
V. Final Determinations of Affiliation and
Single Entity Treatment
VI. Application of Facts Available and Use of
Adverse Inferences
VII. Final Affirmative Determination of
Critical Circumstances in Part
VIII. Discussion of the Issues
Comment 1: OMK/VSW’s Cost Reporting
Comment 2: Retention of TMK/VTZ’s
Business Proprietary Information (BPI)
on the Record of the Investigation
Comment 3: TMK/VTZ Adverse Facts
Available (AFA) Margin and Critical
Circumstances Determination
IX. Recommendation
[FR Doc. 2022–21182 Filed 9–28–22; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–821–834]
Oil Country Tubular Goods From the
Russian Federation: Final Affirmative
Countervailing Duty Determination and
Final Negative Critical Circumstances
Determination
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of
Commerce (Commerce) determines that
countervailable subsidies are being
provided to producers and exporters of
oil country tubular goods (OCTG) from
the Russian Federation (Russia). The
period of investigation is January 1,
2020, through December 31, 2020.
DATES: Applicable September 29, 2022.
FOR FURTHER INFORMATION CONTACT:
Brontee George or Theodore Pearson,
AD/CVD Operations, Office I,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–4645 or
(202) 482–2631, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On March 14, 2022, Commerce
published its Preliminary
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59047
Determination 1 in the Federal Register.
For a complete description of the events
that followed the Preliminary
Determination, see the Issues and
Decision Memorandum.2 The Issues and
Decision Memorandum is a public
document and is made available to the
public 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. In addition, a
complete version of the Issues and
Decision Memorandum can be accessed
directly at https://access.trade.gov/
public/FRNoticesListLayout.aspx.
Scope of the Investigation
The products covered by this
investigation are oil country tubular
goods from Russia. For a complete
description of the scope of this
investigation, see appendix I.
Scope Comments
On March 7, 2022, concurrent with
the issuance of the Preliminary
Determination, we issued a Preliminary
Scope Decision Memorandum.3 In the
Preliminary Scope Decision
Memorandum, Commerce established
the deadline for parties to submit scope
case briefs.4 Commerce did not receive
any comments from interested parties
regarding the scope by the deadline.
Consequently, we made no changes to
the scope from the Preliminary Scope
Decision Memorandum.
Analysis of Subsidy Programs and
Comments Received
The subsidy programs under
investigation, and the issues raised in
the case and rebuttal briefs that were
submitted by parties in this
investigation, are discussed in the Issues
and Decision Memorandum. For a list of
the issues raised by interested parties
1 See Oil Country Tubular Goods from the Russia
Federation: Preliminary Affirmative Countervailing
Duty Determination, Preliminary Negative Critical
Circumstances Determination, and Alignment of
Final Determination with Final Antidumping Duty
Determination, 87 FR 14249 (March 14, 2022)
(Preliminary Determination), and accompanying
Preliminary Decision Memorandum (PDM).
2 See Memorandum, ‘‘Decision Memorandum for
the Final Affirmative Determination in the
Countervailing Duty Investigation of Oil Country
Tubular Goods from the Russian Federation,’’ dated
concurrently with, and hereby adopted by, this
notice (Issues and Decision Memorandum).
3 See Memorandum, ‘‘Antidumping Duty
Investigations of Oil Country Tubular Goods from
Argentina, Mexico, and the Russian Federation and
Countervailing Duty Investigations of Oil Country
Tubular Goods from the Republic of Korea, and the
Russian Federation: Preliminary Scope Decision
Memorandum,’’ dated March 7, 2022 (Preliminary
Scope Decision Memorandum).
4 Id. at 4.
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Federal Register / Vol. 87, No. 188 / Thursday, September 29, 2022 / Notices
and addressed in the Issues and
Decision Memorandum, see appendix II
to this notice.
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 to be
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.5 For a
full description of the methodology
underlying our final determination, see
the Issues and Decision Memorandum.
In making this final determination,
Commerce relied, in part, on facts
otherwise available, including adverse
facts available (AFA), pursuant to
sections 776(a) and (b) of the Act. For
a full discussion of our application of
AFA, see the Preliminary Determination
and the section ‘‘Use of Facts Otherwise
Available and Application of Adverse
Inferences’’ in the accompanying Issues
and Decision Memorandum.6
determination in this investigation.
However, we took additional steps in
lieu of on-site verifications to verify the
information relied upon in making this
final determination, in accordance with
section 782(i) of the Act.7
Final Negative Determination of
Critical Circumstances
Commerce determines that critical
circumstances do not exist within the
meaning of 703(e)(1) of the Act. For
further information, see the Issues and
Decision Memorandum.
Verification
Changes Since the Preliminary
Determination
Based on our review and analysis of
the comments received from parties, as
well as additional information collected
in questionnaires issued subsequent to
the Preliminary Determination, we
made certain changes to the subsidy rate
calculations for JSC Vyska Steel Works
(collectively with its affiliated
companies, OMK), Volzhsky Pipe Plant,
Joint Stock Company (collectively with
its affiliated companies, TMK Group),
and the all-others rate. For a discussion
of these changes, see the Issues and
Decision Memorandum.
Commerce was unable to conduct onsite verification of the information
relied upon in making its final
All-Others Rate
In accordance with section
705(c)(1)(B)(i) of the Act, we calculated
an individual estimated countervailable
subsidy rate for the two mandatory
respondents, OMK and TMK Group.
Section 705(c)(5)(A)(i) of the Act states
that, for companies not individually
investigated, Commerce will determine
an all-others rate equal to the weightedaverage countervailable subsidy rates
established for exporters and/or
producers individually investigated,
excluding any zero and de minimis
countervailable subsidy rates, and any
rates determined entirely under section
776 of the Act.
We continue to calculate individual
estimated countervailable subsidy rates
for OMK and TMK Group that are not
zero, de minimis, or based entirely on
facts otherwise available. We, therefore,
continue to calculate the all-others rate
using a weighted average of the
individual estimated subsidy rates
calculated for the examined respondents
(OMK and TMK Group) using each
company’s publicly-ranged sales value
for their exports to the United States of
subject merchandise,8 in accordance
with section 705(c)(5)(A)(i) of the Act.
Final Determination
Commerce determines that the
following estimated countervailable
subsidy rates exist:
Subsidy rate
(percent
ad valorem)
Manufacturer/exporter
Volzhsky Pipe Plant, Joint Stock Company; Sinarsky Pipe Plant, Joint Stock Company; Seversky Pipe Plant, Joint Stock
Company; Taganrog Metallurgical Plant, Joint Stock Company; Orsky Machine Building Plant, Joint Stock Company; and
PAO TMK 9 .................................................................................................................................................................................
JSC Vyksa Steel Works10 .............................................................................................................................................................
All Others .......................................................................................................................................................................................
Disclosure
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Commerce intends to disclose to
interested parties the calculations and
analysis performed in this final
determination within five days of any
5 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.
6 See Preliminary Determination PDM at 8–13;
see also Issues and Decision Memorandum at
section ‘‘Use of Facts Otherwise Available and
Adverse Inferences.’’
7 See Commerce’s Letters, ‘‘Oil Country Tubular
Goods from the Russian Federation: Volzhsky Pipe
Plant, Joint Stock Company and Affiliated
Companies Verification Questionnaire,’’ dated May
11, 2022; and ‘‘Oil Country Tubular Goods from the
Russian Federation: Vyksa Steel Works and United
Metallurgical Company (collectively, OMK) and
Affiliated Companies Verification Questionnaire,’’
dated May 11, 2022.
8 With two respondents under examination,
Commerce normally calculates: (A) a weighted-
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1.30
1.59
1.43
public announcement or, if there is no
public announcement, within five days
of the date of the publication of this
notice in the Federal Register, in
accordance with 19 CFR 351.224(b).
Continuation of Suspension of
Liquidation
average of the estimated subsidy rates calculated for
the examined respondents; (B) a simple average of
the estimated subsidy rates calculated for the
examined respondents; and (C) a weighted-average
of the estimated subsidy rates calculated for the
examined respondents using each company’s
publicly-ranged U.S. sale quantities for the
merchandise under consideration. Commerce then
compares (B) and (C) to (A) and selects the rate
closest to (A) as the most appropriate rate for all
other producers and exporters. See, e.g., Ball
Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results
of Antidumping Duty Administrative Reviews, Final
Results of Changed-Circumstances Review, and
Revocation of an Order in Part, 75 FR 53661, 53663
(September 1, 2010); see also Forged Steel Fluid
End Blocks from Italy: Preliminary Affirmative
Countervailing Duty Determination, and Alignment
of Final Determination with Final Antidumping
Duty Determination, 85 FR 31460, 31461 (May 26,
2020), unchanged in Forged Steel Fluid End Blocks
from Italy: Final Affirmative Countervailing Duty
Determination, 85 FR 80022, 80023 (December 11,
2020).
9 Commerce has found the following companies
to be cross-owned with Volzhsky Pipe Plant, Joint
Stock Company: TMK NeftegasserviceNizhnevartovsk, Joint Stock Company; TMK
Neftegasservice-Buzuluk, Limited Liability
Company; Russian Research Institute of the Tube &
Pipe Industries, JSC; and Scientific and Technical
Center TMK, LLC.
10 Commerce has found the following companies
to be cross-owned with JSC Vyska Steel Works:
BusinessOptima; Metallolomaya Company OMK—
Ecometall; United Metallurgical Company; and
Joint-Stock Company Trubodetal.
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As a result of our Preliminary
Determination and pursuant to section
703(d)(1)(B) and (d)(2) of the Act, we
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Federal Register / Vol. 87, No. 188 / Thursday, September 29, 2022 / Notices
instructed U.S. Customs and Border
Protection (CBP) to suspend liquidation
of entries of subject merchandise from
Russia that were entered, or withdrawn
from warehouse, for consumption, on or
after March 14, 2022, which is the date
of publication of the Preliminary
Determination in the Federal Register.
In accordance with section 703(d) of the
Act, we instructed CBP to discontinue
the suspension of liquidation of all
entries of subject merchandise entered
or withdrawn from warehouse, on or
after July 12, 2022, but to continue the
suspension of liquidation of all entries
of subject merchandise between March
14 and July 11, 2022.
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 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.
will issue a countervailing duty order
directing CBP to assess, upon further
instruction by Commerce,
countervailing duties on all imports of
the subject merchandise 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.
ITC Notification
Dated: September 23, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and
Compliance.
In accordance with section 705(d) of
the Act, we will notify the ITC of our
final affirmative determination that
countervailable subsidies are being
provided to producers and exporters of
OCTG from Russia. 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
OCTG from Russia no later than 45 days
after our final determination. In
addition, we are making available to the
ITC all non-privileged and
nonproprietary 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. If the ITC determines that
material injury or threat of material
injury does not exist, this proceeding
will be terminated and all cash deposits
will be refunded. If the ITC determines
that such injury does exist, Commerce
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17:52 Sep 28, 2022
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Notification Regarding APO
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.
Notification to Interested Parties
This determination is issued and
published pursuant to sections 705(d)
and 777(i) of the Act, and 19 CFR
351.210(c).
Appendix I—Scope of the Investigation
The merchandise covered by this
investigation is certain OCTG, which are
hollow steel products of circular crosssection, including oil well casing and tubing,
of iron (other than case iron) or steel (both
carbon and alloy), whether seamless or
welded, regardless of end finish (e.g.,
whether or not plain end, threaded, or
threaded and coupled) whether or not
conforming to American Petroleum Institute
(API) or non-API specifications, whether
finished (including limited service OCTG
products) or unfinished (including green
tubes and limited service OCTG products),
whether or not thread protectors are attached.
The scope of this investigation also covers
OCTG coupling stock.
Subject merchandise includes material
matching the above description that has been
finished, packaged, or otherwise processed in
a third country, including by performing any
heat treatment, cutting, upsetting, threading,
coupling, or any other finishing, packaging,
or processing that would not otherwise
remove the merchandise from the scope of
the investigation if performed in the country
of manufacture of the OCTG.
Excluded from the scope of the
investigation are: casing, tubing, or coupling
stock containing 10.5 percent or more by
weight of chromium; drill pipe; unattached
couplings; and unattached thread protectors.
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59049
The merchandise subject to this
investigation is currently classified in the
Harmonized Tariff Schedule of the United
States (HTSUS) under item numbers:
7304.29.1010, 7304.29.1020, 7304.29.1030,
7304.29.1040, 7304.29.1050, 7304.29.1060,
7304.29.1080, 7304.29.2010, 7304.29.2020,
7304.29.2030, 7304.29.2040, 7304.29.2050,
7304.29.2060, 7304.29.2080, 7304.29.3110,
7304.29.3120, 7304.29.3130, 7304.29.3140,
7304.29.3150, 7304.29.3160,7304.29.3180,
7304.29.4110, 7304.29.4120, 7304.29.4130,
7304.29.4140, 7304.29.4150, 7304.29.4160,
7304.29.4180, 7304.29.5015, 7304.29.5030,
7304.29.5045, 7304.29.5060, 7304.29.5075,
7304.29.6115, 7304.29.6130, 7304.29.6145,
7304.29.6160, 7304.29.6175, 7305.20.2000,
7305.20.4000, 7305.20.6000, 7305.20.8000,
7306.29.1030, 7306.29.1090, 7306.29.2000,
7306.29.3100, 7306.29.4100, 7306.29.6010,
7306.29.6050, 7306.29.8110, and
7306.29.8150.
The merchandise subject to this
investigation may also enter under the
following HTSUS item numbers:
7304.39.0024, 7304.39.0028, 7304.39.0032,
7304.39.0036, 7304.39.0040, 7304.39.0044,
7304.39.0048, 7304.39.0052, 7304.39.0056,
7304.39.0062, 7304.39.0068, 7304.39.0072,
7304.39.0076, 7304.39.0080, 7304.59.6000,
7304.59.8015, 7304.59.8020, 7304.59.8025,
7304.59.8030, 7304.59.8035, 7304.59.8040,
7304.59.8045, 7304.59.8050, 7304.59.8055,
7304.59.8060, 7304.59.8065, 7304.59.8070,
7304.59.8080, 7305.31.4000, 7305.31.6090,
7306.30.5055, 7306.30.5090, 7306.50.5050,
and 7306.50.5070.
The HTSUS subheadings and
specifications above are provided for
convenience and customs purposes only. 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. Scope Issues
IV. Critical Circumstances
V. Subsidies Valuation
VI. Use of Facts Otherwise Available and
Application of Adverse Inferences
VII. Interest Rate Benchmarks, Discount
Rates, and Natural Gas Benchmark
VIII. Analysis of Programs
IX. Analysis of Comments
Comment 1: Whether to Adjust the Natural
Gas Benchmark Calculation of
Transmission Fees and Value-Added Tax
(VAT)
Comment 2: Loan Benchmark Selection
A. OMK Loan Benchmark Issues
B. TMK Group Loan Benchmark Issues
Comment 3: Whether Commerce Should
Find Certain Natural Gas Purchases to Be
Tied to Non-Subject Merchandise for
Affiliates of TMK Group
X. Recommendation
[FR Doc. 2022–21179 Filed 9–28–22; 8:45 am]
BILLING CODE 3510–DS–P
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]]>Agencies
[Federal Register Volume 87, Number 188 (Thursday, September 29, 2022)]
[Notices]
[Pages 59047-59049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-21179]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-821-834]
Oil Country Tubular Goods From the Russian Federation: Final
Affirmative Countervailing Duty Determination and Final Negative
Critical Circumstances Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of oil country tubular goods (OCTG) from the Russian Federation
(Russia). The period of investigation is January 1, 2020, through
December 31, 2020.
DATES: Applicable September 29, 2022.
FOR FURTHER INFORMATION CONTACT: Brontee George or Theodore Pearson,
AD/CVD Operations, Office I, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-4645 or (202)
482-2631, respectively.
SUPPLEMENTARY INFORMATION:
Background
On March 14, 2022, Commerce published its Preliminary Determination
\1\ in the Federal Register. For a complete description of the events
that followed the Preliminary Determination, see the Issues and
Decision Memorandum.\2\ The Issues and Decision Memorandum is a public
document and is made available to the public 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. In addition, a complete version of the Issues
and Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
---------------------------------------------------------------------------
\1\ See Oil Country Tubular Goods from the Russia Federation:
Preliminary Affirmative Countervailing Duty Determination,
Preliminary Negative Critical Circumstances Determination, and
Alignment of Final Determination with Final Antidumping Duty
Determination, 87 FR 14249 (March 14, 2022) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
\2\ See Memorandum, ``Decision Memorandum for the Final
Affirmative Determination in the Countervailing Duty Investigation
of Oil Country Tubular Goods from the Russian Federation,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The products covered by this investigation are oil country tubular
goods from Russia. For a complete description of the scope of this
investigation, see appendix I.
Scope Comments
On March 7, 2022, concurrent with the issuance of the Preliminary
Determination, we issued a Preliminary Scope Decision Memorandum.\3\ In
the Preliminary Scope Decision Memorandum, Commerce established the
deadline for parties to submit scope case briefs.\4\ Commerce did not
receive any comments from interested parties regarding the scope by the
deadline. Consequently, we made no changes to the scope from the
Preliminary Scope Decision Memorandum.
---------------------------------------------------------------------------
\3\ See Memorandum, ``Antidumping Duty Investigations of Oil
Country Tubular Goods from Argentina, Mexico, and the Russian
Federation and Countervailing Duty Investigations of Oil Country
Tubular Goods from the Republic of Korea, and the Russian
Federation: Preliminary Scope Decision Memorandum,'' dated March 7,
2022 (Preliminary Scope Decision Memorandum).
\4\ Id. at 4.
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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 that were submitted by parties in this
investigation, are discussed in the Issues and Decision Memorandum. For
a list of the issues raised by interested parties
[[Page 59048]]
and addressed in the Issues and Decision Memorandum, see appendix II to
this notice.
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 to be 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.\5\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
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\5\ 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 this final determination, Commerce relied, in part, on
facts otherwise available, including adverse facts available (AFA),
pursuant to sections 776(a) and (b) of the Act. For a full discussion
of our application of AFA, see the Preliminary Determination and the
section ``Use of Facts Otherwise Available and Application of Adverse
Inferences'' in the accompanying Issues and Decision Memorandum.\6\
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\6\ See Preliminary Determination PDM at 8-13; see also Issues
and Decision Memorandum at section ``Use of Facts Otherwise
Available and Adverse Inferences.''
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Verification
Commerce was unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. However, we took additional steps in lieu of on-site
verifications to verify the information relied upon in making this
final determination, in accordance with section 782(i) of the Act.\7\
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\7\ See Commerce's Letters, ``Oil Country Tubular Goods from the
Russian Federation: Volzhsky Pipe Plant, Joint Stock Company and
Affiliated Companies Verification Questionnaire,'' dated May 11,
2022; and ``Oil Country Tubular Goods from the Russian Federation:
Vyksa Steel Works and United Metallurgical Company (collectively,
OMK) and Affiliated Companies Verification Questionnaire,'' dated
May 11, 2022.
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Final Negative Determination of Critical Circumstances
Commerce determines that critical circumstances do not exist within
the meaning of 703(e)(1) of the Act. For further information, see the
Issues and Decision Memorandum.
Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, as well as additional information collected in questionnaires
issued subsequent to the Preliminary Determination, we made certain
changes to the subsidy rate calculations for JSC Vyska Steel Works
(collectively with its affiliated companies, OMK), Volzhsky Pipe Plant,
Joint Stock Company (collectively with its affiliated companies, TMK
Group), and the all-others rate. For a discussion of these changes, see
the Issues and Decision Memorandum.
All-Others Rate
In accordance with section 705(c)(1)(B)(i) of the Act, we
calculated an individual estimated countervailable subsidy rate for the
two mandatory respondents, OMK and TMK Group. Section 705(c)(5)(A)(i)
of the Act states that, for companies not individually investigated,
Commerce will determine an all-others rate equal to the weighted-
average countervailable subsidy rates established for exporters and/or
producers individually investigated, excluding any zero and de minimis
countervailable subsidy rates, and any rates determined entirely under
section 776 of the Act.
We continue to calculate individual estimated countervailable
subsidy rates for OMK and TMK Group that are not zero, de minimis, or
based entirely on facts otherwise available. We, therefore, continue to
calculate the all-others rate using a weighted average of the
individual estimated subsidy rates calculated for the examined
respondents (OMK and TMK Group) using each company's publicly-ranged
sales value for their exports to the United States of subject
merchandise,\8\ in accordance with section 705(c)(5)(A)(i) of the Act.
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\8\ With two respondents under examination, Commerce normally
calculates: (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents; (B) a simple average of the
estimated subsidy rates calculated for the examined respondents; and
(C) a weighted-average of the estimated subsidy rates calculated for
the examined respondents using each company's publicly-ranged U.S.
sale quantities for the merchandise under consideration. Commerce
then compares (B) and (C) to (A) and selects the rate closest to (A)
as the most appropriate rate for all other producers and exporters.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53663
(September 1, 2010); see also Forged Steel Fluid End Blocks from
Italy: Preliminary Affirmative Countervailing Duty Determination,
and Alignment of Final Determination with Final Antidumping Duty
Determination, 85 FR 31460, 31461 (May 26, 2020), unchanged in
Forged Steel Fluid End Blocks from Italy: Final Affirmative
Countervailing Duty Determination, 85 FR 80022, 80023 (December 11,
2020).
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Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist:
------------------------------------------------------------------------
Subsidy rate
Manufacturer/exporter (percent ad
valorem)
------------------------------------------------------------------------
Volzhsky Pipe Plant, Joint Stock Company; Sinarsky 1.30
Pipe Plant, Joint Stock Company; Seversky Pipe
Plant, Joint Stock Company; Taganrog Metallurgical
Plant, Joint Stock Company; Orsky Machine Building
Plant, Joint Stock Company; and PAO TMK \9\.........
JSC Vyksa Steel Works\10\............................ 1.59
All Others........................................... 1.43
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Disclosure
Commerce intends to disclose to interested parties the calculations
and analysis performed in this final determination within five days of
any public announcement or, if there is no public announcement, within
five days of the date of the publication of this notice in the Federal
Register, in accordance with 19 CFR 351.224(b).
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\9\ Commerce has found the following companies to be cross-owned
with Volzhsky Pipe Plant, Joint Stock Company: TMK Neftegasservice-
Nizhnevartovsk, Joint Stock Company; TMK Neftegasservice-Buzuluk,
Limited Liability Company; Russian Research Institute of the Tube &
Pipe Industries, JSC; and Scientific and Technical Center TMK, LLC.
\10\ Commerce has found the following companies to be cross-
owned with JSC Vyska Steel Works: BusinessOptima; Metallolomaya
Company OMK--Ecometall; United Metallurgical Company; and Joint-
Stock Company Trubodetal.
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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, we
[[Page 59049]]
instructed U.S. Customs and Border Protection (CBP) to suspend
liquidation of entries of subject merchandise from Russia that were
entered, or withdrawn from warehouse, for consumption, on or after
March 14, 2022, which is the date of publication of the Preliminary
Determination in the Federal Register. In accordance with section
703(d) of the Act, we instructed CBP to discontinue the suspension of
liquidation of all entries of subject merchandise entered or withdrawn
from warehouse, on or after July 12, 2022, but to continue the
suspension of liquidation of all entries of subject merchandise between
March 14 and July 11, 2022.
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 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 final affirmative determination that countervailable
subsidies are being provided to producers and exporters of OCTG from
Russia. 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 OCTG from Russia no later than 45 days
after our final determination. In addition, we are making available to
the ITC all non-privileged and nonproprietary 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. If
the ITC determines that material injury or threat of material injury
does not exist, this proceeding will be terminated and all cash
deposits will be refunded. If the ITC determines that such injury does
exist, Commerce will issue a countervailing duty order directing CBP to
assess, upon further instruction by Commerce, countervailing duties on
all imports of the subject merchandise 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 APO
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.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: September 23, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The merchandise covered by this investigation is certain OCTG,
which are hollow steel products of circular cross-section, including
oil well casing and tubing, of iron (other than case iron) or steel
(both carbon and alloy), whether seamless or welded, regardless of
end finish (e.g., whether or not plain end, threaded, or threaded
and coupled) whether or not conforming to American Petroleum
Institute (API) or non-API specifications, whether finished
(including limited service OCTG products) or unfinished (including
green tubes and limited service OCTG products), whether or not
thread protectors are attached. The scope of this investigation also
covers OCTG coupling stock.
Subject merchandise includes material matching the above
description that has been finished, packaged, or otherwise processed
in a third country, including by performing any heat treatment,
cutting, upsetting, threading, coupling, or any other finishing,
packaging, or processing that would not otherwise remove the
merchandise from the scope of the investigation if performed in the
country of manufacture of the OCTG.
Excluded from the scope of the investigation are: casing,
tubing, or coupling stock containing 10.5 percent or more by weight
of chromium; drill pipe; unattached couplings; and unattached thread
protectors.
The merchandise subject to this investigation is currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under item numbers: 7304.29.1010, 7304.29.1020,
7304.29.1030, 7304.29.1040, 7304.29.1050, 7304.29.1060,
7304.29.1080, 7304.29.2010, 7304.29.2020, 7304.29.2030,
7304.29.2040, 7304.29.2050, 7304.29.2060, 7304.29.2080,
7304.29.3110, 7304.29.3120, 7304.29.3130, 7304.29.3140,
7304.29.3150, 7304.29.3160,7304.29.3180, 7304.29.4110, 7304.29.4120,
7304.29.4130, 7304.29.4140, 7304.29.4150, 7304.29.4160,
7304.29.4180, 7304.29.5015, 7304.29.5030, 7304.29.5045,
7304.29.5060, 7304.29.5075, 7304.29.6115, 7304.29.6130,
7304.29.6145, 7304.29.6160, 7304.29.6175, 7305.20.2000,
7305.20.4000, 7305.20.6000, 7305.20.8000, 7306.29.1030,
7306.29.1090, 7306.29.2000, 7306.29.3100, 7306.29.4100,
7306.29.6010, 7306.29.6050, 7306.29.8110, and 7306.29.8150.
The merchandise subject to this investigation may also enter
under the following HTSUS item numbers: 7304.39.0024, 7304.39.0028,
7304.39.0032, 7304.39.0036, 7304.39.0040, 7304.39.0044,
7304.39.0048, 7304.39.0052, 7304.39.0056, 7304.39.0062,
7304.39.0068, 7304.39.0072, 7304.39.0076, 7304.39.0080,
7304.59.6000, 7304.59.8015, 7304.59.8020, 7304.59.8025,
7304.59.8030, 7304.59.8035, 7304.59.8040, 7304.59.8045,
7304.59.8050, 7304.59.8055, 7304.59.8060, 7304.59.8065,
7304.59.8070, 7304.59.8080, 7305.31.4000, 7305.31.6090,
7306.30.5055, 7306.30.5090, 7306.50.5050, and 7306.50.5070.
The HTSUS subheadings and specifications above are provided for
convenience and customs purposes only. 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. Scope Issues
IV. Critical Circumstances
V. Subsidies Valuation
VI. Use of Facts Otherwise Available and Application of Adverse
Inferences
VII. Interest Rate Benchmarks, Discount Rates, and Natural Gas
Benchmark
VIII. Analysis of Programs
IX. Analysis of Comments
Comment 1: Whether to Adjust the Natural Gas Benchmark
Calculation of Transmission Fees and Value-Added Tax (VAT)
Comment 2: Loan Benchmark Selection
A. OMK Loan Benchmark Issues
B. TMK Group Loan Benchmark Issues
Comment 3: Whether Commerce Should Find Certain Natural Gas
Purchases to Be Tied to Non-Subject Merchandise for Affiliates of
TMK Group
X. Recommendation
[FR Doc. 2022-21179 Filed 9-28-22; 8:45 am]
BILLING CODE 3510-DS-P
