84 FR 8085 - Large Diameter Welded Pipe From India: Countervailing Duty Order

Based on affirmative final determinations by the Department of Commerce (Commerce) and the International Trade Commission (ITC), Commerce is issuing a countervailing duty order on large diameter welded carbon and alloy steel line pipe from India.

[Federal Register Volume 84, Number 44 (Wednesday, March 6, 2019)]
[Notices]
[Pages 8085-8086]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2019-04047]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-882]


Large Diameter Welded Pipe From India: Countervailing Duty Order

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (Commerce) and the International Trade Commission (ITC), 
Commerce is issuing a countervailing duty order on large diameter 
welded carbon and alloy steel line pipe from India.

DATES: Applicable March 6, 2019.

FOR FURTHER INFORMATION CONTACT: Robert Palmer at (202) 482-9068 or 
Suzanne Lam at (202) 482-0783, AD/CVD Operations, Enforcement and 
Compliance, U.S. Department of Commerce, 1401 Constitution Avenue NW, 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

Background

    On November 14, 2018, Commerce published its affirmative final 
determination in the countervailing duty investigation of large 
diameter welded pipe from India.\1\ The scope of the investigation in 
Commerce's final determination covered large diameter welded carbon and 
alloy steel line pipe (welded line pipe), large diameter welded carbon 
and alloy steel structural pipe (welded structural pipe), and stainless 
steel large diameter welded pipe (stainless steel pipe) from India.\2\ 
As discussed below, the ITC subsequently found three domestic like 
products covered by the scope of the investigation (welded line pipe, 
welded structural pipe, and stainless steel pipe) and accordingly made 
a separate injury determination with respect to each domestic like 
product. On January 30, 2019, the ITC notified Commerce of its final 
determination, pursuant to 705(d) of the Tariff Act of 1930, as amended 
(the Act), that an industry in the United States is materially injured 
within the meaning of section 705(b)(1)(A)(i) of the Act, by reason of 
subsidized imports of welded line pipe from India.\3\ Additionally, the 
ITC made a negligibility finding with respect to welded structural pipe 
and a negative determination of material injury or threat of material 
injury with respect to stainless steel pipe.\4\ On February 13, 2019, 
Commerce released draft revised scope language for comment by parties. 
No party objected to the revised scope language in this proceeding.
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    \1\ See Large Diameter Welded Pipe from India: Final Affirmative 
Countervailing Duty Determination, 83 FR 56819 (November 14, 2018).
    \2\ Id.
    \3\ See ITC Notification Letter to the Deputy Assistant 
Secretary for Enforcement and Compliance, referencing ITC 
Investigation Nos. 701-TA-593-594, 731-TA-1402, and 731-TA-1404 
(January 30, 2019) (ITC Notification). See also Large Diameter 
Welded Pipe from China and India; Determinations, 84 FR 1785 
(February 5, 2019) (ITC Final Determination) and Large Diameter 
Welded Pipe from China and India, Investigation Nos. 701-TA-593-594, 
731-TA-1402 and 731-TA-1404 (Final), Publication 4859, January 2019 
(Final ITC Report).
    \4\ Id.
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Scope of the Order

    The product covered by this order is welded line pipe from India. 
For a complete description of the scope of this order, see the Appendix 
to this notice.

Countervailing Duty Order

    On January 30, 2019, in accordance with section 705(b)(1)(A)(i) and 
705(d) of the Act, the ITC notified Commerce of its final determination 
in this investigation, in which it found that imports of welded line 
pipe are materially injuring a U.S. industry.\5\ As a result, and in 
accordance with section 705(c)(2) and 706 of the Act, we are publishing 
this countervailing duty order. As noted above, in its determination, 
the ITC found three domestic like products covered by the scope of the 
investigation: Welded line pipe, welded structural pipe, and stainless 
steel pipe. The ITC made a negative determination with respect to 
stainless steel pipe from India, and found that imports of welded 
structural pipe from India are negligible. The ITC made an affirmative 
determination with respect to welded line pipe from India. Because the 
ITC made distinct and different injury determinations for separate 
domestic like products, Commerce will instruct U.S. Customs and Border 
Protection (CBP) to assess countervailing duties on entries of welded 
line pipe (subject merchandise) from India, and not on entries of 
welded structural pipe and stainless steel pipe (excluded merchandise) 
from India.
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    \5\ See ITC Notification; ITC Final Determination, 84 FR 1785.
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Welded Line Pipe

    The Final ITC Report describes welded line pipe as a tubular 
product produced from carbon and alloy steel, produced to American 
Petroleum Instiute (API) 5L specifications, and designed for conveying 
liquids and gases.\6\ Because the ITC determined that subsidized 
imports of welded line pipe from India are materially injuring a U.S. 
industry,\7\ all unliquidated entries of subject merchandise from 
India, entered or withdrawn from warehouse, are subject to the 
assessment of countervailing duties, as described below.
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    \6\ See Final ITC Report at 11-12.
    \7\ Id. at 1 and 3.
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    As a result of the ITC Final Determination, in accordance with 
section 706(a) of the Act, Commerce will direct CBP to assess, upon 
further instruction by Commerce, countervailing duties for all relevant 
entries of welded line pipe from India. Countervailing duties will be 
assessed on unliquidated entries of welded line pipe from India 
entered, or withdrawn from warehouse, for consumption on or after June 
29, 2018, the date of publication of the Preliminary Determination,\8\ 
but will not be assessed on entries occurring after the expiration

[[Page 8086]]

of the provisional measures period (October 27, 2018), in accordance 
with section 703(d) of the Act, until the date of publication of the 
ITC Final Determination in the Federal Register.
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    \8\ 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).
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Welded Structural Pipe

    The Final ITC Report describes welded structural pipe as a tubular 
product produced from carbon and alloy steel, produced to American 
Society of Testing and Materials (ASTM) specifications, and designed 
for support in construction projects and piling.\9\ Because the ITC 
found that subsidized imports of welded structural pipe from India are 
negligible, Commerce will direct CBP to terminate the suspension of 
liquidation for entries of welded structural pipe from India entered, 
or withdrawn from warehouse, and to refund all cash deposit with 
respect to these entries pursuant to section 705(c)(2) of the Act.
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    \9\ Id. at 11-12.
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Stainless Steel Pipe

    The Final ITC Report describes stainless steel pipe as being 
produced from stainless steel for its high-chrome chemistry and 
corrosion-resistant properties.\10\ Because the ITC made a negative 
determination of material injury or threat of material injury by reason 
of subsidized imports of stainless steel pipe from India,\11\ Commerce 
will direct CBP to terminate the suspension of liquidation for entries 
of stainless steel pipe from India entered, or withdrawn from 
warehouse, and to refund all cash deposits with respect to these 
entries pursuant to section 705(c)(2) of the Act.
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    \10\ Id. at 10.
    \11\ Id. at 1 and 3.
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Suspension of Liquidation

    In accordance with section 706 of the Act, Commerce will direct CBP 
to reinstitute the suspension of liquidation of subject merchandise 
(i.e., welded line pipe) from India, effective the date of publication 
of the ITC Final Determination in the Federal Register, and to assess, 
upon further instruction by Commerce pursuant to section 706(a)(1) of 
the Act, countervailing duties for each entry of the subject 
merchandise in an amount based on the net countervailable subsidy rates 
for the subject merchandise. We intend to instruct CBP to require, at 
the same time as importers would normally deposit estimated import 
duties on this merchandise, cash deposits for each entry of subject 
merchandise equal to the rates noted below. These instructions 
suspending liquidation will remain in effect until further notice. The 
all-others rate applies to all other producers or exporters not 
specifically listed.

------------------------------------------------------------------------
                                                               Subsidy
                          Company                                rate
                                                              (percent)
------------------------------------------------------------------------
Bhushan Steel..............................................       541.15
Welspun Trading Limited....................................       541.15
All-Others.................................................       541.15
------------------------------------------------------------------------

Notifications to Interested Parties

    This notice constitutes the countervailing duty order with respect 
to welded line pipe from India pursuant to section 706(a) of the Act. 
Interested parties can find a list of countervailing duty orders 
currently in effect at http://enforcement.trade.gov/stats/iastats1.html.
    This order is published in accordance with sections 705(c) and 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: February 28, 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

Scope of the Order

    The merchandise covered by this order is welded carbon and alloy 
steel line pipe (other than stainless steel pipe), more than 406.4 
mm (16 inches) in nominal outside diameter (large diameter welded 
line 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.
    Large diameter welded line pipe is used to transport oil, gas, 
or natural gas liquids and is normally produced to the American 
Petroleum Institute (API) specification 5L. Large diameter welded 
line 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 line pipe 
meeting the physical description set forth above, including any 
dual- or multiple-certified/stenciled pipe with an API (or 
comparable) welded line pipe certification/stencil, is covered by 
the scope of this order.
    Subject merchandise also includes large diameter welded line 
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 order if performed in 
the country of manufacture of the in-scope large diameter welded 
line pipe.
    Excluded from the scope of this order is structural pipe, which 
is produced only to American Society for Testing and Materials 
(ASTM) standards A500, A252, or A53, or other relevant domestic 
specifications, or comparable foreign specifications, grades and/or 
standards or to proprietary specifications, grades and/or standards. 
Also excluded is large diameter welded pipe produced only to 
specifications of the American Water Works Association (AWWA) for 
water and sewage pipe.
    The large diameter welded line pipe that is subject to this 
order 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, and 7305.19.5000. 
Merchandise currently classifiable under subheadings 7305.31.4000, 
7305.31.6090, 7305.39.1000 and 7305.39.5000 and that otherwise meets 
the above scope language is also covered. While the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the scope of this order is dispositive.

[FR Doc. 2019-04047 Filed 3-5-19; 8:45 am]
 BILLING CODE 3510-DS-P