84 FR 8075 - Large Diameter Welded Pipe From the People's Republic of China: 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 structural pipe from the People's Republic of China (China).

[Federal Register Volume 84, Number 44 (Wednesday, March 6, 2019)]
[Notices]
[Pages 8075-8077]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2019-04049]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-078]


Large Diameter Welded Pipe From the People's Republic of China: 
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 structural pipe from the People's 
Republic of China (China).

DATES:  Applicable March 6, 2019.

FOR FURTHER INFORMATION CONTACT:  Justin Neuman at (202) 482-0486 or 
Benito Ballesteros at (202) 482-7425, 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 China.\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 China.\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 section 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 structural pipe from China.\3\ 
Additionally, the ITC made a negligibility determination with respect 
to welded line 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. American Cast Iron Pipe Company, Berg Steel Pipe 
Corp., Berg Spiral Pipe Corp., Dura-Bond Industries, Stupp Corporation, 
Greens Bayou Pipe Mill, LP, JSW Steel (USA) Inc., Skyline Steel, 
Trinity Products LLC, and Welspun Corp., Ltd. (collectively, the 
petitioners) provided comments, which we have incorporated into the 
final scope of the order.\5\
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    \1\ See Countervailing Duty Investigation of Large Diameter 
Welded Pipe from the People's Republic of China: Final Affirmative 
Determination, 83 FR 56804 (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.
    \5\ See Petitioners' Letter, ``Large Diameter Welded Pipe from 
India and the People's Republic of China: Comments on the Scopes of 
the Orders,'' dated February 15, 2019.
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Scope of the Order

    The product covered by this order is welded structural pipe from 
China. 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 
structural pipe are materially injuring a U.S. industry.\6\ As a 
result, and in accordance with section 705(c)(2) and 706 of the Act, we 
are publishing this countervailing duty

[[Page 8076]]

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 China, and found that imports of welded line pipe from China are 
negligible. The ITC made an affirmative determination with respect to 
welded structural pipe from China. 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 structural pipe 
(subject merchandise) from China, and not on entries of welded line 
pipe and stainless steel pipe (excluded merchandise) from China.
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    \6\ 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 Institute (API) 5L specifications, and designed for conveying 
liquids and gases.\7\ Because the ITC determined that subsidized 
imports of welded line pipe from China are negligible, Commerce will 
direct CBP to terminate the suspension of liquidation for entries of 
welded line pipe from China 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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    \7\ See Final ITC Report at 11-12.
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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 for Testing and Materials (ASTM) specifications, and designed 
for support in construction projects and piling.\8\ Because the ITC 
found that subsidized imports of welded structural pipe from China are 
materially injuring a U.S. industry,\9\ Commerce will direct CBP that 
all unliquidated entries of subject merchandise from China, entered or 
withdrawn from warehouse, are subject to the assessment of 
countervailing duties pursuant to section 706 of the Act, as described 
below.
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    \8\ Id.
    \9\ 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 structural pipe from China. Countervailing duties 
will be assessed on unliquidated entries of welded structural pipe from 
China entered, or withdrawn from warehouse, for consumption on or after 
June 29, 2018, the date of publication of the Preliminary 
Determination,\10\ but will not be assessed on entries occurring after 
the expiration 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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    \10\ See Large Diameter Welded Pipe from the People's Republic 
of China: Preliminary Affirmative Countervailing Duty Determination 
and Alignment of Final Determination with Final Antidumping 
Determination, 83 FR 30695 (June 29, 2018) (Preliminary 
Determination).
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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.\11\ 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 China,\12\ Commerce 
will direct CBP to terminate the suspension of liquidation for entries 
of stainless steel pipe from China 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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    \11\ Id. at 10.
    \12\ 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 on all relevant entries of 
subject merchandise (i.e., welded structural pipe) from China, 
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
                    Exporter or producer                         rate
                                                              (percent)
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Hefei Zijin Steel Tube Manufacturing Co....................       198.49
Hefei Ziking Steel Pipe....................................       198.49
Panyu Chu Kong Steel Pipe Co. Ltd..........................       198.49
All-Others.................................................       198.49
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Notifications to Interested Parties

    This notice constitutes the countervailing duty order with respect 
to welded structural pipe from China 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 structural pipe (other than stainless steel pipe), more than 
406.4 mm (16 inches) in nominal outside diameter (large diameter 
welded structural pipe), regardless of wall thickness, length, 
surface finish, grade, end finish, or stenciling. Large diameter 
welded structural pipe may 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 structural pipe may 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 structural 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 structural pipe meeting the physical 
description set forth above, including any dual- or multiple-
certified/stenciled pipe with an ASTM (or comparable) welded 
structural pipe certification/stencil, is covered by the scope of 
this order.
    Subject merchandise also includes large diameter welded 
structural 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

[[Page 8077]]

the in-scope large diameter welded structural pipe.
    Excluded from the scope of this order is line pipe which is 
suitable for transporting oil, gas, slurry, steam, or other fluids, 
liquids, or gases, and is normally produced to American Petroleum 
Institute (API) specification 5L or equivalent foreign 
specifications grades and/or standards or to proprietary 
specifications, grades and/or standards.
    The large diameter welded structural pipe that is subject to 
this order is currently classifiable in the Harmonized Tariff 
Schedule of the United States (HTSUS) under subheadings 
7305.31.4000, 7305.31.6090, 7305.39.1000 and 7305.39.5000. 
Merchandise currently classifiable 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 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. 2019-04049 Filed 3-5-19; 8:45 am]
 BILLING CODE 3510-DS-P