84 FR 8083 - Large Diameter Welded Pipe From the People's Republic of China: Antidumping Duty Order

Based on affirmative final determinations by the Department of Commerce (Commerce) and the International Trade Commission (ITC), Commerce is issuing an antidumping duty order on large diameter welded carbon and alloy steel line and structural pipe from the People's Republic of China (China).

[Federal Register Volume 84, Number 44 (Wednesday, March 6, 2019)]
[Notices]
[Pages 8083-8085]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2019-04050]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-077]


Large Diameter Welded Pipe From the People's Republic of China: 
Antidumping 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 an antidumping duty order on large diameter welded 
carbon and alloy steel line and structural pipe from the People's 
Republic of China (China).

DATES: Applicable March 6, 2019.

FOR FURTHER INFORMATION CONTACT: Ryan Mullen at (202) 482-5260, 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 less-than-fair-value (LTFV) 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 735(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 735(b)(1)(A)(i) of the Act, by 
reason of LTFV imports of welded structural pipe from China, and is 
threatened with material injury within the meaning of section 
735(b)(1)(A)(ii) of the Act by reason of LTFV imports of welded line 
pipe from China.\3\ Additionally, the ITC made 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.
---------------------------------------------------------------------------

    \1\ See Large Diameter Welded Pipe from the People's Republic of 
China: Final Determination of Sales at Less Than Fair Value, 83 FR 
56816 (November 14, 2018) (Final Determination).
    \2\ Id.
    \3\ See ITC Notification Letter regarding ITC Investigation Nos. 
701-TA-593-594 and 731-TA-1402 and 1404 (January 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, 
Investigation Nos. 701-TA-583-594, 731-TA-1402 and 731-TA-1404 
(Final), Publication 4859, January 2019 (Final ITC Report).
    \4\ Id.
---------------------------------------------------------------------------

Scope of the Order

    The products covered by this order are welded line and structural 
pipe from China. For a complete description of the scope of this order, 
see the Appendix to this notice.

Antidumping Duty Order

    On January 30, 2019, in accordance with sections 735(b)(1)(A)(i) 
and (ii) and 735(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 from China are materially injuring a U.S. 
industry, and that imports of welded line pipe from China threaten 
material injury.\5\ As a result, and in accordance with sections 
735(c)(2) and 736 of the Act, we are publishing this antidumping 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 China. The ITC made an affirmative determination with respect to 
welded line pipe and 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 antidumping duties on entries of welded line 
pipe and welded structural pipe (subject merchandise) from China and 
not on entries of stainless steel pipe (excluded merchandise) from 
China.
---------------------------------------------------------------------------

    \5\ See ITC Notification; ITC Final Determination, 84 FR at 
1785.
---------------------------------------------------------------------------

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.\6\ Because the ITC determined that LTFV imports of 
welded line pipe from China are threatening material injury to a U.S. 
industry,\7\ Commerce will direct CBP that unliquidated entries of 
subject merchandise from China, entered or withdrawn from warehouse, 
are subject to the assessment of antidumping duties pursuant to section 
736 of the Act. Specifically, as a result of the ITC's final 
determination, in accordance with section 736(a) of the Act, Commerce 
will direct CBP to assess, upon further instruction by Commerce, 
antidumping duties equal to the amount by which the normal value of the 
merchandise exceeds the export price (or constructed export price) of 
the merchandise for all relevant entries of welded line pipe from 
China.
---------------------------------------------------------------------------

    \6\ Id. at 11-12.
    \7\ Id. at 1 and 3.
---------------------------------------------------------------------------

    Pursuant to section 736(b)(2) of the Act, duties shall be assessed 
on subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of the ITC's

[[Page 8084]]

notice of final determination if that determination is based on the 
threat of material injury, other than threat of material injury 
described in section 736(b)(1) of the Act.\8\ In addition, section 
736(b)(2) of the Act requires CBP to release any bond or other 
security, and refund any cash deposit made of estimated antidumping 
duties posted since Commerce's preliminary antidumping duty 
determination. Because the ITC's final determination with respect to 
welded line pipe from China is based on the threat of material injury 
and is not accompanied by a finding that injury would have resulted but 
for the imposition of suspension of liquidation of entries since 
Commerce's preliminary determination, section 736(b)(2) of the Act is 
applicable. Accordingly, antidumping duties will be assessed on 
unliquidated entries of welded line pipe from China entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of the ITC's notice of final determination in the Federal 
Register. Further, Commerce will direct CBP to terminate the suspension 
of liquidation for entries of welded line pipe from China entered, or 
withdrawn from warehouse, for consumption prior to the publication of 
the ITC's notice of final determination in the Federal Register. 
Commerce will also instruct CBP to refund any cash deposits made with 
respect to entries of welded line pipe entered, or withdrawn from 
warehouse, for consumption on or after August 27, 2018 (the date of 
publication of the Preliminary Determination), but before December 25, 
2018 (the date suspension of liquidation was discontinued in accordance 
with section 733(d) of the Act).
---------------------------------------------------------------------------

    \8\ Section 736(b)(1) of the Act states that ``{if the 
ITC{time} , in its final determination under section 735(b), finds 
material injury or threat of material injury which, but for the 
suspension of liquidation under section 733(d)(2) would have led to 
a finding of material injury, then entries of the subject 
merchandise, the liquidation of which has been suspended under 
section 733(d)(2), shall be subject to the imposition of antidumping 
duties under section 731.'')
---------------------------------------------------------------------------

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.\9\ Because the ITC 
found that LTFV imports of welded structural pipe from China are 
materially injuring a U.S. industry,\10\ Commerce will direct CBP that 
all unliquidated entries of subject merchandise from China, entered or 
withdrawn from warehouse, are subject to the assessment of antidumping 
duties pursuant to section 736 of the Act. Specifically, as a result of 
the ITC's final determination, in accordance with section 736(a) of the 
Act, Commerce will direct CBP to assess, upon further instruction by 
Commerce, antidumping duties equal to the amount by which the normal 
value of the merchandise exceeds the export price (or constructed 
export price) of the merchandise for all relevant entries of welded 
structural pipe from China. Antidumping duties will be assessed on 
unliquidated entries of welded structural pipe from China entered, or 
withdrawn from warehouse, for consumption on or after August 27, 2018, 
the date of publication of the Preliminary Determination,\11\ but not 
on entries occurring between the expiration of the provisional measures 
period and the date of publication of the ITC's notice of final 
determination in the Federal Register, as discussed further below.
---------------------------------------------------------------------------

    \9\ See Final ITC Report at 11-12.
    \10\ Id. at 1 and 3.
    \11\ See Large Diameter Welded Pipe from the People's Republic 
of China: Preliminary Determination of Sales at Less Than Fair 
Value, 83 FR 43644 (August 27, 2018) (Preliminary Determination).
---------------------------------------------------------------------------

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.\12\ Because the ITC made a negative 
determination of material injury or threat of material injury by reason 
of LTFV imports of stainless steel pipe from China,\13\ Commerce will 
direct CBP to terminate the suspension of liquidation for entries of 
stainless steel pipe from China entered, or withdrawn from warehouse, 
and refund all cash deposits with respect to these entries pursuant to 
section 735(c)(2) of the Act.
---------------------------------------------------------------------------

    \12\ Id. at 10.
    \13\ Id. at 1 and 3.
---------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 736 of the Act, Commerce will direct CBP 
to reinstitute the suspension of liquidation of subject merchandise 
(i.e., welded line and 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 
736(a)(1) of the Act, antidumping duties for each entry of the subject 
merchandise equal to the amount by which the normal value of the 
merchandise exceeds the export price (or constructed export price) of 
the 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. As stated in the Final 
Determination, Commerce is making no adjustments for export subsidies 
to the antidumping cash deposit rate in because we have made no 
findings in the companion countervailing duty investigation that any of 
the programs are export subsidies.\14\
---------------------------------------------------------------------------

    \14\ See Final Determination, 83 FR at 56817.

------------------------------------------------------------------------
                                                              Estimated
                                                              weighted-
                                                               average
                     Exporter/producer                         dumping
                                                                margin
                                                              (percent)
------------------------------------------------------------------------
China-wide Entity..........................................      132.63
------------------------------------------------------------------------

Notifications to Interested Parties

    This notice constitutes the antidumping duty order with respect to 
welded line and structural pipe from China pursuant to section 736(a) 
of the Act. Interested parties can find a list of antidumping duty 
orders currently in effect at http://enforcement.trade.gov/stats/iastats1.html.
    This order is published in accordance with sections 735(c) and 
736(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 pipe (other than 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.

[[Page 8085]]

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 order, 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 order if performed in 
the country of manufacture of the in-scope large diameter welded 
pipe.
    The large diameter welded pipe that is subject to this 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, 7305.19.5000, 7305.31.4000, 
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 order is dispositive.

[FR Doc. 2019-04050 Filed 3-5-19; 8:45 am]
 BILLING CODE 3510-DS-P