80 FR 61366 - Welded Line Pipe From the Republic of Korea: Final Determination of Sales at Less Than Fair Value

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 80, Issue 197 (October 13, 2015)

Page Range61366-61368
FR Document2015-25980

The Department of Commerce (the Department) determines that welded line pipe from the Republic of Korea (Korea) is being, or is likely to be, sold in the United States at less than fair value (LTFV), as provided in section 733(b) of the Tariff Act of 1930, as amended (the Act). The period of investigation (POI) is October 1, 2013, through September 30, 2014. The final dumping margins of sales at LTFV are listed below in the ``Final Determination'' section of this notice.

Federal Register, Volume 80 Issue 197 (Tuesday, October 13, 2015)
[Federal Register Volume 80, Number 197 (Tuesday, October 13, 2015)]
[Notices]
[Pages 61366-61368]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-25980]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-876]


Welded Line Pipe From the Republic of Korea: Final Determination 
of Sales at Less Than Fair Value

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (the Department) determines that 
welded line pipe from the Republic of Korea (Korea) is being, or is 
likely to be, sold in the United States at less than fair value (LTFV), 
as provided in section 733(b) of the Tariff Act of 1930, as amended 
(the Act). The period of investigation (POI) is October 1, 2013, 
through September 30, 2014. The final dumping margins of sales at LTFV 
are listed below in the ``Final Determination'' section of this notice.

DATES: Effective Date: October 13, 2015.

FOR FURTHER INFORMATION CONTACT: David Goldberger or Ross Belliveau, 
AD/CVD Operations, Office II, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Ave. NW., Washington, DC 20230; telephone: (202) 482-4136 or (202) 482-
4952, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On May 22, 2015, the Department published the Preliminary 
Determination of sales at LTFV of welded line pipe from Korea.\1\ For a 
history of events following the publication of the Preliminary 
Determination, see the Issues and Decision Memorandum,\2\ which is 
hereby adopted by this notice. 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 it 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 http://enforcement.trade.gov/frn/index.html. The signed Issues and Decision Memorandum and 
electronic version of the Issues and Decision Memorandum are identical 
in content.
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    \1\ See Welded Line Pipe From the Republic of Korea: Preliminary 
Determination of Sales at Less Than Fair Value and Postponement of 
Final Determination, 80 FR 29620 (May 22, 2015) (Preliminary 
Determination).
    \2\ See Memorandum entitled ``Issues and Decision Memorandum for 
the Final Affirmative Determination in the Less-Than-Fair-Value 
Investigation of Welded Line Pipe from the Republic of Korea,'' 
dated concurrently with this notice (Issues and Decision 
Memorandum).
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Scope of the Investigation

    The scope of the investigation covers welded line pipe, which is 
carbon and alloy steel pipe of a kind used for oil and gas pipelines, 
not more than 24 inches in nominal outside diameter. For a complete 
description of the scope of the investigation, see Appendix I.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are addressed in the Issues and Decision 
Memorandum,\3\ which is hereby adopted by this notice. A list of the 
issues raised is attached to this notice as Appendix II.
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    \3\ See Id.
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Verification

    As provided in section 782(i) of the Act, during the period June 
through August 2015, we verified the sales and cost information 
submitted by HYSCO and SeAH for use in our final determination. We used 
standard verification procedures, including an examination of relevant 
accounting and production records, and original source documents 
provided by HYSCO and SeAH.\4\
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    \4\ See Memoranda to the File entitled ``Verification of the 
Cost Response of SeAH Steel Corporation in the Antidumping Duty 
Investigation of Welded Line Pipe from Korea,'' and ``Verification 
of the Cost Response of Hyundai HYSCO Co. Ltd. in the Antidumping 
Duty Investigation of Welded Line Pipe from South Korea,'' dated 
July 31, 2015; Memorandum to the File entitled ``Verification of the 
Sales Responses of Hyundai HYSCO (HYSCO),'' dated August 18, 2015; 
and Memorandum to the File entitled ``Verification of the Sales 
Responses of SeAH Steel Corporation (SeAH) and Pusan Pipe America 
(PPA),'' dated August 24, 2015.
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we made certain changes to the margin calculations for 
HYSCO and SeAH. For a discussion of these changes, see the ``Margin 
Calculations'' section of the Issues and Decision Memorandum.

All-Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated all-
others rate shall be an amount equal to the weighted-average of the 
estimated weighted-average dumping margins

[[Page 61367]]

established for exporters and producers individually investigated 
excluding any zero or de minimis margins, and margins determined 
entirely under section 776 of the Act. In this investigation, we 
calculated weighted-average dumping margins for both mandatory 
respondents that are above de minimis and which are not based on 
section 776 of the Act. However, because there are only two relevant 
weighted-average dumping margins for this final determination, using a 
weighted-average of these two rates risks disclosure of business 
proprietary data. Therefore, the Department assigned a margin to the 
all-others rate companies based on the simple average of the two 
mandatory respondents' rates.\5\
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    \5\ See Memorandum to the File entitled ``Calculation of the 
All-Others Rate for the Final Determination in the Antidumping Duty 
Investigation of Welded Line Pipe from the Republic of Korea,'' 
dated concurrently with this memorandum.
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Final Determination

    The final weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                               Weighted
                                                                Average
                    Exporter/Manufacturer                       dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Hyundai HYSCO\6\............................................        6.19
SeAH Steel Corporation......................................        2.53
All-Others..................................................        4.36
------------------------------------------------------------------------

Disclosure

    We will disclose the calculations performed within five days of the 
date of any public announcement of this notice to parties in this 
proceeding in accordance with 19 CFR 351.224(b).
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    \6\ See discussion in footnote 2 above.
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Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, the Department 
will instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of welded line pipe from 
Korea, as described in Appendix I of this notice, which were entered, 
or withdrawn from warehouse, for consumption on or after May 22, 2015, 
the date of publication of the preliminary determination of this 
investigation in the Federal Register.
    Further, the Department will instruct CBP to require a cash deposit 
equal to the amount by which normal value exceeds U.S. price as 
follows: (1) For the mandatory respondents listed above, the cash 
deposit rate will be equal to the dumping margin which the Department 
determined in this final determination adjusted, as appropriate, for 
export subsidies found in the final determination of the companion 
countervailing duty investigation; \7\ (2) if the exporter is not a 
mandatory respondent identified in this investigation, but the producer 
is, the cash deposit rate will be the rate established for the producer 
of the subject merchandise; and (3) the cash deposit rates for all 
other producers or exporters will be 4.36 percent. The suspension of 
liquidation instructions will remain in effect until further notice.
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    \7\ In this case, although the product under investigation is 
also subject to a countervailing duty investigation, the Department 
found no countervailing duty determined to constitute an export 
subsidy. Therefore, we did not offset the cash deposit rates shown 
above for purposes of this determination.
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ITC Notification

    In accordance with section 735(d) of the Act, we will notify the 
ITC of the final affirmative determination of sales at LTFV. Because 
the final determination in this proceeding is affirmative, in 
accordance with section 735(b)(2) 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 line pipe from Korea no later than 45 days 
after our final determination. If 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, the Department will issue an 
antidumping duty order directing CBP to assess, upon further 
instruction by the Department, antidumping duties on all imports of the 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation.

Notification Regarding Administrative Protective Orders (APO)

    This notice serves as a reminder to parties subject to APO of their 
responsibility concerning the disposition of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely 
notification of the return or destruction of APO materials, or 
conversion to judicial protective order, is hereby requested. Failure 
to comply with the regulations and the terms of an APO is a 
sanctionable violation.
    This determination and this notice are issued and published 
pursuant to sections 735(d) and 777(i)(1) of the Act.

    Dated; October 5, 2015.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is circular welded 
carbon and alloy steel (other than stainless steel) pipe of a kind 
used for oil or gas pipelines (welded line pipe), not more than 24 
inches in nominal outside diameter, regardless of wall thickness, 
length, surface finish, end finish, or stenciling. Welded line pipe 
is normally produced to the American Petroleum Institute (API) 
specification 5L, but can be produced to comparable foreign 
specifications, to proprietary grades, or can be non-graded 
material. All pipe meeting the physical description set forth above, 
including multiple-stenciled pipe with an API or comparable foreign 
specification line pipe stencil is covered by the scope of this 
investigation.
    The welded line 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, 7305.11.5000, 
7305.12.1030, 7305.12.5000, 7305.19.1030, 7305.19.5000, 
7306.19.1010, 7306.19.1050, 7306.19.5110, and 7306.19.5150. The 
subject merchandise may also enter in HTSUS 7305.11.1060 and 
7305.12.1060. 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

General Comments

1. Differential Pricing Analysis
2. Other Issues Related to Differential Pricing Analysis
3. Selection of Additional Mandatory/Voluntary Respondents
4. Consolidation of Grade Codes
5. Reasonableness of the Reported Costs

Company-Specific Comments

HYSCO

6. HYSCO's Classification of Certain ``Local Sales'' as Home Market 
Sales
7. Sales of Non-Prime Merchandise
8. Revision of Certain Home Market Shipment and Sales Dates
9. Allocation of Full Costs to the Production of Non-Prime Products
10. Alleged Errors Relating to the Major Input Analysis
11. Revision of G&A Expenses
12. Financial Expense Ratio
13. Constructed Value Profit
14. Affiliated Processors' Cost Data and Adjustments to the Toll 
Processing Costs
15. Adjustment to Steel Costs to Reflect Yield Loss
16. Unreconciled Cost Difference
17. Adjustment for Certain Fees Paid to Affiliates

SeAH

18. Domestic Inland Freight

[[Page 61368]]

19. U.S. Credit Expenses
20. U.S. Indirect Selling Expenses
21. Affiliated Party Purchases
22. G&A Expenses
23. Production Costs of the Pohang Plant
24. Financial Expenses

[FR Doc. 2015-25980 Filed 10-9-15; 8:45 am]
BILLING CODE 3510-DS-P


Current View
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
DatesEffective Date: October 13, 2015.
ContactDavid Goldberger or Ross Belliveau, AD/CVD Operations, Office II, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Ave. NW., Washington, DC 20230; telephone: (202) 482-4136 or (202) 482- 4952, respectively.
FR Citation80 FR 61366 

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