80 FR 61371 - Welded Line Pipe From the Republic of Turkey: Final Affirmative Countervailing Duty Determination

DEPARTMENT OF COMMERCE
International Trade Administration

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

Page Range61371-61372
FR Document2015-25983

The Department of Commerce (the Department) determines that countervailable subsidies are being provided to producers and exporters of welded line pipe from the Republic of Turkey (Turkey) as provided in section 705 of the Tariff Act of 1930, as amended (the Act). The period of investigation (POI) is January 1, 2013, through December 31, 2013. For information on the estimated subsidy rates, see the ``Suspension of Liquidation'' 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 61371-61372]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-25983]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-489-823]


Welded Line Pipe From the Republic of Turkey: Final Affirmative 
Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of welded line pipe from the Republic of Turkey (Turkey) as provided in 
section 705 of the Tariff Act of 1930, as amended (the Act). The period 
of investigation (POI) is January 1, 2013, through December 31, 2013. 
For information on the estimated subsidy rates, see the ``Suspension of 
Liquidation'' section of this notice.

DATES: Effective Date: October 13, 2015.

FOR FURTHER INFORMATION CONTACT: Elizabeth Eastwood or Dennis McClure, 
Office II, AD/CVD Operations, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
3874 and (202) 482-5973, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The petitioners in this investigation are American Cast Iron Pipe 
Company, Energex (a division of JMC Steel Group), Maverick Tube 
Corporation, Northwest Pipe Company, Stupp Corporation (a division of 
Stupp Bros., Inc.), Tex-Tube Company, TMK IPSCO, and Welspun Tubular 
LLC USA. In addition to the Government of Turkey, the mandatory 
respondents in this investigation are Borusan Istikbal Ticaret, Borusan 
Mannesmann Boru Sanayi ve Ticaret A.S., Borusan Mannesmann Boru Yatirim 
Holding A.S., and Borusan Holding A.S. (collectively, Borusan) and 
Toscelik Profil ve Sac Endustrisi A.S., Tosyali Demir Celik Sanayi 
A.S., Tosyali Dis Ticaret A.S., Tosyali Elektrik Enerjisi Toptan Satis 
Ith. Ihr. A.S., and Tosyali Holding A.S. (collectively, Toscelik).
    The events that have occurred since the Department published the 
Preliminary Determination \1\ on March 20, 2015, are discussed in the 
Issues and Decision Memorandum, which is hereby incorporated in this 
notice.\2\ This memorandum also details the changes we made since the 
Preliminary Determination to the subsidy rates calculated for the 
mandatory respondents and all other producers/exporters. 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 http://access.trade.gov, and 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 the 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 Turkey: 
Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Determination With Final Antidumping 
Determination, 80 FR 14943 (March 20, 2015) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance, 
entitled, ``Issues and Decision Memorandum for the Final 
Determination in the Countervailing Duty Investigation of Welded 
Line Pipe from the Republic of Turkey,'' 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 or 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 Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum, dated concurrently 
with this notice. A list of the issues that parties have raised, and to 
which we responded in the Issues and Decision Memorandum, is attached 
to this notice as Appendix II.

Use of Facts Otherwise Available, Including Adverse Inferences

    On April 14, 2015, Borusan notified the Department that it would 
not participate in the statutorily mandated verification in this 
investigation. By refusing to participate in verification, Borusan 
significantly impeded this proceeding and provided information that 
cannot be verified as provided by section 782(i) of the Act. Thus, for 
the final determination, we are basing the countervailing duty (CVD) 
rate for Borusan on facts otherwise available, pursuant to sections 
776(a)(2)(C) and (D) of the Act. Further, because Borusan did not 
cooperate to the best of its ability in this investigation, we also 
determine that an adverse inference is warranted, pursuant to section 
776(b) of the Act. As adverse facts available (AFA), we have assigned 
Borusan a rate of 152.20 percent. For a full discussion of this issue, 
see the Issues and Decision Memorandum.

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated a rate for Toscelik. Section 705(c)(5)(A)(i) of the Act 
states that, for companies not individually investigated, we will 
determine an ``all others'' rate equal to the weighted-average 
countervailable subsidy rates established for exporters and producers 
individually investigated, excluding any zero and de minimis 
countervailable subsidy rates, and any rates determined entirely under 
section 776 of the Act. Where the rates for investigated companies are 
zero or de minimis, or based entirely on facts otherwise available, 
section 705(c)(5)(A)(ii) of the Act instructs the Department to 
establish an ``all others'' rate using ``any reasonable method.'' As 
discussed

[[Page 61372]]

above, we determined Borsuan's rate based entirely on AFA in accordance 
with sections 776(a) and (b) of the Act. Therefore, we used the rate 
calculated for Toscelik as the ``all others'' rate.
    We determine the total estimated net countervailable subsidy rates 
to be:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Borusan Istikbal Ticaret, Borusan Mannesmann Boru Sanayi          152.20
 ve Ticaret A.S., Borusan Mannesmann Boru Yatirim
 Holding A.S., and Borusan Holding A.S..................
Tos[ccedil]elik Profil ve Sac Endustrisi A.S., Tosyali              1.31
 Demir Celik Sanayi A.S., Tosyali Dis Ticaret A.S.,
 Tosyali Elektrik Enerjisi Toptan Satis Ith. Ihr. A.S.,
 and Tosyali Holding A.S.\3\............................
All Others..............................................            1.31
------------------------------------------------------------------------

    As a result of our affirmative Preliminary Determination, pursuant 
to sections 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of entries of 
subject merchandise from Turkey which were entered or withdrawn from 
warehouse, for consumption on or after March 20, 2015, the date of the 
publication of the Preliminary Determination in the Federal Register.
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    \3\ In its December 15, 2014, response, Toscelik stated that 
Toscelik Profil ve Sac Endustrisi A.S. merged with its cross-owned 
affiliate, Tosyali Metal Ambalaj Sanayi A.S. (Tosyali Metal). 
Because Tosyali Metal no longer exists as a separate entity, we have 
not included it in the list of companies above.
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    In accordance with section 703(d) of the Act, we later issued 
instructions to CBP to discontinue the suspension of liquidation for 
CVD purposes for subject merchandise entered, or withdrawn from 
warehouse, on or after July 18, 2015, but to continue the suspension of 
liquidation of all entries from March 20, 2015, through July 17, 2015, 
as appropriate.
    We will issue a CVD order and reinstate the suspension of 
liquidation in accordance with our final determination and under 
section 706(a) of the Act if the United States International Trade 
Commission (ITC) issues a final affirmative injury determination, and 
we will instruct CBP to require a cash deposit of estimated 
countervailing duties for such entries of 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 as a result of the suspension of 
liquidation will be refunded.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary 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.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to the 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.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) 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

I. Summary
II. Background
III. Use of Facts Otherwise Available and Adverse Inferences
IV. Subsidies Valuation Information
V. Benchmark Interest Rates
VI. Analysis of Programs
VII. Analysis of Comments
    1. Application of AFA to Borusan
    2. Provision of Hot-Rolled Steel (HRS) for Less than Adequate 
Remuneration (LTAR)--Whether Eregli Demir ve Celik Fabrikalari 
T.A.S. (Erdemir) and Iskenderun Iron & Steel Works Co. (Isdemir) Are 
``Authorites''
    3. Provision of HRS for LTAR--Using a Tier One or Tier Two 
Benchmark
    4. Other Arguments Related to the Provision of HRS for LTAR
    5. Provision of Land for LTAR
    6. The Sales Denominator Used for Toscelik
    7. Specificity and Countervailability of the Investment 
Encouragement Program: Customs Duty and Value Added Tax Exemption
VIII. Recommendation

[FR Doc. 2015-25983 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.
ContactElizabeth Eastwood or Dennis McClure, Office II, AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482- 3874 and (202) 482-5973, respectively.
FR Citation80 FR 61371 

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