81 FR 12691 - Oil Country Tubular Goods From Turkey: Notice of Court Decision Not in Harmony With the Final Determination of the Countervailing Duty Investigation

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 81, Issue 47 (March 10, 2016)

On February 22, 2016, the United States Court of International Trade (CIT) sustained \1\ the Department of Commerce's (the Department) final results of a redetermination \2\ issued pursuant to the CIT's remand orders in Borusan Mannesmann Boru Sanayi Ve Ticaret A.S. and Borusan Istikbal Ticaret v. United States, 61 F. Supp. 3d 1306 (CIT April 22, 2015) (Borusan) and Maverick Tube Corporation v. United States, Consol. Court No. 14-00229, Slip Op. 15-59 (CIT June 15, 2015) (Maverick) \3\, with respect to the Department's Final Determination of the countervailing duty (CVD) investigation of oil country tubular goods from Turkey.\4\ Consistent with the decision of the United States Court of Appeals for the Federal Circuit (CAFC) in Timken Co. v. United States, 893 F.2d 337 (Fed. Cir. 1990) (Timken), as clarified by Diamond Sawblades Mfrs. Coalition v. United States, 626 F.3d 1374 (Fed. Cir. 2010) (Diamond Sawblades), the Department is notifying the public that the Court's final judgment in this case is not in harmony with the Final Determination, and that the Department is amending the Final Determination with respect to Borusan Mannesmann Boru Sanayi ve Ticaret A.S. (Borusan), Toscelik Profil ve Sac Endustrisi A.S. (Toscelik), and the ``all others'' rate. ---------------------------------------------------------------------------

[Federal Register Volume 81, Number 47 (Thursday, March 10, 2016)]
[Notices]
[Pages 12691-12692]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-05408]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-489-817]


Oil Country Tubular Goods From Turkey: Notice of Court Decision 
Not in Harmony With the Final Determination of the Countervailing Duty 
Investigation

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

SUMMARY: On February 22, 2016, the United States Court of International 
Trade (CIT) sustained \1\ the Department of Commerce's (the Department) 
final results of a redetermination \2\ issued pursuant to the CIT's 
remand orders in Borusan Mannesmann Boru Sanayi Ve Ticaret A.S. and 
Borusan Istikbal Ticaret v. United States, 61 F. Supp. 3d 1306 (CIT 
April 22, 2015) (Borusan) and Maverick Tube Corporation v. United 
States, Consol. Court No. 14-00229, Slip Op. 15-59 (CIT June 15, 2015) 
(Maverick) \3\, with respect to the Department's Final Determination of 
the countervailing duty (CVD) investigation of oil country tubular 
goods from Turkey.\4\ Consistent with the decision of the United States 
Court of Appeals for the Federal Circuit (CAFC) in Timken Co. v. United 
States, 893 F.2d 337 (Fed. Cir. 1990) (Timken), as clarified by Diamond 
Sawblades Mfrs. Coalition v. United States, 626 F.3d 1374 (Fed. Cir. 
2010) (Diamond Sawblades), the Department is notifying the public that 
the Court's final judgment in this case is not in harmony with the 
Final Determination, and that the Department is amending the Final 
Determination with respect to Borusan Mannesmann Boru Sanayi ve Ticaret 
A.S. (Borusan), Toscelik Profil ve Sac Endustrisi A.S. (Toscelik), and 
the ``all others'' rate.
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    \1\ See Maverick Tube Corporation v. United States, CIT Consol. 
Court No. 14-00229, Slip Op. 16-16 (February 22, 2016).
    \2\ See Final Results of Remand Redetermination, Court No. 14-
00229, dated August 31, 2015, available at: http://ia.ita.doc.gov/remands/ (Remand Redetermination).
    \3\ On June 22, 2015, the CIT granted a motion to consolidate 
Court No. 14-00214 into Consolidated Court No. 14-00229.
    \4\ See Certain Oil Country Tubular Goods From the Republic of 
Turkey: Final Affirmative Countervailing Duty Determination and 
Final Affirmative Critical Circumstances Determination, 79 FR 41964 
(July 18, 2014) (Final Determination). The Department issued a 
countervailing duty order in this proceeding on September 10, 2014. 
See Certain Oil Country Tubular Goods From India and the Republic of 
Turkey: Countervailing Duty Orders and Amended Affirmative Final 
Countervailing Duty Determination for India, 79 FR 53688 (September 
10, 2014) (Order).

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DATES: Effective Date: March 3, 2016.

FOR FURTHER INFORMATION CONTACT: Peter Zukowski or Nicholas Czajkowski, 
AD/CVD Operations, Office I, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW., Washington, DC, 20230; telephone (202) 482-0189 or (202) 
482-1395, respectively.

SUPPLEMENTARY INFORMATION:

Background

    In Borusan, the CIT remanded for further consideration the 
Department's finding of distortion in the Turkish hot-rolled steel 
(HRS) market, the Department's selection of a HRS benchmark, and the 
Department's application of facts available with adverse inferences 
with respect to purchases of HRS by the respondent Borusan. In 
Maverick, the CIT remanded issues pertaining to the Department's HRS 
benchmark calculations as well and, in addition, the Department's 
benchmark valuation for a parcel of land that the Government of Turkey 
(GOT) granted to the respondent Toscelik in 2008 for less than adequate 
remuneration (LTAR).
    On August 31, 2015, the Department issued its Remand 
Redetermination. In its Remand Redetermination, the Department, under 
protest, conducted a new HRS market analysis consistent with the 
Court's remand order, determined that under that specific analysis the 
HRS market was not distorted in Turkey, and pursuant to section 19 CFR 
351.511(a)(2)(ii), determined to use transaction prices in Turkey as a 
benchmark to calculate the benefit from the provision of HRS to Borusan 
and Toscelik during the period of investigation.\5\ In addition, the 
Department revised the benchmark valuation to calculate the benefit

[[Page 12692]]

Toscelik received from the provision of the land parcel for LTAR.\6\ 
The resulting calculations have changed the countervailing duty rates 
calculated for Borusan, Toscelik, and the all others rate.
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    \5\ Remand Redetermination at 18.
    \6\ Id. at 28.
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    As explained above, on February 22, 2016, the CIT affirmed the 
Department's Remand Redetermination.

Timken Notice

    In its decision in Timken, as clarified by Diamond Sawblades, the 
CAFC held that, pursuant to section 516A(e) of the Tariff Act of 1930, 
as amended (the Act), the Department must publish a notice of a court 
decision that is not ``in harmony'' with a Department determination and 
must suspend liquidation of entries pending a ``conclusive'' court 
decision. The CIT's February 22, 2016, final judgment affirming the 
Remand Redetermination constitutes a final decision of that court which 
is not in harmony with the Final Determination. This notice is 
published in fulfillment of the publication requirements of Timken. 
Accordingly, the Department will continue suspension of liquidation of 
the subject merchandise pending expiration of the period of appeal or, 
if appealed, pending a final and conclusive court decision.

Amended Final Determination

    Because there is now a final court decision with respect to the 
Final Determination, the Department amends its Final Determination. The 
Department finds that the following revised net countervailable subsidy 
rates exist:

------------------------------------------------------------------------
                                                            Net subsidy
                    Producer/exporter                     rate (percent)
------------------------------------------------------------------------
Borusan Istikbal Ticaret, Borusan Mannesmann Boru                   2.39
 Sanayi, Borusan Mannesmann Boru Yatirim Holding A.S.,
 and Borusan Holding A.S................................
Tosyali Dis Ticaret A.S, Tos[ccedil]elik Profil ve Sac            * 0.95
 Endustrisi A.S., Tosyali Elektrik Enerjisi Toptan Satis
 Ith. Ihr. A.S., Tosyali Demir Celik San. A.S., and
 Tosyali Holding A.S....................................
All Others..............................................            2.39
------------------------------------------------------------------------
* De minimis.

    Because the revised countervailable subsidy rate for Toscelik is de 
minimis, there is now a negative countervailing duty determination for 
Toscelik. Accordingly, the Department will instruct United States 
Customs and Border Protection (CBP) to continue suspension of 
liquidation of Toscelik's subject merchandise, but set the cash deposit 
rate for Toscelik to zero pending a final and conclusive court 
decision.
    For Borusan, the Department will instruct CBP to set the cash 
deposit rate to the rate listed above, again, pending a final and 
conclusive court decision.
    In the Final Determination, in accordance with section 705(c)(5)(A) 
of the Act, for companies not individually investigated, we applied an 
``all-others'' rate of 9.21 percent. This rate was calculated as the 
average of the rates determined for Borusan and Toscelik (15.89 and 
2.53, respectively).\7\ As noted above, Toscelik's amended 
countervailable subsidy rate is de minimis. Section 705(c)(5)(i) of the 
Act stipulates that the ``all-others'' rate should exclude zero and de 
minimis rates calculated for the companies individually investigated. 
Therefore, for purposes of this amended Final Determination, the 
Department will instruct CBP that the ``all-others'' cash deposit rate 
is to be amended to Borusan's revised calculated subsidy rate, 2.39 
percent.
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    \7\ See Final Determination, 79 FR at 41965.
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    This notice is issued and published in accordance with sections 
516A(e)(1), 705(c)(1)(B), and 777(i)(1) of the Act.

    Dated: March 4, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2016-05408 Filed 3-9-16; 8:45 am]
 BILLING CODE 3510-DS-P