81 FR 47347 - Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From the Republic of Korea: Final Determination of Sales at Less Than Fair Value

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 81, Issue 140 (July 21, 2016)

The Department of Commerce (the Department) determines that heavy walled rectangular welded carbon steel pipes and tubes (HWR pipes and tubes) from the Republic of Korea (Korea) are being, or are likely to be, sold in the United States at less than fair value (LTFV), as provided in section 735(a) of the Tariff Act of 1930, as amended (the Act). The period of investigation (POI) is July 1, 2014, through June 30, 2015. The final dumping margins of sales at LTFV are listed below in the ``Final Determination'' section of this notice.

[Federal Register Volume 81, Number 140 (Thursday, July 21, 2016)]
[Notices]
[Pages 47347-47349]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-17313]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-880]


Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes 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 
heavy walled rectangular welded carbon steel pipes and tubes (HWR pipes 
and tubes)

[[Page 47348]]

from the Republic of Korea (Korea) are being, or are likely to be, sold 
in the United States at less than fair value (LTFV), as provided in 
section 735(a) of the Tariff Act of 1930, as amended (the Act). The 
period of investigation (POI) is July 1, 2014, through June 30, 2015. 
The final dumping margins of sales at LTFV are listed below in the 
``Final Determination'' section of this notice.

DATES: Effective July 21, 2016.

FOR FURTHER INFORMATION CONTACT: Elizabeth Eastwood or Alice Maldonado, 
AD/CVD Operations, Office II, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
3874 or (202) 482-4682, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On March 1, 2016, the Department published the Preliminary 
Determination of sales at LTFV of HWR pipes and tubes from Korea.\1\ A 
summary of the events that occurred since the Department published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by parties for this final determination, may be found in the 
Issues and Decision Memorandum, which is hereby adopted by this 
notice.\2\
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    \1\ See Heavy Walled Rectangular Welded Carbon Steel Pipes and 
Tubes From the Republic of Korea: Final Determination of Sales at 
Less Than Fair Value, 81 FR 10585 (March 1, 2016) (Preliminary 
Determination).
    \2\ See Memorandum to Paul Piquado, ``Issues and Decision 
Memorandum for the Final Affirmative Determination in the Less-Than-
Fair-Value Investigation of Heavy Walled Rectangular Welded Carbon 
Steel Pipes and Tubes 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 HWR pipes and tubes of 
rectangular (including square) cross section, having a nominal wall 
thickness of not less than 4 mm. 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. 
A list of the issues raised is attached to this notice as Appendix II. 
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 B-8024 
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 and 
electronic versions of the Issues and Decision Memorandum are identical 
in content.

Verification

    As provided in section 782(i) of the Act, in February and March 
2016, we verified the sales and cost information submitted by mandatory 
respondents Dong-A Steel Company (DOSCO) and HiSteel Co., Ltd (HiSteel) 
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 DOSCO and 
HiSteel.\3\
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    \3\ See Memorandum to the File from Alice Maldonado and 
Elizabeth Eastwood, Senior Analysts, and Whitley Herndon, Analyst, 
entitled, ``Verification of the Sales Response of DOSCO America, 
Inc. in the Antidumping Duty Investigation of Heavy Walled 
Rectangular Welded Carbon Steel Pipes and Tubes From Korea,'' dated 
April 6, 2016; Memorandum to the file from Alice Maldonado and 
Elizabeth Eastwood, Senior Analysts, and Whitley Herndon, Analyst, 
entitled, ``Verification of the Sales Response of Dong-A Steel 
Company in the Antidumping Duty Investigation of Heavy Walled 
Rectangular Welded Carbon Steel Pipes and Tubes From Korea,'' dated 
April 8, 2016; Memorandum to the File, from Heidi K. Schriefer and 
Kristin Case, Senior Accountants, entitled, ``Verification of the 
Cost Response of Dong-A Steel Company in the Antidumping Duty Less 
Than Fair Value Investigation of Heavy Walled Rectangular Welded 
Carbon Steel Pipes and Tubes From the Republic of Korea,'' dated 
April 5, 2016; Memorandum to the file from Elizabeth Eastwood and 
Alice Maldonado, Senior Analysts, and Whitley Herndon, Analyst, 
entitled, ``Verification of the Sales Response of HiSteel Co., Ltd. 
in the Antidumping Duty Investigation of Heavy Walled Rectangular 
Welded Carbon Steel Pipes and Tubes From Korea,'' dated April 6, 
2016; and Memorandum to the File, from Kristin L. Case, Senior 
Accountant, entitled, ``Verification of the Cost Response of HiSteel 
Co., Ltd. in the Less-Than-Fair-Value Investigation of Heavy Walled 
Rectangular Welded Carbon Steel Pipes and Tubes From the Republic of 
Korea,'' dated April 6, 2016.
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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 
DOSCO and HiSteel. 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 established for exporters 
and producers individually investigated excluding any zero or de 
minimis margins, and margins determined entirely under section 776 of 
the Act. For the final determination, the Department calculated the 
``all others'' rate based on a weighted average of DOSCO's and 
HiSteel's margins using publicly-ranged quantities of their sales of 
subject merchandise.\4\
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    \4\ See Memorandum to the File from Alice Maldonado, Senior 
Analyst, entitled, ``Heavy Walled Rectangular Welded Carbon Steel 
Pipes and Tubes from the Republic of Korea: Calculation of the Final 
Margin for All Other Companies,'' dated July 14, 2016. With two 
respondents, we normally calculate (A) a weighted-average of the 
dumping margins calculated for the mandatory respondents; (B) a 
simple average of the dumping margins calculated for the mandatory 
respondents; and (C) a weighted-average of the dumping margins 
calculated for the mandatory respondents using each company's 
publicly-ranged values for the merchandise under consideration. We 
compare (B) and (C) to (A) and select the rate closest to (A) as the 
most appropriate rate for all other companies. See Ball Bearings and 
Parts Thereof From France, Germany, Italy, Japan, and the United 
Kingdom: Final Results of Antidumping Duty Administrative Reviews, 
Final Results of Changed-Circumstances Review, and Revocation of an 
Order in Part, 75 FR 53661, 53663 (September 1, 2010).
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Final Determination

    The final weighted-average dumping margins are as follows:

 
------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                  Exporter/Manufacturer                       dumping
                                                              margin
                                                             (percent)
------------------------------------------------------------------------
Dong-A Steel Company....................................            2.34
HiSteel Co., Ltd........................................            3.82
All Others..............................................            3.24
------------------------------------------------------------------------

Disclosure

    We will disclose the calculations performed within five days of the 
date of publication of this notice to parties in this proceeding in 
accordance with 19 CFR 351.224(b).

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 HWR pipes and tubes 
from Korea, as described in Appendix I of this notice, which were 
entered, or withdrawn from

[[Page 47349]]

warehouse, for consumption on or after March 1, 2016, 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 estimated amount by which the normal value exceeds the 
U.S. price as shown above.

International Trade Commission (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 HWR pipes and tubes 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: July 14, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The products covered by this investigation are certain heavy 
walled rectangular welded steel pipes and tubes of rectangular 
(including square) cross section, having a nominal wall thickness of 
not less than 4 mm. The merchandise includes, but is not limited to, 
the American Society for Testing and Materials (ASTM) A-500, grade B 
specifications, or comparable domestic or foreign specifications.
    Included products are those in which: (1) Iron predominates, by 
weight, over each of the other contained elements; (2) the carbon 
content is 2 percent or less, by weight; and (3) none of the 
elements below exceeds the quantity, by weight, respectively 
indicated:

 2.50 percent of manganese, or
 3.30 percent of silicon, or
 1.50 percent of copper, or
 1.50 percent of aluminum, or
 1.25 percent of chromium, or
 0.30 percent of cobalt, or
 0.40 percent of lead, or
 2.0 percent of nickel, or
 0.30 percent of tungsten, or
 0.80 percent of molybdenum, or
 0.10 percent of niobium (also called columbium), or
 0.30 percent of vanadium, or
 0.30 percent of zirconium.

    The subject merchandise is currently provided for in item 
7306.61.1000 of the Harmonized Tariff Schedule of the United States 
(HTSUS). Subject merchandise may also enter under HTSUS 
7306.61.3000. While the HTSUS subheadings and ASTM specification 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. Scope of the Investigation
IV. Margin Calculations
V. Discussion of the Issues
    1. U.S. Date of Sale
    2. Weight Basis for Comparison Methodology
    3. Costs for Non-Prime Merchandise
    4. Differential Pricing Rulemaking
    5. Differential Pricing Patterns and a Meaningful Difference
    6. Verification Corrections
    7. DOSCO's Constructed Export (CEP) Offset Claim
    8. Raw Material Costs for DOSCO
VI. Recommendation
[FR Doc. 2016-17313 Filed 7-20-16; 8:45 am]
BILLING CODE 3510-DS-P