81 FR 47352 - Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From Mexico: 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 Mexico 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 47352-47354]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-17314]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-847]


Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From 
Mexico: 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) from Mexico 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: Blaine Wiltse or David Crespo, 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-
6345 or (202) 482-3693, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On March 1, 2016, the Department published the Preliminary 
Determination.\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\
---------------------------------------------------------------------------

    \1\ See Heavy Walled Rectangular Welded Carbon Steel Pipes and 
Tubes From Mexico: Affirmative Preliminary Determination of Sales at 
Less Than Fair Value, 81 FR 10587 (March 1, 2016) (Preliminary 
Determination).
    \2\ See Memorandum to Paul Piquado, entitled, ``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 Mexico,'' dated 
concurrently with this memorandum (Issues and Decision Memorandum).
---------------------------------------------------------------------------

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 conducted verification of the sales and cost information 
submitted by Maquilacero S.A. de C.V. (Maquilacero) and Productos 
Laminados de Monterrey S.A. de C.V. (Prolamsa) 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 Maquilacero and Prolamsa.\3\
---------------------------------------------------------------------------

    \3\ See Memorandum to the File from Blaine Wiltse and David 
Crespo, Senior Analysts, entitled, ``Verification of the Sales 
Response of Maquilacero S.A. de C.V. in the Antidumping Duty 
Investigation of Heavy Walled Rectangular Welded Carbon Steel Pipes 
and Tubes From Mexico,'' dated April 15, 2016; Memorandum to the 
File from Frederick W. Mines, Accountant, and Robert B. Greger, 
Senior Accountant, entitled, ``Verification of the Cost Response of 
Maquilacero S.A. de C.V. in the Antidumping Duty Investigation of 
Heavy Walled Rectangular Welded Carbon Steel Pipe and Tube from 
Mexico,'' dated May 11, 2016; Memorandum to the File from David 
Crespo, Senior Analyst, and Manuel Rey, Analyst, entitled, 
``Verification of Prolamsa USA in the 2014-2015 Antidumping Duty 
Investigation of Heavy Walled Rectangular Welded Carbon Steel Pipes 
and Tubes From Mexico,'' dated May 9, 2016; Memorandum to the File 
from David Crespo and Blaine Wiltse, Senior Analysts, entitled, 
``Verification of the Sales Response of Productos Laminados de 
Monterrey S.A. de C.V. in the Antidumping Duty Investigation of 
Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From 
Mexico,'' dated May 11, 2016; Memorandum to the File, from David 
Crespo and Blaine Wiltse, Senior Analysts, entitled, ``Verification 
of the Sales Response of a Reseller in the Antidumping Duty 
Investigation of Heavy Walled Rectangular Welded Carbon Steel Pipes 
and Tubes From Mexico,'' dated May 17, 2016; and Memorandum to the 
File from Robert B. Greger, Senior Accountant, entitled, 
``Verification of Productos Laminados de Monterrey, S.A. de C.V. in 
the Antidumping Duty Investigation of Heavy Walled Rectangular 
Welded Carbon Steel Pipes & Tubes From Mexico,'' dated March 31, 
2016.

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

[[Page 47353]]

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 
Maquilacero and Prolamsa. 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 Maquilacero's and 
Prolamsa's margins using publicly-ranged quantities of their sales of 
subject merchandise.\4\
---------------------------------------------------------------------------

    \4\ See Memorandum to the File from David Crespo, Senior 
Analyst, entitled, ``Calculation of the All-Others Rate for the 
Final Determination in the Less-Than-Fair-Value Investigation of 
Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From 
Mexico,'' 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).
---------------------------------------------------------------------------

Final Determination

    The final weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                  Exporter/Manufacturer                       dumping
                                                              margin
                                                             (percent)
------------------------------------------------------------------------
Maquilacero S.A. de C.V.................................            3.83
Productos Laminados de Monterrey, S.A. de C.V...........            5.21
All Others..............................................            4.91
------------------------------------------------------------------------

Disclosure

    We will disclose the calculations performed within five days of the 
date of any public announcement of this determination 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 Mexico, as described in Appendix I of this notice, which were 
entered, or withdrawn from 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 Mexico 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

[[Page 47354]]

IV. Margin Calculations
V. Discussion of the Issues
    1. Weight Basis for Comparison Methodology
    2. Home Market Rebates
    3. Home Market Commission Expenses
    4. Miscellaneous Adjustments Resulting from Sales Verification
    5. Purchases of Hot-Rolled Coils (HRC) from an Affiliated 
Supplier
    6. Interest Income Offsets
    7. Other Cost Corrections at Verification
    8. Level of Trade (LOT)
    9. Constructed Export Price (CEP) Offset Claim
    10. Affiliated Reseller Warehousing Expenses
    11. Credit Expenses
    12. U.S. Indirect Selling Expenses (ISE)
    13. Scrap Offset
VI. Recommendation

[FR Doc. 2016-17314 Filed 7-20-16; 8:45 am]
 BILLING CODE 3510-DS-P