81 FR 47355 - Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From the Republic of Turkey: Final Determination of Sales at Less Than Fair Value

DEPARTMENT OF COMMERCE
International Trade Administration

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

Page Range47355-47357
FR Document2016-17316

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 Turkey (Turkey) 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 Issue 140 (Thursday, July 21, 2016)
[Federal Register Volume 81, Number 140 (Thursday, July 21, 2016)]
[Notices]
[Pages 47355-47357]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-17316]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[A-489-824]


Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From 
the Republic of Turkey: 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 the Republic of Turkey (Turkey) 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: Ross Belliveau or Rebecca Trainor, 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-
4952 and (202) 482-4007, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On March 1, 2016,\1\ the Department published the Preliminary 
Determination. 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 the Republic of Turkey: Final Determination of Sales at 
Less Than Fair Value, 81 FR 10583 (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 Turkey,'' dated 
concurrently with this notice (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 March and April 2016, 
we conducted verification of the sales and cost information submitted 
by MMZ Boru Profil Uretim Sanayi Ve Tic. A.S. (MMZ) and Ozdemir Boru 
Profil San. Ve Tic. Ltd. Sti. (Ozdemir) 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 MMZ and Ozdemir.\3\
---------------------------------------------------------------------------

    \3\ For discussion of our verification findings with respect to 
each company, see the following memoranda: Memorandum to the File 
from Rebecca Trainor and Aqmar Rahman, ``Verification of the Sales 
Response of MMZ Onur Boru Profil Uretim Sanayi Ve Tic. A.S. in the 
Antidumping Duty Investigation of Heavy Walled Rectangular Welded 
Carbon Steel Pipes and Tubes from Turkey,'' dated May 16, 2016; 
Memorandum to the File from Gary Urso and Stephanie Arthur, 
``Verification of the Cost Response of MMZ Onur Boru Profil Uretim 
Sanayi. Ve Tic. in the Antidumping Duty Less Than Fair Value 
Investigation of Heavy Walled Rectangular Welded Carbon Steel Pipes 
and Tubes from the Republic of Turkey,'' dated May 6, 2016; 
Memorandum to the File from Ross Belliveau, ``Verification of the 
Sales Response of Ozdemir Boru Profil San. Ve Tic. Ltd. Sti. in the 
Antidumping Duty Investigation of Heavy Walled Rectangular Welded 
Carbon Steel Pipes and Tubes from Turkey,'' dated May 17, 2016; and 
Memorandum to the File from Stephanie Arthur and Gary Urso, 
``Verification of the Cost Response of Ozdemir Boru Profil San. Ve 
Tic. Ltd. Sti. in the Antidumping Duty Less Than Fair Value 
Investigation of Heavy Walled Rectangular Welded Carbon Steel Pipes 
and Tubes from the Republic of Turkey,'' dated May 6, 2016.
---------------------------------------------------------------------------

Changes Since the Preliminary Determination and Use of Adverse Facts 
Available

    Based on our analysis of the comments received and our findings at 
verification, we made certain changes to the margin calculations for 
Ozdemir. In addition, we revised the margin for MMZ to reflect the 
application of facts available with an adverse inference, pursuant to 
sections 776(a)(1), 776(a)(2)(A), (C), and (D), and 776(b) of the Act. 
For a discussion of these changes, see the Issues and Decision 
Memorandum. We also revised the all-others rate as explained below.

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

[[Page 47356]]

margins determined entirely under section 776 of the Act. Pursuant to 
section 735(c)(5)(B) of the Act, if the estimated weighted-average 
dumping margins established for all exporters and producers 
individually examined are zero, de minimis or determined based entirely 
under section 776 of the Act, the Department may use any reasonable 
method to establish the estimated dumping margin for all other 
producers or exporters. We calculated a margin of zero percent for the 
only cooperative mandatory respondent in this investigation, Ozdemir, 
and applied a margin based entirely on adverse facts available (AFA) 
for MMZ. Therefore, pursuant to section 735(c)(5)(B) of the Act, we 
determine that it is reasonable to calculate the all-others rate based 
on a simple average of Ozdemir's zero percent margin and MMZ's AFA 
margin.\4\
---------------------------------------------------------------------------

    \4\ See e.g., Notice of Final Determination of Sales at Less 
Than Fair Value: Polyethylene Retail Carrier Bags From Malaysia, 69 
FR 34128 (June 18, 2004).
---------------------------------------------------------------------------

Final Determination

    The final weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                             Weighted-
                                              average
          Exporter/Manufacturer               dumping      Cash deposit
                                              margins     rate (percent)
                                             (percent)
------------------------------------------------------------------------
MMZ Boru Profil Uretim Sanayi Ve Tic.              35.66           35.66
 A.S....................................
Ozdemir Boru Profil San. Ve Tic. Ltd.               0.00            0.00
 Sti....................................
All Others..............................           17.83           17.73
------------------------------------------------------------------------

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 Turkey, 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. In the event an AD order is 
issued, because Ozdemir's weighted-average dumping margin is zero, 
Ozdemir would be excluded from the AD order.
    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, adjusted where appropriate for export 
subsidies found in the final determination of the companion 
countervailing duty investigation. Consistent with our longstanding 
practice, where the product under investigation is also subject to a 
concurrent countervailing duty investigation, we instruct CBP to 
require a cash deposit equal to the amount by which the NV exceeds the 
U.S. price, less the amount of the countervailing duty determined to 
constitute any export subsidies.\5\ Therefore, in the event that a 
countervailing duty order is issued and suspension of liquidation is 
resumed in the companion countervailing duty investigation on HWR pipes 
and tubes from Turkey, the Department will instruct CBP to require cash 
deposits adjusted by the amount of export subsidies, as appropriate. 
These adjustments are reflected in the final column of the rate chart, 
above.\6\ Until such suspension of liquidation is resumed in the 
companion countervailing duty investigation, and so long as suspension 
of liquidation continues under this antidumping duty investigation, the 
cash deposit rates for this antidumping duty investigation will be the 
rates identified in the weighted-average margin column in the rate 
chart, above.
---------------------------------------------------------------------------

    \5\ See, e.g., Welded Line Pipe From the Republic of Turkey: 
Final Determination of Sales at Less Than Fair Value, 80 FR 61362 
(October 13, 2015) and Notice of Final Determination of Sales at 
Less Than Fair Value and Negative Critical Circumstances 
Determination: Bottom Mount Combination Refrigerator-Freezers From 
the Republic of Korea, 77 FR 17413 (March 26, 2012).
    \6\ See Memorandum to the File from Rebecca Trainor, 
``Calculation of the All Others Rate,'' dated concurrently with this 
notice.
---------------------------------------------------------------------------

International Trade Comission (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 Turkey 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.

[[Page 47357]]

    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. Application of Facts Available and Use of Adverse Inference
VI. Discussion of the Issues
    1. Assignment of Margin Based on AFA to MMZ
    2. Weight Basis for Comparison Methodology
    3. Calculation of Duty Drawback Adjustment
    4. Which DIIBs to Include in Calculating the Duty Drawback 
Adjustment
    5. Offset of Duty Drawback Adjustment for Related Expenses
    6. Application of the Duty Drawback Adjustment in the Margin 
Program
    7. U.S. Date of Sale
    8. Short-Term Interest Rate in the Home Market
    9. Returns
    10. Adjustments to Ozdemir's Cost of Manufacturing
    11. Reallocation of Costs for Non-Prime Merchandise
VII. Recommendation

[FR Doc. 2016-17316 Filed 7-20-16; 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 July 21, 2016.
ContactRoss Belliveau or Rebecca Trainor, 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- 4952 and (202) 482-4007, respectively.
FR Citation81 FR 47355 

2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR