83 FR 16296 - Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel From India: Final Affirmative Determination of Sales at Less than Fair Value

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 73 (April 16, 2018)

Page Range16296-16298
FR Document2018-07851

The Department of Commerce (Commerce) determines that imports of certain cold-drawn mechanical tubing of carbon and alloy steel (cold-drawn mechanical tubing) from India are being, or are likely to be, sold in the United States at less than fair value (LTFV) during the period of investigation (POI) April 1, 2016, through March 31, 2017.

Federal Register, Volume 83 Issue 73 (Monday, April 16, 2018)
[Federal Register Volume 83, Number 73 (Monday, April 16, 2018)]
[Notices]
[Pages 16296-16298]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-07851]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-533-873]


Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel 
From India: Final Affirmative Determination of Sales at Less than Fair 
Value

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

SUMMARY: The Department of Commerce (Commerce) determines that imports 
of certain cold-drawn mechanical tubing of carbon and alloy steel 
(cold-drawn mechanical tubing) from India are being, or are likely to 
be, sold in the United States at less than fair value (LTFV) during the 
period of investigation (POI) April 1, 2016, through March 31, 2017.

DATES: Effective Date: April 16, 2018.

FOR FURTHER INFORMATION CONTACT: Susan Pulongbarit or Omar Qureshi, AD/
CVD Operations, Office V, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-4031 or (202) 
482-5307, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On November 22, 2017, Commerce published in the Federal Register 
the preliminary affirmative determination of sales at LTFV in the 
antidumping duty (AD) investigation of cold-drawn mechanical tubing 
from India.\1\ On January 9, 2018, Commerce published the Amended 
Preliminary Determination in the Federal Register.\2\ Commerce invited 
comments from interested parties on the Preliminary Determination.\3\ 
The petitioners, ArcelorMittal Tubular Products, Michigan Seamless 
Tube, LLC, Plymouth Tube Co. USA, PTC Alliance Corp., Webco Industries, 
Inc., and Zekelman Industries, Inc. (collectively, the petitioners), 
and the two mandatory respondents, Goodluck India Limited (Goodluck), 
and Tube Products of India, Ltd. a unit of Tube Investments of India 
Limited (collectively, TPI) filed case and rebuttal briefs. Commerce 
exercised its discretion to toll all deadlines affected by the closure 
of the Federal Government from January 20 through 22, 2018. As a 
result, the revised deadline for the final determination of this 
investigation is now April 9, 2018.\4\
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    \1\ See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy 
Steel from India: Preliminary Affirmative Determination of Sales at 
Less than Fair Value, in Part, Postponement of Final Determination, 
and Extension of Provisional Measures, 82 FR 55567 (Preliminary 
Determination).
    \2\ See Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel 
from India: Amended Preliminary Determination of Sales at Less than 
Fair Value, 83 FR 1021 (Amended Preliminary Determination).
    \3\ See Memorandum, ``Antidumping Investigation of Cold-Drawn 
Mechanical Tubing from India: Case Brief Schedule,'' February 8, 
2018.
    \4\ See Memorandum for The Record from Christian Marsh, Deputy 
Assistant Secretary for Enforcement and Compliance, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance, ``Deadlines Affected by the Shutdown of 
the Federal Government'' (Tolling Memorandum), dated January 23, 
2018. All deadlines in this segment of the proceeding have been 
extended by 3 days.
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    A summary of the events that occurred since Commerce 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 
accompanying Issues and Decision Memorandum.\5\ 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 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. 
The signed and electronic versions of the Issues and Decision 
Memorandum are identical in content.
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    \5\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-than-Fair-Value 
Investigation of Certain Cold-Drawn Mechanical Tubing of Carbon and 
Alloy Steel from India,'' dated concurrently with this determination 
and hereby adopted by this notice (Issues and Decision Memorandum or 
IDM).
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Scope of the Investigation

    The product covered by this investigation is cold-drawn mechanical 
tubing from India. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    Certain interested parties commented on the scope of the 
investigation as it appeared in the Preliminary Scope Decision 
Memorandum.\6\ On December 4, 2017, the petitioners withdrew a portion 
of their comments regarding the scope language.\7\ Commerce addressed 
all scope comments received in the Final Scope Decision Memorandum.\8\
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    \6\ See Memorandum, ``Certain Cold-Drawn Mechanical Tubing of 
Carbon and Alloy Steel from the Federal Republic of Germany, India, 
Italy, the Republic of Korea, the People's Republic of China, and 
Switzerland: Scope Comments Decision Memorandum for the Preliminary 
Determinations,'' dated November 15, 2017 (Preliminary Scope 
Decision Memorandum).
    \7\ See the petitioners' letter, ``Certain Cold-Drawn Mechanical 
Tubing from Germany et al.--EN-10305-3,'' dated December 4, 2017.
    \8\ See Memorandum, ``Certain Cold-Drawn Mechanical Tubing of 
Carbon and Alloy Steel from the Federal Republic of Germany, India, 
Italy, the Republic of Korea, the People's Republic of China, and 
Switzerland: Scope Decision Memorandum for the Final Determinations: 
Final Scope Decision Memorandum,'' dated December 4, 2017 (Final 
Scope Decision Memorandum).
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Period of Investigation

    The POI is April 1, 2016, through March 31, 2017.

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), between November and December 2017, Commerce conduced a 
verification of the sales and cost data reported by Goodluck and TPI. 
We used standard verification procedures, including an examination of 
relevant accounting and production records, and original source 
documents provided by the respondents.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs that were 
submitted by interested parties in this investigation are addressed in 
the Issues and Decision Memorandum. A list of these issues is attached 
to this notice at Appendix II.

Use of Facts Available and Adverse Facts Available

    For purposes of this final determination, Commerce determined 
Goodluck's margin on the basis of facts available with adverse 
inferences, pursuant to sections 776(a)(1), 776(a)(2)(B)-(C), and 
776(b) of the Act. For further information, see the Issues and Decision 
Memorandum.

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 a 
discussion of these changes, see the Issues and Decision Memorandum.

All-Others Rate

    Sections 735(c)(1)(B)(i)(II) and 735(c)(5) of the Act provide that 
in the final determination Commerce shall determine an estimated all-
others rate for all exporters and producers not

[[Page 16297]]

individually investigated. 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 any margins determined 
entirely under section 776 of the Act. Because TPI is the only 
respondent in this investigation for which Commerce calculated a 
company-specific rate which is not zero, de minimis or based entirely 
on facts available, pursuant to section 735(c)(5)(A) of the Act, we are 
using the weighted-average dumping margin calculated for TPI as the 
estimated weighted-average dumping margin assigned to all other 
producers and exporters of the merchandise under consideration.

Final Determination Margins

    The final estimated weighted-average dumping margins are as 
follows:

------------------------------------------------------------------------
                                             Estimated
                                             weighted-     Cash deposit
          Exporter or producer                average     rate (adjusted
                                          dumping margin  for offset(s))
                                             (percent)       (percent)
------------------------------------------------------------------------
Goodluck India Limited..................          33.80*           33.70
Tube Products of India, Ltd. a unit of              8.26            5.87
 Tube Investments of India Limited
 (collectively, TPI)....................
All-Others..............................            8.26            5.87
------------------------------------------------------------------------
* (AFA)

Disclosure

    We will disclose the calculations performed with respect to 
interested parties in this proceeding within five days of the public 
announcement of this final determination in accordance with 19 CFR 
351.224(b). With respect to Goodluck, because Commerce relied on facts 
available with adverse inferences, there are no calculations to 
disclose.

Continuation of Suspension of Liquidation

    In accordance with 735(c)(1)(B) of the Act, Commerce will instruct 
U.S. Customs and Border Protection (CBP) to continue to suspend 
liquidation of all appropriate entries of cold-drawn mechanical tubing 
from India, as described in Appendix I of this notice, which were 
entered, or withdrawn from warehouse, for consumption on or after 
November 22, 2017, the date of publication of the Preliminary 
Determination.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), Commerce will instruct CBP to require a cash deposit for 
such entries of merchandise equal to the estimated weighted-average 
dumping margin or the estimated all-others rate, as follows: (1) The 
cash deposit rate for the respondents listed above will be equal to the 
respondent-specific estimated weighted-average dumping margin 
determined in this final determination; (2) if the exporter is not a 
respondent identified above but the producer is, then the cash deposit 
rate will be equal to the respondent-specific estimated weighted-
average dumping margin established for that producer of the subject 
merchandise; and (3) the cash deposit rate for all other producers and 
exporters will be equal to the all-others estimated weighted-average 
dumping margin.
    Commerce normally adjusts cash deposits for estimated antidumping 
duties by the amount of export subsidies countervailed in a companion 
countervailing duty (CVD) proceeding, when CVD provisional measures are 
in effect. Accordingly, where Commerce made an affirmative 
determination for countervailable export subsidies, Commerce has offset 
the estimated weighted- average dumping margin by the appropriate CVD 
rate. Any such adjusted cash deposit rate may be found in the ``Final 
Determination Margins'' section, above.

ITC Notification

    In accordance with section 735(d) of the Act, we will notify the 
U.S. International Trade Commission (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 cold-drawn 
mechanical tubing from India 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, Commerce will issue an antidumping duty order 
directing CBP to assess, upon further instruction by Commerce, 
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, as discussed above in the 
``Continuation of Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice serves as a reminder to parties subject to 
administrative protective order (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 return/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 violation subject to 
sanction.

Notification to Interested Parties

    We are issuing and publishing this determination and notice in 
accordance with sections 735(d) and 777(i) of the Act and 19 CFR 
352.210(c).

    Dated: April 9, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation covers cold-drawn mechanical 
tubing of carbon and alloy steel (cold-drawn mechanical tubing) of 
circular cross-section, 304.8 mm or more in length, in actual 
outside diameters less than 331mm, and regardless of wall thickness, 
surface finish, end finish or industry specification. The subject 
cold-drawn mechanical tubing is a tubular product with a circular 
cross-sectional shape that has been cold-drawn or otherwise cold-
finished after the initial tube formation in a manner that involves 
a change in the diameter or wall thickness of the tubing, or both. 
The subject

[[Page 16298]]

cold-drawn mechanical tubing may be produced from either welded 
(e.g., electric resistance welded, continuous welded, etc.) or 
seamless (e.g., pierced, pilgered or extruded, etc.) carbon or alloy 
steel tubular products. It may also be heat treated after cold 
working. Such heat treatments may include, but are not limited to, 
annealing, normalizing, quenching and tempering, stress relieving or 
finish annealing. Typical cold-drawing methods for subject 
merchandise include, but are not limited to, drawing over mandrel, 
rod drawing, plug drawing, sink drawing and similar processes that 
involve reducing the outside diameter of the tubing with a die or 
similar device, whether or not controlling the inside diameter of 
the tubing with an internal support device such as a mandrel, rod, 
plug or similar device. Other cold-finishing operations that may be 
used to produce subject merchandise include cold-rolling and cold-
sizing the tubing.
    Subject cold-drawn mechanical tubing is typically certified to 
meet industry specifications for cold-drawn tubing including but not 
limited to:
    (1) American Society for Testing and Materials (ASTM) or 
American Society of Mechanical Engineers (ASME) specifications ASTM 
A-512, ASTM A-513 Type 3 (ASME SA513 Type 3), ASTM A-513 Type 4 
(ASME SA513 Type 4), ASTM A-513 Type 5 (ASME SA513 Type 5), ASTM A-
513 Type 6 (ASME SA513 Type 6), ASTM A-519 (cold-finished);
    (2) SAE International (Society of Automotive Engineers) 
specifications SAE J524, SAE J525, SAE J2833, SAE J2614, SAE J2467, 
SAE J2435, SAE J2613;
    (3) Aerospace Material Specification (AMS) AMS T-6736 (AMS 
6736), AMS 6371, AMS 5050, AMS 5075, AMS 5062, AMS 6360, AMS 6361, 
AMS 6362, AMS 6371, AMS 6372, AMS 6374, AMS 6381, AMS 6415;
    (4) United States Military Standards (MIL) MIL-T-5066 and MIL-T-
6736;
    (5) foreign standards equivalent to one of the previously listed 
ASTM, ASME, SAE, AMS or MIL specifications including but not limited 
to:
    (a) German Institute for Standardization (DIN) specifications 
DIN 2391-2, DIN 2393-2, DIN 2394-2);
    (b) European Standards (EN) EN 10305-1, EN 10305-2, EN 10305-3, 
EN 10305-4, EN 10305-6 and European national variations on those 
standards (e.g., British Standard (BS EN), Irish Standard (IS EN) 
and German Standard (DIN EN) variations, etc.);
    (c) Japanese Industrial Standard (JIS) JIS G 3441 and JIS G 
3445; and
    (6) proprietary standards that are based on one of the above-
listed standards.
    The subject cold-drawn mechanical tubing may also be dual or 
multiple certified to more than one standard. Pipe that is multiple 
certified as cold-drawn mechanical tubing and to other 
specifications not covered by this scope, is also covered by the 
scope of this investigation when it meets the physical description 
set forth above.
    Steel products included in the scope of this investigation are 
products in which: (1) iron predominates, by weight, over each of 
the other contained elements; and (2) the carbon content is 2 
percent or less by weight.
    For purposes of this scope, the place of cold-drawing determines 
the country of origin of the subject merchandise. Subject 
merchandise that is subject to minor working in a third country that 
occurs after drawing in one of the subject countries including, but 
not limited to, heat treatment, cutting to length, straightening, 
nondestruction testing, deburring or chamfering, remains within the 
scope of this investigation.
    All products that meet the written physical description are 
within the scope of this investigation unless specifically excluded 
or covered by the scope of an existing order. Merchandise that meets 
the physical description of cold-drawn mechanical tubing above is 
within the scope of the investigation even if it is also dual or 
multiple certified to an otherwise excluded specification listed 
below. The following products are outside of, and/or specifically 
excluded from, the scope of this investigation:
    (1) cold-drawn stainless steel tubing, containing 10.5 percent 
or more of chromium by weight and not more than 1.2 percent of 
carbon by weight;
    (2) products certified to one or more of the ASTM, ASME or 
American Petroleum Institute (API) specifications listed below:
     ASTM A-53;
     ASTM A-106;
     ASTM A-179 (ASME SA 179);
     ASTM A-192 (ASME SA 192);
     ASTM A-209 (ASME SA 209);
     ASTM A-210 (ASME SA 210);
     ASTM A-213 (ASME SA 213);
     ASTM A-334 (ASME SA 334);
     ASTM A-423 (ASME SA 423);
     ASTM A-498;
     ASTM A-496 (ASME SA 496);
     ASTM A-199;
     ASTM A-500;
     ASTM A-556;
     ASTM A-565;
     API 5L; and
     API 5CT
    except that any cold-drawn tubing product certified to one of 
the above excluded specifications will not be excluded from the 
scope if it is also dual- or multiple-certified to any other 
specification that otherwise would fall within the scope of this 
investigation.
    The products subject to the investigation are currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under item numbers: 7304.31.3000, 7304.31.6050, 
7304.51.1000, 7304.51.5005, 7304.51.5060, 7306.30.5015, 
7306.30.5020, 7306.50.5030. Subject merchandise may also enter under 
numbers 7306.30.1000 and 7306.50.1000. The HTSUS subheadings above 
are provided for convenience and customs purposes only. The written 
description of the scope of the 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. Changes Since the Preliminary Determination
V. Use of Adverse Facts Available
VI. Discussion of the Issues
    Comment 1: Treatment of Goodluck's Sales with Misreported 
Product Characteristics
    Comment 2: Application of Total AFA to Goodluck
    Comment 3: TPI Scrap Adjustment
    Comment 4: Whether Commerce Should Accept TPI's Minor 
Corrections Presented at the TPI's Sales Verification
    Comment 5: Adjustments to G&A and Financial Expenses
    Comment 6: TPI's Grade Reporting
    Comment 7: TPI Home Market Billing Adjustments
    Comment 8: TPI's Freight Reporting
    Comment 9: TPI's Date of Sale
VII. Conclusion

[FR Doc. 2018-07851 Filed 4-13-18; 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: April 16, 2018.
ContactSusan Pulongbarit or Omar Qureshi, AD/ CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-4031 or (202) 482-5307, respectively.
FR Citation83 FR 16296 

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