83 FR 16322 - Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel From the People's Republic of China: Affirmative Final Determination of Sales at Less-Than-Fair Value and Final Determination of Critical Circumstances, in Part
DEPARTMENT OF COMMERCE
International Trade Administration Federal Register Volume 83, Issue 73 (April 16, 2018)
International Trade Administration
Federal Register Volume 83, Issue 73 (April 16, 2018)
| Page Range | 16322-16326 | |
| FR Document | 2018-07849 |
[Federal Register Volume 83, Number 73 (Monday, April 16, 2018)] [Notices] [Pages 16322-16326] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-07849] ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE International Trade Administration [A-570-058] Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel From the People's Republic of China: Affirmative Final Determination of Sales at Less-Than-Fair Value and Final Determination of Critical Circumstances, in Part 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 the People's Republic of China (China) are being, or are likely to be, sold in the United States at less than fair value (LTFV) during the period of investigation (POI) of October 1, 2016, through March 31, 2017. DATES: Effective April 16, 2018. FOR FURTHER INFORMATION CONTACT: Paul Stolz or Keith Haynes, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-4474 or (202) 482-5139, respectively. Background On November 22, 2017, Commerce published its Preliminary Determination.\1\ On January 3, 2018, Commerce published an Amended Preliminary Determination.\2\ In the Preliminary Determination, Commerce extended the due date of the final LTFV determination until April 6, 2018.\3\ Additionally, in the Preliminary Determination, Commerce invited comments from interested parties.\4\ For a complete description of the events that followed the Preliminary Determination, including a list of the parties that filed case and rebuttal briefs and a summary of the arguments received, see the Issues and Decision Memorandum.\5\ On January 23, 2018, Commerce exercised its discretion to toll deadlines affected by the closure of the Federal Government from January 20 through 22, 2018.\6\ The revised deadline for the final determination of this investigation is now April 9, 2018.\7\ --------------------------------------------------------------------------- \1\ See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from the People's Republic of China: Preliminary Affirmative Determination of Sales at Less-Than-Fair Value and Preliminary Affirmative Determination of Critical Circumstances, in Part, and Postponement of Final Determination, 82 FR 55574 (November 22, 2017) (Preliminary Determination). \2\ See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from the People's Republic of China: Amended Preliminary Affirmative Determination of Sales at Less-Than-Fair Value, 83 FR 352 (January 3, 2018) (Amended Preliminary Determination). \3\ See Preliminary Determination at 55576. \4\ Id. at 55576-77. \5\ See memorandum, ``Issues and Decision Memorandum for the Final Determination of the Antidumping Duty Investigation of Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from the People's Republic of China,'' dated concurrently with this notice (Issues and Decision Memorandum). \6\ See memorandum, ``Deadlines Affected by the Shutdown of the Federal Government,'' dated January 23, 2018. (Extending deadlines in this segment of the proceeding by 3 days). \7\ Id. --------------------------------------------------------------------------- Period of Investigation The period of investigation is October 1, 2016, through March 31, 2017. This period corresponds to the two most recent fiscal quarters prior to the month of the filing of the petition, which was April 2017.\8\ --------------------------------------------------------------------------- \8\ See 19 CFR 351.204(b)(1). --------------------------------------------------------------------------- Scope Comments We invited parties to comment on Commerce's Preliminary Scope Memorandum.\9\ Commerce has reviewed the briefs submitted by interested parties, considered the arguments therein, and has made changes to the scope of the investigation. For further discussion, see Commerce's Final Scope Decision Memorandum.\10\ --------------------------------------------------------------------------- \9\ 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 Memorandum). \10\ 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 Final Determinations,'' dated December 4, 2017. --------------------------------------------------------------------------- Scope of the Investigation The product covered by this investigation is mechanical tubing from China. For a complete description of the scope of this investigation, see Appendix I. Analysis of Comments Received All issues raised in the case and rebuttal briefs filed by interested parties are addressed in the Issues and Decision Memorandum, which is hereby adopted by this notice. A list of the issues that parties raised, and to which we responded in the Issues and Decision Memorandum, follows at Appendix II to this notice. 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 is available to all parties in the Central Records Unit, Room B8024 of the main Commerce building. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly on the internet at http://enforcement.trade.gov/frn/. The paper copy and electronic copy of the Issues and Decision Memorandum are identical in content. Verification As provided in section 782(i) of the Tariff Act of 1930, as amended (the Act), in January 2018, Commerce conducted verification of the information submitted by Zhangjiagang Huacheng Import & Export Co., Ltd. (Huacheng) in its questionnaire responses.\11\ We issued our verification report on February 28, 2018.\12\ Commerce used standard [[Page 16323]] verification procedures, including examination of relevant accounting and production records and original source documents provided by the respondent.\13\ Due to circumstances discussed at length in the Issues and Decision Memorandum, Commerce declined to verify the questionnaire responses of the other mandatory respondent, Hongyi Steel Pipe Co., Ltd. (Hongyi) \14\ --------------------------------------------------------------------------- \11\ See memorandum, ``Verification of the Questionnaire Responses of Zhangjiagang Huacheng Import & Export Co. Ltd., in the Antidumping Duty Investigation of Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from the People's Republic of China,'' dated March (Huacheng Verification Report). \12\ Id. \13\ Id. \14\ See Issues and Decision Memorandum at Comment 1. --------------------------------------------------------------------------- Changes Since the Preliminary Determination Based on our analysis of the comments received and our findings at verification, we have made certain changes to the calculation of the antidumping duty margin applicable to Huacheng. For a discussion of these changes, see the ``Changes Since the Preliminary Determination'' section of the Issues and Decision Memorandum.\15\ --------------------------------------------------------------------------- \15\ Id. at Comment 7 for a discussion of Commerce's determination to apply certain changes to Huacheng's weighted- average margin calculation. --------------------------------------------------------------------------- Hongyi's Separate Rate Status Sections 776(a)(1) and (2) of the Act provide that if certain necessary information is not on the record or an interested party has withheld information that was requested or provided information that cannot be verified, Commerce may apply ``facts otherwise available.'' For this final determination, Commerce has determined that Hongyi did not act to the best of its ability in providing Commerce with requested information that could be verified. Thus, as Commerce is unable to rely on Hongyi's separate rate information, we are treating Hongyi as part of the China-wide entity for purposes of this final determination. For Commerce's analysis, see the Issues and Decision Memorandum at Comment 1. Final Affirmative Determination of Critical Circumstances, in Part In accordance with section 733(e)(1) of the Act and 19 CFR 351.206, we preliminarily found that critical circumstances exist with respect to imports of cold-drawn mechanical tubing from the China-wide Entity, and the non-selected separate rate respondents, but do not exist with respect to Huacheng.\16\ Commerce received no comments regarding this issue after the Preliminary Determination regarding Huacheng, and all other Chinese exporters. However, Commerce did receive comments from Hongyi opposing the application of critical circumstances to it for the final determination.\17\ For Commerce's analysis, see the Issues and Decision Memorandum at Comments 1 and 2. Therefore, for the final determination, we continue to find that, in accordance with section 735(a)(3) of the Act, and 19 CFR 351.206, critical circumstances exist with respect to subject merchandise produced or exported by the China- wide Entity, and the non-selected separate rate respondents, but do not exist with respect to Huacheng. --------------------------------------------------------------------------- \16\ See Preliminary Decision Memorandum, at 14-16. \17\ See Issues and Decision Memorandum at Comment 4. --------------------------------------------------------------------------- China-Wide Entity For the reasons explained in the Preliminary Determination, we are continuing to find that the use of adverse facts available (AFA), pursuant to sections 776(a) and (b) of the Act, is appropriate and are applying a rate based entirely on AFA to the China-wide entity. Commerce did not receive timely responses to its quantity and value (Q&V) questionnaire, separate rate applications, or separate rate supplemental questionnaires from certain exporters and/or producers of subject merchandise that were named in the petition and to which Commerce issued Q&V questionnaires.\18\ As these non-responsive China companies did not demonstrate that they are eligible for separate rate status, Commerce continues to consider them to be a part of the China- wide entity. Consequently, we continue to find that the China-wide entity withheld requested information, significantly impeded the proceeding, and failed to cooperate to the best of their abilities, and thus we are continuing to base the China-wide entity's rate on AFA. --------------------------------------------------------------------------- \18\ See Preliminary Decision Memorandum at Separate Rate Section. --------------------------------------------------------------------------- China-Wide Rate In selecting the AFA rate for the China-wide entity, Commerce's practice is to select a rate that is sufficiently adverse to ensure that the uncooperative party does not obtain a more favorable result by failing to cooperate than if it had fully cooperated.\19\ Specifically, it is Commerce's practice to select, as an AFA rate, the higher of: (a) The highest dumping margin alleged in the petition; or, (b) the highest calculated dumping margin of any respondent in the investigation.\20\ As AFA, Commerce has assigned to the China-wide entity the rate of 186.89 percent, which is the highest dumping margin alleged in the petition.\21\ --------------------------------------------------------------------------- \19\ See, e.g., Notice of Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination: Purified Carboxymethyl cellulose from Finland, 69 FR 77216 (December 27, 2004), unchanged in Notice of Final Determination of Sales at Less Than Fair Value: Purified Carboxymethyl cellulose from Finland, 70 FR 28279 (May 17, 2005). \20\ See, e.g., Certain Stilbenic Optical Brightening Agents from the People's Republic of China: Final Determination of Sales at Less Than Fair Value, 77 FR 17436, 17438 (March 26, 2012); Final Determination of Sales at Less Than Fair Value: Certain Cold-Rolled Flat-Rolled Carbon Quality Steel Products from the People's Republic of China, 65 FR 34660 (May 31, 2000), and accompanying Issues and Decision Memorandum. \21\ See Preliminary Decision Memorandum at Adverse Facts Available Section. --------------------------------------------------------------------------- Separate Rate Under section 735(c)(5)(A) of the Act, the all-others rate is normally an amount equal to the weighted average of the estimated weighted average dumping margins established for exporters and producers individually investigated, excluding any zero and de minimis margins, and any margins determined entirely based on facts available. Accordingly, when only one weighted-average dumping margin for an individually investigated respondent is above de minimis and not based entirely on facts available, the separate rate will be equal to that single, above de minimis rate. In this final determination, Commerce has calculated a rate for Huacheng that is not zero, de minimis, or based entirely on facts available. With respect to the other mandatory respondent, Hongyi, Commerce has found Hongyi ineligible for separate status. Therefore, Commerce has assigned to the companies that it has not individually examined but have demonstrated their eligibility for a separate rate a margin of 44.92 percent, which is the rate calculated for Huacheng. Combination Rates In the Initiation Notice, Commerce stated that it would calculate combination rates for the respondents that are eligible for a separate rate in this investigation.\22\ Accordingly, we have assigned combination rates to Huacheng, along with all other companies receiving a separate rate.\23\ --------------------------------------------------------------------------- \22\ See 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: Initiation of Less-Than-Fair-Value Investigations, 82 FR 22491 (May 16, 2017) (Initiation Notice). \23\ See Enforcement and Compliance Policy Bulletin No. 05.1 ``Separate-Rates Practice and Application of Combination Rates in Antidumping Investigations involving Non-Market Economy Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf. --------------------------------------------------------------------------- [[Page 16324]] Final Determination of the Investigation We determine that the following weighted-average dumping margins exist for the period October 1, 2016, through March 31, 2017: ---------------------------------------------------------------------------------------------------------------- Cash deposit Weighted adjusted for Producer Exporter average margin subsidy offset (percent) (percent) ---------------------------------------------------------------------------------------------------------------- Jiangsu Huacheng Industry Pipe Making Zhangjiagang Huacheng Import & 44.92 44.90 Corporation, and Zhangjiagang Salem Fine Export Co., Ltd.. Tubing Co., Ltd.. Anji Pengda Steel Pipe Co., Ltd............... Anji Pengda Steel Pipe Co., Ltd. 44.92 44.90 Changshu Fushilai Steel Pipe Co., Ltd......... Changshu Fushilai Steel Pipe 44.92 44.90 Co., Ltd.. Changshu Special Shaped Steel Tube Co., Ltd... Changshu Special Shaped Steel 44.92 44.90 Tube Co., Ltd.. Jiangsu Liwan Precision Tube Manufacturing Suzhou Foster International Co., 44.92 44.90 Co., Ltd.. Ltd.. Zhangjiagang Precision Tube Manufacturing Co., Suzhou Foster International Co., 44.92 44.90 Ltd. (Zhangjiangang Tube). Ltd.. Wuxi Dajin High-Precision Cold-Drawn Steel Wuxi Huijin International Trade 44.92 44.90 Tube Co., Ltd.. Co., Ltd.. Zhangjiagang Shengdingyuan Pipe-Making Co., Zhangjiagang Shengdingyuan Pipe- 44.92 44.90 Ltd.. Making Co., Ltd.. Zhejiang Minghe Steel Pipe Co., Ltd........... Zhejiang Minghe Steel Pipe Co., 44.92 44.90 Ltd.. Zhejiang Dingxin Steel Tube Manufacturing Co., Zhejiang Dingxin Steel Tube 44.92 44.90 Ltd. Manufacturing Co., Ltd. China-Wide Entity \24\........................ ................................ 186.89 186.89 ---------------------------------------------------------------------------------------------------------------- Disclosure --------------------------------------------------------------------------- \24\ Commerce notes that Hongyi is a part of the China-wide entity. --------------------------------------------------------------------------- We intend to disclose to parties the calculations performed in this proceeding within five days of any public announcement of this notice in accordance with 19 CFR 351.224 (b). Continuation of Suspension of Liquidation In accordance with section 735(c)(1)(B) of the Act, we will instruct U.S. Customs and Border Protection (CBP) to continue to suspend liquidation of all entries of cold-drawn mechanical tubing from the China, as described in the ``Scope of the Investigation'' section, entered, or withdrawn from warehouse, for consumption on or after November 22, 2017, the date of publication of the Preliminary Determination notice in the Federal Register. Pursuant to section 735(c)(1)(B)(ii) of the Act, Commerce will instruct CBP to require a cash deposit \25\ equal to the weighted- average amount by which NV exceeds U.S. price as follows: (1) The cash deposit rate for the exporter/producer combination listed in the table above will be the rate identified for that combination in the table; (2) for all combinations of exporters/producers of merchandise under consideration that have not received their own separate rate above, the cash-deposit rate will be the cash deposit rate established for the China-wide entity; and (3) for all non-China exporters of the merchandise under consideration which have not received their own separate rate above, the cash-deposit rate will be the cash deposit rate applicable to the China exporter/producer combination that supplied that non-China exporter. These suspension of liquidation instructions will remain in effect until further notice. --------------------------------------------------------------------------- \25\ See Modification of Regulations Regarding the Practice of Accepting Bonds During the Provisional Measures Period in Antidumping and Countervailing Duty Investigations, 76 FR 61042 (October 3, 2011). --------------------------------------------------------------------------- We normally adjust antidumping duty cash deposit rates by the amount of export subsidies, where appropriate. In the companion CVD investigation, with respect to Huacheng, a mandatory respondent in this investigation not individually examined in the CVD investigation, and the separate-rate companies, we find that an export subsidy warrants an adjustment of 0.02 percent to the cash deposit rate because this is the export subsidy rate included in the countervailing duty ``all others'' rate to which the separate-rate companies are subject. As part of our determination in this final determination to apply adverse facts available to the China-wide entity, Commerce has not adjusted the China-wide entity's AD cash deposit rate by the lowest export subsidy rate determined for any party in the companion CVD proceeding, because the lowest export subsidy rate determined in the companion CVD proceeding is 0.00 percent.\26\ \27\ --------------------------------------------------------------------------- \26\ See, e.g., Certain Passenger Vehicle and Light Truck Tires from the People's Republic of China: Preliminary Determination of Sales at Less Than Fair Value; Preliminary Affirmative Determination of Critical Circumstances; In Part and Postponement of Final Determination, 80 FR 4250 (January 27, 2015), and accompanying Issues and Decision Memorandum at 35. \27\ See Countervailing Duty Investigation of Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from the People's Republic of China: Final Affirmative Determination, and Final Affirmative Determination of Critical Circumstances, in Part, 82 FR 58175 (December 11, 2017) (Cold-Drawn Mechanical CVD Final) and accompanying Issues and Decision Memorandum. --------------------------------------------------------------------------- Pursuant to section 777A(f) of the Act, we normally adjust cash deposit rates for estimated domestic subsidy pass-through, where appropriate. However, in this case there is no basis to grant a domestic subsidy pass-through adjustment.\28\ --------------------------------------------------------------------------- \28\ See Preliminary Decision Memorandum. --------------------------------------------------------------------------- International Trade Commission Notification In accordance with section 735(d) of the Act, we notified the International Trade Commission (ITC) of the final affirmative determination of sales at LTFV. As Commerce's final determination is affirmative, in accordance with section 735(b)(2) of the Act, the ITC will determine, within 45 days, 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 for sale from the [[Page 16325]] China, or sales (or the likelihood of sales) for importation, of cold- drawn mechanical tubing from the China. If the ITC determines that such injury does not exist, this proceeding will be terminated and all securities posted will be refunded or canceled. If the ITC determines that such injury does exist, China 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. Notification Regarding Administrative Protective Orders This notice also serves as a reminder to the parties subject to administrative protective order (APO) of their responsibility concerning the disposition of propriety information disclosed under APO in accordance with 19 CFR 351.305. Timely written notification of return or destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and terms of an APO is a sanctionable violation. Return or Destruction of Proprietary Information In the event the ITC issues a final negative injury determination, this notice serves as the only reminder to parties subject to an 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 the return or destruction of APO materials, or conversion to judicial protective order, is hereby requested. Failure to comply with the regulations and 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 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 10305-4, 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, nondestructive 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. [[Page 16326]] Appendix II List of Topics Discussed in the Issues and Decision Memorandum 1. Summary 2. Background 3. Scope of the Order 4. Discussion of the Issues Comment 1: Cancellation of Verification and Application of AFA Based on Unreliable Accounting Records for Hongyi Comment 2: Hongyi's Reporting of Steel Grade Comment 3: Rejection of Factual Information in Hongyi's Submissions Comment 4: Critical Circumstances Comment 5: Surrogate Country Selection Comment 6: Romanian Financial Statements Used in the Calculation of Surrogate Financial Ratios Comment 7: Surrogate Used to Value Huacheng's Seamless Tube Inputs Comment 8: Whether to Adjust U.S. Price for Market Economy Ocean Freight Expense Comment 9: Other Issues 5. Conclusion [FR Doc. 2018-07849 Filed 4-13-18; 8:45 am] BILLING CODE 3510-DS-P
![16322 Federal Register / Vol. 83, No. 73 / Monday, April 16, 2018 / Notices
Tariff Schedule of the United States (HTSUS) Background reviewed the briefs submitted by
under item numbers: 7304.31.3000, interested parties, considered the
7304.31.6050, 7304.51.1000, 7304.51.5005, On November 22, 2017, Commerce
arguments therein, and has made
7304.51.5060, 7306.30.5015, 7306.30.5020, published its Preliminary
changes to the scope of the
7306.50.5030. Subject merchandise may also Determination.1 On January 3, 2018,
investigation. For further discussion, see
enter under numbers 7306.30.1000 and Commerce published an Amended
7306.50.1000. The HTSUS subheadings Commerce’s Final Scope Decision
Preliminary Determination.2 In the
above are provided for convenience and Memorandum.10
Preliminary Determination, Commerce
customs purposes only. The written extended the due date of the final LTFV Scope of the Investigation
description of the scope of the investigation
determination until April 6, 2018.3 The product covered by this
is dispositive.
Additionally, in the Preliminary investigation is mechanical tubing from
Appendix II Determination, Commerce invited China. For a complete description of the
comments from interested parties.4 For scope of this investigation, see
List of Topics Discussed in the Issues and a complete description of the events that Appendix I.
Decisions Memorandum followed the Preliminary Determination,
including a list of the parties that filed Analysis of Comments Received
I. Summary
II. Background case and rebuttal briefs and a summary All issues raised in the case and
III. Scope of the Investigation of the arguments received, see the Issues rebuttal briefs filed by interested parties
IV. Changes Since the Preliminary and Decision Memorandum.5 On are addressed in the Issues and Decision
Determination January 23, 2018, Commerce exercised Memorandum, which is hereby adopted
V. Use of Total Adverse Facts Available its discretion to toll deadlines affected by this notice. A list of the issues that
VI. Final Affirmative Determination of by the closure of the Federal parties raised, and to which we
Critical Circumstances
Government from January 20 through responded in the Issues and Decision
VII. Discussion of the Issues
Issue 1: Findings at Yulchon’s Verification 22, 2018.6 The revised deadline for the Memorandum, follows at Appendix II to
Issue 2: Application of Total AFA to final determination of this investigation this notice. The Issues and Decision
Yulchon is now April 9, 2018.7 Memorandum is a public document,
VIII. Recommendation and is on file electronically via
Period of Investigation Enforcement and Compliance’s
[FR Doc. 2018–07854 Filed 4–13–18; 8:45 am] The period of investigation is October Antidumping and Countervailing Duty
BILLING CODE 3510–DS–P 1, 2016, through March 31, 2017. This Centralized Electronic Service System
period corresponds to the two most (ACCESS). ACCESS is available to
recent fiscal quarters prior to the month registered users at http://
DEPARTMENT OF COMMERCE of the filing of the petition, which was access.trade.gov, and is available to all
April 2017.8 parties in the Central Records Unit,
International Trade Administration
Room B8024 of the main Commerce
Scope Comments
building. In addition, a complete
[A–570–058] We invited parties to comment on version of the Issues and Decision
Commerce’s Preliminary Scope Memorandum can be accessed directly
Certain Cold-Drawn Mechanical Tubing Memorandum.9 Commerce has on the internet at http://
of Carbon and Alloy Steel From the
enforcement.trade.gov/frn/. The paper
People’s Republic of China: 1 See Certain Cold-Drawn Mechanical Tubing of
copy and electronic copy of the Issues
Affirmative Final Determination of Carbon and Alloy Steel from the People’s Republic
and Decision Memorandum are
Sales at Less-Than-Fair Value and of China: Preliminary Affirmative Determination of
Sales at Less-Than-Fair Value and Preliminary identical in content.
Final Determination of Critical
Affirmative Determination of Critical
Circumstances, in Part Circumstances, in Part, and Postponement of Final
Verification
Determination, 82 FR 55574 (November 22, 2017) As provided in section 782(i) of the
AGENCY: Enforcement and Compliance, (Preliminary Determination).
International Trade Administration, 2 See Certain Cold-Drawn Mechanical Tubing of
Tariff Act of 1930, as amended (the Act),
Department of Commerce. Carbon and Alloy Steel from the People’s Republic in January 2018, Commerce conducted
of China: Amended Preliminary Affirmative verification of the information
SUMMARY: The Department of Commerce
Determination of Sales at Less-Than-Fair Value, 83 submitted by Zhangjiagang Huacheng
(Commerce) determines that imports of FR 352 (January 3, 2018) (Amended Preliminary Import & Export Co., Ltd. (Huacheng) in
certain cold-drawn mechanical tubing of Determination).
its questionnaire responses.11 We issued
carbon and alloy steel (cold-drawn 3 See Preliminary Determination at 55576.
our verification report on February 28,
mechanical tubing) from the People’s 4 Id. at 55576–77.
5 See memorandum, ‘‘Issues and Decision 2018.12 Commerce used standard
Republic of China (China) are being, or
Memorandum for the Final Determination of the
are likely to be, sold in the United States Antidumping Duty Investigation of Certain Cold- dated November 15, 2017 (Preliminary Scope
at less than fair value (LTFV) during the Drawn Mechanical Tubing of Carbon and Alloy Memorandum).
period of investigation (POI) of October Steel from the People’s Republic of China,’’ dated 10 See memorandum, ‘‘Certain Cold-Drawn
1, 2016, through March 31, 2017. concurrently with this notice (Issues and Decision Mechanical Tubing of Carbon and Alloy Steel from
Memorandum). the Federal Republic of Germany, India, Italy, the
DATES: Effective April 16, 2018. 6 See memorandum, ‘‘Deadlines Affected by the
Republic of Korea, the People’s Republic of China,
FOR FURTHER INFORMATION CONTACT: Paul Shutdown of the Federal Government,’’ dated and Switzerland: Scope Comments Decision
January 23, 2018. (Extending deadlines in this Memorandum for the Final Determinations,’’ dated
Stolz or Keith Haynes, AD/CVD
srobinson on DSK3G9T082PROD with NOTICES
segment of the proceeding by 3 days). December 4, 2017.
Operations, Office III, Enforcement and 7 Id. 11 See memorandum, ‘‘Verification of the
Compliance, International Trade 8 See 19 CFR 351.204(b)(1). Questionnaire Responses of Zhangjiagang Huacheng
Administration, U.S. Department of 9 See memorandum, ‘‘Certain Cold-Drawn Import & Export Co. Ltd., in the Antidumping Duty
Commerce, 1401 Constitution Avenue Mechanical Tubing of Carbon and Alloy Steel from Investigation of Certain Cold-Drawn Mechanical
the Federal Republic of Germany, India, Italy, the Tubing of Carbon and Alloy Steel from the People’s
NW, Washington, DC 20230; telephone: Republic of Korea, the People’s Republic of China, Republic of China,’’ dated March (Huacheng
(202) 482–4474 or (202) 482–5139, and Switzerland: Scope Comments Decision Verification Report).
respectively. Memorandum for the Preliminary Determinations,’’ 12 Id.
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![16326 Federal Register / Vol. 83, No. 73 / Monday, April 16, 2018 / Notices
Appendix II Background and (b) of the Act, Commerce continues
List of Topics Discussed in the Issues and On November 22, 2017, Commerce to rely upon facts otherwise available,
Decision Memorandum published the Preliminary with adverse inferences (AFA) in
Determination of sales at LTFV of cold- determining the estimated weighted-
1. Summary
2. Background drawn mechanical tubing from average dumping margins for Mubea
3. Scope of the Order Germany.1 Commerce invited comments Fahrwerksfedern GmbH (Mubea) and
4. Discussion of the Issues from interested parties on the Salzgitter Mannesmann Line Pipe
Comment 1: Cancellation of Verification Preliminary Determination.2 The GmbH (Salzgitter). Also, for certain
and Application of AFA Based on petitioners,3 Benteler Steel/Tube GmbH Benteler sales transactions, we relied
Unreliable Accounting Records for (Benteler), Salzgitter Mannesmann Line upon AFA and partial facts available,
Hongyi with adverse inferences, pursuant to
Pipe GmbH (Salzgitter), filed case 4 and
Comment 2: Hongyi’s Reporting of Steel section 776(a) and (b) of the Act. For a
Grade rebuttal briefs.5 Commerce exercised its
discretion to toll deadlines affected by full description of the methodology
Comment 3: Rejection of Factual
Information in Hongyi’s Submissions the closure of the Federal Government underlying the final determination, see
Comment 4: Critical Circumstances from January 20 through 22, 2018. The the Issues and Decision Memorandum.
Comment 5: Surrogate Country Selection revised deadline for the final A complete summary of the events
Comment 6: Romanian Financial determination of this investigation is that occurred since Commerce
Statements Used in the Calculation of now April 9, 2018.6 published the Preliminary
Surrogate Financial Ratios The participating mandatory Determination, as well as a full
Comment 7: Surrogate Used to Value respondent in this investigation is discussion of the issues raised by parties
Huacheng’s Seamless Tube Inputs Benteler. In addition, while two other for this final determination, may be
Comment 8: Whether to Adjust U.S. Price found in the Issues and Decision
respondents were selected as mandatory
for Market Economy Ocean Freight
respondents, pursuant to sections 776(a) Memorandum.7
Expense
Comment 9: Other Issues
The Issues and Decision
5. Conclusion
1 See Certain Cold-Drawn Mechanical Tubing of Memorandum is a public document and
Carbon and Alloy Steel from the Federal Republic is available electronically via
[FR Doc. 2018–07849 Filed 4–13–18; 8:45 am] of Germany: Preliminary Affirmative Determination Enforcement and Compliance’s
BILLING CODE 3510–DS–P of Sales at Less Than Fair Value and Postponement
of Final Determination, 82 FR 55558 (November 22, Antidumping and Countervailing Duty
2017) (Preliminary Determination), and Centralized Electronic Service System
accompanying Preliminary Issues and Decision (ACCESS). ACCESS is available to
DEPARTMENT OF COMMERCE Memorandum (Preliminary Decision
Memorandum).
registered users at https://
International Trade Administration 2 See Preliminary Determination, 83 FR at 55559. access.trade.gov and to all parties in the
3 ArcelorMittal Tubular Products, Michigan Central Records Unit, Room B–8024 of
Seamless Tube, LLC, PTC Alliance Corp., Plymouth Commerce’s main building. In addition,
[A–428–845] Tube Co. USA, Webco Industries, Inc., and a complete version of the Issues and
Zekelman Industries, Inc. (collectively, the
Certain Cold-Drawn Mechanical Tubing petitioners).
Decision Memorandum can be accessed
of Carbon and Alloy Steel From the 4 See the petitioners’ Case Brief, ‘‘Petitioners’ at http://enforcement.trade.gov/frn/.
Federal Republic of Germany: Final Case Brief,’’ dated March 9, 2018 (Petitioners’ Case The signed Issues and Decision
Affirmative Determination of Sales at
Brief); Salzgitter’s Case Brief, ‘‘Antidumping Duty Memorandum and electronic version are
Investigation of Cold-Drawn Mechanical Tubing of
Less Than Fair Value Carbon and Alloy Steel from Federal Republic of
identical in content.
Germany: Case Brief,’’ dated March 9, 2018 Scope of the Investigation
AGENCY: Enforcement and Compliance, (Salzgitter’s Case Brief); and Bentler’s Case Brief,
International Trade Administration, ‘‘Antidumping Duty Investigation of Certain Cold- The product covered by this
Drawn Mechanical Tubing of Carbon and Alloy investigation is cold-drawn mechanical
Department of Commerce. Steel from Germany: Resubmission of Case Brief,’’
dated March 27, 2018 (on March 26, 2018, tubing from Germany. In the
SUMMARY: The Department of Commerce
Commece rejected and removed Benteler’s timely Preliminary Determination, we set a
(Commerce) determines that certain filed case brief, submitted on March 9, 2018, from separate briefing schedule on scope
cold-drawn mechanical tubing of carbon the record and Benteler refiled its case brief with issues for interested parties.8 Certain
and alloy steel (cold-drawn mechanical certain information redacted on March 27, 2018).
interested parties commented on the
tubing) from the Federal Republic of 5 See the petitioners’ Rebuttal Brief, ‘‘Petitioners’
Rebuttal Brief on Salzgitter,’’ dated March 14, 2018; scope of the investigation as it appeared
Germany (Germany) is being, or is likely the petitioners’ Rebuttal Brief, ‘‘Petitioners’ Rebuttal in the Preliminary Scope Decision
to be, sold in the United States at less Brief on Benteler Corrected,’’ dated March 27, 2018 Memorandum.9 On December 4, 2017,
than fair value (LTFV). The final (on March 26, 2018, Commece rejected and
estimated weighted-average dumping removed the petitioners’ timely filed rebuttal brief
7 See Memorandum, ‘‘Issues and Decision
on Benteler, submitted on March 14, 2018, from the
margins of sales at LTFV are listed record and the petitioner refiled its rebuttal brief on Memorandum for the Final Determination in the
below in the section entitled ‘‘Final Benteler with certain information redacted on Antidumping Duty Investigation of Certain Cold-
Determination.’’ The period of March 27, 2018); and Bentler’s Rebuttal Brief, Drawn Mechanical Tubing of Carbon and Alloy
‘‘Antidumping Duty Investigation of Certain Cold- Steel from the Federal Republic of Germany,’’ dated
investigation (POI) is April 1, 2016, concurrently with this determination and hereby
Drawn Mechanical Tubing of Carbon and Alloy
through March 31, 2017. Steel from Germany: Rebuttal Case Brief,’’ dated adopted by this notice (Issues and Decision
March 14, 2018. Memorandum).
DATES: Applicable April 16, 2018. 8 See Preliminary Determination, 82 FR at 55559.
6 See Memorandum, ‘‘Deadlines Affected by the
FOR FURTHER INFORMATION CONTACT: Shutdown of the Federal Government,’’ dated The scope case briefs were due five days after the
srobinson on DSK3G9T082PROD with NOTICES
Frances Veith, AD/CVD Operations, January 23, 2018. All deadlines in this segment of publication of the preliminary less than fair value
the proceeding have been extended by 3 days. If the determinations for China, Germany, India, Italy,
Office III, Enforcement and Compliance, Korea, and Switzerland in the Federal Register, and
new deadline falls on a non-business day, in
International Trade Administration, accordance with Commerce’s practice, the deadline the rebuttal briefs were due three days after the due
U.S. Department of Commerce, 1401 will become the next business day. See Notice of date for the scope case briefs, i.e., Monday,
Constitution Avenue NW, Washington, Clarification: Application of ‘‘Next Business Day’’ November 27, 2017 and Thursday, November 30,
Rule for Administrative Determination Deadlines 2017.
DC 20230; telephone: (202) 482–4295. 9 See Memorandum, ‘‘Certain Cold-Drawn
Pursuant to the Tariff Act of 1930, as Amended, 70
SUPPLEMENTARY INFORMATION: FR 24533 (May 10, 2005). Mechanical Tubing of Carbon and Alloy Steel from
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Document Created: 2018-04-14 02:19:20
Document Modified: 2018-04-14 02:19:20
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Dates | Effective April 16, 2018. | |
| Contact | Paul Stolz or Keith Haynes, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-4474 or (202) 482-5139, respectively. | |
| FR Citation | 83 FR 16322 |
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