83 FR 16326 - Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel From the Federal Republic of Germany: 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)

The Department of Commerce (Commerce) determines that certain cold-drawn mechanical tubing of carbon and alloy steel (cold-drawn mechanical tubing) from the Federal Republic of Germany (Germany) is being, or is likely to be, sold in the United States at less than fair value (LTFV). The final estimated weighted-average dumping margins of sales at LTFV are listed below in the section entitled ``Final Determination.'' The period of investigation (POI) is April 1, 2016, through March 31, 2017.

[Federal Register Volume 83, Number 73 (Monday, April 16, 2018)]
[Notices]
[Pages 16326-16328]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-07850]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[A-428-845]


Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel 
From the Federal Republic of Germany: 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 certain 
cold-drawn mechanical tubing of carbon and alloy steel (cold-drawn 
mechanical tubing) from the Federal Republic of Germany (Germany) is 
being, or is likely to be, sold in the United States at less than fair 
value (LTFV). The final estimated weighted-average dumping margins of 
sales at LTFV are listed below in the section entitled ``Final 
Determination.'' The period of investigation (POI) is April 1, 2016, 
through March 31, 2017.

DATES: Applicable April 16, 2018.

FOR FURTHER INFORMATION CONTACT: Frances Veith, 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) 482-4295.

SUPPLEMENTARY INFORMATION: 

Background

    On November 22, 2017, Commerce published the Preliminary 
Determination of sales at LTFV of cold-drawn mechanical tubing from 
Germany.\1\ Commerce invited comments from interested parties on the 
Preliminary Determination.\2\ The petitioners,\3\ Benteler Steel/Tube 
GmbH (Benteler), Salzgitter Mannesmann Line Pipe GmbH (Salzgitter), 
filed case \4\ and rebuttal briefs.\5\ Commerce exercised its 
discretion to toll deadlines affected by the closure of the Federal 
Government from January 20 through 22, 2018. The revised deadline for 
the final determination of this investigation is now April 9, 2018.\6\
---------------------------------------------------------------------------

    \1\ See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy 
Steel from the Federal Republic of Germany: Preliminary Affirmative 
Determination of Sales at Less Than Fair Value and Postponement of 
Final Determination, 82 FR 55558 (November 22, 2017) (Preliminary 
Determination), and accompanying Preliminary Issues and Decision 
Memorandum (Preliminary Decision Memorandum).
    \2\ See Preliminary Determination, 83 FR at 55559.
    \3\ ArcelorMittal Tubular Products, Michigan Seamless Tube, LLC, 
PTC Alliance Corp., Plymouth Tube Co. USA, Webco Industries, Inc., 
and Zekelman Industries, Inc. (collectively, the petitioners).
    \4\ See the petitioners' Case Brief, ``Petitioners' Case 
Brief,'' dated March 9, 2018 (Petitioners' Case Brief); Salzgitter's 
Case Brief, ``Antidumping Duty Investigation of Cold-Drawn 
Mechanical Tubing of Carbon and Alloy Steel from Federal Republic of 
Germany: Case Brief,'' dated March 9, 2018 (Salzgitter's Case 
Brief); and Bentler's Case Brief, ``Antidumping Duty Investigation 
of Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel 
from Germany: Resubmission of Case Brief,'' dated March 27, 2018 (on 
March 26, 2018, Commece rejected and removed Benteler's timely filed 
case brief, submitted on March 9, 2018, from the record and Benteler 
refiled its case brief with certain information redacted on March 
27, 2018).
    \5\ See the petitioners' Rebuttal Brief, ``Petitioners' Rebuttal 
Brief on Salzgitter,'' dated March 14, 2018; the petitioners' 
Rebuttal Brief, ``Petitioners' Rebuttal Brief on Benteler 
Corrected,'' dated March 27, 2018 (on March 26, 2018, Commece 
rejected and removed the petitioners' timely filed rebuttal brief on 
Benteler, submitted on March 14, 2018, from the record and the 
petitioner refiled its rebuttal brief on Benteler with certain 
information redacted on March 27, 2018); and Bentler's Rebuttal 
Brief, ``Antidumping Duty Investigation of Certain Cold-Drawn 
Mechanical Tubing of Carbon and Alloy Steel from Germany: Rebuttal 
Case Brief,'' dated March 14, 2018.
    \6\ See Memorandum, ``Deadlines Affected by the Shutdown of the 
Federal Government,'' dated January 23, 2018. All deadlines in this 
segment of the proceeding have been extended by 3 days. If the new 
deadline falls on a non-business day, in accordance with Commerce's 
practice, the deadline will become the next business day. See Notice 
of Clarification: Application of ``Next Business Day'' Rule for 
Administrative Determination Deadlines Pursuant to the Tariff Act of 
1930, as Amended, 70 FR 24533 (May 10, 2005).
---------------------------------------------------------------------------

    The participating mandatory respondent in this investigation is 
Benteler. In addition, while two other respondents were selected as 
mandatory respondents, pursuant to sections 776(a) and (b) of the Act, 
Commerce continues to rely upon facts otherwise available, with adverse 
inferences (AFA) in determining the estimated weighted-average dumping 
margins for Mubea Fahrwerksfedern GmbH (Mubea) and Salzgitter 
Mannesmann Line Pipe GmbH (Salzgitter). Also, for certain Benteler 
sales transactions, we relied upon AFA and partial facts available, 
with adverse inferences, pursuant to section 776(a) and (b) of the Act. 
For a full description of the methodology underlying the final 
determination, see the Issues and Decision Memorandum.
    A complete 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 Issues and Decision Memorandum.\7\
---------------------------------------------------------------------------

    \7\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Antidumping Duty Investigation of Certain 
Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from the 
Federal Republic of Germany,'' dated concurrently with this 
determination and hereby adopted by this notice (Issues and Decision 
Memorandum).
---------------------------------------------------------------------------

    The Issues and Decision Memorandum is a public document and is 
available 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 
to all parties in the Central Records Unit, Room B-8024 of Commerce's 
main building. In addition, a complete version of the Issues and 
Decision Memorandum can be accessed at http://enforcement.trade.gov/frn/. The signed Issues and Decision Memorandum and electronic version 
are identical in content.

Scope of the Investigation

    The product covered by this investigation is cold-drawn mechanical 
tubing from Germany. In the Preliminary Determination, we set a 
separate briefing schedule on scope issues for interested parties.\8\ 
Certain interested parties commented on the scope of the investigation 
as it appeared in the Preliminary Scope Decision Memorandum.\9\ On 
December 4, 2017,

[[Page 16327]]

the petitioners withdrew a portion of their comments regarding the 
scope language.\10\ Commerce addressed all scope comments received in 
the Final Scope Decision Memorandum and made changes to the scope that 
appeared in the Preliminary Determination.\11\ For the full scope of 
this investigation, see the scope in Appendix I to this notice.
---------------------------------------------------------------------------

    \8\ See Preliminary Determination, 82 FR at 55559. The scope 
case briefs were due five days after the publication of the 
preliminary less than fair value determinations for China, Germany, 
India, Italy, Korea, and Switzerland in the Federal Register, and 
the rebuttal briefs were due three days after the due date for the 
scope case briefs, i.e., Monday, November 27, 2017 and Thursday, 
November 30, 2017.
    \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 
Decision Memorandum).
    \10\ See the petitioners' Letter, ``Certain Cold-Drawn 
Mechanical Tubing from Germany et al.--EN-10305-3,'' dated December 
4, 2017.
    \11\ 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 (Final Scope Decision 
Memorandum).
---------------------------------------------------------------------------

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), Commerce verified the sales and cost data reported by 
Benteler 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 the respondent.

Analysis of Comments Received

    All issues raised in the case briefs and rebuttal briefs submitted 
by interested parties in this proceeding are discussed in the Issues 
and Decision Memorandum. A list of the issues raised by parties and 
responded to by Commerce in the Issues and Decision Memorandum is 
attached at Appendix II.

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 
Benteler since the Preliminary Determination. These changes are 
discussed in the ``Margin Calculations'' section of the Issues and 
Decision Memorandum.

All-Others Rate

    Commerce calculated an individual estimated weighted-average 
dumping margin for Benteler, the only individually examined exporter/
producer that is participating in this investigation. Because the only 
individually calculated dumping margin is not zero, de minimis, or 
based entirely on facts otherwise available, the estimated weighted-
average dumping margin calculated for Benteler is the margin assigned 
to all-other producers and exporters, pursuant to section 735(c)(5)(A) 
of the Act.

Final Determination Margins

    The weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                    Exporter/producer                         average
                                                          dumping margin
                                                             (percent)
------------------------------------------------------------------------
BENTELER Steel/Tube GmbH/BENTELER Distribution                      3.11
 International GmbH \12\................................
Mubea Fahrwerksfedern GmbH..............................          209.06
Salzgitter Mannesmann Line Pipe GmbH....................          209.06
All-Others..............................................            3.11
------------------------------------------------------------------------
\12\ In the Preliminary Determination, Commerce found that BENTELER
  Steel/Tube GmbH and BENTELER Distribution International GmbH are a
  single entity and, because there were no changes to the facts which
  supported that decision, since that determination was made, we
  continue to find that these companies are part of a single entity for
  this final determination. See also Preliminary Decision Memorandum.

Disclosure

    We will disclose the calculations performed 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 the 
suspension of liquidation of all appropriate entries of cold-drawn 
mechanical tubing from Germany, 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 of this investigation in the Federal 
Register. Further, Commerce 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.
    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.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
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, or sales (or the 
likelihood of sales) for importation of cold-drawn mechanical tubing 
from Germany 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

[[Page 16328]]

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 serves as the only reminder to parties subject to an 
administrative protective order (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 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 
351.210(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, 
nondestruction testing, deburring or chamfering, remains within the 
scope of the 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. Discussion of the Issues
    Comment 1: Identification of Missing Information for Certain 
Benteler/BDI's U.S. and Home Market Sales
    Comment 2: Comparison of U.S. Sales of Cold-Drawn Mechanical 
Tubing With Home Market Sales of Cold-Drawn Mechanical Tubing
    Comment 3: Cash (Barverkauf) Sales
    Comment 4: Use of the Average-to-Average Methodology for 
Benteler/BDI's Margin Calculation
    Comment 5: Application of AFA to Salzgitter
    Comment 6: References to Appropriate Manufacturer
VI. Recommendation

[FR Doc. 2018-07850 Filed 4-13-18; 8:45 am]
 BILLING CODE 3510-DS-P