83 FR 345 - Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel From Switzerland: Amended Preliminary Determination of Sales at Less Than Fair Value

DEPARTMENT OF COMMERCE
International Trade Adminstration

Federal Register Volume 83, Issue 2 (January 3, 2018)

The Department of Commerce (Commerce) is amending the preliminary determination of sales at less than fair value (LTFV) in the antidumping duty investigation of certain cold-drawn mechanical tubing of carbon and alloy steel (cold-drawn mechanical tubing) from Switzerland to correct significant ministerial errors alleged by each of the mandatory respondents in this proceeding.

[Federal Register Volume 83, Number 2 (Wednesday, January 3, 2018)]
[Notices]
[Pages 345-347]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-28405]


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DEPARTMENT OF COMMERCE

International Trade Adminstration

[A-441-801]


Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel 
From Switzerland: Amended Preliminary Determination of Sales at Less 
Than Fair Value

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

SUMMARY: The Department of Commerce (Commerce) is amending the 
preliminary determination of sales at less than fair value (LTFV) in 
the antidumping duty investigation of certain cold-drawn mechanical 
tubing of carbon and alloy steel (cold-drawn mechanical tubing) from 
Switzerland to correct significant ministerial errors alleged by each 
of the mandatory respondents in this proceeding.

DATES: Applicable January 3, 2018.

FOR FURTHER INFORMATION CONTACT: Laurel LaCivita, AD/CVD Operations, 
Office III, and Amanda Brings, 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) 482-4243 or (202) 482-3927, respectively.

SUPPLEMENTARY INFORMATION:

[[Page 346]]

Background

    On November 22, 2017, Commerce published in the Federal Register 
the Preliminary Determination that cold-drawn mechanical tubing from 
Switzerland is being, or is likely to be, sold in the United States at 
LTFV, as provided in section 733 of the Tariff Act of 1930, as amended 
(Act).\1\ On November 22, 2017, and December 7, 2017, Benteler Rothrist 
AG (Benteler Rothrist) and Mubea Pr[auml]zisionsstahlrohr AG and Mubea 
Inc. (collectively, Mubea), respectively, alleged that Commerce made 
significant ministerial errors in the Preliminary Determination.\2\
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    \1\ See Cold-Drawn Mechanical Tubing from Switzerland: 
Preliminary Affirmative Determination of Sales at Less Than Fair 
Value and Postponement of Final Determination, and Extension of 
Provisional Measures, 82 FR 55571 (November 22, 2017) (Preliminary 
Determination).
    \2\ See Benteler Rothrist's letter, ``Antidumping Duty 
Investigation of Certain Cold-Drawn Mechanical Tubing of Carbon and 
Alloy Steel from Switzerland: Ministerial Error Comments for the 
Preliminary Determination,'' dated November 22, 2017 (``Benteler 
Rothrist's Ministerial Error Allegation''); and Mubea's letter, 
``Antidumping Investigation of Certain Cold-Drawn Mechanical Tubing 
from Switzerland: Resubmitted Ministerial Error Comments for the 
Preliminary Determination,'' December 7, 2017 (Mubea's Ministerial 
Error Allegation).
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Period of Investigation

    The period of investigation (POI) is April 1, 2016, through March 
31, 2017.

Scope of Investigation

    The product covered by this investigation is cold-drawn mechanical 
tubing from Switzerland. Since the publication of the Preliminary 
Determination, Commerce has evaluated relevant comments on the scope of 
the investigation and issued its Final Scope Determination.\3\ For a 
complete description of the final scope of this investigation, see 
Appendix.
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    \3\ See Commerce's 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.
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Analysis of Significant Ministerial Error Allegations

    Commerce will analyze any comments received and, if appropriate, 
correct any significant ministerial error by amending the preliminary 
determination according to 19 CFR 351.351.224(e). A ministerial error 
is defined in 19 CFR 351.224(f) as ``an error in addition, subtraction, 
or other arithmetic function, clerical error resulting from inaccurate 
copying, duplication, or the like, and any other similar type of 
unintentional error which the Secretary considers ministerial.'' \4\ A 
significant ministerial error is defined as a ministerial error, the 
correction of which, singly or in combination with other errors, would 
result in: (1) A change of at least five absolute percentage points in, 
but not less than 25 percent of, the weighted-average dumping margin 
calculated in the original (erroneous) preliminary determination; or 
(2) a difference between a weighted-average dumping margin of zero or 
de minimis and a weighted-average dumping margin of greater than de 
minimis or vice versa.\5\ As a result of this amended preliminary 
determination, we have revised the margins applicable to Benteler 
Rothrist, Mubea and all others.\6\
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    \4\ See section 735(e) of the Act.
    \5\ See 19 CFR 351.224(g).
    \6\ See the ``Amended Preliminary Determination'' section below.
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    Commerce reviewed the record with respect to the respondents' 
claims.\7\ Though we determine that Benteler Rothrist's allegation 
regarding the inclusion of sample sales in the U.S. and third country 
databases represents a methodological disagreement rather than a 
clerical error, we agree that all other alleged errors constitute 
unintentional errors consistent with the definition of ministerial 
errors in 19 CFR 351.224(f).\8\ Pursuant to 19 CFR 351.224(g)(2), these 
errors are significant because their correction results in a change of 
at least five absolute percentage points in, but not less than 25 
percent of, the weighted-average dumping margin calculated in the 
original preliminary determination (i.e., a decrease in the weighted-
average dumping margin from 34.15 percent to 23.33 percent for Benteler 
Rothrist, and from 68.59 percent to 36.48 percent for Mubea, and a 
decrease in the all-others rate from 36.17 to 24.10 percent).\9\ 
Therefore, we are correcting these errors and amending our preliminary 
determination accordingly.
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    \7\ See the Commerce's memorandum, ``Antidumping Duty 
Investigation of Certain Cold-Drawn Mechanical Tubing of Carbon and 
Alloy Steel from Switzerland: Ministerial Error Allegations in the 
Preliminary Determination,'' dated concurrently with this notice.
    \8\ Id.
    \9\ Id. See also memorandum to the file, ``Certain Cold-Drawn 
Mechanical Tubing of Carbon and Alloy Steel from Switzerland: 
Calculation of the All-Others Rate in the Amended Preliminary 
Determination,'' dated concurrently with this notice; memorandum to 
the file, ``Analysis Memorandum for the Amended Preliminary 
Determination of the Antidumping Duty Investigation of Certain Cold-
Drawn Mechanical Tubing of Carbon and Alloy Steel (Cold-Drawn 
Mechanical Tubing) from Switzerland: Benteler Rothrist AG,'' dated 
concurrently with this memorandum; and memorandum to the file, 
``Analysis Memorandum for the Amended Preliminary Determination of 
the Antidumping Duty Investigation of Certain Cold-Drawn Mechanical 
Tubing of Carbon and Alloy Steel (Cold-Drawn Mechanical Tubing) from 
Switzerland: Mubea Pr[auml]zisionsstahlrohr AG (MPST) and Mubea Inc. 
(collectively, Mubea),'' dated concurrently with this memorandum.
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Amended Preliminary Determination

    As a result of this amended preliminary determination, we have 
revised the preliminary estimated weighted-average dumping margins as 
follows:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margins
                                                               (percent)
------------------------------------------------------------------------
Benteler Rothrist AG (Benteler Rothrist)....................       23.33
Mubea Pr[auml]zisionsstahlrohr AG (MPST)....................       36.48
All Others..................................................       24.10
------------------------------------------------------------------------

Amended Cash Deposits and Suspension of Liquidation

    The collection of cash deposits and suspension of liquidation will 
be revised to the rates established in this amended preliminary 
determination, in accordance with section 733(d) and (f) of the Act and 
19 CFR 351.224. Because the corrected margins are lower than the rates 
issued in the Preliminary Determination, the amended cash deposit rates 
will be effective retroactively to November 22, 2017, the date of 
publication of the Preliminary Determination.

Disclosure

    We intend to disclose the calculations performed to parties in this 
proceeding within five days after publication of the notice of amended 
preliminary determination in the Federal Register in accordance with 19 
CFR 351.224(b).

International Trade Commission Notification

    In accordance with section 733(f) of the Act, we notified the 
International Trade Commission of our amended preliminary 
determination.
    This amended preliminary determination is issued and published in 
accordance with sections 733(f) and 777(i)(1) of the Act and 19 CFR 
351.224(e).


[[Page 347]]


    Dated: December 21, 2017.
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

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.

[FR Doc. 2017-28405 Filed 1-2-18; 8:45 am]
BILLING CODE 3510-DS-P