83 FR 43649 - Large Diameter Welded Pipe From Canada: Preliminary Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 166 (August 27, 2018)

Page Range43649-43651
FR Document2018-18488

The Department of Commerce (Commerce) preliminarily determines that large diameter welded pipe (welded pipe) from Canada is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is January 1, 2017, through December 31, 2017. Interested parties are invited to comment on this preliminary determination.

Federal Register, Volume 83 Issue 166 (Monday, August 27, 2018)
[Federal Register Volume 83, Number 166 (Monday, August 27, 2018)]
[Notices]
[Pages 43649-43651]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-18488]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-122-863]


Large Diameter Welded Pipe From Canada: Preliminary Determination 
of Sales at Less Than Fair Value, Postponement of Final Determination, 
and Extension of Provisional Measures

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that large diameter welded pipe (welded pipe) from Canada is being, or 
is likely to be, sold in the United States at less than fair value 
(LTFV). The period of investigation (POI) is January 1, 2017, through 
December 31, 2017. Interested parties are invited to comment on this 
preliminary determination.

DATES: Applicable August 27, 2018.

FOR FURTHER INFORMATION CONTACT: Susan S. Pulongbarit or Annathea Cook, 
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) 482-4031or (202) 482-
0250, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on February 
20, 2018.\1\ On June 8, 2018, Commerce postponed the preliminary 
determination of this investigation; the revised deadline is now August 
20, 2018.\2\ For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\3\ A list of topics included in the Preliminary Decision 
Memorandum is included as Appendix II to this notice. The Preliminary 
Decision Memorandum is a public document and is on file electronically 
via Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at https://access.trade.gov, and to all parties in the 
Central Records Unit, Room B8024 of the main Department of Commerce 
building. In addition, a complete version of the Preliminary Decision 
Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the Preliminary Decision 
Memorandum are identical in content.
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    \1\ See Large Diameter Welded Pipe from Canada, Greece, India, 
the People's Republic of China, the Republic of Korea, and the 
Republic of Turkey: Initiation of Less-Than-Fair-Value 
Investigations, 83 FR 7154 (February 20, 2018) (Initiation Notice).
    \2\ See Large Diameter Welded Pipe from Canada, Greece, India, 
the People's Republic of China, the Republic of Korea, and the 
Republic of Turkey: Postponement of Preliminary Determinations in 
the Less-Than-Fair-Value Investigations, 83 FR 27953 (June 15, 
2018).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of Large 
Diameter Welded Pipe from Canada'' dated concurrently with, and 
hereby adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is welded pipe from 
Canada. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period for parties to raise issues 
regarding product coverage (i.e., scope).\5\ Certain interested parties 
commented on the scope of the investigation as it appeared in the 
Initiation Notice, as well as additional language proposed by Commerce. 
For a summary of the product coverage comments and rebuttal responses 
submitted to the record for this investigation, and accompanying 
discussion and analysis of all comments timely received, see the 
Preliminary Scope Decision Memorandum.\6\ Commerce is preliminarily 
modifying the scope language as it appeared in the Initiation Notice. 
See the revised scope in Appendix I to this notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
    \6\ See Memorandum, ``Large Diameter Welded Pipe from Canada, 
Greece, India, the People's Republic of China, the Republic of 
Korea, and the Republic of Turkey: Scope Comments Decision 
Memorandum for the Preliminary Determinations,'' dated June 19, 2018 
(Preliminary Scope Decision Memorandum).
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export prices in 
accordance with section 772(a) of the Act. Normal value (NV) is 
calculated in accordance with section 773 of the Act. For a full 
description of the methodology underlying the preliminary 
determination, see the Preliminary Decision Memorandum.

All-Others Rate

    Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in 
the preliminary determination Commerce shall determine an estimated 
all-others rate for all exporters and producers not individually 
examined. This 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 
and de minimis margins, and any margins determined entirely under 
section 776 of the Act.
    Commerce calculated an individual estimated weighted-average 
dumping margin for Evraz Inc. NA (Evraz),\7\ the only individually 
examined exporter/producer 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 Evraz is the margin assigned to 
all-other producers and exporters, pursuant to section 735(c)(5)(A) of 
the Act.
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    \7\ While Commerce listed the name Evraz Inc. in its respondent 
selection memo based on U.S. Customs Border and Border Protection 
data, following the receipt of responses from Evraz, we note that 
Evraz's formal name is Evraz Inc. NA. See Memorandum, ``Less-Than-
Fair-Value Invstigation of Large Diameter Welded Pipe from Canada: 
Respondent Selection,'' dated March 23, 2018.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                                                              average
                    Exporter/producer                         dumping
                                                              margin
                                                             (percent)
------------------------------------------------------------------------
Evraz Inc. NA \8\.......................................           24.38
All-Others..............................................           24.38
------------------------------------------------------------------------

Suspension of Liquidation
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    \8\ Commerce preliminarily determines that Evraz Inc. NA, Evraz 
Inc. NA Canada, and the Canadian National Steel Corporation are a 
single entity. See Preliminary Decision Memorandum at ``Affiliation 
and Collapsing.''
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    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S.

[[Page 43650]]

Customs and Border Protection (CBP) to suspend liquidation of entries 
of subject merchandise, as described in Appendix I, entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register.
    Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR 
351.205(d), Commerce will instruct CBP to require a cash deposit equal 
to the estimated weighted-average dumping margin or the estimated all-
others rate, as follows: (1) The cash deposit rate for Evraz Inc. NA 
will be equal to the company-specific estimated weighted-average 
dumping margins determined in this preliminary determination; (2) if 
the exporter is not a respondent identified above, but the producer is 
Evraz Inc. NA, then the cash deposit rate will be equal to the company-
specific estimated weighted-average dumping margin established for 
Evraz Inc. NA; and (3) the cash deposit rate for all other producers or 
exporters will be 24.38 percent, as discussed in the ``All-Others 
Rate'' section, above. These suspension of liquidation instructions 
will remain in effect until further notice.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement or, if there is no public 
announcement, within five days of the date of publication of this 
notice in accordance with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments regarding non-scope issues 
may be submitted to the Assistant Secretary for Enforcement and 
Compliance no later than seven days after the date on which the last 
verification report is issued in this investigation, unless the 
Secretary alters the time limit. Rebuttal briefs, limited to issues 
raised in case briefs, may be submitted no later than five days after 
the deadline date for case briefs.\9\ Pursuant to 19 CFR 351.309(c)(2) 
and (d)(2), parties who submit case briefs or rebuttal briefs in this 
investigation are encouraged to submit with each argument: (1) A 
statement of the issue; (2) a brief summary of the argument; and (3) a 
table of authorities.
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    \9\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Additionally, case briefs regarding scope issues may be submitted 
within 10 days after the date of this notice in the Federal Register. 
Rebuttal briefs regarding scope issues, limited to those issues in the 
scope case briefs, may be submitted no later than five days after the 
deadline date for scope case briefs. All scope case and rebuttal briefs 
must be filed identically on the records of this investigation and the 
concurrent LTFV and countervailing duty investigations of welded pipe.
    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time 
and date to be determined. Parties should confirm the date, time, and 
location of the hearing two days before the scheduled date.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioner. Section 351.210(e)(2) of Commerce's regulations 
requires that a request by exporters for postponement of the final 
determination be accompanied by a request for extension of provisional 
measures for a four-month period to a period not more than six months 
in duration.
    On July 18, 2018, and August 8, 2018, pursuant to 19 CFR 
351.210(e), Evraz requested that Commerce postpone the final 
determination and that provisional measures be extended to a period not 
to exceed six months.\10\ In accordance with section 735(a)(2)(A) of 
the Act and 19 CFR 351.210(b)(2)(ii), because: (1) The preliminary 
determination is affirmative; (2) the requesting exporter accounts for 
a significant proportion of exports of the subject merchandise; and (3) 
no compelling reasons for denial exist, Commerce is postponing the 
final determination and extending the provisional measures for a four-
month period to a period not greater than six months. Accordingly, 
Commerce will make its final determination no later than 135 days after 
the publication date of the preliminary determination.
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    \10\ See Letter from the petitioners, ``Large Diamater Welded 
Pipe from Canada: Petitioners' Request for Postponement of the Final 
Determination,'' dated July 18, 2018; Letter from Evraz, ``Large 
Diameter Welded Pipe from Canada: Request for Postponement of Final 
Determinatio,'' dated August 8, 2018.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its preliminary 
determination. If the final determination is affirmative, the ITC will 
determine before the later of 120 days after the date of this 
preliminary determination or 45 days after the final determination 
whether these imports are materially injuring, or threaten material 
injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

    Dated: August 20, 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 merchandise covered by this investigation is welded carbon 
and alloy steel pipe (including stainless steel pipe), more than 
406.4 mm (16 inches) in nominal outside diameter (large diameter 
welded pipe), regardless of wall thickness, length, surface finish, 
grade, end finish, or stenciling. Large diameter welded pipe may be 
used to transport oil, gas, slurry, steam, or other fluids, liquids, 
or gases. It may also be used for structural purposes, including, 
but not limited to, piling. Specifically, not included is large 
diameter welded pipe produced only to specifications of the American 
Water Works Association (AWWA) for water and sewage pipe.

[[Page 43651]]

    Large diameter welded pipe used to transport oil, gas, or 
natural gas liquids is normally produced to the American Petroleum 
Institute (API) specification 5L. Large diameter welded pipe may 
also be produced to American Society for Testing and Materials 
(ASTM) standards A500, A252, or A53, or other relevant domestic 
specifications, grades and/or standards. Large diameter welded pipe 
can be produced to comparable foreign specifications, grades and/or 
standards or to proprietary specifications, grades and/or standards, 
or can be non-graded material. All pipe meeting the physical 
description set forth above is covered by the scope of this 
investigation, whether or not produced according to a particular 
standard.
    Subject merchandise also includes large diameter welded pipe 
that has been further processed in a third country, including but 
not limited to coating, painting, notching, beveling, cutting, 
punching, welding, or any other processing that would not otherwise 
remove the merchandise from the scope of the investigation if 
performed in the country of manufacture of the in-scope large 
diameter welded pipe.
    The large diameter welded pipe that is subject to this 
investigation is currently classifiable in the Harmonized Tariff 
Schedule of the United States (HTSUS) under subheadings 
7305.11.1030, 7305.11.1060, 7305.11.5000, 7305.12.1030, 
7305.12.1060, 7305.12.5000, 7305.19.1030, 7305.19.1060, 
7305.19.5000, 7305.31.4000, 7305.31.6010, 7305.31.6090, 7305.39.1000 
and 7305.39.5000. While the HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the 
scope of this investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Affiliation and Collapsing
    A. Affiliation
    B. Collapsing
VI. Discussion of the Methodology
    A. Determination of the Comparison Method
    B. Results of the Differential Pricing Analysis
VII. Date of Sale
VIII. Product Comparisons
IX. Export Price
X. Normal Value
    A. Home Market Viability
    B. Level of Trade
    C. Cost of Production (COP) Analysis
    1. Calculation of COP
    2. Test of Comparison Market Sales Prices
    3. Results of the COP Test
    D. Calculation of NV Based on Comparison Market Prices
    E. Calculation of NV Based on Constructed Value
XI. Currency Conversion

[FR Doc. 2018-18488 Filed 8-24-18; 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
DatesApplicable August 27, 2018.
ContactSusan S. Pulongbarit or Annathea Cook, 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) 482-4031or (202) 482- 0250, respectively.
FR Citation83 FR 43649 

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