83 FR 4637 - Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel From the People's Republic of China and India: Countervailing Duty Orders

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 22 (February 1, 2018)

Page Range4637-4639
FR Document2018-02045

Based on affirmative final determinations by the Department of Commerce (Commerce) and the International Trade Commission (ITC), Commerce is issuing countervailing duty orders on certain cold-drawn mechanical tubing of carbon and alloy steel (cold-drawn mechanical tubing) from the People's Republic of China (China) and India.

Federal Register, Volume 83 Issue 22 (Thursday, February 1, 2018)
[Federal Register Volume 83, Number 22 (Thursday, February 1, 2018)]
[Notices]
[Pages 4637-4639]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-02045]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-059, C-533-874]


Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel 
From the People's Republic of China and India: Countervailing Duty 
Orders

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (Commerce) and the International Trade Commission (ITC), 
Commerce is issuing countervailing duty orders on certain cold-drawn 
mechanical tubing of carbon and alloy steel (cold-drawn mechanical 
tubing) from the People's Republic of China (China) and India.

DATES: February 1, 2018.

FOR FURTHER INFORMATION CONTACT: Shanah Lee at (202) 482-6386, AD/CVD 
Operations, Office III, and Ryan Mullen at (202) 482-5260, AD/CVD 
Operations, Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

Background

    In accordance with section 705(d) of the Tariff Act of 1930, as 
amended (the Act), and 19 CFR 351.210(c), on December 11, 2017, 
Commerce published its affirmative final determinations in the 
countervailing duty investigations of cold-drawn mechanical tubing from 
China and India.\1\ On January 24, 2018, the ITC notified Commerce of 
its final affirmative determination, pursuant to section 705(d) of the 
Act, that an industry in the United States is materially injured within 
the meaning of section 705(b)(1)(A)(i) of the Act, by reason of 
subsidized imports of cold-drawn mechanical tubing from China and 
India.\2\ Further, the ITC determined that critical circumstances do 
not exist with respect to imports of cold-drawn mechanical tubing from 
China.
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    \1\ 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) (China Final Determination); and Certain 
Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from India: 
Final Affirmative Countervailing Duty Determination, 82 FR 58172 
(December 11, 2017).
    \2\ See letter from the ITC concerning imports of cold-drawn 
mechanical tubing from China and India (Investigation Nos. 701-TA-
576-577 (Final)), dated January 24, 2018 (ITC Notification Letter).
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Scope of the Orders

    The product covered by these orders is cold-drawn mechanical tubing 
from China and India. For a complete description of the scope of these 
orders, see the Appendix to this notice.

Countervailing Duty Orders

    As stated above, on January 24, 2018, in accordance with sections 
705(d) of the Act, the ITC notified Commerce of its final determination 
that an industry in the United States is materially injured by reason 
of subsidized imports of cold-drawn mechanical tubing from China and 
India.\3\ Therefore, in accordance with section 705(c)(2) of the Act, 
Commerce is issuing these countervailing duty orders. Because the ITC 
determined that imports of cold-drawn mechanical tubing from China and 
India are materially injuring a U.S. industry, unliquidated entries of 
such merchandise from China and India, entered or withdrawn from 
warehouse for consumption, are subject to the assessment of 
countervailing duties.
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    \3\ See ITC Notification Letter.
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    As a result of the ITC's final determination, in accordance with 
section 706(a) of the Act, Commerce will direct U.S. Customs and Border 
Protection (CBP) to assess, upon further instruction by Commerce, 
countervailing duties on unliquidated entries of cold-drawn mechanical 
tubing from China and India entered, or withdrawn from warehouse, for 
consumption on or after September 25, 2017, the date of publication of 
the Preliminary Determinations,\4\ but will not include entries 
occurring after the expiration of the provisional measures period and 
before publication in the Federal Register of the ITC's final injury 
determination.
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    \4\ See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy 
Steel from the People's Republic of China: Preliminary Affirmative 
Countervailing Duty Determination, 82 FR 44562 (September 25, 2017); 
see also Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy 
Steel from India: Preliminary Affirmative Countervailing Duty 
Investigation, 82 FR 44558 (September 25, 2017) (collectively, 
Preliminary Determinations).
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Suspension of Liquidation

    In accordance with section 706 of the Act, Commerce will instruct 
CBP to reinstitute the suspension of liquidation on all entries of 
subject merchandise from China and India, applicable the

[[Page 4638]]

date of publication of the ITC's notice of final affirmative injury 
determination in the Federal Register, and to assess, upon further 
instruction by Commerce pursuant to section 706(a)(1) of the Act, 
countervailing duties for each entry of the subject merchandise in an 
amount based on the net countervailable subsidy rates for the subject 
merchandise. We will also instruct CBP to require cash deposits for 
each entry of subject merchandise as indicated below. These 
instructions suspending liquidation will remain in effect until further 
notice. The all-others rate applies to all producers or exporters not 
specifically listed, as appropriate.

------------------------------------------------------------------------
                                                           Subsidy rate
              Exporter/Producer from China                   (Percent)
------------------------------------------------------------------------
Jiangsu Hongyi Steel Pipe Co., Ltd \5\..................           21.41
Zhangjiagang Huacheng Import & Export Co., Ltd \6\......           18.27
All-Others..............................................           19.84
------------------------------------------------------------------------
Exporter/Producer from India                                Subsidy rate
                                                               (Percent)
------------------------------------------------------------------------
Goodluck India Limited..................................            8.02
Tube Investments of India Limited.......................           42.60
All-Others..............................................           22.40
------------------------------------------------------------------------

Critical Circumstances

    With regard to the ITC's negative critical circumstances 
determination on imports of cold-drawn mechanical tubing from China, we 
will instruct CBP to lift suspension and to refund any cash deposits 
made to secure the payment of estimated countervailing duties with 
respect to entries of the subject merchandise entered, or withdrawn 
from warehouse, for consumption on or after June 27, 2017 (i.e., 90 
days prior to the date of the publication of the Preliminary 
Determination), but before September 25, 2017 (i.e., the date of 
publication of the Preliminary Determination).
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    \5\ In China Final Determination, Commerce continued to find the 
following companies to be cross-owned with Jiangsu Hongyi Steel Pipe 
Co., Ltd.: Hongren Precision Pipe Manufacturing Co., Ltd and 
Changzhou Kemeng Mechanical Equipment Co., Ltd.
    \6\ See Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel 
from the People's Republic of China: Notice of Correction to Final 
Affirmative Countervailing Duty Determination of Critical 
Circumstances, In Part, 83 FR 351 (January 3, 2018) (China 
Correction Notice). In China Correction Notice, Commerce clarified 
the names of the companies it found to be cross-owned with 
Zhangjiagang Huacheng Import & Export Co., Ltd.: Jiangsu Huacheng 
Industry Pipe Making Corporation, Zhangjiagang Salem Fine Tubing 
Co., Ltd., Zhangjiagang Huacheng Investment Holding Co., Ltd., 
Zhangjiagang HZB Special Material Technology Co., Ltd. and 
Zhangjiagang Huacheng Special Materials Corporation.
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Notification to Interested Parties

    This notice constitutes the countervailing duty orders with respect 
to cold-drawn mechanical tubing from China and India pursuant to 
section 706(a) of the Act. Interested parties can find a list of 
countervailing duty orders at http://enforcement.trade.gov/stats/iastats1.html.
    These orders are issued and published in accordance with section 
706(a) and 19 CFR 351.211(b).

    Dated: January 26, 2018.
P. Lee Smith,
Deputy Assistant Secretary for Policy and Negotiations.

Appendix

Scope of the Orders

    The scope of these orders 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 these orders when it meets the physical description set 
forth above.
    Steel products included in the scope of these orders 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 these orders.
    All products that meet the written physical description are 
within the scope of these orders 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 orders 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 these orders:
    (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;

[[Page 4639]]

 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 these orders.
    The products subject to the orders 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 orders is dispositive.

[FR Doc. 2018-02045 Filed 1-31-18; 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
DatesFebruary 1, 2018.
ContactShanah Lee at (202) 482-6386, AD/CVD Operations, Office III, and Ryan Mullen at (202) 482-5260, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.
FR Citation83 FR 4637 

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