[Federal Register Volume 72, Number 247 (Thursday, December 27, 2007)]
[Notices]
[Pages 73322-73323]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-25083]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-915]


Light-Walled Rectangular Pipe and Tube From the People's Republic 
of China: Notice of Amended Affirmative Preliminary Countervailing Duty 
Determination

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: The purpose of this amended affirmative preliminary 
determination is to correct a significant ministerial error in the 
preliminary determination, published on November 30, 2007, that 
countervailable subsidies are being provided to producers and exporters 
of light-walled rectangular pipe and tube from the People's Republic of 
China.

EFFECTIVE DATE: December 27, 2007.

FOR FURTHER INFORMATION CONTACT: Damian Felton or Shane Subler, AD/CVD 
Operations, Office 1, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
0133 and (202) 482-0189, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    We initiated a countervailing duty investigation on light-walled 
rectangular pipe and tube (``LWRP'') from the People's Republic of 
China (``PRC''). See Notice of Initiation of Countervailing Duty 
Investigation: Light-Walled Rectangular Pipe and Tube from the People's 
Republic of China, 72 FR 40281 (July 24, 2007). On November 30, 2007, 
we published our preliminary determination stating that countervailable 
subsidies are being provided to producers and exporters of LWRP from 
the PRC. See Light-walled Rectangular Pipe and Tube from the People's 
Republic of China: Preliminary Affirmative Countervailing Duty 
Determination and Alignment of Final Countervailing Duty Determination 
with Final Antidumping Duty Determination, 72 FR 67703 (November 30, 
2007) (``Preliminary Determination''). On December 3, 2007, 
Zhangjiagang Zhongyuan Pipe-making Co., Ltd. (``ZZPC'') filed a timely 
allegation of a significant ministerial error contained in the 
Department's Preliminary Determination. After reviewing the allegation, 
we have determined that the Preliminary Determination included a 
significant ministerial error. Therefore, in accordance with 19 CFR 
351.224(e), we have made changes, as described below, to the 
Preliminary Determination.

Scope of the Investigation

    The merchandise that is the subject of this investigation is 
certain welded carbon-quality light-walled steel pipe and tube, of 
rectangular (including square) cross section (LWR), having a wall 
thickness of less than 4mm.
    The term carbon-quality steel includes both carbon steel and alloy 
steel which contains only small amounts of alloying elements. 
Specifically, the term carbon-quality includes products in which none 
of the elements listed below exceeds the

[[Page 73323]]

quantity by weight respectively indicated: 1.80 percent of manganese, 
or 2.25 percent of silicon, or 1.00 percent of copper, or 0.50 percent 
of aluminum, or 1.25 percent of chromium, or 0.30 percent of cobalt, or 
0.40 percent of lead, or 1.25 percent of nickel, or 0.30 percent of 
tungsten, or 0.10 percent of molybdenum, or 0.10 percent of niobium, or 
0.15 percent vanadium, or 0.15 percent of zirconium. The description of 
carbon-quality is intended to identify carbon-quality products within 
the scope. The welded carbon-quality rectangular pipe and tube subject 
to this investigation is currently classified under the Harmonized 
Tariff Schedule of the United States (``HTSUS'') subheadings 
7306.61.50.00 and 7306.61.70.60. While HTSUS subheadings are provided 
for convenience and customs purposes, our written description of the 
scope of this investigation is dispositive.

Analysis of Alleged Significant Ministerial Error

    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.'' With respect to preliminary determinations, 19 CFR 
351.224(e) provides that the Department ``will analyze any comments 
received and, if appropriate, correct any significant ministerial error 
by amending the preliminary determination * * *'' A significant 
ministerial error is defined as an 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 countervailable subsidy rate calculated in the 
original (erroneous) preliminary determination; or (2) a difference 
between a countervailable subsidy rate of zero (or de minimis) and a 
countervailable subsidy rate of greater than de minimis or vice versa. 
See 19 CFR 351.224(g). We have determined that the Preliminary 
Determination contained a ``significant'' ministerial error with 
respect to ZZPC. See Memorandum to Susan Kuhbach, Director, Office 1, 
AD/CVD Operations, entitled, ``Ministerial Error Allegation'' (December 
19, 2007) for the analysis performed. This memorandum is on file in the 
Department's Central Records Unit in Room B-099 of the main Department 
building.

Amended Preliminary Determination

    Because the error alleged by ZZPC regarding the countervailable 
subsidy rate calculation for ZZPC was significant, we have amended the 
preliminary countervailing duty rate calculation for ZZPC, pursuant to 
19 CFR 351.224(e). In addition, the correction to ZZPC's rate also 
affects the rates established for Qingdao Xiangxing Steel Pipe Co. 
(``Qingdao'') and the all-others rate. The preliminary net 
countervailable subsidy rate for Kunshan Lets Win Steel Machinery Co., 
Ltd. (``Lets Win'') remains unchanged from the Preliminary 
Determination at 0.27 percent. As a result of corrections of 
ministerial errors, the amended preliminary net countervailable subsidy 
rates are as follows:

------------------------------------------------------------------------
                                 Original
    Exporter/manufacturer      subsidy rate      Amended subsidy rate
------------------------------------------------------------------------
Kunshan Lets Win Steel                  0.27  0.27.
 Machinery Co., Ltd.
Qingdao Xiangxing Steel Pipe           77.85  45.6 percent.
 Co.
Zhangjiagang Zhongyuan Pipe-            2.99  0.90 percent.
 making Co., Ltd., Jiangsu
 Qiyuan Group Co, Ltd.
All Others..................            2.99  15.59 percent.
------------------------------------------------------------------------

Suspension of Liquidation

    The collection of bonds or cash deposits and suspension of 
liquidation will be revised, in accordance with section 703(d) and (f) 
of the Act. Specifically, we will instruct U.S. Customs and Border 
Protection (``CBP'') to continue to suspend liquidation of all entries 
of LWRP from the PRC on or after the date of publication of this notice 
in the Federal Register. However, neither the suspension of liquidation 
nor the requirement for a cash deposit or bond will apply to 
merchandise produced and exported by Lets Win or ZZPC because the 
Department has preliminarily determined that Lets Win and ZZPC received 
de minimis subsidies.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, we have notified the 
U.S. International Trade Commission (``ITC'') of our amended 
affirmative preliminary determination. If our final countervailing duty 
determination is affirmative, the ITC will determine whether the 
imports covered by that determination are materially injuring, or 
threatening material injury to, the U.S. industry.
    This determination is issued and published pursuant to sections 
703(f) and 777(i)(1) of the Act.

    Dated: December 19, 2007.
David M. Spooner,
Assistant Secretary for Import Administration.
 [FR Doc. E7-25083 Filed 12-26-07; 8:45 am]
BILLING CODE 3510-DS-P