[Federal Register Volume 73, Number 141 (Tuesday, July 22, 2008)]
[Notices]
[Pages 42545-42547]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-16753]
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DEPARTMENT OF COMMERCE
International Trade Administration
(C-570-911)
Circular Welded Carbon Quality Steel Pipe from the People's
Republic of China: Notice of Amended Final Affirmative Countervailing
Duty Determination and Notice of Countervailing Duty Order
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: Based on affirmative final determinations by the Department of
Commerce (the Department) and the International Trade Commission (ITC),
the Department is issuing a countervailing duty order on circular
welded carbon quality steel pipe (CWP) from the People's Republic of
China (PRC). On July 15, 2008, the ITC notified the Department of its
affirmative determination of material injury to a U.S. industry. See
Circular Welded Carbon-Quality Steel Pipe from China, USITC Pub. 4019,
Investigation Nos. 701-TA-447 and 731-TA-1116 (Final) (July 2008).
EFFECTIVE DATE: July 22, 2008.
FOR FURTHER INFORMATION CONTACT: Shane Subler and Damian Felton at
(202) 482-0189 and (202) 482-0133, respectively, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW, Washington, DC 20230.
Background
On June 5, 2008, the Department published its final determination
in the countervailing duty investigation of CWP from the PRC. See
Circular Welded Carbon Quality Steel Pipe from the People's Republic of
China: Final Affirmative Countervailing Duty Determination and Final
Affirmative Determination of Critical Circumstances, 73 FR 31966 (June
5, 2008) (Final Determination).
On July 15, 2008, the ITC notified the Department of its final
determination pursuant to sections 705(b)(1)(A)(i) and 735(b)(1)(A)(i)
of the Tariff Act of 1930, as amended (the Act), that an industry in
the United States is materially injured by reason of subsidized imports
of subject merchandise the PRC. The ITC also determined that critical
circumstances do not exist. See Circular Welded Carbon-Quality Steel
Pipe from China (Investigation Nos. 701-TA-447 and 731-TA-1116 (Final),
USITC Publication 4019, July 2008).
Scope of the Order
The scope of this order covers certain welded carbon quality steel
pipes and tubes, of circular cross-section, and with an outside
diameter of 0.372 inches (9.45 mm) or more, but not more than 16 inches
(406.4 mm), whether or not stenciled, regardless of wall thickness,
surface finish (e.g., black, galvanized, or painted), end finish (e.g.,
plain end, beveled end, grooved, threaded, or threaded and coupled), or
industry specification (e.g., ASTM, proprietary, or other), generally
known as standard pipe and structural pipe (they may also be referred
to as circular, structural, or mechanical tubing).
Specifically, the term ``carbon quality'' includes products in
which (a) iron predominates, by weight, over each of the other
contained elements; (b) the carbon content is 2 percent or less, by
weight; and (c) none of the elements listed below exceeds the quantity,
by weight, as indicated:
(i) 1.80 percent of manganese;
(ii) 2.25 percent of silicon;
(iii) 1.00 percent of copper;
(iv) 0.50 percent of aluminum;
(v) 1.25 percent of chromium;
(vi) 0.30 percent of cobalt;
(vii) 0.40 percent of lead;
(viii) 1.25 percent of nickel;
(ix) 0.30 percent of tungsten;
(x) 0.15 percent of molybdenum;
(xi) 0.10 percent of niobium;
(xii) 0.41 percent of titanium;
(xiii) 0.15 percent of vanadium; or
(xiv) 0.15 percent of zirconium.
Standard pipe is made primarily to American Society for Testing and
Materials (ASTM) specifications, but can be made to other
specifications. Standard pipe is made primarily to ASTM specifications
A-53, A-135, and A-795. Structural pipe is made primarily to ASTM
specifications A-252 and A-500. Standard and structural pipe may also
be produced to proprietary specifications rather than to industry
specifications. This is often the case, for example, with fence tubing.
Pipe multiple-stenciled to a standard and/or structural specification
and to any other specification, such as the American Petroleum
Institute (API) API-5L specification, is also covered by the scope of
this investigation when it meets the physical description set forth
above and also has one or more of the following characteristics: is 32
feet in length or less; is less than 2.0 inches (50 mm) in outside
diameter; has a galvanized and/or painted surface finish; or has a
threaded and/or coupled end finish. (The term ``painted'' does not
include coatings to inhibit rust in transit, such as varnish, but
includes coatings such as polyester.)
[[Page 42546]]
The scope of this order does not include: (a) pipe suitable for use
in boilers, superheaters, heat exchangers, condensers, refining
furnaces and feedwater heaters, whether or not cold drawn; (b)
mechanical tubing, whether or not cold-drawn; (c) finished electrical
conduit; (d) finished scaffolding; (e) tube and pipe hollows for
redrawing; (f) oil country tubular goods produced to API
specifications; and (g) line pipe produced to only API specifications.
The pipe products that are the subject of this order are currently
classifiable in HTSUS statistical reporting numbers 7306.30.10.00,
7306.30.50.25, 7306.30.50.32, 7306.30.50.40, 7306.30.50.55,
7306.30.50.85, 7306.30.50.90, 7306.50.10.00, 7306.50.50.50,
7306.50.50.70, 7306.19.10.10, 7306.19.10.50, 7306.19.51.10, and
7306.19.51.50. However, the product description, and not the Harmonized
Tariff Schedule of the United States (``HTSUS'') classification, is
dispositive of whether merchandise imported into the United States
falls within the scope of the order.
Amendment to the Final Determination
In accordance with sections 705(d) and 777(i)(1) of the Act, on
June 5, 2008, the Department published its notice of final affirmative
countervailing duty determination in the countervailing duty
investigation of CWP from the PRC. See Final Determination, 73 FR
31966, and corresponding ``Issues and Decision Memorandum'' (May 29,
2008). On June 16, 2008, the petitioners\1\ filed timely allegations
stating that the Department made six ministerial errors in its final
determination. No rebuttal comments were received.
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\1\ The petitioners in this case are the Ad Hoc Coalition for
Fair Pipe Imports from China and the United Steel Workers.
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After analyzing all petitioners' comments, we have determined, in
accordance with 19 CFR 351.224(e), that we made four ministerial errors
in our calculations performed for the final determination. In addition,
the Department itself discovered it made two additional ministerial
errors.\2\
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\2\ See generally Memorandum to Susan Kuhbach, Director, Office
1, AD/CVD Operations from Nancy Decker, Program Manager, Office 1,
AD/CVD Operations, Re: ``Countervailing Duty Investigation: Circular
Welded Carbon-Quality Steel Pipe from the People's Republic of
China: Ministerial Error Allegations'' (July 2, 2008) (``Ministerial
Error Allegations Memo'').
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In summary, the petitioners contended that the Department erred in
making its Final Determination by making two distinct clerical errors
in calculating the benefit from the provision of hot-rolled steel (HRS)
at less than adequate remuneration when it did not adjust the
SteelBenchmarker to include delivery charges and import duties and did
not adjust the benchmark for a certain type\3\ of HRS to include
Chinese import duties. The Department did not make either of the
adjustments requested because they did not involve ministerial errors.
See Ministerial Error Allegations Memo at pages 2-3.
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\3\ The type of HRS is proprietary information. Specifics on
type of HRS can be found in the proprietary version of the
Ministerial Error Allegations Memo.
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Second, the petitioners contended that the Department made several
errors in the calculation of benefit from East Pipe's policy loans
including using an incorrect amount of reported interest for one loan,
incorrectly calculating the number of days outstanding for another
loan, and impermissibly offsetting the benefit from the specific loans
where the Department found a benefit in accordance with 19 CFR
351.505(a). The Department agreed with the petitioners that these three
ministerial errors were committed with respect to East Pipe's policy
loans and corrected each of the errors accordingly. See Ministerial
Error Allegations Memo at pages 3-5.
Third, the petitioners contended that with respect to Kingland, the
Department did not use the correct sales denominator to account for the
collapsing of Kingland companies.\4\ The Department agreed, in part,
with the petitioners that some ministerial errors were committed with
respect to Kingland's sales denominator. However, other requested
adjustments were not ministerial errors, because, for example, there
was not enough information on the record to make these other
adjustments. Therefore, the Department only corrected those errors it
found to be ministerial errors. See Ministerial Error Allegations Memo
at page 6.
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\4\ See Ministerial Error Allegations Memo at page 6 for the
specific factors used in the determination of Kingland's sales
denominator since the factors are proprietary information.
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Finally, the Department itself found two additional ministerial
errors. In our calculation to measure the adequacy of remuneration from
government-provided HRS we inadvertently did not use the actual import
price paid as a benchmark in the month(s) of purchase, and we did not
average that actual import price with the SteelBenchmarker price for
the month(s), and have made corrections accordingly. See Ministerial
Error Allegations Memo at pages 6-7. Additionally, we failed to make a
minor correction presented at verification regarding East Pipe's
interest paid on one loan (separate from the loan noted above). See
Ministerial Error Allegations Memo at pages 3-4.
As a result of correcting these errors, the countervailing duty
calculated for Weifang East Steel Pipe Co., Ltd. (``East Pipe'') has
changed from 29.57 percent to 29.62 percent, the countervailing duty
calculated for Zhejiang Kingland Pipeline and Technologies Co., Ltd.
(``Kingland Pipeline''), and affiliated companies (collectively,
``Kingland,'' or ``Kingland Companies'') has changed from 44.86 percent
to 44.93 percent, the countervailing duty calculated for Tianjin
Shuangjie Steel Pipe Co., Ltd.; Tianjin Shuangjie Steel Pipe Group Co.,
Ltd.; Tianjin Wa Song Imp. & Exp. Co., Ltd.; and Tianjin Shuanglian
Galvanizing Products Co., Ltd. (collectively, ``Shuangjie'') has
changed from 615.92 percent to 616.83 percent, and the countervailing
duty calculated for ``All Others'' has changed from 37.22 percent to
37.28 percent. Therefore, in accordance with 19 CFR 351.224(e), we are
amending the final determination in the countervailing duty
investigation of CWP from the PRC.
Countervailing Duty Order
On July 15, 2008, in accordance with section 705(d) of the Act, the
ITC notified the Department of its final determination that the
industry in the United States producing CWP is materially injured
within the meaning of section 705(b)(1)(A)(i) of the Act by reason of
subsidized imports of CWP from the PRC.
Therefore, countervailing duties will be assessed on all
unliquidated entries of CWP from the PRC entered, or withdrawn from
warehouse, for consumption on or after November 13, 2007, the date on
which the Department published its preliminary affirmative
countervailing duty determination in the Federal Register,\5\ and
before March 12, 2008, the date the Department instructed the U.S.
Customs and Border Protection (CBP) to discontinue the suspension of
liquidation in accordance with section 703(d) of the Act. Section
703(d) states that the suspension of liquidation pursuant to a
preliminary determination may not remain in effect for more than four
months. Therefore, entries of CWP made on or after March 12, 2008, and
prior to the date of publication of the ITC's final determination in
the Federal Register
[[Page 42547]]
are not liable for the assessment of countervailing duties due to the
Department's discontinuation, effective March 12, 2008, of the
suspension of liquidation.
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\5\ See Circular Welded Carbon Quality Steel Pipe from the
People's Republic of China: Preliminary Affirmative Countervailing
Duty Determination; Preliminary Affirmative Determination of
Critical Circumstances; and Alignment of Final Countervailing Duty
Determination with Final Antidumping Duty Determination, 72 FR 63875
(Nov. 13, 2007) (Preliminary Determination).
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With regard to the ITC's negative critical circumstances
determination, we will instruct CBP to lift suspension, release any
bond or other security, and refund any cash deposit made to secure the
payment of antidumping duties with respect to entries of the
merchandise entered, or withdrawn from warehouse, for consumption on or
after August 15, 2007, but before November 13, 2007 (i.e., the 90 days
prior to the date of publication of the Preliminary Determination).
In accordance with section 706 of the Act, the Department will
direct CBP to reinstitute the suspension of liquidation for CWP from
the PRC, effective the date of publication of the ITC's notice of final
determination in the Federal Register and to assess, upon further
advice by the Department 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 as noted below.
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Exporter/Manufacturer Net Subsidy Rate
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Weifang East Steel Pipe Co., Ltd......... 29.62[percnt]
Zhejiang Kingland Pipeline and 44.93[percnt]
Technologies Co., Ltd., Kingland Group
Co., Ltd, Beijing Kingland Centruy
Technologies Co., Zhejiang Kingland
Pipeline Industry Co., Ltd., and Shanxi
Kingland Pipeline Co., Ltd..............
Tianjin Shuangjie Steel Pipe Co., Ltd.; 616.83[percnt]
Tianjin Shuangjie Steel Pipe Group Co.,
Ltd.; Tianjin Wa Song Imp. & Exp. Co.,
Ltd.; and Tianjin Shuanglian Galvanizing
Products Co., Ltd.......................
All Others............................... 37.28[percnt]
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This notice constitutes the countervailing duty order with respect
to CWP from the PRC, pursuant to section 706(a) of the Act. Interested
parties may contact the Department's CRU, Room 1117 of the Main
Commerce Building, for copies of an updated list of countervailing duty
orders currently in effect.
This order is issued and published in accordance with section
706(a) of Act, 19 CFR 351.224(e), and 19 CFR 351.211(b).
Dated: July 16, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E8-16753 Filed 7-21-08; 8:45 am]
BILLING CODE 3510-DS-S