[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