[Federal Register Volume 75, Number 217 (Wednesday, November 10, 2010)]
[Notices]
[Pages 69050-69052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-28402]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-957]


Certain Seamless Carbon and Alloy Steel Standard, Line, and 
Pressure Pipe From the People's Republic of China: Amended Final 
Affirmative Countervailing Duty Determination and 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 
certain seamless carbon and alloy steel standard, line, and pressure 
pipe (``seamless pipe'') from the People's Republic of China (``PRC''). 
Also, as explained in this notice, the Department is amending its final 
determination to correct certain ministerial errors.

DATES: Effective Date: November 10, 2010.

FOR FURTHER INFORMATION CONTACT: Shane Subler, Joseph Shuler, and 
Matthew Jordan, 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) 482-0189, (202) 482-1293, and (202) 482-1540, respectively.

Background

    On September 21, 2010, the Department published its final 
determination that countervailable subsidies are being provided to 
producers and exporters of seamless pipe from the PRC. See Certain 
Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe from 
the People's Republic of China: Final Affirmative Countervailing Duty 
Determination, Final Affirmative Critical Circumstances Determination, 
75 FR 57444 (September 21, 2010) (``Final Determination'').
    On November 4, 2010, the ITC notified the Department of its final 
determination pursuant to sections 705(b)(1)(A)(ii) and 705(d) of the 
Tariff Act of 1930, as amended (``the Act''), that an industry in the 
United States is threatened with material injury by reason of 
subsidized imports of subject merchandise from the PRC. The ITC also 
determined that critical circumstances do not exist. See Certain 
Seamless Carbon and Alloy Steel Standard, Line,

[[Page 69051]]

and Pressure Pipe from China, USITC Investigation Nos. 701-TA-469 and 
731-TA-1168, USITC Publication 4190 (November 2010).

Scope of the Order

    The scope of this order consists of certain seamless carbon and 
alloy steel (other than stainless steel) pipes and redraw hollows, less 
than or equal to 16 inches (406.4 mm) in outside diameter, regardless 
of wall-thickness, manufacturing process (e.g., hot-finished or cold-
drawn), end finish (e.g., plain end, beveled end, upset end, threaded, 
or threaded and coupled), or surface finish (e.g., bare, lacquered or 
coated). Redraw hollows are any unfinished carbon or alloy steel (other 
than stainless steel) pipe or ``hollow profiles'' suitable for cold 
finishing operations, such as cold drawing, to meet the American 
Society for Testing and Materials (``ASTM'') or American Petroleum 
Institute (``API'') specifications referenced below, or comparable 
specifications. Specifically included within the scope are seamless 
carbon and alloy steel (other than stainless steel) standard, line, and 
pressure pipes produced to the ASTM A-53, ASTM A-106, ASTM A-333, ASTM 
A-334, ASTM A-589, ASTM A-795, ASTM A-1024, and the API 5L 
specifications, or comparable specifications, and meeting the physical 
parameters described above, regardless of application, with the 
exception of the exclusion discussed below.
    Specifically excluded from the scope of the order are: (1) All 
pipes meeting aerospace, hydraulic, and bearing tubing specifications; 
(2) all pipes meeting the chemical requirements of ASTM A-335, whether 
finished or unfinished; and (3) unattached couplings. Also excluded 
from the scope of the order are all mechanical, boiler, condenser and 
heat exchange tubing, except when such products conform to the 
dimensional requirements, i.e., outside diameter and wall thickness of 
ASTM A-53, ASTM A-106 or API 5L specifications.
    The merchandise covered by the order is currently classified in the 
Harmonized Tariff Schedule of the United States (``HTSUS'') under item 
numbers: 7304.19.1020, 7304.19.1030, 7304.19.1045, 7304.19.1060, 
7304.19.5020, 7304.19.5050, 7304.31.6050, 7304.39.0016, 7304.39.0020, 
7304.39.0024, 7304.39.0028, 7304.39.0032, 7304.39.0036, 7304.39.0040, 
7304.39.0044, 7304.39.0048, 7304.39.0052, 7304.39.0056, 7304.39.0062, 
7304.39.0068, 7304.39.0072, 7304.51.5005, 7304.51.5060, 7304.59.6000, 
7304.59.8010, 7304.59.8015, 7304.59.8020, 7304.59.8025, 7304.59.8030, 
7304.59.8035, 7304.59.8040, 7304.59.8045, 7304.59.8050, 7304.59.8055, 
7304.59.8060, 7304.59.8065, and 7304.59.8070.
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, our written description of the merchandise subject to 
this scope is dispositive.

Amendment to the Final Determination

    On September 27, 2010, a petitioner in this case, United States 
Steel Corporation (``U.S. Steel''), filed timely allegations that the 
Department made two ministerial errors in its Final Determination. In 
summary, U.S. Steel alleged that the Department made errors in the 
summary rate table for respondent Hengyang \1\ and made errors in the 
calculation of the electricity subsidy rate for Hengyang. No interested 
party filed a rebuttal to U.S. Steel's allegations.
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    \1\ For the complete list of companies that ``Hengyang'' 
comprises, please see the ``Suspension of Liquidation'' section, 
below.
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    After analyzing the allegations, we have determined, in accordance 
with 19 CFR 351.224(e), that we made the two alleged ministerial errors 
in our calculations. See generally Memorandum to Susan Kuhbach, 
Director, Office 1, AD/CVD Operations, from Matthew Jordan, 
International Trade Compliance Analyst, AD/CVD Operations, Office 1, 
``Countervailing Duty Investigation: Certain Seamless Carbon and Alloy 
Steel Standard, Line, and Pressure Pipe (``Seamless Pipe'') from the 
People's Republic of China (``PRC''): Ministerial Errors for Final 
Determination'' (October 14, 2010).
    Our corrected calculation to the ``Provision of Electricity for 
Less Than Adaquate Remuneration Program'' found an ad valorem subsidy 
rate of 5.46 percent for Hengyang. The previously calculated rate had 
been 4.22 percent ad valorem. As a result of the corrections, 
Hengyang's total countervailing duty rate changed from 53.65 percent to 
56.67 percent. The countervailing duty rate for the other respondent in 
the seamless pipe investigation, TPCO,\2\ did not change. As a result 
of the correction to Hengyang's rate, the countervailing duty rate for 
all others changed from 33.66 percent to 35.17 percent. In accordance 
with 19 CFR 351.224(e), we are amending the Final Determination to 
reflect these changes.
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    \2\ For the complete list of companies that ``TPCO'' comprises, 
please see the ``Suspension of Liquidation'' section, below.
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Countervailing Duty Order

    According to section 706(b)(2) of the Act, duties shall be assessed 
on subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of the ITC's notice of 
final determination if that determination is based upon the threat of 
material injury. Section 706(b)(1) of the Act states, ``{i{time} f the 
Commission, in its final determination under section 705(b), finds 
material injury or threat of material injury which, but for the 
suspension of liquidation under section 703(d)(2), would have led to a 
finding of material injury, then entries of the merchandise subject to 
the countervailing duty order, the liquidation of which has been 
suspended under section 703(d)(2), shall be subject to the imposition 
of countervailing duties under section 701(a).'' In addition, section 
706(b)(2) of the Act requires U.S. Customs and Border Protection 
(``CBP'') to refund any cash deposits or bonds of estimated 
countervailing duties posted before the date of publication of the 
ITC's final affirmative determination, if the ITC's final determination 
is based on threat other than the threat described in section 706(b)(1) 
of the Act. Because the ITC's final determination in this case is based 
on the threat of material injury and is not accompanied by a finding 
that injury would have resulted but for the imposition of suspension of 
liquidation of entries since the Department's Preliminary Determination 
\3\ was published in the Federal Register, section 706(b)(2) of the Act 
is applicable.
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    \3\ See Certain Seamless Carbon and Alloy Steel Standard, Line, 
and Pressure Pipe From the People's Republic of China: Preliminary 
Affirmative Countervailing Duty Determination, Preliminary 
Affirmative Critical Circumstances Determination, 75 FR 9163 (March 
1, 2010) (``Preliminary Determination'').
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    As a result of the ITC's determination and in accordance with 
section 706(a)(1) of the Act, the Department will direct CBP to assess, 
upon further instruction by the Department, countervailing duties equal 
to the amount of the net countervailable subsidy for all relevant 
entries of seamless pipe from the PRC. In accordance with section 706 
of the Act, the Department will direct CBP to reinstitute suspension of 
liquidation,\4\

[[Page 69052]]

effective on the date of publication of the ITC's notice of final 
determination in the Federal Register, and to require a cash deposit 
for each entry of subject merchandise in an amount equal to the net 
countervailable subsidy rates listed below. See section 706(a)(3) of 
the Act. The all others rate applies to all producers and exporters of 
subject merchandise not specifically listed.
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    \4\ The Department instructed CBP to discontinue the suspension 
of liquidation on June 29, 2010, 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. Entries of seamless pipe from the PRC made on 
or after June 29, 2010, and prior to the date of publication of the 
ITC's final determination in the Federal Register are not liable for 
the assessment of countervailing duties because of the Department's 
discontinuation, effective June 29, 2010, of the suspension of 
liquidation.

 
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                                                            Net subsidy
                  Exporter/Manufacturer                        rate
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Tianjin Pipe (Group) Corp., Tianjin Pipe Iron                      13.66
 Manufacturing Co., Ltd., Tianguan Yuantong Pipe Product
 Co., Ltd., Tianjin Pipe International Economic and
 Trading Co., Ltd., and TPCO Charging Development Co.,
 Ltd....................................................
Hengyang Steel Tube Group Int'l Trading, Inc., Hengyang            56.67
 Valin Steel Tube Co., Ltd., Hengyang Valin MPM Tube
 Co., Ltd., Xigang Seamless Steel Tube Co., Ltd., Wuxi
 Seamless Special Pipe Co., Ltd., Wuxi Resources Steel
 Making Co., Ltd., Jiangsu Xigang Group Co., Ltd., Hunan
 Valin Xiangtan Iron & Steel Co., Ltd., Wuxi Sifang
 Steel Tube Co., Ltd., Hunan Valin Steel Co., Ltd.,
 Hunan Valin Iron & Steel Group Co., Ltd................
All Others..............................................           35.17
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Termination of the Suspension of Liquidation

    As a result of our affirmative critical circumstances finding on 
Hengyang and all companies other than TPCO, CBP suspended liquidation 
and collected cash deposits or bonds on all entries by these companies 
made 90 days prior to our affirmative Preliminary Determination. 
Entries for TPCO were suspended and cash deposits or bonds were 
collected as of March 1, 2010 (i.e., the date of publication of our 
Preliminary Determination).
    The Department will instruct CBP to terminate the suspension of 
liquidation for entries of seamless pipe from the PRC, entered or 
withdrawn from warehouse, for consumption prior to the publication of 
the ITC's notice of final determination. The Department will also 
instruct CBP to refund any cash deposits made and release any bonds 
with respect to entries of seamless pipe entered, or withdrawn from 
warehouse, for consumption on or after December 1, 2009 (i.e., 90 days 
prior to the date of publication of the Preliminary Determination), but 
before the date of publication of the ITC's final determination in the 
Federal Register.
    This notice constitutes the countervailing duty order with respect 
to seamless pipe from the PRC, pursuant to section 706(a) of the Act. 
Interested parties may contact the Department's Central Records Unit, 
Room 7046 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 the Act, 19 CFR 351.224(e) and 19 CFR 351.211(b).

     Dated: November 5, 2010
Edward C. Yang,
Acting Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-28402 Filed 11-9-10; 8:45 am]
BILLING CODE 3510-DS-P