[Federal Register Volume 76, Number 42 (Thursday, March 3, 2011)]
[Notices]
[Pages 11758-11760]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-4796]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-966]


Drill Pipe From the People's Republic of China: 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 drill pipe 
from the People's Republic of China (PRC).

DATES: Effective Date: March 3, 2011.
    Contact Information: Kristen Johnson, AD/CVD Operations, Office 3, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230; telephone: (202) 482-4793.

SUPPLEMENTARY INFORMATION:

Background

    On January 11, 2011, the Department published its final 
determination that countervailable subsidies are being provided to 
producers and exporters of drill pipe from the PRC. See Drill Pipe from 
the People's Republic of China: Final Affirmative Countervailing Duty 
Determination, Final Affirmative Critical Circumstances Determination, 
76 FR 1971 (January 11, 2011).

[[Page 11759]]

    On February 24, 2011, 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 Drill Pipe and 
Drill Collars from China, Investigation Nos. 701-TA-474 and 731-TA-1176 
(Final), USITC Publication 4213 (February 2011). Pursuant to section 
706(a) of the Act, the Department is publishing a countervailing duty 
order on the subject merchandise.

Scope of the Order

    The products covered by this order are steel drill pipe and steel 
drill collars, whether or not conforming to American Petroleum 
Institute (API) or non-API specifications. Included are finished drill 
pipe and drill collars without regard to the specific chemistry of the 
steel (i.e., carbon, stainless steel, or other alloy steel), and 
without regard to length or outer diameter. Also included are 
unfinished drill collars (including all drill collar green tubes) and 
unfinished drill pipe (including drill pipe green tubes, which are 
tubes meeting the following description: seamless tubes with an outer 
diameter of less than or equal to 6 5/8 inches (168.28 millimeters), 
containing between 0.16 and 0.75 percent molybdenum, and containing 
between 0.75 and 1.45 percent chromium). The scope does not include 
tool joints not attached to the drill pipe, nor does it include 
unfinished tubes for casing or tubing covered by any other antidumping 
or countervailing duty order.
    The subject products are currently classified in the following 
Harmonized Tariff Schedule of the United States (HTSUS) categories: 
7304.22.0030, 7304.22.0045, 7304.22.0060, 7304.23.3000, 7304.23.6030, 
7304.23.6045, 7304.23.6060, 8431.43.8040 and may also enter under 
8431.43.8060, 8431.43.4000, 7304.39.0028, 7304.39.0032, 7304.39.0036, 
7304.39.0040, 7304.39.0044, 7304.39.0048, 7304.39.0052, 7304.39.0056, 
7304.49.0015, 7304.49.0060, 7304.59.8020, 7304.59.8025, 7304.59.8030, 
7304.59.8035, 7304.59.8040, 7304.59.8045, 7304.59.8050, and 
7304.59.8055.
    The HTSUS subheadings are provided for convenience and customs 
purposes only. The written description of the scope of this order is 
dispositive.

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 
\1\ was published in the Federal Register, section 706(b)(2) of the Act 
is applicable.
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    \1\ See Drill Pipe From the People's Republic of China: 
Preliminary Affirmative Countervailing Duty Determination, 75 FR 
33245 (June 11, 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 drill pipe from the PRC. In accordance with section 706 of 
the Act, the Department will direct CBP to reinstitute suspension of 
liquidation,\2\ 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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    \2\ The Department instructed CBP to discontinue the suspension 
of liquidation on October 9, 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 drill pipe from the PRC made on or 
after October 9, 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 October 9, 2010, of the suspension of 
liquidation.

------------------------------------------------------------------------
                                                          Net subsidy ad
                    Producer/Exporter                      valorem rate
                                                             (percent)
------------------------------------------------------------------------
DP Master Manufacturing Co., Ltd. (DP Master), Jiangyin            18.18
 Sanliang Petroleum Machinery Co., Ltd. (SPM); Jiangyin
 Liangda Drill Pipe Co., Ltd. (Liangda); Jiangyin
 Sanliang Steel Pipe Trading Co., Ltd. (SSP), and
 Jiangyin Chuangxin Oil Pipe Fittings Co., Ltd.
 (Chuangxin) (collectively, DP Master Group)............
All Others..............................................           18.18
------------------------------------------------------------------------

Termination of the Suspension of Liquidation

    As a result of our affirmative critical circumstances finding on 
the DP Master Group and all other companies, CBP suspended liquidation 
and collected cash deposits or bonds on all entries by these companies 
made 90 days prior to our affirmative Preliminary Determination.
    The Department will instruct CBP to terminate the suspension of 
liquidation for entries of drill 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 drill pipe entered, or withdrawn from 
warehouse,

[[Page 11760]]

for consumption on or after March 13, 2010 (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 drill 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 and 19 CFR 351.211(b).

    Dated: February 25, 2011.
Paul Piquado,
Acting Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-4796 Filed 3-2-11; 8:45 am]
BILLING CODE 3510-DS-P