[Federal Register Volume 77, Number 204 (Monday, October 22, 2012)]
[Notices]
[Pages 64473-64475]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-25949]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-523-802]


Circular Welded Carbon-Quality Steel Pipe From the Sultanate of 
Oman: Final Affirmative Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (``Department'') determines that 
countervailable subsidies are being provided to producers and exporters 
of circular welded carbon-quality steel pipe (``circular welded pipe'') 
from the Sultanate of Oman (``Oman'').

DATES: Effective Date: October 22, 2012.

FOR FURTHER INFORMATION CONTACT: Sergio Balbontin 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-
6478 or (202) 482-0189, respectively.

Petitioners

    The petitioners in this investigation are Allied Tube and Conduit, 
JMC Steel Group, United States Steel Corporation, and Wheatland Tube 
Corporation (``Wheatland Tube'').

Period of Investigation

    The period for which we are measuring subsidies, or period of 
investigation, is January 1, 2010, through December 31, 2010.

Case History

    The following events have occurred since the Preliminary 
Determination.\1\ On April 5, 2012, a supplemental questionnaire was 
sent to Al Jazeera Steel Products Co. SAOG (``Al Jazeera'') and we 
received Al Jazeera's response on April 12, 2012. We sent supplemental 
questionnaires to the Government of the Sultanate of Oman (``GSO'') on 
April 5, April 20, and May 10, 2012. We received the GSO's responses, 
respectively, on April 12, April 27, and May 17, 2012.
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    \1\ See Circular Welded Carbon-Quality Steel Pipe from the 
Sultanate of Oman: Preliminary Negative Countervailing Duty 
Determination and Alignment of Final Countervailing Duty 
Determination With Final Antidumping Duty Determination, 77 FR 19635 
(April 2, 2012) (``Preliminary Determination'').
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    We received comments from Wheatland Tube addressing the GSO's 
submission on April 6, April 19, April 27, May 10, May 25, 2012 and a 
request for hearing on April 30, 2012. Wheatland Tube also submitted 
factual information/pre-verification comments on June 1, 2012.
    The Department conducted verification of Al Jazeera's and the GSO's 
questionnaire responses from June 11 to June 15, 2012. We issued our 
verification reports on August 21 (Al Jazeera) and August 23, 2012 
(GSO).
    The GSO and Al Jazeera, and Wheatland Tube submitted case and 
rebuttal briefs on September 5, and September 10, 2012, respectively. A 
public hearing was held on September 14, 2012.

Scope Comments

    In accordance with the preamble to the Department's regulations, we 
set aside a period of time in our Initiation Notice for parties to 
raise issues regarding product coverage, and encouraged all parties to 
submit comments within 20 calendar days of publication of that 
notice.\2\ As described in the Preliminary Determination, SeAH Steel 
VINA Corp. (``SeAH VINA'') filed comments on December 5, 2011, urging 
the Department to modify the scope description. No further comments on 
this issue were received.
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    \2\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997) and Circular Welded Carbon-Quality Steel Pipe 
from India, the Sultanate of Oman, the United Arab Emirates, and the 
Socialist Republic of Vietnam: Initiation of Countervailing Duty 
Investigations, 76 FR 72173 (November 22, 2011) (``Initiation 
Notice'').
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    For the reasons explained in the Preliminary Determination, the 
Department is not adopting SeAH VINA's proposed modification of the 
scope in its final determination.

Scope of the Investigation

    This investigation covers welded carbon-quality steel pipes and 
tube, of circular cross-section, with an outside diameter (``O.D.'') 
not more than 16 inches (406.4 mm), regardless of wall thickness, 
surface finish (e.g., black, galvanized, or painted), end finish (plain 
end, beveled end, grooved, threaded, or threaded and coupled), or 
industry specification (e.g., American Society for Testing and 
Materials International (``ASTM''), proprietary, or other) generally 
known as standard pipe, fence pipe and tube, sprinkler pipe, and 
structural pipe (although subject product may also be referred to as 
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

[[Page 64474]]

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;
(xiv) 0.15 percent of zirconium.

    Subject pipe is ordinarily made to ASTM specifications A53, A135, 
and A795, but can also be made to other specifications. Structural pipe 
is made primarily to ASTM specifications A252 and A500. Standard and 
structural pipe may also be produced to proprietary specifications 
rather than to industry specifications. Fence tubing is included in the 
scope regardless of certification to a specification listed in the 
exclusions below, and can also be made to the ASTM A513 specification. 
Sprinkler pipe is designed for sprinkler fire suppression systems and 
may be made to industry specifications such as ASTM A53 or to 
proprietary specifications. These products are generally made to 
standard O.D. and wall thickness combinations. Pipe multi-stenciled to 
a standard and/or structural specification and to other specifications, 
such as 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 (50mm) in outside diameter; has a galvanized and/or painted 
(e.g., polyester coated) surface finish; or has a threaded and/or 
coupled end finish.
    The scope of this investigation does not include: (a) Pipe suitable 
for use in boilers, superheaters, heat exchangers, refining furnaces 
and feedwater heaters, whether or not cold drawn; (b) finished 
electrical conduit; (c) finished scaffolding; \3\ (d) tube and pipe 
hollows for redrawing; (e) oil country tubular goods produced to API 
specifications; (f) line pipe produced to only API specifications; and 
(g) mechanical tubing, whether or not cold-drawn. However, products 
certified to ASTM mechanical tubing specifications are not excluded as 
mechanical tubing if they otherwise meet the standard sizes (e.g., 
outside diameter and wall thickness) of standard, structural, fence and 
sprinkler pipe. Also, products made to the following outside diameter 
and wall thickness combinations, which are recognized by the industry 
as typical for fence tubing, would not be excluded from the scope based 
solely on their being certified to ASTM mechanical tubing 
specifications:
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    \3\ Finished scaffolding is defined as component parts of a 
final, finished scaffolding that enters the United States 
unassembled as a ``kit.'' A ``kit'' is understood to mean a packaged 
combination of component parts that contain, at the time of 
importation, all the necessary component parts to fully assemble a 
final, finished scaffolding.

1.315 inch O.D. and 0.035 inch wall thickness (gage 20)
1.315 inch O.D. and 0.047 inch wall thickness (gage 18)
1.315 inch O.D. and 0.055 inch wall thickness (gage 17)
1.315 inch O.D. and 0.065 inch wall thickness (gage 16)
1.315 inch O.D. and 0.072 inch wall thickness (gage 15)
1.315 inch O.D. and 0.083 inch wall thickness (gage 14)
1.315 inch O.D. and 0.095 inch wall thickness (gage 13)
1.660 inch O.D. and 0.047 inch wall thickness (gage 18)
1.660 inch O.D. and 0.055 inch wall thickness (gage 17)
1.660 inch O.D. and 0.065 inch wall thickness (gage 16)
1.660 inch O.D. and 0.072 inch wall thickness (gage 15)
1.660 inch O.D. and 0.083 inch wall thickness (gage 14)
1.660 inch O.D. and 0.095 inch wall thickness (gage 13)
1.660 inch O.D. and 0.109 inch wall thickness (gage 12)
1.900 inch O.D. and 0.047 inch wall thickness (gage 18)
1.900 inch O.D. and 0.055 inch wall thickness (gage 17)
1.900 inch O.D. and 0.065 inch wall thickness (gage 16)
1.900 inch O.D. and 0.072 inch wall thickness (gage 15)
1.900 inch O.D. and 0.095 inch wall thickness (gage 13)
1.900 inch O.D. and 0.109 inch wall thickness (gage 12)
2.375 inch O.D. and 0.047 inch wall thickness (gage 18)
2.375 inch O.D. and 0.055 inch wall thickness (gage 17)
2.375 inch O.D. and 0.065 inch wall thickness (gage 16)
2.375 inch O.D. and 0.072 inch wall thickness (gage 15)
2.375 inch O.D. and 0.095 inch wall thickness (gage 13)
2.375 inch O.D. and 0.109 inch wall thickness (gage 12)
2.375 inch O.D. and 0.120 inch wall thickness (gage 11)
2.875 inch O.D. and 0.109 inch wall thickness (gage 12)
2.875 inch O.D. and 0.134 inch wall thickness (gage 10)
2.875 inch O.D. and 0.165 inch wall thickness (gage 8)
3.500 inch O.D. and 0.109 inch wall thickness (gage 12)
3.500 inch O.D. and 0.148 inch wall thickness (gage 9)
3.500 inch O.D. and 0.165 inch wall thickness (gage 8)
4.000 inch O.D. and 0.148 inch wall thickness (gage 9)
4.000 inch O.D. and 0.165 inch wall thickness (gage 8)
4.500 inch O.D. and 0.203 inch wall thickness (gage 7)

    The pipe subject to this investigation is currently classifiable in 
Harmonized Tariff Schedule of the United States (``HTSUS'') statistical 
reporting numbers 7306.19.1010, 7306.19.1050, 7306.19.5110, 
7306.19.5150, 7306.30.1000, 7306.30.5025, 7306.30.5032, 7306.30.5040, 
7306.30.5055, 7306.30.5085, 7306.30.5090, 7306.50.1000, 7306.50.5050, 
and 7306.50.5070. Although the HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the 
merchandise under the investigation is dispositive.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the Memorandum from Christian 
Marsh, Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations, to Paul Piquado, Assistant Secretary for Import 
Administration, entitled ``Issues and Decision Memorandum for the Final 
Determination in the Countervailing Duty Investigation of Circular 
Welded Carbon-Quality Steel Pipe from the Sultanate of Oman'' (October 
15, 2012) (hereafter, ``Decision Memorandum''), which is hereby adopted 
by this notice. Attached to this notice as an Appendix is a list of the 
issues that parties have raised and to which we have responded in the 
Decision Memorandum. This Decision Memorandum is a public document and 
is on file electronically via Import Administration's Antidumping and 
Countervailing Duty Centralized Electronic Service System (``IA 
ACCESS''). IA ACCESS is available to registered users at http://iaaccess.trade.gov and in the Central Records Unit, room 7046 of the 
main Department of Commerce building. In addition, a complete version 
of the Decision Memorandum can be accessed directly on the Internet at 
http://www.trade.gov/ia/. The signed Decision Memorandum and the 
electronic

[[Page 64475]]

versions of the Decision Memorandum are identical in content.

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i)(I) of the Tariff Act of 
1930, as amended (the ``Act''), we calculated an individual rate for Al 
Jazeera, the only producer/exporter individually investigated in this 
proceeding. Section 705(c)(5)(A)(i) of the Act states that for 
companies not investigated, we will determine an ``all-others'' rate 
equal to the weighted average countervailable subsidy rates established 
for exporters and producers individually investigated, excluding any 
zero and de minimis countervailable subsidy rates, and any rates 
determined entirely under section 776 of the Act. The rate calculated 
for Al Jazeera, which is neither zero, de minimis, nor determined 
entirely under section 776 of the Act, is being assigned to ``all-
others.''
    We determine the total net countervailable subsidy rates to be:

------------------------------------------------------------------------
                                                             Net subsidy
                   Exporter/manufacturer                         rate
                                                              (percent)
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Al Jazeera Steel Products Co. SAOG.........................         4.13
All Others.................................................         4.13
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    In accordance with section 705(c)(1)(C) of the Act, we are 
directing U.S. Customs and Border Protection to suspend liquidation of 
all entries of circular welded pipe from Oman that are entered, or 
withdrawn from warehouse, for consumption on or after the date of the 
publication of this notice in the Federal Register, and to require a 
cash deposit or bond for such entries of merchandise in the amounts 
indicated above.
    If the United States International Trade Commission (``ITC'') 
issues a final affirmative injury determination, we will issue a 
countervailing duty order pursuant to section 706(a) of the Act. If the 
ITC determines that material injury, or threat of material injury, does 
not exist, this proceeding will be terminated and all estimated 
deposits or securities posted as a result of the suspension of 
liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (``APO''), without the written 
consent of the Assistant Secretary for Import Administration.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation which is subject to sanction.
    This determination is published pursuant to sections 705(d) and 
777(i) of the Act.

    Dated: October 15, 2012.
Paul Piquado,
Assistant Secretary for Import Administration.

Appendix

List of Comments and Issues in the Decision Memorandum

Tariff Exemptions on Imported Equipment, Machinery, Materials and 
Packaging Materials

    Comment 1 Whether the program is specific because it provides 
prohibited export subsidies.
    Comment 2 Whether the program is de jure specific because its 
use is limited to non-oil industrial activity.
    Comment 3 Whether the Department should find the tariff 
exemptions specific on the basis of adverse facts available (AFA).

Sohar Industrial Estates

    Comment 4 Whether the GSO's subsidization of the Sohar 
Industrial Estate (SIE) is regionally specific.
    Comment 5 Whether the GSO failed to provide its economic plans 
thus warranting the application of AFA for the GSO's subsidization 
of the SIE.
    Comment 6 Whether the GSO's provision of natural gas in the SIE 
is specific.
    Comment 7 Whether the GSO impeded the investigation and did not 
act to the best of its ability with respect to its provision of 
water in Sohar.
    Comment 8 Whether the GSO's provision of land confers a benefit.
    Comment 9 Whether the GSO's provision of electricity confers a 
benefit.

Soft Loans for Industrial Projects Under RD 17/97

    Comment 10 Whether the loans provided under the RD 17/97 are 
specific.

[FR Doc. 2012-25949 Filed 10-19-12; 8:45 am]
BILLING CODE 3510-DS-P