[Federal Register Volume 77, Number 204 (Monday, October 22, 2012)]
[Notices]
[Pages 64471-64473]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-25956]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-552-810]


Circular Welded Carbon-Quality Steel Pipe From the Socialist 
Republic of Vietnam: Final Negative Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (``the Department'') determines 
that countervailable subsidies are not being provided to producers and 
exporters of circular welded carbon-quality steel pipe (``circular 
welded pipe'') from the Socialist Republic of Vietnam (``Vietnam'').

DATES: Effective Date: October 22, 2012.

FOR FURTHER INFORMATION CONTACT: Christopher Siepmann or Austin 
Redington, 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) 482-7958 or (202) 482-1664, respectively.

Petitioners

    The petitioners in this investigation are Allied Tube and Conduit, 
JMC Steel Group, United States Steel Corporation, and 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\
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    \1\ See Circular Welded Carbon-Quality Steel Pipe from the 
Socialist Republic of Vietnam: Preliminary Affirmative 
Countervailing Duty Determination and Alignment of Final 
Countervailing Duty Determination With Final Antidumping Duty 
Determination, 77 FR 19211 (March 30, 2012) (``Preliminary 
Determination'').
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    On April 13, 2012, the Department issued supplemental 
questionnaires to the Government of Vietnam (``GOV''), SeAH Steel VINA 
Corp. (``SeAH VINA''), and Vietnam Haiphong Hongyuan Machinery 
Manufactory Co., Ltd. (``Hongyuan''). Timely responses were received on 
April 20 (Hongyuan), April 27 (Hongyuan), and April 27, and May 7, 2012 
(GOV). On May 4, 2012, the Department issued an additional supplemental 
questionnaire to the GOV, and it received the GOV's response on May 7, 
2012.
    We received factual information submissions from the GOV and 
Wheatland Tube, respectively, on May 9 and May 14, 2012. On May 10, 
2012, Hongyuan filed corrections to its previously reported data and 
also submitted additional factual information. On May 14, 2012, SeAH 
VINA submitted corrections to its previously reported data.
    The Department conducted verification of SeAH VINA's, Hongyuan's, 
and the GOV's questionnaire responses from May 21, to June 1, 2012, and 
issued verification reports for SeAH VINA and Hongyuan on July 6, 2012, 
and for the GOV on July 12, 2012.
    The GOV, SeAH VINA, Hongyuan, and Wheatland Tube submitted case 
briefs on August 3, and rebuttal briefs on August 8, 2012. A public 
hearing was held on September 7, 2012.

Scope Comments

    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 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).
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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.

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 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.

[[Page 64472]]

    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 Socialist Republic of 
Vietnam'' (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. The 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 versions of the Decision 
Memorandum are identical in content.

Suspension of Liquidation

    For this final determination, we have determined that neither of 
the producers/exporters of the subject merchandise individually 
investigated received countervailable subsidies. Therefore, we 
determine that countervailable subsidies are not being provided to 
producers or exporters in Vietnam of circular welded pipe.
    Because we have reached a final negative determination we are 
terminating this investigation. Moreover, in accordance with section 
705(c)(2) of the Tariff Act of 1930, as amended (``Act''), we will 
instruct U.S. Customs and Border Protection (``CBP'') to release any 
bond or other security and refund any cash deposits that were collected 
for shipments of subject merchandise entered, or withdrawn from 
warehouse on or after March 30, 2012, the date that we instructed CBP 
to suspend liquidation following the Preliminary Determination. The 
interest provisions of section 778 of the Act do not apply.

International Trade Commission (``ITC'') Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination.

Return or Destruction of Proprietary Information

    This notice serves as the only reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Failure to 
comply is a violation of the APO.

[[Page 64473]]

    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

General Issues

Comment 1 Applicability of the CVD Law to the Socialist Republic of 
Vietnam
Comment 2 The Appropriate De Minimis Standard

Import Duty Exemptions on Imported Raw Materials for Export 
Processing Enterprises and Export Processing Zones

Comment 3 Countervailability of Import Duty Exemptions for Export 
Processing Enterprises and Companies in Export Processing Zones
Comment 4 The GOV's System for Monitoring the Inputs Used To Produce 
Exported Goods

Import Duty Exemptions for Imported Fixed Assets, Spare Parts and 
Accessories for Export Processing Enterprises and Export Processing 
Zones

Comment 5 Whether Hongyuan's Failure to Report Imports of Spare 
Parts and Accessories Warrants Use of AFA

Import Duty Exemptions for Imported Fixed Assets, Spare Parts and 
Accessories for Encouraged Projects

Comment 6 SeAH VINA's Failure to Report Some Imports
Comment 7 Whether SeAH VINA Received Countervailable Duty Exemptions 
on its Purchases of Fixed Assets, Spare Parts and Accessories

Policy Loans

Comment 8 Preferential Financing to the Steel Industry
Comment 9 Preferential Lending for Exporters
Comment 10 Whether the Banks That Provided Loans to Hongyuan and 
SeAH VINA Are Public Entities
Comment 11 The Appropriate Benchmark for Policy Loans

Provision of Land for Less Than Adequate Remuneration (``LTAR'') in 
Encouraged Industries or Industrial Zones

Comment 12 SeAH VINA's Land

[FR Doc. 2012-25956 Filed 10-19-12; 8:45 am]
BILLING CODE 3510-DS-P