[Federal Register Volume 77, Number 204 (Monday, October 22, 2012)]
[Notices]
[Pages 64465-64468]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-25966]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-520-806]


Circular Welded Carbon-Quality Steel Pipe From the United Arab 
Emirates: Final Affirmative Countervailing Duty Determination

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

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

DATES: Effective October 22, 2012.

[[Page 64466]]


FOR FURTHER INFORMATION CONTACT: Joshua Morris or Dustin Ross, 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-
1779 or (202) 482-0747, 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\
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    \1\ See Circular Welded Carbon-Quality Steel Pipe From the 
United Arab Emirates: Preliminary Negative Countervailing Duty 
Determination and Alignment of Final Countervailing Duty 
Determination With Final Antidumping Duty Determination, 77 FR 19219 
(March 30, 2012) (``Preliminary Determination'').
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    The Department conducted verification of the Government of the 
UAE's (``GUAE''), Universal Tube and Plastic Industries, Ltd., KHK 
Scaffolding and Formwork LLC, and Universal Tube and Pipe Industries 
LLC (collectively ``Universal''), and Abu Dhabi Metal Pipes & Profiles 
Industries Complex LLC and Alita Trading DMCC's (collectively 
``ADPICO'') questionnaire responses from June 19, through June 28, 
2012, and issued verification reports on August 16 (GUAE), August 21 
(ADPICO), and August 22, 2012 (Universal).
    The GUAE, Universal, and Wheatland Tube submitted case briefs on 
August 30, 2012. ADPICO submitted a rebuttal brief on September 5, and 
the GUAE, Universal, and Wheatland Tube submitted rebuttal briefs on 
September 6, 2012.
    On September 20, 2012, the Department issued a post-preliminary 
analysis memorandum. See Memorandum to Paul Piquado, Assistant 
Secretary for Import Administration, ``Countervailing Duty 
Investigation of Circular Welded Carbon-Quality Steel Pipe From the 
United Arab Emirates: Post-Preliminary Analysis Memorandum,'' 
(September 20, 2012) (``Post-Prelim''). On September 26, 2012, the 
Department received affirmative briefs on the issues addressed in the 
Post-Prelim from the GUAE, Universal, and Wheatland Tube. On October 1, 
2012, the Department received an affirmative brief from ADPICO. On 
October 2, 2012, the Department received rebuttal briefs from ADPICO, 
the GUAE, Universal, and Wheatland Tube.

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 See 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.
    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

[[Page 64467]]

from the scope based solely on their being certified to ASTM mechanical 
tubing specifications:

    \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.
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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 Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised by 
parties to this investigation in the case and rebuttal briefs, as well 
as the Post-Prelim related case and rebuttal briefs, 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 United Arab Emirates'' (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 versions of the 
Decision Memorandum are identical in content.

Use of Adverse Facts Available

    For purposes of this final determination, we have relied in part on 
facts available and have drawn an adverse inference with respect to the 
facts available, in accordance with sections 776(a) and (b) of the the 
Tariff Act of 1930, as amended (``the Act''), to determine the subsidy 
rates for one of the mandatory respondents. For a full discussion of 
these issues, see the Decision Memorandum, at ``Use of Facts Otherwise 
Available and Adverse Inferences.''

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we have 
calculated an individual countervailable subsidy rate for each 
respondent. Section 705(c)(5)(A)(i) of the Act states that for 
companies not individually investigated, we will determine an all-
others rate equal to the weighted average of the countervailable 
subsidy rates established for exporters and producers individually 
investigated, excluding any zero and de minimis countervailable subsidy 
rates, and any rates based entirely on adverse facts available under 
section 776 of the Act. Notwithstanding the language of section 
705(c)(5)(A)(i) of the Act, we have not calculated the ``all-others'' 
rate by weight averaging the rates of ADPICO and Universal, because 
doing so risks disclosure of proprietary information. Therefore, for 
the all-others rate, we have calculated a simple average of the two 
responding firms' rates.
    On this basis, we determine the total net countervailable subsidy 
rates to be:

------------------------------------------------------------------------
                                                             Net subsidy
                   Exporter/manufacturer                         rate
                                                              (percent)
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Abu Dhabi Metal Pipes & Profiles Industries Complex LLC;            6.17
 Alita Trading DMCC........................................
Universal Tube and Plastic Industries, Ltd.; KHK                    2.06
 Scaffolding and Formwork LLC; Universal Tube and Pipe
 Industries LLC............................................
All-Others.................................................         4.12
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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 the UAE 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

[[Page 64468]]

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

A. Tariff Exemptions on Imported Equipment, Machinery, Materials, 
and Packaging Materials Under the Federal Law of 1979 and/or GCC 
Industrial Law

Comment 1 De Jure Specificity of Tariff Exemptions
Comment 2 Tariff Exemptions as Export Subsidies
Comment 3 Application of AFA Due To the GUAE's Failure to Provide 
Industry Usage Data
Comment 4 Countervailability of Alita's Tariff Exemptions

B. Subsidies Within the Jebel Ali Free Zone

Comment 5 Scope of the Tariff Exemptions Program: UAE Customs 
Territory and the JAFZ
Comment 6 Regional Specificity of Tariff Exemptions in the JAFZ
Comment 7 Application of Facts Available to Universal Plastic Due to 
Non-Cooperation Regarding Subsidies in the JAFZ

C. The GUAE's Provision of Natural Gas for LTAR

Comment 8 Scope of the Investigation of the GUAE's Provision of 
Natural Gas for LTAR
Comment 9 Whether the Department Should Delay its Finding or Apply 
AFA Due to Non-Cooperation for the Provision of Natural Gas for LTAR

D. Other Programs

Comment 10 Non-Existence of Alleged Programs Under the Federal Law 
of 1979 and/or the GCC Industrial Law

[FR Doc. 2012-25966 Filed 10-19-12; 8:45 am]
BILLING CODE 3510-DS-P