[Federal Register Volume 79, Number 138 (Friday, July 18, 2014)]
[Notices]
[Pages 41964-41966]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-16860]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-489-817]


Certain Oil Country Tubular Goods From the Republic of Turkey: 
Final Affirmative Countervailing Duty Determination and Final 
Affirmative Critical Circumstances Determination

AGENCY: Enforcement and Compliance, 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 certain oil country tubular goods (OCTG) from the Republic of Turkey 
(Turkey). For information on the estimated subsidy rates, see the 
``Suspension of Liquidation'' section of this notice.

DATES: Effective Date: July 18, 2014.

FOR FURTHER INFORMATION CONTACT: Jennifer Meek or Shane Subler, AD/CVD 
Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
2778, and (202) 482-0189, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The petitioners in this investigation are Maverick Tube 
Corporation; United States Steel Corporation; Boomerang Tube; Energex 
Tube, a division of JMC Steel Group; Northwest Pipe Company; Tejas 
Tubular Products; TMK IPSCO; Vallourec Star, L.P.; and Welded Tube USA 
Inc. In addition to the Government of the Republic of Turkey (GOT), the 
mandatory respondents in this investigation are: (1) Borusan Mannesmann 
Boru Sanayi ve Ticaret A.S., Borusan Istikbal Ticaret, Borusan 
Mannesmann Boru Yatirim Holding A.S., and Borusan Holding A.S. 
(collectively, Borusan); and (2) Tos[ccedil]elik Profil ve Sac 
Endustrisi A.S., Tosyali Dis Ticaret A.S., Tosyali Elektrik Enerjisi 
Toptan Satis Ith. Ihr. A.S., Tosyali Holding A.S., and Tosyali Demir 
Celik San. A.S. (collectively, Toscelik). The period of investigation 
(POI) for which we are measuring subsidies is January 1, 2012, through 
December 31, 2012.

Case History

    The events that occurred since the Department published the 
Preliminary Determination \1\ on December 23, 2013, and the Preliminary 
Determination of Critical Circumstances \2\ on January 27, 2014, are 
discussed in the Issues and Decision Memorandum.\3\ The Issues and 
Decision Memorandum is a public document and is on file electronically 
via Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (IA ACCESS). IA ACCESS is 
available to registered users at http://iaaccess.trade.gov, and is 
available to all parties in the Central Records Unit, room 7046 of the 
main Department of Commerce building. In addition, a complete version 
of the Issues and Decision Memorandum can be accessed directly at 
http://enforcement.trade.gov/frn/. The signed Issues and Decision 
Memorandum and the electronic versions of the Issues and Decision 
Memorandum are identical in content.
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    \1\ See Certain Oil Country Tubular Goods From the Republic of 
Turkey: Preliminary Negative Countervailing Duty Determination and 
Alignment of Final Determination with Final Antidumping 
Determination, 78 FR 77420 (December 23, 2013) (Preliminary 
Determination).
    \2\ See Certain Oil Country Tubular Goods from India and Turkey: 
Preliminary Determination of Critical Circumstances in the 
Countervailing Duty Investigations, 79 FR 4333 (January 27, 2014) 
(Preliminary Determination of Critical Circumstances).
    \3\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and 
Compliance, regarding ``Issues and Decision Memorandum for the Final 
Determination in the Countervailing Duty Investigation of Certain 
Oil Country Tubular Goods from the Republic of Turkey,'' dated 
concurrently with this notice (Issues and Decision Memorandum).
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Scope Comments

    In accordance with the preamble to the Department's regulations,\4\ 
in the Initiation Notice,\5\ we set aside a period of time for parties 
to raise issues regarding product coverage. We encouraged all parties 
to submit comments within 20 calendar days of publication of the 
Initiation Notice. As described at pages 3-4 of the decision memorandum 
accompanying the Preliminary Determination, on August 12, 2013, WSP 
Pipe Co., Ltd. (WSP) (the sole mandatory respondent in the concurrent 
antidumping duty investigation involving OCTG from Thailand) submitted 
scope comments to the Department regarding ``pierced billets.'' WSP 
asked the Department to determine that such merchandise was

[[Page 41965]]

outside of the scope of this and the other OCTG investigations. The 
Department addressed WSP's scope comments in the preliminary 
determination of the corresponding antidumping duty investigation to 
this case.\6\ As stated in the decision memorandum accompanying the AD 
Preliminary Determination, we preliminarily determined not to change 
the scope language as presented in the Initiation Notice. No party 
submitted comments on this issue subsequent to the AD Preliminary 
Determination. Therefore, we determined not to change the scope 
language as presented below and in the Initiation Notice.
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    \4\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \5\ See Certain Oil Country Tubular Goods From India and Turkey: 
Initiation of Countervailing Duty Investigations, 78 FR 45502 (July 
29, 2013) (Initiation Notice).
    \6\ See Certain Oil Country Tubular Goods From the Republic of 
Turkey: Preliminary Affirmative Determination of Sales at Less Than 
Fair Value, Negative Preliminary Determination of Critical 
Circumstances, and Postponement of Final Determination, 79 FR 10484 
(February 25, 2014) (``AD Preliminary Determination''), and 
accompanying decision memorandum at pages 5-7.
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Scope of the Investigation

    The merchandise covered by the investigation is certain oil country 
tubular goods (OCTG), which are hollow steel products of circular 
cross-section, including oil well casing and tubing, of iron (other 
than cast iron) or steel (both carbon and alloy), whether seamless or 
welded, regardless of end finish (e.g., whether or not plain end, 
threaded, or threaded and coupled) whether or not conforming to 
American Petroleum Institute (API) or non-API specifications, whether 
finished (including limited service OCTG products) or unfinished 
(including green tubes and limited service OCTG products), whether or 
not thread protectors are attached. The scope of the investigation also 
covers OCTG coupling stock. For a complete description of the scope of 
the investigation, see Appendix I to this notice.

Critical Circumstances

    In the Preliminary Determination of Critical Circumstances, the 
Department concluded that critical circumstances existed with respect 
to imports of OCTG from Turkey produced and/or exported by Borusan, 
Toscelik, and all other producers/exporters, in accordance with section 
703(e)(1) of the Tariff Act of 1930, as amended (the Act). Our analysis 
of the results of verification and the comments submitted by interested 
parties has not led us to change our findings from the Preliminary 
Determination of Critical Circumstances. Therefore, in accordance with 
section 705(a)(2) of the Act, we continue to find that critical 
circumstances exist with respect to imports of OCTG from Turkey 
produced and/or exported by Borusan, Toscelik, and all other producers/
exporters.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum, which is hereby 
adopted by this notice. A list of the issues that parties have raised, 
and to which we responded in the Issues and Decision Memorandum, is 
attached to this notice as Appendix II.

Use of Adverse Facts Available

    For purposes of this final determination, we continue to rely on 
facts available and to draw an adverse inference, in accordance with 
sections 776(a) and (b) of the Act, to determine the subsidy rate for 
Borusan's purchases of hot-rolled steel (HRS) for less than adequate 
remuneration. Borusan failed to report its HRS purchases for the 
Halkali and Izmit mills as requested by the Department in two different 
questionnaires. Because of Borusan's failure to report these purchases, 
necessary information regarding Borusan's HRS purchases for these 
facilities is not on the record. Thus, we determine that we must rely 
on facts otherwise available in this final determination in calculating 
Borusan's CVD rate.\7\ Moreover, we find that Borusan failed to 
cooperate by not acting to the best of its ability and, consequently, 
an adverse inference is warranted in the application of facts 
available.\8\ As adverse facts available, we, therefore, inferred that 
Borusan purchased all HRS for its Halkali and Izmit mills at the lowest 
price on the record for its Gemlik mill's HRS purchases from Eregli 
Demir ve Celik Fabrikalari T.A.S. (Erdemir) and Iskenderun Demir ve 
Celik A.S. (Isdemir). We also inferred as adverse facts available that 
Borusan purchased the same quantity of HRS during the POI for its 
Halkali and Izmit mills as the mills' reported annual production 
capacities. For a full discussion of these issues, see the Issues and 
Decision Memorandum, at ``Use of Facts Otherwise Available and Adverse 
Facts Available.''
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    \7\ See sections 776(a)(1), (a)(2)(A) and (a)(2)(B) of the Act 
(stating that the Department may make a determination based on facts 
available if ``(1) necessary information is not available on the 
record'' or ``(2) an interested party'' ``(A) withholds information 
that has been requested'' by the Department or ``(B) fails to 
provide such information by the deadline for the submission of the 
information'').
    \8\ See section 776(b) of the Act (permitting the Department to 
``use an inference that is adverse to the interests of the party in 
selecting from among the facts otherwise available'').
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Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated a rate for each company 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 
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.
    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 Borusan and Toscelik because doing so risks disclosure of 
proprietary information. Therefore, we calculated a simple average of 
Borusan's and Toscelik's rates. Since both Borusan and Toscelik 
received countervailable export subsidies and the ``all others'' rate 
is an average based on the individually investigated respondents, the 
``all others'' rate includes export subsidies.
    We determine the total estimated net countervailable subsidy rates 
to be:

------------------------------------------------------------------------
                                                          Subsidy rate
                       Company                             (percent)
------------------------------------------------------------------------
Borusan Istikbal Ticaret, Borusan Mannesmann Boru                 15.89.
 Sanayi, Borusan Mannesmann Boru Yatirim Holding
 A.S., and Borusan Holding A.S.......................
Tosyali Dis Ticaret A.S, Tos[ccedil]elik Profil ve                 2.53.
 Sac Endustrisi A.S., Tosyali Elektrik Enerjisi
 Toptan Satis Ith. Ihr. A.S., Tosyali Demir Celik
 San. A.S., and Tosyali Holding A.S..................
All Others...........................................              9.21.
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[[Page 41966]]

    In accordance with section 705(c)(1)(C) of the Act, we are 
directing U.S. Customs and Border Protection (CBP) to suspend 
liquidation of all imports of the subject merchandise from Turkey that 
are entered, or withdrawn from warehouse, for consumption on or after 
the date of publication of this notice in the Federal Register, and to 
require a cash deposit for such entries of merchandise in the amounts 
indicated above. The suspension of liquidation will remain in effect 
until further notice. Further, as a result of the Preliminary 
Determination of Critical Circumstances and this final affirmative 
determination of critical circumstances, we are instructing CBP to 
suspend liquidation of all entries of subject merchandise from Borusan, 
Toscelik, and all other producers/exporters of OCTG from Turkey which 
were entered or withdrawn from warehouse for consumption 90 days prior 
to the date of publication of this notice in the Federal Register, 
pursuant to section 703(e)(2) of the Act.
    As our final determination is affirmative and our preliminary 
determination was negative, in accordance with section 705(b)(3) of the 
Act, the U.S. International Trade Commission (ITC) will determine 
within 75 days whether the domestic industry in the United States is 
materially injured, or threatened with material injury, by reason of 
imports or sales (or the likelihood of sales) for importation of the 
subject merchandise. We will issue a countervailing duty order if the 
ITC issues a final affirmative injury determination. If the ITC 
determines that material injury, or threat of material injury, does not 
exist, this proceeding will be terminated and all estimated duties 
deposited 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 Enforcement and Compliance.

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 issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: July 10, 2014.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by the investigation is certain oil 
country tubular goods (``OCTG''), which are hollow steel products of 
circular cross-section, including oil well casing and tubing, of 
iron (other than cast iron) or steel (both carbon and alloy), 
whether seamless or welded, regardless of end finish (e.g., whether 
or not plain end, threaded, or threaded and coupled) whether or not 
conforming to American Petroleum Institute (``API'') or non-API 
specifications, whether finished (including limited service OCTG 
products) or unfinished (including green tubes and limited service 
OCTG products), whether or not thread protectors are attached. The 
scope of the investigation also covers OCTG coupling stock.
    Excluded from the scope of the investigation are: casing or 
tubing containing 10.5 percent or more by weight of chromium; drill 
pipe; unattached couplings; and unattached thread protectors.
    The merchandise subject to the investigation is currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under item numbers: 7304.29.10.10, 7304.29.10.20, 
7304.29.10.30, 7304.29.10.40, 7304.29.10.50, 7304.29.10.60, 
7304.29.10.80, 7304.29.20.10, 7304.29.20.20, 7304.29.20.30, 
7304.29.20.40, 7304.29.20.50, 7304.29.20.60, 7304.29.20.80, 
7304.29.31.10, 7304.29.31.20, 7304.29.31.30, 7304.29.31.40, 
7304.29.31.50, 7304.29.31.60, 7304.29.31.80, 7304.29.41.10, 
7304.29.41.20, 7304.29.41.30, 7304.29.41.40, 7304.29.41.50, 
7304.29.41.60, 7304.29.41.80, 7304.29.50.15, 7304.29.50.30, 
7304.29.50.45, 7304.29.50.60, 7304.29.50.75, 7304.29.61.15, 
7304.29.61.30, 7304.29.61.45, 7304.29.61.60, 7304.29.61.75, 
7305.20.20.00, 7305.20.40.00, 7305.20.60.00, 7305.20.80.00, 
7306.29.10.30, 7306.29.10.90, 7306.29.20.00, 7306.29.31.00, 
7306.29.41.00, 7306.29.60.10, 7306.29.60.50, 7306.29.81.10, and 
7306.29.81.50.
    The merchandise subject to the investigation may also enter 
under the following HTSUS item numbers: 7304.39.00.24, 
7304.39.00.28, 7304.39.00.32, 7304.39.00.36, 7304.39.00.40, 
7304.39.00.44, 7304.39.00.48, 7304.39.00.52, 7304.39.00.56, 
7304.39.00.62, 7304.39.00.68, 7304.39.00.72, 7304.39.00.76, 
7304.39.00.80, 7304.59.60.00, 7304.59.80.15, 7304.59.80.20, 
7304.59.80.25, 7304.59.80.30, 7304.59.80.35, 7304.59.80.40, 
7304.59.80.45, 7304.59.80.50, 7304.59.80.55, 7304.59.80.60, 
7304.59.80.65, 7304.59.80.70, 7304.59.80.80, 7305.31.40.00, 
7305.31.60.90, 7306.30.50.55, 7306.30.50.90, 7306.50.50.50, and 
7306.50.50.70.
    The HTSUS subheadings above are provided for convenience and 
customs purposes only. The written description of the scope of the 
investigation is dispositive.

Appendix II

Issues and Decision Memorandum

I. Summary
II. Background
III. Critical Circumstances
IV. Subsidies Valuation Information
    a. Period of Investigation
    b. Allocation Period
    c. Attribution of Subsidies
V. Benchmark Interest Rates
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Analysis of Programs
    a. Programs Found To Be Countervailable
    b. Programs Found Not To Be Countervailable
    c. Programs Found Not To Be Used
VIII. Analysis of Comments
Comment 1: Treatment of Erdemir and Isdemir as Government 
Authorities
Comment 2: Distortion of Turkish HRS Market and Use of External 
Benchmark
Comment 3: The Department's World Market Price Benchmark
Comment 4: Averaging of Benchmark Prices for HRS
Comment 5: Specificity of HRS Program
Comment 6: Application of AFA to Borusan's HRS Purchases
Comment 7: The Department's Adverse Inference for Purchases by 
Borusan's Halkali and Izmit Mills
Comment 8: Purchases of OCTG-Qualified HRS
Comment 9: Verification of the HRS for LTAR Program at the GOT
Comment 10: Toscelik Sales Denominator
Comment 11: Provision of Land for LTAR
Comment 12: Provision of Electricity for LTAR/Law 5084: Energy 
Support Program
Comment 13: Export Financing Loans: Subtraction of Bank Guarantee 
Fees From Benefit
Comment 14: Specificity and Countervailability of the Investment 
Incentive Certificate Program
Comment 15: Basis for Affirmative Critical Circumstances 
Determination
Comment 16: Whether To Issue an Amended Preliminary Determination

[FR Doc. 2014-16860 Filed 7-17-14; 8:45 am]
BILLING CODE 3510-DS-P