[Federal Register Volume 81, Number 40 (Tuesday, March 1, 2016)]
[Notices]
[Pages 10583-10585]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-04512]



[[Page 10583]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[(A-489-824)]


Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From 
the Republic of Turkey: Preliminary Determination of Sales at Less Than 
Fair Value and Postponement of Final Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Department) preliminarily 
determines that heavy walled rectangular welded carbon steel pipes and 
tubes (HWR pipes and tubes) from the Republic of Turkey (Turkey) are 
being, or are likely to be, sold in the United States at less than fair 
value (LTFV), as provided in section 733(b) of the Tariff Act of 1930, 
as amended (the Act). The period of investigation (POI) is July 1, 
2014, through June 30, 2015. The estimated weighted-average dumping 
margins of sales at LTFV are shown in the ``Preliminary Determination'' 
section of this notice. Interested parties are invited to comment on 
this preliminary determination.

DATES: Effective Date: March 1, 2016.

FOR FURTHER INFORMATION CONTACT: Ross Belliveau or Rebecca Trainor, AD/
CVD Operations, Office II, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
4952 or (202) 482-4007, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department initiated this investigation on August 10, 2015.\1\ 
For a complete description of the events that followed the initiation 
of this investigation, see the memorandum that is dated concurrently 
with this determination and hereby adopted by this notice.\2\ The 
Preliminary Decision Memorandum is a public document and is on file 
electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (ACCESS). 
ACCESS is available to registered users at https://access.trade.gov, 
and to all parties in the Central Records Unit, room B8024 of the main 
Department of Commerce building. In addition, a complete version of the 
Preliminary Decision Memorandum can be found at http://enforcement.trade.gov/frn/. The signed Preliminary Decision Memorandum 
and the electronic version of the Preliminary Decision Memorandum are 
identical in content.
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    \1\ See Heavy Walled Rectangular Welded Carbon Steel Pipes and 
Tubes from the Republic of Korea, Mexico, and the Republic of 
Turkey: Initiation of Less-Than-Fair-Value Investigations, 80 FR 
49202 (August 17, 2015) (Initiation Notice).
    \2\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance, 
entitled ``Decision Memorandum for the Preliminary Determination in 
the Antidumping Duty Investigation of Heavy Walled Rectangular 
Welded Carbon Steel Pipes and Tubes from the Republic of Turkey'' 
(Preliminary Decision Memorandum), dated concurrently with this 
notice.
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Scope of the Investigation

    The product covered by this investigation is HWR pipes and tubes 
from Turkey. For a full description of the scope of this investigation, 
see the ``Scope of the Investigation,'' in Appendix I of this notice. 
No party filed comments on the scope of this investigation.

Methodology

    The Department is conducting this investigation in accordance with 
section 731 of the Act. There are two mandatory respondents 
participating in this investigation, MMZ Boru Profil Uretim Sanayi Ve 
Tic. A.S. (MMZ) and Ozdemir Boru Profil San. Ve Tic. Ltd. Sti. 
(Ozdemir). Export price for these companies is calculated in accordance 
with section 772 of the Act. Normal value (NV) is calculated in 
accordance with section 773 of the Act. For a full description of the 
methodology underlying our preliminary conclusions, see the Preliminary 
Decision Memorandum.

All-Others Rate

    Consistent with sections 733(d)(1)(A)(ii) and 735(c)(5) of the Act, 
the Department also calculated an estimated all-others rate. Section 
735(c)(5)(A) of the Act provides that the estimated all-others rate 
shall be an amount equal to the weighted average of the estimated 
weighted-average dumping margins established for exporters and 
producers individually investigated, excluding any zero and de minimis 
margins, and any margins determined entirely under section 776 of the 
Act.
    In this investigation, we preliminarily found a de minimis margin 
for Ozdemir. Therefore, the only rate that is not de minimis (or based 
entirely on facts otherwise available) is the rate calculated for MMZ. 
Consequently, the rate calculated for MMZ is also assigned as the all-
others rate.

Preliminary Determination \3\
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    \3\ As explained in the memorandum from the Acting Assistant 
Secretary for Enforcement & Compliance, the Department has exercised 
its discretion to toll all administrative deadlines due to the 
recent closure of the Federal Government. See Memorandum to the 
Record from Ron Lorentzen, Acting A/S for Enforcement & Compliance, 
regarding ``Tolling of Administrative Deadlines As a Result of the 
Government Closure During Snowstorm Jonas,'' dated January 27, 2016. 
All deadlines in this segment of the proceeding have been extended 
by four business days. The revised deadline for the preliminary 
determination of this investigation is now February 22, 2016.
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    The Department preliminarily determines that the following 
weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                  Exporter/Manufacturer                       dumping
                                                              margin
                                                             (percent)
------------------------------------------------------------------------
MMZ Boru Profil Uretim Sanayi Ve Tic. A.S...............           14.48
Ozdemir Boru Profil San. Ve Tic. Ltd. Sti...............            0.00
All Others..............................................           14.48
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, we will direct 
U.S. Customs and Border Protection (CBP) to suspend liquidation of all 
entries of subject merchandise from Turkey, as described in Appendix I 
of this notice, for all companies other than Ozdemir, which are 
entered, or withdrawn from warehouse, for consumption on or after the 
date of publication of this notice in the Federal Register. We are not 
directing CBP to suspend liquidation of Ozdemir's entries because 
Ozdemir's preliminary estimated weighted-average dumping margin is de 
minimis.
    Pursuant to section 733(d) of the Act and 19 CFR 351.205(d), we 
will instruct CBP to require cash deposits equal to the weighted-
average amount by which the NV exceeds U.S. price, as indicated in the 
chart above, adjusted where appropriate for export subsidies found in 
the preliminary determination of the companion countervailing duty 
investigation. Consistent with our longstanding practice, where the 
product under investigation is also subject to a concurrent 
countervailing duty investigation, we instruct CBP to require a cash 
deposit equal to the amount by which the NV exceeds the U.S. price, 
less the amount of the countervailing duty determined to constitute an 
export subsidy.\4\

[[Page 10584]]

Therefore, for cash deposit purposes, we are subtracting from the 
applicable cash deposit rate the portion of the countervailing duty 
rates attributable to the export subsidies found in the preliminary 
countervailing duty determination. Accordingly, the export subsidy 
offsets are as follows: 0.46 percent for Ozdemir and 0.24 percent for 
all others.\5\ After this adjustment, the resulting cash deposit rates 
will be 0.00 percent for Ozdemir and 14.24 percent for all others. 
There were no export subsidies found for MMZ in the countervailing duty 
investigation.
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    \4\ See, e.g., Welded Line Pipe From the Republic of Turkey: 
Final Determination of Sales at Less Than Fair Value, 80 FR 61362 
(October 13, 2015) and Notice of Final Determination of Sales at 
Less Than Fair Value and Negative Critical Circumstances 
Determination: Bottom Mount Combination Refrigerator-Freezers From 
the Republic of Korea, 77 FR 17413 (March 26, 2012).
    \5\ See Memorandum to the File from Rebecca Trainor, entitled, 
``Preliminary Determination Calculation of the All Others Rate,'' 
dated February 22, 2016.
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    Further, pursuant to section 733(d) of the Act and 19 CFR 
351.205(d), we will instruct CBP to require cash deposits equal to the 
above-noted rates, as follows: (1) The rate for the mandatory 
respondents listed above will be the respondent-specific rates we 
determined in this preliminary determination; (2) if the exporter is 
not a mandatory respondent identified above, but the producer is, the 
rate will be the specific rate established for the producer of the 
subject merchandise; and (3) the rate for all other producers or 
exporters will be the all-others rate, adjusted as appropriate for 
export subsidies. These suspension of liquidation instructions will 
remain in effect until further notice.

Disclosure

    We will disclose the calculations performed to interested parties 
in this proceeding within five days of the announcement of this 
preliminary determination in accordance with 19 CFR 351.224(b).

Verification

    As provided in section 782(i) of the Act, we intend to verify 
information relied upon in making our final determination.

Public Comment

    Interested parties are invited to comment on this preliminary 
determination. Case briefs or other written comments may be submitted 
to the Assistant Secretary for Enforcement and Compliance no later than 
seven days after the date on which the final verification report is 
issued in this proceeding, and rebuttal briefs, limited to issues 
raised in case briefs, may be submitted no later than five days after 
the deadline date for case briefs.\6\ Pursuant to 19 CFR 351.309(c)(2) 
and (d)(2), parties who submit case briefs or rebuttal briefs in this 
proceeding are encouraged to submit with each argument: (1) A statement 
of the issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
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    \6\ See 19 CFR 351.309.
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing must submit a written request to the Assistant 
Secretary for Enforcement and Compliance, U.S. Department of Commerce. 
All documents must be filed electronically using ACCESS. An 
electronically-filed request must be received successfully in its 
entirety by ACCESS by 5:00 p.m. Eastern Standard Time, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, and a list of the issues to be discussed. If a request 
for a hearing is made, the Department intends to hold the hearing at 
the U.S. Department of Commerce, 14th Street and Constitution Avenue 
NW., Washington, DC 20230, at a time and date to be determined. Parties 
should confirm by telephone the date, time, and location of the hearing 
two days before the scheduled date.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioner. 19 CFR 351.210(e)(2) requires that requests by 
respondents for postponement of a final determination be accompanied by 
a request for extension of provisional measures from a four-month 
period to a period not more than six months in duration.
    Respondents MMZ and Ozdemir requested that, in the event of an 
affirmative preliminary determination in this investigation, the 
Department postpone its final determination by 60 days (i.e., to 135 
days after publication of the preliminary determination), and agreed to 
extend the application of the provisional measures prescribed under 
section 733(d) of the Act and 19 CFR 351.210(e)(2), from a four-month 
period to a period not to exceed six months.\7\ In addition, the 
petitioners \8\ also requested that, in the event of a negative 
preliminary determination, the Department postpone its final 
determination to 135 days after the date of publication of the 
preliminary determination.\9\
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    \7\ See letter from MMZ entitled, ``Heavy Walled Rectangular 
Welded Carbon Steel Pipes and Tubes from the Republic of Turkey: MMZ 
ONUR BORU PROFIL URETIM SANAYi VE TiC A.S. (MMZ) Request for 
Postponement of Final Determination,'' dated January 21, 2016; and 
letter from Ozdemir entitled, ``Antidumping: Heavy Walled 
Rectangular Welded Carbon Steel Pipes and Tubes from the Republic of 
Turkey; Ozdemir Request to Postpone Final Determination,'' dated 
January 26, 2016.
    \8\ The petitioners in this proceeding are Atlas Tube, a 
division of JMC Steel Group; Bull Moose Tube Company; EXLTUBE; 
Hannibal Industries, Inc.; Independence Tube Corporation; Maruichi 
American Corporation; Searing Industries; Southland Tube; and Vest, 
Inc.
    \9\ See letter from the petitioners entitled, ``Heavy Walled 
Rectangular Welded Carbon Steel Pipe and Tubes from Turkey: Request 
to Extend Final Determination,'' dated February 4, 2016.
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    In accordance with section 735(a)(2)(A) of the Act and 19 CFR 
351.210(b)(2)(ii), because (1) our preliminary determination is 
affirmative; (2) the requesting exporters account for a significant 
proportion of exports of the subject merchandise; (3) the requesting 
exporters have each requested extension of provisional measures to a 
period not more than six months; and (4) no compelling reasons for 
denial exist, we are postponing the final determination until no later 
than 135 days after the publication of this notice in the Federal 
Register and extending the provisional measures from a four-month 
period to a period not greater than six months. Accordingly, we will 
issue our final determination no later than 135 days after the date of 
publication of this preliminary determination, pursuant to section 
735(a)(2) of the Act.\10\
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    \10\ See 19 CFR 351.210(b)(2) and (e).
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International Trade Commission (ITC) Notification

    In accordance with section 733(f) of the Act, we will notify the 
ITC of our affirmative preliminary determination of sales at LTFV. If 
our final determination is affirmative, the ITC will determine before 
the later of 120 days after the date of this preliminary determination 
or 45 days after our final determination whether these imports are 
materially injuring, or threaten material injury to, the U.S. industry.
    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).


[[Page 10585]]


    Dated: February 22, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The products covered by this investigation are certain heavy 
walled rectangular welded steel pipes and tubes of rectangular 
(including square) cross section, having a nominal wall thickness of 
not less than 4 mm. The merchandise includes, but is not limited to, 
the American Society for Testing and Materials (ASTM) A-500, grade B 
specifications, or comparable domestic or foreign specifications.
    Included products are those in which: (1) Iron predominates, by 
weight, over each of the other contained elements; (2) the carbon 
content is 2 percent or less, by weight; and (3) none of the 
elements below exceeds the quantity, by weight, respectively 
indicated:

 2.50 percent of manganese, or
 3.30 percent of silicon, or
 1.50 percent of copper, or
 1.50 percent of aluminum, or
 1.25 percent of chromium, or
 0.30 percent of cobalt, or
 0.40 percent of lead, or
 2.0 percent of nickel, or
 0.30 percent of tungsten, or
 0.80 percent of molybdenum, or
 0.10 percent of niobium (also called columbium), or
 0.30 percent of vanadium, or
 0.30 percent of zirconium.

The subject merchandise is currently provided for in item 
7306.61.1000 of the Harmonized Tariff Schedule of the United States 
(HTSUS). Subject merchandise may also enter under HTSUS 
7306.61.3000. While the HTSUS subheadings and ASTM specification are 
provided for convenience and customs purposes, the written 
description of the scope of this investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

1. Summary
2. Background
3. Period of Investigation
4. Postponement of Final Determination and Extension of Provisional 
Measures
5. Scope Comments
6. Discussion of the Methodology
    a. Determination of the Comparison Method
    b. Results of the Differential Pricing Analysis
7. Date of Sale
8. Product Comparisons
9. Export Price
10. Normal Value
    a. Home Market Viability
    b. Level of Trade
    c. Cost of Production (COP) Analysis
    1. Calculation of COP
    2. Test of Comparison Market Sales Prices
    3. Results of the COP Test
    d. Calculation of NV Based on Comparison Market Prices
11. Currency Conversion

[FR Doc. 2016-04512 Filed 2-29-16; 8:45 am]
 BILLING CODE 3510-DS-P