[Federal Register Volume 81, Number 68 (Friday, April 8, 2016)]
[Notices]
[Pages 20619-20622]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-08147]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-535-904]


Circular Welded Carbon-Quality Steel Pipe From Pakistan: 
Preliminary Affirmative Countervailing Duty Determination and Alignment 
of Final Countervailing Duty Determination With Final Antidumping Duty 
Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce.
SUMMARY: The U.S. Department of Commerce (the Department) preliminarily 
determines that countervailable subsidies are being provided to 
exporters/producers of circular welded carbon-quality steel pipe 
(circular welded pipe) from Pakistan. The period of investigation (POI) 
is July 1, 2014, through June 30, 2015.\1\ Interested parties are 
invited to

[[Page 20620]]

comment on this preliminary determination.
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    \1\ Pursuant to 19 CFR 351.204(b)(2), the Department's 
Initiation Notice stated that the POI was January 1, 2014, through 
December 31, 2014. See Circular Welded Carbon-Quality Steel Pipe 
from Pakistan: Initiation of Countervailing Duty Investigation, 80 
FR 73704 (November 25, 2015) (Initiation Notice). The Department, 
however, identified public information supporting the conclusion 
that both the Government of Pakistan (the GOP) and the sole company 
selected for individual examination (i.e., the mandatory 
respondent), International Industries Limited (IIL), operate 
according to an annual fiscal year beginning on July 1 and ending on 
June 30. See Department Memorandum, ``Countervailing Duty 
Investigation of Circular Welded Carbon-Quality Steel Pipe from 
Pakistan: Period of Investigation,'' December 16, 2015 (POI 
Memorandum); see also Letter from the Department, ``Countervailing 
Duty Investigation of Circular Welded Carbon-Quality Steel Pipe from 
Pakistan: Countervailing Duty Questonnaire,'' December 16, 2015 (CVD 
Questionnaire), at I-4. Therefore, consistent with 19 CFR 
351.204(b)(2), we determined that July 1, 2014, through June 30, 
2015, is the appropriate POI for this proceeding. See POI 
Memorandum; see also CVD Questionnaire at I-4. Although the 
Department provided interested parties with the opportunity to 
comment on the modified POI, we received no comments.

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DATES: Effective April 8, 2016.

FOR FURTHER INFORMATION CONTACT: Kaitlin Wojnar, AD/CVD Operations, 
Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
3857.

SUPPLEMENTARY INFORMATION:

Alignment of Final Countervailing Duty Determination With Final 
Antidumping Duty Determination

    On the same day that the Department initiated this countervailing 
duty (CVD) investigation, the Department also initiated an antidumping 
duty (AD) investigation of circular welded pipe from Pakistan.\2\ The 
AD and CVD investigations cover the same class or kind of merchandise 
from the same country. On March 29, 2016, in accordance with section 
705(a)(1) of the Tariff Act of 1930, as amended (the Act) and 19 CFR 
351.210(b)(4), Bull Moose Tube Company, EXLTUBE, Wheatland Tube 
Company, and Western Tube and Conduit (collectively, Petitioners) 
requested alignment of the final CVD determination with the final AD 
determination regarding circular welded pipe from Paksitan.\3\ 
Therefore, in accordance with section 705(a)(1) of the Act and 19 CFR 
351.210(b)(4), we are aligning the final CVD determination in this 
investigation with the final determination in the companion AD 
investigation of circular welded pipe from Pakistan. Consequently, the 
final CVD determination will be issued on the same date as the final AD 
determination, which is currently due no later than August 15, 2016.
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    \2\ See Initiation Notice, 80 FR at 73704; see also See Circular 
Welded Carbon-Quality Steel Pipe from the Sultanate of Oman, 
Pakistan, the Philippines, the United Arab Emirates, and the 
Socialist Republic of Vietnam: Initiation of Less-Than-Fair-Value 
Investigations, 80 FR 73708 (November 25, 2015).
    \3\ See Letter from Petitioners, ``Circular Welded Carbon-
Quality Steel Pipe from Pakistan: Request for Alignment,'' March 29, 
2016.
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Scope of the Investigation

    The product covered by this investigation is circular welded pipe 
from Pakistan. Interested parties filed comments regarding the scope of 
the investigation, which resulted in one clarification to the scope 
language and are addressed, in detail, in the Department's Preliminary 
Scope Decision Memorandum.\4\ For a full description of the scope of 
the investigation, see Appendix I to this notice.
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    \4\ See Department Memorandum, ``Antidumping Duty Investigations 
of Circular Welded Carbon-Quality Steel Pipe from the Sultanate of 
Oman, Pakistan, the United Arab Emirates, and the Socialist Republic 
of Vietnam and Countervailing Duty Investigation of Circular Welded 
Carbon-Quality Steel Pipe form Pakistan; Scope Comments Decision 
Memorandum for the Preliminary Determination,'' dated concurrently 
with and hereby adopted by this notice (Preliminary Scope Decision 
Memorandum).
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Methodology

    The Department is conducting this countervailing duty investigation 
in accordance with section 701 of the Act. We preliminarily determine 
that, for each of the programs found countervailable, there is a 
subsidy (i.e., a financial contribution by an ``authority,'' giving 
rise to a benefit to the recipient) and that the subsidy is specific. 
For a full description of the methodology underlying the Department's 
preliminary conclusions, see the Preliminary Decision Memorandum.\5\ 
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 http://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 accessed directly at http://enforcement.trade.gov/frn/index.html. The signed Preliminary Decision 
Memorandum and the electronic versions of the Preliminary Decision 
Memorandum are identical in content.
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    \5\ See Department Memorandum, ``Circular Welded Carbon-Quality 
Steel Pipe from Pakistan: Preliminary Affirmative Countervailing 
Duty Determination Decision Memorandum,'' dated concurrently with 
and hereby adopted by this notice (Preliminary Decision Memorandum).
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    For this preliminary determination, pursuant to section 776(a) of 
the Act, the Department relied on facts otherwise available because 
necessary information is not available on the record.\6\ Furthermore, 
the GOP and IIL failed to provide information requested by the 
Department. By refusing to participate as respondents, IIL and the GOP 
significantly impeded the Department's investigation.\7\ Because the 
GOP and IIL are uncooperative (i.e., they did not act to the best of 
their ability to respond to the Department's requests for necessary 
information), the Department has drawn an adverse inference in 
selecting information from facts otherwise available, in accordance 
with section 776(b) of the Act. Specifically, the Department applied an 
adverse inference to find that the programs on which the Department 
initiated the investigation are countervailable. The Department has 
also applied an adverse inference in its calculation of an estimated ad 
valorem countervailable subsidy rate for IIL. Additional information is 
provided in the ``Use of Facts Otherwise Available and Adverse 
Inferences'' section of the Preliminary Decision Memorandum.
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    \6\ See section 776(a)(1) of the Act.
    \7\ See section 776(a)(2)(B)-(C) of the Act.
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    A complete list of topics discussed in the Preliminary Decision 
Memorandum can be found at Appendix II to this notice.

Preliminary Determination and Suspension of Liquidation

    In accordance with sections 776(a) and (b) of the Act, the 
Department applied facts otherwise available, with adverse inferences, 
to determine a countervailable subsidy rate for the non-cooperative 
mandatory respondent, IIL. With respect to the ``all-others'' rate, 
section 705(c)(5)(A)(ii) of the Act provides that, if the 
countervailable subsidy rates established for all individually-
investigated exporters/producers are determined entirely under section 
776 of the Act (i.e., based entirely on facts otherwise available), the 
Department may use any reasonable method to establish an all-others 
rate for exporters/producers not individually-examined. In this case, 
as noted above, the countervailable subsidy rate assigned to IIL is 
based entirely on facts otherwise available under section 776 of the 
Act. There is no other information on the record upon which to 
determine an all-others rate. As a result, under section 
705(c)(5)(A)(ii) of the Act, we are assigning IIL's rate as the all-
others rate. This method is consistent with the Department's 
established practice.\8\
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    \8\ See, e.g., Grain-Oriented Electrical Steel from the People's 
Republic of China: Final Affirmative Countervailing Duty 
Determination, 79 FR 59221 (October 1, 2014), and accompanying 
Issues and Decision Memorandum at Comment 1 (assigning the sole 
mandatory respondent's rate, which was based on AFA, as the all-
others rate); see also Circular Welded Carbon-Quality Steel Pipe 
from India: Final Affirmative Countervailing Duty Determination, 77 
FR 64468, 64470 (October 22, 2012) (averaging two total AFA 
respondents' rates together to determine the all-others rate); 
Certain Potassium Phosphate Sales from the People's Republic of 
China: Final Affirmative Countervailing Duty Determination and 
Termination of Critical Circumstances Inquiry, 75 FR 30375 (June 1, 
2010) (assigning the rate for three total AFA companies as the all-
others rate).

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[[Page 20621]]

    We preliminarily determine estimated countervailable subsidy rates 
as follows:

------------------------------------------------------------------------
                                                                Subsidy
                      Exporter/producer                          rate
                                                               (percent)
------------------------------------------------------------------------
International Industries Limited............................       64.81
All-Others..................................................       64.81
------------------------------------------------------------------------

    In accordance with sections 703(d)(1)(B) and (d)(2) of the Act, we 
are directing U.S. Customs and Border Protection to suspend liquidation 
of all entries of circular welded pipe from Pakistan, as described in 
the ``Scope of the Investigation,'' 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 for 
such entries of merchandise in the amounts indicated above.

Disclosure and Public Comment

    Because the Department has reached its conclusions on the basis of 
adverse facts available, the calculations performed in connection with 
this preliminary determination are not proprietary in nature and are 
described in the Preliminary Decision Memorandum. Interested parties 
may submit case and rebuttal briefs, as well as request a hearing.\9\ 
For a schedule of the deadlines for filing case briefs, rebuttal 
briefs, and hearing requests for non-scope issues, see the Preliminary 
Decision Memorandum. For a schedule of the deadlines for filing case 
briefs, rebuttal briefs, and hearing request regarding scope issues, 
see the Preliminary Scope Decision Memorandum.
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    \9\ See 19 CFR351.309(c)-(d), 19 CFR 351.310(c); see also 19 CFR 
351.303 (for general filing requirements).
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International Trade Commission Notification

    In accordance with section 703(f) of the Act, we will notify the 
U.S. International Trade Commission (ITC) of our determination. In 
addition, we are making all non-privileged and non-proprietary 
information relating to this investigation available to the ITC. We 
will allow the ITC access to all privileged and business proprietary 
information in our files, provided that the ITC confirms that it will 
not disclose such information, either publicly or under an 
administrative protective order, without the written consent of the 
Assistant Secretary for Enforcement and Compliance.
    In accordance with section 705(b)(2) of the Act, if our final 
determination is affirmative, the ITC will make its final determination 
no more than 45 days after the Department makes its final 
determination.
    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: April 1, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I--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 nominal 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; or
    (xiv) 0.15 percent of zirconium.
    Covered 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, may also be 
covered by the scope of these investigations. In particular, such 
multi-stenciled merchandise is covered 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 (50 mm) in outside diameter; has a galvanized and/or 
painted (e.g., polyester coated) surface finish; or has a threaded 
and/or coupled end finish.
    Standard 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.
    Sprinkler pipe is designed for sprinkler fire suppression 
systems and may be made to industry specifications such as ASTM A53 
or to proprietary 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. Products that meet 
the physical description set forth above but are made to the 
following nominal outside diameter and wall thickness combinations, 
which are recognized by the industry as typical for fence tubing, 
are included despite being certified to ASTM mechanical tubing 
specifications:

------------------------------------------------------------------------
                                                       Wall
                                                    thickness
             O.D. in inches (nominal)               in inches     Gage
                                                    (nominal)
------------------------------------------------------------------------
1.315............................................        0.035        20
1.315............................................        0.047        18
1.315............................................        0.055        17
1.315............................................        0.065        16
1.315............................................        0.072        15
1.315............................................        0.083        14
1.315............................................        0.095        13
1.660............................................        0.055        17
1.660............................................        0.065        16
1.660............................................        0.083        14
1.660............................................        0.095        13
1.660............................................        0.109        12
1.900............................................        0.047        18
1.900............................................        0.055        17
1.900............................................        0.065        16
1.900............................................        0.072        15
1.900............................................        0.095        13
1.900............................................        0.109        12
2.375............................................        0.047        18
2.375............................................        0.055        17
2.375............................................        0.065        16
2.375............................................        0.072        15
2.375............................................        0.095        13
2.375............................................        0.109        12
2.375............................................        0.120        11
2.875............................................        0.109        12
2.875............................................        0.165         8
3.500............................................        0.109        12
3.500............................................        0.165         8
4.000............................................        0.148         9
4.000............................................        0.165         8
4.500............................................        0.203         7
------------------------------------------------------------------------

    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, which are defined by standards such as ASTM A178 or ASTM 
A192;
    (b) finished electrical conduit, i.e., Electrical Rigid Steel 
Conduit (also known as Electrical Rigid Metal Conduit and Electrical 
Rigid Metal Steel Conduit), Finished Electrical Metallic Tubing, and 
Electrical Intermediate Metal Conduit, which are defined by 
specifications such as American National Standard (ANSI) C80.1-2005, 
ANSI C80.3-2005, or ANSI C80.6-2005, and Underwriters Laboratories 
Inc. (UL) UL-6, UL-797, or UL-1242;
    (c) finished scaffolding, i.e., component parts of final, 
finished scaffolding that enter the United States unassembled as a 
``kit.'' A

[[Page 20622]]

kit is understood to mean a packaged combination of component parts 
that contains, at the time of importation, all of the necessary 
component parts to fully assemble final, finished scaffolding;
    (d) tube and pipe hollows for redrawing;
    (e) oil country tubular goods produced to API specifications;
    (f) line pipe produced to only API specifications, such as API 
5L, and not multi-stenciled; and
    (g) mechanical tubing, whether or not cold-drawn, other than 
what is included in the above paragraphs.
    The products subject to this investigation are 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, 7306.30.5015, 
7306.30.5020, 7306.30.5025, 7306.30.5032, 7306.30.5040, 
7306.30.5055, 7306.30.5085, 7306.30.5090, 7306.50.1000, 
7306.50.5030, 7306.50.5050, and 7306.50.5070. The HTSUS subheadings 
above are provided for convenience and U.S. Customs purposes only. 
The written description of the scope of the investigation is 
dispositive.

Appendix II--

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Alignment
IV. Scope Comments
V. Scope of the Investigation
VI. Respondent Selection
VII. Injury Test
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Calculation of the All-Others Rate
X. ITC Notification
XI. Disclosure and Public Comment
XII. Conclusion

[FR Doc. 2016-08147 Filed 4-7-16; 8:45 am]
 BILLING CODE 3510-DS-P