[Federal Register Volume 81, Number 168 (Tuesday, August 30, 2016)]
[Notices]
[Pages 59603-59604]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-20839]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-870]


Certain Oil Country Tubular Goods From the Republic of Korea: 
Notice of Court Decision Not in Harmony With Final Determination

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

SUMMARY: On August 2, 2016, the United States Court of International 
Trade (the CIT) sustained the Department of Commerce (the Department)'s 
final results of redetermination concerning the less-than-fair-value 
(LTFV) investigation of certain oil country tubular goods (OCTG) from 
the Republic of Korea. The Department is notifying the public that the 
CIT's final judgment in this case is not in harmony with the 
Department's final determination in the LTFV investigation, and that 
the Department is amending the weighted-average dumping margins from 
the final determination.

DATES: Effective: August 12, 2016.

FOR FURTHER INFORMATION CONTACT: Deborah Scott or Victoria Cho, AD/CVD 
Operations, Office VI, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
2657 or (202) 482-5075, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On July 18, 2014, the Department published the Final Determination 
in the LTFV investigation of OCTG from the Republic of Korea.\1\ 
Subsequently, various interested parties timely filed complaints with 
the CIT to challenge certain aspects of the Department's Final 
Determination. On September 2, 2015, the CIT issued its Remand Order, 
directing the Department to reconsider certain aspects of the 
constructed value (CV) profit rate calculation used in the dumping 
margin analysis. Specifically, the Court instructed the Department to: 
(1) Either remove the financial statements of Tenaris, S.A. (Tenaris) 
from the record and not use them in the CV profit calculation, or, 
alternatively, rectify the alleged prejudice from acceptance of such 
statements; (2) either exclude from consideration or, alternatively, 
explain the relevance of market conditions and testing and 
certification requirements to the determination of which products are 
in the same general category of merchandise as OCTG; and, (3) either 
calculate and apply a profit cap or, alternatively, explain why the 
data on the record cannot be used to calculate a ``facts available'' 
profit cap under 19 U.S.C. 1677b(e)(2)(B)(iii). In addition, the CIT 
found that the Department did not provide sufficient reasoning for 
declining to select ILJIN Steel Corporation (ILJIN) as a mandatory 
respondent, and thus ordered the Department to reconsider the issue of 
whether the two selected respondents (Hyundai Steel Company (HYSCO) and 
NEXTEEL Co. Ltd. (NEXTEEL)), which produce only welded OCTG, were 
representative of the Korean industry. As part of this remand, the 
Court directed the Department to consider information on the record 
that is probative of the difference between welded and seamless OCTG, 
including costs and pricing.\2\
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    \1\ See Certain Oil Country Tubular Goods from the Republic of 
Korea: Final Determination of Sales at Less Than Fair Value and 
Negative Final Determination of Critical Circumstances, 79 FR 41983 
(July 18, 2014) (Final Determination).
    \2\ See Husteel Co., Ltd., et al., v. United States, Consol. 
Court No. 14-00215, Slip. Op. 15-100 (Ct. Int'l Trade Sept. 2, 2015) 
(Remand Order).
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    After the CIT issued its Remand Order, the Department re-opened the 
record to allow all interested parties to submit new factual 
information and comment on the issue of CV profit (including the 
application of the profit cap) in the event the Department relied upon 
the alternative CV profit methodology provided for under 19 U.S.C. 
1677b(e)(2)(B)(iii). On February 22, 2016, the Department issued its 
Final Redetermination, in which it provided further explanation of 
which products are in the same general category of merchandise as OCTG 
and why the revised calculated CV profit rate in the Final 
Redetermination is also appropriately applied as the profit cap based 
upon the available facts. The Department also revised the CV profit 
rate calculation, basing it on the average of the profit rates in the 
2012 financial

[[Page 59604]]

statements of Tenaris and OAO TMK, a Russian producer/exporter of OCTG. 
As a result, the weighted-average dumping margins changed for HYSCO, 
NEXTEEL, and all other Korean exporters and producers. In the Final 
Redetermination, the Department also explained the basis for exercising 
its discretion to select mandatory respondents using the largest volume 
method, including the requisite analysis of record evidence, and 
therefore why it was appropriate not to select ILJIN as a mandatory 
respondent in the underlying investigation.\3\ On August 2, 2016, the 
CIT upheld the Department's Final Redetermination in full.\4\
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    \3\ See Final Redetermination Pursuant to Court Remand in 
Husteel Co., Ltd., et al., v. United States, Consol. Court No. 14-
00215, dated February 22, 2016 (Final Redetermination). The Final 
Redetermination is accessible at http://enforcement.trade.gov/remands/15-100.pdf.
    \4\ See Husteel Co., Ltd., et al., v. United States, Consol. 
Court No. 14-00215, Slip. Op. 16-76 (Ct. Int'l Trade Aug. 2, 2016).
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Timken Notice

    In its decision in Timken,\5\ as clarified by Diamond Sawblades,\6\ 
the United States Court of Appeals for the Federal Circuit has held 
that, pursuant to section 516A(e) of the Tariff Act of 1930, as amended 
(the Act), the Department must publish a notice of a court decision not 
``in harmony'' with a Department determination, and must suspend 
liquidation of entries pending a ``conclusive'' court decision. The 
CIT's August 2, 2016 judgment sustaining the Final Redetermination 
constitutes a final decision of that court which is not in harmony with 
the Department's Final Determination. This notice is published in 
fulfillment of the publication requirement of Timken.
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    \5\ See Timken Co., v United States, 893 F.2d 337, 341 (Fed. 
Cir. 1990) (Timken).
    \6\ See Diamond Sawblades Mfrs. Coalition v. United States, 626 
F.3d 1374 (Fed. Cir. 2010) (Diamond Sawblades).
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Amended Final Determination

    Because there is now a final court decision, the Department is 
amending the Final Determination with respect to the weighted-average 
dumping margins for NEXTEEL, HYSCO, and all other Korean exporters and 
producers for the period July 1, 2012 through June 30, 2013, effective 
August 12, 2016. The revised weighted-average dumping margins are as 
follows:

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                  Exporter or producer                        dumping
                                                              margin
                                                             (percent)
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Hyundai HYSCO \7\.......................................            6.49
NEXTEEL Co. Ltd.........................................            3.98
All-Others..............................................            5.24
------------------------------------------------------------------------

    Accordingly, the Department will continue the suspension of 
liquidation of the subject merchandise pending the expiration of the 
period of appeal or, if appealed, pending a final and conclusive court 
decision.
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    \7\ On July 18, 2016, the Department published the notice of 
initiation and expedited preliminary results of a changed 
circumstances review in which it preliminarily determined that 
Hyundai Steel Co. Ltd. is the successor-in-interest to Hyundai 
HYSCO. See Certain Oil Country Tubular Goods From the Republic of 
Korea: Initiation and Expedited Preliminary Results of Changed 
Circumstances Review, 81 FR 46645 (July 18, 2016). If the Department 
upholds these preliminary results in its final results, Hyundai 
Steel Co. Ltd. will be entitled to the antidumping duty deposit rate 
currently assigned to Hyundai HYSCO with respect to the subject 
merchandise.
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Cash Deposit Requirements

    Since the Final Determination, the Department has not established a 
new cash deposit rate for HYSCO, NEXTEEL, or all other Korean exporters 
and producers. As a result, in accordance with section 735(c)(1)(B) of 
the Act, the Department will instruct U.S. Customs and Border 
Protection to collect cash deposits at the rates for entries of subject 
merchandise in accordance with the rates for exporters and producers 
listed above in this notice, effective August 12, 2016.
    This notice is issued and published in accordance with sections 
516(A)(e), 735(d), and 777(i)(1) of the Act.

    Dated: August 24, 2016.
Paul Piquado,
Assistant Secretary for Enforcement & Compliance.
[FR Doc. 2016-20839 Filed 8-29-16; 8:45 am]
 BILLING CODE 3510-DS-P