[Federal Register Volume 81, Number 209 (Friday, October 28, 2016)]
[Notices]
[Pages 75030-75032]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26107]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-520-807]


Circular Welded Carbon-Quality Steel Pipe From the United Arab 
Emirates: Final Determination of Sales at Less Than Fair Value

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce
SUMMARY: The Department of Commerce (the Department) determines that 
circular welded carbon-quality steel pipe (CWP) from the United Arab 
Emirates (UAE) is being, or is likely to be, sold in the United States 
at less than fair value (LTFV). The period of investigation (POI) is 
October 1, 2014, through September 30, 2015. The final dumping margins 
of sales at LTFV are listed below in the ``Final Determination'' 
section of this notice.

DATES: Effective October 28, 2016.

FOR FURTHER INFORMATION CONTACT: Blaine Wiltse or Manuel Rey, AD/CVD 
Operations, Office II, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230; telephone: (202) 482-6345 and (202) 482-
5518, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On June 8, 2016, the Department published the Preliminary 
Determination.\1\ A summary of the events that occurred since the 
Department published the Preliminary Determination, as well as a full 
discussion of the issues raised by parties for this final 
determination, may be found in the Issues and Decision Memorandum, 
which is hereby adopted by this notice.\2\
---------------------------------------------------------------------------

    \1\ See Circular Welded Carbon-Quality Steel Pipe From the 
United Arab Emirates: Affirmative Preliminary Determination of Sales 
at Less Than Fair Value and Postponement of Final Determination, 81 
FR 36881 (June 8, 2016) (Preliminary Determination).
    \2\ See Memorandum to Ronald K. Lorentzen, ``Issues and Decision 
Memorandum for the Final Affirmative Determination in the Less-Than-
Fair-Value Investigation of Circular Welded Carbon-Quality Steel 
Pipe From the United Arab Emirates,'' dated concurrently with this 
notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

    The scope of the investigation covers CWP from the UAE. For a 
complete description of the scope of the investigation, see Appendix I.

Scope Comments

    In the Preliminary Determination, the Department set aside a period 
of time for parties to address scope issues in case briefs or other 
written comments on scope issues. No interested parties submitted scope 
comments in case or rebuttal briefs; therefore, for this final 
determination, the scope of this investigation remains unchanged from 
that published in the Preliminary Determination.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are addressed in the Issues and Decision Memorandum. 
A list of the issues raised is attached to this notice as Appendix II. 
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 (ACCESS). 
ACCESS is available to registered users at https://access.trade.gov and 
it is available to all parties in the Central Records Unit,

[[Page 75031]]

room B-8024 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/index.html. The signed and 
electronic versions of the Issues and Decision Memorandum are identical 
in content.

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), in June, July, and August 2016, we conducted verification of 
the sales and cost information submitted by Ajmal Steel Tubes & Pipes 
Ind. L.L.C. (Ajmal Steel) and Universal Tube and Plastic Industries, 
LLC--Jebel Ali Branch, Universal Tube and Pipe Industries, and KHK 
Scaffolding and Framework LLC (collectively, Universal) for use in our 
final determination. We used standard verification procedures, 
including an examination of relevant accounting and production records, 
and original source documents provided by Ajmal Steel and Universal.\3\
---------------------------------------------------------------------------

    \3\ For discussion of our verification findings, see the 
following memoranda: Memorandum to the File from Blaine Wiltse and 
Whitley Herndon, entitled ``Verification of UTP Pipe USA Corp. and 
Prime Metal Corp. in the Antidumping Duty Investigation of Circular 
Welded Carbon-Quality Steel Pipe from the United Arab Emirates,'' 
dated August 17, 2016; see also Memorandum to the File from Blaine 
Wiltse and E. Whitley Herndon, entitled ``Verification of the Sales 
Response of Universal Tube and Plastic Industries, Ltd.--Jebel Ali 
Branch in the Antidumping Investigation of Circular Welded Carbon 
Steel Pipe from United Arab Emirates,'' dated August 16, 2016; 
Memorandum to the File from Blaine Wiltse and E. Whitley Herndon, 
entitled ``Verification of the Sales Response of Dayal Steel 
Suppliers LLC in the Antidumping Investigation of Circular Welded 
Carbon Steel Pipe from the United Arab Emirates,'' dated August 22, 
2016; Memorandum to the File from Dennis McClure and Manuel Rey, 
entitled ``Verification of the Sales Response of Ajmal Steel Tubes & 
Pipes Ind. L.L.C. in the Antidumping Investigation of Circular 
Welded Carbon-Quality Steel Pipe from the United Arab Emirates,'' 
dated August 22, 2016; Memorandum to the File from Michael Martin 
and Christopher Zimpo, entitled ``Verification of the Cost Response 
of Universal in the Antidumping Duty Investigation of Circular 
Welded Carbon-Quality Steel Pipe from the United Arab Emirates,'' 
dated August 24, 2016; and Memorandum to the File from Christopher 
J. Zimpo, entitled ``Verification of the Cost Response of Ajmal 
Steel Tubes & Pipes Ind. L.L.C. in the Antidumping Duty 
Investigation of Circular Welded Carbon Steel Pipe from the United 
Arab Emirates,'' dated August 25, 2016.
---------------------------------------------------------------------------

Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we made certain changes to the margin calculations for 
Ajmal Steel and Universal. For a discussion of these changes, see the 
Issues and Decision Memorandum.

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 or de 
minimis margins, and margins determined entirely under section 776 of 
the Act. For the final determination, the Department calculated the 
``all others'' rate based on a weighted average of Ajmal Steel's and 
Universal's margins using publicly-ranged quantities of their sales of 
subject merchandise.\4\
---------------------------------------------------------------------------

    \4\ See Memorandum to the File from Whitley Herndon, Analyst, 
entitled, ``Circular Welded Carbon-Quality Steel Pipe From the 
United Arab Emirates: Calculation of the Final Margin for All Other 
Companies,'' dated July 14, 2016. With two respondents, we normally 
calculate (A) a weighted-average of the dumping margins calculated 
for the mandatory respondents; (B) a simple average of the dumping 
margins calculated for the mandatory respondents; and (C) a 
weighted-average of the dumping margins calculated for the mandatory 
respondents using each company's publicly-ranged values for the 
merchandise under consideration. We compare (B) and (C) to (A) and 
select the rate closest to (A) as the most appropriate rate for all 
other companies. See Ball Bearings and Parts Thereof From France, 
Germany, Italy, Japan, and the United Kingdom: Final Results of 
Antidumping Duty Administrative Reviews, Final Results of Changed-
Circumstances Review, and Revocation of an Order in Part, 75 FR 
53661, 53663 (September 1, 2010).
---------------------------------------------------------------------------

Final Determination

    The final weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                    Exporter/Manufacturer                       dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Ajmal Steel Tubes & Pipes Ind. L.L.C........................        6.43
Universal Tube and Plastic Industries, LLC--Jebel Ali               5.58
 Branch, Universal Tube and Pipe Industries, and KHK
 Scaffolding and Framework LLC..............................
All Others..................................................        5.95
------------------------------------------------------------------------

Disclosure

    We will disclose the calculations performed within five days of the 
date of publication of this notice to parties in this proceeding in 
accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, the Department 
will instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of CWP from UAE, as 
described in Appendix I of this notice, which were entered, or 
withdrawn from warehouse, for consumption on or after June 8, 2016, the 
date of publication of the preliminary determination of this 
investigation in the Federal Register.
    Further, the Department will instruct CBP to require a cash deposit 
equal to the estimated amount by which the normal value exceeds the 
U.S. price as shown above.

International Trade Comission (ITC) Notification

    In accordance with section 735(d) of the Act, we will notify the 
ITC of the final affirmative determination of sales at LTFV. Because 
the final determination in this proceeding is affirmative, in 
accordance with section 735(b)(2) of the Act, the ITC will make its 
final determination as to whether the domestic industry in the United 
States is materially injured, or threatened with material injury, by 
reason of imports of CWP from UAE no later than 45 days after our final 
determination. If the ITC determines that material injury or threat of 
material injury does not exist, the proceeding will be terminated and 
all cash deposits will be refunded. If the ITC determines that such 
injury does exist, the Department will issue an antidumping duty order 
directing CBP to assess, upon further instruction by the Department, 
antidumping duties on all imports of the subject merchandise entered, 
or withdrawn from warehouse, for consumption on or after the effective 
date of the suspension of liquidation.

Notification Regarding Administrative Protective Orders (APO)

    This notice serves as a reminder to parties subject to APO of their 
responsibility concerning the disposition of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely 
notification of the return or destruction of APO materials, or 
conversion to judicial protective order, is hereby requested. Failure 
to comply with the regulations and the terms of an APO is a 
sanctionable violation.
    This determination and this notice are issued and published 
pursuant to sections 735(d) and 777(i)(1) of the Act.

    Dated: October 21, 2016.
Ronald K. Lorentzen,
Acting 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-

[[Page 75032]]

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     Gauge
                                                   (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 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 Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Margin Calculations
V. Discussion of the Issues
    1. Management Fees
    2. Weight Basis for Ajmal Steel
    3. Ajmal Steel's Rebate Adjustment
    4. Depreciation on Revalued Assets for Ajmal Steel
    5. General and Administrative and Financial Expenses for Ajmal 
Steel
    6. Revision of Ajmal Steel's POI Depreciation Analysis
    7. Universal's Level of Trade Adjustment
    8. Credit Expenses for one of Universal's U.S. Customers
    9. U.S. Packing Costs for Universal
    10. Sales to Universal's Affiliated Reseller Al Zaher Building 
Materials LLC
VI. Recommendation

[FR Doc. 2016-26107 Filed 10-27-16; 8:45 am]
 BILLING CODE 3510-DS-P