[Federal Register Volume 81, Number 209 (Friday, October 28, 2016)]
[Notices]
[Pages 75026-75028]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26108]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-523-812]


Circular Welded Carbon-Quality Steel Pipe From the Sultanate of 
Oman: 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 Sultanate of 
Oman (Oman) 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 weighted-average 
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: Katherine Johnson or Aqmar Rahman, AD/
CVD Operations, Office VIII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
4929 and (202) 482-0768, 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 incorporated by reference and hereby adopted by this 
notice.\2\
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    \1\ See Circular Welded Carbon-Quality Steel Pipe From the 
Sultanate of Oman: Affirmative Preliminary Determination of Sales at 
Less Than Fair Value and Postponement of Final Determination, 81 FR 
36871 (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 Sultanate of Oman,'' dated concurrently with this 
notice (Issues and Decision Memorandum).

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[[Page 75027]]

Scope of the Investigation

    The scope of the investigation covers CWP from Oman. 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, 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 the Tariff Act of 1930, as 
amended (the Act), in July and August 2016, we conducted verification 
of the sales and cost information submitted by Al Jazeera Steel 
Products Co. SAOG (Al Jazeera) 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 Al Jazeera.\3\
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    \3\ For discussion of our verification findings, see the 
following memoranda: Memorandum to the File from Katherine Johnson, 
Aqmar Rahman and Jesus Saenz, ``Verification of the Sales Responses 
of Al Jazeera Steel Products Co. SAOG in the Antidumping Duty 
Investigation of Circular Welded Carbon-Quality Steel Pipe from the 
Sultanate of Oman,'' dated August 31, 2016; and Memorandum to the 
File from Robert B. Greger, ``Verification of Al Jazeera Steel 
Products Co. SAOG in the Antidumping Duty Investigation of Circular 
Welded Carbon-Quality Steel Pipe from the Sultanate of Oman,'' dated 
August 22, 2016.
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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 Al 
Jazeera since the Preliminary Determination. For a discussion of these 
changes, see the Issues and Decision Memorandum.

Final Determination

    The final weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                    Exporter/Manufacturer                       dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Al Jazeera Steel Products Co. SAOG..........................        7.24
All-Others..................................................        7.24
------------------------------------------------------------------------

All-Others Rate

    Consistent with section 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, the ``All-Others'' rate is based on the weighted-average 
dumping margin calculated for Al Jazeera, the only company individually 
examined and for which the Department calculated a rate.\4\
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    \4\ See section 735(c)(5)(A) of the Act.
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Disclosure

    We will disclose the calculations performed to interested parties 
in this proceeding within five days of the public announcement of this 
final determination 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 Oman, 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.

International Trade Commission (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 Oman 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-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,

[[Page 75028]]

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:

------------------------------------------------------------------------
     O.D. in inches         Wall thickness in
       (nominal)             inches (nominal)              Gage
------------------------------------------------------------------------
            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 Issues
    1. Al Jazeera's Reported System Weights
    2. Al Jazeera's Pipe Coating Reporting
    3. Returned Sales in the Home Market Sales Database
    4. Reported Production Quantities
    5. Weighted-Average Costs
    6. General & Administrative Expense Ratio

[FR Doc. 2016-26108 Filed 10-27-16; 8:45 am]
 BILLING CODE 3510-DS-P