[Federal Register Volume 81, Number 209 (Friday, October 28, 2016)]
[Notices]
[Pages 75045-75047]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26114]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-535-904]


Circular Welded Carbon-Quality Steel Pipe From Pakistan: Final 
Affirmative Countervailing Duty Determination

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

SUMMARY: The U.S. Department of Commerce (the Department) determines 
that countervailable subsidies are being provided to exporters and 
producers of circular welded carbon-quality steel pipe (circular welded 
pipe) from Pakistan. For information on the estimated subsidy rates, 
see the ``Suspension of Liquidation'' section of this notice.

DATES: Effective October 28, 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:

Background

    The petitioners in this investigation are Bull Moose Tube Company, 
EXLTUBE, Wheatland Tube Company, and Western Tube and Conduit 
(collectively, Petitioners). In addition to the Government of Pakistan 
(GOP), the mandatory respondent in this investigation is International 
Industries Limited (IIL). The period of investigation (POI) is July 1, 
2014, through June 30, 2015.
    The Department published its Preliminary Determination on April 8, 
2016.\1\ A complete summary of the events that occurred since 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 for the Final Affirmative 
Determination in the Countervailing Duty Investigation of Circular 
Welded Carbon-Quality Steel Pipe from Pakistan,'' which is dated 
concurrently with and hereby adopted by this notice.\2\ The Issues and 
Decision Memorandum is a public document and is available 
electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (ACCESS). 
Access to ACCESS is available to registered users at https://access.trade.gov and to all parties in the Central Records Unit, room 
B8024 of the Department's main building. In addition, a complete 
version of the Issues and Decision Memorandum can be viewed at http://enforcement.trade.gov/frn. The signed Issues and Decision Memorandum 
and the electronic version are identical in content.
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    \1\ See 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, 81 FR 20619 (April 8, 2016) 
(Preliminary Determination).
    \2\ See Department Memorandum, ``Issues and Decision Memorandum 
for the Final Affirmative Determination in the Countervailing Duty 
Investigation of Circular Welded Carbon-Quality Steel Pipe from 
Pakistan,'' October 21, 2016 (Issues and Decision Memorandum).
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Methodology

    The Department conducted this countervailing duty (CVD) 
investigation in accordance with section 701 of the Tariff Act of 1930, 
as amended (the Act). For each of the subsidy programs found 
countervailable, we determine that there is a subsidy (i.e., a 
financial contribution by an ``authority'' that gives rise to a benefit 
to the recipient) and that the subsidy is specific.\3\ For a full 
description of the methodology underlying our conclusions, see the 
Issues and Decision Memorandum.
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    \3\ See section 771(5)(B) and (D) of the Act regarding financial 
contribution, section 771(5)(E) of the Act regarding benefit, and 
the section 771(5A) of the Act regarding specificity.
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Scope of the Investigation

    The product covered by this investigation is circular welded pipe 
from Pakistan. For a complete

[[Page 75046]]

description of the scope, see Appendix I to this notice.

Analysis of Subsidy Programs and Comments Received

    All issues raised in the comments filed by interested parties to 
this proceeding are discussed in the Issues and Decision Memorandum. A 
list of the issues raised by IIL and responded to by the Department in 
the Issues and Decision Memorandum is attached at Appendix II to this 
notice.

Use of Adverse Facts Available

    For purposes of this final determination, we have continued to rely 
on facts available with adverse inferences, in accordance with section 
776(a)-(d) of the Act, to calculate the subsidy rate for the mandatory 
respondent. For this final determination, we continue to find all 
programs in this proceeding countervailable. A full discussion of our 
decision to rely on adverse facts available is presented in the ``Use 
of Facts Otherwise Available and Adverse Inferences'' section of the 
Issues and Decision Memorandum.

Final Determination

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we have 
calculated a subsidy rate for IIL, the only individually investigated 
exporter/producer of the subject merchandise. Section 705(c)(5)(A)(ii) 
of the Act provides that, if the countervailable subsidy rates for all 
individually investigated exporters and producers are determined 
entirely in accordance with section 776 of the Act, the Department may 
use any reasonable method to establish an ``all-others'' rate for 
exporters and producers that were not individually investigated. As 
described above, IIL's subsidy rate was calculated entirely under 
section 776 of the Act. Therefore, consistent with section 
705(c)(5)(A)(ii) of the Act, we have resorted to ``any reasonable 
method'' to derive the all-others rate and are basing the all-others 
rate on the rate calculated for IIL. This method is consistent with the 
Department's past practice.\4\
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    \4\ See Preliminary Determination, 81 FR at 20620; see also 
Grain-Oriented Electrical Steel from the People's Republic of China: 
Final Affirmative Countervailing Duty Determination, 79 FR 59221, 
59222 (October 1, 2014) (assigning the sole mandatory respondent's 
rate, which was based on AFA, as the all-others rate); 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 to determine the 
all-others rate).
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    We determine the total estimated countervailable subsidy rates to 
be as follows:

------------------------------------------------------------------------
             Exporter/producer                    Net subsidy rate
------------------------------------------------------------------------
International Industries Limited..........  64.81 percent.
All-Others................................  64.81 percent.
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Suspension of Liquidation

    Pursuant to section 703(d) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of all entries of 
circular welded pipe from Pakistan, as described in the ``Scope of the 
Investigation,'' that were entered or withdrawn from warehouse for 
consumption on or after April 8, 2016, the date of publication of the 
Preliminary Determination in the Federal Register, and to require a 
cash deposit for such entries of merchandise.\5\ In accordance with 
section 703(d) of the Act, we issued instructions to CBP to discontinue 
the suspension of liquidation for CVD purposes in regard to subject 
merchandise entered or withdrawn from warehouse on or after August 6, 
2016, but to continue the suspension of liquidation of all entries from 
April 8, 2016, through August 5, 2016.
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    \5\ See Preliminary Determination, 81 FR at 20621.
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    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will reinstate the suspension of 
liquidation under section 706(a) of the Act, require a cash deposit of 
the estimated CVD duties for such entries in the amounts indicated 
above and issue a CVD order. If the ITC determines that material injury 
or threat of material injury does not exist, this proceeding will be 
terminated and all estimated duties deposited or securities posted as a 
result of the suspension of liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making all non-privileged 
and non-proprietary information related to this investigation available 
to the ITC. We will also allow the ITC to access 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 (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
such to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return or destruction 
of APO materials or, alternatively, conversion to judicial protective 
order, is hereby requested. Failure to comply with the regulations and 
terms of an APO is a violation that is subject to sanction.
    This determination is published pursuant to section 705(d) and 
777(i) 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, 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 this investigation. In particular, such 
multi-stenciled merchandise is covered when

[[Page 75047]]

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
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    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

Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Discussion of the Issues
    Issue 1: Non-Cooperation of IIL
    Issue 2: Corroboration of Secondary Information
VII. Conclusion

[FR Doc. 2016-26114 Filed 10-27-16; 8:45 am]
BILLING CODE 3510-DS-P