[Federal Register Volume 82, Number 224 (Wednesday, November 22, 2017)]
[Notices]
[Pages 55564-55567]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-25290]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-892]


Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel 
From the Republic of Korea: Preliminary Affirmative Determination of 
Sales at Less Than Fair Value, Preliminary Affirmative Determination of 
Critical Circumstances, in Part, Postponement of Final Determination, 
and Extension of Provisional Measures

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that certain cold-drawn mechanical tubing of carbon and 
alloy steel (mechanical tubing) from the Republic of Korea (Korea) is 
being, or is likely to be, sold in the United States at less than fair 
value (LTFV). The period of investigation (POI) is April 1, 2016, 
through March 31, 2017.

DATES: Applicable November 22, 2017.

FOR FURTHER INFORMATION CONTACT: Annathea Cook or Javier Barrientos, 
AD/CVD Operations, Office V, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW., Washington, DC 20230; telephone: (202) 482-0250 or (202) 
482-2243, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). The Department 
published the notice of initiation of this investigation on May 16, 
2017.\1\ On September 12, 2017, the Department postponed the 
preliminary determination of this investigation until November 15, 
2017.\2\ For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\3\ A list of topics included in the Preliminary Decision 
Memorandum is included as Appendix II to this notice. 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 https://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/. The signed and the electronic versions of the Preliminary 
Decision Memorandum are identical in content.
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    \1\ See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy 
Steel from the Federal Republic of Germany, India, Italy, the 
Republic of Korea, the People's Republic of China, and Switzerland: 
Initiation of Less-Than-Fair-Value Investigations, 82 FR 22491 (May 
16, 2017) (Initiation Notice).
    \2\ See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy 
Steel from the Federal Republic of Germany, India, Italy, the 
Republic of Korea, the People's Republic of China, and Switzerland: 
Postponement of Preliminary Determinations in the Less-Than-Fair-
Value Investigations, 82 FR 42788 (September 12, 2017).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination and Affirmative Determinaion of Critical 
Circumstances, in Part, in the Less-Than-Fair-Value Investigation of 
Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from 
the Republic of Korea'' dated concurrently with, and hereby adopted 
by, this notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is mechanical tubing from 
Korea. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the preamble to the Department's regulations,\4\ 
the Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. For a summary of the product coverage comments 
and rebuttal responses submitted to the record for this preliminary 
determination, and accompanying discussion and analysis of all comments 
timely received, see the Preliminary

[[Page 55565]]

Scope Decision Memorandum.\6\ The Department is preliminarily modifying 
the scope language as it appeared in the Initiation Notice. See the 
revised scope in Appendix I to this notice.
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    \4\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \5\ See Initiation Notice, 82 FR at 22491.
    \6\ See Memorandum, ``Certain Cold-Drawn Mechanical Tubing of 
Carbon and Alloy Steel from the Federal Republic of Germany, India, 
Italy, the Republic of Korea, the People's Republic of China, and 
Switzerland: Scope Comments Decision Memorandum for the Preliminary 
Determinations'' (Preliminary Scope Decision Memorandum), dated 
November 15, 2017.
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Methodology

    The Department is conducting this investigation in accordance with 
section 731 of the Act. Export prices were calculated in accordance 
with section 772(a) of the Act. Normal value (NV) was calculated in 
accordance with section 773 of the Act. Furthermore, pursuant to 
section 776(a) and (b) of the Act, the Department has preliminarily 
relied upon facts otherwise available, with adverse inferences for Sang 
Shin Ind. Co., Ltd. (Sang Shin). For a full description of the 
methodology underlying the preliminary determination, see the 
Preliminary Decision Memorandum.

Preliminary Affirmative Determination of Critical Circumstances

    In accordance with section 733(e) of the Act and 19 CFR 351.206, we 
preliminarily find that critical circumstances do not exist for Yulchon 
Co., Ltd. (Yulchon) and for the companies subject to the ``all others'' 
rate. Additionally, because Sang Shin did not respond to the 
Department's questionnaire, we have determined pursuant to sections 
776(a) and (b) of the Act, that critical circumstances exist for Sang 
Shin as adverse facts available (AFA). For a full description of the 
methodology and results of our critical circumstances analysis, see the 
Preliminary Decision Memorandum.

Adverse Facts Available

    Sang Shin was selected as a mandatory respondent, but failed to 
respond to the Department's questionnaire. Accordingly, we 
preliminarily determine to base Sang Shin's dumping margin on AFA, in 
accordance with sections 776(a) and (b) of the Act and 19 CFR 351.308. 
As AFA, we applied the highest dumping margin calculated for Korean 
exports of subject merchandise contained in the petition,\7\ 48.00 
percent. For further discussion, see the Preliminary Decision 
Memorandum.
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    \7\ See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy 
Steel from the Federal Republic of Germany, India, Italy, the 
Republic of Korea, the People's Republic of China, and Switzerland: 
Initiation of Less-Than-Fair-Value Investigations, 82 FR 22491 (May 
16, 2017).
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All-Others Rate

    Sections 733(d)(1)(A)(ii) and 735(c)(5)(A) of the Act provide that 
in the preliminary determination the Department shall determine an 
estimated all-others rate for all exporters and producers not 
individually examined. This 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.
    The Department calculated an individual estimated weighted-average 
dumping margin for Yulchon, the only individually examined exporter/
producer in this investigation. Because the only individually 
calculated dumping margin is not zero, de minimis, or based entirely on 
facts otherwise available, the estimated weighted-average dumping 
margin calculated for Yulchon is the margin assigned to all-other 
producers and exporters, pursuant to section 735(c)(5)(A) of the Act.

Preliminary Determination

    The Department preliminarily determines that the following 
estimated weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                    Exporter/producer                         average
                                                          dumping margin
                                                             (percent)
------------------------------------------------------------------------
Sang Shin Ind. Co., Ltd.................................           48.00
Yulchon Co., Ltd........................................            5.10
All-Others..............................................            5.10
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, the Department 
will direct U.S. Customs and Border Protection (CBP) to suspend 
liquidation of entries of subject merchandise, as described in Appendix 
I, entered, or withdrawn from warehouse, for consumption on or after 
the date of publication of this notice in the Federal Register. 
Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR 
351.205(d), the Department will instruct CBP to require a cash deposit 
equal to the estimated weighted-average dumping margin or the estimated 
all-others rate, as follows: (1) The cash deposit rate for the 
respondents listed above will be equal to the company-specific 
estimated weighted-average dumping margins determined in this 
preliminary determination; (2) if the exporter is not a respondent 
identified above, but the producer is, then the cash deposit rate will 
be equal to the company-specific estimated weighted-average dumping 
margin established for that producer of the subject merchandise; and 
(3) the cash deposit rate for all other producers and exporters will be 
equal to the all-others estimated weighted-average dumping margin.
    Section 733(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, any suspension of liquidation 
shall apply to unliquidated entries of subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after the later of (a) 
the date which is 90 days before the date on which the suspension of 
liquidation was first ordered, or (b) the date on which notice of 
initiation of the investigation was published. The Department 
preliminarily finds that critical circumstances exist for imports of 
subject merchandise produced or exported by Sang Shin. In accordance 
with section 733(e)(2)(A) of the Act, the suspension of liquidation 
shall apply to unliquidated entries of shipments of subject merchandise 
from the producer or exporter identified in this paragraph that were 
entered, or withdrawn from warehouse, for consumption on or after the 
date which is 90 days before the publication of this notice. These 
suspension of liquidation instructions will remain in effect until 
further notice.

Disclosure

    The Department intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of any public announcement or, if there is no public 
announcement, within five days of the date of publication of this 
notice in accordance with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, the Department intends 
to verify the information relied upon in making its final 
determination.

Public Comment

    The Department is setting different deadlines for scope-related 
case and rebuttal briefs, and case and rebuttal briefs addressing all 
other issues.
    Scope briefs may be submitted to the Assistant Secretary for 
Enforcement and Compliance no later than five days after the 
publication of the preliminary AD determinations for the PRC, Germany, 
India, Italy, Korea, and Switzerland in the Federal Register. Rebuttal 
scope

[[Page 55566]]

briefs, limited to issues raised in the scope case briefs, may be 
submitted no later than three days after the deadline for the scope 
case briefs. These deadlines, which are based on publication in the 
Federal Register of the preliminary determinations in the AD 
investigations of cold-drawn mechanical tubing, apply for both the on-
going CVD and AD investigations. There is only one briefing schedule 
for scope case and rebuttal briefs in the CVD and AD investigations. 
For all scope issues, parties must file separate and identical 
documents on the records of all of the ongoing CVD and AD cold-drawn 
mechanical tubing investigations. No new factual information should be 
included in scope case briefs or rebuttal scope briefs, and no 
proprietary information should be submitted in the scope case briefs 
and rebuttal scope briefs.
    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing on the revised scope, limited to issues raised in the 
scope case and rebuttal briefs, must submit a written request to the 
Assistant Secretary for Enforcement and Compliance, U.S. Department of 
Commerce, separate from the hearing on issues raised in case briefs, 
within five days after the date of publication of this notice. Requests 
should contain the party's name, address, and telephone number, the 
number of participants, whether any participant is a foreign national, 
and a list of the issues to be discussed. If a request for a hearing is 
made, the Department intends to hold the hearing at the U.S. Department 
of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230, at a 
time and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.
    Scope comments may only be included in the scope case brief and 
scope rebuttal brief. Should this investigation result in an order, 
interested parties may submit requests for a scope ruling after the 
issuance of any such order.
    Case briefs or other non-scope written comments may be submitted to 
the Assistant Secretary for Enforcement and Compliance no later than 
seven days after the date on which the last verification report is 
issued in this investigation, unless the Secretary alters the time 
limit. Rebuttal briefs, limited to issues raised in case briefs, may be 
submitted no later than five days after the deadline date for case 
briefs.\8\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who 
submit case briefs or rebuttal briefs in this investigation are 
encouraged to submit with each argument: (1) A statement of the issue; 
(2) a brief summary of the argument; and (3) a table of authorities. 
Pursuant to 19 CFR 351.310(c), interested parties who wish to request a 
hearing, limited to issues raised in the case and rebuttal briefs, must 
submit a written request to the Assistant Secretary for Enforcement and 
Compliance, U.S. Department of Commerce, within 30 days after the date 
of publication of this notice. Requests should contain the party's 
name, address, and telephone number, the number of participants, 
whether any participant is a foreign national, and a list of the issues 
to be discussed. If a request for a hearing is made, the Department 
intends to hold the hearing at the U.S. Department of Commerce, 1401 
Constitution Avenue NW., Washington, DC 20230, at a time and date to be 
determined. Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.
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    \8\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioner. Section 351.210(e)(2) of the Department's regulations 
requires that a request by exporters for postponement of the final 
determination be accompanied by a request for extension of provisional 
measures from a four-month period to a period not more than six months 
in duration.
    On November 13, 2017, pursuant to 19 CFR 351.210(e), ArcelorMittal 
Tubular Products, Michigan Seamless Tube, LLC, Plymouth Tube Co. USA, 
PTC Alliance Corp., Webco Industries, Inc., and Zekelman Industries, 
Inc., (the petitioners) and Yulchon requested that the Department 
postpone the final determination and that provisional measures be 
extended to a period not to exceed six months.9 10 In 
accordance with section 735(a)(2)(A) of the Act and 19 CFR 
351.210(b)(2)(ii), because: (1) The preliminary determination is 
affirmative; (2) the requesting exporter accounts for a significant 
proportion of exports of the subject merchandise; and (3) no compelling 
reasons for denial exist, the Department is postponing the final 
determination and extending the provisional measures from a four-month 
period to a period not greater than six months. Accordingly, the 
Department will make its final determination no later than 135 days 
after the date of publication of this preliminary determination.
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    \9\ See Letter from ArcelorMittal Tubular Products, Michigan 
Seamless Tube, LLC, Plymouth Tube Co. USA, PTC Alliance Corp., Webco 
Industries, Inc., and Zekelman Industries, Inc., ``Re: Certain Cold-
Drawn Mechanical Tubing of Carbon and Alloy Steel from China. 
Germany, India, Italy, Korea and Switzerland--Petitioners' Comments 
Resarding Extension the Final Determination Deadline,'' dated 
November 13, 2017.
    \10\ See Letter fromYulchon Co., Ltd., ``Re: Cold-Drawn 
Mechanical Tubing from Korea,'' dated November 14, 2017.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, the Department will 
notify the International Trade Commission (ITC) of its preliminary 
determination. If the final determination is affirmative, the ITC will 
determine before the later of 120 days after the date of this 
preliminary determination or 45 days after the final determination 
whether these imports are materially injuring, or threaten material 
injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

    Dated: November 15, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation covers cold-drawn mechanical 
tubing of carbon and alloy steel (cold-drawn mechanical tubing) of 
circular cross-section, 304.8 mm or more in length, in actual 
outside diameters less than 331mm, and regardless of wall thickness, 
surface finish, end finish or industry specification. The subject 
cold-drawn mechanical tubing is a tubular product with a circular 
cross-sectional shape that has been cold-drawn or otherwise cold-
finished after the initial tube formation in a manner that involves 
a change in the diameter or wall thickness of the tubing, or both. 
The subject cold-drawn mechanical tubing may be

[[Page 55567]]

produced from either welded (e.g., electric resistance welded, 
continuous welded, etc.) or seamless (e.g., pierced, pilgered or 
extruded, etc.) carbon or alloy steel tubular products. It may also 
be heat treated after cold working. Such heat treatments may 
include, but are not limited to, annealing, normalizing, quenching 
and tempering, stress relieving or finish annealing. Typical cold-
drawing methods for subject merchandise include, but are not limited 
to, drawing over mandrel, rod drawing, plug drawing, sink drawing 
and similar processes that involve reducing the outside diameter of 
the tubing with a die or similar device, whether or not controlling 
the inside diameter of the tubing with an internal support device 
such as a mandrel, rod, plug or similar device. Other cold-finishing 
operations that may be used to produce subject merchandise include 
cold-rolling and cold-sizing the tubing.
    Subject cold-drawn mechanical tubing is typically certified to 
meet industry specifications for cold-drawn tubing including but not 
limited to:
    (1) American Society for Testing and Materials (ASTM) or 
American Society of Mechanical Engineers (ASME) specifications ASTM 
A-512, ASTM A-513 Type 3 (ASME SA513 Type 3), ASTM A-513 Type 4 
(ASME SA513 Type 4), ASTM A-513 Type 5 (ASME SA513 Type 5), ASTM A-
513 Type 6 (ASME SA513 Type 6), ASTM A-519 (cold-finished);
    (2) SAE International (Society of Automotive Engineers) 
specifications SAE J524, SAE J525, SAE J2833, SAE J2614, SAE J2467, 
SAE J2435, SAE J2613;
    (3) Aerospace Material Specification (AMS) AMS T-6736 (AMS 
6736), AMS 6371, AMS 5050, AMS 5075, AMS 5062, AMS 6360, AMS 6361, 
AMS 6362, AMS 6371, AMS 6372, AMS 6374, AMS 6381, AMS 6415;
    (4) United States Military Standards (MIL) MIL-T-5066 and MIL-T-
6736;
    (5) foreign standards equivalent to one of the previously listed 
ASTM, ASME, SAE, AMS or MIL specifications including but not limited 
to:
    (a) German Institute for Standardization (DIN) specifications 
DIN 2391-2, DIN 2393-2, DIN 2394-2);
    (b) European Standards (EN) EN 10305-1, EN 10305-2, EN 10305-3, 
EN 10305-4, EN 10305-6 and European national variations on those 
standards (e.g., British Standard (BS EN), Irish Standard (IS EN) 
and German Standard (DIN EN) variations, etc.);
    (c) Japanese Industrial Standard (JIS) JIS G 3441 and JIS G 
3445; and
    (6) proprietary standards that are based on one of the above-
listed standards.
    The subject cold-drawn mechanical tubing may also be dual or 
multiple certified to more than one standard. Pipe that is multiple 
certified as cold-drawn mechanical tubing and to other 
specifications not covered by this scope, is also covered by the 
scope of this investigation when it meets the physical description 
set forth above.
    Steel products included in the scope of this investigation are 
products in which: (1) Iron predominates, by weight, over each of 
the other contained elements; and (2) the carbon content is 2 
percent or less by weight.
    For purposes of this scope, the place of cold-drawing determines 
the country of origin of the subject merchandise. Subject 
merchandise that is subject to minor working in a third country that 
occurs after drawing in one of the subject countries including, but 
not limited to, heat treatment, cutting to length, straightening, 
nondestruction testing, deburring or chamfering, remains within the 
scope of this investigation.
    All products that meet the written physical description are 
within the scope of this investigation unless specifically excluded 
or covered by the scope of an existing order. Merchandise that meets 
the physical description of cold-drawn mechanical tubing above is 
within the scope of the investigation even if it is also dual or 
multiple certified to an otherwise excluded specification listed 
below. The following products are outside of, and/or specifically 
excluded from, the scope of this investigation:
    (1) Cold-drawn stainless steel tubing, containing 10.5 percent 
or more of chromium by weight and not more than 1.2 percent of 
carbon by weight;
    (2) products certified to one or more of the ASTM, ASME or 
American Petroleum Institute (API) specifications listed below:
     ASTM A-53;
     ASTM A-106;
     ASTM A-179 (ASME SA 179);
     ASTM A-192 (ASME SA 192);
     ASTM A-209 (ASME SA 209);
     ASTM A-210 (ASME SA 210);
     ASTM A-213 (ASME SA 213);
     ASTM A-334 (ASME SA 334);
     ASTM A-423 (ASME SA 423);
     ASTM A-498;
     ASTM A-496 (ASME SA 496);
     ASTM A-199;
     ASTM A-500;
     ASTM A-556;
     ASTM A-565;
     API 5L; and
     API 5CT

except that any cold-drawn tubing product certified to one of the 
above excluded specifications will not be excluded from the scope if 
it is also dual- or multiple-certified to any other specification 
that otherwise would fall within the scope of this investigation.
    The products subject to the investigation are currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under item numbers: 7304.31.3000, 7304.31.6050, 
7304.51.1000, 7304.51.5005, 7304.51.5060, 7306.30.5015, 
7306.30.5020, 7306.50.5030. Subject merchandise may also enter under 
numbers 7306.30.1000 and 7306.50.1000. The HTSUS subheadings above 
are provided for convenience and 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. Period of Investigation
IV. Scope Comments
V. Particular Market Situation
VI. Discussion of the Methodology
    A. Determination of the Comparison Method
    B. Results of the Differential Pricing Analysis
VII. Date of Sale
VIII. Product Comparisons
IX. Export Price
X. Normal Value
    A. Home Market Viability
    B. Affiliated-Party Transactions and Arm's-Length Test
    C. Level of Trade
    D. Cost of Production (COP) Analysis
    1. Calculation of COP
    2. Test of Comparison Market Sales Prices
    3. Results of the COP Test
    D. Calculation of NV Based on Comparison Market Prices
    E. Calculation of NV Based on Constructed Value
XI. Use of Facts Otherwise Available and Adverse Inferences
    A. Application of Facts Available
    B. Use of Adverse Inference
XII. Critical Circumstances
XIII. Currency Conversion
XIV. Conclusion

[FR Doc. 2017-25290 Filed 11-21-17; 8:45 am]
 BILLING CODE 3510-DS-P