[Federal Register Volume 83, Number 73 (Monday, April 16, 2018)]
[Notices]
[Pages 16319-16322]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-07854]


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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: Final Affirmative Determination of Sales at 
Less Than Fair Value, Final Affirmative Determination of Critical 
Circumstances

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) 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: Effective April 16, 2018.

FOR FURTHER INFORMATION CONTACT: Annathea Cook, 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.

SUPPLEMENTARY INFORMATION: 

Background

    On November 22, 2017, Commerce published the Preliminary 
Determination in the Federal Register.\1\ The petitioners in this case 
are ArcelorMittal Tubular Products; Michigan Seamless Tube, LLC; 
Plymouth Tube Co. USA; PTC Alliance Corp.; Webco Industries, Inc.; and 
Zekelman Industries, Inc. (collectively, the petitioners). The 
mandatory respondents in this investigation are Sang Shin Ind. Co., 
Ltd. (Sang Shin) and Yulchon Co., Ltd. (Yulchon). Commerce exercised 
its discretion to toll all deadlines affected by the closure of the 
Federal Government from January 20 through 22, 2018. As a result, the 
revised deadline for the final determination of this investigation is 
now April 9, 2018.\2\
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    \1\ See 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, 82 FR 55564 (November 22, 2017) (Preliminary 
Determination) and accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum for The Record from Christian Marsh, Deputy 
Assistant Secretary for Enforcement and Compliance, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance, ``Deadlines Affected by the Shutdown of 
the Federal Government'' (Tolling Memorandum), dated January 23, 
2018. All deadlines in this segment of the proceeding have been 
extended by 3 days.
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    A summary of the events that occurred since Commerce 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 
accompanying Issues and Decision Memorandum.\3\ 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 http://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 Issues and Decision 
Memorandum can be accessed directly at http://enforcement.trade.gov. 
The signed and electronic versions of the Issues and Decision 
Memorandum are identical in content.
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    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination 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 
this determination and hereby adopted by this notice (Issues and 
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.

[[Page 16320]]

Scope Comments

    Certain interested parties commented on the scope of the 
investigation as it appeared in the Preliminary Scope Decision 
Memorandum.\4\ On December 4, 2017, the petitioners withdrew a portion 
of their comments regarding the scope language.\5\ Commerce addressed 
all scope comments received in the Final Scope Decision Memorandum.\6\
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    \4\ 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,'' dated November 15, 2017 (Preliminary Scope 
Decision Memorandum).
    \5\ See the petitioners' letter, ``Certain Cold-Drawn Mechanical 
Tubing from Germany et al.--EN-10305-3,'' dated December 4, 2017.
    \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 Decision Memorandum for the Final Determinations: 
Final Scope Decision Memorandum,'' dated December 4, 2017 (Final 
Scope Decision Memorandum).
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Period of Investigation

    The POI is April 1, 2016, through March 31, 2017.

Verification

    As provided in section 782(i) of the Act of 1930, as amended (the 
Act), Commerce conducted a verification of the sales data reported by 
Yulchon. We used standard verification procedures, including an 
examination of relevant accounting and production records, and original 
source documents provided by the respondents.\7\ Commerce did not 
conduct a cost verification as explained in the Issues and Decision 
Memorandum.\8\
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    \7\ See Memo to the File, ``Verification of the Sales Response 
of Yulchon in the Antidumping Investigation of Cold-Drawn Mechanical 
Tubing from the Republic of Korea,'' dated February 7, 2018 
(Verification Report).
    \8\ See Issues and Decision Memorandum at 2.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs that were 
submitted by interested parties in this investigation are addressed in 
the Issues and Decision Memorandum. A list of these issues is attached 
to this notice at Appendix II.

Use of Facts Available and Adverse Facts Available

    For purposes of this final determination, Commerce determined Sang 
Shin and Yulchon's margins on the basis of facts available with adverse 
inferences, pursuant to sections 776(a)(1) and 776(a)(2)(A), (B), (C), 
and (D), and 776(b) of the Act. For further information, see the Issues 
and Decision Memorandum.

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 a 
discussion of these changes, see the Issues and Decision Memorandum. 
Our determination for Sang Shin, to apply a margin based on total 
adverse facts available, remains unchanged from the Preliminary 
Determination.\9\
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    \9\ See Preliminary Determination, 82 FR at 55565; see also PDM 
at 15-19.
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All-Others Rate

    Sections 735(c)(1)(B)(i)(II) and 735(c)(5) of the Act provide that 
in the final determination, Commerce shall determine an estimated all-
others rate for all exporters and producers not individually 
investigated. 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 any margins determined entirely under 
section 776 of the Act. However, if all estimated weighted-average 
dumping margins for the individually investigated companies are zero, 
de minimis, or determined entirely under section 776 of the Act, then 
section 735(c)(5)(B) of the Act instructs that Commerce may use any 
reasonable method for determining the estimated all-others rate. 
Because both mandatory respondents in this investigation are receiving 
rates based entirely on facts available under section 776 of the Act, 
as ``any reasonable method'' pursuant to section 735(c)(5)(B) of the 
Act, we are assigning all other producers and exporters of the 
merchandise under consideration a rate based on a simple average of the 
petition margins.

Final Affirmative Determination of Critical Circumstances

    For the Preliminary Determination, Commerce found that critical 
circumstances exist with respect to imports of mechanical tubing from 
Sang Shin, but not from Yulchon or companies covered by the ``all 
others'' rate.\10\ We have made changes to our critical circumstances 
preliminary determination. For further discussion, see the Issues and 
Decision Memorandum at ``Final Affirmative Determination of Critical 
Circumstances.'' Thus, pursuant to 733(e)(1) of the Act and 19 CFR 
351.206, we find that critical circumstances exist with respect to 
subject merchandise produced or exported by Sang Shin, Yulchon, and 
``all others.''
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    \10\ Id. at 19-23.
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Final Determination

    The final estimated weighted-average dumping margins are as 
follows:

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                    Exporter/producer                         average
                                                          dumping margin
                                                             (percent)
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Sang Shin Ind. Co., Ltd.................................          *48.00
Yulchon Co., Ltd........................................          *48.00
All-Others..............................................           30.67
------------------------------------------------------------------------
* (AFA)

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)(4)(B) 4(i)(1)(A) of the Act, 
Commerce will instruct U.S. Customs and Border Protection (CBP) to 
modify the previously ordered suspension of liquidation for Yulchon and 
the companies subject to the ``all others'' rate, for all appropriate 
entries of mechanical tubing from Korea, as described in Appendix I of 
this notice, which were entered, or withdrawn from warehouse, for 
consumption on or after the date that is 90 days before November 22, 
2017, the date of publication of the Preliminary Determination. In 
accordance with section 735(c)(4)(A) of the Act, Commerce will instruct 
CBP to continue the previously ordered suspension of liquidation for 
all appropriate entries for Sang Shin.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), Commerce will instruct CBP to require a cash deposit for 
such entries of merchandise 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 
respondent-specific estimated weighted-average dumping margin 
determined in this final 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 respondent-specific estimated weighted-
average dumping margin established for that producer of the subject 
merchandise; and (3) the cash

[[Page 16321]]

deposit rate for all other producers and exporters will be equal to the 
all-others estimated weighted-average dumping margin.

ITC Notification

    In accordance with section 735(d) of the Act, we will notify the 
U.S. International Trade Commission (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 cold-drawn 
mechanical tubing from Korea 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, Commerce will issue an antidumping duty order 
directing CBP to assess, upon further instruction by Commerce, 
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, as discussed above in the 
``Continuation of Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice serves as a reminder to parties subject to 
administrative protective order (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 return/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 violation subject to 
sanction.

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: April 9, 2018.
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, in actual outside diameters less than 331 
mm, 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 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.
    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 10305-4, 
EN 10305-6 and European national variations on those standards 
(e.g., British Standard (BSEN), 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 the investigations.
    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

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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 Issues and Decisions Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Changes Since the Preliminary Determination
V. Use of Total Adverse Facts Available
VI. Final Affirmative Determination of Critical Circumstances
VII. Discussion of the Issues
    Issue 1: Findings at Yulchon's Verification
    Issue 2: Application of Total AFA to Yulchon
VIII. Recommendation


[FR Doc. 2018-07854 Filed 4-13-18; 8:45 am]
 BILLING CODE 3510-DS-P