[Federal Register Volume 83, Number 220 (Wednesday, November 14, 2018)]
[Notices]
[Pages 56819-56821]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24804]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-882]


Large Diameter Welded Pipe From India: Final Affirmative 
Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers/exporters of 
large diameter welded pipe welded pipe from India.

DATES: Applicable November 14, 2018.

FOR FURTHER INFORMATION CONTACT: Robert Palmer at (202) 482-9068 or 
Suzanne Lam at (202) 482-0783, AD/CVD Operations, Office VIII, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230.

SUPPLEMENTARY INFORMATION:

Background

    On June 29, 2018, Commerce published in the Federal Register its 
affirmative Preliminary Determination of this countervailing duty (CVD) 
investigation and invited interested parties to comment.\1\ 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 Issues and 
Decision Memorandum issued concurrently with this notice.\2\ 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 
is available 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/frn/. The signed and electronic 
versions of the Issues and Decision Memorandum are identical in 
content.
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    \1\ See Large Diameter Welded Pipe from India: Preliminary 
Affirmative Countervailing Duty Determination and Alignment of Final 
Determination with Final Antidumping Duty Determination, 83 FR 30690 
(June 29, 2018) (Preliminary Determination) and accompanying 
Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination of the Countervailing Duty 
Investigation of Large Diameter Welded Pipe from India'' (Issues and 
Decision Memorandum), dated concurrently with this determination and 
hereby adopted by this notice.
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Period of Investigation

    The period of investigation is January 1, 2017, through December 
31, 2017.

Scope of the Investigation

    The product covered by this investigation is large diameter welded 
pipe from India. For a full description of the scope of this 
investigation, see the ``Scope of the Investigation'' in Appendix I of 
this notice.

Scope Comments

    During the course of this investigation and the concurrent LTFV 
investigations

[[Page 56820]]

of large diameter welded pipe from Canada, Greece, Korea, the People's 
Republic of China (China) and Turkey, and the concurrent countervailing 
duty investigations of large diameter welded pipe from China, India, 
Korea and Turkey, Commerce received scope comments from interested 
parties. Commerce issued a Preliminary Scope Decision Memorandum \3\ to 
address these comments. In the Preliminary Determination, Commerce set 
aside a period of time for parties to address scope issues in scope 
case and rebuttal briefs.\4\ No interested parties submitted scope 
comments in scope case or scope rebuttal briefs. Therefore, for this 
final determination, the scope of this investigation remains unchanged 
from that published in the Preliminary Determination.
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    \3\ See Memorandum, ``Scope Comments Decision Memorandum for the 
Preliminary Determinations,'' dated June 19, 2018 (Preliminary Scope 
Decision Memorandum).
    \4\ See Large Diameter Welded Pipe from India: Preliminary 
Determination of Sales at Less Than Fair Value, 83 FR 43653 (August 
27, 2018).
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Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum. A list of the issues 
that parties raised, and to which we responded in the Issues and 
Decision Memorandum, is attached to this notice at Appendix II.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Tariff Act of 1930, as amended (the Act). For each of the 
subsidy programs found countervailable, Commerce determines 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.\5\ For a full description of the methodology underlying our 
final determination, see the Issues and Decision Memorandum.
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    \5\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    In making these findings, Commerce relied, in part, on facts 
otherwise available and, because it finds that both respondents and the 
Government of India did not act to the best of their ability to respond 
to Commerce's requests for information, it drew an adverse inference 
where appropriate in selecting from among the facts otherwise 
available.\6\ For further information, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Issues and Decision 
Memorandum.
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    \6\ See sections 776(a), (b), and 782(d) of the Act.
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Final Determination

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated an individual rate for each producer/exporter of the subject 
merchandise individually investigated. In accordance with section 
705(c)(5)(A) of the Act, for companies not individually investigated, 
we apply an ``all-others'' rate, which is normally calculated by 
weighting the subsidy rates of the individual companies selected as 
mandatory respondents by those companies'' exports of the subject 
merchandise to the United States. Under section 705(c)(5)(A)(i) of the 
Act, the all-others rate excludes zero and de minimis rates calculated 
for the exporters and producers individually investigated, as well as 
rates based entirely on facts otherwise available. Section 
705(c)(5)(A)(ii) of the Act provides that if the countervailable 
subsidy rate established for all exporters and producers individually 
investigated are zero, de minimis, or determined entirely in accordance 
with section 776 of the Act, Commerce may use any reasonable method to 
establish an all-others rate for exporters and producers not 
individually investigated. In this case, the estimated countervailable 
subsidy rate calculated for the investigated companies is based 
entirely on facts available under section 776 of the Act. There is no 
other information on the record upon which to determine an all-others 
rate. As a result, we have used the rate assigned to Bhushan Steel and 
Welspun Trading Limited as the all-others rate. This method is 
consistent with the Department's past practice.\7\
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    \7\ See, e.g., Certain Carbon and Alloy Steel Cut-to-Length 
Plate from the People's Republic of China: Final Affirmative 
Countervailing Duty Determiniation, 82 FR 8507, 8508 (January 26, 
2017).
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    Commerce determines that the following estimated countervailable 
subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Bhushan Steel...........................................          541.15
Welspun Trading Limited.................................          541.15
All-Others..............................................          541.15
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Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
section 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S. 
Customs and Border Protection (CBP) to suspend liquidation of entries 
of subject merchandise as described in the scope of the investigation 
section entered, or withdrawn from warehouse, for consumption on or 
after the date of publication in the Federal Register. In accordance 
with section 703(d) of the Act, we issued instructions to CBP to 
discontinue the suspension of liquidation for countervailing duty (CVD) 
purposes for subject merchandise entered, or withdrawn from warehouse, 
on or after October 27, 2018, but to continue the suspension of 
liquidation of all entries from June 29, 2018, through October 26, 
2018.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order, will 
reinstate the suspension of liquidation under section 706(a) of the 
Act, and will require a cash deposit of estimated countervailing duties 
for such entries of subject merchandise in the amounts indicated above. 
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.

Disclosure

    Normally, Commerce discloses calculations performed for a final 
determination within five days of its 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). However, Commerce 
applied AFA in determining the estimated countervailable subsidy rate 
for the individually examined companies (Bhushan Steel and Welspun 
Trading Limited) in this investigation, in accordance with section 776 
of the Act. Because our calculation of the AFA subsidy rate is outlined 
in Appendix I of the Preliminary Decision Memorandum, and because we 
made no changes to the Preliminary Determination, there are no further 
calculations to disclose.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, Commerce will notify 
the ITC of its determination. In addition, we are making available to 
the ITC all non-privileged and non-proprietary information related to 
this investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose

[[Page 56821]]

such information, either publicly or under an administrative protective 
order (APO), without the written consent of the Assistant Secretary for 
Enforcement and Compliance. Because Commerce's final determination is 
affirmative, in accordance with section 705(b) 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 large diameter welded pipe from India 
no later than 45 days after this final determination.

Notification Regarding Administrative Protective Orders

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject 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/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation which is subject to sanction.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act and 19 CFR 351.210(c).

    Dated: November 1, 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 merchandise covered by this investigation is welded carbon 
and alloy steel pipe (including stainless steel pipe), more than 
406.4 mm (16 inches) in nominal outside diameter (large diameter 
welded pipe), regardless of wall thickness, length, surface finish, 
grade, end finish, or stenciling. Large diameter welded pipe may be 
used to transport oil, gas, slurry, steam, or other fluids, liquids, 
or gases. It may also be used for structural purposes, including, 
but not limited to, piling. Specifically, not included is large 
diameter welded pipe produced only to specifications of the American 
Water Works Association (AWWA) for water and sewage pipe.
    Large diameter welded pipe used to transport oil, gas, or 
natural gas liquids is normally produced to the American Petroleum 
Institute (API) specification 5L. Large diameter welded pipe may 
also be produced to American Society for Testing and Materials 
(ASTM) standards A500, A252, or A53, or other relevant domestic 
specifications, grades and/or standards. Large diameter welded pipe 
can be produced to comparable foreign specifications, grades and/or 
standards or to proprietary specifications, grades and/or standards, 
or can be non-graded material. All pipe meeting the physical 
description set forth above is covered by the scope of this 
investigation, whether or not produced according to a particular 
standard.
    Subject merchandise also includes large diameter welded pipe 
that has been further processed in a third country, including but 
not limited to coating, painting, notching, beveling, cutting, 
punching, welding, or any other processing that would not otherwise 
remove the merchandise from the scope of the investigation if 
performed in the country of manufacture of the in-scope large 
diameter welded pipe.
    The large diameter welded pipe that is subject to this 
investigation is currently classifiable in the Harmonized Tariff 
Schedule of the United States (HTSUS) under subheadings 
7305.11.1030, 7305.11.1060, 7305.11.5000, 7305.12.1030, 
7305.12.1060, 7305.12.5000, 7305.19.1030, 7305.19.1060, 
7305.19.5000, 7305.31.4000, 7305.31.6010, 7305.31.6090, 7305.39.1000 
and 7305.39.5000. While the HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the 
scope of this investigation is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Use of Facts Otherwise Available and Adverse Inferences
IV. Analysis of Programs
V. Analysis of Comments
    Comment 1: Whether Commerce Properly Applied AFA in the 
Preliminary Determination
    Comment 2: Whether Commerce Should Continue to Find the AAP, 
DDB, EPCG, and MEIS Programs Countervailable
VI. Conclusion

 [FR Doc. 2018-24804 Filed 11-13-18; 8:45 am]
 BILLING CODE 3510-DS-P