[Federal Register Volume 83, Number 220 (Wednesday, November 14, 2018)]
[Notices]
[Pages 56804-56805]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24805]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-078]


Countervailing Duty Investigation of Large Diameter Welded Pipe 
From the People's Republic of China: Final Affirmative 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 from the People's Republic of China (China).

DATES: Applicable November 14, 2018.

FOR FURTHER INFORMATION CONTACT: Justin Neuman at (202) 482-0486 or 
Benito Ballesteros at (202) 482-7425, AD/CVD Operations, 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 the 
Preliminary Determination of this countervailing duty (CVD) 
investigation and invited interested parties to comment.\1\ We received 
no comments from any interested parties.
---------------------------------------------------------------------------

    \1\ See Large Diameter Welded Pipe from the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Determination with Final Antidumping 
Determination, 83 FR 30695 (June 29, 2018) (Preliminary 
Determination).
---------------------------------------------------------------------------

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 China. For a full description of the scope of this 
investigation, see the ``Scope of the Investigation,'' at the Appendix 
to this notice.

Scope Comments

    During the course of this investigation and the concurrent LTFV 
investigations of large diameter welded pipe from Canada, Greece, 
Korea, China and Turkey, and the concurrent countervailing duty 
investigations of large diameter welded pipe from India, Korea and 
Turkey, Commerce received numerous scope comments from interested 
parties. We issued a Preliminary Scope Decision Memorandum \2\ to 
address these comments. Further, in the Preliminary Determination, we 
set aside a period of time for parties to address scope issues in scope 
case and rebuttal briefs. 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.
---------------------------------------------------------------------------

    \2\ See Memorandum, ``Scope Comments Decision Memorandum for the 
Preliminary Determinations,'' dated June 19, 2018 (Preliminary Scope 
Decision Memorandum).
---------------------------------------------------------------------------

Use of Adverse Facts Available

    As noted above, we received no comments pertaining to the 
Preliminary Determination. As stated in the Preliminary Determination, 
we found that the mandatory respondents in this investigation, Hefei 
Zijin Steel Tube Manufacturing Co., Hefei Ziking Steel Pipe, and Panyu 
Chu Kong Steel Pipe Co. Ltd., did not cooperate to the best of their 
abilities and, accordingly, we determined it appropriate to apply facts 
otherwise available with adverse inferences, in accordance with section 
776(a)-(b) of the Tariff Act of 1930, as amended (the Act).\3\ For this 
final determination, Commerce has made no

[[Page 56805]]

changes to the Preliminary Determination.
---------------------------------------------------------------------------

    \3\ See Preliminary Determination.
---------------------------------------------------------------------------

All-Others Rate

    As discussed in the Preliminary Determination, Commerce based the 
selection of the ``All-Others'' rate on the countervailable subsidy 
rate established for the mandatory respondents in accordance with 
section 705(c)(5)(A)(ii) of the Act.\4\ We made no changes to the 
selection of this rate for this final determination.
---------------------------------------------------------------------------

    \4\ Id.
---------------------------------------------------------------------------

Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Hefei Zijin Steel Tube Manufacturing Co.................          198.49
Hefei Ziking Steel Pipe.................................          198.49
Panyu Chu Kong Steel Pipe Co. Ltd.......................          198.49
All-Others..............................................          198.49
------------------------------------------------------------------------

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 directed 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 of this notice 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 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, 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.

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 such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Notification Regarding Administrative Protective Orders

    This notice will serve as a reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the disposition of propriety information disclosed under APO 
in accordance with 19 CFR 351.305(a)(3). Timely written notification of 
return or 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 sanctionable violation.

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 5, 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

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.

[FR Doc. 2018-24805 Filed 11-13-18; 8:45 am]
 BILLING CODE 3510-DS-P