[Federal Register Volume 84, Number 31 (Thursday, February 14, 2019)]
[Notices]
[Pages 4046-4049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-02327]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-876]


Welded Line Pipe From the Republic of Korea: Preliminary Results 
of Antidumping Duty Administrative Review and Preliminary Determination 
of No Shipments; 2016-2017

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that producers and/or exporters subject to this administrative review 
made sales of subject merchandise at less than normal value (NV). 
Interested parties are invited to comment on these preliminary results 
of review.

DATES: Applicable February 14, 2019.

FOR FURTHER INFORMATION CONTACT: David Goldberger or Ross Belliveau, 
AD/CVD Operations, Office II, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-4136 or (202) 
482-4952, respectively.

Scope of the Order

    The merchandise subject to the order is welded line pipe.\1\ The 
product is currently classified under the following Harmonized Tariff 
Schedule of the United States (HTSUS) item numbers: 7305.11.1030, 
7305.11.1060, 7305.11.5000, 7305.12.1030, 7305.12.1060, 7305.12.5000, 
7305.19.1030, 7305.19.5000, 7306.19.1010, 7306.19.1050, 7306.19.5110, 
and 7306.19.5150. Although the HTSUS numbers are provided for 
convenience and for customs purposes, the written product description 
remains dispositive.
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    \1\ For a complete description of the Scope of the Order, see 
Memorandum, ``Decision Memorandum for the Preliminary Results of the 
2016-2017 Administrative Review of the Antidumping Duty Order on 
Welded Line Pipe from Korea,'' dated concurrently with, and hereby 
adopted by, this notice (Preliminary Decision Memorandum).

SUPPLEMENTARY INFORMATION: 

Background

    Commerce is conducting this review in accordance with section 
751(a) of the Tariff Act of 1930, as amended (the Act). On February 23, 
2018, based on timely requests for review, in accordance with 19 CFR 
351.221(c)(1)(i), we initiated an administrative review on welded line 
pipe from Korea.\2\ In August 2018, we extended the preliminary results 
of this review to no later than January 3, 2019.\3\ Commerce exercised 
its discretion to toll all deadlines affected by the partial federal 
government closure from December 22, 2018, through the resumption of 
operations on January 28, 2019.\4\ If the new deadline falls on a non-
business day, in accordance with Commerce's practice, the deadline will 
become the next business day. The revised deadline for the preliminary 
results of this review is now February 12, 2019. For a complete 
description of the events that followed the initiation of this review, 
see the Preliminary Decision Memorandum.
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    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 83 FR 8058 (February 23, 2018) (Initiation 
Notice).
    \3\ See Memorandum, ``Welded Line Pipe from the Republic of 
Korea: Extension of Deadline for Preliminary Results of 2016-2017 
Antidumping Duty Administrative Review,'' dated August 9, 2018.
    \4\ See Memorandum, ``Deadlines Affected by the Partial Shutdown 
of the Federal Government,'' dated January 28, 2019. All deadlines 
in this segment of the proceeding have been extended by 40 days.
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    Export price and constructed export price are calculated in 
accordance with section 772 of the Act. NV is calculated in accordance 
with section 773 of the Act. For a full description of the methodology 
underlying our conclusions, see the Preliminary Decision Memorandum. 
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 http://access.trade.gov, and 
to all

[[Page 4047]]

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 electronic versions of the 
Preliminary Decision Memorandum are identical in content. A list of the 
topics discussed in the Preliminary Decision Memorandum is attached as 
the Appendix to this notice.

Preliminary Determination of No Shipments

    Among the companies under review, HiSteel Co., Ltd. (HiSteel) 
properly filed a statement that it no shipments of subject merchandise 
to the United States during the POR.\5\ Based on its certification and 
our analysis of U.S. Customs and Border Protection (CBP) information, 
we preliminarily determine that HiSteel had no reviewable transactions 
during the POR. Consistent with our practice, we are not preliminarily 
rescinding the review with respect to HiSteel, but, rather, we will 
complete the review for HiSteel and issue appropriate instructions to 
CBP based on the final results of this review.\6\
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    \5\ See Letter from HiSteel Co., Ltd., ``Administrative Review 
of the Antidumping Order on Welded Line Pipe from Korea for the 
2016-17 Review Period--No Shipments Letter,'' dated March 26, 2018.
    \6\ See, e.g., Certain Frozen Warmwater Shrimp from Thailand; 
Preliminary Results of Antidumping Duty Administrative Review, 
Partial Rescission of Review, Preliminary Determination of No 
Shipments; 2012-2013, 79 FR 15951, 15952 (March 24, 2014), unchanged 
in Certain Frozen Warmwater Shrimp from Thailand: Final Results f 
Antidumping Duty Administrative Review, Final Determination of No 
Shipments, and Partial Rescission of Review; 2012-2013, 79 FR 51306, 
51307 (August 28, 2014).
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Preliminary Results of the Review

    As a result of this review, we preliminarily determine the 
following weighted-average dumping margins for the period December 1, 
2016, through November 30, 2017:

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                    Exporter/producer                     dumping margin
                                                             (percent)
------------------------------------------------------------------------
NEXTEEL Co., Ltd........................................           59.09
SeAH Steel Corporation..................................           26.47
------------------------------------------------------------------------

    Review-Specific Average Rate Applicable to the Following Companies: 
\7\
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    \7\ This rate is based on the weighted-average of the margins 
calculated for those companies selected for individual review using 
the publicly-ranged U.S. quantities. Because we cannot apply our 
normal methodology of calculating a weighted-average margin due to 
requests to protect business proprietary information, we find this 
rate to be the best proxy of the actual weighted-average margin 
determined for the mandatory respondents. See Ball Bearings and 
Parts Thereof from France, et al.: Final Results of Antidumping Duty 
Administrative Reviews, Final Results of Changed-Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661, 53663 
(September 1, 2010); see also Memorandum, ``Calculation of the 
Review-Specific Average Rate for the Preliminary Results,'' dated 
concurrently with this notice.

------------------------------------------------------------------------
                                                          Dumping margin
                    Exporter/producer                        (percent)
------------------------------------------------------------------------
AJU Besteel Co., Ltd....................................           41.53
BDP International, Inc..................................           41.53
Daewoo International Corporation........................           41.53
Dongbu Incheon Steel Co.................................           41.53
Dongbu Steel Co., Ltd...................................           41.53
Dongkuk Steel Mill......................................           41.53
Dong Yang Steel Pipe....................................           41.53
EEW Korea Co., Ltd......................................           41.53
Husteel Co., Ltd........................................           41.53
Hyundai RB Co. Ltd......................................           41.53
Hyundai Steel Company/Hyundai HYSCO.....................           41.53
Kelly Pipe Co., LLC.....................................           41.53
Keonwoo Metals Co., Ltd.................................           41.53
Kolon Global Corp.......................................           41.53
Korea Cast Iron Pipe Ind. Co., Ltd......................           41.53
Kurvers Piping Italy S.R.L..............................           41.53
MSTEEL Co., Ltd.........................................           41.53
Miju Steel MFG Co., Ltd.................................           41.53
Poongsan Valinox (Valtimet Division)....................           41.53
POSCO...................................................           41.53
POSCO Daewoo............................................           41.53
R&R Trading Co. Ltd.....................................           41.53
Sam Kang M&T Co., Ltd...................................           41.53
Sin Sung Metal Co., Ltd.................................           41.53
SK Networks.............................................           41.53
Soon-Hong Trading Company...............................           41.53
Steel Flower Co., Ltd...................................           41.53
TGS Pipe................................................           41.53
Tokyo Engineering Korea Ltd.............................           41.53
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[[Page 4048]]

Assessment Rates

    Upon completion of the administrative review, Commerce shall 
determine, and CBP shall assess, antidumping duties on all appropriate 
entries.
    Pursuant to 19 CFR 351.212(b)(1), where NEXTEEL Co., Ltd. (NEXTEEL) 
reported the entered value of its U.S. sales, we calculated importer-
specific ad valorem duty assessment rates based on the ratio of the 
total amount of dumping calculated for the examined sales to the total 
entered value of the sales for which entered value was reported. SeAH 
Steel Corporation (SeAH) did not report actual entered value for all of 
its U.S. sales; in such instances, we calculated entered value in order 
to determine the assessment rates. Where either the respondent's 
weighted-average dumping margin is zero or de minimis within the 
meaning of 19 CFR 351.106(c)(1), or an importer-specific rate is zero 
or de minimis, we will instruct CBP to liquidate the appropriate 
entries without regard to antidumping duties.
    For the companies which were not selected for individual review, we 
will assign an assessment rate based on the average \8\ of the cash 
deposit rates calculated for NEXTEEL and SeAH. In accordance with 
Commerce's practice, for entries of subject merchandise during the POR 
for which HiSteel did not know that the merchandise was destined for 
the United States, we will instruct CBP to liquidate such entries at 
the all-others rate if there is no rate for the intermediate 
company(ies) involved in the transaction. The final results of this 
review shall be the basis for the assessment of antidumping duties on 
entries of merchandise covered by the final results of this review and 
for future deposits of estimated duties, where applicable.\9\
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    \8\ This rate was calculated as discussed in footnote 7, above.
    \9\ See section 751(a)(2)(C) of the Act.
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    We intend to issue liquidation instructions to CBP 15 days after 
publication of the final results of this review.

Cash Deposit Requirements

    The following deposit requirements will be effective for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of this administrative review, as provided by section 
751(a)(2)(C) of the Act: (1) The cash deposit rate for each specific 
company listed above will be that established in the final results of 
this review, except if the rate is less than 0.50 percent and, 
therefore, de minimis within the meaning of 19 CFR 351.106(c)(1), in 
which case the cash deposit rate will be zero; (2) for previously 
investigated companies not participating in this review, the cash 
deposit will continue to be the company-specific rate published for the 
most recently completed segment of this proceeding in which the company 
participated; (3) if the exporter is not a firm covered in this review, 
or the original less-than-fair-value (LTFV) investigation, but the 
manufacturer is, the cash deposit rate will be the rate established for 
the most recent segment for the manufacturer of the merchandise; and 
(4) the cash deposit rate for all other manufacturers or exporters will 
continue to be 4.38 percent, the all-others rate established in the 
LTFV investigation.\10\ These deposit requirements, when imposed, shall 
remain in effect until further notice.
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    \10\ See Welded Line Pipe from the Republic of Korea and the 
Republic of Turkey: Antidumping Duty Orders, 80 FR 75056, 75057 
(December 1, 2015).
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Disclosure and Public Comment

    Commerce intends to disclose the calculations performed in 
connection with these preliminary results to interested parties within 
five days after the date of publication of this notice.\11\ Interested 
parties may submit case briefs not later than seven days after the date 
on which the last verification report is issued in this proceeding.\12\ 
Rebuttal briefs, limited to issues raised in the case briefs, may be 
filed no later than five days after the time limit for filing case 
briefs.\13\ Parties who submit case briefs or rebuttal briefs in this 
proceeding 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.\14\ Case and rebuttal briefs should be filed using 
ACCESS.\15\
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    \11\ See 19 CFR 351.224(b).
    \12\ See 19 CFR 351.309(c)(1)(ii).
    \13\ See 19 CFR 351.309(d)(1).
    \14\ See 19 CFR 351.309(c)(2) and (d)(2).
    \15\ See 19 CFR 351.303.
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing must submit a written request to the Assistant 
Secretary for Enforcement and Compliance, filed electronically via 
ACCESS. An electronically-filed document must be received successfully 
in its entirety by ACCESS by 5 p.m. Eastern Time within 30 days after 
the date of publication of this notice.\16\ Hearing requests should 
contain: (1) The party's name, address, and telephone number; (2) the 
number of participants; and (3) a list of issues to be discussed. 
Issues raised in the hearing will be limited to issues raised in the 
briefs. If a request for a hearing is made, parties will be notified of 
the time and date for the hearing to be held at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.\17\
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    \16\ See 19 CFR 351.310(c).
    \17\ Id.
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    Commerce intends to issue the final results of this administrative 
review, including the results of its analysis raised in any written 
briefs, not later than 120 days after the publication of these 
preliminary results in the Federal Register, unless otherwise 
extended.\18\
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    \18\ See Section 751(a)(3)(A) of the Act.
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Notification to Importers

    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 351.402(f) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in Commerce's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    We are issuing and publishing these results in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: February 7, 2019.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Preliminary Determination of No Shipments
V. Affiliation
VI. Discussion of the Methodology
    A. Comparisons to Normal Value
    1. Determination of Comparison Method
    2. Results of the Differential Pricing Analysis
    B. Product Comparisons
    C. Export Price and Constructed Export Price
    D. Normal Value
    1. Particular Market Situation
    2. Home Market Viability and Selection of Comparison Market
    3. Level of Trade
    4. Cost of Production Analysis
    5. Calculation of NV Based on CV
    E. Currency Conversion
VII. Duty Absorption

[[Page 4049]]

VIII. Recommendation

[FR Doc. 2019-02327 Filed 2-13-19; 8:45 am]
 BILLING CODE 3510-DS-P