[Federal Register Volume 84, Number 35 (Thursday, February 21, 2019)]
[Notices]
[Pages 5417-5419]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-02984]



[[Page 5417]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-520-807]


Circular Welded Carbon-Quality Steel Pipe From the United Arab 
Emirates: Preliminary Results of Antidumping Duty Administrative 
Review; 2016-2017

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that sales of circular welded carbon-quality steel pipe (CWP) from the 
United Arab Emirates (UAE) have been made below normal value. We invite 
interested parties to comment on these preliminary results.

DATES: Applicable February 21, 2019.

FOR FURTHER INFORMATION CONTACT: Manuel Rey or Whitley Herndon, 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) 482-5518 or (202) 482-6274, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    Commerce is conducting an administrative review of the antidumping 
duty order on CWP from the UAE. The notice of initiation of this 
administrative review was published on February 23, 2018.\1\ This 
review covers nine producers and exporters of the subject merchandise. 
The period of review is June 8, 2016 through November 30, 2017. 
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 29, 2019.\2\ 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 is now February 12, 2019.
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 83 FR 8058 (February 23, 2018) (Initiation 
Notice).
    \2\ 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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    Commerce selected two mandatory respondents for individual 
examination: Ajmal Steel Tubes & Pipes Ind. L.L.C. (Ajmal)/Noble Steel 
Industries L.L.C (Noble Steel) (collectively, Ajmal Steel) \3\ and 
Universal Tube and Plastic Industries, Ltd./THL Tube and Pipe 
Industries LLC (TTP)/KHK Scaffolding and Formwork LLC (collectively, 
Universal).\4\ In August 2018, Commerce extended the preliminary 
results of this review to no later than January 3, 2019.\5\
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    \3\ On December 11, 2018, we preliminarily collapsed Ajmal and 
Noble Steel. See Memorandum, ``Whether to Collapse Ajmal Steel Tubes 
and Pipes Ind. L.L.C. and Noble Steel Industries L.L.C. in the 2016-
2017 Antidumping Duty Administrative Review of Circular Welded 
Carbon-Quality Steel Pipe from the United Arab Emirates,'' dated 
December 11, 2018.
    \4\ On January 31, 2019, we preliminarily found that TTP is the 
successor-in-interest to Universal Tube and Pipe Industries Limited. 
See Memorandum, ``Successor-In-Interest Determination in the 2016-
2017 Antidumping Duty Administrative Review on Circular Welded 
Carbon-Quality Steel Pipe from the United Arab Emirates,'' dated 
January 31, 2019.
    \5\ See Memorandum, ``Circular Welded Carbon-Quality Steel Pipe 
from the United Arab Emirates: Extension of the Deadline for 
Preliminary Results of Antidumping Duty Administrative Review,'' 
dated August 23, 2018.
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Scope of the Order

    The merchandise subject to the order is welded carbon-quality steel 
pipes and tube, of circular cross-section, with an outside diameter not 
more than nominal 16 inches (406.4 mm), regardless of wall thickness, 
surface finish (e.g., black, galvanized or painted), end finish (plain 
end, beveled end, grooved, threaded, or threaded and coupled), or 
industry specification (e.g., American Society for Testing and 
Materials International (ASTM), proprietary, or other), generally known 
as standard pipe, fence pipe and tube, sprinkler pipe, and structural 
pipe (although subject product may also be referred to as mechanical 
tubing). The products subject to this order are currently classifiable 
in Harmonized Tariff Schedule of the United States (HTSUS) statistical 
reporting numbers 7306.19.1010, 7306.19.1050, 7306.19.5110, 
7306.19.5150, 7306.30.1000, 7306.30.5015, 7306.30.5020, 7306.30.5025, 
7306.30.5032, 7306.30.5040, 7306.30.5055, 7306.30.5085, 7306.30.5090, 
7306.50.1000, 7306.50.5030, 7306.50.5050, and 7306.50.5070. Although 
the HTSUS numbers are provided for convenience and for customs 
purposes, the written product description remains dispositive.\6\
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    \6\ 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 
Circular Welded Carbon-Quality Steel Pipe from the United Arab 
Emirates,'' dated concurrently with, and hereby adopted by, this 
notice (Preliminary Decision Memorandum).
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Methodology

    Commerce is conducting this review in accordance with section 
751(a)(1)(B) and (2) of the Tariff Act of 1930, as amended (the Act). 
Export price and constructed export price are calculated in accordance 
with section 772 of the Act. Normal value 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 https://access.trade.gov, and to all parties in the 
Central Records Unit, Room B8024 of the main 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 an Appendix to this notice.

Preliminary Results of the Review

    As a result of this review, we preliminarily determine that 
weighted-average dumping margins exist for the respondents for the 
period June 8, 2016, through November 30, 2017, as follows:

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                    Exporter/producer                     dumping margin
                                                             (percent)
------------------------------------------------------------------------
Ajmal Steel Tubes & Pipe Ind. L.L.C./Noble Steel                    5.28
 Industries L.L.C.......................................

[[Page 5418]]

 
Universal Tube and Plastic Industries, Ltd./Universal               1.65
 Tube and Pipe Industries Limited/THL Tube and Pipe
 Industries LLC \7\/KHK Scaffolding and Formwork LLC....
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    Review-Specific Average Rate Applicable to the Following Companies: 
\8\
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    \7\ As noted above, we preliminarily determined that THL Tube 
and Pipe Industries LLC is the successor-in-interest to Universal 
Tube and Pipe Industries Limited.
    \8\ This rate is based on the simple average margin using the 
publicly-ranged data calculated for those companies selected for 
individual review. 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).

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                    Exporter/producer                     dumping margin
                                                             (percent)
------------------------------------------------------------------------
Abu Dhabi Metal Pipes and Profiles Industries Complex...            3.47
Ferrolab LLC............................................            3.47
Global Steel Industries.................................            3.47
Lamprell................................................            3.47
Link Middle East Ltd....................................            3.47
PSL FZE.................................................            3.47
Three Star Metal Ind LLC................................            3.47
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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.\9\ Interested 
parties may submit case briefs to Commerce no later than 30 days after 
the date of publication of this notice.\10\ 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.\11\ 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.\12\ Case and 
rebuttal briefs should be filed using ACCESS.\13\
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    \9\ See 19 CFR 351.224(b).
    \10\ See 19 CFR 351.309(c).
    \11\ See 19 CFR 351.309(d).
    \12\ See 19 CFR 351.309(c)(2) and (d)(2).
    \13\ 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.\14\ 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.\15\
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    \14\ See 19 CFR 351.310(c).
    \15\ See 19 CFR 351.310(d).
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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 date of this 
notice, pursuant to section 751(a)(3)(A) of the Act, unless otherwise 
extended.\16\
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    \16\ See section 751(a)(3)(A) of the Act.
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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), because Ajmal Steel and Universal 
reported the entered value of their 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. 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. We intend 
to instruct CBP to take into account the ``provisional measures deposit 
cap,'' in accordance with 19 CFR 351.212(d).
    For the companies which were not selected for individual review, we 
will assign an assessment rate based on the average \17\ of the cash 
deposit rates calculated for Ajmal Steel and Universal, excluding any 
which are de minimis or determined entirely based on adverse facts 
available. 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.
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    \17\ This rate was calculated as discussed in footnote 7, above.
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    Commerce's ``automatic assessment'' practice will apply to entries 
of subject merchandise during the POR produced by companies included in 
these final results of review for which the reviewed

[[Page 5419]]

companies did not know that the merchandise they sold to the 
intermediary (e.g., a reseller, trading company, or exporter) was 
destined for the United States. In such instances, we will instruct CBP 
to liquidate unreviewed entries at the all-others rate if there is no 
rate for the intermediate company(ies) involved in the transaction.\18\
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    \18\ For a full discussion of this practice, see Antidumping and 
Countervailing Duty Proceedings: Assessment of Antidumping Duties, 
68 FR 23954 (May 6, 2003).
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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 the exporters 
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) 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 (3) the cash deposit rate for all other 
manufacturers or exporters will continue to be 5.95 percent, the all-
others rate made effective by the LTFV investigation.\19\ These deposit 
requirements, when imposed, shall remain in effect until further 
notice.
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    \19\ See Circular Welded Carbon-Quality Steel Pipe from the 
Sultanate of Oman, Pakistan, and the United Arab Emirates: Amended 
Final Affirmative Antidumping Duty Determination and Antidumping 
Duty Orders, 81 FR 91906 (December 19, 2016).
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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 and 19 CFR 351.221(b)(4).

    Dated: February 8, 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. Affiliation and Collapsing
V. Successor-in-Interest
VI. Companies Not Selected for Individual Examination
VII. Discussion of the Methodology
    A. Date of Sale
    B. Normal Value Comparisons
    C. Determination of Comparison Method
    D. Product Comparisons
    E. Export Price/Constructed Export Price
    F. Normal Value
    i. Home Market Viability and Comparison Market
    ii. Level of Trade
    iii. Affiliated-Party Transactions and Arm's-Length Test
    iv. Cost of Production (COP) Analysis
    1. Cost Averaging Methodology
    a. Significant of Cost Changes
    b. Linkage Between Sales and Cost Information
    2. Calculation of COP
    3. Test of Comparison Market Sales Prices
    4. Results of the COP Test
    v. Calculation of Normal Value Based on Comparison Market Prices
VIII. Currency Conversion
IX. Recommendation

[FR Doc. 2019-02984 Filed 2-20-19; 8:45 am]
 BILLING CODE 3510-DS-P