[Federal Register Volume 84, Number 39 (Wednesday, February 27, 2019)]
[Notices]
[Pages 6362-6364]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03317]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-489-833]
Large Diameter Welded Pipe From the Republic of Turkey: Final
Determination of Sales at Less Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that imports
of large diameter welded pipe (welded pipe) from the Republic of Turkey
(Turkey) are being, or are likely to be, sold in the United States at
less than fair value (LTFV) for the period of investigation (POI)
January 1, 2017, through December 31, 2017.
DATES: Applicable February 27, 2019.
FOR FURTHER INFORMATION CONTACT: Rebecca M. Janz or William Miller, 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) 482-2972 or (202)
482-3906, respectively.
SUPPLEMENTARY INFORMATION:
Background
On August 27, 2018, Commerce published in the Federal Register the
Preliminary Determination of sales at LTFV of welded pipe from Turkey,
in which we also postponed the final determination until January 9,
2019.\1\ We invited interested parties to comment on the Preliminary
Determination. 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, which is adopted by this
notice.\2\
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\1\ See Large Diameter Welded Pipe from the Republic of Turkey:
Preliminary Determination of Sales at Less Than Fair Value and
Postponement of Final Determination, 83 FR 43646 (August 27, 2018)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum.
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Less-Than-Fair-Value
Investigation of Large Diameter Welded Pipe from the Republic of
Turkey,'' dated concurrently with, and hereby adopted by, this
notice (Issues and Decision Memorandum).
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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.\3\ 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 final determination of this investigation is now
February 19, 2019.
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\3\ 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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Scope of the Investigation
The product covered by this investigation is welded pipe from
Turkey. 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 of welded pipe from Canada, Greece, the Republic of
Korea (Korea), and the People's Republic of China (China), and the
concurrent countervailing duty investigations of welded pipe from
China, India, Korea, and Turkey, Commerce received scope comments from
interested parties. Commerce issued a Preliminary Scope Decision
Memorandum \4\ 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. 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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\4\ See Memorandum, ``Scope Comments Decision Memorandum for the
Preliminary Determinations,'' dated June 19, 2018 (Preliminary Scope
Decision Memorandum).
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Analysis of Comments Received
All issues raised in the case and rebuttal briefs submitted by
parties in this investigation are addressed in the Issues and Decision
Memorandum accompanying this notice. A list of the issues addressed in
the Issues and Decision Memorandum is attached to this notice as
Appendix II. 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 https://access.trade.gov, and it is available to all parties in the Central
Records Unit, room B-8024 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/index.html. The signed and electronic versions of the Issues and
Decision Memorandum are identical in content.
Verification
As provided in section 782(i) of the Tariff Act of 1930, as
amended, (the Act), in September and October 2018, we conducted
verifications of the sales and cost information submitted by Borusan
Mannesmann Boru Sanayi ve Ticaret A.S. (Borusan) and HDM Celik Boru
Sanayi ve Ticaret A.S. (HDM Celik) for use in our final determination.
We used standard verification procedures, including an examination of
relevant accounting and production records, and original source
documents provided by Borusan and HDM Celik.\5\
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\5\ For discussion of our verification findings, see Memorandum,
``Verification of the Sales Response of Borusan Mannesmann Boru
Sanayi ve Ticaret A.S. (Borusan) in the Antidumping Investigation of
Large Diameter Welded Pipe from the Republic of Turkey,'' dated
October 22, 2018; Memorandum, ``Verification of the Sales Response
of HDM Celik Ticaret Sanayi A.S. (HDM Celik) in the Antidumping
Investigation of Large Diameter Welded Pipe from the Republic of
Turkey,'' dated October 22, 2018; Memorandum, ``Verification of the
Cost Response of HDM Celik Boru Sanayi ve Ticaret A.S. in the
Antidumping Duty Investigation of Large Diameter Welded Pipe from
the Republic of Turkey,'' dated October 22, 2018; and Memorandum,
``Verification of the Cost Response of Borusan Mannesmann Boru
Sanayi ve Ticaret A.S. (BMB), in the Antidumping Duty Investigation
of Large Diameter Welded Pipe (LDWP) from Turkey,'' dated November
1, 2018.
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[[Page 6363]]
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
the respondents, Borusan and HDM Celik. For a discussion of these
changes, see the ``Margin Calculations'' section of the Issues and
Decision Memorandum.
All-Others Rate
Section 735(c)(5)(A) of the Act provides that the estimated
weighted-average dumping margin for all-other producers and exporters
not individually investigated shall be equal to the weighted average of
the estimated weighted-average dumping margins established for
exporters and producers individually investigated excluding rates that
are zero, de minimis, or determined entirely under section 776 of the
Act. In this investigation, Commerce calculated estimated weighted-
average dumping margins for Borusan and HDM Celik that are not zero, de
minimis, or based entirely on facts otherwise available. Commerce
calculated the all-others' rate using a weighted average of the
estimated weighted-average dumping margins calculated for the examined
respondents using each company's publicly-ranged values for the
merchandise under consideration.\6\
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\6\ With two respondents under examination, Commerce normally
calculates (A) a weighted average of the estimated weighted-average
dumping margins calculated for the examined respondents; (B) a
simple average of the estimated weighted-average dumping margins
calculated for the examined respondents; and (C) a weighted average
of the estimated weighted-average dumping margins calculated for the
examined respondents using each company's publicly-ranged U.S. sale
values for the merchandise under consideration. Commerce then
compares (B) and (C) to (A) and selects the rate closest to (A) as
the most appropriate rate for all other producers and exporters. See
Ball Bearings and Parts Thereof from France, Germany, Italy, Japan,
and the United Kingdom: 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 All-
Others Rate for the Final Determination,'' dated concurrently with
this notice.
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Final Determination
The final estimated weighted-average dumping margins are as
follows:
------------------------------------------------------------------------
Cash deposit
Weighted- rate (adjusted
Exporter or producer average for subsidy
dumping margin offset(s))
(percent) (percent)
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Borusan Mannesmann Boru Sanayi ve 4.55 0.00
Ticaret A.S............................
HDM Celik Boru Sanayi ve Ticaret A.S.... 5.05 4.05
All Others.............................. 4.68 3.68
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Disclosure
We intend to disclose the calculations performed in this final
determination within five days of the date of publication of this
notice to parties in this proceeding in accordance with 19 CFR
351.224(b).
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, for this final
determination, we will direct U.S. Customs and Border Protection (CBP)
to continue to suspend liquidation of all entries of welded pipe, as
described in Appendix I of this notice, which are entered, or withdrawn
from warehouse, for consumption on or after August 27, 2018, the date
of publication in the Federal Register of the affirmative Preliminary
Determination.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR
351.210(d), we will instruct CBP to require a cash deposit for such
entries of merchandise equal to the estimated weighted-average dumping
margin 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 deposit rate for all other
producers and exporters will be equal to the all-others estimated
weighted-average dumping margin. These suspension of liquidation
instructions will remain in effect until further notice.
Further, we will instruct CBP to require a cash deposit equal to
the estimated amount by which the normal value exceeds the U.S. price
as shown above, adjusted where appropriate for export subsidies found
in the final determination of the companion countervailing duty
investigation.\7\ Consistent with our longstanding practice, where the
product under investigation is also subject to a concurrent
countervailing duty investigation, we will instruct CBP to require a
cash deposit equal to the amount by which the normal value exceeds the
U.S. price, less the amount of the countervailing duty determined to
constitute any export subsidies.\8\
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\7\ See Modification of Regulations Regarding the Practice of
Accepting Bonds During the Provisional Measures Period in
Antidumping and Countervailing Duty Investigations, 76 FR 61042
(October 3, 2011).
\8\ See, e.g., Welded Line Pipe from the Republic of Turkey:
Final Determination of Sales at Less Than Fair Value, 80 FR 61362
(October 13, 2015); and Notice of Final Determination of Sales at
Less Than Fair Value and Negative Critical Circumstances
Determination: Bottom Mount Combination Refrigerator-Freezers from
the Republic of Korea, 77 FR 17413 (March 26, 2012).
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Therefore, in the event that a countervailing duty order is issued
and suspension of liquidation is resumed in the companion
countervailing duty investigation on welded pipe from Turkey, Commerce
will instruct CBP to require cash deposits adjusted by the amount of
export subsidies, as appropriate. These adjustments are reflected in
the final column of the rate chart, above. Until such suspension of
liquidation is resumed in the companion countervailing duty
investigation, and so long as suspension of liquidation continues under
this antidumping duty investigation, the cash deposit rates for this
antidumping
[[Page 6364]]
duty investigation will be the rates identified in the estimated
weighted-average dumping margin column in the rate chart, above.
International Trade Commission Notification
In accordance with section 735(d) of the Act, we will notify the
International Trade Commission (ITC) of the final affirmative
determination of sales at LTFV. 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.
Because Commerce's final determination 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, or sales (or the likelihood of sales) for importation of
welded pipe from Turkey no later than 45 days after this final
determination. If the ITC determines that such injury does not exist,
this 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 an
administrative protective order (APO) of their responsibility
concerning the disposition of proprietary 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 the terms of an APO is a sanctionable
violation.
Notification to Interested Parties
This determination and this notice are issued and published
pursuant to sections 735(d) and 777(i)(1) of the Act and 19 CFR
351.210(c).
Dated: February 19, 2019.
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.
Excluded from the scope are any products covered by the existing
antidumping duty order on welded line pipe from the Republic of
Turkey. See Welded Line Pipe from the Republic of Korea and the
Republic of Turkey: Antidumping Duty Orders, 80 FR 75056 (December
1, 2015).
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. Scope of the Investigation
IV. Margin Calculations
V. Adjustment for Countervailable Export Subsidies
VI. Discussion of the Issues
1. Allegation of a Particular Market Situation (PMS) in Turkey
2. Borusan's U.S. Date of Sale
3. Borusan's Late Delivery Penalty
4. Borusan's Affiliated Freight Expenses
5. Borusan's Affiliated Freight Expense Adjustments
6. Borusan's Domestic Warehousing Revenue
7. Borusan's Fees for Vehicle Purchases
8. Errors in Borusan's Margin Calculations
9. Borusan's Cost Reporting
10. Borusan's Surrogate COPs
11. HDM Celik's Extra Revenues
12. HDM Celik's Depreciation and Unused Vacation Expenses
VII. Recommendation
[FR Doc. 2019-03317 Filed 2-26-19; 8:45 am]
BILLING CODE 3510-DS-P