[Federal Register Volume 84, Number 39 (Wednesday, February 27, 2019)]
[Notices]
[Pages 6367-6369]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03344]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-489-834]


Large Diameter Welded Pipe From the Republic of Turkey: 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 and exporters 
of large diameter welded pipe (welded pipe) from the Republic of Turkey 
(Turkey).

DATES: Applicable February 27, 2019.

FOR FURTHER INFORMATION CONTACT: Ross Belliveau or Ajay Menon, 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) 482-4952, or (202) 482-1993, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    The petitioners in this investigation are American Cast Iron Pipe 
Company, Berg Steel Pipe Corp./Berg Spiral Pipe Corp, Dura-Bond 
Industries, Skyline Steel, Stupp Corporation, Greens Bayou Pipe Mill, 
LP, JSW Steel (USA) Inc., and Trinity Products LLC (collectively, the 
petitioners). In addition to the Government of Turkey, the mandatory 
respondents in this investigation are Borusan Mannesmann Boru Sanayi ve 
Ticaret A.S. (Borusan) and HDM Celik Boru Sanayi ve Ticaret A.S. (HDM 
Celik).
    The events that occurred since Commerce published the Preliminary 
Determination \1\ on June 29, 2018, are discussed in the Issues and 
Decision Memorandum, which is hereby adopted by this notice.\2\ The 
Issues and Decision Memorandum also details the changes we made since 
the Preliminary Determination to the subsidy rates calculated for the 
mandatory respondents and all other producers/exporters. 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/index.html. The signed Issues and Decision 
Memorandum and the electronic version of the Issues and Decision 
Memorandum are identical in content.
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    \1\ See Large Diameter Welded Pipe from the Republic of Turkey: 
Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Determination with Final Antidumping Duty 
Determination, 83 FR 30697 (June 29, 2018) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Large Diameter Welded Pipe from the Republic of Turkey,'' dated 
concurrently with this determination (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 to the Record from 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, ``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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Period of Investigation

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

Scope of the Investigation

    The scope of the investigation is welded pipe from Turkey. For a 
complete description of the scope of the investigation, see Appendix I.

Scope Comments

    During the course of this investigation and the concurrent less-
than-fair-value investigations of large diameter welded pipe from 
Canada, Greece, Korea, the People's Republic of China (China), and 
Turkey, and the concurrent countervailing duty (CVD) 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 to address these 
comments.\4\ In the Preliminary

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Determination, Commerce set aside a period of time for parties to 
address scope issues in scope case and rebuttal briefs.\5\ No 
interested parties submitted comments regarding the Preliminary Scope 
Decision Memorandum. 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).
    \5\ 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).
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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 as 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.\6\ For a full description of the methodology underlying our 
final determination, see the Issues and Decision Memorandum.
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    \6\ 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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Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), during July 2018, Commerce verified the subsidy information 
reported by the Government of Turkey, Borusan, and HDM Celik. We used 
standard verification procedures, including an examination of relevant 
accounting records and original source documents provided by the 
respondents.\7\
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    \7\ See Memoranda: ``Verification of the Questionnaire Responses 
of the Government of Turkey (GOT),'' dated September 17, 2018; 
``Verification of the Questionnaire Responses of Verification of the 
Questionnaire Responses of Borusan Mannesmann Boru Sanayi ve Ticaret 
A.S. (Borusan),'' dated October 2, 2018; and ``Verification of the 
Questionnaire Responses of HDM Celik (HDM Celik),'' dated October 5, 
2018.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties and corrections presented at verification, we made certain 
changes to the respondents' subsidy rate calculations. As a result of 
these changes, Commerce has also revised the ``all-others'' rate. For a 
discussion of these changes, see the Issues and Decision Memorandum and 
the Final Analysis Memoranda.\8\
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    \8\ See Memoranda: ``Countervailing Duty Investigation of Large 
Diameter Welded Pipe from Turkey: Final Determination Calculation 
Memorandum for Borusan,'' dated concurrently with this notice; and 
``Countervailing Duty Investigation of Large Diameter Welded Pipe 
from Turkey: Final Determination Calculation Memorandum for HDM 
Celik,'' dated concurrently with this notice.
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Final Determination

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
calculated a rate for Borusan and HDM Celik. Section 705(c)(5)(A)(i) of 
the Act states that, for companies not individually investigated, we 
will determine an ``all others'' rate equal to the weighted-average 
countervailable subsidy rates established for exporters and producers 
individually investigated, excluding any zero and de minimis 
countervailable subsidy rates, and any rates determined entirely under 
section 776 of the Act. In the final determination of this 
investigation, Commerce calculated a de minimis rate for Borusan. 
Therefore, the only rate that is not zero, de minimis, or based 
entirely on facts otherwise available is the rate calculated for HDM 
Celik. Consequently, the rate calculated for HDM Celik is also assigned 
as the rate for ``all other'' producers and exporters.
    Commerce determines the total estimated net countervailable subsidy 
rates to be:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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HDM [Ccedil]elik Boru Sanayi ve Ticaret A.S \9\.........            3.72
Borusan Mannesmann Boru Sanayi ve Ticaret A.S \10\......          * 0.92
All-Others..............................................            3.72
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* (de minimis)

Disclosure

    Commerce will disclose the calculations performed within five days 
of the date of publication of this notice to parties in this proceeding 
in accordance with 19 CFR 351.224(b).
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    \9\ Commerce found the following company to be cross-owned with 
HDM Celik: HDM Spiral Kaynakli Celik Boru A.S.
    \10\ Commerce found the following companies to be cross-owned 
with Borusan: Borusan Mannesmann Boru Yatirim Holding A.S., and 
Borusan Holding A.S.
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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 of the Preliminary Determination 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 26, 2018, but to continue the suspension 
of liquidation of all entries from June 29, 2018, through October 25, 
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 
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.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our 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.
    Because the final determination in this proceeding 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 welded pipe from Turkey no later than 45 days 
after our final determination. If

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the ITC determines that material injury or threat of material injury 
does not exist, the proceeding will be terminated and all cash deposits 
will be refunded. If the ITC determines that such injury does exist, 
Commerce will issue a CVD order directing CBP to assess, upon further 
instruction by Commerce, countervailing duties on all imports of the 
subject merchandise, other than those produced and exported by Borusan 
because its rate is de minimis, that are 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

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to the 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.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    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 
countervailing duty order on welded line pipe from the Republic of 
Turkey. See Welded Line Pipe from the Republic of Turkey: 
Countervailing Duty Order, 80 FR 75054 (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
    Case History
    Period of Investigation
    Scope of the Investigation
III. Subsidies Valuation Information
    A. Allocation Period
    B. Attribution of Subsidies
    C. Denominators
    D. Loan Interest Rate Benchmarks and Discount Rates
IV. Analysis of Programs
    A. Programs Determined to Be Countervailable
    B. Programs Determined Not To Provide Countervailable Benefits 
During the POI
    C. Programs Determined Not To Be Used During the POI
    D. Programs Determined To Be Not Countervailable in this 
Investigation
V. Analysis of Comments
    Comment 1: Using Production Data Provided by the Government of 
Turkey in Analysis of Market Distortion
    Comment 2: The Appropriate Methodology To Calculate a ``Tier 2'' 
Benchmark
    Comment 3: Application of Adverse Facts Available to the 
Deduction From Taxable Income for Export Revenue Program
    Comment 4: Deducting Guarantee Fees in Calculating the Benefit 
for the Rediscount Program
    Comment 5: Verification Corrections for Borusan and HDM Celik
VI. Recommendation

[FR Doc. 2019-03344 Filed 2-26-19; 8:45 am]
BILLING CODE 3510-DS-P