[Federal Register Volume 84, Number 85 (Thursday, May 2, 2019)]
[Notices]
[Pages 18773-18775]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08951]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-898]


Large Diameter Welded Pipe From the Republic of Korea: 
Countervailing Duty Order

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

SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (Commerce) and the International Trade Commission (ITC), 
Commerce is issuing a countervailing duty order on large diameter 
welded carbon and alloy steel line and structural pipe from the 
Republic of Korea (Korea).

DATES: Applicable May 2, 2019.

FOR FURTHER INFORMATION CONTACT: George Ayache at (202) 482-2623 or 
Robert Palmer at (202) 482-9068, AD/CVD Operations, Enforcement and 
Compliance, U.S. Department of Commerce, 1401 Constitution Avenue NW, 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On February 27, 2019, Commerce published its affirmative final 
determination in the countervailing duty investigation of large 
diameter welded pipe from Korea.\1\ The scope of the investigation in 
Commerce's final determination covered large diameter welded carbon and 
alloy steel line pipe (welded line pipe), large diameter welded carbon 
and alloy steel structural pipe (welded structural pipe), and stainless 
steel large diameter welded pipe (stainless steel pipe) from Korea.\2\ 
As discussed below, the ITC subsequently found three domestic like 
products covered by the scope of the investigation (welded line pipe, 
welded structural pipe, and stainless steel pipe) and, accordingly, 
made a separate injury determination with respect to each domestic like 
product. On April 15, 2019, the ITC notified Commerce of its final 
determination, pursuant to section 705(d) of the Tariff Act of 1930, as 
amended (the Act), that an industry in the United States is materially 
injured within the meaning of section 705(b)(1)(A)(i) of the Act, by 
reason of subsidized imports of welded line pipe and welded structural 
pipe from Korea.\3\ Additionally, the ITC made a negative determination 
of material injury or threat of material injury with respect to 
stainless steel pipe.\4\ Commerce released draft revised scope language 
for comment by parties.\5\ No party objected to the revised scope 
language in this proceeding.
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    \1\ See Large Diameter Welded Pipe from the Republic of Korea: 
Final Affirmative Countervailing Duty Determination, 84 FR 6369 
(February 27, 2019) (Final Determination).
    \2\ Id.
    \3\ See ITC Notification Letter regarding ITC Investigation Nos. 
701-TA-595-596 and 731-TA-1401, 1403, 1405-1406, dated April 15, 
2019 (ITC Notification); see also Large Diameter Welded Pipe from 
Canada, Greece, Korea, and Turkey; Determinations, 84 FR 16533 
(April 19, 2019) (ITC Final Determination); and Large Diameter 
Welded Pipe from Canada, Greece, Korea, and Turkey Investigation 
Nos. 701-TA-595-596 and 731-TA-1401, 1403, 1405-1406 (Final), 
Publication 4883, April 2019 (Final ITC Report).
    \4\ See ITC Notification.
    \5\ See Memorandum, ``Comments on the Scope of the Orders,'' 
dated April 5, 2019.
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Scope of the Order

    The products covered by this order are welded line pipe and welded 
structural pipe from Korea. For a

[[Page 18774]]

complete description of the scope of this order, see the Appendix to 
this notice.

Countervailing Duty Order

    On April 15, 2019, in accordance with sections 705(b)(1)(A)(i) and 
705(d) of the Act, the ITC notified Commerce of its final determination 
in this investigation, in which it found that imports of welded line 
pipe and welded structural pipe from Korea are materially injuring a 
U.S. industry.\6\ As a result, and in accordance with sections 
705(c)(2) and 706 of the Act, we are publishing this countervailing 
duty order. As noted above, in its determination, the ITC found three 
domestic like products covered by the scope of the investigation: 
Welded line pipe, welded structural pipe, and stainless steel pipe. The 
ITC made a negative determination with respect to stainless steel pipe 
from Korea. The ITC made an affirmative determination with respect to 
welded line pipe and welded structural pipe from Korea. Because the ITC 
made distinct and different injury determinations for separate domestic 
like products, Commerce will instruct U.S. Customs and Border 
Protection (CBP) to assess countervailing duties on entries of welded 
line pipe and welded structural pipe (subject merchandise) from Korea, 
and not on entries of stainless steel pipe (excluded merchandise) from 
Korea.
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    \6\ See ITC Notification; and ITC Final Determination.
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Welded Line Pipe

    The Final ITC Report describes welded line pipe as a tubular 
product produced from carbon and alloy steel, produced to American 
Petroleum Institute (API) 5L specifications, and designed for conveying 
liquids and gases.\7\ Because the ITC determined that subsidized 
imports of welded line pipe from Korea are materially injuring a U.S. 
industry,\8\ all unliquidated entries of subject merchandise from 
Korea, entered or withdrawn from warehouse, are subject to the 
assessment of countervailing duties, as described below.
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    \7\ See Final ITC Report at 7.
    \8\ Id. at 1 and 5.
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    As a result of the ITC Final Determination, in accordance with 
section 706(a) of the Act, Commerce will direct CBP to assess, upon 
further instruction by Commerce, countervailing duties for all relevant 
entries of welded line pipe from Korea. Countervailing duties will be 
assessed on unliquidated entries of welded line pipe from Korea 
entered, or withdrawn from warehouse, for consumption on or after June 
29, 2018, the date of publication of the Preliminary Determination,\9\ 
but will not be assessed on entries occurring after the expiration of 
the provisional measures period, beginning on October 27, 2018, in 
accordance with section 703(d) of the Act, until the date of 
publication of the ITC Final Determination in the Federal Register.
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    \9\ See Large Diameter Welded Pipe from the Republic of Korea: 
Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Determination with Final Antidumping Duty 
Determination, 83 FR 30693 (June 29, 2018) (Preliminary 
Determination).
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Welded Structural Pipe

    The Final ITC Report describes welded structural pipe as a tubular 
product produced from carbon and alloy steel, produced to American 
Society for Testing and Materials (ASTM) specifications, and designed 
for support in construction projects and piling.\10\ Because the ITC 
determined that subsidized imports of welded structural pipe from Korea 
are materially injuring a U.S. industry,\11\ all unliquidated entries 
of subject merchandise from Korea, entered or withdrawn from warehouse, 
are subject to the assessment of countervailing duties, pursuant to 
section 706 of the Act, as described below.
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    \10\ See Final ITC Report at 7.
    \11\ Id. at 1 and 5.
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    As a result of the ITC Final Determination, in accordance with 
section 706(a) of the Act, Commerce will direct CBP to assess, upon 
further instruction by Commerce, countervailing duties for all relevant 
entries of welded structural pipe from Korea. Countervailing duties 
will be assessed on unliquidated entries of welded structural pipe from 
Korea entered, or withdrawn from warehouse, for consumption on or after 
June 29, 2018, the date of publication of the Preliminary 
Determination,\12\ but will not be assessed on entries occurring after 
the expiration of the provisional measures period, beginning on October 
27, 2018, in accordance with section 703(d) of the Act, until the date 
of publication of the ITC Final Determination in the Federal Register.
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    \12\ See Preliminary Determination.
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Stainless Steel Pipe

    The Final ITC Report describes stainless steel pipe as being 
produced from stainless steel for its high-chrome chemistry and 
corrosion-resistant properties.\13\ Because the ITC made a negative 
determination of material injury or threat of material injury by reason 
of subsidized imports of stainless steel pipe from Korea,\14\ Commerce 
will direct CBP to terminate the suspension of liquidation for entries 
of stainless steel pipe from Korea entered, or withdrawn from 
warehouse, and to refund all cash deposits with respect to these 
entries pursuant to section 705(c)(2) of the Act.
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    \13\ See Final ITC Report at 7.
    \14\ Id. at 1-2 and 5.
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Suspension of Liquidation

    In accordance with section 706 of the Act, Commerce will direct CBP 
to reinstitute the suspension of liquidation on all relevant entries of 
subject merchandise (i.e., welded line pipe and welded structural pipe) 
from Korea, effective the date of publication of the ITC Final 
Determination in the Federal Register, and to assess, upon further 
instruction by Commerce pursuant to section 706(a)(1) of the Act, 
countervailing duties for each entry of the subject merchandise in an 
amount based on the net countervailable subsidy rate for the subject 
merchandise. Because the net countervailable subsidy rate for Husteel 
Co., Ltd. (Husteel) and Hyundai Steel Company (Hyundai Steel) in the 
Final Determination was de minimis, entries of shipments of subject 
merchandise both produced and exported by Husteel and Hyundai Steel 
\15\ are not subject to suspension of liquidation or cash deposit 
requirements. Entries of subject merchandise exported to the United 
States by any other producer and exporter combination are not entitled 
to this exclusion from suspension of liquidation and are subject to the 
applicable cash deposit rates noted below.
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    \15\ For Hyundai Steel, entries of shipments of subject 
merchandise produced and exported by Hyundai Steel and/or entries of 
shipments of subject merchandise produced by Hyundai Steel and 
exported by Hyundai Corporation, an unaffiliated trading company for 
Hyundai Steel, are not subject to suspension of liquidation or cash 
deposit requirements. See Final Determination and accompanying 
Issues and Decision Memorandum at 12.
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    We intend to instruct CBP to require, at the same time as importers 
would normally deposit estimated import duties on this merchandise, 
cash deposits for each entry of subject merchandise equal to the rates 
noted below. These instructions suspending liquidation will remain in 
effect until further notice. The all-others rate applies to all other 
producers or exporters not specifically listed.

[[Page 18775]]



------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Husteel Co., Ltd........................................          * 0.01
Hyundai Steel Company \16\..............................          * 0.44
SeAH Steel Corporation \17\.............................           27.42
All Others..............................................            9.29
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* (de minimis)

Notifications to Interested Parties

    This notice constitutes the countervailing duty order with respect 
to welded line pipe and welded structural pipe from Korea pursuant to 
section 706(a) of the Act. Interested parties can find a list of 
countervailing duty orders currently in effect at http://enforcement.trade.gov/stats/iastats1.html.
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    \16\ Id.
    \17\ Commerce found the following company to be cross-owned with 
SeAH Steel: ESAB SeAH Corporation.
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    This order is published in accordance with sections 705(c) and 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: April 23, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

 Scope of the Order

    The merchandise covered by this order is welded carbon and alloy 
steel pipe (other than 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 order, 
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 order 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 order 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, 
7305.31.6090, 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 order is dispositive.

[FR Doc. 2019-08951 Filed 5-1-19; 8:45 am]
BILLING CODE 3510-DS-P