[Federal Register Volume 84, Number 85 (Thursday, May 2, 2019)]
[Notices]
[Pages 18771-18773]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08952]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-489-834]
Large Diameter Welded Pipe From the Republic of Turkey:
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 structural pipe from the Republic of
Turkey (Turkey).
DATES: Applicable May 2, 2019.
FOR FURTHER INFORMATION CONTACT: Ross Belliveau at (202) 482-4952 or
Ajay Menon at (202) 482-1993, 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 Turkey.\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
[[Page 18772]]
stainless steel large diameter welded pipe (stainless steel pipe) from
Turkey.\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
structural pipe from Turkey.\3\ Additionally, the ITC made a
negligibility determination with respect to welded line pipe and
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 Turkey:
Final Affirmative Countervailing Duty Determination, 84 FR 6367
(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 product covered by this order is welded structural pipe from
Turkey. For a 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
structural pipe from Turkey 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 found that imports
of welded line pipe and stainless steel pipe from Turkey are
negligible. The ITC made an affirmative determination with respect to
welded structural pipe from Turkey. 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 structural pipe
(subject merchandise) from Turkey, and not on entries of welded line
pipe and stainless steel pipe (excluded merchandise) from Turkey.
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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 Turkey are negligible,\8\ Commerce
will direct CBP to terminate the suspension of liquidation for entries
of welded line pipe from Turkey 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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\7\ See Final ITC Report at 7.
\8\ Id. at 1 and 5.
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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.\9\ Because the ITC
determined that subsidized imports of welded structural pipe from
Turkey are materially injuring a U.S. industry,\10\ all unliquidated
entries of subject merchandise from Turkey, 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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\9\ Id. at 7.
\10\ 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 Turkey. Countervailing duties
will be assessed on unliquidated entries of welded structural pipe from
Turkey entered, or withdrawn from warehouse, for consumption on or
after June 29, 2018, the date of publication of the Preliminary
Determination,\11\ 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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\11\ See Large Diameter Welded Pipe from the Republic of Turkey:
Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination with Final Antidumping
Determination, 83 FR 30697 (June 29, 2018) (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.\12\ Because the ITC determined that
subsidized imports of stainless steel pipe from Turkey are
negligible,\13\ Commerce will direct CBP to terminate the suspension of
liquidation for entries of stainless steel pipe from Turkey 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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\12\ See Final ITC Report at 7.
\13\ 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 structural pipe) from Turkey,
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 Borusan Mannesmann Boru Sanayi ve
Ticaret A.S. (Borusan) in the Final Determination was de minimis,
entries of shipments of subject merchandise both produced and exported
by Borusan 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.
We intend to instruct CBP to require, at the same time as importers
would normally deposit estimated import duties on this merchandise,
cash
[[Page 18773]]
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.
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Company Subsidy rate (percent)
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HDM Celik Boru Sanayi ve Ticaret 3.72.
A.S.\14\.
Borusan Mannesmann Boru Sanayi ve 0.92 (de minimis).
Ticaret A.S.\15\.
All Others............................. 3.72.
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Notifications to Interested Parties
This notice constitutes the countervailing duty order with respect
to welded structural pipe from Turkey 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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\14\ Commerce found the following company to be cross-owned with
HDM Celik: HDM Spiral Kaynakli Celik Boru A.S.
\15\ 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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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.
James Maeder,
Associate Deputy Assistant Secretary for Antidumping and Countervailing
Duty Operations performing the duties of Deputy Assistant Secretary for
Antidumping and Countervailing Duty Operations.
Appendix
Scope of the Order
The merchandise covered by this order is welded carbon and alloy
steel structural pipe (other than stainless steel pipe), more than
406.4 mm (16 inches) in nominal outside diameter (large diameter
welded structural pipe), regardless of wall thickness, length,
surface finish, grade, end finish, or stenciling. Large diameter
welded structural pipe may 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 structural pipe may 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 structural 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 structural pipe meeting the physical
description set forth above, including any dual- or multiple-
certified/stenciled pipe with an ASTM (or comparable) welded
structural pipe certification/stencil, is covered by the scope of
this order.
Subject merchandise also includes large diameter welded
structural 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 structural pipe.
Excluded from the scope of this order is line pipe which is
suitable for transporting oil, gas, slurry, steam, or other fluids,
liquids, or gases, and is normally produced to American Petroleum
Institute (API) specification 5L or equivalent foreign
specifications grades and/or standards or to proprietary
specifications, grades and/or standards. Also 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 structural pipe that is subject to
this order is currently classifiable in the Harmonized Tariff
Schedule of the United States (HTSUS) under subheadings
7305.31.4000, 7305.31.6090, 7305.39.1000 and 7305.39.5000.
Merchandise currently classifiable 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, and 7305.19.5000 and that
otherwise meets the above scope language is also covered. While the
HTSUS subheadings are provided for convenience and customs purposes,
the written description of the scope of this order is dispositive.
[FR Doc. 2019-08952 Filed 5-1-19; 8:45 am]
BILLING CODE 3510-DS-P