[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.

------------------------------------------------------------------------
                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