[Federal Register Volume 84, Number 151 (Tuesday, August 6, 2019)]
[Notices]
[Pages 38213-38214]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16754]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-936]
Circular Welded Carbon Quality Steel Line Pipe From the People's
Republic of China: Final Results of the Expedited Second Sunset Review
of the Countervailing Duty Order
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) finds that revocation of
the countervailing duty (CVD) order on circular welded carbon quality
steel line pipe (welded line pipe) from the People's Republic of China
(China) would be likely to lead to continuation or recurrence of a
countervailable subsidy at the levels indicated in the ``Final Results
of Sunset Review'' section of this notice, infra.
DATES: Applicable August 6, 2019.
FOR FURTHER INFORMATION CONTACT: Kristen Johnson, AD/CVD Operations,
Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-4793.
SUPPLEMENTARY INFORMATION:
Background
On January 23, 2009, Commerce published in the Federal Register the
CVD order on welded line pipe from China.\1\ On June 9, 2016, Commerce
implemented its revised countervailable subsidy rates pursuant to the
findings in the section 129 proceeding of the Uruguay Round Agreements
Act.\2\ On April 1, 2019, Commerce published the notice of initiation
of this sunset review of the Order, pursuant to section 751(c) of the
Tariff Act of 1930, as amended (the Act).\3\ On April 17, 2019,
Commerce received a notice of intent to participate from California
Steel Industries, Inc., TMK IPSCO, Welspun Tubular LLC, and Zekelman
Industries (collectively, the domestic interested
[[Page 38214]]
parties).\4\ The domestic interested parties claimed interested party
status under section 771(9)(C) of the Act as manufacturers in the
United States of the domestic like product.\5\
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\1\ See Circular Welded Carbon Quality Steel Line Pipe from the
People's Republic of China: Notice of Amended Final Affirmative
Countervailing Duty Determination and Notice of Countervailing Duty
Order, 74 FR 4136 (January 23, 2009) (Order).
\2\ See Implementation of Determinations Pursuant to Section 129
of the Uruguay Round Agreements Act, 81 FR 37180 (June 9, 2016); see
also Memorandum, ``Section 129 Proceeding: United States--
Countervailing Duty Measures on Certain Products from the People's
Republic of China (WTO/DS 437): Final Determination for Pressure
Pipe, Line Pipe, OCTG, Wire Strand, and Solar Panels,'' dated May
19, 2016.
\3\ See Initiation of Five-Year (Sunset) Reviews, 84 FR 12227
(April 1, 2019).
\4\ See Domestic Interested Parties' Letter, ``Notice of Intent
to Participate in Second Five-Year Review of the Antidumping and
Countervailing Duty Orders on Circular Welded Carbon Quality Steel
Line Pipe from the People's Republic of China--Request for Extension
of Deadline and Acceptance of Submission,'' dated April 17, 2019
(Notice to Participate); see also Commerce's Letter, ``Acceptance of
Notice of Intent to Participate,'' dated April 18, 2019.
\5\ See Notice to Participate at 2.
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On April 30, 2019, pursuant to 19 CFR 351.218(d)(3)(i), the
domestic interested parties filed a timely and adequate substantive
response.\6\ Commerce did not receive a substantive response from the
Government of China or a respondent interested party to this
proceeding. On May 23, 2019, Commerce notified the U.S. International
Trade Commission (ITC) that it did not receive an adequate substantive
response from respondent interested parties.\7\ As a result, pursuant
to section 751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(C)(2),
Commerce conducted an expedited (120-day) sunset review of the Order.
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\6\ See Domestic Interested Parties' Letter, ``Second Five-Year
Review of the Countervailing Duty Order on Circular Welded Carbon
Quality Steel Line Pipe from the People's Republic of China:
Substantive Response to Notice of Initiation,'' dated April 30,
2019.
\7\ See Commerce's Letter, ``Sunset Review Initiated on April 1,
2019,'' dated May 23, 2019.
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Scope of the Order
The merchandise covered by this order is circular welded carbon
quality steel pipe of a kind used for oil and gas pipelines (welded
line pipe) not more than 406.4 mm (16 inches) in outside diameter,
regardless of wall thickness, length, surface finish, end finish or
stenciling.
The welded line pipe products that are the subject of this order
are currently classifiable in the Harmonized Tariff Schedule of the
United States (HTSUS) under subheadings 7306.19.10.10, 7306.19.10.50,
7306.19.51.10, and 7306.19.51.50. While HTSUS subheadings are provided
for convenience and customs purposes, the written description of the
scope of the order is dispositive.\8\
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\8\ For a complete description of the scope of the Order, see
Memorandum, ``Issues and Decision Memorandum for the Final Results
of the Expedited Second Sunset Review of Circular Welded Carbon
Quality Steel Line Pipe from the People's Republic of China,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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Analysis of Comments Received
A complete discussion of all issues raised in this sunset review,
including the likelihood of continuation or recurrence of a
countervailable subsidy and the net countervailable subsidy rates
likely to prevail if the Order were to be revoked, is provided in the
accompanying Issues and Decision Memorandum. A list of the topics
discussed in the Issues and Decision Memorandum is attached as an
Appendix to this notice. 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 in the Central Records Unit, room B8024 of the
main Commerce building. In addition, a complete version of the Issues
and Decision Memorandum can be accessed at http://enforcement.trade.gov/frn/. The signed Issues and Decision Memorandum
and the electronic version of the Issues and Decision Memorandum are
identical in content.
Final Results of Sunset Review
Pursuant to sections 751(c)(1) and 752(b) of the Act, Commerce
determines that revocation of the Order would be likely to lead to
continuation or recurrence of a net countervailable subsidy at the
following rates: \9\
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\9\ Id.
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Net
countervailable
Producers/exporters subsidy ad
valorem rate
(percent)
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Huludao Seven-Star Steel Pipe Group Co., Ltd., Huludao 32.65
Steel Pipe Industrial Co., Ltd., and Huludao Bohai
Oil Pipe Industrial Co., Ltd. (collectively, the
Huludao Companies)...................................
Liaoning Northern Steel Pipe Co., Ltd................. 40.05
All Others............................................ 36.35
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Administrative Protective Order
This notice serves as the only reminder to parties subject to
administrative protective order (APO) of their responsibility
concerning the return or destruction of proprietary information
disclosed under APO in accordance with 19 CFR 351.305. Timely
notification of the 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 violation which
is subject to sanction.
Notification to Interested Parties
We are issuing and publishing the results and notice in accordance
with sections 751(c), 752(b), and 777(i)(1) of the Act and 19 CFR
351.218 and 19 CFR 351.221(c)(5)(ii).
Dated: July 30, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. History of the Order
V. Legal Framework
VI. Discussion of the Issues
A. Likelihood of Continuation or Recurrence of a Countervailable
Subsidy
B. Net Countervailable Subsidy Rates Likely to Prevail
C. Nature of the Subsidy
VII. Final Results of Sunset Review
VIII. Recommendation
[FR Doc. 2019-16754 Filed 8-5-19; 8:45 am]
BILLING CODE 3510-DS-P