[Federal Register Volume 84, Number 169 (Friday, August 30, 2019)]
[Notices]
[Pages 45726-45727]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-18830]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-915]


Light-Walled Rectangular Pipe and Tube From the People's Republic 
of China: Final Results of the Expedited Second Five-Year Sunset Review 
of the Countervailing Duty Order

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

SUMMARY: As a result of this expedited sunset review, the Department of 
Commerce (Commerce) finds that revocation of this countervailing duty 
(CVD) order would be likely to lead to continuation or recurrence of a 
countervailable subsidy at the levels indicated in the ``Final Results 
of Review'' section of this notice.

DATES: Applicable August 30, 2019.

FOR FURTHER INFORMATION CONTACT: Ian Hamilton, 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) 482-4798.

SUPPLEMENTARY INFORMATION:

Background

    On August 5, 2008, Commerce published its CVD order on light-walled 
rectangular pipe and tube from the People's Republic of China (China) 
in the Federal Register.\1\ On August 30, 2012, Commerce implemented 
its revised countervailable subsidy rates pursuant to the findings in 
the section 129 proceeding of the Uruguay Round Agreements Act 
(URAA).\2\ On June 23, 2014, at the conclusion of the first sunset 
review, Commerce issued a notice of continuation of the order.\3\
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    \1\ See Notice of Countervailing Duty Order: Light-Walled 
Rectangular Pipe and Tube from the People's Republic of China, 73 FR 
45405 (August 5, 2008).
    \2\ See Implementation of Determinations Under Section 129 of 
the Uruguay Round Agreements Act: Certain New Pneumatic Off-the-Road 
Tires; Circular Welded Carbon Quality Steel Pipe; Laminated Woven 
Sacks; and Light-Walled Rectangular Pipe and Tube from the People's 
Republic of China, 77 FR 52683 (August 30, 2012).
    \3\ See Light-Walled Rectangular Pipe and Tube from Mexico, 
Turkey, the People's Republic of China, and the Republic of Korea: 
Continuation of Antidumping and Countervailing Duty Orders, 79 FR 
35522 (June 23, 2014).
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    On May 1, 2019, Commerce published the notice of initiation of the 
second sunset review of the countervailing duty order on light-walled 
rectangular pipe and tube from the China, in accordance with section 
751(c) of the Tariff Act of 1930, as amended (the Act).\4\ Commerce 
received a notice of intent to participate from Atlas Tube, a division 
of Zekelman Industries, Bull Moose Tube Co., California Steel and Tube, 
Hannibal Industries, Maruichi American Corporation, Searing Industries, 
and Vest, Inc. (domestic interested parties) and from Independence Tube 
Corporation, a Nucor company (Independence Tube) and Southland Tube, 
Incorporated, a Nucor company (Southland Tube) (collectively, Nucor 
Pipe Mills), within the deadline specified in 19 CFR 
351.218(d)(1)(i).5 6 Each of the companies claimed 
interested party status under section 771(9)(C) of the Act, as a 
domestic producer of light-walled rectangular pipe and tube.
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    \4\ See Initiation of Five-Year (Sunset) Review, 84 FR 18477 
(April 1, 2019).
    \5\ See Domestic Interested Parties Letter, ``Notice of Intent 
to Participate in Second Five-Year Review of the Countervailing Duty 
Order on Light-Walled Rectangular Pipe and Tube from China,'' dated 
May 13, 2019; see also, Nucor Pipe Mills Letter, ``Light-Walled 
Rectangular Pipe and Tube from the People's Republic of China: 
Notice of Intent to Participate,'' dated May 16, 2019.
    \6\ On July 15, 2019, Commerce was notified of the inadvertent 
omission of Wheatland Tube Company, a division of Zekelman 
Industries, from the notice of appearance, application for 
administrative protective orders, and notice of intent to 
participate, although it was included in the domestic industry's 
substantive response dated May 31, 2019. See Domestic Interested 
Parties Letter, ``Second Five-Year Reviews of the Antidumping 
{sic{time}  Duty Order on Light-Walled Rectangular Pipe and Tube 
from China, Korea, Mexico, and Turkey: Errata,'' dated July 15, 
2019.
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    Commerce received a substantive response from domestic producers 
\7\

[[Page 45727]]

within the 30-day deadline specified in 19 CFR 351.218(d)(3)(i). We 
received no substantive response from any other domestic or interested 
parties in this proceeding, nor was a hearing requested.
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    \7\ See Domestic Producers Letter, ``Light-Walled Rectangular 
Pipe and Tube from the People's Republic of China, Second Review: 
Substantive Response to Notice of Initiation,'' dated May 31, 2019, 
and filed on behalf of Atlas Tube; Bull Moose Tube Co.; California 
Steel and Tube; Hannibal Industries; Independence Tube Corp., a 
Nucor company; Maruichi American Corporation' Searing Industries, 
Inc.; Southland Tube, Inc., a Nucor company; Vest, Inc.; and 
Wheatland Tube Company (collectively Domestic Producers).
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    On July 2, 2019, Commerce notified the U.S. International Trade 
Commission (ITC) that it did not receive an adequate substantive 
response from respondent interested parties.\8\ 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 this 
countervailing duty order.
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    \8\ See Commerce Letter, ``Sunset Reviews Initiated on May 1, 
2019,'' dated July 2, 2019.
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Scope of the Order

    The merchandise subject to the order is certain welded carbon 
quality light-walled steel pipe and tube, of rectangular (including 
square) cross section, having a wall thickness of less than 4 mm. The 
merchandise subject to the order is currently classifiable under items 
7306.61.50.00 and 7306.61.70.60 of the Harmonized Tariff Schedule of 
the United States (HTSUS). Although the HTSUS subheadings are provided 
for convenience and customs purposes, the written description is 
dispositive. For a full description of the scope of the order, see the 
Issues and Decision Memorandum.\9\
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    \9\ See Memorandum, ``Issues and Decision Memorandum for the 
Expedited Second Sunset Review of the Countervailing Duty Order on 
Light-Walled Rectangular Pipe and Tube 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

    All issues raised in this sunset review are addressed in the Issues 
and Decision Memorandum, which is hereby adopted by this notice. The 
issues discussed in the Issues and Decision Memorandum are the 
likelihood of continuation or recurrence of a countervailable subsidy 
and the net countervailable subsidy rates likely to prevail if this 
order were revoked. The Issues and Decision Memorandum is a public 
document and is on file electronically via the 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 in the Central Records Unit, Room B8024 of 
the main Commerce building. A list of topics discussed in the Issues 
and Decision Memorandum is included as an Appendix to this notice. In 
addition, a complete version of the Issues and Decision Memorandum can 
be accessed directly on the internet 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)(1) and (3) of the Act, we 
determine that revocation of the countervailing duty order on light-
walled rectangular pipe and tube from the China would be likely to lead 
to continuation or recurrence of a countervailable subsidy at the rates 
listed below:

------------------------------------------------------------------------
                                                              Net
                                                        countervailable
           Manufacturers/producer/exporter                  subsidy
                                                           (percent)
------------------------------------------------------------------------
Zhangjiagang Zhongyuan Pipe-making Co., Ltd., Jiangsu              15.28
 Qiyuan Group Co., Ltd...............................
Qingdao Xiangxing Steel Pipe Co., Ltd................             200.58
Kunshan Lets Win Steel Machinery Co., Ltd............               2.20
All-Others...........................................              15.28
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Administrative Protective Order (APO)

    This notice also serves as the only reminder to parties subject to 
an 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 terms of an APO 
is a violation which is subject to sanction.

Notification to Interested Parties

    This five-year (sunset) review and notice are in accordance with 
sections 751(c), 752(b), and 777(i)(1) of the Act and 19 CFR 351.218.

    Dated: August 23, 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
    1. Likelihood of Continuation or Recurrence of a Countervailable 
Subsidy
    2. Net Countervailable Subsidy Likely To Prevail
    3. Nature of the Subsidies
VII. Final Results of Sunset Review
VIII. Recommendation

[FR Doc. 2019-18830 Filed 8-29-19; 8:45 am]
BILLING CODE 3510-DS-P