[Federal Register Volume 84, Number 191 (Wednesday, October 2, 2019)]
[Notices]
[Pages 52456-52457]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-21444]



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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-935, C-570-936]


Circular Welded Carbon Quality Steel Line Pipe From the People's 
Republic of China: Continuation of Antidumping Duty Order and 
Countervailing Duty Order

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

SUMMARY: As a result of the determinations by the Department of 
Commerce (Commerce) and the U.S. International Trade Commission (ITC) 
that revocation of the antidumping duty (AD) order and countervailing 
duty (CVD) order on circular welded carbon quality steel line pipe 
(welded line pipe) from the People's Republic of China (China) would 
likely lead to a continuation or recurrence of dumping, countervailable 
subsidies, and material injury to an industry in the United States, 
Commerce is publishing a notice of continuation of the AD order and the 
CVD order.

DATES: Applicable October 2, 2019.

FOR FURTHER INFORMATION CONTACT: Thomas Hanna, AD/CVD Operations, 
Office IV (AD), and Kristen Johnson, AD/CVD Operations, Office III 
(CVD), Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, 
DC 20230; telephone: (202) 482-0835 and (202) 482-4793, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On January 23, 2009, Commerce published in the Federal Register the 
CVD order on welded line pipe from China.\1\ On May 13, 2009, Commerce 
published in the Federal Register the AD order on welded line pipe from 
China.\2\ On April 1, 2019, pursuant to section 751(c) of the Tariff 
Act of 1930, as amended (the Act), Commerce published the initiation of 
the second sunset reviews of the Orders \3\ and the ITC instituted its 
review of the Orders.\4\
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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).
    \2\ See Certain Circular Welded Carbon Quality Steel Line Pipe 
from the People's Republic of China: Antidumping Duty Order, 74 FR 
22515 (May 13, 2009).
    \3\ The AD order on welded line pipe from China and CVD order on 
welded line pipe from China are collectively referred to as the 
``Orders.''
    \4\ See Initiation of Five-Year (Sunset) Reviews, 84 FR 12227 
(April 1, 2019); see also Circular Welded Carbon Quality Steel Line 
Pipe from China; Institution of Five-Year Reviews, 84 FR 12285 
(April 1, 2019).
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    On April 16 and 17, 2019, Commerce received notices of intent to 
participate in the sunset reviews from California Steel Industries, 
Inc., TMK IPSCO, Welspun Tubular LLC, and Zekelman Industries 
(collectively, the domestic interested parties) within the deadline 
specified in 19 CFR 351.218(d)(1)(i).\5\ 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.\6\
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    \5\ See Domestic Interested Parties' Letter, ``Notice of Intent 
to Participate in Second Five-Year Review of the Antidumping Duty 
Order on Circular Welded Carbon Quality Steel Line Pipe from the 
People's Republic of China,'' dated April 16, 2019 (Notice to 
Participate AD); see also 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 CVD); and Commerce's Letter, 
``Sunset Review of Countervailing Duty Order on Circular Welded 
Carbon Quality Steel Line Pipe from the People's Republic of China: 
Acceptance of Notice of Intent to Participate,'' dated April 18, 
2019.
    \6\ See Notice to Participate AD at 2; see also Notice to 
Participate CVD at 2.
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    On April 30, 2019, Commerce received complete and adequate 
substantive responses from the domestic interested parties filed within 
the 30-day deadline specified in 19 CFR 351.218(d)(3)(i).\7\ Commerce 
received no substantive response from respondent interested parties. 
Pursuant to section 751(c)(3)(B) of the Act, Commerce conducted 
expedited (120-day) sunset reviews of the Orders.\8\ On July 5, 2019, 
the ITC determined to conduct an expedited five-year review of the 
Orders.\9\
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    \7\ See Domestic Interested Parties' Letter, ``Second Five-Year 
Review of the Antidumping 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; see also 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.
    \8\ See Commerce's Letter, ``Sunset Review Initiated on April 1, 
2019,'' dated May 23, 2019.
    \9\ See Circular Welded Carbon Quality Steel Line Pipe from 
China; Scheduling of Expedited Five-Year Review, 84 FR 39861 (August 
12, 2019).
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    As a result of its reviews, Commerce determined, pursuant to 
sections 751(c)(1) and 752(b) and (c) of the Act, that revocation of 
the Orders on welded line pipe from China would likely lead to 
continuation or recurrence of dumping or countervailable subsidies. 
Commerce, therefore, notified the ITC of the magnitude of the margins 
of dumping and net countervailable subsidy rates likely to prevail 
should these Orders be revoked, in accordance with sections 752(b)(3) 
and (c)(3) of the Act.\10\
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    \10\ See Circular Welded Carbon Quality Steel Line Pipe from the 
People's Republic of China: Final Results of the Expedited Second 
Sunset Review of the Antidumping Duty Order, 84 FR 38215 (August 6, 
2019); see also 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, 84 FR 38213 
(August 6, 2019).
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    On September 25, 2019, the ITC published its determination that 
revocation of the Orders would likely lead to a continuation or 
recurrence of material injury to an industry in the United States 
within a reasonably foreseeable time, pursuant to sections 751(c) and 
752(a) of the Act.\11\
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    \11\ See Circular Welded Carbon Quality Steel Line Pipe from 
China; Determinations, 84 FR 50473 (September 25, 2019); see also 
Circular Welded Carbon Quality Steel Line Pipe from China: 
Investigation Nos. 701-TA-455 and 731-TA-1149 (Second Review), USITC 
Publication 4955 (September 2019).
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Scope of the Orders

    The merchandise covered by the orders 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 term ``carbon quality steel'' includes both carbon steel and 
carbon steel mixed with small amounts of alloying elements that may 
exceed the individual weight limits for non-alloy steels imposed in the 
Harmonized Tariff Schedule of the United States (HTSUS). Specifically, 
the term ``carbon quality'' includes products in which (1) iron 
predominates by weight over each of the other contained elements, (2) 
the carbon content is 2 percent or less by weight and (3) none of the 
elements listed below exceeds the quantity by weight respectively 
indicated:
    (i) 2.00 percent of manganese,
    (ii) 2.25 percent of silicon,
    (iii) 1.00 percent of copper,
    (iv) 0.50 percent of aluminum,
    (v) 1.25 percent of chromium,
    (vi) 0.30 percent of cobalt,
    (vii) 0.40 percent of lead,
    (viii) 1.25 percent of nickel,
    (ix) 0.30 percent of tungsten,
    (x) 0.012 percent of boron,
    (xi) 0.50 percent of molybdenum,
    (xii) 0.15 percent of niobium,
    (xiii) 0.41 percent of titanium,
    (xiv) 0.15 percent of vanadium, or
    (xv) 0.15 percent of zirconium.
    Welded line pipe is normally produced to specifications published 
by

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the American Petroleum Institute (API) (or comparable foreign 
specifications) including API A-25, 5LA, 5LB, and X grades from 42 and 
above, and/or any other proprietary grades or non-graded material. 
Nevertheless, all pipe meeting the physical description set forth above 
that is of a kind used in oil and gas pipelines, including all 
multiple-stenciled pipe with an API welded line pipe stencil is covered 
by the scope of the orders.
    Excluded from the scope are pipes of a kind used for oil and gas 
pipelines that are multiple-stenciled to a standard and/or structural 
specification and have one or more of the following characteristics: Is 
32 feet in length or less; is less than 2.0 inches (50 mm) in outside 
diameter; has a galvanized and/or painted surface finish; or has a 
threaded and/or coupled end finish. (The term ``painted'' does not 
include coatings to inhibit rust in transit, such as varnish, but 
includes coatings such as polyester.)
    The welded line pipe products that are the subject of the orders 
are currently classifiable in the 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 orders is dispositive.

Continuation of the Orders

    As a result of the determinations by Commerce and the ITC that 
revocation of the Orders would likely lead to a continuation or 
recurrence of dumping, countervailable subsidies, and material injury 
to an industry in the United States, pursuant to section 751(d)(2) of 
the Act and 19 CFR 351.218(a), Commerce hereby orders the continuation 
of the Orders on welded line pipe from China. U.S. Customs and Border 
Protection will continue to collect AD and CVD cash deposits at the 
rates in effect at the time of entry for all imports of subject 
merchandise.
    The effective date of the continuation of the Orders will be the 
date of publication in the Federal Register of this notice of 
continuation. Pursuant to section 751(c)(2) of the Act and 19 CFR 
351.218(c)(2), Commerce intends to initiate the next five-year (sunset) 
reviews of these Orders not later than 30 days prior to the fifth 
anniversary of the effective date of continuation.

Administrative Protective Order (APO)

    This notice also serves as the only reminder to parties subject to 
APO of their responsibility concerning the return, destruction, or 
conversion to judicial protective order of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Failure to 
comply is a violation of the APO which may be subject to sanctions.

Notification to Interested Parties

    These five-year sunset reviews and this notice are in accordance 
with section 751(c) of the Act and published pursuant to section 
777(i)(1) of the Act and 19 CFR 351.218(f)(4).

    Dated: September 25, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2019-21444 Filed 10-1-19; 8:45 am]
 BILLING CODE 3510-DS-P