[Federal Register Volume 85, Number 125 (Monday, June 29, 2020)]
[Notices]
[Pages 38849-38850]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13947]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-944]


Certain Oil Country Tubular Goods 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 certain oil country tubular 
goods (OCTG) from the People's Republic of China (China) would be 
likely to lead to continuation or recurrence of countervailable 
subsidies.

DATES: Applicable June 29, 2020.

FOR FURTHER INFORMATION CONTACT: Dusten Hom or Mary Kolberg, AD/CVD 
Operations, Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone (202) 482-5075 or (202) 482-1785, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On January 20, 2010, Commerce published the countervailing duty 
order on OCTG from China.\1\ On April 1, 2020, Commerce published the 
initiation of the second sunset review of this order, pursuant to 
section 751(c) of the Tariff Act of 1930, as amended (the Act).\2\ On 
April 14, 2020, Commerce received a notice of intent to participate 
from Maverick Tube Corporation, Tenaris Bay City, Inc., and IPSCO 
Tubulars Inc. (collectively, Tenaris USA), and on April 16, 2020, 
Commerce received a notice of intent to participate from United States 
Steel Corporation (U.S. Steel), Vallourec Star, L.P. and Welded Tube 
USA, Inc. (collectively, Vallourec USA), and BENTELER Steel/Tube 
Manufacturing Corp. (BENTELER).\3\ All notices of intent to participate 
were filed within the deadline specified in 19 CFR 351.218(d)(1)(i). 
Tenaris USA, U.S. Steel, Vallourec USA, and BENTELER (collectively, 
domestic interested parties) claimed interested party status under 
section 771(9)(C) of the Act as producers of OCTG in the United States.
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    \1\ See Certain Oil Country Tubular Goods from the People's 
Republic of China: Amended Final Affirmative Countervailing Duty 
Determination and Countervailing Duty Order, 75 FR 3203 (January 20, 
2010) (CVD Order).
    \2\ See Initiation of Five-Year (``Sunset'') Review, 85 FR 18189 
(April 1, 2020).
    \3\ See Tenaris USA's Letter, ``Notice of Intent to Participate 
in Second Sunset Reviews of the Antidumping and
    Countervailing Duty Orders on Oil Country Tubular Goods from the 
People's Republic of China,'' dated April 14, 2020; see also U.S. 
Steel's Letter, ``Five-Year (``Sunset'') Review of Antidumping and 
Countervailing Duty Orders on Oil Country Tubular Goods from China: 
Notice of Intent to Participate''; Vallourec USA's Letter, ``Oil 
Country Tubular Goods from the People's Republic of China, Second 
Sunset Review: Notice of Intent to Participate''; and BENTELER's 
Letter, ``Notice of Intent to Participate in Second Sunset Reviews 
of the Antidumping and Countervailing Duty Orders on Oil Country 
Tubular Goods from the People's Republic of China''; each dated 
April 16, 2020.
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    On May 1, 2020, Commerce received an adequate substantive response 
from the domestic interested parties within the 30-day deadline 
specified in 19 CFR 351.218(d)(3).\4\ Commerce did not receive any 
submissions from any other interested parties. Because Commerce did not 
receive a substantive response from either the Government of China 
(GOC) or the respondent interested parties who are producers or 
exporters of OCTG, we determined that respondent interested parties 
provided inadequate responses to Commerce's notice of initiation.
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    \4\ See Domestic Interested Parties' Letter, ``Oil Country 
Tubular Goods from the People's Republic of China: Substantive 
Response of the Domestic Industry to Commerce's Notice of Initiation 
of Five-Year (``Sunset'') Review,'' dated May 1, 2020.
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    On May 22, 2020, Commerce notified the U.S. International Trade 
Commission that it did not receive an adequate substantive response 
from respondent interested parties.\5\ As a result, pursuant to section 
751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(B)-(C), Commerce 
is conducting an expedited (120-day) sunset review of the CVD Order.
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    \5\ See Commerce's Letter, ``Sunset Reviews Initiated April 1, 
2020,'' dated May 22, 2020.
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Scope of the Order

    Imports covered by the order are shipments of certain oil country 
tubular goods, which are hollow steel products of circular cross-
section, including oil well casing and tubing, of iron (other than cast 
iron) or steel (both carbon and alloy), whether seamless or welded, 
regardless of end finish (e.g., whether or not plain end, threaded, or 
threaded and coupled) whether or not conforming to American Petroleum 
Institute (API) or non-API specifications, whether finished (including 
limited service OCTG products) or unfinished (including green tubes and 
limited service OCTG products), whether or not thread protectors are 
attached. The scope of the order also covers OCTG coupling stock. 
Excluded from the scope of the order are casing or tubing containing 
10.5 percent or more by weight of chromium; drill pipe; unattached 
couplings; and unattached thread protectors.
    The merchandise subject to this order may be classified in the 
Harmonized Tariff Schedule of the United States (HTSUS) under 
subheadings 7304.29.10.10, 7304.29.10.20, 7304.29.10.30, 7304.29.10.40, 
7304.29.10.50, 7304.29.10.60, 7304.29.10.80, 7304.29.20.10, 
7304.29.20.20, 7304.29.20.30, 7304.29.20.40, 7304.29.20.50, 
7304.29.20.60, 7304.29.20.80, 7304.29.31.10, 7304.29.31.20, 
7304.29.31.30, 7304.29.31.40, 7304.29.31.50, 7304.29.31.60, 
7304.29.31.80, 7304.29.41.10, 7304.29.41.20, 7304.29.41.30, 
7304.29.41.40, 7304.29.41.50, 7304.29.41.60, 7304.29.41.80, 
7304.29.50.15, 7304.29.50.30, 7304.29.50.45, 7304.29.50.60, 
7304.29.50.75, 7304.29.61.15, 7304.29.61.30, 7304.29.61.45, 
7304.29.61.60, 7304.29.61.75, 7305.20.20.00, 7305.20.40.00, 
7305.20.60.00, 7305.20.80.00, 7306.29.10.30, 7306.29.10.90, 
7306.29.20.00, 7306.29.31.00, 7306.29.41.00, 7306.29.60.10, 
7306.29.60.50, 7306.29.81.10, and 7306.29.81.50.

[[Page 38850]]

    The OCTG coupling stock covered by the order may also enter under 
the following HTSUS item numbers: 7304.39.00.24, 7304.39.00.28, 
7304.39.00.32, 7304.39.00.36, 7304.39.00.40, 7304.39.00.44, 
7304.39.00.48, 7304.39.00.52, 7304.39.00.56, 7304.39.00.62, 
7304.39.00.68, 7304.39.00.72, 7304.39.00.76, 7304.39.00.80, 
7304.59.60.00, 7304.59.80.15, 7304.59.80.20, 7304.59.80.25, 
7304.59.80.30, 7304.59.80.35, 7304.59.80.40, 7304.59.80.45, 
7304.59.80.50, 7304.59.80.55, 7304.59.80.60, 7304.59.80.65, 
7304.59.80.70, and 7304.59.80.80.
    Although HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the scope of this order is 
dispositive.

Analysis of Comments Received

    All issues raised in this review are addressed in the Issues and 
Decision Memorandum \6\ and listed in the appendix to this notice, 
including the likelihood of continuation or recurrence of a 
countervailable subsidy and the net countervailable subsidy likely to 
prevail if the order were revoked. 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. In addition, a complete version of the Issues 
and Decision Memorandum can be accessed directly at https://enforcement.trade.gov/frn. The signed and electronic versions of the 
Issues and Decision Memorandum are identical in content.
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    \6\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the Second Expedited Five-Year Sunset Review of the 
Countervailing Duty Order on certain Oil Country Tubular Goods from 
the People's Republic of China,'' dated concurrently with, and 
hereby adopted by, this notice (Issues and Decision Memorandum).
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Final Results of Review

    Pursuant to sections 751(c)(1) and 752(b)(1) and (3) of the Act, we 
determine that revocation of the CVD Order would be likely to lead to 
continuation or recurrence of countervailable subsidies at the 
following net countervailable subsidy rates:

------------------------------------------------------------------------
                                                            Net subsidy
                  Exporter/manufacturer                   rate (percent)
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Jiangsu Changbao Steel Tube Co. and Jiangsu Changbao               22.87
 Precision Steel Tube Co., Ltd..........................
Tianjin Pipe (Group) Co., Tianjin Pipe Iron                        20.90
 Manufacturing Co., Ltd., Tianguan Yuantong Pipe Product
 Co., Ltd., Tianjin Pipe International Economic and
 Trading Co., Ltd., and TPCO Charging Development Co.,
 Ltd....................................................
Wuxi Seamless Pipe Co, Ltd., Jiangsu Fanli Steel Pipe              25.36
 Co, Ltd., and Tuoketuo County Mengfeng Special Steel
 Co., Ltd...............................................
Zhejiang Jianli Enterprise Co., Ltd., Zhejiang Jianli              26.19
 Steel Tube Co., Ltd., Zhuji Jiansheng Machinery Co.,
 Ltd., and Zhejiang Jianli Industry Group Co., Ltd......
All Others..............................................           23.82
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Administrative Protective Order (APO)

    This notice also 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 orders is hereby requested. Failure 
to comply with the regulations and terms of an APO is a sanctionable 
violation.

Notification to Interested Parties

    We are issuing and publishing these results and notice in 
accordance with sections 751(c), 752(b), and 777(i)(1) of the Act, and 
19 CFR 351.218.

    Dated: June 23, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. History of the Order
III. Background
IV. Scope of the Order
V. 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
VI. Final Results of Review
VII. Recommendation

[FR Doc. 2020-13947 Filed 6-26-20; 8:45 am]
BILLING CODE 3510-DS-P