[Federal Register Volume 86, Number 125 (Friday, July 2, 2021)]
[Notices]
[Pages 35267-35269]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-14139]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-910]


Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe 
From the Republic of Korea: Final Affirmative Countervailing Duty 
Determination

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

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of seamless carbon and alloy steel standard, line, and pressure pipe 
(seamless pipe) from the Republic of Korea (Korea).

DATES: Applicable July 2, 2021.

FOR FURTHER INFORMATION CONTACT: Moses Song or Natasia Harrison, AD/CVD 
Operations, Office VI, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-7885 or (202) 482-1240, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    The petitioner in this investigation is Vallourec Star, LP. In 
addition to the Government of Korea (GOK), the mandatory respondent in 
this investigation is ILJIN Steel Corporation (ILJIN). On December 11, 
2020, Commerce published in the Federal Register the Preliminary 
Determination and aligned this final determination with the final 
antidumping duty (AD) determination, in accordance with section 
705(a)(1) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 
351.210(b)(4)(i).\1\
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    \1\ See Seamless Carbon and Alloy Steel Standard, Line, and 
Pressure Pipe from the Republic of Korea: Preliminary Affirmative 
Countervailing Duty Determination and Alignment of Final 
Determination with Final Antidumping Duty Determination, 85 FR 80024 
(December 11, 2020) (Preliminary Determination), and accompanying 
Preliminary Decision Memorandum.
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    A summary of the events that occurred since Commerce published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by parties for this final determination, may be found in the 
Issues and Decision Memorandum, which is hereby adopted by this 
notice.\2\ 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 http://access.trade.gov. In 
addition, a complete version of the Issues and Decision Memorandum can 
be accessed directly at http://enforcement.trade.gov/frn/.
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    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Countervailing Duty 
Investigation of Seamless Carbon and Alloy Steel Standard, Line, and 
Pressure Pipe from the Republic of Korea,'' dated concurrently with, 
and hereby adopted by, this notice (Issues and Decision Memorandum).
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Period of Investigation

    The period of investigation is January 1, 2019, through December 
31, 2019.

Scope of the Investigation

    The product covered by this investigation is seamless pipe from 
Korea. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    During the course of this and the concurrent AD investigation, 
Commerce received scope comments from interested parties. On January 
13, 2021, Commerce issued a Preliminary Scope Decision Memorandum to 
address these comments, and modified the scope language as it appeared 
in the

[[Page 35268]]

Preliminary Determination to exclude oil country tubular goods covered 
by another order and all pipes meeting certain chemical requirements 
from the scope of this and the concurrent AD investigation.\3\ We did 
not receive comments from interested parties on the Preliminary Scope 
Memorandum. As discussed in Preliminary Scope Decision Memorandum, 
Commerce modified the scope language as it appeared in the Initiation 
Notice to clarify certain exclusions. See the scope in the Appendix I 
to this notice.
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    \3\ See Memorandum, ``Antidumping and Countervailing Duty 
Investigations of Seamless Carbon and Alloy Steel Standard, Line, 
and Pressure Pipe from the Czech Republic, the Republic of Korea, 
the Russian Federation, and Ukraine: Preliminary Scope Decision 
Memorandum,'' dated January 13, 2021 (Preliminary Scope Decision 
Memorandum).
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Verification

    Commerce was unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. However, we took additional steps in lieu of an on-site 
verification to verify the information relied upon in making this final 
determination, in accordance with section 782(i) of the Act.\4\
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    \4\ See Commerce's Letter, ``Countervailing Duty Investigation 
of Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe 
from the Republic of Korea: In Lieu of On-Site Verification 
Questionnaire,'' dated March 9, 2021.
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Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum. A list of the issues 
raised by parties is attached to this notice at Appendix II.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Act. For each of the subsidy programs found countervailable, 
Commerce determines that there is a subsidy, i.e., a financial 
contribution by an ``authority'' that gives rise to a benefit to the 
recipient, and that the subsidy is specific.\5\ For a full description 
of the methodology underlying our final determination, see the Issues 
and Decision Memorandum.
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    \5\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    In making this final determination, Commerce is relying, in part, 
on facts otherwise available, including adverse facts available (AFA), 
pursuant to sections 776(a) and (b) of the Act. For a full discussion 
of our application of AFA, see the Preliminary Determination and the 
section ``Use of Facts Otherwise Available and Adverse Inferences'' in 
the accompanying Issues and Decision Memorandum.\6\
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    \6\ See Preliminary Decision Memorandum at ``Use of Facts 
Otherwise Available and Adverse Inferences''; see also Issues and 
Decision Memorandum at ``Use of Facts Otherwise Available and 
Adverse Inference.''
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, as well as additional information collected in questionnaires 
issued subsequent to the Preliminary Determination, we made certain 
changes to the countervailable subsidy rate calculation for ILJIN. For 
a discussion of these changes, see the Issues and Decision Memorandum.

All-Others Rate

    Section 705(c)(5)(A) of the Act provides that in the final 
determination, Commerce shall determine an estimated all-others rate 
for companies not individually examined. This rate shall be an amount 
equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act.
    In this investigation, Commerce calculated an individual estimated 
countervailable subsidy rate for ILJIN, the only individually examined 
exporter/producer, which is not zero, de minimis, or based entirely on 
facts otherwise available.\7\ Accordingly, we have assigned the 
estimated countervailable subsidy rate calculated for ILJIN to all 
other producers and exporters, pursuant to section 705(c)(5)(A)(i) of 
the Act.
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    \7\ See Preliminary Determination, 85 FR at 80025; see also 
Issues and Decision Memorandum at ``Calculation of the All-Others 
Rate.''
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Final Determination

    Commerce determines that the following countervailable subsidy 
rates exist:

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                                                                Subsidy
                           Company                               rate
                                                               (percent)
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ILJIN Steel Corporation.....................................        1.78
All Others..................................................        1.78
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Disclosure

    Commerce intends to disclose to interested parties its calculations 
and analysis performed in this final determination within five days of 
its public announcement, or if there is no public announcement, within 
five days of the date of publication of this notice in accordance with 
19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of entries of 
subject merchandise from Korea that were entered, or withdrawn from 
warehouse, for consumption, effective December 11, 2020, which is the 
date of publication of the Preliminary Determination in the Federal 
Register.
    In accordance with section 703(d) of the Act, effective April 10, 
2021, we instructed CBP to discontinue the suspension of liquidation of 
all entries at that time, but to continue the suspension of liquidation 
of all entries between December 11, 2020, and April 9, 2021.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order, and continue to require a cash deposit of estimated 
countervailing duties for such entries of subject merchandise in the 
amounts indicated above, in accordance with section 706(a) of the Act. 
If the ITC determines that material injury, or threat of material 
injury, does not exist, this proceeding will be terminated, and all 
estimated duties deposited or securities posted as a result of the 
suspension of liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of the final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of seamless 
pipe from Korea. Because the final determination in this proceeding is 
affirmative, in accordance with section 705(b) of the Act, the ITC will 
make its final determination as to whether the domestic industry in the 
United States is materially injured or threatened with material injury, 
by reason of imports of seamless pipe from Korea no later than 45 days 
after our final determination. In addition, we are making available to 
the ITC all non-privileged and nonproprietary information related to 
this investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either

[[Page 35269]]

publicly or under an administrative protective order (APO), without the 
written consent of the Assistant Secretary for Enforcement and 
Compliance.

Notification Regarding APO

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to the APO of their responsibility concerning the destruction 
of proprietary information disclosed under APO in accordance with 19 
CFR 351.305(a)(3). Timely written notification of the return/
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 determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act and 19 CFR 351.210(c).

    Dated: June 25, 2021.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.

Appendix I--Scope of the Investigation

    The merchandise covered by the scope of this investigation is 
seamless carbon and alloy steel (other than stainless steel) pipes 
and redraw hollows, less than or equal to 16 inches (406.4 mm) in 
nominal outside diameter, regardless of wall-thickness, 
manufacturing process (e.g., hot-finished or cold-drawn), end finish 
(e.g., plain end, beveled end, upset end, threaded, or threaded and 
coupled), or surface finish (e.g., bare, lacquered or coated). 
Redraw hollows are any unfinished carbon or alloy steel (other than 
stainless steel) pipe or ``hollow profiles'' suitable for cold 
finishing operations, such as cold drawing, to meet the American 
Society for Testing and Materials (ASTM) or American Petroleum 
Institute (API) specifications referenced below, or comparable 
specifications. Specifically included within the scope are seamless 
carbon and alloy steel (other than stainless steel) standard, line, 
and pressure pipes produced to the ASTM A-53, ASTM A-106, ASTM A-
333, ASTM A-334, ASTM A-589, ASTM A-795, ASTM A-1024, and the API 51 
specifications, or comparable specifications, and meeting the 
physical parameters described above, regardless of application, with 
the exception of the exclusions discussed below.
    Specifically excluded from the scope of the investigation are: 
(1) All pipes meeting aerospace, hydraulic, and bearing tubing 
specifications, including pipe produced to the ASTM A-822 standard; 
(2) all pipes meeting the chemical requirements of ASTM A-335, 
whether finished or unfinished; and (3) unattached couplings. Also 
excluded from the scope of the investigation are (1) all mechanical, 
boiler, condenser and heat exchange tubing, except when such 
products conform to the dimensional requirements, i.e., outside 
diameter and wall thickness, of ASTM A53, ASTM A-106 or API 51 
specifications. Also excluded from the scope of the investigation 
are: (1) Oil country tubular goods consisting of drill pipe, casing, 
tubing and coupling stock; (2) all pipes meeting the chemical 
requirements of ASTM A-335 regardless of their conformity to the 
dimensional requirements of ASTM A-53, ASTM A-106 or API 5L; and (3) 
the exclusion for ASTM A335 applies to pipes meeting the comparable 
specifications GOST 550-75.
    Subject seamless standard, line, and pressure pipe are normally 
entered under Harmonized Tariff Schedule of the United States 
(HTSUS) subheadings 7304.19.1020, 7304.19.1030, 7304.19.1045, 
7304.19.1060, 7304.19.5020, 7304.19.5050, 7304.31.6050, 
7304.39.0016, 7304.39.0020, 7304.39.0024, 7304.39.0028, 
7304.39.0032, 7304.39.0036, 7304.39.0040, 7304.39.0044, 
7304.39.0048, 7304.39.0052, 7304.39.0056, 7304.39.0062, 
7304.39.0068, 7304.39.0072, 7304.51.5005, 7304.51.5060, 
7304.59.6000, 7304.59.8010, 7304.59.8015, 7304.59.8020, 
7304.59.8025, 7304.59.8030, 7304.59.8035, 7304.59.8040, 
7304.59.8045, 7304.59.8050, 7304.59.8055, 7304.59.8060, 
7304.59.8065, and 7304.59.8070. The HTSUS subheadings and 
specifications are provided for convenience and customs purposes; 
the written description of the scope is dispositive.

Appendix II--List of Topics Discussed in the Final Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Subsidies Valuation
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Analysis of Programs
VIII. Analysis of Comments
    Comment 1: Whether the Provision of Electricity for Less Than 
Adequate Remuneration Is Countervailable
    Comment 2: Whether the Korea Development Bank is an 
``Authority''
    Comment 3: Whether Commerce Should Determine that the Korea 
Development Bank General Operating Financing Loans Are Specific on 
the Basis of Adverse Facts Available
    Comment 4: Whether Tax Benefits Under Restriction of Special 
Taxation Act Article 10(1)(3) Are De Facto Specific
    Comment 5: Whether Tax Benefits Under Restriction of Special 
Taxation Act Article 26 Are Regionally Specific
IX. Recommendation

[FR Doc. 2021-14139 Filed 7-1-21; 8:45 am]
BILLING CODE 3510-DS-P