[Federal Register Volume 86, Number 125 (Friday, July 2, 2021)]
[Notices]
[Pages 35263-35265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-14141]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-821-827]
Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe
From the Russian Federation: 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 Russian Federation (Russia).
DATES: Applicable July 2, 2021.
FOR FURTHER INFORMATION CONTACT: Caitlin Monks, AD/CVD Operations,
Office VII, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-2670.
SUPPLEMENTARY INFORMATION:
Background
The petitioner in this investigation is Vallourec Star, L.P. In
addition to the Government of Russia (GOR), the mandatory respondents
in this investigation are PAO TMK, Volzhsky Pipe Plant Joint Stock
Company (Volzhsky), and certain cross-owned affiliates (collectively,
TMK).\1\ 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).\2\
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\1\ See Memorandum, ``Countervailing Duty Investigation of
Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe
from the Russian Federation: Respondent Selection,'' dated August
13, 2020. As discussed in the Preliminary Decision Memorandum (PDM),
the cross-owned companies that comprise TMK are: PAO TMK, Volzhsky
Pipe Plant Joint Stock Company (Volzhsky), Taganrog Metallurgical
Plant Joint Stock Company (Tagmet), Sinarsky Pipe Plant Joint Stock
Company (Sinarsky), Seversky Pipe Plant Joint Stock Company
(Seversky), TMK CHERMET LLC (TMK CHERMET), TMK CHERMET LLC Volzhsky
(TMK CHERMET Volzhsky), TMK CHERMET LLC Ekaterinburg (TMK CHERMET
Ekaterinburg), TMK CHERMET LLC Rostov (TMK CHERMET Rostov), TMK
CHERMET LLC Saratov (TMK CHERMET Saratov), and TMK CHERMET LLC
Service (TMK CHERMET Service).
\2\ See Seamless Carbon and Alloy Steel Standard, Line, and
Pressure Pipe from the Russian Federation: Preliminary Affirmative
Countervailing Duty Determination and Alignment of Final
Determination with Final Antidumping Duty Determination, 85 FR 80007
(December 11, 2020) (Preliminary Determination), and accompanying
PDM.
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[[Page 35264]]
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.\3\ 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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\3\ 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 Russian Federation,'' dated concurrently with
this determination (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
Russia. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
We did not receive comments from interested parties on the
Preliminary Scope Decision Memorandum.\4\ 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 Appendix I.
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\4\ See Commerce's Memorandum, ``Preliminary Scope Memorandum,''
dated December 11, 2020 (Preliminary Scope 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.\5\
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\5\ See Commerce's Letter, ``Countervailing Duty Investigation
of Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe
from the Russian Federation: In Lieu of Verification
Questionnaire,'' dated March 29, 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.\6\ For a full description
of the methodology underlying our final determination, see the Issues
and Decision Memorandum.
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\6\ 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.\7\
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\7\ See Preliminary Determination PDM at ``Use of Facts
Available, with Adverse Inferences;'' see also Issues and Decision
Memorandum at ``Use of Facts Available, and Adverse Inferences.''
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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 TMK. 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 TMK, the only individually examined
exporter/producer, which is not zero, de minimis, or based entirely on
facts otherwise available.\8\ Accordingly, we have assigned the
estimated countervailable subsidy rate calculated for TMK to all other
producers and exporters, pursuant to section 705(c)(5)(A)(i) of the
Act.
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\8\ See Preliminary Determination, 85 FR at 80025.
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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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PAO TMK/Volzhsky Pipe Plant Joint Stock Company \9\......... 48.38
All Others.................................................. 48.38
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Disclosure
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\9\ As discussed in the PDM Commerce has found the following
companies to be cross-owned with PAO TMK and Volzhsky Pipe Plant
Joint Stock Company: Sinarsky Pipe Plant; Taganrog Metallurgical
Plant Joint Stock Company; Sinarsky Pipe Plant Joint Stock Company;
Seversky Pipe Plant Joint Stock Company; TMK CHERMET LLC; TMK
CHERMET LLC Volzhsky; TMK CHERMET LLC Ekaterinburg; TMK CHERMET LLC
Rostov; TMK CHERMET LLC Saratov; and TMK CHERMET LLC Service.
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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 Russia 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
[[Page 35265]]
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 its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of seamless
pipe from Russia. 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 Russia 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 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 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 A-53, 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. Use of Facts Available, and Adverse Inferences
IV. Subsidies Valuation Information
V. Benchmarks and Interest Rates
VI. Analysis of Programs
VII. Analysis of Comments
Comment 1: Whether Commerce Used the Appropriate Sales
Denominator To Calculate TMK's Subsidy Rates
Comment 2: Whether Commerce Can Investigate Subsidies Not
Included in the Petition
Comment 3a: Whether PJSC Gazprom (Gazprom) Is a Government
Authority That Provides a Financial Contribution
Comment 3b: Whether Oil Company Rosneft, Public Joint Stock
Company (Rosneft) Is a Government Authority That Provides a
Financial Contribution
Comment 3c: Whether the Provision of Natural Gas Is Specific
Comment 3d: Whether Commerce Should Adjust the Natural Gas
Benchmark to ``Tier-One''
Comment 3e: Whether Commerce Should Adjust the Natural Gas
Benchmark to ``Tier-Two''
Comment 3f: Whether Commerce Should Change the Data Relied Upon
in Its Natural Gas ``Tier-Three'' Analysis
Comment 4a: Whether Certain SCBs Are Government Authorities
Comment 4b: Whether Lending From Certain SCBs Is Specific
Comment 4c: Whether Commerce's Application of Adverse Facts
Available (AFA) With Respect to Its Specificity Determination Is
Supported by the Record
Comment 4d: Whether Commerce Should Adjust Its Lending Rate
Benchmark
Comment 5a: Whether the Sverdlovsk Region's Development Program
Provides a Financial Contribution
Comment 5b: Whether the Sverdlovsk Region's Development Program
Is Specific
Comment 6: Whether the Regional Investment Incentives From the
Rostov Government Are Specific
VIII. Recommendation
[FR Doc. 2021-14141 Filed 7-1-21; 8:45 am]
BILLING CODE 3510-DS-P