[Federal Register Volume 86, Number 151 (Tuesday, August 10, 2021)]
[Notices]
[Pages 43627-43629]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-17016]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-943, C-570-944]


Oil Country Tubular Goods From the People's Republic of China: 
Preliminary Affirmative Determinations of Circumvention

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that imports of welded oil country tubular goods (OCTG) completed in 
Brunei or the Philippines using inputs manufactured in the People's 
Republic of China (China) are circumventing the antidumping and 
countervailing duty orders on OCTG from China.

DATES: Applicable August 10, 2021.

FOR FURTHER INFORMATION CONTACT: Yang Jin Chun or John Drury, 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) 482-5760 and (202) 482-0195, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On November 3, 2020, Commerce self-initiated these anti-
circumvention inquiries to determine whether certain imports of welded 
OCTG completed in Brunei or the Philippines using inputs manufactured 
in China are circumventing the antidumping and countervailing duty 
orders on OCTG from China.\1\
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    \1\ See Oil Country Tubular Goods from the People's Republic of 
China: Self-Initiation of Anti-Circumvention Inquiries on the 
Antidumping Duty and Countervailing Duty Orders, 85 FR 71877 
(November 12, 2020).
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Scope of the Orders

    The products covered by the orders are certain OCTG, 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. A 
full description of the scope of the orders is contained in the 
Preliminary Decision

[[Page 43628]]

Memorandum.\2\ The written description is dispositive.
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    \2\ See Memorandum, ``Oil Country Tubular Goods from the 
People's Republic of China: Decision Memorandum for Preliminary 
Affirmative Determinations of Circumvention,'' dated concurrently 
with, and hereby adopted by, this notice (Preliminary Decision 
Memorandum) at 3.
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Scope of the Anti-Circumvention Inquiries

    These anti-circumvention inquiries cover welded OCTG completed in 
Brunei or the Philippines using inputs manufactured in China and 
subsequently exported from Brunei or the Philippines to the United 
States.

Methodology

    Commerce is conducting these anti-circumvention inquiries in 
accordance with section 781(b) of the Tariff Act of 1930, as amended 
(the Act), and 19 CFR 351.225(h). Because China is a non-market economy 
country within the meaning of section 771(18) of the Act, Commerce 
relied on surrogate values to value the purchases of Chinese hot-rolled 
steel, as discussed in section 773(c) of the Act. For a complete 
description of the events that followed the initiation of these anti-
circumvention inquiries, see the Preliminary Decision Memorandum. A 
list of topics included in the Preliminary Decision Memorandum is 
included as an Appendix to this notice. The Preliminary 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 Preliminary Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/.

Preliminary Determinations

    As detailed in the Preliminary Decision Memorandum, Commerce 
preliminarily determines that welded OCTG assembled or completed in 
Brunei or the Philippines using inputs manufactured in China and 
subsequently exported from Brunei or the Philippines to the United 
States are circumventing the antidumping and countervailing duty orders 
on OCTG from China. We therefore preliminarily determine that it is 
appropriate to include this merchandise within the antidumping and 
countervailing duty orders on OCTG from China and to instruct U.S. 
Customs and Border Protection (CBP) to suspend entries of merchandise 
produced using Chinese inputs in a third country, i.e., Brunei or the 
Philippines, and exported to the United States.

Suspension of Liquidation

    As stated above, Commerce has made preliminary affirmative findings 
of circumvention of the antidumping and countervailing duty orders on 
OCTG from China for welded OCTG completed in Brunei or the Philippines 
using inputs manufactured in China and subsequently exported from 
Brunei or the Philippines to the United States. These preliminary 
circumvention findings apply to welded OCTG assembled or completed in 
Brunei or the Philippines using inputs manufactured in China and 
subsequently exported from Brunei or the Philippines to the United 
States. In accordance with section 19 CFR 351.225(l)(2), Commerce will 
direct CBP to suspend liquidation and to require a cash deposit of 
estimated duties on unliquidated entries of welded OCTG completed in 
Brunei or the Philippines using inputs manufactured in China, 
subsequently exported from Brunei or the Philippines to the United 
States, and entered, or withdrawn from warehouse, for consumption on or 
after November 3, 2020, the date of initiation of these anti-
circumvention inquiries. The suspension of liquidation will remain in 
effect until further notice. For entries of such merchandise produced 
in Brunei or the Philippines, Commerce will instruct CBP to require 
antidumping duty cash deposits equal to the rate established for the 
China-wide entity, i.e., 99.14 percent,\3\ and countervailing duty cash 
deposits equal to the current all-others rate, i.e., 27.08 percent.\4\
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    \3\ See Oil Country Tubular Goods from the People's Republic of 
China: Final Results of Antidumping Duty Administrative Review; 
2017-2018, 84 FR 32125, 32126 (July 5, 2019).
    \4\ See Oil Country Tubular Goods from the People's Republic of 
China: Notice of Court Decision Not in Harmony With the Amended 
Final Determination of the Countervailing Duty Investigation, 82 FR 
25770 (June 5, 2017).
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    Welded OCTG assembled or completed in Brunei or the Philippines 
using non-Chinese inputs is not subject to these anti-circumvention 
inquiries. However, because the mandatory respondents are unable to 
track welded OCTG to the country of origin of inputs used in the 
production of welded OCTG,\5\ Commerce will not implement a 
certification process at this preliminary stage, and Commerce will 
require cash deposits on all entries of welded OCTG from Brunei and the 
Philippines.\6\ However, we intend to implement a certification process 
in the future for any companies that may be established in Brunei or 
the Philippines, and we plan to issue draft certifications shortly 
after these preliminary determinations of circumvention. With respect 
to the mandatory respondents, Commerce will reconsider eligibility to 
participate in a certification process if a party demonstrates in a 
future segment of the proceeding (i.e., a changed circumstances review 
or an administrative review) that the OCTG being entered into the 
United States that it produces is not produced using Chinese inputs. 
Interested parties are invited to comment on this issue in their case 
briefs.
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    \5\ See, e.g., HLDS (B) Steel Sdn. Bhd.'s Letter, ``HLDSB 
Initial Questionnaire Response,'' dated March 16, 2021 at 25; and 
HLD Clark Steel Pipe Co., Inc.'s Letter, ``HLD Clark Initial 
Questionnaire Response,'' dated March 16, 2021 at 26.
    \6\ See, e.g., Diamond Sawblades and Parts Thereof from the 
People's Republic of China: Final Determination of Anti-
Circumvention Inquiry, 84 FR 33920, 33921 (July 16, 2019).
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Public Comment

    Commerce intends to disclose the analysis used in these preliminary 
findings within five days of publication of this notice. Interested 
parties are invited to comment on the preliminary determinations of 
these anti-circumvention inquiries. Pursuant to 19 CFR 351.309(b)(2), 
interested parties may submit case briefs not later than 30 days after 
the date of publication of this notice. Rebuttal briefs, limited to 
issues raised in the case briefs, may not be filed later than seven 
days after the time limit for filing case briefs.\7\ Pursuant to 19 CFR 
351.309(c)(2) and (d)(2), parties who submit case or rebuttal briefs in 
these anti-circumvention inquiries are encouraged to submit with each 
argument: (1) A statement of the issue; (2) a brief summary of the 
argument; and (3) a table of authorities.
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    \7\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements); Temporary Rule Modifying AD/CVD Service 
Requirements Due to COVID-19, 85 FR 17006 (March 26, 2020); and 
Temporary Rule Modifying AD/CVD Service Requirements Due to COVID-
19; Extension of Effective Period, 85 FR 41363 (July 10, 2020).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, and a list of the issues to be discussed. If a request 
for a hearing is made, Commerce intends to hold the hearing at a time 
and date to be determined. Parties should confirm

[[Page 43629]]

the date and time of the hearing two days before the scheduled date of 
the hearing.

International Trade Commission Notification

    Consistent with section 781(e) of the Act, Commerce will notify the 
International Trade Commission (ITC) of these preliminary 
determinations to include the merchandise subject to these anti-
circumvention inquiries within the antidumping and countervailing duty 
orders on OCTG from China. Pursuant to section 781(e) of the Act, the 
ITC may request consultations concerning Commerce's proposed inclusion 
of the subject merchandise. If, after consultations, the ITC believes 
that a significant injury issue is presented by the proposed inclusion, 
it will have 60 days from the date of notification by Commerce to 
provide written advice.

Final Determinations

    According to section 781(f) of the Act, Commerce shall, to the 
maximum extent practicable, make its anti-circumvention determination 
within 300 days from the date of the initiation of the inquiry.\8\ Due 
to the complicated nature of these anti-circumvention inquiries, we are 
hereby extending the deadline for the final determinations of these 
anti-circumvention inquiries by 50 days. Therefore, Commerce intends to 
issue the final determinations of these anti-circumvention inquiries to 
October 28, 2021.
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    \8\ See also 19 CFR 351.225(f)(iii)(5) (explaining that Commerce 
will issue a final anticircumvention ruling ``normally within 300 
days from the date of the initiation of the. . . inquiry'').
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    These preliminary affirmative circumvention determinations are 
published in accordance with section 781(b) of the Act and 19 CFR 
351.225(f).

    Dated: August 4, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Orders
IV. Scope of the Anti-Circumvention Inquiries
V. The Period of Inquiries
VI. Surrogate Country and Valuation Methodology for Inputs From 
China
VII. Statutory Framework
VIII. Statutory Analysis
IX. Other Statutory Criteria
X. Summary of Statutory Analysis
XI. Country-Wide Determinations
XII. Recommendation

[FR Doc. 2021-17016 Filed 8-9-21; 8:45 am]
BILLING CODE 3510-DS-P