[Federal Register Volume 87, Number 49 (Monday, March 14, 2022)]
[Notices]
[Pages 14249-14252]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-05333]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-821-834]


Oil Country Tubular Goods From the Russian Federation: 
Preliminary Affirmative Countervailing Duty Determination, Preliminary 
Negative Critical Circumstances Determination, and Alignment of Final 
Determination With Final Antidumping Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of oil country tubular goods (OCTG) from the Russian 
Federation (Russia) for the period of investigation (POI) January 1, 
2020, through December 31, 2020. Interested parties are invited to 
comment on this preliminary determination.

DATES: Applicable March 14, 2022.

FOR FURTHER INFORMATION CONTACT: Brontee Jeffries or Theodore Pearson,

[[Page 14250]]

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) 482-4645 or (202) 
482-2631, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on November 1, 
2021.\1\ On November 23, 2021, Commerce postponed the preliminary 
determination of this investigation to March 7, 2022.\2\
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    \1\ See Oil Country Tubular Goods From the Republic of Korea and 
the Russia Federation: Initiation of Countervailing Duty 
Investigations, 86 FR 60210 (November 1, 2021).
    \2\ See Oil Country Tubular Goods from the Republic of Korea and 
the Russian Federation: Postponement of Preliminary Determinations 
in the Countervailing Duty Investigations, (November 23, 2021).
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    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\3\ A list of topics discussed in the Preliminary Decision 
Memorandum is included as Appendix II 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 http://access.trade.gov. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination and Preliminary Negative Critical Circumstances 
Determination in the Countervailing Duty Investigation of Oil 
Country Tubular Goods from the Russian Federation,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are OCTG from Russia. 
For a complete description of the scope of this investigation, see 
Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. For a summary of the product coverage comments 
and rebuttal responses submitted to the record for this preliminary 
determination and accompanying discussion and analysis of all comments 
timely received, see the Preliminary Scope Decision Memorandum.\6\ 
Commerce is preliminarily modifying the scope language as it appeared 
in the Initiation Notice, see Appendix I.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice, 86 FR at 60210-11.
    \6\ See Memorandum, ``Antidumping Duty Investigations of Oil 
Country Tubular Goods from Argentina, Mexico, and the Russian 
Federation and Countervailing Duty Investigations of Oil Country 
Tubular Goods from the Republic of Korea, and the Russian 
Federation: Preliminary Scope Decision Memorandum,'' dated March 7, 
2022 (Preliminary Scope Decision Memorandum).
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily 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.\7\ For a full description of the methodology underlying our 
preliminary conclusions, see the Preliminary Decision Memorandum.
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    \7\ 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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    Commerce notes that, in making these findings, it relied, in part, 
on facts available and, because it finds that the Government of Russia 
did not act to the best of its ability to respond to Commerce's 
requests for information, it drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\8\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Preliminary Decision Memorandum.
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    \8\ See sections 776(a) and (b) of the Act.
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Alignment

    In accordance with section 705(a)(1) of the Act and 19 CFR 
351.210(b)(4), and based on the petitioners' request,\9\ we are 
aligning the final CVD determination in this investigation with the 
final determination in the companion AD investigations of OCTG from 
Argentina, Mexico, Korea, and Russia. Consequently, the final CVD 
determination will be issued on the same date as the final AD 
determination, which is currently scheduled to be issued no later than 
July 18, 2022, unless postponed.
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    \9\ See Petitioners' Letter, ``Oil Country Tubular Goods from 
Argentina, Mexico, Russia, and the Republic of Korea: Petitioners' 
Request to Extend Preliminary Determinations and Align the 
Countervailing Duty Investigations with the Concurrent Less-Than-
Fair-Value Investigations,'' dated February 10, 2022.
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Preliminary Negative Determination of Critical Circumstances

    The petitioners alleged, based on publicly available trade 
statistics, that there is a reasonable basis to believe or suspect that 
critical circumstances exist regarding imports of OCTG.\10\ Based on 
monthly shipment information requested from the mandatory respondents, 
Commerce is preliminarily determining that critical circumstances do 
not exist within the meaning of section 703(e)(1) of the Act. For 
further information, see the Preliminary Decision Memorandum.
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    \10\ See Petitioners' Letter, ``Oil Country Tubular Goods from 
the Russian Federation: Critical Circumstances Allegation,'' dated 
February 15, 2022.
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All-Others Rate

    Sections 703(d)(1)(A)(i) and 705(c)(5)(A) of the Act provide that, 
in the preliminary determination, Commerce shall determine an estimated 
all-others rate for companies not individually examined. Pursuant to 
section 705(c)(5)(A)(i) of the Act, this rate shall normally be an 
amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
rates that are zero, de minimis, or rates based entirely under section 
776 of the Act.
    We preliminarily calculated individual estimated countervailable 
subsidy rates for TMK Group (TMK) and United Metallurgical Company and 
Vyksa Steel Works (collectively, OMK) that are not zero, de minimis, or 
based entirely on facts otherwise available. Commerce calculated the 
all-others rate using a weighted average of the individual estimated 
subsidy rates calculated for the examined respondents using each 
company's publicly-ranged values for the merchandise under 
consideration.\11\
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    \11\ With two respondents under examination, Commerce normally 
calculates (A) a weighted-average of the estimated subsidy rates 
calculated for the examined respondents; (B) a simple average of the 
estimated subsidy rates calculated for the examined respondents; and 
(C) a weighted-average of the estimated subsidy rates calculated for 
the examined respondents using each company's publicly-ranged U.S. 
sale quantities for the merchandise under consideration. Commerce 
then compares (B) and (C) to (A) and selects the rate closest to (A) 
as the most appropriate rate for all other producers and exporters. 
See, e.g., Ball Bearings and Parts Thereof from France, Germany, 
Italy, Japan, and the United Kingdom: Final Results of Antidumping 
Duty Administrative Reviews, Final Results of Changed-Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661, 53663 
(September 1, 2010). See also Forged Steel Fluid End Blocks from 
Italy: Preliminary Affirmative Countervailing Duty Determination, 
and Alignment of Final Determination with Final Antidumping Duty 
Determination, 85 FR 31460, 31461 (May 26, 2020) (unchanged in 
Forged Steel Fluid End Blocks from Italy: Final Affirmative 
Countervailing Duty Determination, 85 FR 80022, 80023 (December 11, 
2020)).

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[[Page 14251]]

Preliminary Determination

    Commerce preliminary determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                  Manufacturer/exporter                    (percent  ad
                                                             valorem)
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Volzhsky Pipe Plant, Joint Stock Company; Sinarsky Pipe             1.37
 Plant, Joint Stock Company; Seversky Pipe Plant, Joint
 Stock Company; Taganrog Metallurgical Plant, Joint
 Stock Company; Orsky Machine Building Plant, Joint
 Stock Company; and PAO TMK \12\........................
JSC Vyksa Steel Works \13\..............................            1.68
All Others..............................................            1.53
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Suspension of Liquidation
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    \12\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Volzhsky Pipe Plant: TMK Neftegasservice-Nizhnevartovsk, Joint Stock 
Company; TMK Neftegasservice-Buzuluk, Limited Liability Company; 
Russian Research Institute of the Tube & Pipe Industries, JSC; and 
Scientific and Technical Center TMK, LLC.
    \13\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
JSC Vyska Steel Works: BusinessOptima; Metallolomaya Company OMK--
Ecometall; United Metallurgical Company; and Joint-Stock Company 
Trubodetal.
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    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.

Disclosure

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

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination. 
Normally, Commerce verifies information using standard procedures, 
including an on-site examination of original accounting, financial, and 
sales documentation. However, due to current travel restrictions in 
response to the global COVID-19 pandemic, Commerce is unable to conduct 
on-site verification in this investigation. Accordingly, we intend to 
verify the information relied upon in making the final determination 
through alternative means in lieu of an on-site verification.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance. Interested parties 
will be notified of the timeline for the submission of case briefs and 
written comments at a later date. Rebuttal briefs, limited to issues 
raised in case briefs, may be submitted no later than seven days after 
the deadline date for case briefs.\14\ Note that Commerce has 
temporarily modified certain of its requirements for serving documents 
containing business proprietary information, until further notice.\15\ 
Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case 
briefs or rebuttal briefs in this investigation 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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    \14\ 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) 
(Temporary Rule); and Temporary Rule Modifying AD/CVD Service 
Requirements Due to COVID-19; Extension of Effective Period, 85 FR 
41363 (July 10, 2020) (Temporary Rule Extension).
    \15\ See Temporary Rule; see also Temporary Rule Extension.
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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, whether any participant is a foreign national, 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 by telephone the date and time of 
the hearing two days before the scheduled date.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. If 
Commerce's final determination is affirmative, the ITC will make its 
final injury determination before the later of 120 days after the date 
of this preliminary determination or 45 days after the final 
determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act, and 19 CFR 351.205(c).

    Dated: March 7, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is certain OCTG, 
which are hollow steel products of circular cross-section, including 
oil well casing and tubing, of iron (other than case 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),

[[Page 14252]]

whether or not thread protectors are attached. The scope of this 
investigation also covers OCTG coupling stock.
    Subject merchandise includes material matching the above 
description that has been finished, packaged, or otherwise processed 
in a third country, including by performing any heat treatment, 
cutting, upsetting, threading, coupling, or any other finishing, 
packaging, or processing that would not otherwise remove the 
merchandise from the scope of the investigation if performed in the 
country of manufacture of the OCTG.
    Excluded from the scope of the investigation are: Casing, 
tubing, or coupling stock containing 10.5 percent or more by weight 
of chromium; drill pipe; unattached couplings; and unattached thread 
protectors.
    The merchandise subject to this investigation is currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under item numbers: 7304.29.1010, 7304.29.1020, 
7304.29.1030, 7304.29.1040, 7304.29.1050, 7304.29.1060, 
7304.29.1080, 7304.29.2010, 7304.29.2020, 7304.29.2030, 
7304.29.2040, 7304.29.2050, 7304.29.2060, 7304.29.2080, 
7304.29.3110, 7304.29.3120, 7304.29.3130, 7304.29.3140, 
7304.29.3150, 7304.29.3160, 7304.29.3180, 7304.29.4110, 
7304.29.4120, 7304.29.4130, 7304.29.4140, 7304.29.4150, 
7304.29.4160, 7304.29.4180, 7304.29.5015, 7304.29.5030, 
7304.29.5045, 7304.29.5060, 7304.29.5075, 7304.29.6115, 
7304.29.6130, 7304.29.6145, 7304.29.6160, 7304.29.6175, 
7305.20.2000, 7305.20.4000, 7305.20.6000, 7305.20.8000, 
7306.29.1030, 7306.29.1090, 7306.29.2000, 7306.29.3100, 
7306.29.4100, 7306.29.6010, 7306.29.6050, 7306.29.8110, and 
7306.29.8150.
    The merchandise subject to this investigation may also enter 
under the following HTSUS item numbers: 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, 7304.39.0076, 7304.39.0080, 
7304.59.6000, 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, 
7304.59.8070, 7304.59.8080, 7305.31.4000, 7305.31.6090, 
7306.30.5055, 7306.30.5090, 7306.50.5050, and 7306.50.5070.
    The HTSUS subheadings and specifications above are provided for 
convenience and customs purposes only. The written description of 
the scope of this investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Injury Test
IV. Preliminary Negative Determination of Critical Circumstances
V. Scope of the Investigation
VI. Use of Facts Otherwise Available and Application of Adverse 
Inferences
VII. Subsidies Valuation
VIII. Interest Rate Benchmarks, Discount Rates, and Natural Gas 
Benchmark
IX. Analysis of Programs
X. Recommendation

[FR Doc. 2022-05333 Filed 3-11-22; 8:45 am]
BILLING CODE 3510-DS-P