[Federal Register Volume 87, Number 149 (Thursday, August 4, 2022)]
[Notices]
[Pages 47711-47714]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-16715]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-910, C-570-911, A-580-809, A-583-008, A-583-814, A-533-502, A-
570-914, C-570-915, A-580-859, A-583-803]


Circular Welded Carbon Quality Steel Pipe From the People's 
Republic of China; Certain Circular Welded Non-Alloy Steel Pipe From 
the Republic of Korea; Certain Welded Carbon Steel Standard Pipes and 
Tubes From India; Certain Circular Welded Carbon Steel Pipes and Tubes 
From Taiwan; Certain Circular Welded Non-Alloy Steel Pipe From Taiwan; 
Light-Walled Rectangular Pipe and Tube From the People's Republic of 
China; Light-Walled Rectangular Pipe and Tube From the Republic of 
Korea; Light-Walled Welded Rectangular Carbon Steel Tubing From Taiwan: 
Initiation of Circumvention Inquiries on the Antidumping and 
Countervailing Duty Orders

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

SUMMARY: In response to requests from Atlas Tube Inc., Bull Moose Tube 
Company, Maruichi American Corporation, Nucor Tubular Products Inc., 
Searing Industries, Vest Inc., Wheatland Tube Company, and the United 
Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied 
Industrial and Service Workers International Union, AFL-CIO, CLC 
(collectively, the domestic interested parties), the U.S. Department of 
Commerce (Commerce) is initiating country-wide circumvention inquiries 
to determine whether imports of circular welded carbon quality steel 
pipe from the People's Republic of China (China) (CWP China), certain 
circular welded non-alloy steel pipe from the Republic of Korea (Korea) 
(CWP Korea), certain welded carbon steel standard pipes and tubes from 
India (pipe and tube India), certain circular welded carbon steel pipes 
and tubes from Taiwan (pipe and tube Taiwan), certain circular welded 
non-alloy steel pipe from Taiwan (CWP Taiwan), light-walled rectangular 
pipe and tube from China (LWRPT China), light-walled rectangular pipe 
and tube from Korea (LWRPT Korea), and light-walled welded rectangular 
carbon steel tubing (LWR tubing Taiwan), which are completed in the 
Socialist Republic of Vietnam (Vietnam) from hot-rolled steel (HRS) 
produced in China, Korea, India, or Taiwan are circumventing the 
respective antidumping duty (AD) and countervailing duty (CVD) orders 
on

[[Page 47712]]

CWP China, CWP Korea, pipe and tube India, pipe and tube Taiwan, CWP 
Taiwan, LWRPT China, LWRPT Korea, and LWR tubing Taiwan.

DATES: Applicable August 4, 2022.

FOR FURTHER INFORMATION CONTACT: Krisha Hill at (202) 482-4037 (CWP 
China, AD/CVD Operations, Office IV); Andre Gziryan at (202) 482-2201 
(CWP Korea, AD/CVD Operations, Office I); Dmitry Vladimirov at (202) 
482-0665 (Pipe and Tube India, AD/CVD Operations, Office I); Nicolas 
Mayora at (202) 482-3053 (Pipe and Tube Taiwan, AD/CVD Operations, 
Office V); Preston Cox and Scarlet Jaldin at (202) 482-5041 and (202) 
482-4275, respectively (CWP Taiwan, AD/CVD Operations, Office VI); 
Reginald Anadio at (202) 482-3166, (LWRPT China, AD/CVD Operations, 
Office IV); Carolyn Adie at (202) 482-6250 (LWRPT Korea, AD/CVD 
Operations, Office VI); and Bryan Hansen at (202) 482-3683 (LWR tubing 
Taiwan, AD/CVD Operations, Office I); Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On May 17, 2022, pursuant to section 781(b) of the Tariff Act of 
1930, as amended (the Act) and 19 CFR 351.226(i), domestic interested 
parties filed circumvention inquiry requests alleging that CWP, pipe 
and tube, LWRPT, and LWR tubing completed in Vietnam using HRS 
manufactured in China, India, Korea, or Taiwan are circumventing the 
Orders \1\ on pipe products from those countries and, accordingly, 
should be included within the scope of the Orders.\2\ On June 2, 2022, 
SeAH Steel VINA Corporation (SeAH VINA) filed opposition comments in 
response to the domestic interested parties' request regarding the CWP 
and pipe and tube allegations; the comments did not address the LWRPT 
and LWR tubing allegations.\3\ On June 13, 2022, we extended the 
deadline to initiate these circumvention inquiries by 15 days, in 
accordance with 19 CFR 351.226(d)(1).\4\ On June 21, 2022, we issued 
supplemental questionnaires to the domestic interested parties.\5\ On 
June 28, 2022, the domestic interested parties filed their responses to 
our supplemental questionnaires.\6\ On July 1, 2022, Commerce clarified 
that we issued the supplemental questionnaires because we had found 
that the requests to conduct circumvention inquiries were insufficient 
for purposes of initiation, in accordance with 19 CFR 351.226(d)(1)(i). 
Additionally, we clarified that we consider the initial requests and 
supplementary information together to constitute the applications for 
circumvention inquires, and that based on the date that the domestic 
parties filed the supplemental information, we consider the inquiry 
requests to have been filed on June 28, 2022.\7\ On July 20, 2022, 
Vietnam Haiphong Hongyuan Machinery Manufactory Co., Ltd. (Vietnam 
Haiphong) filed opposition comments in response to the domestic 
interested parties' request regarding CWP from China.\8\
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    \1\ See Notice of Antidumping Duty Order: Circular Welded Carbon 
Quality Steel Pipe from the People's Republic of China, 73 FR 42547 
(July 22, 2008); see also Circular Welded Carbon Quality Steel Pipe 
from the People's Republic of China: Notice of Amended Final 
Affirmative Countervailing Duty Determination and Notice of 
Countervailing Duty Order, 73 FR 42545 (July 22, 2008); Final 
Determination of Sales at Less Than Fair Value: Certain Welded Non-
Alloy Steel Pipe and Tube from the Republic of Korea, 57 FR 42942 
(September 17, 1992), as amended by Notice of Antidumping Orders: 
Certain Circular Welded Non-Alloy Steel Pipe from Brazil, the 
Republic of Korea (Korea), Mexico, and Venezuela, and Amendment to 
Final Determination of Sales at Less Than Fair Value: Certain 
Circular Welded Non-Alloy Steel Pipe from Korea, 57 FR 49453 
(November 2, 1992); Certain Circular Welded Carbon Steel Pipes and 
Tubes from Taiwan: Antidumping Duty Order, 49 FR 19369 (May 7, 
1984); Notice of Antidumping Duty Order: Circular Welded Non-Alloy 
Steel Pipe from Taiwan, 57 FR 49454 (November 2, 1992); Certain 
Welded Carbon Steel Standard Pipes and Tubes from India, 51 FR 17384 
(May 12, 1986); Antidumping Duty Order; Light-Walled Welded 
Rectangular Carbon Steel Tubing from Taiwan, 54 FR 12467 (March 27, 
1989); Light-Walled Rectangular Pipe and Tube from Mexico, the 
People's Republic of China, and the Republic of Korea: Antidumping 
Duty Orders; Light-Walled Rectangular Pipe and Tube from the 
Republic of Korea: Notice of Amended Final Determination of Sales at 
Less than Fair Value, 73 FR 45403 (August 5, 2008); and Light-Walled 
Rectangular Pipe and Tube from the People's Republic of China: 
Notice of Countervailing Duty Order, 73 FR 45405 (August 5, 2008) 
(collectively, Orders).
    \2\ See Domestic Interested Parties' Letters, ``Circular Welded 
Carbon Quality Steel Pipe from the People's Republic of China--
Request for Circumvention Inquiry''; ``Certain Circular Welded Non-
Alloy Steel Pipe from the Republic of Korea--Request for 
Circumvention Inquiry''; ``Certain Circular Welded Carbon Steel 
Pipes and Tubes from Taiwan (A-583-008) and Circular Welded Non-
Alloy Steel Pipe from Taiwan (A-583-814)--Request for Circumvention 
Inquiries''; ``Certain Welded Carbon Steel Standard Pipes and Tubes 
from India--Request for Circumvention Inquiry''; ``Light-Walled 
Rectangular Pipe and Tube from the People's Republic of China--
Request for Circumvention Inquiry''; ``Light-Walled Rectangular Pipe 
and Tube from the Republic of Korea: Request For Circumvention 
Inquiry''; and ``Light-Walled Welded Rectangular Carbon Steel Tubing 
from Taiwan: Request for a Circumvention Inquiry,'' all dated May 
17, 2022.
    \3\ See SeAH VINA's Letter, ``Certain Circular Welded Carbon 
Quality Steel Pipe and Certain Circular Welded Non Alloy Steel Pipe 
from China, Korea, Taiwan, and India--Comments in Opposition to 
Initiation of Anticircumvention Inquiries,'' dated June 2, 2022 
(SeAH VINA's Comments).
    \4\ See Memorandum, ``Circular Welded Carbon Quality Steel Pipe 
from the People's Republic of China (A-570-910 and C-570-911): 
Extension of Time to Determine Whether to Initiate Circumvention 
Inquiry,'' dated June 13, 2022.
    \5\ See Commerce's Letters, ``Circumvention Inquiry of Circular 
Welded Carbon Quality Steel Pipe from the People's Republic of China 
(A-570-910, C-570-911): Supplemental Questionnaire''; 
``Circumvention Inquiry of Certain Circular Welded Non-Alloy Steel 
Pipe from the Republic of Korea (A-580-809): Supplemental 
Questionnaire''; ``Circumvention Inquiry of Certain Circular Welded 
Carbon Steel Pipes and Tubes from Taiwan (A-583-008) and Circular 
Welded Non-Alloy Steel Pipe from Taiwan (A-583-814): Supplemental 
Questionnaire''; ``Circumvention Inquiry of Certain Welded Carbon 
Steel Standard Pipes and Tubes from India (A-533-502): Supplemental 
Questionnaire''; ``Circumvention Inquiry of Light-Walled Rectangular 
Pipe and Tube from the People's Republic of China (A-570-914, C-570-
915): Supplemental Questionnaire,'' (LWRPT China Supplemental); 
``Circumvention Inquiry of Light-Walled Rectangular Pipe and Tube 
from Korea (A-580-859): Supplemental Questionnaire''; and 
``Circumvention Inquiry of Light-Walled Welded Rectangular Carbon 
Steel Tubing from Taiwan (A-583-803): Supplemental Questionnaire,'' 
all dated June 21, 2022. Please note, LWRPT China Supplemental was 
uploaded on June 22, 2022.
    \6\ See Domestic Interested Parties' Letters, ``Certain Circular 
Welded Non-Alloy Steel Pipe from the Republic of Korea--Response to 
Supplemental Questionnaire''; ``Certain Circular Welded Carbon Steel 
Pipes and Tubes from Taiwan (A-583-008) and Circular Welded Non-
Alloy Steel Pipe from Taiwan (A-583-814)--Response to Supplemental 
Questionnaire''; ``Certain Welded Carbon Steel Standard Pipes and 
Tubes from India--Response to Supplemental Questionnaire''; ``Light-
Walled Rectangular Pipe and Tube from the People's Republic of 
China--Circumvention Inquiry Supplemental Questionnaire Response''; 
``Light-Walled Rectangular Pipe and Tube from the Republic of 
Korea--Response to Supplemental Questionnaire''; and ``Light-Walled 
Welded Rectangular Carbon Steel Tubing from Taiwan--Response to 
Supplemental Questionnaire,'' all dated June 28, 2022 (Supplemental 
Responses).
    \7\ See Commerce's Letter, ``Circumvention Inquiries on Circular 
and Rectangular Pipe and Tube Products from China, India, Korea, and 
Taiwan,'' dated July 1, 2022.
    \8\ See Vietnam Haiphong's Letter, ``Circular Welded Carbon 
Quality Steel Pipe from People Republic of China: Vietnam Haiphong 
Hongyuan Machinery Manufactory Co., Ltd.'s Comments on the Request 
for Circumvention Inquiry,'' dated July 20, 2022.
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Scope of the Orders

    Please see each respective Circumvention Initiation Memorandum for 
a complete description of the scope of Orders.\9\
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    \9\ For a complete description of the scope of the Orders, see 
Memoranda, ``Circular Welded Carbon Quality Steel Pipe from the 
People's Republic of China: Initiation of Circumvention Inquiry on 
the Antidumping Duty and Countervailing Duty Orders''; see also 
``Certain Circular Welded Non-Alloy Steel Pipe from the Republic of 
Korea: Initiation of Circumvention Inquiry on the Antidumping Duty 
Order''; ``Certain Welded Carbon Steel Standard Pipes and Tubes from 
India: Initiation of Circumvention Inquiry on the Antidumping Duty 
Order''; ``Certain Circular Welded Carbon Steel Pipes and Tubes from 
Taiwan: Initiation of Circumvention Inquiry on the Antidumping Duty 
Order''; ``Circular Welded Non-Alloy Steel Pipe from Taiwan: 
Initiation of Circumvention Inquiry on the Antidumping Duty Order''; 
``Light-Walled Rectangular Pipe and Tube from the People's Republic 
of China: Initiation of Circumvention Inquiry on the Antidumping 
Duty and Countervailing Duty Orders''; ``Light-Walled Rectangular 
Pipe and Tube from Korea: Initiation of Circumvention Inquiry on the 
Antidumping Duty Order''; and ``Light-Walled Welded Rectangular 
Carbon Steel Tubing from Taiwan: Initiation of Circumvention Inquiry 
on the Antidumping Duty Order,'' (collectively, Circumvention 
Initiation Memoranda).

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[[Page 47713]]

Merchandise Subject to the Circumvention Inquiries

    These circumvention inquiries cover CWP China, CWP Korea, pipe and 
tube India, pipe and tube Taiwan, CWP Taiwan, LWRPT China, LWRPT Korea, 
and LWR tubing Taiwan, completed in Vietnam using Chinese, Indian, 
Korean, or Taiwan-produced HRS and subsequently exported from Vietnam 
to the United States.

Initiation of Circumvention Inquiries

    Section 351.226(d) of Commerce's regulations states that if 
Commerce determines that a request for a circumvention inquiry 
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will 
accept the request and initiate a circumvention inquiry.'' Section 
351.226(c)(1) of Commerce's regulations, in turn, requires that each 
circumvention inquiry request alleges ``that the elements necessary for 
a circumvention determination under section 781 of the Act exist'' and 
be ``accompanied by information reasonably available to the interested 
party supporting these allegations.'' The domestic interested parties 
alleged circumvention pursuant to section 781(b) of the Act, which 
pertains to merchandise completed or assembled in other foreign 
countries.
    Section 781(b)(1) of the Act provides that Commerce may find 
circumvention of an AD order when merchandise of the same class or kind 
subject to the order is completed or assembled in a foreign country 
other than the country to which the order applies. In conducting a 
circumvention inquiry, under section 781(b)(1) of the Act, Commerce 
relies on the following criteria: (A) merchandise imported into the 
United States is of the same class or kind as any merchandise produced 
in a foreign country that is the subject of an AD or CVD order or 
finding; (B) before importation into the United States, such imported 
merchandise is completed or assembled in another foreign country from 
merchandise which is subject to the order or merchandise which is 
produced in the foreign country that is subject to the order; (C) the 
process of assembly or completion in the foreign country referred to in 
section (B) is minor or insignificant; (D) the value of the merchandise 
produced in the foreign country to which the AD or CVD order applies is 
a significant portion of the total value of the merchandise exported to 
the United States; and (E) the administering authority determines that 
action is appropriate to prevent evasion of such order or finding.
    In determining whether the process of assembly or completion in a 
third country is minor or insignificant under section 781(b)(1)(C) of 
the Act, section 781(b)(2) of the Act directs Commerce to consider: (A) 
the level of investment in the foreign country; (B) the level of 
research and development in the foreign country; (C) the nature of the 
production process in the foreign country; (D) the extent of production 
facilities in the foreign country; and (E) whether or not the value of 
processing performed in the foreign country represents a small 
proportion of the value of the merchandise imported into the United 
States. However, no single factor, by itself, controls Commerce's 
determination of whether the process of assembly or completion in a 
third country is minor or insignificant.\10\ Accordingly, it is 
Commerce's practice to evaluate each of these five factors, depending 
on the totality of the circumstances of the particular circumvention 
inquiry.\11\
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    \10\ See Statement of Administrative Action Accompanying the 
Uruguay Round Agreements Act, H.R. Doc. No. 103-316, Vol. 1 (1994) 
(SAA), at 893.
    \11\ See Uncovered Innerspring Units from the People's Republic 
of China: Final Affirmative Determination of Circumvention of the 
Antidumping Duty Order, 83 FR 65626 (December 21, 2018), and 
accompanying Issues and Decision Memorandum, at 4.
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    In addition, section 781(b)(3) of the Act sets forth additional 
factors to consider in determining whether to include merchandise 
assembled or completed in a third country within the scope of an AD or 
CVD order. Specifically, Commerce shall take into account such factors 
as: (A) the pattern of trade, including sourcing patterns; (B) whether 
the manufacturer or exporter of the merchandise is affiliated with the 
person who, in the third country, uses the merchandise to complete or 
assemble the merchandise which is subsequently imported into the United 
States; and (C) whether imports of the merchandise into the third 
country have increased after the initiation of the investigation that 
resulted in the issuance of such order or finding.
    Based on our analysis of the domestic interested parties' 
circumvention requests, Commerce determines that the domestic 
interested parties have satisfied the criteria under 19 CFR 351.226(c) 
to warrant the initiations of circumvention inquiries of these Orders. 
Therefore, pursuant to 19 CFR 351.226(d)(1)(ii), we are initiating the 
requested circumvention inquiries. For a full discussion of the basis 
for our decisions to initiate these circumvention inquiries, see each 
respective Circumvention Initiation Memorandum.\12\ As explained in the 
Circumvention Initiation Memoranda, the information provided by 
domestic interested parties in this instance warrants initiating these 
circumvention inquiries on a country-wide basis. Commerce has taken 
this approach in prior circumvention inquiries, where the facts 
warranted initiation on a country-wide basis.\13\
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    \12\ See Circumvention Initiation Memoranda. These memoranda are 
public documents and available electronically online via Enforcement 
and Compliance's Antidumping and Countervailing Duty Centralized 
Electronic Service System (ACCESS).
    \13\ See, e.g., Certain Corrosion-Resistant Steel Products from 
the Republic of Korea and Taiwan: Initiation of Anti-Circumvention 
Inquiries on the Antidumping Duty and Countervailing Duty Orders, 83 
FR 37785 (August 2, 2018); Carbon Steel Butt-Weld Pipe Fittings from 
the People's Republic of China: Initiation of Anti-Circumvention 
Inquiry on the Antidumping Duty Order, 82 FR 40556, 40560 (August 
25, 2017) (stating at initiation that Commerce would evaluate the 
extent to which a country-wide finding applicable to all exports 
might be warranted); and Certain Corrosion-Resistant Steel Products 
from the People's Republic of China: Initiation of Anti-
Circumvention Inquiries on the Antidumping Duty and Countervailing 
Duty Orders, 81 FR 79454, 79458 (November 14, 2016) (stating at 
initiation that Commerce would evaluate the extent to which a 
country-wide finding applicable to all exports might be warranted).
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    Consistent with the approach in the prior circumvention inquiries 
that were initiated on a country-wide basis, Commerce intends to issue 
questionnaires to solicit information from producers and exporters in 
Vietnam concerning their shipments of CWP China, CWP Korea, pipe and 
tube India, pipe and tube Taiwan, CWP Taiwan, LWRPT China, LWRPT Korea, 
and LWR tubing Taiwan, made respectively from Chinese, Indian, Korean, 
or Taiwan-origin HRS to the United States. A company's failure to 
respond completely to Commerce's requests for information may result in 
the application of partial or total facts available, pursuant to 
section 776(a) of the Act, which may include adverse inferences, 
pursuant to section 776(b) of the Act.

Suspension of Liquidation

    Pursuant to 19 CFR 351.226(l)(1), Commerce will notify U.S. Customs 
and Border Protection (CBP) of the initiation

[[Page 47714]]

and direct CBP to continue the suspension of liquidation of entries of 
products subject to the circumvention inquiries that were already 
subject to the suspension of liquidation under the Orders. Should 
Commerce issue preliminary or final circumvention determinations, 
Commerce will follow the suspension of liquidation rules under 19 CFR 
351.226(l)(2)-(4).

Notification to Interested Parties

    In accordance with 19 CFR 351.226(d) and section 781(b) of the Act, 
Commerce determines that the domestic interested parties' requests for 
these circumvention inquiries satisfy the requirements of 19 CFR 
351.226(c). Accordingly, Commerce is notifying all interested parties 
of the initiation of these circumvention inquiries to determine whether 
certain imports of CWP China, CWP Korea, pipe and tube India, pipe and 
tube Taiwan, CWP Taiwan, LWRPT China, LWRPT Korea, and LWR tubing 
Taiwan, completed in and exported from Vietnam using HRS inputs 
manufactured respectively in China, Korea, India, or Taiwan, are 
circumventing the Orders. In addition, we have included a description 
of the products that are the subject of these inquiries, and an 
explanation of the reasons for Commerce's decision to initiate these 
inquiries as provided above and in the accompanying Circumvention 
Initiation Memoranda.\14\ In accordance with 19 CFR 351.226(e)(2), 
Commerce intends to issue its final circumvention determination within 
300 days from the date of publication of the notice of initiation of a 
circumvention inquiry in the Federal Register.
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    \14\ See Circumvention Initiation Memoranda.
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    This notice is published in accordance with section 781(b) of the 
Act and 19 CFR 351.226(d)(1)(ii).

    Dated: July 28, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the Circumvention Initiation 
Memoranda

I. Summary
II. Background
III. Scope of the Order
IV. Merchandise Subject to the Circumvention Inquiry
V. Statutory and Regulatory Framework for Circumvention Inquiry
VI. Statutory Analysis for the Circumvention Inquiry
VII. Comments Opposing the Initiation of Circumvention Inquiry \15\
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    \15\ As Commerce did not receive comments with regard to the 
LWRPT allegations, this section is not present in those initiation 
memoranda.
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VIII. Country-Wide Circumvention Inquiry
IX. Recommendation

[FR Doc. 2022-16715 Filed 8-3-22; 8:45 am]
BILLING CODE 3510-DS-P