Large Diameter Welded Pipe From the People's Republic of China: Countervailing Duty Order

Published date06 March 2019
Citation84 FR 8075
Record Number2019-04049
SectionNotices
CourtInternational Trade Administration
Federal Register, Volume 84 Issue 44 (Wednesday, March 6, 2019)
[Federal Register Volume 84, Number 44 (Wednesday, March 6, 2019)]
                [Notices]
                [Pages 8075-8077]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2019-04049]
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                DEPARTMENT OF COMMERCE
                International Trade Administration
                [C-570-078]
                Large Diameter Welded Pipe From the People's Republic of China:
                Countervailing Duty Order
                AGENCY: Enforcement and Compliance, International Trade Administration,
                Department of Commerce.
                SUMMARY: Based on affirmative final determinations by the Department of
                Commerce (Commerce) and the International Trade Commission (ITC),
                Commerce is issuing a countervailing duty order on large diameter
                welded carbon and alloy steel structural pipe from the People's
                Republic of China (China).
                DATES: Applicable March 6, 2019.
                FOR FURTHER INFORMATION CONTACT: Justin Neuman at (202) 482-0486 or
                Benito Ballesteros at (202) 482-7425, AD/CVD Operations, Enforcement
                and Compliance, U.S. Department of Commerce, 1401 Constitution Avenue
                NW, Washington, DC 20230.
                SUPPLEMENTARY INFORMATION:
                Background
                 On November 14, 2018, Commerce published its affirmative final
                determination in the countervailing duty investigation of large
                diameter welded pipe from China.\1\ The scope of the investigation in
                Commerce's final determination covered large diameter welded carbon and
                alloy steel line pipe (welded line pipe), large diameter welded carbon
                and alloy steel structural pipe (welded structural pipe), and stainless
                steel large diameter welded pipe (stainless steel pipe) from China.\2\
                As discussed below, the ITC subsequently found three domestic like
                products covered by the scope of the investigation (welded line pipe,
                welded structural pipe, and stainless steel pipe) and accordingly made
                a separate injury determination with respect to each domestic like
                product. On January 30, 2019, the ITC notified Commerce of its final
                determination, pursuant to section 705(d) of the Tariff Act of 1930, as
                amended (the Act), that an industry in the United States is materially
                injured within the meaning of section 705(b)(1)(A)(i) of the Act by
                reason of subsidized imports of welded structural pipe from China.\3\
                Additionally, the ITC made a negligibility determination with respect
                to welded line pipe and a negative determination of material injury or
                threat of material injury with respect to stainless steel pipe.\4\ On
                February 13, 2019, Commerce released draft revised scope language for
                comment by parties. American Cast Iron Pipe Company, Berg Steel Pipe
                Corp., Berg Spiral Pipe Corp., Dura-Bond Industries, Stupp Corporation,
                Greens Bayou Pipe Mill, LP, JSW Steel (USA) Inc., Skyline Steel,
                Trinity Products LLC, and Welspun Corp., Ltd. (collectively, the
                petitioners) provided comments, which we have incorporated into the
                final scope of the order.\5\
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                 \1\ See Countervailing Duty Investigation of Large Diameter
                Welded Pipe from the People's Republic of China: Final Affirmative
                Determination, 83 FR 56804 (November 14, 2018).
                 \2\ Id.
                 \3\ See ITC Notification Letter to the Deputy Assistant
                Secretary for Enforcement and Compliance, referencing ITC
                Investigation Nos. 701-TA-593-594, 731-TA-1402, and 731-TA-1404
                (January 30, 2019) (ITC Notification). See also Large Diameter
                Welded Pipe from China and India; Determinations, 84 FR 1785
                (February 5, 2019) (ITC Final Determination) and Large Diameter
                Welded Pipe from China and India, Investigation Nos. 701-TA-593-594,
                731-TA-1402 and 731-TA-1404 (Final), Publication 4859, January 2019
                (Final ITC Report).
                 \4\ Id.
                 \5\ See Petitioners' Letter, ``Large Diameter Welded Pipe from
                India and the People's Republic of China: Comments on the Scopes of
                the Orders,'' dated February 15, 2019.
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                Scope of the Order
                 The product covered by this order is welded structural pipe from
                China. For a complete description of the scope of this order, see the
                Appendix to this notice.
                Countervailing Duty Order
                 On January 30, 2019, in accordance with section 705(b)(1)(A)(i) and
                705(d) of the Act, the ITC notified Commerce of its final determination
                in this investigation, in which it found that imports of welded
                structural pipe are materially injuring a U.S. industry.\6\ As a
                result, and in accordance with section 705(c)(2) and 706 of the Act, we
                are publishing this countervailing duty
                [[Page 8076]]
                order. As noted above, in its determination, the ITC found three
                domestic like products covered by the scope of the investigation:
                welded line pipe, welded structural pipe, and stainless steel pipe. The
                ITC made a negative determination with respect to stainless steel pipe
                from China, and found that imports of welded line pipe from China are
                negligible. The ITC made an affirmative determination with respect to
                welded structural pipe from China. Because the ITC made distinct and
                different injury determinations for separate domestic like products,
                Commerce will instruct U.S. Customs and Border Protection (CBP) to
                assess countervailing duties on entries of welded structural pipe
                (subject merchandise) from China, and not on entries of welded line
                pipe and stainless steel pipe (excluded merchandise) from China.
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                 \6\ See ITC Notification; ITC Final Determination, 84 FR 1785.
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                Welded Line Pipe
                 The Final ITC Report describes welded line pipe as a tubular
                product produced from carbon and alloy steel, produced to American
                Petroleum Institute (API) 5L specifications, and designed for conveying
                liquids and gases.\7\ Because the ITC determined that subsidized
                imports of welded line pipe from China are negligible, Commerce will
                direct CBP to terminate the suspension of liquidation for entries of
                welded line pipe from China entered, or withdrawn from warehouse, and
                to refund all cash deposits with respect to these entries pursuant to
                section 705(c)(2) of the Act.
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                 \7\ See Final ITC Report at 11-12.
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                Welded Structural Pipe
                 The Final ITC Report describes welded structural pipe as a tubular
                product produced from carbon and alloy steel, produced to American
                Society for Testing and Materials (ASTM) specifications, and designed
                for support in construction projects and piling.\8\ Because the ITC
                found that subsidized imports of welded structural pipe from China are
                materially injuring a U.S. industry,\9\ Commerce will direct CBP that
                all unliquidated entries of subject merchandise from China, entered or
                withdrawn from warehouse, are subject to the assessment of
                countervailing duties pursuant to section 706 of the Act, as described
                below.
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                 \8\ Id.
                 \9\ Id. at 1 and 3.
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                 As a result of the ITC Final Determination, in accordance with
                section 706(a) of the Act, Commerce will direct CBP to assess, upon
                further instruction by Commerce, countervailing duties for all relevant
                entries of welded structural pipe from China. Countervailing duties
                will be assessed on unliquidated entries of welded structural pipe from
                China entered, or withdrawn from warehouse, for consumption on or after
                June 29, 2018, the date of publication of the Preliminary
                Determination,\10\ but will not be assessed on entries occurring after
                the expiration of the provisional measures period (October 27, 2018),
                in accordance with section 703(d) of the Act, until the date of
                publication of the ITC Final Determination in the Federal Register.
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                 \10\ See Large Diameter Welded Pipe from the People's Republic
                of China: Preliminary Affirmative Countervailing Duty Determination
                and Alignment of Final Determination with Final Antidumping
                Determination, 83 FR 30695 (June 29, 2018) (Preliminary
                Determination).
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                Stainless Steel Pipe
                 The Final ITC Report describes stainless steel pipe as being
                produced from stainless steel for its high-chrome chemistry and
                corrosion-resistant properties.\11\ Because the ITC made a negative
                determination of material injury or threat of material injury by reason
                of subsidized imports of stainless steel pipe from China,\12\ Commerce
                will direct CBP to terminate the suspension of liquidation for entries
                of stainless steel pipe from China entered, or withdrawn from
                warehouse, and to refund all cash deposits with respect to these
                entries pursuant to section 705(c)(2) of the Act.
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                 \11\ Id. at 10.
                 \12\ Id. at 1 and 3.
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                Suspension of Liquidation
                 In accordance with section 706 of the Act, Commerce will direct CBP
                to reinstitute the suspension of liquidation on all relevant entries of
                subject merchandise (i.e., welded structural pipe) from China,
                effective the date of publication of the ITC Final Determination in the
                Federal Register, and to assess, upon further instruction by Commerce
                pursuant to section 706(a)(1) of the Act, countervailing duties for
                each entry of the subject merchandise in an amount based on the net
                countervailable subsidy rates for the subject merchandise. We intend to
                instruct CBP to require, at the same time as importers would normally
                deposit estimated import duties on this merchandise, cash deposits for
                each entry of subject merchandise equal to the rates noted below. These
                instructions suspending liquidation will remain in effect until further
                notice. The all-others rate applies to all other producers or exporters
                not specifically listed.
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                 Subsidy
                 Exporter or producer rate
                 (percent)
                ------------------------------------------------------------------------
                Hefei Zijin Steel Tube Manufacturing Co.................... 198.49
                Hefei Ziking Steel Pipe.................................... 198.49
                Panyu Chu Kong Steel Pipe Co. Ltd.......................... 198.49
                All-Others................................................. 198.49
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                Notifications to Interested Parties
                 This notice constitutes the countervailing duty order with respect
                to welded structural pipe from China pursuant to section 706(a) of the
                Act. Interested parties can find a list of countervailing duty orders
                currently in effect at http://enforcement.trade.gov/stats/iastats1.html.
                 This order is published in accordance with sections 705(c) and
                706(a) of the Act and 19 CFR 351.211(b).
                 Dated: February 28, 2019.
                Gary Taverman,
                Deputy Assistant Secretary for Antidumping and Countervailing Duty
                Operations, performing the non-exclusive functions and duties of the
                Assistant Secretary for Enforcement and Compliance.
                Appendix--Scope of the Order
                 The merchandise covered by this order is welded carbon and alloy
                steel structural pipe (other than stainless steel pipe), more than
                406.4 mm (16 inches) in nominal outside diameter (large diameter
                welded structural pipe), regardless of wall thickness, length,
                surface finish, grade, end finish, or stenciling. Large diameter
                welded structural pipe may be used for structural purposes,
                including, but not limited to, piling. Specifically, not included is
                large diameter welded pipe produced only to specifications of the
                American Water Works Association (AWWA) for water and sewage pipe.
                 Large diameter welded structural pipe may be produced to
                American Society for Testing and Materials (ASTM) standards A500,
                A252, or A53, or other relevant domestic specifications, grades and/
                or standards. Large diameter welded structural pipe can be produced
                to comparable foreign specifications, grades and/or standards or to
                proprietary specifications, grades and/or standards, or can be non-
                graded material. All structural pipe meeting the physical
                description set forth above, including any dual- or multiple-
                certified/stenciled pipe with an ASTM (or comparable) welded
                structural pipe certification/stencil, is covered by the scope of
                this order.
                 Subject merchandise also includes large diameter welded
                structural pipe that has been further processed in a third country,
                including but not limited to coating, painting, notching, beveling,
                cutting, punching, welding, or any other processing that would not
                otherwise remove the merchandise from the scope of the order if
                performed in the country of manufacture of
                [[Page 8077]]
                the in-scope large diameter welded structural pipe.
                 Excluded from the scope of this order is line pipe which is
                suitable for transporting oil, gas, slurry, steam, or other fluids,
                liquids, or gases, and is normally produced to American Petroleum
                Institute (API) specification 5L or equivalent foreign
                specifications grades and/or standards or to proprietary
                specifications, grades and/or standards.
                 The large diameter welded structural pipe that is subject to
                this order is currently classifiable in the Harmonized Tariff
                Schedule of the United States (HTSUS) under subheadings
                7305.31.4000, 7305.31.6090, 7305.39.1000 and 7305.39.5000.
                Merchandise currently classifiable under subheadings 7305.11.1030,
                7305.11.1060, 7305.11.5000, 7305.12.1030, 7305.12.1060,
                7305.12.5000, 7305.19.1030, 7305.19.1060, and 7305.19.5000 and that
                otherwise meets the above scope language is also covered. While the
                HTSUS subheadings are provided for convenience and customs purposes,
                the written description of the scope of this order is dispositive.
                [FR Doc. 2019-04049 Filed 3-5-19; 8:45 am]
                 BILLING CODE 3510-DS-P
                

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