[Federal Register Volume 85, Number 239 (Friday, December 11, 2020)]
[Notices]
[Pages 80024-80026]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27306]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-910]
Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe
from the Republic of Korea: Preliminary Affirmative Countervailing Duty
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 seamless carbon and alloy steel standard, line, and
pressure pipe (seamless pipe) from the Republic of Korea (Korea). The
period of investigation is January 1, 2019 through December 31, 2019.
Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable December 11, 2020.
FOR FURTHER INFORMATION CONTACT: Moses Song or Natasia Harrison, 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) 482-7885 or (202) 482-1240,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended
[[Page 80025]]
(the Act). Commerce published the notice of initiation of this
investigation on August 4, 2020.\1\ On September 2, 2020, Commerce
postponed the preliminary determination of this investigation to
December 7, 2020.\2\ 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 http://enforcement.trade.gov/frn/. The signed
and electronic versions of the Preliminary Decision Memorandum are
identical in content.
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\1\ See Seamless Carbon and Alloy Steel Standard, Line, and
Pressure Pipe from the Republic of Korea and the Russian Federation:
Initiation of Countervailing Duty Investigations, 85 FR 47170
(August 4, 2020) (Initiation Notice).
\2\ See Seamless Carbon and Alloy Steel Standard, Line, and
Pressure Pipe from the Republic of Korea and the Russian Federation:
Postponement of Preliminary Determinations in the Countervailing
Duty Investigations, 85 FR 54533 (September 2, 2020).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination of the Countervailing Duty Investigation
of Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe
from the Republic of Korea,'' 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 seamless pipe from
Korea. 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\ we
set aside a period of time, as stated in the Initiation Notice, for
parties to raise issues regarding product coverage (i.e., scope).\5\ We
received comments concerning the scope of the antidumping duty (AD) and
countervailing duty (CVD) investigations of seamless pipe as it
appeared in the Initiation Notice. We are currently evaluating the
scope comments filed by the interested parties. We intend to issue our
preliminary decision regarding the scope of this and the companion AD
and CVD investigations no later than February 3, 2021, the deadline for
the preliminary determinations in the companion AD investigations with
respect to Korea, Russia, and Ukraine.\6\ We will issue a final scope
decision after considering any relevant comments submitted in case and
rebuttal briefs.\7\
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice, 85 FR at 47171.
\6\ See Seamless Carbon and Alloy Steel Standard, Line, and
Pressure Pipe from the Republic of Korea, the Russian Federation,
and Ukraine: Postponement of Preliminary Determinations in the Less-
Than-Fair Value Investigations, 85 FR 73687 (November 19, 2020).
\7\ The deadlines for interested parties to submit scope case
and rebuttal briefs will be established in the 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.\8\
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\8\ 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 respondent did not
act to the best of its ability to respond to Commerce's requests for
information, Commerce drew an adverse inference where appropriate in
selecting from among the facts otherwise available.\9\ For further
information, see ``Use of Facts Otherwise Available and Adverse
Inferences'' in the Preliminary Decision Memorandum.
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\9\ See sections 776(a) and (b) of the Act.
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Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final CVD determination in this investigation with the
final determination in the companion AD investigation of seamless pipe
from Korea based on a request made by the petitioner.\10\ 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 April 19, 2021, unless postponed.
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\10\ See Vallourec Star, LP's (Petitioner's) Letter, ``Seamless
Carbon and Alloy Steel Standard, Line, and Pressure Pipe from Korea
and Russia: Request to Align Final Determinations,'' dated October
15, 2020.
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All-Others Rate
Sections 703(d) 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. 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 preliminarily calculated an
individual estimated countervailable subsidy rate for Iljin Steel
Corporation (Iljin), the only individually examined exporter/producer
in this investigation. Because the only individually calculated rate is
not zero, de minimis, or based entirely on facts otherwise available,
we are preliminarily assigning the estimated countervailable subsidy
rate calculated for Iljin to all other producers and exporters,
pursuant to section 705(c)(5)(A)(i) of the Act.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Company percent
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Iljin Steel Corporation................................. 2.13
All Others.............................................. 2.13 percent
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Suspension of Liquidation
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
Commerce is currently unable to conduct on-site verification of the
information relied upon in making its
[[Page 80026]]
final determination in this investigation. Accordingly, we intend to
take additional steps in lieu of on-site verification. Commerce will
notify interested parties of any additional documentation or
information required.
Public Comment
As noted above, Commerce will issue a preliminary scope decision no
later than February 3, 2021. All interested parties will have the
opportunity to submit case and rebuttal briefs on the preliminary scope
determination by the deadline established in the memorandum. All
parties filing scope briefs or rebuttals thereto, must file identical
documents simultaneously on the records of all the ongoing AD and CVD
seamless pipe investigations. No new factual information or business
proprietary information may be included in either scope briefs or
rebuttal scope briefs.
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance. Interested parties
will be notified of the deadline for the submission of such 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.\11\ Commerce has modified
certain of its requirements for serving documents containing business
proprietary information until further notice.\12\ 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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\11\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements); and Temporary Rule
Modifying AD/CVD Service Requirements Due to COVID-19, 85 FR
17006, 17007 (March 26, 2020).
\12\ See 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, 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, time, and
location 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 preliminary
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 Commerce's preliminary determination or 45 days
after its 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: December 7, 2020.
Jeffrey I. Kessler,
Assistant Secretaryfor Enforcement and Compliance.
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 5L
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 investigations 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 5L
specifications.
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 Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Alignment
VI. Injury Test
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Subsidies Valuation Information
IX. Analysis of Programs
X. Recommendation
[FR Doc. 2020-27306 Filed 12-10-20; 8:45 am]
BILLING CODE 3510-DS-P