Notice2021-14138

Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe From the Republic of Korea: Final Affirmative Determination of Sales at Less Than Fair Value

Primary source

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Published
July 2, 2021

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The Department of Commerce (Commerce) determines that seamless carbon and alloy steel standard, line, and pressure pipe (seamless pipe) from the Republic of Korea (Korea) is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation is July 1, 2019, through June 30, 2020.

Full Text

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<title>Federal Register, Volume 86 Issue 125 (Friday, July 2, 2021)</title>
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[Federal Register Volume 86, Number 125 (Friday, July 2, 2021)]
[Notices]
[Pages 35274-35276]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-14138]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-909]


Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe 
From the Republic of Korea: Final Affirmative Determination of Sales at 
Less Than Fair Value

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

SUMMARY: The Department of Commerce (Commerce) determines that seamless 
carbon and alloy steel standard, line, and pressure pipe (seamless 
pipe) from the Republic of Korea (Korea) is being, or is likely to be, 
sold in the United States at less than fair value (LTFV). The period of 
investigation is July 1, 2019, through June 30, 2020.

DATES: Applicable July 2, 2021.

FOR FURTHER INFORMATION CONTACT: Joshua DeMoss, 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) 482-3362.

SUPPLEMENTARY INFORMATION:

Background

    On February 10, 2021, Commerce published the Preliminary 
Determination of sales at LTFV of seamless pipe from Korea, in which we 
also postponed the final determination to June 25, 2021.\1\ On March 
25, 2021, Commerce published its Post-Preliminary Determination with 
respect to the particular market situation analysis.\2\ We invited 
interested parties to comment on the Preliminary Determination and the 
Post-Preliminary Determination. The mandatory respondent in this 
investigation is ILJIN Steel Corporation (ILJIN). For a complete 
description of the events that followed the Preliminary Determination, 
see the Issues and Decision Memorandum.\3\ The Issues and 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 <a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
at <a href="http://enforcement.trade.gov/frn/">http://enforcement.trade.gov/frn/</a>.
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    \1\ See Seamless Carbon and Alloy Steel Standard, Line, and 
Pressure Pipe from the Republic of Korea: Preliminary Affirmative 
Determination of Sales at Less Than Fair Value, Postponement of 
Final Determination, and Extension of Provisional Measures, 86 FR 
8887 (February 10, 2021) (Preliminary Determination), and 
accompanying Preliminary Decision Memorandum (PDM).
    \2\ See Memorandum, ``Seamless Carbon and Alloy Steel Standard, 
Line, and Pressure Pipe from the Republic of Korea: Post-Preliminary 
Analysis of Particular Market Situation Allegations,'' dated March 
25, 2021 (Post-Preliminary Determination).
    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-Than-Fair-Value 
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 (Issues and Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is seamless pipe from 
Korea. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    We did not receive comments from interested parties on the 
Preliminary Scope Decision Memorandum.\4\ As discussed in the 
Preliminary Scope Decision Memorandum, Commerce modified the scope 
language as it appeared in the Initiation Notice to clarify certain 
exclusions. See the scope in Appendix I to this notice.
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    \4\ See Memorandum, ``Seamless Carbon and Alloy Steel Standard, 
Line, and Pressure Pipe from the Czech Republic, the Republic of 
Korea, the Russian Federation, and Ukraine: Preliminary Scope 
Decision Memorandum,'' dated January 13, 2021 (Preliminary Scope 
Decision Memorandum).
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are discussed in the Issues and Decision Memorandum. 
A list of topics included in the Issues and Decision Memorandum is 
included as Appendix II to this notice.

Verification

    Commerce was unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. However, we took additional steps in lieu of an on-site 
verification to verify the information relied upon in making this final 
determination, in accordance with section 782(i) of the Tariff Act of 
1930, as amended (the Act).\5\
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    \5\ See Commerce's Letter, Questionnaire In-Lieu-of-Onsite-
Verification, dated April 9, 2021; see also ILJIN's Letter, 
``Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe 
from the Republic of Korea: In Lieu of On-Site Verification 
Questionnaire Response,'' dated April 19, 2021.
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received, we made certain 
changes to the margin calculations for ILJIN. We have also revised the 
all-others rate. For a complete discussion of these changes, see the 
Issues and Decision Memorandum.

All-Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated all-
others rate shall be an amount equal to the weighted average of the 
estimated weighted-average dumping margins established for exporters 
and producers individually investigated, excluding any zero or de 
minimis margins, and margins determined entirely under section 776 of 
the Act.
    Commerce calculated an individual estimated weighted-average 
dumping margin for ILJIN, the only individually examined exporter/
producer in this investigation. Because the only individually 
calculated dumping margin is not zero, de minimis, or based entirely on 
facts otherwise available, the estimated weighted-average dumping 
margin calculated for ILJIN is the margin assigned to all other 
producers and exporters, pursuant to section 735(c)(5)(A) of the Act.

Final Determination

    The final estimated weighted-average dumping margins are as 
follows:

------------------------------------------------------------------------
                                                       Cash deposit rate
                                  Estimated weighted-    (adjusted for
        Exporter/producer           average dumping     subsidy offset)
                                   margin (percent)      (percent) \6\
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ILJIN Steel Corporation.........                4.48                4.44
All Others......................                4.48                4.44
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[[Page 35275]]

Disclosure
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    \6\ In the companion countervailing duty (CVD) investigation, 
Commerce calculated a 0.04 percent export subsidy rate for ILJIN 
Steel Corporation. See unpublished Federal Register notice titled 
``Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe 
from the Republic of Korea: Final Affirmative Countervailing Duty 
Determination,'' dated concurrently with this notice, and 
accompanying Issues and Decision Memorandum.
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    Commerce intends to disclose to interested parties the calculations 
performed for this final determination within five days of any public 
announcement or, if there is no public announcement, within five days 
of the date of publication of this notice, in accordance with 19 CFR 
351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we will direct 
U.S. Customs and Border Protection (CBP) to continue to suspend 
liquidation of all entries of seamless pipe from Korea, as described in 
Appendix I of this notice, which were entered, or withdrawn from 
warehouse, for consumption on or after February 10, 2021, the date of 
publication of the affirmative Preliminary Determination in the Federal 
Register.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), we will instruct CBP to require a cash deposit for such 
entries of merchandise equal to the following: (1) The cash deposit 
rate for the respondent listed in the table above will be equal to the 
respondent-specific estimated dumping margin listed for the respondent 
in the table; (2) if the exporter is not identified in the table above 
but the producer is, then the cash deposit rate will be equal to the 
respondent-specific estimated dumping margin established for that 
producer of the subject merchandise; and (3) the cash deposit rate for 
all other producers and exporters will be equal to the all-others 
estimated dumping margin listed in the table above. These suspension-
of-liquidation instructions will remain in effect until further notice.
    To determine the cash deposit rate, Commerce normally adjusts the 
estimated weighted-average dumping margin by the amount of export 
subsidies determined in a companion CVD proceeding when CVD provisional 
measures are in effect. Accordingly, where Commerce makes an 
affirmative determination for export subsidies, Commerce offsets the 
calculated estimated weighted-average dumping margin by the appropriate 
rate(s). In this case, we have found export subsidies for certain 
respondents. However, suspension of liquidation for provisional 
measures in the companion CVD case has been discontinued; therefore, we 
are not instructing CBP to collect cash deposits based upon the 
estimated weighted-average dumping margin adjusted for export subsidies 
at this time.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because Commerce's final determination 
is affirmative, in accordance with section 735(b)(2) of the Act, the 
ITC will make its final determinations as to whether the domestic 
industry in the United States is materially injured, or threatened with 
material injury, by reason of imports, or sales (or the likelihood of 
sales) for importation of seamless pipe from Korea no later than 45 
days after our final determination. If the ITC determines that such 
injury does not exist, these proceedings will be terminated, and all 
cash deposits will be refunded. If the ITC determines that such injury 
does exist, Commerce will issue an antidumping duty order directing CBP 
to assess, upon further instruction by Commerce, antidumping duties on 
all imports of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the effective date of the 
suspension of liquidation, as discussed above in the ``Continuation of 
Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice serves as a final reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of the return or destruction of APO materials, or 
conversion to judicial protective order, is hereby requested. Failure 
to comply with the regulations and the terms of an APO is a 
sanctionable violation.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).

    Dated: June 25, 2021.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.

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 51 
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 investigation are (1) 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 A53, ASTM A-106 or API 51 
specifications. Also excluded from the scope of the investigation 
are: (1) Oil country tubular goods consisting of drill pipe, casing, 
tubing and coupling stock; (2) all pipes meeting the chemical 
requirements of ASTM A-335 regardless of their conformity to the 
dimensional requirements of ASTM A-53, ASTM A-106 or API 5L; and (3) 
the exclusion for ASTM A335 applies to pipes meeting the comparable 
specifications GOST 550-75.
    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,

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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 Issues and Decision 
Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Adjustment for Countervailable Export Subsidies
V. Changes Since the Preliminary Determination
VI. Discussion of the Issues
    Comment 1: Whether Commerce Should Continue to Adjust U.S. 
Commission Expenses
    Comment 2: Whether Commerce Should Revise the Methodology for 
Warranty Expenses in the U.S. Price Calculations
    Comment 3: Whether Commerce's Adjustment to ILJIN's Costs of 
Defective Merchandise is Warranted
    Comment 4: Whether Commerce Should Continue to Adjust ILJIN's 
G&A Expenses
VII. Recommendation

[FR Doc. 2021-14138 Filed 7-1-21; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on July 2, 2021.

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