Notice2021-17016
Oil Country Tubular Goods From the People's Republic of China: Preliminary Affirmative Determinations of Circumvention
Primary source
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Published
August 10, 2021
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The Department of Commerce (Commerce) preliminarily determines that imports of welded oil country tubular goods (OCTG) completed in Brunei or the Philippines using inputs manufactured in the People's Republic of China (China) are circumventing the antidumping and countervailing duty orders on OCTG from China.
Full Text
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<title>Federal Register, Volume 86 Issue 151 (Tuesday, August 10, 2021)</title>
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[Federal Register Volume 86, Number 151 (Tuesday, August 10, 2021)]
[Notices]
[Pages 43627-43629]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-17016]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-943, C-570-944]
Oil Country Tubular Goods From the People's Republic of China:
Preliminary Affirmative Determinations of Circumvention
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that imports of welded oil country tubular goods (OCTG) completed in
Brunei or the Philippines using inputs manufactured in the People's
Republic of China (China) are circumventing the antidumping and
countervailing duty orders on OCTG from China.
DATES: Applicable August 10, 2021.
FOR FURTHER INFORMATION CONTACT: Yang Jin Chun or John Drury, 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) 482-5760 and (202) 482-0195,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On November 3, 2020, Commerce self-initiated these anti-
circumvention inquiries to determine whether certain imports of welded
OCTG completed in Brunei or the Philippines using inputs manufactured
in China are circumventing the antidumping and countervailing duty
orders on OCTG from China.\1\
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\1\ See Oil Country Tubular Goods from the People's Republic of
China: Self-Initiation of Anti-Circumvention Inquiries on the
Antidumping Duty and Countervailing Duty Orders, 85 FR 71877
(November 12, 2020).
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Scope of the Orders
The products covered by the orders are certain OCTG, which are
hollow steel products of circular cross-section, including oil well
casing and tubing, of iron (other than cast iron) or steel (both carbon
and alloy), whether seamless or welded, regardless of end finish. A
full description of the scope of the orders is contained in the
Preliminary Decision
[[Page 43628]]
Memorandum.\2\ The written description is dispositive.
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\2\ See Memorandum, ``Oil Country Tubular Goods from the
People's Republic of China: Decision Memorandum for Preliminary
Affirmative Determinations of Circumvention,'' dated concurrently
with, and hereby adopted by, this notice (Preliminary Decision
Memorandum) at 3.
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Scope of the Anti-Circumvention Inquiries
These anti-circumvention inquiries cover welded OCTG completed in
Brunei or the Philippines using inputs manufactured in China and
subsequently exported from Brunei or the Philippines to the United
States.
Methodology
Commerce is conducting these anti-circumvention inquiries in
accordance with section 781(b) of the Tariff Act of 1930, as amended
(the Act), and 19 CFR 351.225(h). Because China is a non-market economy
country within the meaning of section 771(18) of the Act, Commerce
relied on surrogate values to value the purchases of Chinese hot-rolled
steel, as discussed in section 773(c) of the Act. For a complete
description of the events that followed the initiation of these anti-
circumvention inquiries, see the Preliminary Decision Memorandum. A
list of topics included in the Preliminary Decision Memorandum is
included as an Appendix 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 <a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at <a href="http://enforcement.trade.gov/frn/">http://enforcement.trade.gov/frn/</a>.
Preliminary Determinations
As detailed in the Preliminary Decision Memorandum, Commerce
preliminarily determines that welded OCTG assembled or completed in
Brunei or the Philippines using inputs manufactured in China and
subsequently exported from Brunei or the Philippines to the United
States are circumventing the antidumping and countervailing duty orders
on OCTG from China. We therefore preliminarily determine that it is
appropriate to include this merchandise within the antidumping and
countervailing duty orders on OCTG from China and to instruct U.S.
Customs and Border Protection (CBP) to suspend entries of merchandise
produced using Chinese inputs in a third country, i.e., Brunei or the
Philippines, and exported to the United States.
Suspension of Liquidation
As stated above, Commerce has made preliminary affirmative findings
of circumvention of the antidumping and countervailing duty orders on
OCTG from China for welded OCTG completed in Brunei or the Philippines
using inputs manufactured in China and subsequently exported from
Brunei or the Philippines to the United States. These preliminary
circumvention findings apply to welded OCTG assembled or completed in
Brunei or the Philippines using inputs manufactured in China and
subsequently exported from Brunei or the Philippines to the United
States. In accordance with section 19 CFR 351.225(l)(2), Commerce will
direct CBP to suspend liquidation and to require a cash deposit of
estimated duties on unliquidated entries of welded OCTG completed in
Brunei or the Philippines using inputs manufactured in China,
subsequently exported from Brunei or the Philippines to the United
States, and entered, or withdrawn from warehouse, for consumption on or
after November 3, 2020, the date of initiation of these anti-
circumvention inquiries. The suspension of liquidation will remain in
effect until further notice. For entries of such merchandise produced
in Brunei or the Philippines, Commerce will instruct CBP to require
antidumping duty cash deposits equal to the rate established for the
China-wide entity, i.e., 99.14 percent,\3\ and countervailing duty cash
deposits equal to the current all-others rate, i.e., 27.08 percent.\4\
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\3\ See Oil Country Tubular Goods from the People's Republic of
China: Final Results of Antidumping Duty Administrative Review;
2017-2018, 84 FR 32125, 32126 (July 5, 2019).
\4\ See Oil Country Tubular Goods from the People's Republic of
China: Notice of Court Decision Not in Harmony With the Amended
Final Determination of the Countervailing Duty Investigation, 82 FR
25770 (June 5, 2017).
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Welded OCTG assembled or completed in Brunei or the Philippines
using non-Chinese inputs is not subject to these anti-circumvention
inquiries. However, because the mandatory respondents are unable to
track welded OCTG to the country of origin of inputs used in the
production of welded OCTG,\5\ Commerce will not implement a
certification process at this preliminary stage, and Commerce will
require cash deposits on all entries of welded OCTG from Brunei and the
Philippines.\6\ However, we intend to implement a certification process
in the future for any companies that may be established in Brunei or
the Philippines, and we plan to issue draft certifications shortly
after these preliminary determinations of circumvention. With respect
to the mandatory respondents, Commerce will reconsider eligibility to
participate in a certification process if a party demonstrates in a
future segment of the proceeding (i.e., a changed circumstances review
or an administrative review) that the OCTG being entered into the
United States that it produces is not produced using Chinese inputs.
Interested parties are invited to comment on this issue in their case
briefs.
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\5\ See, e.g., HLDS (B) Steel Sdn. Bhd.'s Letter, ``HLDSB
Initial Questionnaire Response,'' dated March 16, 2021 at 25; and
HLD Clark Steel Pipe Co., Inc.'s Letter, ``HLD Clark Initial
Questionnaire Response,'' dated March 16, 2021 at 26.
\6\ See, e.g., Diamond Sawblades and Parts Thereof from the
People's Republic of China: Final Determination of Anti-
Circumvention Inquiry, 84 FR 33920, 33921 (July 16, 2019).
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Public Comment
Commerce intends to disclose the analysis used in these preliminary
findings within five days of publication of this notice. Interested
parties are invited to comment on the preliminary determinations of
these anti-circumvention inquiries. Pursuant to 19 CFR 351.309(b)(2),
interested parties may submit case briefs not later than 30 days after
the date of publication of this notice. Rebuttal briefs, limited to
issues raised in the case briefs, may not be filed later than seven
days after the time limit for filing case briefs.\7\ Pursuant to 19 CFR
351.309(c)(2) and (d)(2), parties who submit case or rebuttal briefs in
these anti-circumvention inquiries 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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\7\ 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); and
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, 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
[[Page 43629]]
the date and time of the hearing two days before the scheduled date of
the hearing.
International Trade Commission Notification
Consistent with section 781(e) of the Act, Commerce will notify the
International Trade Commission (ITC) of these preliminary
determinations to include the merchandise subject to these anti-
circumvention inquiries within the antidumping and countervailing duty
orders on OCTG from China. Pursuant to section 781(e) of the Act, the
ITC may request consultations concerning Commerce's proposed inclusion
of the subject merchandise. If, after consultations, the ITC believes
that a significant injury issue is presented by the proposed inclusion,
it will have 60 days from the date of notification by Commerce to
provide written advice.
Final Determinations
According to section 781(f) of the Act, Commerce shall, to the
maximum extent practicable, make its anti-circumvention determination
within 300 days from the date of the initiation of the inquiry.\8\ Due
to the complicated nature of these anti-circumvention inquiries, we are
hereby extending the deadline for the final determinations of these
anti-circumvention inquiries by 50 days. Therefore, Commerce intends to
issue the final determinations of these anti-circumvention inquiries to
October 28, 2021.
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\8\ See also 19 CFR 351.225(f)(iii)(5) (explaining that Commerce
will issue a final anticircumvention ruling ``normally within 300
days from the date of the initiation of the. . . inquiry'').
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These preliminary affirmative circumvention determinations are
published in accordance with section 781(b) of the Act and 19 CFR
351.225(f).
Dated: August 4, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Orders
IV. Scope of the Anti-Circumvention Inquiries
V. The Period of Inquiries
VI. Surrogate Country and Valuation Methodology for Inputs From
China
VII. Statutory Framework
VIII. Statutory Analysis
IX. Other Statutory Criteria
X. Summary of Statutory Analysis
XI. Country-Wide Determinations
XII. Recommendation
[FR Doc. 2021-17016 Filed 8-9-21; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on August 10, 2021.
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