Notice2021-25832
Oil Country Tubular Goods From the People's Republic of China: Final Affirmative Determinations of Circumvention
Primary source
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Published
November 26, 2021
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The Department of Commerce (Commerce) 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 225 (Friday, November 26, 2021)</title>
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[Federal Register Volume 86, Number 225 (Friday, November 26, 2021)]
[Notices]
[Pages 67443-67444]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-25832]
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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:
Final Affirmative Determinations of Circumvention
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) 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 November 26, 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 August 10, 2021, Commerce published the preliminary affirmative
determinations of circumvention of the antidumping and countervailing
duty orders on welded OCTG from China.\1\ In the Preliminary
Determinations, Commerce extended the deadline for the final
determinations of these circumvention inquiries to October 28, 2021.\2\
On October 18, 2021, Commerce extended the deadline for the final
determinations of these circumvention inquiries to November 19,
2021.\3\
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\1\ See Oil Country Tubular Goods from the People's Republic of
China: Preliminary Affirmative Determinations of Circumvention, 86
FR 43627 (August 10, 2021) (Preliminary Determinations).
\2\ Id. at 43629.
\3\ See Memorandum, ``Oil Country Tubular Goods from the
People's Republic of China: Extension of Deadline for Final
Determinations of the Anti-Circumvention Inquiries of the
Antidumping and Countervailing Duty Orders,'' dated October 18,
2021.
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We received case and rebuttal briefs with respect to the
Preliminary Determinations. We conducted these circumvention inquiries
in accordance with section 781(b) of the Tariff Act of 1930, as amended
(the Act), and 19 CFR 351.225(h).
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 Issues
and Decision Memorandum.\4\ The written description is dispositive.
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\4\ See Memorandum, ``Oil Country Tubular Goods from the
People's Republic of China: Issues and Decision Memorandum for Final
Affirmative Determinations of Circumvention,'' dated concurrently
with, and hereby adopted by, this notice (Issues and Decision
Memorandum) at 2-3.
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Scope of the Circumvention Inquiries
These 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.\5\
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\5\ See Preliminary Determinations, 86 FR 43628.
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Methodology
Commerce is conducting these circumvention inquiries in accordance
with section 781(b) of the Act and 19 CFR 351.225(h). For a full
description of the methodology underlying Commerce's final
determinations, see the Issues and Decision Memorandum. The Issues and
Decision Memorandum is a public document and 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="http://access.trade.gov">http://access.trade.gov</a>. In addition, a complete
version of the Issues and Decision Memorandum can be accessed directly
at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties in
these inquiries are addressed in the Issues and Decision Memorandum. A
list of the issues raised is attached to this notice as an appendix.
Based on our analysis of the comments received, we made a change to the
Preliminary Determinations.
Final Affirmative Determinations
As detailed in the Issues and Decision Memorandum, we determine
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.
Therefore, we determine that it is appropriate to include this
merchandise within the scope of the antidumping and countervailing duty
orders of OCTG from China and to instruct U.S. Customs and Border
Protection (CBP) to continue to suspend any entries of merchandise
produced using Chinese inputs in Brunei or the Philippines and exported
to the United States.
Continued Suspension of Liquidation
In accordance with 19 CFR 351.225(l)(3), based on these final
determinations in these circumvention inquiries, Commerce will direct
CBP to continue to suspend liquidation and to require a cash deposit of
estimated duties on unliquidated entries of
[[Page 67444]]
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 12, 2020, the date of
publication of the notice of initiation of these circumvention
inquiries.\6\ The suspension of liquidation will remain in effect until
further notice. As we explained in the Preliminary Determinations,\7\
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,\8\ and countervailing duty cash deposits equal to the current
all-others rate, i.e., 27.08 percent.\9\
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\6\ See Issues and Decision Memorandum at Comment 5; see also
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).
\7\ See Preliminary Determinations, 86 FR 43628.
\8\ 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).
\9\ 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 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,\10\ Commerce did not implement a
certification process at the preliminary stage and required cash
deposits on all entries of welded OCTG produced in Brunei or the
Philippines.\11\ We invited parties to comment on this issue in their
case briefs and we received comments from the mandatory respondents on
this issue. For the final determinations, we will not implement a
certification process for welded OCTG already suspended,\12\ and we
will require cash deposits on all entries of welded OCTG produced in
either Brunei or the Philippines, with a slight modification from the
Preliminary Determinations.\13\ However, producers and/or exporters in
Brunei or the Philippines may request reconsideration of our denial of
the certification process in a future segment of the proceeding, i.e.,
a changed circumstances review or administrative review.\14\
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\10\ 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.
\11\ See Preliminary Determinations, 86 FR 43628.
\12\ See Issues and Decision Memorandum at Comment 4.
\13\ Id. at Comment 5.
\14\ See, e.g., Diamond Sawblades and Parts Thereof from the
People's Republic of China: Final Determination of Anti-
Circumvention Inquiry, 85 FR 9737, 9739 (February 20, 2020)
(``However, Protech may request reconsideration of our denial of the
certification process in a future segment of the proceeding, i.e., a
changed circumstances review or administrative review.''); see also
Diamond Sawblades and Parts Thereof from the People's Republic of
China: Final Results of Antidumping Duty Changed Circumstances
Review, 85 FR 86905 (December 31, 2020) (``. . . Protech is eligible
to participate in a certification process because Protech has
demonstrated that it can identify diamond sawblades that it produced
in Canada using non-Chinese cores and Chinese segments.'').
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Administrative Protective Order
This notice will serve as the only reminder to parties subject to
administrative protective order (APO) of their responsibility
concerning the destruction of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
notification of return/destruction or 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
These final affirmative determinations of circumvention are issued
and published in accordance with section 781(b) of the Act and 19 CFR
351.225(f).
Dated: November 19, 2021.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Orders
IV. Scope of the Circumvention Inquiries
V. The Period of Inquiries
VI. Discussion of the Issues
Comment 1: Production of Hot-Rolled Steel vs. Production of OCTG
Comment 2: Production Processes
Comment 3: Appropriateness of Finding Circumvention
Comment 4: Certification Eligibility
Comment 5: Effective Date of Suspension of Liquidation
VII. Recommendation
[FR Doc. 2021-25832 Filed 11-24-21; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on November 26, 2021.
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