Notice2022-05333
Oil Country Tubular Goods From the Russian Federation: Preliminary Affirmative Countervailing Duty Determination, Preliminary Negative Critical Circumstances Determination, and Alignment of Final Determination With Final Antidumping Duty Determination
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Published
March 14, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of oil country tubular goods (OCTG) from the Russian Federation (Russia) for the period of investigation (POI) January 1, 2020, through December 31, 2020. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 87 Issue 49 (Monday, March 14, 2022)</title>
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[Federal Register Volume 87, Number 49 (Monday, March 14, 2022)]
[Notices]
[Pages 14249-14252]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-05333]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-821-834]
Oil Country Tubular Goods From the Russian Federation:
Preliminary Affirmative Countervailing Duty Determination, Preliminary
Negative Critical Circumstances 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 oil country tubular goods (OCTG) from the Russian
Federation (Russia) for the period of investigation (POI) January 1,
2020, through December 31, 2020. Interested parties are invited to
comment on this preliminary determination.
DATES: Applicable March 14, 2022.
FOR FURTHER INFORMATION CONTACT: Brontee Jeffries or Theodore Pearson,
[[Page 14250]]
AD/CVD Operations, Office I, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-4645 or (202)
482-2631, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on November 1,
2021.\1\ On November 23, 2021, Commerce postponed the preliminary
determination of this investigation to March 7, 2022.\2\
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\1\ See Oil Country Tubular Goods From the Republic of Korea and
the Russia Federation: Initiation of Countervailing Duty
Investigations, 86 FR 60210 (November 1, 2021).
\2\ See Oil Country Tubular Goods from the Republic of Korea and
the Russian Federation: Postponement of Preliminary Determinations
in the Countervailing Duty Investigations, (November 23, 2021).
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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 <a href="http://access.trade.gov">http://access.trade.gov</a>. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination and Preliminary Negative Critical Circumstances
Determination in the Countervailing Duty Investigation of Oil
Country Tubular Goods from the Russian Federation,'' 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 OCTG from Russia.
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\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. For a summary of the product coverage comments
and rebuttal responses submitted to the record for this preliminary
determination and accompanying discussion and analysis of all comments
timely received, see the Preliminary Scope Decision Memorandum.\6\
Commerce is preliminarily modifying the scope language as it appeared
in the Initiation Notice, see Appendix I.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice, 86 FR at 60210-11.
\6\ See Memorandum, ``Antidumping Duty Investigations of Oil
Country Tubular Goods from Argentina, Mexico, and the Russian
Federation and Countervailing Duty Investigations of Oil Country
Tubular Goods from the Republic of Korea, and the Russian
Federation: Preliminary Scope Decision Memorandum,'' dated March 7,
2022 (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.\7\ For a full description of the methodology underlying our
preliminary conclusions, see the Preliminary Decision Memorandum.
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\7\ 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 Government of Russia
did not act to the best of its ability to respond to Commerce's
requests for information, it drew an adverse inference where
appropriate in selecting from among the facts otherwise available.\8\
For further information, see ``Use of Facts Otherwise Available and
Adverse Inferences'' in the Preliminary Decision Memorandum.
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\8\ See sections 776(a) and (b) of the Act.
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Alignment
In accordance with section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), and based on the petitioners' request,\9\ we are
aligning the final CVD determination in this investigation with the
final determination in the companion AD investigations of OCTG from
Argentina, Mexico, Korea, and Russia. 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
July 18, 2022, unless postponed.
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\9\ See Petitioners' Letter, ``Oil Country Tubular Goods from
Argentina, Mexico, Russia, and the Republic of Korea: Petitioners'
Request to Extend Preliminary Determinations and Align the
Countervailing Duty Investigations with the Concurrent Less-Than-
Fair-Value Investigations,'' dated February 10, 2022.
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Preliminary Negative Determination of Critical Circumstances
The petitioners alleged, based on publicly available trade
statistics, that there is a reasonable basis to believe or suspect that
critical circumstances exist regarding imports of OCTG.\10\ Based on
monthly shipment information requested from the mandatory respondents,
Commerce is preliminarily determining that critical circumstances do
not exist within the meaning of section 703(e)(1) of the Act. For
further information, see the Preliminary Decision Memorandum.
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\10\ See Petitioners' Letter, ``Oil Country Tubular Goods from
the Russian Federation: Critical Circumstances Allegation,'' dated
February 15, 2022.
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All-Others Rate
Sections 703(d)(1)(A)(i) 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. Pursuant to
section 705(c)(5)(A)(i) of the Act, this rate shall normally be an
amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
rates that are zero, de minimis, or rates based entirely under section
776 of the Act.
We preliminarily calculated individual estimated countervailable
subsidy rates for TMK Group (TMK) and United Metallurgical Company and
Vyksa Steel Works (collectively, OMK) that are not zero, de minimis, or
based entirely on facts otherwise available. Commerce calculated the
all-others rate using a weighted average of the individual estimated
subsidy rates calculated for the examined respondents using each
company's publicly-ranged values for the merchandise under
consideration.\11\
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\11\ With two respondents under examination, Commerce normally
calculates (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents; (B) a simple average of the
estimated subsidy rates calculated for the examined respondents; and
(C) a weighted-average of the estimated subsidy rates calculated for
the examined respondents using each company's publicly-ranged U.S.
sale quantities for the merchandise under consideration. Commerce
then compares (B) and (C) to (A) and selects the rate closest to (A)
as the most appropriate rate for all other producers and exporters.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53663
(September 1, 2010). See also Forged Steel Fluid End Blocks from
Italy: Preliminary Affirmative Countervailing Duty Determination,
and Alignment of Final Determination with Final Antidumping Duty
Determination, 85 FR 31460, 31461 (May 26, 2020) (unchanged in
Forged Steel Fluid End Blocks from Italy: Final Affirmative
Countervailing Duty Determination, 85 FR 80022, 80023 (December 11,
2020)).
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Preliminary Determination
Commerce preliminary determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Manufacturer/exporter (percent ad
valorem)
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Volzhsky Pipe Plant, Joint Stock Company; Sinarsky Pipe 1.37
Plant, Joint Stock Company; Seversky Pipe Plant, Joint
Stock Company; Taganrog Metallurgical Plant, Joint
Stock Company; Orsky Machine Building Plant, Joint
Stock Company; and PAO TMK \12\........................
JSC Vyksa Steel Works \13\.............................. 1.68
All Others.............................................. 1.53
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Suspension of Liquidation
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\12\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
Volzhsky Pipe Plant: TMK Neftegasservice-Nizhnevartovsk, Joint Stock
Company; TMK Neftegasservice-Buzuluk, Limited Liability Company;
Russian Research Institute of the Tube & Pipe Industries, JSC; and
Scientific and Technical Center TMK, LLC.
\13\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
JSC Vyska Steel Works: BusinessOptima; Metallolomaya Company OMK--
Ecometall; United Metallurgical Company; and Joint-Stock Company
Trubodetal.
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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
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Normally, Commerce verifies information using standard procedures,
including an on-site examination of original accounting, financial, and
sales documentation. However, due to current travel restrictions in
response to the global COVID-19 pandemic, Commerce is unable to conduct
on-site verification in this investigation. Accordingly, we intend to
verify the information relied upon in making the final determination
through alternative means in lieu of an on-site verification.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance. Interested parties
will be notified of the timeline for the submission of 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.\14\ Note that Commerce has
temporarily modified certain of its requirements for serving documents
containing business proprietary information, until further notice.\15\
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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\14\ 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)
(Temporary Rule); and Temporary Rule Modifying AD/CVD Service
Requirements Due to COVID-19; Extension of Effective Period, 85 FR
41363 (July 10, 2020) (Temporary Rule Extension).
\15\ See Temporary Rule; see also Temporary Rule Extension.
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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 and time 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 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 this preliminary determination or 45 days after the 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: March 7, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is certain OCTG,
which are hollow steel products of circular cross-section, including
oil well casing and tubing, of iron (other than case iron) or steel
(both carbon and alloy), whether seamless or welded, regardless of
end finish (e.g., whether or not plain end, threaded, or threaded
and coupled) whether or not conforming to American Petroleum
Institute (API) or non-API specifications, whether finished
(including limited service OCTG products) or unfinished (including
green tubes and limited service OCTG products),
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whether or not thread protectors are attached. The scope of this
investigation also covers OCTG coupling stock.
Subject merchandise includes material matching the above
description that has been finished, packaged, or otherwise processed
in a third country, including by performing any heat treatment,
cutting, upsetting, threading, coupling, or any other finishing,
packaging, or processing that would not otherwise remove the
merchandise from the scope of the investigation if performed in the
country of manufacture of the OCTG.
Excluded from the scope of the investigation are: Casing,
tubing, or coupling stock containing 10.5 percent or more by weight
of chromium; drill pipe; unattached couplings; and unattached thread
protectors.
The merchandise subject to this investigation is currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under item numbers: 7304.29.1010, 7304.29.1020,
7304.29.1030, 7304.29.1040, 7304.29.1050, 7304.29.1060,
7304.29.1080, 7304.29.2010, 7304.29.2020, 7304.29.2030,
7304.29.2040, 7304.29.2050, 7304.29.2060, 7304.29.2080,
7304.29.3110, 7304.29.3120, 7304.29.3130, 7304.29.3140,
7304.29.3150, 7304.29.3160, 7304.29.3180, 7304.29.4110,
7304.29.4120, 7304.29.4130, 7304.29.4140, 7304.29.4150,
7304.29.4160, 7304.29.4180, 7304.29.5015, 7304.29.5030,
7304.29.5045, 7304.29.5060, 7304.29.5075, 7304.29.6115,
7304.29.6130, 7304.29.6145, 7304.29.6160, 7304.29.6175,
7305.20.2000, 7305.20.4000, 7305.20.6000, 7305.20.8000,
7306.29.1030, 7306.29.1090, 7306.29.2000, 7306.29.3100,
7306.29.4100, 7306.29.6010, 7306.29.6050, 7306.29.8110, and
7306.29.8150.
The merchandise subject to this investigation may also enter
under the following HTSUS item numbers: 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, 7304.39.0076, 7304.39.0080,
7304.59.6000, 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,
7304.59.8070, 7304.59.8080, 7305.31.4000, 7305.31.6090,
7306.30.5055, 7306.30.5090, 7306.50.5050, and 7306.50.5070.
The HTSUS subheadings and specifications above are provided for
convenience and customs purposes only. The written description of
the scope of this investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Preliminary Negative Determination of Critical Circumstances
V. Scope of the Investigation
VI. Use of Facts Otherwise Available and Application of Adverse
Inferences
VII. Subsidies Valuation
VIII. Interest Rate Benchmarks, Discount Rates, and Natural Gas
Benchmark
IX. Analysis of Programs
X. Recommendation
[FR Doc. 2022-05333 Filed 3-11-22; 8:45 am]
BILLING CODE 3510-DS-P
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