Notice2022-21179
Oil Country Tubular Goods From the Russian Federation: Final Affirmative Countervailing Duty Determination and Final Negative Critical Circumstances Determination
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 29, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of oil country tubular goods (OCTG) from the Russian Federation (Russia). The period of investigation is January 1, 2020, through December 31, 2020.
Full Text
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<title>Federal Register, Volume 87 Issue 188 (Thursday, September 29, 2022)</title>
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[Federal Register Volume 87, Number 188 (Thursday, September 29, 2022)]
[Notices]
[Pages 59047-59049]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-21179]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-821-834]
Oil Country Tubular Goods From the Russian Federation: Final
Affirmative Countervailing Duty Determination and Final Negative
Critical Circumstances Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of oil country tubular goods (OCTG) from the Russian Federation
(Russia). The period of investigation is January 1, 2020, through
December 31, 2020.
DATES: Applicable September 29, 2022.
FOR FURTHER INFORMATION CONTACT: Brontee George or Theodore Pearson,
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
On March 14, 2022, Commerce published its Preliminary Determination
\1\ in the Federal Register. For a complete description of the events
that followed the Preliminary Determination, see the Issues and
Decision Memorandum.\2\ The Issues and Decision Memorandum is a public
document and is made available to the public 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="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\1\ See Oil Country Tubular Goods from the Russia Federation:
Preliminary Affirmative Countervailing Duty Determination,
Preliminary Negative Critical Circumstances Determination, and
Alignment of Final Determination with Final Antidumping Duty
Determination, 87 FR 14249 (March 14, 2022) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
\2\ See Memorandum, ``Decision Memorandum for the Final
Affirmative Determination in the Countervailing Duty Investigation
of Oil Country Tubular Goods from the Russian Federation,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are oil country tubular
goods from Russia. For a complete description of the scope of this
investigation, see appendix I.
Scope Comments
On March 7, 2022, concurrent with the issuance of the Preliminary
Determination, we issued a Preliminary Scope Decision Memorandum.\3\ In
the Preliminary Scope Decision Memorandum, Commerce established the
deadline for parties to submit scope case briefs.\4\ Commerce did not
receive any comments from interested parties regarding the scope by the
deadline. Consequently, we made no changes to the scope from the
Preliminary Scope Decision Memorandum.
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\3\ 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).
\4\ Id. at 4.
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation, and the issues raised in
the case and rebuttal briefs that were submitted by parties in this
investigation, are discussed in the Issues and Decision Memorandum. For
a list of the issues raised by interested parties
[[Page 59048]]
and addressed in the Issues and Decision Memorandum, see appendix II to
this notice.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found to be countervailable, Commerce 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.\5\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
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\5\ 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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In making this final determination, Commerce relied, in part, on
facts otherwise available, including adverse facts available (AFA),
pursuant to sections 776(a) and (b) of the Act. For a full discussion
of our application of AFA, see the Preliminary Determination and the
section ``Use of Facts Otherwise Available and Application of Adverse
Inferences'' in the accompanying Issues and Decision Memorandum.\6\
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\6\ See Preliminary Determination PDM at 8-13; see also Issues
and Decision Memorandum at section ``Use of Facts Otherwise
Available and Adverse Inferences.''
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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 on-site
verifications to verify the information relied upon in making this
final determination, in accordance with section 782(i) of the Act.\7\
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\7\ See Commerce's Letters, ``Oil Country Tubular Goods from the
Russian Federation: Volzhsky Pipe Plant, Joint Stock Company and
Affiliated Companies Verification Questionnaire,'' dated May 11,
2022; and ``Oil Country Tubular Goods from the Russian Federation:
Vyksa Steel Works and United Metallurgical Company (collectively,
OMK) and Affiliated Companies Verification Questionnaire,'' dated
May 11, 2022.
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Final Negative Determination of Critical Circumstances
Commerce determines that critical circumstances do not exist within
the meaning of 703(e)(1) of the Act. For further information, see the
Issues and Decision Memorandum.
Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, as well as additional information collected in questionnaires
issued subsequent to the Preliminary Determination, we made certain
changes to the subsidy rate calculations for JSC Vyska Steel Works
(collectively with its affiliated companies, OMK), Volzhsky Pipe Plant,
Joint Stock Company (collectively with its affiliated companies, TMK
Group), and the all-others rate. For a discussion of these changes, see
the Issues and Decision Memorandum.
All-Others Rate
In accordance with section 705(c)(1)(B)(i) of the Act, we
calculated an individual estimated countervailable subsidy rate for the
two mandatory respondents, OMK and TMK Group. Section 705(c)(5)(A)(i)
of the Act states that, for companies not individually investigated,
Commerce will determine an all-others rate equal to the weighted-
average countervailable subsidy rates established for exporters and/or
producers individually investigated, excluding any zero and de minimis
countervailable subsidy rates, and any rates determined entirely under
section 776 of the Act.
We continue to calculate individual estimated countervailable
subsidy rates for OMK and TMK Group that are not zero, de minimis, or
based entirely on facts otherwise available. We, therefore, continue to
calculate the all-others rate using a weighted average of the
individual estimated subsidy rates calculated for the examined
respondents (OMK and TMK Group) using each company's publicly-ranged
sales value for their exports to the United States of subject
merchandise,\8\ in accordance with section 705(c)(5)(A)(i) of the Act.
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\8\ 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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Final Determination
Commerce 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 1.30
Pipe 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 \9\.........
JSC Vyksa Steel Works\10\............................ 1.59
All Others........................................... 1.43
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Disclosure
Commerce intends to disclose to interested parties the calculations
and analysis performed in this final determination within five days of
any public announcement or, if there is no public announcement, within
five days of the date of the publication of this notice in the Federal
Register, in accordance with 19 CFR 351.224(b).
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\9\ Commerce has found the following companies to be cross-owned
with Volzhsky Pipe Plant, Joint Stock Company: 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.
\10\ 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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Continuation of Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
section 703(d)(1)(B) and (d)(2) of the Act, we
[[Page 59049]]
instructed U.S. Customs and Border Protection (CBP) to suspend
liquidation of entries of subject merchandise from Russia that were
entered, or withdrawn from warehouse, for consumption, on or after
March 14, 2022, which is the date of publication of the Preliminary
Determination in the Federal Register. In accordance with section
703(d) of the Act, we instructed CBP to discontinue the suspension of
liquidation of all entries of subject merchandise entered or withdrawn
from warehouse, on or after July 12, 2022, but to continue the
suspension of liquidation of all entries of subject merchandise between
March 14 and July 11, 2022.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order, reinstate
the suspension of liquidation under section 706(a) of the Act, and
require a cash deposit of estimated countervailing duties for entries
of subject merchandise in the amounts indicated above. If the ITC
determines that material injury, or threat of material injury, does not
exist, this proceeding will be terminated, and all estimated duties
deposited or securities posted as a result of the suspension of
liquidation will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our final affirmative determination that countervailable
subsidies are being provided to producers and exporters of OCTG from
Russia. Because the final determination in this proceeding is
affirmative, in accordance with section 705(b) of the Act, the ITC will
make its final determination as to whether the domestic industry in the
United States is materially injured, or threatened with material
injury, by reason of imports of OCTG from Russia no later than 45 days
after our final determination. In addition, we are making available to
the ITC all non-privileged and nonproprietary information related to
this investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Enforcement and Compliance. If
the ITC determines that material injury or threat of material injury
does not exist, this proceeding will be terminated and all cash
deposits will be refunded. If the ITC determines that such injury does
exist, Commerce will issue a countervailing duty order directing CBP to
assess, upon further instruction by Commerce, countervailing duties on
all imports of the subject merchandise that are 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 APO
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an 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 the return/destruction of
APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: September 23, 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), 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 Issues and Decision
Memorandum
I. Summary
II. Background
III. Scope Issues
IV. Critical Circumstances
V. Subsidies Valuation
VI. Use of Facts Otherwise Available and Application of Adverse
Inferences
VII. Interest Rate Benchmarks, Discount Rates, and Natural Gas
Benchmark
VIII. Analysis of Programs
IX. Analysis of Comments
Comment 1: Whether to Adjust the Natural Gas Benchmark
Calculation of Transmission Fees and Value-Added Tax (VAT)
Comment 2: Loan Benchmark Selection
A. OMK Loan Benchmark Issues
B. TMK Group Loan Benchmark Issues
Comment 3: Whether Commerce Should Find Certain Natural Gas
Purchases to Be Tied to Non-Subject Merchandise for Affiliates of
TMK Group
X. Recommendation
[FR Doc. 2022-21179 Filed 9-28-22; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on September 29, 2022.
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