[Federal Register Volume 85, Number 239 (Friday, December 11, 2020)]
[Notices]
[Pages 80024-80026]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27306]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-910]


Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe 
from the Republic of Korea: Preliminary Affirmative Countervailing Duty 
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 seamless carbon and alloy steel standard, line, and 
pressure pipe (seamless pipe) from the Republic of Korea (Korea). The 
period of investigation is January 1, 2019 through December 31, 2019. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable December 11, 2020.

FOR FURTHER INFORMATION CONTACT: Moses Song or Natasia Harrison, 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) 482-7885 or (202) 482-1240, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended

[[Page 80025]]

(the Act). Commerce published the notice of initiation of this 
investigation on August 4, 2020.\1\ On September 2, 2020, Commerce 
postponed the preliminary determination of this investigation to 
December 7, 2020.\2\ 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 http://access.trade.gov. In 
addition, a complete version of the Preliminary Decision Memorandum can 
be accessed directly at http://enforcement.trade.gov/frn/. The signed 
and electronic versions of the Preliminary Decision Memorandum are 
identical in content.
---------------------------------------------------------------------------

    \1\ See Seamless Carbon and Alloy Steel Standard, Line, and 
Pressure Pipe from the Republic of Korea and the Russian Federation: 
Initiation of Countervailing Duty Investigations, 85 FR 47170 
(August 4, 2020) (Initiation Notice).
    \2\ See Seamless Carbon and Alloy Steel Standard, Line, and 
Pressure Pipe from the Republic of Korea and the Russian Federation: 
Postponement of Preliminary Determinations in the Countervailing 
Duty Investigations, 85 FR 54533 (September 2, 2020).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination of the Countervailing Duty 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 (Preliminary Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

    The products covered by this investigation are seamless pipe from 
Korea. 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\ we 
set aside a period of time, as stated in the Initiation Notice, for 
parties to raise issues regarding product coverage (i.e., scope).\5\ We 
received comments concerning the scope of the antidumping duty (AD) and 
countervailing duty (CVD) investigations of seamless pipe as it 
appeared in the Initiation Notice. We are currently evaluating the 
scope comments filed by the interested parties. We intend to issue our 
preliminary decision regarding the scope of this and the companion AD 
and CVD investigations no later than February 3, 2021, the deadline for 
the preliminary determinations in the companion AD investigations with 
respect to Korea, Russia, and Ukraine.\6\ We will issue a final scope 
decision after considering any relevant comments submitted in case and 
rebuttal briefs.\7\
---------------------------------------------------------------------------

    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \5\ See Initiation Notice, 85 FR at 47171.
    \6\ See Seamless Carbon and Alloy Steel Standard, Line, and 
Pressure Pipe from the Republic of Korea, the Russian Federation, 
and Ukraine: Postponement of Preliminary Determinations in the Less-
Than-Fair Value Investigations, 85 FR 73687 (November 19, 2020).
    \7\ The deadlines for interested parties to submit scope case 
and rebuttal briefs will be established in the preliminary
    scope decision memorandum.
---------------------------------------------------------------------------

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.\8\
---------------------------------------------------------------------------

    \8\ 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.
---------------------------------------------------------------------------

    Commerce notes that, in making these findings, it relied, in part, 
on facts available and, because it finds that the respondent did not 
act to the best of its ability to respond to Commerce's requests for 
information, Commerce drew an adverse inference where appropriate in 
selecting from among the facts otherwise available.\9\ For further 
information, see ``Use of Facts Otherwise Available and Adverse 
Inferences'' in the Preliminary Decision Memorandum.
---------------------------------------------------------------------------

    \9\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------

Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final CVD determination in this investigation with the 
final determination in the companion AD investigation of seamless pipe 
from Korea based on a request made by the petitioner.\10\ 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 April 19, 2021, unless postponed.
---------------------------------------------------------------------------

    \10\ See Vallourec Star, LP's (Petitioner's) Letter, ``Seamless 
Carbon and Alloy Steel Standard, Line, and Pressure Pipe from Korea 
and Russia: Request to Align Final Determinations,'' dated October 
15, 2020.
---------------------------------------------------------------------------

All-Others Rate

    Sections 703(d) 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. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act.
    In this investigation, Commerce preliminarily calculated an 
individual estimated countervailable subsidy rate for Iljin Steel 
Corporation (Iljin), the only individually examined exporter/producer 
in this investigation. Because the only individually calculated rate is 
not zero, de minimis, or based entirely on facts otherwise available, 
we are preliminarily assigning the estimated countervailable subsidy 
rate calculated for Iljin to all other producers and exporters, 
pursuant to section 705(c)(5)(A)(i) of the Act.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                              percent
------------------------------------------------------------------------
Iljin Steel Corporation.................................            2.13
All Others..............................................    2.13 percent
------------------------------------------------------------------------

Suspension of Liquidation

    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

    Commerce is currently unable to conduct on-site verification of the 
information relied upon in making its

[[Page 80026]]

final determination in this investigation. Accordingly, we intend to 
take additional steps in lieu of on-site verification. Commerce will 
notify interested parties of any additional documentation or 
information required.

Public Comment

    As noted above, Commerce will issue a preliminary scope decision no 
later than February 3, 2021. All interested parties will have the 
opportunity to submit case and rebuttal briefs on the preliminary scope 
determination by the deadline established in the memorandum. All 
parties filing scope briefs or rebuttals thereto, must file identical 
documents simultaneously on the records of all the ongoing AD and CVD 
seamless pipe investigations. No new factual information or business 
proprietary information may be included in either scope briefs or 
rebuttal scope briefs.
    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance. Interested parties 
will be notified of the deadline for the submission of such 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.\11\ Commerce has modified 
certain of its requirements for serving documents containing business 
proprietary information until further notice.\12\ 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.
---------------------------------------------------------------------------

    \11\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements); and Temporary Rule
    Modifying AD/CVD Service Requirements Due to COVID-19, 85 FR 
17006, 17007 (March 26, 2020).
    \12\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
---------------------------------------------------------------------------

    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, time, and 
location 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 preliminary 
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 Commerce's preliminary determination or 45 days 
after its 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: December 7, 2020.
Jeffrey I. Kessler,
Assistant Secretaryfor Enforcement and Compliance.

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 5L 
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 investigations are 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 A-53, ASTM A-106 or API 5L 
specifications.
    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, 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 Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Alignment
VI. Injury Test
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Subsidies Valuation Information
IX. Analysis of Programs
X. Recommendation

[FR Doc. 2020-27306 Filed 12-10-20; 8:45 am]
BILLING CODE 3510-DS-P