[Federal Register Volume 85, Number 245 (Monday, December 21, 2020)]
[Notices]
[Pages 83059-83061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-28094]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-851-804]


Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe 
From the Czech Republic: Preliminary Affirmative Determination of Sales 
at Less Than Fair Value

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that seamless carbon and alloy steel standard, line, and pressure pipe 
(seamless pipe) from the Czech Republic is being, or is likely to be, 
sold in the United States at less than fair value (LTFV). The period of 
investigation is July 1, 2019 through June 30, 2020. Interested parties 
are invited to comment on this preliminary determination.

DATES: Applicable December 21, 2020.

FOR FURTHER INFORMATION CONTACT: Dmitry Vladimirov at (202) 482-0665, 
AD/CVD Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    Commerce published the notice of initiation of this investigation 
on August 4, 2020.\1\ Liberty Ostrava A.S. (Liberty Ostrava) and 
Moravia Steel A.S. (Moravia Steel) are the mandatory respondents in 
this investigation. For a complete description of the events that 
followed the initiation of this investigation, see the Preliminary 
Decision Memorandum.\2\ A list of topics included in the Preliminary 
Decision Memorandum is included as Appendix II to this notice. The 
Preliminary 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 https://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 the electronic versions of the Preliminary Decision Memorandum are 
identical in content.
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    \1\ See Seamless Carbon and Alloy Steel Standard, Line, and 
Pressure Pipe from the Czech Republic, the Republic of Korea, the 
Russian Federation, and Ukraine: Initiation of Less-Than-Fair-Value 
Investigations, 85 FR 47176 (August 4, 2020) (Initiation Notice).
    \2\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination in the Less-Than-Fair-Value Investigation 
of Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe 
from the Czech Republic,'' 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 seamless pipe and 
redraw hollows from the Czech Republic, less than or equal to 16 inches 
in nominal outside diameter, regardless of wall-thickness, 
manufacturing process, end finish, or surface finish. For a full 
description of the scope of this investigation, see the ``Scope of the 
Investigation,'' in Appendix I of this notice.

[[Page 83060]]

Scope Comments

    In accordance with the Preamble to Commerce's regulations,\3\ we 
set aside a period of time, as stated in the Initiation Notice, for 
parties to raise issues regarding product coverage (i.e., scope).\4\ We 
received several comments concerning 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.\5\ 
We will issue a final scope decision after considering any relevant 
comments submitted in scope case and rebuttal briefs.\6\
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    \3\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \4\ See Initiation Notice, 85 FR at 47176.
    \5\ 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).
    \6\ The deadline for interested parties to submit scope case and 
rebuttal briefs will be established in the preliminary scope 
decision memorandum.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Tariff Act of 1930, as amended (the Act). Pursuant 
to sections 776(a) and (b) of the Act, Commerce has preliminarily 
relied upon facts otherwise available to assign estimated weighted-
average dumping margins to the mandatory respondents in this 
investigation because neither of the respondents submitted a response 
to Commerce's antidumping duty questionnaire. Further, Commerce 
preliminarily determines that these mandatory respondents failed to 
cooperate by not acting to the best of their ability to comply with a 
request for information and is using an adverse inference in selecting 
from among the facts otherwise available (i.e., applying adverse facts 
available (AFA)) to these respondents, in accordance with section 
776(b) of Act. For a full description of the methodology underlying our 
preliminary determination, see the Preliminary Decision Memorandum.

All-Others Rate

    Section 733(d)(1)(ii) of the Act provides that, in the preliminary 
determination, Commerce shall determine an estimated all-others rate 
for all exporters and producers not individually investigated in 
accordance with section 735(c)(5) of the Act. Section 735(c)(5)(A) of 
the Act states that generally the estimated rate for all others shall 
be an amount equal to the weighted average of the estimated weighted-
average dumping margins established for exporters and producers 
individually investigated, excluding any zero and de minimis margins, 
and any margins determined entirely under section 776 of the Act. The 
estimated weighted-average dumping margins in this preliminary 
determination were calculated entirely under section 776 of the Act. In 
cases where no weighted-average dumping margins other than zero, de 
minimis, or those determined entirely under section 776 of the Act have 
been established for individually examined entities, in accordance with 
section 735(c)(5)(B) of the Act, Commerce typically averages the 
margins alleged in the petition and applies the results to all other 
entities not individually examined.
    In the Petitions,\7\ the petitioner calculated two estimated 
dumping margins, 50.45 percent and 51.70 percent. Therefore, consistent 
with our practice,\8\ for the all-others rate in this investigation, we 
preliminarily assigned a simple average of the dumping margins alleged 
in the Petitions, which is 51.07 percent.\9\
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    \7\ See Petitioner's Letter, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties: Seamless Carbon and Alloy 
Steel Standard, Line, and Pressure Pipe from the Czech Republic, the 
Republic of Korea, Russia, and Ukraine,'' dated July 8, 2020 
(Petitions) at Volume IV; see also AD Investigation Initiation 
Checklist: Seamless Carbon and Alloy Steel Standard, Line, and 
Pressure Pipe from the Czech Republic (July 28, 2020) (Initiation 
Checklist).
    \8\ See, e.g., Notice of Final Determination of Sales at Less 
Than Fair Value: Sodium Nitrite from the Federal Republic of 
Germany, 73 FR 38986, 38987 (July 8, 2008), and accompanying Issues 
and Decision Memorandum at Comment 2.
    \9\ See Petitions at Volume IV and Initiation Checklist.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist during the period July 1, 2019 
through June 30, 2020:

------------------------------------------------------------------------
                                                          Dumping margin
                    Exporter/producer                        (percent)
------------------------------------------------------------------------
Liberty Ostrava A.S.....................................           51.70
Moravia Steel A.S.......................................           51.70
All Others..............................................           51.07
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of all entries of seamless pipe from the Czech Republic, as described 
in the ``Scope of the Investigation'' in Appendix I, entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register.
    We will also instruct CBP, pursuant to section 733(d)(1)(B) of the 
Act and 19 CFR 351.205(d), to require a cash deposit equal to the 
margins indicated in the chart above. These suspension of liquidation 
instructions will remain in effect until further notice.

Verification

    Because the mandatory respondents in this investigation did not act 
to the best of their ability to provide information requested by 
Commerce, and Commerce preliminarily determines each of the mandatory 
respondents to be uncooperative, we will not conduct verifications.

Disclosure

    Normally, Commerce discloses to interested parties the calculations 
performed in connection with a preliminary determination within five 
days of any public announcement or, if there is no public announcement, 
within five days of the date of publication of the notice of 
preliminary determination in the Federal Register, in accordance with 
19 CFR 351.224(b). However, because Commerce preliminarily applied AFA 
to each of the mandatory respondents in this investigation, in 
accordance with section 776 of the Act, there are no calculations to 
disclose.

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.
    Interested parties are invited to comment on this preliminary 
determination no later than 30 days after the date of publication of 
this

[[Page 83061]]

preliminary determination.\10\ 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\ Pursuant to 19 CFR 351.309(c)(2) 
and (d)(2), parties who submit case briefs or rebuttal briefs in this 
proceeding 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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    \10\ See 19 CFR 351.309(c)(1)(i); see also 19 CFR 351.303 (for 
general filing requirements).
    \11\ See 19 CFR 351.309(d); see also 19 CFR 351.303 (for general 
filing requirements).
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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 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: 
(1) The party's name, address, and telephone number; (2) the number of 
participants and whether any participant is a foreign national; and (3) 
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.
    An electronically filed document must be received successfully in 
its entirety by ACCESS by 5:00 p.m. Eastern Time on the established 
deadline. Commerce has modified certain of its requirements for serving 
documents containing business proprietary information, until further 
notice.\12\
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    \12\ See 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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Final Determination

    Section 735(a)(1) of the Act and 19 CFR 351.210(b)(1) provide that 
Commerce will issue the final determination within 75 days after the 
date of its preliminary determination. Accordingly, Commerce will make 
its final determination no later than 75 days after the signature date 
of this preliminary determination.

International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of our affirmative preliminary 
determination. If our final determination is affirmative, the ITC will 
determine before the later of 120 days after the date of this 
preliminary determination or 45 days after our final determination 
whether these imports are materially injuring, or threaten material 
injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

    Dated: December 15, 2020.
Jeffrey I. Kessler,
Assistant Secretary for 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 investigation 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. Period of Investigation
IV. Scope of Investigation
V. Application of Facts Available, Use of Adverse Inference, and 
Calculation of All-Others Rate
VI. Recommendation

[FR Doc. 2020-28094 Filed 12-18-20; 8:45 am]
BILLING CODE 3510-DS-P