[Federal Register Volume 75, Number 217 (Wednesday, November 10, 2010)]
[Notices]
[Pages 69052-69054]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-28410]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-956]


Certain Seamless Carbon and Alloy Steel Standard, Line, and 
Pressure Pipe From the People's Republic of China: Amended Final 
Determination of Sales at Less Than Fair Value and Antidumping Duty 
Order

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce

DATES: Effective Date: November 10, 2010.
SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (the ``Department'') and the International Trade Commission 
(``ITC''), the Department is issuing an antidumping duty order on 
certain seamless carbon and alloy steel standard, line, and pressure 
pipe (``seamless pipe'') from the People's Republic of China (``PRC''). 
In addition, the Department is amending its final determination to 
correct certain ministerial errors.

FOR FURTHER INFORMATION CONTACT: Magd Zalok or Brandon Farlander, AD/
CVD Operations, Office 4, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
4162 or (202) 482-0182, respectively.

SUPPLEMENTARY INFORMATION:

Background

    In accordance with sections 735(d) and 777(i)(1) of the Tariff Act 
of 1930, as amended (``Act''), on September 21, 2010, the Department 
published the final determination of sales at less than fair value in 
the antidumping duty investigation of seamless pipe from the PRC. See 
Certain Seamless Carbon and Alloy Steel Standard, Line, and Pressure 
Pipe from the People's Republic of China: Final Determination of Sales 
at Less Than Fair Value and Critical Circumstances, in Part, 75 FR 
57449 (September 21, 2010) (``Final Determination''). On November 4, 
2010, the ITC notified the Department of its affirmative determination 
of threat of material injury to a U.S. industry, and its negative 
determination of critical circumstances. See Certain Seamless Carbon 
and Alloy Steel Standard, Line, and Pressure Pipe from China, USITC 
Investigation Nos. 701-TA-469 and 731-TA-1168 (Final), USITC 
Publication 4190, (November 2010).

Scope of the Order

    The merchandise covered by this order is certain seamless carbon 
and alloy steel (other than stainless steel) pipes and redraw hollows, 
less than or equal to 16 inches (406.4 mm) in 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 exclusion discussed below.
    Specifically excluded from the scope of the order are: (1) All 
pipes meeting

[[Page 69053]]

aerospace, hydraulic, and bearing tubing specifications; (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 order 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.
    The merchandise covered by the order is currently classified in the 
Harmonized Tariff Schedule of the United States (``HTSUS'') under item 
numbers: 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.
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, our written description of the merchandise subject to 
this scope is dispositive.

Amendment to the Final Determination

    On September 21, 2010, the Department published its affirmative 
final determination in this proceeding. See Final Determination. On 
September 21, 2010, United States Steel Corporation (``U.S. Steel''), a 
petitioner in the investigation, and Tianjin Pipe (Group) Corporation 
and Tianjin Pipe International Economic and Trading Corporation 
(collectively ``TPCO''), a respondent in the investigation, submitted 
timely ministerial error allegations and requested, pursuant to 19 CFR 
351.224, that the Department correct the alleged ministerial errors in 
the dumping margin calculations. On September 27, 2010, U.S. Steel, 
TPCO and Hengyang Steel Tube Group Int'l Trading Inc., Hengyang Valin 
Steel Tube Co., Ltd. and Hengyang Valin MPM Tube Co., Ltd. 
(collectively ``Hengyang''), the other mandatory respondent in this 
investigation, filed rebuttal comments. No other interested party 
submitted ministerial error allegations or rebuttal comments.
    After analyzing all interested party comments and rebuttals, we 
have determined, in accordance with section 735(e) of the Act and 19 
CFR 351.224(e), that we made the following ministerial errors in our 
calculations for the Final Determination with respect to TPCO and 
Hengyang:
    <bullet> For TPCO, we unintentionally adjusted the denominator used 
to calculate the ratio for market-economy purchases (``MEP'') of steel 
scrap, thereby resulting in an incorrect ratio for the MEP of steel 
scrap.
    <bullet> For TPCO, we unintentionally calculated the percentage 
reduction to TPCO's reported by-product offset by dividing the quantity 
of further processed steel scrap by the quantity of steel scrap 
reintroduced into production, rather than the quantity of steel scrap 
generated by TPCO during the period of investigation.
    <bullet> For one of the three financial statements used to 
calculate the financial ratios for TPCO and Hengyang, we 
unintentionally: (1) Classified an amount for dividend income as 
selling, general and administrative expenses (``SG&A'') and interest, 
instead of excluding the dividend income from our calculation; and (2) 
excluded a financial expense amount, rather than including it in the 
SG&A and interest expense category.
    For a detailed discussion of the ministerial errors alleged by U.S. 
Steel and the respondent, as well as the Department's analysis, see the 
Memorandum to Susan H. Kuhbach, Acting Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations, ``Ministerial Error 
Memorandum, Amended Final Determination of Sales at Less Than Fair 
Value: Certain Seamless Carbon and Alloy Steel Standard, Line, and 
Pressure Pipe from the People's Republic of China,'' dated October 15, 
2010 (``Ministerial Error Memorandum'').
    Also, in the Final Determination we determined that a number of 
companies in addition to the mandatory respondents qualified for a 
separate rate. See Final Determination at 57452. Since the cash deposit 
rate for the separate rate respondents is based on the average of the 
margins for the mandatory respondents, and the margins for TPCO and 
Hengyang changed as a result of the aforementioned ministerial errors, 
in the amended final determination, we have revised the calculation of 
the dumping margin for the separate rate respondents as well. See 
Ministerial Error Memorandum. The amended weighted average dumping 
margins are as follows:

------------------------------------------------------------------------
                                                            Weighted-
           Exporter                    Producer          Average margin
                                                             percent
------------------------------------------------------------------------
Tianjin Pipe International      Tianjin Pipe (Group)               50.01
 Economic and Trading            Corporation.
 Corporation.
Hengyang Steel Tube Group       Hengyang Valin Steel               82.24
 Int'l Trading Inc.              Tube Ltd., and
                                 Hengyang Valin MPM
                                 Tube Co., Ltd.
Xigang Seamless Steel Tube      Xigang Seamless Steel              66.13
 Co., Ltd.                       Tube Co., Ltd., and
                                 Wuxi Seamless Special
                                 Pipe Co., Ltd.
Jiangyin City Changjiang Steel  Jiangyin City                      66.13
 Pipe Co., Ltd.                  Changjiang Steel Pipe
                                 Co., Ltd.
Pangang Group Chengdu Iron &    Pangang Group Chengdu              66.13
 Steel Co., Ltd.                 Iron & Steel Co., Ltd.
Yangzhou Lontrin Steel Tube     Yangzhou Lontrin Steel             66.13
 Co., Ltd.                       Tube Co., Ltd.
Yangzhou Chengde Steel Tube     Yangzhou Chengde Steel             66.13
 Co., Ltd.                       Tube Co., Ltd.
PRC-wide Entity...............  ......................             98.74
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Antidumping Duty Order

    On November 4, 2010, in accordance with section 735(d) of the Act, 
the ITC notified the Department of its final determination in this 
investigation. In its final determination in this investigation, the 
ITC found that a U.S. industry is threatened with material injury by 
reason of imports of seamless pipe from the PRC. According to section 
736(b)(2) of the Act, duties shall be assessed on subject merchandise 
entered, or withdrawn from warehouse, for consumption on or after the 
date of publication of the ITC's notice of final determination if that 
determination is based on the threat of material injury and is not 
accompanied by a finding that injury would have resulted without the 
imposition of suspension of liquidation of entries since the

[[Page 69054]]

Department's preliminary determination. In addition, section 736(b)(2) 
of the Act requires U.S. Customs and Border Protection (``CBP'') to 
refund any cash deposits or bonds of estimated antidumping duties 
posted since the preliminary antidumping determination if the ITC's 
final determination is threat-based. Therefore, in accordance with 
section 736(b)(2) of the Act and our practice, we will instruct CBP to 
terminate the suspension of liquidation and refund any cash deposits 
made and release any bonds posted for estimated antidumping duties for 
entries of seamless pipe from the PRC entered, or withdrawn from 
warehouse, for consumption on or after April 28, 2010, the date on 
which the Department published its Preliminary Determination, but 
before the date of publication of the ITC's final determination in the 
Federal Register. For exports from Hengyang and the PRC-wide entity, we 
will instruct CBP to lift suspension, release any bond or other 
security, and refund any cash deposit made to secure the payment of 
antidumping duties with respect to entries of the merchandise entered, 
or withdrawn from warehouse, for consumption on or after January 28, 
2010 (i.e., 90 days prior to the date of publication of the preliminary 
determination in the Federal Register), through April 27, 2010. 
Further, we will instruct CBP to continue to suspend liquidation of 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of the ITC's notice of 
final determination. The instructions suspending liquidation will 
remain in effect until further notice.
    In accordance with section 736(a)(3) of the Act, we will instruct 
CBP to require cash deposits of estimated antidumping duties. In its 
final determination in the companion countervailing duty (``CVD'') 
investigation, the Department found that TPCO's and Hengyang's 
merchandise benefited from export subsidies.\1\ Additionally, because 
the Department found that TPCO and Hengyang, the companies that it 
investigated in the CVD case, benefited from export subsidies, all 
other exporters have benefited from export subsidies based upon the 
results determined for TPCO and Hengyang. Therefore, we will instruct 
CBP to require an antidumping duty cash deposit equal to the weighted-
average amount by which the normal value exceeds the U.S. price for 
TPCO and Hengyang, as indicated in the table above, minus the amount 
determined to constitute an export subsidy for each company. For the 
separate-rate companies, we will instruct CBP to adjust the dumping 
margin by the amount of export subsidies included in the All Others 
rate from the CVD Final. Accordingly, as of the date of publication of 
the ITC's final affirmative injury determination, CBP will require, at 
the same time as importers would normally deposit estimated duties on 
this subject merchandise, a cash deposit equal to the estimated 
weighted-average antidumping duty margins discussed above, minus the 
amount determined to constitute an export subsidy. See section 
735(c)(1) of the Act. The ``PRC-wide'' rate applies to all exporters of 
subject merchandise not specifically listed.
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    \1\ See Certain Seamless Carbon and Alloy Steel Standard, Line, 
and Pressure Pipe from the People's Republic of China: Final 
Affirmative Countervailing Duty Determination, Final Affirmative 
Critical Circumstances Determination, 75 FR 57444 (September 21, 
2010) (``CVD Final'').
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    Additionally, in accordance with section 736 of the Act, the 
Department will also direct CBP to assess antidumping duties on all 
unliquidated entries of seamless pipe from the PRC entered, or 
withdrawn from warehouse, for consumption on or after the date on which 
the ITC published its notice of final determination of threat of 
material injury in the Federal Register.
    This notice constitutes the antidumping duty order with respect to 
seamless pipe from the PRC pursuant to section 736(a) of the Act. 
Interested parties may contact the Department's Central Records Unit, 
Room 7043 of the main Commerce building, for copies of an updated list 
of antidumping duty orders currently in effect.
    This order is published in accordance with section 736(a) of the 
Act and 19 CFR 351.211.

Edward C. Yang,
Acting Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-28410 Filed 11-9-10; 8:45 am]
BILLING CODE 3510-DS-P