[Federal Register Volume 86, Number 125 (Friday, July 2, 2021)]
[Notices]
[Pages 35263-35265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-14141]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-821-827]


Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe 
From the Russian Federation: Final Affirmative Countervailing Duty 
Determination

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

SUMMARY: The Department of Commerce (Commerce) 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 Russian Federation (Russia).

DATES: Applicable July 2, 2021.

FOR FURTHER INFORMATION CONTACT: Caitlin Monks, AD/CVD Operations, 
Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-2670.

SUPPLEMENTARY INFORMATION:

Background

    The petitioner in this investigation is Vallourec Star, L.P. In 
addition to the Government of Russia (GOR), the mandatory respondents 
in this investigation are PAO TMK, Volzhsky Pipe Plant Joint Stock 
Company (Volzhsky), and certain cross-owned affiliates (collectively, 
TMK).\1\ On December 11, 2020, Commerce published in the Federal 
Register the Preliminary Determination and aligned this final 
determination with the final antidumping duty (AD) determination, in 
accordance with section 705(a)(1) of the Tariff Act of 1930, as amended 
(the Act), and 19 CFR 351.210(b)(4)(i).\2\
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    \1\ See Memorandum, ``Countervailing Duty Investigation of 
Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe 
from the Russian Federation: Respondent Selection,'' dated August 
13, 2020. As discussed in the Preliminary Decision Memorandum (PDM), 
the cross-owned companies that comprise TMK are: PAO TMK, Volzhsky 
Pipe Plant Joint Stock Company (Volzhsky), Taganrog Metallurgical 
Plant Joint Stock Company (Tagmet), Sinarsky Pipe Plant Joint Stock 
Company (Sinarsky), Seversky Pipe Plant Joint Stock Company 
(Seversky), TMK CHERMET LLC (TMK CHERMET), TMK CHERMET LLC Volzhsky 
(TMK CHERMET Volzhsky), TMK CHERMET LLC Ekaterinburg (TMK CHERMET 
Ekaterinburg), TMK CHERMET LLC Rostov (TMK CHERMET Rostov), TMK 
CHERMET LLC Saratov (TMK CHERMET Saratov), and TMK CHERMET LLC 
Service (TMK CHERMET Service).
    \2\ See Seamless Carbon and Alloy Steel Standard, Line, and 
Pressure Pipe from the Russian Federation: Preliminary Affirmative 
Countervailing Duty Determination and Alignment of Final 
Determination with Final Antidumping Duty Determination, 85 FR 80007 
(December 11, 2020) (Preliminary Determination), and accompanying 
PDM.

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[[Page 35264]]

    A summary of the events that occurred since Commerce published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by parties for this final determination, may be found in the 
Issues and Decision Memorandum, which is hereby adopted by this 
notice.\3\ The Issues and 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 Issues and Decision Memorandum can 
be accessed directly at http://enforcement.trade.gov/frn/.
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    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Countervailing Duty 
Investigation of Seamless Carbon and Alloy Steel Standard, Line, and 
Pressure Pipe from the Russian Federation,'' dated concurrently with 
this determination (Issues and Decision Memorandum).
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Period of Investigation

    The period of investigation is January 1, 2019, through December 
31, 2019.

Scope of the Investigation

    The product covered by this investigation is seamless pipe from 
Russia. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    We did not receive comments from interested parties on the 
Preliminary Scope Decision Memorandum.\4\ As discussed in Preliminary 
Scope Decision Memorandum, Commerce modified the scope language as it 
appeared in the Initiation Notice to clarify certain exclusions. See 
the scope in Appendix I.
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    \4\ See Commerce's Memorandum, ``Preliminary Scope Memorandum,'' 
dated December 11, 2020 (Preliminary Scope Memorandum).
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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 an on-site 
verification to verify the information relied upon in making this final 
determination, in accordance with section 782(i) of the Act.\5\
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    \5\ See Commerce's Letter, ``Countervailing Duty Investigation 
of Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe 
from the Russian Federation: In Lieu of Verification 
Questionnaire,'' dated March 29, 2021.
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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 by parties in this investigation are 
discussed in the Issues and Decision Memorandum. A list of the issues 
raised by parties is attached to this notice at Appendix II.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Act. For each of the subsidy programs found 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.\6\ For a full description 
of the methodology underlying our final determination, see the Issues 
and Decision Memorandum.
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    \6\ 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 is relying, 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 Adverse Inferences'' in 
the accompanying Issues and Decision Memorandum.\7\
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    \7\ See Preliminary Determination PDM at ``Use of Facts 
Available, with Adverse Inferences;'' see also Issues and Decision 
Memorandum at ``Use of Facts Available, and Adverse Inferences.''
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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 countervailable subsidy rate calculation for TMK. For a 
discussion of these changes, see the Issues and Decision Memorandum.

All-Others Rate

    Section 705(c)(5)(A) of the Act provides that in the final 
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 calculated an individual estimated 
countervailable subsidy rate for TMK, the only individually examined 
exporter/producer, which is not zero, de minimis, or based entirely on 
facts otherwise available.\8\ Accordingly, we have assigned the 
estimated countervailable subsidy rate calculated for TMK to all other 
producers and exporters, pursuant to section 705(c)(5)(A)(i) of the 
Act.
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    \8\ See Preliminary Determination, 85 FR at 80025.
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Final Determination

    Commerce determines that the following countervailable subsidy 
rates exist:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
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PAO TMK/Volzhsky Pipe Plant Joint Stock Company \9\.........       48.38
All Others..................................................       48.38
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Disclosure
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    \9\ As discussed in the PDM Commerce has found the following 
companies to be cross-owned with PAO TMK and Volzhsky Pipe Plant 
Joint Stock Company: Sinarsky Pipe Plant; Taganrog Metallurgical 
Plant Joint Stock Company; Sinarsky Pipe Plant Joint Stock Company; 
Seversky Pipe Plant Joint Stock Company; TMK CHERMET LLC; TMK 
CHERMET LLC Volzhsky; TMK CHERMET LLC Ekaterinburg; TMK CHERMET LLC 
Rostov; TMK CHERMET LLC Saratov; and TMK CHERMET LLC Service.
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    Commerce intends to disclose to interested parties its calculations 
and analysis performed in this final determination within five days of 
its public announcement, or if there is no public announcement, within 
five days of the date of publication of this notice in accordance with 
19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
sections 703(d)(1)(B) and (d)(2) of the Act, we 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, effective December 11, 2020, which is the 
date of publication of the Preliminary Determination in the Federal 
Register.
    In accordance with section 703(d) of the Act, effective April 10, 
2021, we instructed CBP to discontinue the suspension of liquidation of 
all entries at that time, but to continue the suspension of liquidation 
of all entries

[[Page 35265]]

between December 11, 2020, and April 9, 2021.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order, and continue to require a cash deposit of estimated 
countervailing duties for such entries of subject merchandise in the 
amounts indicated above, in accordance with section 706(a) of the Act. 
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 its final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of seamless 
pipe 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 seamless pipe 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.

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 the 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: June 25, 2021.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.

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 51 
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 51 
specifications. Also excluded from the scope of the investigation 
are: (1) Oil country tubular goods consisting of drill pipe, casing, 
tubing and coupling stock; (2) all pipes meeting the chemical 
requirements of ASTM A-335 regardless of their conformity to the 
dimensional requirements of ASTM A-53, ASTM A-106 or API 5L; and (3) 
the exclusion for ASTM A335 applies to pipes meeting the comparable 
specifications GOST 550-75.
    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 Final Decision Memorandum

I. Summary
II. Background
III. Use of Facts Available, and Adverse Inferences
IV. Subsidies Valuation Information
V. Benchmarks and Interest Rates
VI. Analysis of Programs
VII. Analysis of Comments
    Comment 1: Whether Commerce Used the Appropriate Sales 
Denominator To Calculate TMK's Subsidy Rates
    Comment 2: Whether Commerce Can Investigate Subsidies Not 
Included in the Petition
    Comment 3a: Whether PJSC Gazprom (Gazprom) Is a Government 
Authority That Provides a Financial Contribution
    Comment 3b: Whether Oil Company Rosneft, Public Joint Stock 
Company (Rosneft) Is a Government Authority That Provides a 
Financial Contribution
    Comment 3c: Whether the Provision of Natural Gas Is Specific
    Comment 3d: Whether Commerce Should Adjust the Natural Gas 
Benchmark to ``Tier-One''
    Comment 3e: Whether Commerce Should Adjust the Natural Gas 
Benchmark to ``Tier-Two''
    Comment 3f: Whether Commerce Should Change the Data Relied Upon 
in Its Natural Gas ``Tier-Three'' Analysis
    Comment 4a: Whether Certain SCBs Are Government Authorities
    Comment 4b: Whether Lending From Certain SCBs Is Specific
    Comment 4c: Whether Commerce's Application of Adverse Facts 
Available (AFA) With Respect to Its Specificity Determination Is 
Supported by the Record
    Comment 4d: Whether Commerce Should Adjust Its Lending Rate 
Benchmark
    Comment 5a: Whether the Sverdlovsk Region's Development Program 
Provides a Financial Contribution
    Comment 5b: Whether the Sverdlovsk Region's Development Program 
Is Specific
    Comment 6: Whether the Regional Investment Incentives From the 
Rostov Government Are Specific
VIII. Recommendation

[FR Doc. 2021-14141 Filed 7-1-21; 8:45 am]
BILLING CODE 3510-DS-P