[Federal Register Volume 75, Number 12 (Wednesday, January 20, 2010)]
[Notices]
[Pages 3203-3205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-1056]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-944]


Certain Oil Country Tubular Goods From the People's Republic of 
China: Amended Final Affirmative Countervailing Duty Determination and 
Countervailing Duty Order

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

SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (``the Department'') and the International Trade Commission 
(``ITC''), the Department is issuing a countervailing duty order on 
certain oil country tubular goods (``OCTG'') from the People's Republic 
of China (``PRC''). Also, as explained in this notice, the Department 
is amending its final determination to correct certain ministerial 
errors.

DATES: Effective Date: January 20, 2010.

FOR FURTHER INFORMATION CONTACT: David Neubacher or Shane Subler, AD/
CVD Operations, Office 1, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
5823 and (202) 482-0189, respectively.

Background

    The Department published its final determination on December 7, 
2009. See Certain Oil Country Tubular Goods From the People's Republic 
of China: Final Affirmative Countervailing Duty Determination, Final 
Negative Critical Circumstances Determination, 74 FR 64045 (December 7, 
2009) (``Final Determination'').
    On January 13, 2010, the ITC notified the Department of its final 
determination pursuant to sections 705(b)(1)(A)(ii) and 705(d) of the 
Tariff Act of 1930, as amended (``the Act''), that an industry in the 
United States is threatened with material injury by reason of 
subsidized imports of subject merchandise from the PRC. See Certain Oil 
Country Tubular Goods from China, USITC Investigation No. 701-TA-463 
(Final), USITC Publication 4124 (January 2010). Pursuant to section 
706(a) of the Act, the Department is publishing a countervailing duty 
order on the subject merchandise.

Scope of the Order

    The scope of this order consists of certain oil country tubular 
goods (``OCTG''), which are hollow steel

[[Page 3204]]

products of circular cross-section, including oil well casing and 
tubing, of iron (other than cast 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 
the order also covers OCTG coupling stock. Excluded from the scope of 
the order are: casing or tubing containing 10.5 percent or more by 
weight of chromium; drill pipe; unattached couplings; and unattached 
thread protectors.
    The merchandise subject to this order is currently classified in 
the Harmonized Tariff Schedule of the United States (``HTSUS'') under 
item numbers: 7304.29.10.10, 7304.29.10.20, 7304.29.10.30, 
7304.29.10.40, 7304.29.10.50, 7304.29.10.60, 7304.29.10.80, 
7304.29.20.10, 7304.29.20.20, 7304.29.20.30, 7304.29.20.40, 
7304.29.20.50, 7304.29.20.60, 7304.29.20.80, 7304.29.31.10, 
7304.29.31.20, 7304.29.31.30, 7304.29.31.40, 7304.29.31.50, 
7304.29.31.60, 7304.29.31.80, 7304.29.41.10, 7304.29.41.20, 
7304.29.41.30, 7304.29.41.40, 7304.29.41.50, 7304.29.41.60, 
7304.29.41.80, 7304.29.50.15, 7304.29.50.30, 7304.29.50.45, 
7304.29.50.60, 7304.29.50.75, 7304.29.61.15, 7304.29.61.30, 
7304.29.61.45, 7304.29.61.60, 7304.29.61.75, 7305.20.20.00, 
7305.20.40.00, 7305.20.60.00, 7305.20.80.00, 7306.29.10.30, 
7306.29.10.90, 7306.29.20.00, 7306.29.31.00, 7306.29.41.00, 
7306.29.60.10, 7306.29.60.50, 7306.29.81.10, and 7306.29.81.50.
    The OCTG coupling stock covered by the order may also enter under 
the following HTSUS item numbers: 7304.39.00.24, 7304.39.00.28, 
7304.39.00.32, 7304.39.00.36, 7304.39.00.40, 7304.39.00.44, 
7304.39.00.48, 7304.39.00.52, 7304.39.00.56, 7304.39.00.62, 
7304.39.00.68, 7304.39.00.72, 7304.39.00.76, 7304.39.00.80, 
7304.59.60.00,, 7304.59.80.15, 7304.59.80.20, 7304.59.80.25, 
7304.59.80.30, 7304.59.80.35, 7304.59.80.40, 7304.59.80.45, 
7304.59.80.50, 7304.59.80.55, 7304.59.80.60, 7304.59.80.65, 
7304.59.80.70, and 7304.59.80.80.
    The HTSUS subheadings are provided for convenience and customs 
purposes only. The written description of the scope of this order is 
dispositive.

Amendment to the Final Determination

    On December 14, 2009, petitioners United States Steel Corporation 
(``U.S. Steel'') and TMK IPSCO et al.\1\ (collectively, 
``Petitioners'') \2\ filed timely allegations that the Department made 
three ministerial errors in its Final Determination. No interested 
party filed a rebuttal to Petitioners' allegations.
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    \1\ TMK IPSCO, V&M Star L.P., Wheatland Tube Corp., Evraz Rocky 
Mountain Steel, and The United Steelworkers.
    \2\ Maverick Tube Corporation is also a petitioner in this 
investigation, but the company did not file any ministerial error 
allegations.
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    After analyzing the allegations, we have determined, in accordance 
with 19 CFR 351.224(e), that we made these three ministerial errors in 
the calculations.\3\ We have also corrected an additional ministerial 
error.
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    \3\ See generally Memorandum to Susan Kuhbach, Director, Office 
1, AD/CVD Operations, from Nancy Decker, Program Manager, Office 1, 
``Countervailing Duty Investigation: Certain Oil Country Tubular 
Goods from the People's Republic of China: Ministerial Errors for 
Final Determination'' (December 28, 2009) (``Ministerial Error 
Allegations Memo'').
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    In summary, U.S. Steel alleged that the Department made errors in 
the calculation of the electricity subsidy rate for Wuxi Seamless Oil 
Pipe Co., Ltd. (``WSP'') and applied incorrect benchmark interest and 
inflation rates to certain WSP loans in the policy lending program 
calculation. TMK IPSCO et al. alleged that the Department omitted the 
electricity subsidy rate from Jiangsu Changbao Steel Tube Co., Ltd.'s 
(``Changbao'') overall subsidy rate. We agree with Petitioners that 
these errors constitute ministerial errors. Also, we identified a 
ministerial error in the benefit calculation for the policy lending 
program for Tianjin Pipe (Group) Co. (``TPCO''). We are correcting 
these errors with this notice. See Ministerial Error Allegations Memo 
at pages 2-3.
    As a result of these corrections, WSP's countervailing duty rate 
changed from 14.61 percent to 14.95 percent, Changbao's rate changed 
from 11.98 percent to 12.46 percent, and TPCO's rate changed from 10.36 
percent to 10.49 percent. The countervailing duty rate for Zhejiang 
Jianli Enterprise Co., Ltd. is unchanged. The countervailing duty rate 
for all others changed from 13.20 percent to 13.41 percent. In 
accordance with 19 CFR 351.224(e), we are amending the Final 
Determination to reflect these changes.

Countervailing Duty Order

    In accordance with section 706(a)(1) of the Act, the Department 
will direct U.S. Customs and Border Protection (``CBP'') to assess, 
upon further instruction by the Department, countervailing duties equal 
to the amount of the net countervailable subsidy for all relevant 
entries of OCTG from the PRC.
    According to section 706(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 upon the threat of 
material injury. Section 706(b)(1) of the Act states, ``If the 
Commission, in its final determination under section 705(b), finds 
material injury or threat of material injury which, but for the 
suspension of liquidation under section 703(d)(2), would have led to a 
finding of material injury, then entries of the merchandise subject to 
the countervailing duty order, the liquidation of which has been 
suspended under section 703(d)(2), shall be subject to the imposition 
of countervailing duties under section 701(a).'' In addition, section 
706(b)(2) of the Act requires CBP to refund any cash deposits or bonds 
of estimated countervailing duties posted since the Department's 
preliminary countervailing duty determination, if the ITC's final 
determination is threat-based. Because the ITC's final determination in 
this case is based on the threat of material injury and is not 
accompanied by a finding that injury would have resulted but for the 
imposition of suspension of liquidation of entries since the 
Department's Preliminary Determination \4\ was published in the Federal 
Register, section 706(b)(2) of the Act is applicable.
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    \4\ See Certain Oil Country Tubular Goods From the People's 
Republic of China: Preliminary Affirmative Countervailing Duty 
Determination, Preliminary Negative Critical Circumstances 
Determination, 74 FR 47210 (September 15, 2009) (``Preliminary 
Determination'').
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    Therefore, the Department will direct CBP to reinstitute suspension 
of liquidation,\5\ and to assess, upon further

[[Page 3205]]

instruction from the Department, countervailing duties on all 
unliquidated entries of OCTG from the PRC entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of the 
ITC's notice of final determination of threat of material injury in the 
Federal Register.
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    \5\ The Department instructed CBP to discontinue the suspension 
of liquidation on January 13, 2010, in accordance with section 
703(a) of the Act. Section 703(d) states that the suspension of 
liquidation pursuant to a preliminary determination may not remain 
in effect for more than four months. Entries of OCTG from the PRC 
made on or after January 13, 2010, and prior to the date of 
publication of the ITC's final determination in the Federal Register 
are not liable for the assessment of countervailing duties because 
of the Department's discontinuation, effective January 13, 2010, of 
the suspension of liquidation.
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Cash Deposit Requirements

    Effective on the date of publication of the ITC's notice of final 
determination in the Federal Register, CBP will require, at the same 
time as importers would normally deposit estimated duties, cash 
deposits for the subject merchandise equal to the net subsidy rates 
listed below. See section 706(a)(3) of the Act. The all-others rate 
applies to all producers and exporters of subject merchandise not 
specifically listed.

------------------------------------------------------------------------
                                                       Net subsidy rate
                Exporter/manufacturer                      (percent)
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Jiangsu Changbao Steel Tube Co. and Jiangsu Changbao               12.46
 Precision Steel Tube Co., Ltd......................
Tianjin Pipe (Group) Co., Tianjin Pipe Iron                        10.49
 Manufacturing Co., Ltd., Tianguan Yuantong Pipe
 Product Co., Ltd., Tianjin Pipe International
 Economic and Trading Co., Ltd., and TPCO Charging
 Development Co., Ltd...............................
Wuxi Seamless Pipe Co, Ltd., Jiangsu Fanli Steel                   14.95
 Pipe Co, Ltd., Tuoketuo County Mengfeng Special
 Steel Co., Ltd.....................................
Zhejiang Jianli Enterprise Co., Ltd., Zhejiang                     15.78
 Jianli Steel Steel Tube Co., Ltd., Zhuji Jiansheng
 Machinery Co., Ltd., and Zhejiang Jianli Industry
 Group Co., Ltd.....................................
All Others..........................................               13.41
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Termination of the Suspension of Liquidation

    The Department will also instruct CBP to terminate the suspension 
of liquidation for entries of OCTG from the PRC entered, or withdrawn 
from warehouse, for consumption prior to the publication of the ITC's 
notice of final determination. The Department will also instruct CBP to 
refund any cash deposits made and release any bonds posted between 
September 15, 2009 (i.e., the date of publication of the Department's 
Preliminary Determination) and the date of publication of the ITC's 
final determination in the Federal Register.
    This notice constitutes the countervailing duty order with respect 
to OCTG from the PRC, pursuant to section 706(a) of the Act. Interested 
parties may contact the Department's Central Records Unit, Room 1117 of 
the main Commerce Building, for copies of an updated list of 
countervailing duty orders currently in effect.
    This order is issued and published in accordance with section 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: January 15, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-1056 Filed 1-19-10; 8:45 am]
BILLING CODE 3510-DS-P