[Federal Register Volume 79, Number 219 (Thursday, November 13, 2014)]
[Notices]
[Pages 67417-67419]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-26787]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-966]


Drill Pipe From the People's Republic of China: Preliminary 
Results of Countervailing Duty Administrative Review; 2013

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

SUMMARY: The Department of Commerce (the Department) is conducting an 
administrative review of the countervailing duty (CVD) order on drill 
pipe from the People's Republic of China (PRC). The period of review 
(POR) is January 1, 2013, through December 31, 2013. We preliminarily 
determine that Shanxi Yida Special Steel Imp. & Exp. Co., Ltd. and its 
cross-owned affiliates received countervailable subsidies during the 
POR.

DATES: Effective Date: November 13, 2014.

FOR FURTHER INFORMATION CONTACT: Kristen Johnson, AD/CVD Operations, 
Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone (202) 482-
4793.

Scope of the Order

    The scope of the order consists of steel drill pipe and steel drill 
collars, whether or not conforming to American Petroleum Institute 
(API) or non-API specifications. The merchandise subject to the order 
is currently classifiable under the Harmonized Tariff Schedule of the 
United States (HTSUS) categories: 7304.22.0030, 7304.22.0045, 
7304.22.0060, 7304.23.3000, 7304.23.6030, 7304.23.6045, 7304.23.6060, 
8431.43.8040 and may also enter under 8431.43.8060, 8431.43.4000, 
7304.39.0028, 7304.39.0032, 7304.39.0036, 7304.39.0040, 7304.39.0044, 
7304.39.0048, 7304.39.0052, 7304.39.0056, 7304.49.0015, 7304.49.0060, 
7304.59.8020, 7304.59.8025, 7304.59.8030, 7304.59.8035, 7304.59.8040, 
7304.59.8045, 7304.59.8050, and 7304.59.8055. Although the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written product description remains dispositive.
    A full description of the scope of the order is contained in the 
memorandum from Christian Marsh, Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations to Ronald K. Lorentzen, 
Acting Assistant Secretary for Enforcement and Compliance, ``Decision 
Memorandum for Preliminary Results of Countervailing Duty 
Administrative Review: Drill Pipe from the People's Republic of China'' 
(Preliminary Decision Memorandum), dated concurrently with this notice, 
and hereby adopted by 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 (IA ACCESS). 
IA ACCESS is available to registered users at http://iaaccess.trade.gov 
and in the Central Records Unit, room 7046 of the main Department of 
Commerce

[[Page 67418]]

building. In addition, a complete version of the Preliminary Decision 
Memorandum can be accessed directly at http://enforcement.trade.gov/frn/index.html. The signed Preliminary Decision Memorandum and the 
electronic version of the Preliminary Decision Memorandum are identical 
in content. A list of topics discussed in the Preliminary Decision 
Memorandum is provided in the Appendix to this notice.

Methodology

    The Department conducted this review in accordance with section 
751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). For the 
program found countervailable, we preliminarily determine that there is 
a subsidy, i.e., a government-provided financial contribution that 
gives rise to a benefit to the recipient, and that the subsidy is 
specific. 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.
    In making the preliminary findings, we relied, in part, on facts 
available and, because the Government of the PRC did not act to the 
best of its ability to respond to the Department's requests for 
information, we applied an adverse inference in selecting from among 
the facts otherwise available. See sections 776(a) and (b) of the Act. 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Preliminary Decision Memorandum.
    For a full description of the methodology underlying the 
Department's conclusions, see Preliminary Decision Memorandum.

Preliminary Results of the Review

    As a result of this review, we preliminarily determine a net 
countervailable subsidy rate of 3.57 percent ad valorem for Shanxi Yida 
Special Steel Imp. & Exp. Co., Ltd. and its cross-owned affiliates 
Shanxi Yida Special Steel Group Co., Ltd. and Shanxi Yida Petroleum 
Equipment Manufacturing Co., Ltd. (collectively, the Yida Group), for 
the period January 1, 2013, through December 31, 2013.

Disclosure and Public Comment

    The Department intends to disclose to parties to this proceeding 
the calculations performed in reaching the preliminary results within 
five days of the date of publication of these preliminary results.\1\ 
Interested parties may submit written arguments (case briefs) within 30 
days of publication of the preliminary results and rebuttal comments 
(rebuttal briefs) within five days after the time limit for filing the 
case briefs.\2\ Pursuant to 19 CFR 351.309(d)(2), rebuttal briefs must 
be limited to issues raised in the case briefs. Parties who submit 
arguments are requested to submit with the argument: (1) Statement of 
the issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
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    \1\ See 19 CFR 351.224(b).
    \2\ See 19 CFR 351.309(c)(1)(ii) and 351.309(d)(1).
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    Interested parties, who wish to request a hearing, or to 
participate if one is requested, 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.\3\ Requests should contain the party's name, address, and 
telephone number, the number of participants, and a list of the issues 
to be discussed. If a request for a hearing is made, we will inform 
parties of the scheduled date for the hearing, which will be held at 
the U.S. Department of Commerce, 14th Street and Constitution Avenue 
NW., Washington, DC 20230, at a time and location to be determined.\4\ 
Parties should confirm by telephone the date, time, and location of the 
hearing.
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    \3\ See 19 CFR 351.310(c).
    \4\ See 19 CFR 351.310.
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    Parties are reminded that briefs and hearing requests are to be 
filed electronically using IA ACCESS and that electronically filed 
documents must be received successfully in their entirety by 5:00PM 
Eastern Time on the due date.
    Unless the deadline is extended pursuant to section 751(a)(3)(A) of 
the Act, the Department will issue the final results of this 
administrative review, including the results of our analysis of the 
issues raised by parties in their comments, within 120 days after 
issuance of these preliminary results.

Assessment Rates

    Consistent with section 751(a)(1) of the Act and 19 CFR 
351.212(b)(2), upon issuance of the final results, the Department shall 
determine, and U.S. Customs and Border Protection (CBP) shall assess, 
countervailing duties on all appropriate entries covered by this 
review. We intend to issue instructions to CBP 15 days after 
publication of the final results of this review.

Cash Deposit Requirements

    Also in accordance with section 751(a)(1) of the Act, the 
Department intends to instruct CBP to collect cash deposits of 
estimated countervailing duties in the amount shown above for the 
reviewed company should the final results remain the same as these 
preliminary results. For all non-reviewed firms, we will instruct CBP 
to collect cash deposits of estimated countervailing duties at the most 
recent company-specific or all-others rate applicable to the company. 
These cash deposit requirements, when imposed, shall remain in effect 
until further notice.
    These preliminary results of administrative review and notice are 
issued and published in accordance with sections 751(a)(1) and 
777(i)(1) of the Act and 19 CFR 351.213 and 351.221(b)(4).

    Dated: November 4, 2014.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix: List of Topics Discussed in the Preliminary Decision 
Memorandum

1. Summary
2. Background
3. Scope of the Order
4. Subsidy Valuation Information
5. Loan Benchmark Rates
6. Use of Facts Otherwise Available and Adverse Inferences
7. Analysis of Programs
    A. Program Preliminarily Determined To Be Countervailable
    Provision of Electricity for Less Than Adequate Remuneration 
(LTAR)
    B. Program Preliminarily Determined To Not Provide Benefits 
During the POR
    Central and Provincial Policy Lending to Chinese Drill Pipe 
Producers
    C. Programs Preliminarily Determined Not To Be Used
    <bullet> Export Loans From Policy Banks and State-Owned 
Commercial Banks
    <bullet> Treasury Bond Loans
    <bullet> Preferential Loans for State Owned Enterprises (SOEs)
    <bullet> Preferential Loans for Key Projects and Technologies
    <bullet> Preferential Lending To Drill Pipe Producers and 
Exporters Classified as Honorable Enterprises
    <bullet> Debt-to-Equity (D/E) Swaps
    <bullet> Loans and Interest Forgiveness for SOEs
    <bullet> Two Free, Three Half Tax Exemption for Foreign Invested 
Enterprises (FIEs) Exemption From City Construction Tax and 
Education Tax for FIEs
    <bullet> Local Income Tax Exemption and Reduction Programs for 
Productive FIEs Income Tax Reductions for Export-Oriented FIEs
    <bullet> Preferential Tax Programs for FIEs Recognized as High 
or New Technology Enterprises
    <bullet> Reduction In or Exemption From Fixed Assets Investment 
Orientation Regulatory Tax
    <bullet> Deed Tax Exemption for SOEs Undergoing Mergers or 
Restructuring
    <bullet> Income Tax Credits for Domestically-Owned Companies 
Purchasing Domestically-Produced Equipment

[[Page 67419]]

    <bullet> Import Tariff and Value-Added Tax (VAT) Exemptions for 
FIEs and Certain Domestic Enterprises Using Imported Equipment in 
Encouraged Industries
    <bullet> Export Incentive Payments Characterized as ``VAT 
Rebates''
    <bullet> VAT Rebates to Welfare Enterprises
    <bullet> Provision of Green Tubes for LTAR
    <bullet> Provision of Steel Rounds for LTAR
    <bullet> Provision of Hot-Rolled Steel for LTAR
    <bullet> Provision of Coking Coal for LTAR
    <bullet> Provision of Land-Use Rights Within Designated 
Geographical Areas for LTAR
    <bullet> Provision of Land to SOEs for LTAR
    <bullet> Provision of Electricity at LTAR To Drill Pipe 
Producers Located in Jiangsu Province
    <bullet> Provision of Water at LTAR To Drill Pipe Producers 
Located in Jiangsu Province
    <bullet> Technology To Improve Trade R&D Fund
    <bullet> Outstanding Growth Private Enterprise and Small and 
Medium-Sized Enterprises
    <bullet> Development in Jiangyin Fund
    <bullet> GOC and Sub-Central Government Grants, Loans, and Other 
Incentives for Development of Famous Brands and China World Top 
Brands
    <bullet> Scientific Innovation Award
    <bullet> Development Fund Grant
    <bullet> State Key Technology Project Fund
    <bullet> Export Assistance Grants
    <bullet> Programs To Rebate Antidumping Legal Fees
    <bullet> Grants and Tax Benefits to Loss-Making SOEs at National 
and Local Level
    <bullet> Subsidies Provided To Drill Pipe Producers Located in 
Economic and Technological Development Zones (ETDZs) in Tianjin 
Binhai New Area
    <bullet> Subsidies Provided To Drill Pipe Producers Located in 
ETDZs in Tianjin Economic and Technological Development Areas
    <bullet> Subsidies Provided To Drill Pipe Producers Located in 
High-Tech Industrial Development Zones
8. Conclusion

[FR Doc. 2014-26787 Filed 11-12-14; 8:45 am]
BILLING CODE 3510-DS-P