[Federal Register Volume 79, Number 248 (Monday, December 29, 2014)]
[Notices]
[Pages 78037-78038]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30384]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-965; C-570-966]


Drill Pipe From the People's Republic of China: Notice of Court 
Decision Not in Harmony With International Trade Commission's Injury 
Determination, Revocation of Antidumping and Countervailing Duty Orders 
Pursuant to Court Decision, and Discontinuation of Countervailing Duty 
Administrative Review

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

SUMMARY: On November 10, 2014, the Court of International Trade (CIT) 
entered its final judgment sustaining the International Trade 
Commission's (ITC) remand redetermination that imports of drill pipe 
from the People's Republic of China (PRC) do not materially injure or 
threaten to materially injure the United States domestic industry. As a 
result, we are notifying the public that this court decision is not in 
harmony with the ITC's original affirmative determination that the 
domestic industry was threatened with material injury by reason of 
imports of drill pipe from the PRC, and pursuant to the ITC's 
publication of its negative remand redetermination in the Federal 
Register, we are hereby revoking these orders.

DATES: Effective Date: November 20, 2014.

FOR FURTHER INFORMATION CONTACT: Julia Hancock or Kristen Johnson, AD/
CVD Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; Telephone: (202) 482-
1394 or (202) 482-4793, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On March 3, 2011, the Department of Commerce (the Department) 
published antidumping and countervailing duty orders on imports of 
drill pipe from the PRC, based, in part, on the final affirmative 
determination of the ITC that the domestic industry was threatened with 
material injury by reason of imports of drill pipe from the PRC.\1\
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    \1\ See Drill Pipe from the People's Republic of China: 
Antidumping Duty Order, 76 FR 11757 (March 3, 2011); Drill Pipe from 
the People's Republic of China: Countervailing Duty Order, 76 FR 
11758 (March 3, 2011); Drill Pipe and Drill Collars from China, 
Investigation Nos. 701-TA-474 and 731-TA-1176 (Final), USITC 
Publication 4213 (February 2011).

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[[Page 78038]]

    The respondent, Downhole Pipe, a Chinese producer of subject 
merchandise, subsequently challenged the ITC's final injury 
determination in Downhole Pipe v. United States, CIT No. 11-00080, and 
the ITC reversed its injury determination on remand, finding no 
material injury or threat thereof. On November 10, 2014, the CIT 
affirmed the ITC's remand and entered judgment in the case.\2\ 
Therefore, there is now a final CIT decision in the case sustaining the 
ITC's negative injury determination concerning drill pipe from the PRC. 
The November 10, 2014, decision by the CIT in Downhole Pipe constitutes 
a final CIT decision that is not in harmony with the ITC's original 
affirmative injury determination.
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    \2\ See Downhole Pipe v. United States, CIT No. 11-00080, Slip 
Op. 14-130 (November 10, 2014).
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Statutory Notice

    In its decision in Timken Co. v. United States, 893 F.2d 337, 341 
(Fed. Cir. 1990), the Court of Appeals for the Federal Circuit (CAFC) 
held that, pursuant to section 516A of the Tariff Act of 1930, as 
amended (the Act), the Department must publish a notice of a court 
decision that is not ``in harmony'' with an ITC determination and must 
suspend liquidation of entries pending a ``conclusive'' court 
decision.\3\ The November 10, 2014, decision by the CIT in Downhole 
Pipe constitutes a final CIT decision that is not in harmony with the 
ITC's original affirmative injury determination on drill pipe from the 
PRC. Thus, this notice is published in fulfillment of the publication 
requirement in Timken and section 516A of the Act.
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    \3\ See sections 516A(c)(1) and (e) of the Act.
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    Accordingly, the Department intends to issue instructions to U.S. 
Customs and Border Protection (CBP) to suspend liquidation of all 
unliquidated entries of subject merchandise which are entered, or 
withdrawn from warehouse, for consumption after November 20, 2014, 
which is ten days after the court's decision in accordance with section 
516A of the Act. Pursuant to Timken, all entries entered, or withdrawn 
from warehouse, for consumption after November 20, 2014, that remains 
unliquidated, will be suspended during the pendency of the appeals 
process so that they may be liquidated in accordance with the 
``conclusive'' court decision.

Revocation of the Antidumping and Countervailing Duty Orders and 
Discontinuation of Countervailing Duty Administrative Review

    The ITC published notice of its negative determination in the 
Federal Register, pursuant to sections 705(d) and 735(d) of the Tariff 
Act of 1930, as amended (the Act).\4\ See International Trade 
Commission, Investigation Nos. 701-TA-474 and 731-TA-1176 (Final 
Remand): Drill Pipe and Drill Collars from China, 79 FR 75592 (December 
18, 2014); sections 705(d) and 735(d) of the Act (``. . . the 
Commission . . . shall publish notice of its determination in the 
Federal Register.'').
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    \4\ See Diamond Sawblades Mfrs. Coalition v. United States, 626 
F.3d 1374, 1381-82 (Fed. Cir. 2010).
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    Pursuant to sections 705(c)(2) and 735(c)(2) of the Act, ``the 
investigation shall be terminated upon publication of that negative 
determination'' and the Department shall ``terminate the suspension of 
liquidation'' and ``release any bond or other security, and refund any 
cash deposit.'' Sections 705(c)(2)(A) and (B) of the Act; sections 
735(c)(2)(A) and (B) of the Act. As a result of the ITC's publication, 
the Department is hereby revoking the antidumping and countervailing 
duty orders and releasing any bonds or other security and refunding 
cash deposits.
    While sections 705(c)(2)(A) and 735(c)(2)(A) of the Act instruct 
the Department to terminate suspension of liquidation, here, because 
suspension of liquidation must continue during the pendency of the 
appeals process (in accordance with Timken and as discussed above), we 
will instruct CBP at this time to (A) continue suspension at a cash 
deposit rate of 0.0 percent until instructed otherwise; and (B) release 
any bond or other security, and refund any cash deposit made pursuant 
to Drill Pipe from the People's Republic of China: Antidumping Duty 
Order, 76 FR 11757 (March 3, 2011); Drill Pipe from the People's 
Republic of China: Countervailing Duty Order, 76 FR 11758 (March 3, 
2011). In the event the court's ruling in Downhole Pipe is not 
appealed, or if appealed and upheld by the CAFC, the Department will 
instruct CBP to terminate the suspension of liquidation and to 
liquidate those entries of subject merchandise without regard to 
antidumping or countervailing duties. Notwithstanding the continued 
suspension described above, the antidumping and countervailing duty 
orders on drill pipe from the PRC are hereby revoked. As a result of 
this revocation, the Department is discontinuing the ongoing 
administrative review of the countervailing duty order covering the 
period January 1, 2013, through December 31, 2013,\5\ and will not 
initiate any new administrative reviews of the antidumping and 
countervailing duty orders.
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    \5\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews and Request for Revocation in Part, 79 FR 
24398 (April 30, 2014). The Department received a request to conduct 
a countervailing duty administrative review from Shanxi Yida Special 
Steel Imp. & Exp. Co., Ltd., a Chinese exporter of drill pipe.
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    This notice is published pursuant to section 516A of the Act. See 
sections 516A(c)(1) and (e).

    Dated: December 18, 2014.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2014-30384 Filed 12-24-14; 8:45 am]
BILLING CODE 3510-DS-P