[Federal Register Volume 74, Number 14 (Friday, January 23, 2009)]
[Notices]
[Pages 4136-4138]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-1446]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-936]>


Circular Welded Carbon Quality Steel Line Pipe from the People's 
Republic of China: Notice of Amended Final Affirmative Countervailing 
Duty Determination and Notice of 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

[[Page 4137]]

circular welded carbon quality steel line pipe (line pipe) from the 
People's Republic of China (PRC). On January 7, 2009, the ITC notified 
the Department of its affirmative determination of material injury to a 
U.S. industry. See Circular Welded Carbon Quality Steel Line Pipe from 
China, USITC Pub. 4055, Inv. Nos. 701-TA-455 (Final) (January 2009).

EFFECTIVE DATE: January 23, 2009.

FOR FURTHER INFORMATION CONTACT: John Conniff, AD/CVD Operations, 
Office 3, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230; telephone: (202) 482-1009.

SUPPLEMENTARY INFORMATION:

Case History

    On November 24, 2008, the Department published its final 
determination in the countervailing duty investigation of line pipe 
from the PRC. See Circular Welded Carbon Quality Steel Line Pipe from 
the People's Republic of China: Final Affirmative Countervailing Duty 
Determination, 73 FR 70961 (November 24, 2008) (Final Determination).
    On January 7, 2009, the ITC notified the Department of its final 
determination pursuant to sections 705(b) (1) (A) (i) and 735(b) (1) 
(A) (i) of the Tariff Act of 1930, as amended (the Act), that an 
industry in the United States is materially injured by reason of 
subsidized imports of subject merchandise from the PRC. See Circular 
Welded Carbon Quality Steel Line Pipe from China, USITC Pub. 4055, Inv. 
Nos. 701-TA-455 (Final) (January 2009).

Scope of Order

    The merchandise covered by this order is circular welded carbon 
quality steel pipe of a kind used for oil and gas pipelines (welded 
line pipe), not more than 406.4 mm (16 inches) in outside diameter, 
regardless of wall thickness, length, surface finish, end finish or 
stenciling.
    The term ``carbon quality steel'' includes both carbon steel and 
carbon steel mixed with small amounts of alloying elements that may 
exceed the individual weight limits for non alloy steels imposed in the 
Harmonized Tariff Schedule of the United States (HTSUS). Specifically, 
the term ``carbon quality'' includes products in which (1) iron 
predominates by weight over each of the other contained elements, (2) 
the carbon content is 2 percent or less by weight and (3) none of the 
elements listed below exceeds the quantity by weight respectively 
indicated:
(i) 2.00 percent of manganese,
(ii) 2.25 percent of silicon,
(iii) 1.00 percent of copper,
(iv) 0.50 percent of aluminum,
(v) 1.25 percent of chromium,
(vi) 0.30 percent of cobalt,
(vii) 0.40 percent of lead,
(viii) 1.25 percent of nickel,
(ix) 0.30 percent of tungsten,
(x) 0.012 percent of boron,
(xi) 0.50 percent of molybdenum,
(xii) 0.15 percent of niobium,
(xiii) 0.41 percent of titanium,
(xiv) 0.15 percent of vanadium, or
(xv) 0.15 percent of zirconium.
    Welded line pipe is normally produced to specifications published 
by the American Petroleum Institute (API) (or comparable foreign 
specifications) including API A-25, 5LA, 5LB, and X grades from 42 and 
above, and/or any other proprietary grades or non-graded material. 
Nevertheless, all pipe meeting the physical description set forth above 
that is of a kind used in oil and gas pipelines, including all 
multiple-stenciled pipe with an API welded line pipe stencil is covered 
by the scope of this order.
    Excluded from this scope are pipes of a kind used for oil and gas 
pipelines that are multiple-stenciled to a standard and/or structural 
specification and have one or more of the following characteristics: is 
32 feet in length or less; is less than 2.0 inches (50 mm) in outside 
diameter; has a galvanized and/or painted surface finish; or has a 
threaded and/or coupled end finish. (The term ``painted'' does not 
include coatings to inhibit rust in transit, such as varnish, but 
includes coatings such as polyester.)
    The welded line pipe products that are the subject of this order 
are currently classifiable in the HTSUS under subheadings 
7306.19.10.10, 7306.19.10.50, 7306.19.51.10, and 7306.19.51.50. While 
HTSUS subheadings are provided for convenience and customs purposes, 
the written description of the scope of this order is dispositive.

Amendment to the Final Determination

    In accordance with sections 705(d) and 777(i) (1) of the Act, on 
November 24, 2008, the Department published its notice of final 
affirmative countervailing duty determination in the countervailing 
duty investigation of line pipe from the PRC. See Final Determination. 
On December 1, 2008, Maverick Tube Corporation (Maverick), one of the 
two petitioners in the investigation, and (Huludao Seven Star Group), 
Huludao Steel Pipe Industrial Co. Ltd. (Huludao Steel Pipe), and 
Huludao Bohai Oil Pipe Industrial Co. Ltd. (Huludao Bohai), the 
respondent, (collectively, Huludao) submitted timely ministerial error 
allegations with respect to the Final Determination. On December 5, 
2008, Maverick submitted rebuttal comments to the respondent's 
ministerial error allegation and on December 8, 2008, United States 
Steel Corporation, the other petitioner in the investigation 
(collectively petitioners), also submitted comments regarding 
respondent's ministerial error allegations.
    In accordance with 19 CFR 351.224(e), on January 12, 2009, the 
Department issued its Ministerial Error Correction Memo addressing the 
parties' ministerial error allegations. As discussed in the memorandum, 
the Department accepted some of the allegations as ministerial errors 
and stated that it would make those corrections by amending the Final 
Determination. See Memorandum to Stephen J. Claeys, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, from 
Melissa G. Skinner, Director, Office 3 Operations, regarding ``Final 
Determination Ministerial Error Allegations'' (January 12, 2009) 
(Ministerial Error Memorandum).
    After analyzing all interested party comments and rebuttals, we 
have determined, in accordance with 19 CFR 351.224 (e), that we made 
ministerial errors in our calculations performed for the final 
determination. As a result of correcting for these errors, the 
countervailing duty calculated for the Huludao Companies has changed 
from 35.63 percent to 31.29 percent. There was no change to the 
countervailing duty calculated for Liaoning Northern Steel Pipe Co., 
Ltd.
    Section 705(c)(5)(A) of the Act states that for companies not 
investigated, we will determine an all-others rate by weighting the 
individual company subsidy rate of each of the companies investigated 
by each company's exports of the subject merchandise to the United 
States. The all-others rate may not include zero and de minimis net 
subsidy rates, or any rates based solely on the facts available. 
Notwithstanding the language of section 705(c)(1)(B)(i)(I) of the Act, 
we have not calculated the all-others rate by weight averaging the 
rates of the Huludao Companies and Northern Steel because doing so 
risks disclosure of proprietary information. Therefore, for the all-
others rate, we have calculated a simple average of the two responding 
firms' rates. In accordance with 19 CFR 351.224 (e), we are amending 
the subsidy rates of line pipe from the PRC. The revised subsidy rates 
are listed in the chart below.

[[Page 4138]]



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                                                        Original Net Subsidy Rate     Amended Net Subsidy Rate
----------------------------------------------------------------------------------------------------------------
Huludao Companies...................................                        35.63%                        31.29%
Liaoning Northern Steel Pipe Co., Ltd...............                        40.05%                   (no change)
All Others Rate.....................................                        37.84%                        35.67%
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Countervailing Duty Order

    On January 7, 2009, in accordance with section 705(d) of the Act, 
the ITC notified the Department of its final determination that the 
industry in the United States producing line pipe is materially injured 
within the meaning of section 705(b) (1)(A)(i) of the Act by reason of 
subsidized imports of line pipe from the PRC. Therefore, countervailing 
duties will be assessed on all unliquidated entries of line pipe from 
the PRC entered or withdrawn from warehouse, for consumption, on or 
after September 9, 2008, the date on which the Department published its 
preliminary affirmative countervailing duty determination in the 
Federal Register. See Circular Welded Line Pipe from the People's 
Republic of China: Preliminary Affirmative Countervailing Duty 
Determination, 73 FR 52297 (September 9, 2008).
    In accordance with section 706 of the Act, the Department will 
direct CBP to continue to suspend liquidation, effective the date of 
publication of this order in the Federal Register and to assess, upon 
further advice by the Department pursuant to section 706(a)(1) of the 
Act, countervailing duties for each entry of the subject merchandise in 
an amount based on the amended net countervailable subsidy rates for 
the subject merchandise as noted above. Further, with respect to 
Huludao, we are directing CBP to require a cash deposit for such 
entries of subject merchandise in the amount indicated above that are 
entered, or withdrawn from warehouse, for consumption on or after the 
publication date of this amended final determination in the Federal 
Register. We are further directing CBP to grant a refund for any over 
collection on entries entered, or withdrawn from warehouse, for 
consumption on or after the publication date of the Final Determination 
and on or before the publication date of the amended final 
determination and order in the Federal Register, provided the importer 
makes such a request pursuant to 19 USC Sec.  1520(a)(4).
    Regarding the rate applied to all other companies not individually 
investigated for the amended final, we are directing CBP to require a 
cash deposit for such entries of subject merchandise in the amount 
indicated above that are entered, or withdrawn from warehouse, for 
consumption on or after the publication date of the amended final 
determination in the Federal Register. We are further directing CBP to 
grant a refund for any over collection on entries entered, or withdrawn 
from warehouse, for consumption on or after the publication date of the 
Final Determination and on or before the publication date of the 
amended final determination in the Federal Register, provided the 
importer makes such a request pursuant to 19 USC Sec.  1520(a)(4).
    This notice constitutes the countervailing duty order with respect 
to line pipe 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 
736(a) of the Act, 19 CFR 351.211(b) and 19 CFR 351.224(e).

    Dated: January 14, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.
[FR Doc. E9-1446 Filed 1-22-09; 8:45 am]
BILLING CODE 3510-DS-S