[Federal Register Volume 78, Number 209 (Tuesday, October 29, 2013)]
[Notices]
[Pages 64475-64477]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-25603]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-850]


Certain Large Diameter Carbon and Alloy Seamless Standard, Line, 
and Pressure Pipe (Over 4\1/2\ Inches) From Japan: Final Results of 
Antidumping Duty Administrative Review; 2011-2012

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

SUMMARY: On July 10, 2013, the Department of Commerce (the Department) 
published the preliminary results of the administrative review of the 
antidumping duty order on certain large diameter carbon and alloy 
seamless standard, line, and pressure pipe (over 4\1/2\ inches) from 
Japan. For these final results, we continue to find that no shipments 
were made by JFE Steel Corporation (JFE), Nippon Steel Corporation 
(Nippon), NKK Tubes (NKK), or Sumitomo Metal Industries, Ltd. (SMI), 
and that entries of subject merchandise made by Canadian Natural 
Resources Limited (CNRL) should be liquidated without regard to 
antidumping duties.

DATES: Effective Date: October 29, 2013.

FOR FURTHER INFORMATION CONTACT: Nancy Decker or Joshua Morris, AD/CVD 
Operations, Office 1, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
0196, and (202) 482-1779, respectively.

Background

    On July 10, 2013, the Department published the preliminary results 
of the administrative review of the antidumping duty order on certain 
large diameter carbon and alloy seamless standard, line, and pressure 
pipe (over 4\1/2\ inches) from Japan.\1\ We invited interested parties 
to comment on the Preliminary Results. We received no comments.
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    \1\ See Certain Large Diameter Carbon and Alloy Seamless 
Standard, Line, and Pressure Pipe (Over 4 [frac12] Inches) From 
Japan: Preliminary Results of Antidumping Duty Administrative 
Review; 2011-2012, 78 FR 41366 (July 10, 2013) and accompanying 
Decision Memorandum (Preliminary Results).
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    The Department has conducted this administrative review in 
accordance with section 751(a) of the Tariff Act of 1930, as amended 
(the Act).

Scope of the Order

    The products covered by the order are large diameter seamless 
carbon and alloy (other than stainless) steel standard, line, and 
pressure pipes produced, or equivalent, to the American Society for 
Testing and Materials (ASTM) A-53, ASTM A-106, ASTM A-333, ASTM A-334, 
ASTM A-589, ASTM A-795, and the American Petroleum Institute (API) 5L 
specifications and meeting the physical parameters described below, 
regardless of application. The scope of the order also includes all 
other products used in standard, line, or pressure pipe applications 
and meeting the physical parameters described below, regardless of 
specification, with the exception of the exclusions discussed below. 
Specifically included within the scope of the order are seamless pipes 
greater than 4.5 inches (114.3 mm) up to and including 16 inches (406.4 
mm) in outside diameter, regardless of wall-thickness, manufacturing 
process (hot finished or cold-drawn), end finish (plain end, beveled 
end, upset end, threaded, or threaded and coupled), or surface finish.
    The seamless pipes subject to the order are currently classifiable 
under the subheadings 7304.10.10.30, 7304.10.10.45, 7304.10.10.60, 
7304.10.50.50, 7304.19.10.30, 7304.19.10.45, 7304.19.10.60, 
7304.19.50.50, 7304.31.60.10, 7304.31.60.50, 7304.39.00.04, 
7304.39.00.06, 7304.39.00.08, 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, 7304.51.50.15, 
7304.51.50.45, 7304.51.50.60, 7304.59.20.30, 7304.59.20.55, 
7304.59.20.60, 7304.59.20.70, 7304.59.60.00, 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, and 7304.59.80.70 of the 
Harmonized Tariff Schedule of the United States (HTSUS).
    Specifications, Characteristics, and Uses: Large diameter seamless 
pipe is used primarily for line applications such as oil, gas, or water 
pipeline, or utility distribution systems. Seamless pressure pipes are 
intended for the conveyance of water, steam, petrochemicals, chemicals, 
oil products,

[[Page 64476]]

natural gas and other liquids and gasses in industrial piping systems. 
They may carry these substances at elevated pressures and temperatures 
and may be subject to the application of external heat. Seamless carbon 
steel pressure pipe meeting the ASTM A-106 standard may be used in 
temperatures of up to 1000 degrees Fahrenheit, at various American 
Society of Mechanical Engineers (ASME) code stress levels. Alloy pipes 
made to ASTM A-335 standard must be used if temperatures and stress 
levels exceed those allowed for ASTM A-106. Seamless pressure pipes 
sold in the United States are commonly produced to the ASTM A-106 
standard.
    Seamless standard pipes are most commonly produced to the ASTM A-53 
specification and generally are not intended for high temperature 
service. They are intended for the low temperature and pressure 
conveyance of water, steam, natural gas, air and other liquids and 
gasses in plumbing and heating systems, air conditioning units, 
automatic sprinkler systems, and other related uses. Standard pipes 
(depending on type and code) may carry liquids at elevated temperatures 
but must not exceed relevant ASME code requirements. If exceptionally 
low temperature uses or conditions are anticipated, standard pipe may 
be manufactured to ASTM A-333 or ASTM A-334 specifications.
    Seamless line pipes are intended for the conveyance of oil and 
natural gas or other fluids in pipe lines. Seamless line pipes are 
produced to the API 5L specification. Seamless water well pipe (ASTM A-
589) and seamless galvanized pipe for fire protection uses (ASTM A-795) 
are used for the conveyance of water.
    Seamless pipes are commonly produced and certified to meet ASTM A-
106, ASTM A-53, API 5L-B, and API 5L-X42 specifications. To avoid 
maintaining separate production runs and separate inventories, 
manufacturers typically triple or quadruple certify the pipes by 
meeting the metallurgical requirements and performing the required 
tests pursuant to the respective specifications. Since distributors 
sell the vast majority of this product, they can thereby maintain a 
single inventory to service all customers.
    The primary application of ASTM A-106 pressure pipes and triple or 
quadruple certified pipes in large diameters is for use as oil and gas 
distribution lines for commercial applications. A more minor 
application for large diameter seamless pipes is for use in pressure 
piping systems by refineries, petrochemical plants, and chemical 
plants, as well as in power generation plants and in some oil field 
uses (on shore and off shore) such as for separator lines, gathering 
lines and metering runs. These applications constitute the majority of 
the market for the subject seamless pipes. However, ASTM A-106 pipes 
may be used in some boiler applications.
    The scope of the order includes all seamless pipe meeting the 
physical parameters described above and produced to one of the 
specifications listed above, regardless of application, with the 
exception of the exclusions discussed below, whether or not also 
certified to a non-covered specification. Standard, line, and pressure 
applications and the above-listed specifications are defining 
characteristics of the scope of the order. Therefore, seamless pipes 
meeting the physical description above, but not produced to the ASTM A-
53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-589, ASTM A-795, and API 
5L specifications shall be covered if used in a standard, line, or 
pressure application, with the exception of the specific exclusions 
discussed below.
    For example, there are certain other ASTM specifications of pipe 
which, because of overlapping characteristics, could potentially be 
used in ASTM A-106 applications. These specifications generally include 
ASTM A-161, ASTM A-192, ASTM A-210, ASTM A-252, ASTM A-501, ASTM A-523, 
ASTM A-524, and ASTM A-618. When such pipes are used in a standard, 
line, or pressure pipe application, such products are covered by the 
scope of the order.
    Specifically excluded from the scope of the order are:
    A. Boiler tubing and mechanical tubing, if such products are not 
produced to ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-589, 
ASTM A-795, and API 5L specifications and are not used in standard, 
line, or pressure pipe applications.
    B. Finished and unfinished oil country tubular goods (OCTG), if 
covered by the scope of another antidumping duty order from the same 
country. If not covered by such an OCTG order, finished and unfinished 
OCTG are included in the scope when used in standard, line or pressure 
applications.
    C. Products produced to the A-335 specification unless they are 
used in an application that would normally utilize ASTM A-53, ASTM A-
106, ASTM A-333, ASTM A-334, ASTM A-589, ASTM A-795, and API 5L 
specifications.
    D. Line and riser pipe for deepwater application, i.e., line and 
riser pipe that is: (1) Used in a deepwater application, which means 
for use in water depths of 1,500 feet or more; (2) intended for use in 
and is actually used for a specific deepwater project; (3) rated for a 
specified minimum yield strength of not less than 60,000 psi; and (4) 
not identified or certified through the use of a monogram, stencil, or 
otherwise marked with an API specification (e.g., API 5L).
    With regard to the excluded products listed above, the Department 
will not instruct U.S. Customs and Border Protection (CBP) to require 
end-use certification until such time as petitioner or other interested 
parties provide to the Department a reasonable basis to believe or 
suspect that the products are being utilized in a covered application. 
If such information is provided, we will require end-use certification 
only for the product(s) (or specification(s)) for which evidence is 
provided that such products are being used in a covered application as 
described above. For example, if, based on evidence provided by 
petitioner, the Department finds a reasonable basis to believe or 
suspect that seamless pipe produced to the A-335 specification is being 
used in an A-106 application, we will require end-use certifications 
for imports of that specification. Normally we will require only the 
importer of record to certify to the end use of the imported 
merchandise. If it later proves necessary for adequate implementation, 
we may also require producers who export such products to the United 
States to provide such certification on invoices accompanying shipments 
to the United States.
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, our written description of the merchandise subject to 
the scope is dispositive.

Final Results of Review

    We have made no changes to our findings announced in the 
Preliminary Results. Consistent with our findings in the Preliminary 
Results,\2\ we find that JFE, Nippon, NKK, and SMI had no shipments for 
the period June 1, 2011, through May 31, 2012.
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    \2\ See Preliminary Results and accompanying Decision Memorandum 
at 6-8.
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    Also consistent with the Preliminary Results,\3\ we find that CNRL 
had no sales to unaffiliated customers in the United States, or to 
unaffiliated customers for exportation to the United States. Although 
CNRL entered subject

[[Page 64477]]

merchandise for consumption during the period of review (POR), the 
merchandise was not sold in any form, either in the form as entered or 
as further manufactured; it was exported back to CNRL in Canada. As a 
result, consistent with our decision in OCTG from Japan,\4\ antidumping 
duties would not be applied to CNRL's subject merchandise under current 
law and practice. Accordingly, we will instruct CBP to liquidate the 
entries at issue without regard to antidumping duties.
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    \3\ Id. at 8-13.
    \4\ In OCTG from Japan, the subject merchandise entered the 
United States under a temporary import bond. Upon re-exportation, 
pursuant to the North American Free Trade Agreement, the entries 
were treated as if they had entered the United States for 
consumption. The Department determined that the subject merchandise 
was not sold in any form, and liquidated without regard to duties. 
See Oil Country Tubular Goods From Japan: Preliminary Results and 
Rescission {sic{time}  in Part of Antidumping Duty Administrative 
Review, 64 FR 48589, 48590-91 (September 7, 1999) (OCTG from Japan).
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Assessment Rates

    Because we found that CNRL did not sell subject merchandise to an 
unaffiliated customer in the United States, or to unaffiliated 
customers for exportation to the United States, but exported all the 
subject merchandise back to CNRL in Canada we will instruct CBP to 
liquidate its entries covered by this review without regard to 
antidumping duties.
    The Department clarified its ``automatic assessment'' regulation on 
May 6, 2003. This clarification will apply to POR entries by JFE, 
Nippon, NKK, and SMI because these companies certified that they made 
no POR shipments of subject merchandise for which they had knowledge of 
U.S. destination and we are making a final determination of no 
shipments. We will instruct CBP to liquidate these entries at the all-
others rate established in the less-than-fair-value investigation 
(68.88 percent) if there is no rate for the intermediary involved in 
the transaction. For a full discussion of this clarification, see 
Antidumping and Countervailing Duty Proceedings: Assessment of 
Antidumping Duties, 68 FR 23954 (May 6, 2003).
    We intend to issue instructions to CBP 15 days after publication of 
the final results of this review.

Notifications

    This notice serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of doubled antidumping duties.
    This notice also serves as a reminder to parties subject to the 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely notification of the 
destruction of APO materials or conversion to judicial protective order 
is hereby requested. Failure to comply with the regulations and the 
terms of an APO is a sanctionable violation.
    We are issuing and publishing these results and this notice in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: October 23, 2013.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2013-25603 Filed 10-28-13; 8:45 am]
BILLING CODE 3510-DS-P