[Federal Register Volume 79, Number 138 (Friday, July 18, 2014)]
[Notices]
[Pages 41967-41969]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-16859]
[[Page 41967]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-858]
Certain Oil Country Tubular Goods From India: Final Affirmative
Countervailing Duty Determination and Partial Final Affirmative
Determination of Critical Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that
countervailable subsidies are being provided to producers and exporters
of certain oil country tubular goods (OCTG) from India. For information
on the estimated subsidy rates, see the ``Suspension of Liquidation''
section of this notice.
DATES: Effective Date: July 18, 2014.
FOR FURTHER INFORMATION CONTACT: Myrna Lobo, Elfi Blum or Lingjun Wang,
AD/CVD Operations, Office VII, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue NW., Washington, DC 20230; telephone:
(202) 482-2371, (202) 482-0197, and (202) 482-2316, respectively.
SUPPLEMENTARY INFORMATION:
Background
The petitioners in this investigation are United States Steel
Corporation, Maverick Tube Corporation, Boomerang Tube, Energex Tube, a
division of JMC Steel Group, Northwest Pipe Company, Tejas Tubular
Products, TMK IPSCO, Vallourec Star, L.P., and Welded Tube USA Inc.
This investigation covers 64 government programs. In addition to the
Government of India (GOI), the mandatory respondents in this
investigation are: (1) GVN Fuels Limited and its cross-owned producers
Maharashtra Seamless Limited and Jindal Pipes Limited (GVN/MSL/JPL);
and (2) Jindal SAW Limited (Jindal SAW). The period of investigation
for which we are measuring subsidies is January 1, 2012, through
December 31, 2012.
Case History
The events that have occurred since the Department published the
Preliminary Determination \1\ on December 23, 2013 and the Preliminary
Determination of Critical Circumstances \2\ on January 27, 2014, are
discussed in the Issues and Decision Memorandum.\3\ The Issues and
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 is
available to all parties in the Central Records Unit, room 7046 of the
main Department of Commerce building. In addition, a complete version
of the Issues and Decision Memorandum can be accessed directly at
http://enforcement.trade.gov/frn/. The signed Issues and Decision
Memorandum and the electronic versions of the Issues and Decision
Memorandum are identical in content.
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\1\ See Certain Oil Country Tubular Goods From India:
Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination with Final Antidumping
Determination, 78 FR 77421 (December 23, 2013) (Preliminary
Determination).
\2\ See Certain Oil Country Tubular Goods from India and Turkey:
Preliminary Determination of Critical Circumstances in the
Countervailing Duty Investigations, 79 FR 4333 (January 27, 2014)
(Preliminary Determination of Critical Circumstances)
\3\ See Memorandum from Christian Marsh, Deputy Assistant
Secretary for Antidumping and Countervailing Duty Operations, to
Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and
Compliance regarding ``Issues and Decision Memorandum for the Final
Determination in the Countervailing Duty Investigation of Certain
Oil Country Tubular Goods from India,'' dated concurrently with this
notice (Issues and Decision Memorandum).
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Scope of the Investigation
The merchandise covered by the investigation is certain oil country
tubular goods (OCTG), which are hollow steel 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 investigation also
covers OCTG coupling stock. For a complete description of the scope of
the investigation, see Appendix I to this notice.
Critical Circumstances
In our Preliminary Determination of Critical Circumstances, we
determined that critical circumstances exist with respect to Jindal
SAW, but do not exist with respect to imports from GVN/MSL/JPL and
``all other'' exporters of OCTG from India.\4\ Our analysis for the
final determination indicates that critical circumstances continue to
exist for imports from Jindal SAW. In addition, we determine that
critical circumstances exist for imports from ``all other'' producers
and exporters from India. We continue to find that critical
circumstances do not exist with respect to imports from GVN/MSL/JPL.
Therefore, in accordance with section 705(a)(2) of the Tariff Act of
1930, as amended (the Act), we determine that critical circumstances
exist with respect to imports from Jindal SAW and ``all other''
exporters of OCTG from India. We determine that critical circumstances
do not exist with respect to GVN/MSL/JPL.
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\4\ See Certain Oil Country Tubular Goods From India and Turkey:
Preliminary Determination of Critical Circumstances in the
Countervailing Duty Investigations, 79 FR 4333 (January 27, 2014)
(Preliminary Determination of Critical Circumstances).
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Issues and Decision Memorandum, which is hereby
adopted by this notice. A list of the subsidy programs and issues that
parties have raised, and to which we responded in the Issues and
Decision Memorandum, is attached to this notice as Appendix II.
Use of Facts Otherwise Available, Including Adverse Inferences
For the purposes of this final determination, we relied on facts
available and in certain instances have applied an adverse inference
(AFA) in accordance with sections 776(a) and (b) of the Act, with
regard to the following programs: Advance License Program/Advance
Authorization Program, Export Promotion Capital Goods Program, Pre-
Shipment and Post-Shipment Export Financing, Provision of Hot-Rolled
Steel by the Steel Authority of India, Ltd. at Less Than Adequate
Remuneration, State Government of Maharashtra Sales Tax Program, and
Duty Drawback. A full discussion of our decision to apply AFA is
presented in the Decision Memorandum under the section ``Use of Facts
Otherwise Available and Adverse Inferences.''
Suspension of Liquidation
In accordance with section 705(c)(1)(B)(i) of the Act, we
calculated
[[Page 41968]]
a rate for each company respondent.\5\ Section 705(c)(5)(A)(i) of the
Act states that for companies not individually investigated, we will
determine an ``all others'' rate equal to the weighted average
countervailable subsidy rates established for exporters and producers
individually investigated, excluding any zero and de minimis
countervailable subsidy rates, and any rates determined entirely under
section 776 of the Act. Because we are unable to calculate a weighted
average rate, we calculated a simple average of the two respondents
rates as the ``all others'' rate.
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\5\ See Memoranda to the File, ``Final Determination Calculation
Memorandum for GVN/MSL/JPL,'' and ``Final Determination Calculation
Memorandum for Jindal SAW,'' (Final Calculation Memoranda).
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We determine the total estimated net countervailable subsidy rates
to be:
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Subsidy rate
Company (percent)
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GVN Fuels Limited/Maharashtra Seamless Limited/Jindal 5.67
Pipes Limited..........................................
Jindal SAW Limited...................................... 19.11
All Others.............................................. 12.39
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As a result of our Preliminary Determination and pursuant to
section 703(d) of the Act, we instructed U.S. Customs and Border
Protection (CBP) to suspend liquidation of all entries of subject
merchandise from India, other than those produced/exported by Jindal
SAW which received a de minimis countervailable subsidy rate in the
Preliminary Determination, entered or withdrawn from warehouse, for
consumption on or after December 23, 2013, the date of the publication
of the Preliminary Determination in the Federal Register.
In accordance with section 703(d) of the Act, we subsequently
issued instructions to CBP to discontinue the suspension of liquidation
for CVD purposes for subject merchandise entered, or withdrawn from
warehouse, on or after April 22, 2014, but to continue the suspension
of liquidation of all entries, excepting Jindal SAW, from December 23,
2013, through April 21, 2014.
The Department determines that critical circumstances exist with
respect to imports of subject merchandise from Jindal SAW and ``all
other'' companies.\6\ Consistent with sections 705(c)(1)(C) and
705(c)(4)(C) of the Act, because provisional measures are not in effect
for Jindal SAW, we will begin the suspension of liquidation for Jindal
SAW, and require a cash deposit for such entries of merchandise in the
amount indicated above, with effect from 90 days prior to the date of
publication of the final determination in the Federal Register. If the
U.S. International Trade Commission (ITC) issues a final affirmative
injury determination, we will issue a countervailing duty (CVD) order
and reinstate the suspension of liquidation for GVN/MSL/JPL and ``all
other'' companies, and require a cash deposit for such entries of
merchandise in the amounts indicated above. As a result of the critical
circumstances determination for ``all other'' companies, consistent
with section 705(c)(4)(B) of the Act, we will order CBP to suspend
liquidation and require a cash deposit effective September 24, 2013,
which is 90 days prior to the publication of the Preliminary
Determination. If the ITC determines that material injury, or threat of
material injury, does not exist, this proceeding will be terminated and
all estimated duties deposited or securities posted as a result of the
suspension of liquidation will be refunded or canceled.
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\6\ The Department made a negative critical circumstances
determination with respect to GVN/MSL/JPL.
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ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary information related to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Enforcement and Compliance.
Return or Destruction of Proprietary Information
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return/destruction of
APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act.
Dated: July 10, 2014.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by the investigation is certain oil
country tubular goods (``OCTG''), which are hollow steel 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 investigation also covers OCTG coupling stock.
Excluded from the scope of the investigation 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 the investigation 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 merchandise subject to the investigation 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, 7304.59.80.80, 7305.31.40.00,
7305.31.60.90, 7306.30.50.55, 7306.30.50.90, 7306.50.50.50, and
7306.50.50.70.
The HTSUS subheadings above are provided for convenience and
customs purposes only. The written description of the scope of the
investigation is dispositive.
Appendix II
Issues and Decision Memorandum
I. Summary
II. Background
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III. Critical Circumstances
IV. Subsidies Valuation Information
A. Period of Investigation
B. Allocation Period
C. Cross-Ownership and Attribution of Subsidies
D. Denominators
E. Benchmarks and Discount Rates
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Analysis of Programs
A. Programs Determined To Be Countervailable
B. Programs Determined To Be Not Used or Not To Confer a Benefit
During the POI
C. Programs Determined Not To Exist
D. Programs Determined To Be Terminated
E. Programs Determined To Be Not Countervailable
VII. Analysis of Comments
Comment 1: Whether Adverse Inferences Are Warranted When Determining
the POI Value of Jindal SAW's Company-Wide Sales and Company-Wide
Export Sales
Comment 2: Whether the Appropriate Financial Statements Were Used in
Calculating Jindal SAW's Sales Value and Denominator
Comment 3: Whether MSL's Reported Sales Values Should Be Adjusted
Comment 4: Whether Certain Sales Should Be Excluded From the Value
of GVN's Export Sales
Comment 5: Whether the Denominator Used To Calculate Jindal SAW's Ad
Valorem Subsidy Rate for the Duty Drawback Scheme Should Be Revised
Comment 6: Whether Deemed Exports Should Be Included in the
Denominator When Calculating the Subsidy Rates for Duty Drawback or
Other Programs
Comment 7: Whether the Advance Authorization Scheme Is an
Countervailable Subsidy
Comment 8: Whether Jindal SAW's Reported Benefits Under the Advance
Authorization Program (AAP) are Countervailable
Comment 9: Whether AFA Is Warranted When Countervailing Jindal SAW's
Use of the Advance Authorization Program (AAP)
Comment 10: Whether Jindal SAW's Pre- and Post-Shipment Financing Is
Countervailable Because It Is Based on Commercial Loans
Comment 11: Whether Jindal SAW's EPCG Benefits Received by Divisions
Producing Non-OCTG Products Are Countervailable
Comment 12: Whether Benefits Received by Jindal SAW Under the Focus
Product Scheme Should Be Countervailed
Comment 13: Whether Benefits Received by Jindal SAW Under the Export
Oriented Unit (EOU) Scheme Should Be Countervailed
Comment 14: Whether Provisional Measures Should Be Applied to Jindal
SAW's Imports of Subject Merchandise
Comment 15: Whether the SGUP Entry Tax Is a Countervailable Subsidy
Comment 16: Whether the SGOM PSI-2007 or PSI-1988 Are
Countervailable Subsidies
Comment 17: Whether the Provision of Hot-Rolled Steel by the Steel
Authority (SAIL) of India Is a Countervailable Subsidy
Comment 18: Whether To Adjust Benchmark and Freight in the Subsidy
Rate Calculation for Hot-Rolled Coil From SAIL at Less Than Adequate
Remuneration
Comment 19: Whether the Benefit Calculation for the SGOM Sales Tax
Deferral Program Is Incorrect
[FR Doc. 2014-16859 Filed 7-17-14; 8:45 am]
BILLING CODE 3510-DS-P