[Federal Register Volume 79, Number 138 (Friday, July 18, 2014)]
[Notices]
[Pages 41976-41978]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-16865]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-565-802]


Certain Oil Country Tubular Goods From the Republic of the 
Philippines: Final Determination of Sales at Less Than Fair Value and 
Negative Final Determination of Critical Circumstances

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

SUMMARY: The Department determines that imports of certain oil country 
tubular goods from the Republic of the Philippines are being, or likely 
to be, sold in the United States at less than fair value (LTFV), as 
provided in section 735 of the Tariff Act of 1930, as amended (the 
Act). The final weighted-average dumping margins of sales at LTFV are 
listed in the ``Final Determination'' section of this notice.

DATES: Effective Date: July 18, 2014.

FOR FURTHER INFORMATION CONTACT: Dmitry Vladimirov, AD/CVD Operations, 
Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
0665.

SUPPLEMENTARY INFORMATION:

Background

    On February 25, 2014, the Department published the Preliminary 
Determination in the Federal Register.\1\ In the Preliminary 
Determination, we postponed the final determination until no later than 
135 days after the publication of the Preliminary Determination in 
accordance with section 735(a)(2)(A) of the Act and 19 CFR 
351.210(b)(2)(ii) and invited parties to comment on our Preliminary 
Determination. We received case and rebuttal briefs from the 
petitioners \2\ and HLD Clark Steel Pipe Co., Inc. (HLD Clark) in May 
2014.\3\ On June 2, 2014, we conducted a hearing in this investigation.
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    \1\ See Certain Oil Country Tubular Goods From the Republic of 
the Philippines: Preliminary Affirmative Determination of Sales at 
Less Than Fair Value, Negative Preliminary Determination of Critical 
Circumstances, and Postponement of Final Determination, 79 FR 10491 
(February 25, 2014) (Preliminary Determination).
    \2\ 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. (collectively, the 
petitioners).
    \3\ On June 27, 2014, we placed certain new factual information 
on the record. On July 1, 2014, HLD Clark provided comments on this 
information.
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Period of Investigation

    The period of investigation is July 1, 2012, through June 30, 2013.

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 investigations 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,

[[Page 41977]]

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.

Analysis of the Comments Received

    All issues raised in the case briefs by parties to this 
investigation are addressed in the Issues and Decision Memorandum.\4\ A 
list of the issues which parties raised and to which we responded is in 
the Issues and Decision Memorandum and attached to this notice as an 
Appendix. 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 it is available to all parties in the Central 
Records Unit (CRU), room 7046 of the main Department of Commerce 
building. In addition, a complete version of the Issues and Decision 
Memorandum can be accessed directly on the internet 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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    \4\ See the memorandum from Deputy Assistant Secretary Christian 
Marsh to Acting Assistant Secretary Ronald K. Lorentzen entitled 
``Issues and Decision Memorandum for the Final Affirmative 
Determination in the Less than Fair Value Investigation of Certain 
Oil Country Tubular Goods from the Republic of the Philippines'' 
dated concurrently with this notice and hereby adopted by this 
notice (Issues and Decision Memorandum).
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received, pre-verification 
corrections, and our findings at verifications, we made certain changes 
to the margin calculations for HLD Clark.\5\
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    \5\ For a discussion of these changes, see Memorandum to Neal 
Halper entitled ``Cost of Production and Constructed Value 
Calculation Adjustments for the Final Determination--HLD Clark Steel 
Pipe Co. Inc.,'' dated concurrently with this notice and Memorandum 
to the File entitled ``Final Determination of Sales at Less Than 
Fair Value in the Antidumping Duty Investigation of Certain Oil 
Country Tubular Goods from the Republic of the Philippines--Analysis 
Memorandum for HLD Clark Steel Pipe Co., Inc.,'' dated concurrently 
with this notice.
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Verification

    As provided in section 782(i) of the Act, we conducted sales and 
cost verifications of the questionnaire responses submitted by HLD 
Clark. We used standard verification procedures, including examination 
of relevant accounting and production records, as well as original 
source documents provided by HLD Clark.\6\
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    \6\ See Memorandum to the File entitled ``Verification of the 
Sales Response of HLD Clark Steel Pipe Co., Inc., in the Less-Than-
Fair-Value Investigation of Certain Oil Country Tubular Goods from 
the Republic of the Philippines,'' dated April 10, 2014, and 
Memorandum to the File entitled ``Verification of the Cost Response 
of HLD Clark Steel Pipe Co., Inc. in the Antidumping Duty 
Investigation of Certain Oil Country Tubular Goods from the Republic 
of the Philippines,'' dated May 13, 2014.
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Final Determination

    The Department determines that the following dumping margins exist 
for the period July 1, 2012, through June 30, 2013:

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                  Exporter/manufacturer                       dumping
                                                              margin
                                                             (percent)
------------------------------------------------------------------------
HLD Clark Steel Pipe Co., Inc...........................            9.88
All Others..............................................            9.88
------------------------------------------------------------------------

Disclosure

    We will disclose the calculations performed within five days of the 
date of publication of this notice to parties in this proceeding in 
accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    Pursuant to section 735(c)(1)(B) of the Act, the Department will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all entries of certain oil country tubular goods 
from the Republic of the Philippines which were entered, or withdrawn 
from warehouse, for consumption on or after February 25, 2014, the date 
of publication of the Preliminary Determination. We will instruct CBP 
to require a cash deposit equal to the weighted-average amount by which 
normal value exceeds U.S. price, as follows: (1) The rate for HLD Clark 
will be the rate we determined in this final determination; (2) if the 
exporter is not a firm identified in this investigation but the 
producer is, the rate will be the rate established for the producer of 
the subject merchandise; (3) the rate for all other producers or 
exporters will be 9.88 percent, as discussed in the ``All Others Rate'' 
section, below. These suspension of liquidation instructions will 
remain in effect until further notice.

All Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated ``all 
others'' rate shall be an amount equal to the weighted average of the 
estimated weighted-average dumping margins established for exporters 
and producers individually investigated, excluding any zero or de 
minimis margins, and any margins determined entirely under section 776 
of the Act. The ``All Others'' rate is based on the weighted-average 
dumping margin calculated for HLD Clark, the only company for which the 
Department calculated a rate.\7\
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    \7\ See section 735(c)(5)(A) of the Act.
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U.S. International Trade Commission Notification

    In accordance with section 735(d) of the Act, we notified the U.S. 
International Trade Commission (ITC) of our final determination. As our 
final determination is affirmative, in accordance with section 
735(b)(2) of the Act, the ITC will determine within 45 days whether the 
domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports or sales (or the 
likelihood of sales) for importation of the subject merchandise. If the 
ITC determines that such injury exists, the Department will issue an 
antidumping duty order directing CBP to assess, upon further 
instruction by the Department, antidumping duties on all imports of the 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation.

Return or Destruction of Proprietary Information

    This notice will serve as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305. Timely written 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.

[[Page 41978]]

    We are issuing and publishing this determination and notice 
pursuant to sections 735(d) and 777(i)(l) of the Act.

    Dated: July 10, 2014.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Critical Circumstances
IV. Scope of the Investigation
V. Margin Calculations
VI. Discussion of the Issues
    1. Steel Grade Product Characteristic
    2. Differential Pricing Analysis
    3. Calculation of Short Term Borrowing Rate
VII. Recommendation

[FR Doc. 2014-16865 Filed 7-17-14; 8:45 am]
BILLING CODE 3510-DS-P