[Federal Register Volume 79, Number 138 (Friday, July 18, 2014)]
[Notices]
[Pages 41986-41987]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-16867]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-517-804]
Certain Oil Country Tubular Goods From Saudi Arabia: Final
Determination of Sales at Less Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that
imports of oil country tubular goods (OCTG) from Saudi Arabia are
being, or likely to be, sold in the United States at less than fair
value, as provided in section 735 of the Tariff Act of 1930, as amended
(the Act). The final weighted-average dumping margins are listed below
in the section entitled ``Final Determination Margins.''
DATES: Effective Date: July 18, 2014.
FOR FURTHER INFORMATION CONTACT: Jason Rhoads, 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-
0123.
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 the respondent. On June 12, 2014, we conducted a
hearing in this investigation.
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\1\ See Certain Oil Country Tubular Goods From Saudi Arabia:
Preliminary Determination of Sales at Less Than Fair Value, and
Postponement of Final Determination, 79 FR 10489 (February 25, 2014)
(Preliminary Determination).
\2\ Boomerang Tube, Energex Tube, a division of JMC Steel Group,
Northwest Pipe Company, Tejas Tubular Products, TMK IPSCO, and
Welded Tube USA Inc. (collectively, the petitioners).
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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 this 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.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties in
this investigation are addressed in the Issues and Decision Memorandum
\3\ which is hereby adopted by this notice. A list of the issues raised
is attached to this notice as Appendix II. 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, 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 and electronic versions
of the Issues and Decision Memorandum are identical in content.
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\3\ See Memorandum to Ronald K. Lorentzen, Acting Assistant
Secretary for Enforcement and Compliance, ``Issues and Decision
Memorandum for the Final Affirmative Determination in the Less than
Fair Value Investigation of Certain Oil Country Tubular Goods from
Saudi Arabia'' (Issues and Decision Memorandum), which is dated
concurrently with and hereby adopted by this notice.
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Changes Since the Preliminary Determination
Based on our analysis of the comments received and our findings at
verification, we made certain changes to the margin calculations. For a
discussion of these changes, see the ``Margin Calculations'' section of
the Issues and Decision Memorandum.
Verification
As provided in section 782(i) of the Act, in March and April, 2014,
we verified the sales and cost information submitted by JESCO for use
in our final determination. We used standard verification procedures
including an examination of relevant accounting and production records,
and original source documents provided by JESCO.\4\
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\4\ See the memoranda, ``Verification of the Sales Response of
Duferco Steel Inc. in the Antidumping Duty Investigation of Oil
Country Tubular Goods (OCTG) from the Kingdom of Saudi Arabia,'' May
16, 2014; ``Verification of the Sales Response of Jubail Energy
Services Company (JESCO) in the Antidumping Duty Investigation of
Oil Country Tubular Goods (OCTG) from the Kingdom of Saudi Arabia,''
May 16, 2014; and ``Verification of the Cost Response of Jubail
Energy Services Company (JESCO) in the Antidumping Duty
Investigation of Oil Country Tubular Goods from Saudi Arabia,'' May
6, 2014.
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Final Determination Margins
The weighted-average dumping margins are as follows:
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Weighted-
average
Exporter or producer dumping
margin
(percent)
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Jubail Energy Services Company............................. 2.69
All Others................................................. 2.69
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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
weighted-average dumping margins calculated for the producers or
exporters individually examined, excluding rates that are zero, de
minimis or determined entirely under section 776 of the Act. Because we
calculated a weighted-average dumping margin for only one of the
mandatory respondents (JESCO) that
[[Page 41987]]
was not zero, de minimis or determined entirely under section 776 of
the Act, we assigned to all other producers and exporters the rate
calculated for JESCO.
Disclosure
We intend to 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).
Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, we will
instruct U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation on all entries of OCTG from Saudi Arabia. We will
also instruct CBP to require cash deposits equal to the amounts as
indicated above. These instructions suspending liquidation will remain
in effect until further notice.
International Trade Commission Notification
In accordance with section 735(d) of the Act, we will notify the
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 does exist, 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. 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
This notice will serve as the only reminder to parties subject to
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 return/destruction or 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 this determination and notice in
accordance with sections 735(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
List of Topics Discussed in the Issues and Decision Memorandum
1. Summary
2. Background
3. Scope of the Investigation
4. Margin Calculations
5. Discussion of the Issues
a. JESCO's Affiliations in Saudi Arabia
b. The Department's use of Third Country Sales Data for
Calculation of Normal Value
c. The Department's use of Differential Pricing (DP) in this
Investigation
d. The Department's Calculation of Constructed Value (CV) Profit
e. The Department's Application of a Scrap Offset to JESCO's
Sales Data
6. Recommendation
[FR Doc. 2014-16867 Filed 7-17-14; 8:45 am]
BILLING CODE 3510-DS-P