[Federal Register Volume 79, Number 138 (Friday, July 18, 2014)]
[Notices]
[Pages 41971-41973]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-16873]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-489-816]
Certain Oil Country Tubular Goods From the Republic of Turkey:
Final Determination of Sales at Less Than Fair Value and Affirmative
Final Determination of Critical Circumstances, in Part
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that
imports of certain oil country tubular goods (OCTG) from the Republic
of Turkey 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: Catherine Cartsos, 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-
1757.
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 (e) and invited parties to comment on our
Preliminary Determination. We received case and rebuttal briefs from
Maverick (one of the petitioners),\2\ [Ccedil]ayirova Boru Sanayi ve
Ticaret A.[Scedil]. and Y[uuml]cel Boru Ithalat-Ihracat ve Pazarlama
A.[Scedil]. (collectively Y[uuml]cel), and a rebuttal brief from
Borusan Mannesmann Boru Sanayi ve Ticaret and Borusan Istikbal Ticaret
(collectively Borusan) in May and June 2014. On June 13, 2014, we
conducted a hearing in this investigation.
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\1\ See Certain Oil Country Tubular Goods From the Republic of
Turkey: Preliminary Affirmative Determination of Sales at Less Than
Fair Value, Negative Preliminary Determination of Critical
Circumstances, and Postponement of Final Determination, 79 FR 10484
(February 25, 2014) (Preliminary Determination) and accompanying
Preliminary Decision Memorandum.
\2\ Boomerang Tube, Energex Tube, a division of JMC Steel Group,
Maverick Tube Corporation (Maverick), Northwest Pipe Company, Tejas
Tubular Products, TMK IPSCO, United States Steel Corporation,
Vallourec Star, L.P., 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 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,
[[Page 41972]]
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.
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.\3\ A
list of the issues which parties have raised and to which we have
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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\3\ 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 Turkey'' 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 have made certain
changes to the margin calculations for Borusan and Y[uuml]cel.\4\
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\4\ For a discussion of these changes, see Memorandum to Neal
Halper entitled ``Cost of Production and Constructed Value
Calculation Adjustments for the Final Determination--Borusan'' 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 Turkey--Analysis Memorandum for Borusan'' dated
concurrently with this notice. See also Memorandum to Neal Halper
entitled ``Constructed Value Calculation Adjustments for the Final
Determination--Cayirova Boru Sanayi ve Ticaret A.S.'' 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 Turkey--Analysis Memorandum for Y[uuml]cel.''
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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 Borusan
and Y[uuml]cel. We used standard verification procedures, including
examination of relevant accounting and production records, as well as
original source documents provided by both companies.\5\
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\5\ See Memoranda to the File entitled ``Verification of the
Sales Response of Borusan Mannesmann Boru Sanayi ve Ticaret A.S. and
its affiliates in the Less-Than-Fair-Value Investigation of Certain
Oil Country Tubular Goods from the Republic of Turkey'' dated May
14, 2014, ``Verification of the Sales and Further Manufacturing
Responses of Borusan Mannesmann Boru Sanayi ve Ticaret A.S. and its
affiliates in the Less-Than-Fair-Value Investigation of Certain Oil
Country Tubular Goods from the Republic of Turkey'' dated May 16,
2014, and ``Verification of the Cost Response of Borusan Mannesmann
Boru Sanayi ve Ticaret A.S. Antidumping Duty Investigation of
Certain Oil Country Tubular Goods from the Republic of Turkey''
dated May 14, 2014. See also Memoranda to the File entitled
``Verification of the Sales Response of [Ccedil]ayirova Boru Sanayi
ve Ticaret A.[Scedil]. and Y[uuml]cel Boru Ithalat-Ihracat ve
Pazarlama A.[Scedil]., Ltd., in the Less-Than-Fair-Value
Investigation of Certain Oil Country Tubular Goods from the Republic
of Turkey'' dated May 31, 2014, and ``Verification of the Cost
Response of [Ccedil]ayirova Boru Sanayi ve Ticaret A.[Scedil]. Less-
Than-Fair-Value Investigation of Certain Oil Country Tubular Goods
from the Republic of Turkey'' dated May 14, 2014.
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Affirmative Determination of Critical Circumstances, in Part
On December 18, 2013, the petitioners filed a timely critical
circumstances allegation, pursuant to section 733(e)(1) of the Act and
19 CFR 351.206(c)(1), alleging that critical circumstances exist with
respect to imports of the merchandise under consideration. Based on our
analysis, pursuant to 735(a)(3), we find that critical circumstances
exist for all other producers and exporters, but not for Borusan or for
Y[uuml]cel.
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
As noted above, for this final determination, the Department found
that critical circumstances exist with respect to the all other
producers or exporters. Therefore, in accordance with section
735(c)(4)(B) of the Act, the Department will instruct U.S. Customs and
Border Protection (CBP) to suspend liquidation of all entries of OCTG
from Turkey from all other producers or exporters which were entered,
or withdrawn from warehouse, for consumption on or after November 27,
2013, which is 90 days prior to the date of publication of the
Preliminary Determination in the Federal Register, and require a cash
deposit for such entries as noted below. With respect to Y[uuml]cel,
pursuant to section 735(c)(1)(B) of the Act, the Department will
instruct CBP to continue to suspend liquidation of all entries of OCTG
from Turkey from Y[uuml]cel which were entered, or withdrawn from
warehouse, for consumption on or after February 25, 2014, the date of
publication of the Preliminary Determination. Because the Department
reached a negative final determination with respect to Borusan, we will
continue to instruct CBP to not suspend liquidation of entries or
collect a cash deposit for this company.
In the final determination of the companion countervailing duty
investigation on OCTG from Turkey, the Department determined that the
all other companies benefitted from export subsidies.\6\ Pursuant to
sections
[[Page 41973]]
735(c)(1) and 772(c)(1)(C) of the Act and 19 CFR 351.210(d), the
Department will instruct CBP to require cash deposits equal to the
weighted-average dumping margins indicated below, adjusted where
appropriate for export subsidies.
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\6\ See Certain Oil Country Tubular Goods from the Republic of
Turkey: Final Affirmative Countervailing Duty Determination and
Final Affirmative Critical Circumstances Determination, dated
concurrently with this notice.
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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 Y[uuml]cel 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 35.86 percent, as
discussed in the ``All Others Rate'' section, below. These suspension
of liquidation and cash deposit instructions will remain in effect
until further notice.
Final Determination
The Department determines that the following dumping margins exist
for the period July 1, 2012, through June 30, 2013:
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Weighted-
average
Exporter/manufacturer dumping
margin
(percent)
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Borusan Mannesmann Boru Sanayi ve Ticaret and Borusan 0.00
Istikbal Ticaret (collectively Borusan)...................
[Ccedil]ayirova Boru Sanayi ve Ticaret A.[Scedil]. and 35.86
Y[uuml]cel Boru Ithalat-Ihracat ve Pazarlama A.[Scedil].
(collectively Y[uuml]cel).................................
All Others................................................. 35.86
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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. In this final determination, we have assigned the ``All
Others'' a rate based on the weighted-average dumping margin calculated
for Y[uuml]cel, the only company for which the Department calculated a
rate.
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 imports of the
subject merchandise entered, or withdrawn from warehouse, for
consumption on or after the effective date of the suspension of
liquidation, as discussed above in the ``Continuation of Suspension of
Liquidation'' section.
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.
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. Duty Drawback
2. Constructed Value Selling Expenses for Y[uuml]cel
3. Constructed Value Selling Profit for Y[uuml]cel
4. Borusan's Home Market Sales
5. Standard J55 and Upgradeable J55
6. Borusan's Export Price Sales
7. Differential Pricing Analysis: Thresholds for the Results of
the Ratio Test
8. Treatment of Borusan's Second-Quality Pipe
9. Misclassification of Borusan's Steel Coil Purchases
VII. Recommendation
[FR Doc. 2014-16873 Filed 7-17-14; 8:45 am]
BILLING CODE 3510-DS-P