The International TradeCommission is issuing a countervailing duty order on

Tag : zirconium tube

SUMMARY: Based on affirmative final determinations by theDepartment of Commerce (the Department) and the International TradeCommission (ITC), the Department is issuing a countervailing dutyorder on circular welded carbon quality steel pipe (CWP) from thePeople's Republic of China (PRC). On July 15, 2008, the ITCnotified the Department of its affirmative determination ofmaterial injury to a U.S. industry. See Circular WeldedCarbon-Quality Steel Pipe from China, USITC Pub. 4019,Investigation Nos. 701-TA-447 and 731-TA-1116 (Final) (July 2008).
EFFECTIVE DATE: July 22, 2008.
FOR FURTHER INFORMATION CONTACT:
Shane Subler and Damian Felton at (202) 482-0189 and (202)482-0133, respectively, Import Administration, International TradeAdministration, U.S. Department of Commerce, 14th Street andConstitution Avenue, NW, Washington, DC 20230.
Background
On June 5, 2008, the Department published its finaldetermination in the countervailing duty investigation of CWP fromthe PRC. See Circular Welded Carbon Quality Steel Pipe from thePeople's Republic of China: Final Affirmative Countervailing DutyDetermination and Final Affirmative Determination of CriticalCircumstances, 73 FR 31966 (June 5, 2008) (Final Determination).
On July 15, 2008, the ITC notified the Department of its finaldetermination pursuant to sections 705(b)(1)(A)(i) and735(b)(1)(A)(i) of the Tariff Act of 1930, as amended (the Act),that an industry in the United States is materially injured byreason of subsidized imports of subject merchandise the PRC. TheITC also determined that critical circumstances do not exist. SeeCircular Welded Carbon-Quality Steel Pipe from China (InvestigationNos. 701-TA-447 and 731-TA-1116 (Final), USITC Publication 4019,July 2008).
Scope of the Order
The scope of this order covers certain welded carbon qualitysteel pipes and tubes, of circular cross-section, and with anoutside diameter of 0.372 inches (9.45 mm) or more, but not morethan 16 inches (406.4 mm), whether or not stenciled, regardless ofwall thickness, surface finish (e.g., black, galvanized, orpainted), end finish (e.g., plain end, beveled end, grooved,threaded, or threaded and coupled), or industry specification(e.g., ASTM, proprietary, or other), generally known as standardpipe and structural pipe (they may also be referred to as circular,structural, or mechanical tubing).
Specifically, the term "carbon quality" includes products inwhich (a) iron predominates, by weight, over each of the othercontained elements; (b) the carbon content is 2 percent or less, byweight; and (c) none of the elements listed below exceeds thequantity, by weight, as indicated:
(i) 1.80 percent of manganese;
(ii) 2.25 percent of silicon;
(iii) 1.00 percent of copper;
(iv) 0.50 percent of aluminum;
(v) 1.25 percent of chromium;
(vi) 0.30 percent of cobalt;
(vii) 0.40 percent of lead;
(viii) 1.25 percent of nickel;
(ix) 0.30 percent of tungsten;
(x) 0.15 percent of molybdenum;
(xi) 0.10 percent of niobium;
(xii) 0.41 percent of titanium;
(xiii) 0.15 percent of vanadium; or
(xiv) 0.15 percent of zirconium.
Standard pipe is made primarily to American Society for Testingand Materials (ASTM) specifications, but can be made to otherspecifications. Standard pipe is made primarily to ASTMspecifications A-53, A-135, and A-795. Structural pipe is madeprimarily to ASTM specifications A-252 and A-500. Standard andstructural pipe may also be produced to proprietary specificationsrather than to industry specifications. This is often the case, forexample, with fence tubing. Pipe multiple-stenciled to a standardand/or structural specification and to any other specification,such as the American Petroleum Institute (API) API-5Lspecification, is also covered by the scope of this investigationwhen it meets the physical description set forth above and also hasone or more of the following characteristics: is 32 feet in lengthor less; is less than 2.0 inches (50 mm) in outside diameter; has agalvanized and/or painted surface finish; or has a threaded and/orcoupled end finish. (The term "painted" does not include coatingsto inhibit rust in transit, such as varnish, but includes coatingssuch as polyester.)
The scope of this order does not include: (a) pipe suitable foruse in boilers, superheaters, heat exchangers, condensers, refiningfurnaces and feedwater heaters, whether or not cold drawn; (b)mechanical tubing, whether or not cold-drawn; (c) finishedelectrical conduit; (d) finished scaffolding; (e) tube and pipehollows for redrawing; (f) oil country tubular goods produced toAPI specifications; and (g) line pipe produced to only APIspecifications.
The pipe products that are the subject of this order arecurrently classifiable in HTSUS statistical reporting numbers7306.30.10.00, 7306.30.50.25, 7306.30.50.32, 7306.30.50.40,7306.30.50.55, 7306.30.50.85, 7306.30.50.90, 7306.50.10.00,7306.50.50.50, 7306.50.50.70, 7306.19.10.10, 7306.19.10.50,7306.19.51.10, and 7306.19.51.50. However, the product description,and not the Harmonized Tariff Schedule of the United States("HTSUS") classification, is dispositive of whether merchandiseimported into the United States falls within the scope of theorder.
Amendment to the Final Determination
In accordance with sections 705(d) and 777(i)(1) of the Act, onJune 5, 2008, the Department published its notice of finalaffirmative countervailing duty determination in the countervailingduty investigation of CWP from the PRC. See Final Determination, 73FR 31966, and corresponding "Issues and Decision Memorandum" (May29, 2008). On June 16, 2008, the petitioners /1/ filed timelyallegations stating that the Department made six ministerial errorsin its final determination. No rebuttal comments were received.
FOOTNOTE 1 The petitioners in this case are the Ad Hoc Coalitionfor Fair Pipe Imports from China and the United Steel Workers. ENDFOOTNOTE
After analyzing all petitioners' comments, we have determined,in accordance with 19 CFR 351.224(e), that we made four ministerialerrors in our calculations performed for the final determination.In addition, the Department itself discovered it made twoadditional ministerial errors. /2/
FOOTNOTE 2 See generally Memorandum to Susan Kuhbach, Director,Office 1, AD/CVD Operations from Nancy Decker, Program Manager,Office 1, AD/CVD Operations, Re: "Countervailing DutyInvestigation: Circular Welded Carbon-Quality Steel Pipe from thePeople's Republic of China: Ministerial Error Allegations" (July 2,2008) ("Ministerial Error Allegations Memo "). END FOOTNOTE
In summary, the petitioners contended that the Department erredin making its Final Determination by making two distinct clericalerrors in calculating the benefit from the provision of hot-rolledsteel (HRS) at less than adequate remuneration when it did notadjust the SteelBenchmarker to include delivery charges and importduties and did not adjust the benchmark for a certain type /3/ ofHRS to include Chinese import duties. The Department did not makeeither of the adjustments requested because they did not involveministerial errors. See Ministerial Error Allegations Memo at pages2-3.
FOOTNOTE 3 The type of HRS is proprietary information. Specificson type of HRS can be found in the proprietary version of theMinisterial Error Allegations Memo. END FOOTNOTE
Second, the petitioners contended that the Department madeseveral errors in the calculation of benefit from East Pipe'spolicy loans including using an incorrect amount of reportedinterest for one loan, incorrectly calculating the number of daysoutstanding for another loan, and impermissibly offsetting thebenefit from the specific loans where the Department found abenefit in accordance with 19 CFR 351.505(a). The Department agreedwith the petitioners that these three ministerial errors werecommitted with respect to East Pipe's policy loans and correctedeach of the errors accordingly. See Ministerial Error AllegationsMemo at pages 3-5.
Third, the petitioners contended that with respect to Kingland,the Department did not use the correct sales denominator to accountfor the collapsing of Kingland companies. /4/ The Departmentagreed, in part, with the petitioners that some ministerial errorswere committed with respect to Kingland's sales denominator.However, other requested adjustments were not ministerial errors,because, for example, there was not enough information on therecord to make these other adjustments. Therefore, the Departmentonly corrected those errors it found to be ministerial errors. SeeMinisterial Error Allegations Memo at page 6.
FOOTNOTE 4 See Ministerial Error Allegations Memo at page 6 forthe specific factors used in the determination of Kingland's salesdenominator since the factors are proprietary information. ENDFOOTNOTE
Finally, the Department itself found two additional ministerialerrors. In our calculation to measure the adequacy of remunerationfrom government-provided HRS we inadvertently did not use theactual import price paid as a benchmark in the month(s) ofpurchase, and we did not average that actual import price with theSteelBenchmarker price for the month(s), and have made correctionsaccordingly. See Ministerial Error Allegations Memo at pages 6-7.Additionally, we failed to make a minor correction presented atverification regarding East Pipe's interest paid on one loan(separate from the loan noted above). See Ministerial ErrorAllegations Memo at pages 3-4.
As a result of correcting these errors, the countervailing dutycalculated for Weifang East Steel Pipe Co., Ltd. ("East Pipe") haschanged from 29.57 percent to 29.62 percent, the countervailingduty calculated for Zhejiang Kingland Pipeline and TechnologiesCo., Ltd. ("Kingland Pipeline"), and affiliated companies(collectively, "Kingland," or "Kingland Companies") has changedfrom 44.86 percent to 44.93 percent, the countervailing dutycalculated for Tianjin Shuangjie Steel Pipe Co., Ltd.; TianjinShuangjie Steel Pipe Group Co., Ltd.; Tianjin Wa Song Imp. &Exp. Co., Ltd.; and Tianjin Shuanglian Galvanizing Products Co.,Ltd. (collectively, "Shuangjie") has changed from 615.92 percent to616.83 percent, and the countervailing duty calculated for "AllOthers" has changed from 37.22 percent to 37.28 percent. Therefore,in accordance with 19 CFR 351.224(e), we are amending the finaldetermination in the countervailing duty investigation of CWP fromthe PRC.
Countervailing Duty Order
On July 15, 2008, in accordance with section 705(d) of the Act,the ITC notified the Department of its final determination that theindustry in the United States producing CWP is materially injuredwithin the meaning of section 705(b)(1)(A)(i) of the Act by reasonof subsidized imports of CWP from the PRC.
Therefore, countervailing duties will be assessed on allunliquidated entries of CWP from the PRC entered, or withdrawn fromwarehouse, for consumption on or after November 13, 2007, the dateon which the Department published its preliminary affirmativecountervailing duty determination in the Federal Register, /5/ andbefore March 12, 2008, the date the Department instructed the U.S.Customs and Border Protection (CBP) to discontinue the suspensionof liquidation in accordance with section 703(d) of the Act.Section 703(d) states that the suspension of liquidation pursuantto a preliminary determination may not remain in effect for morethan four months. Therefore, entries of CWP made on or after March12, 2008, and prior to the date of publication of the ITC's finaldetermination in the Federal Register are not liable for theassessment of countervailing duties due to the Department'sdiscontinuation, effective March 12, 2008, of the suspension ofliquidation.
FOOTNOTE 5 See Circular Welded Carbon Quality Steel Pipe fromthe People's Republic of China: Preliminary AffirmativeCountervailing Duty Determination; Preliminary AffirmativeDetermination of Critical Circumstances; and Alignment of FinalCountervailing Duty Determination with Final Antidumping DutyDetermination, 72 FR 63875 (Nov. 13, 2007) (PreliminaryDetermination). END FOOTNOTE
With regard to the ITC's negative critical circumstancesdetermination, we will instruct CBP to lift suspension, release anybond or other security, and refund any cash deposit made to securethe payment of antidumping duties with respect to entries of themerchandise entered, or withdrawn from warehouse, for consumptionon or after August 15, 2007, but before November 13, 2007 (i.e.,the 90 days prior to the date of publication of the PreliminaryDetermination).
In accordance with section 706 of the Act, the Department willdirect CBP to reinstitute the suspension of liquidation for CWPfrom the PRC, effective the date of publication of the ITC's noticeof final determination in the Federal Register and to assess, uponfurther advice by the Department pursuant to section 706(a)(1) ofthe Act, countervailing duties for each entry of the subjectmerchandise in an amount based on the net countervailable subsidyrates for the subject merchandise as noted below.
This notice constitutes the countervailing duty order withrespect to CWP from the PRC, pursuant to section 706(a) of the Act.Interested parties may contact the Department's CRU, Room 1117 ofthe Main Commerce Building, for copies of an updated list ofcountervailing duty orders currently in effect.
This order is issued and published in accordance with section706(a) of Act, 19 CFR 351.224(e), and 19 CFR 351.211(b).
Dated: July 16, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E8-16753 Filed 7-21-08; 8:45 am]
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