[Federal Register Volume 76, Number 225 (Tuesday, November 22, 2011)]
[Notices]
[Pages 72173-72178]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-30158]
[[Page 72173]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-853, C-523-802, C-520-806, and C-552-810]
Circular Welded Carbon-Quality Steel Pipe From India, the
Sultanate of Oman, the United Arab Emirates, and the Socialist Republic
of Vietnam: Initiation of Countervailing Duty Investigations
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: November 22, 2011.
FOR FURTHER INFORMATION CONTACT: Joshua Morris, AD/CVD Operations,
Import Administration, International Trade Administration, U.S.
Department of Commerce, 14th Street and Constitution Avenue NW.,
Washington, DC 20230; telephone: (202) 482-1779.
SUPPLEMENTARY INFORMATION:
The Petitions
On October 26, 2011, the Department of Commerce (``Department'')
received petitions filed in proper form by Allied Tube and Conduit, JMC
Steel Group, Wheatland Tube, and United States Steel Corporation
(collectively, ``Petitioners''), who are domestic producers of circular
welded carbon-quality steel pipe (``certain steel pipe''). See
Petitions for the Imposition of Antidumping and Countervailing Duties
on Circular Welded Carbon-Quality Steel Pipe from India, Oman, the
United Arab Emirates, and Vietnam, dated October 26, 2011 (hereinafter,
``the Petitions''). In response to the Department's requests,
Petitioners provided timely information supplementing the Petitions on
November 7, 2011 (hereinafter, the ``Supplement to the AD/CVD
Petitions''), November 9, 2011, and November 10, 2011.
In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (``the Act''), Petitioners allege that manufacturers,
producers, or importers of certain steel pipe from India, the Sultanate
of Oman (``Oman''), the United Arab Emirates (``the UAE''), and the
Socialist Republic of Vietnam (``Vietnam''), receive countervailable
subsidies within the meaning of section 701 of the Act, and that such
imports are materially injuring, or threatening material injury to, the
domestic industry producing certain steel pipe in the United States.
The Department finds that Petitioners filed the Petitions on behalf
of the domestic industry because they are interested parties as defined
in section 771(9)(C) of the Act, and Petitioners have demonstrated
sufficient industry support with respect to the Petitions (see
``Determination of Industry Support for the Petitions'' section below).
Period of Investigation
The period of investigation is January 1, 2010, through December
31, 2010.
Scope of Investigations
The products covered by these investigations are certain steel pipe
from India, Oman, the UAE, and Vietnam. For a full description of the
scope of the investigations, see ``Scope of the Investigations,'' in
Appendix I of this notice.
Comments on Scope of Investigations
During our review of the Petitions, we discussed the scope with
Petitioners to ensure that it is an accurate reflection of the products
for which the domestic industry is seeking relief. Moreover, as
discussed in the preamble to the Department's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage. See Antidumping Duties; Countervailing Duties; Final
Rule, 62 FR 27296, 27323 (May 19, 1997). Interested parties that wish
to submit comments on the scope should do so by December 5, 2011,
twenty calendar days from the signature date of this notice. All
comments must be filed on the records of the India, Oman, the UAE, and
Vietnam antidumping duty investigations and the India, Oman, the UAE,
and Vietnam countervailing duty (``CVD'') investigations. All comments
and submissions to the Department must be filed electronically using
Import Administration's Antidumping and Countervailing Duty Centralized
Electronic Service System (``IA ACCESS''). An electronically filed
document must be received successfully in its entirety by the
Department's electronic records system, IA ACCESS, by the time and date
noted above. Documents excepted from the electronic submission
requirements must be filed manually (i.e., in paper form) with the
Import Administration's APO/Dockets Unit, Room 1870, U.S. Department of
Commerce, 14th Street and Constitution Avenue NW., Washington, DC
20230, and stamped with the date and time of receipt by the deadline
noted above.\1\
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\1\ See http://www.gpo.gov/fdsys/pkg/FR-2011-07-06/pdf/2011-16352.pdf for details of the Department's Electronic Filing
Requirements, which went into effect on August 5, 2011. Information
on help using IA ACCESS can be found at https://iaaccess.trade.gov/help.aspx and a handbook can be found at https://iaaccess.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Consultations
Pursuant to section 702(b)(4)(A)(ii) of the Act, on October 27,
2011, the Department invited representatives of the Indian, Omani, UAE,
and Vietnamese governments to consult with respect to the Petitions.
On November 9, 2011, the Indian government asked the Department to
postpone initiation of the investigation so that the Department could
hold consultations with representatives of the Indian government after
November 15, 2011. See Letter from Embassy of India to the Department
of Commerce (November 9, 2011). On November 10, 2011, the Department
advised the Indian government that we were statutorily obligated to
initiate an investigation or dismiss the Petitions no later than
November 15, 2011, and could only extend this period under section
702(b)(4)(A)(ii) of the Act in circumstances where the Department finds
that the Petitions alone do not establish support of domestic producers
or workers accounting for more than 50 percent of the total production
of the domestic like product and, as a result, the Department is
required to poll or otherwise determine support for the Petitions by
the industry. Since the Department was not faced with those
circumstances, the Indian government was notified that we would be
available to meet with them after initiation. See Letter from Nancy
Decker to the Embassy of India (November 10, 2011). On November 15,
2011, the Indian government submitted comments objecting to the
allegations made by Petitioners and arguing that we should not initiate
a CVD investigation. See Memorandum to File (November 15, 2011). On
November 15, 2011, we sent a response to the Indian government. See
Letter from Nancy Decker to the Embassy of India (November 15, 2011).
The Omani government was unable to participate in consultations
prior to initiation.
Consultations with the Vietnamese and UAE governments were held in
Washington, DC, on November 7, 2011, and November 14, 2011,
respectively. See Ex-Parte Memorandum on Consultations regarding the
Petition for Imposition of Countervailing Duties on Circular Welded
Carbon-Quality Steel Pipe from the Socialist Republic of Vietnam
(November 15, 2011); and Ex-Parte Memorandum on Consultations regarding
the Petition for Imposition of Countervailing Duties on Circular Welded
Carbon-Quality Steel Pipe from
[[Page 72174]]
the United Arab Emirates (November 14, 2011). All memoranda are on file
electronically via IA ACCESS. Access to IA ACCESS is available in the
Central Records Unit (``CRU''), Room 7046, of the main Department of
Commerce building.
Determination of Industry Support for the Petitions
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, the Department
shall: (i) Poll the industry or rely on other information in order to
determine if there is support for the petition, as required by
subparagraph (A); or (ii) determine industry support using a
statistically valid sampling method to poll the industry.
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs the Department to look to producers and workers who produce the
domestic like product. The International Trade Commission (``ITC''),
which is responsible for determining whether ``the domestic industry''
has been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both the Department and
the ITC must apply the same statutory definition regarding the domestic
like product (see section 771(10) of the Act), they do so for different
purposes and pursuant to a separate and distinct authority. In
addition, the Department's determination is subject to limitations of
time and information. Although this may result in different definitions
of the like product, such differences do not render the decision of
either agency contrary to law. See USEC, Inc. v. United States, 132 F.
Supp. 2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd. v. United
States, 688 F. Supp. 639, 644 (CIT 1988)), aff'd 865 F.2d 240 (Fed.
Cir. 1989).
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, Petitioners do not offer
a definition of domestic like product distinct from the scope of the
investigations. Based on our analysis of the information submitted on
the record, we have determined that certain steel pipe constitutes a
single domestic like product and we have analyzed industry support in
terms of that domestic like product. For a discussion of the domestic
like product analysis in this case, see Countervailing Duty
Investigation Initiation Checklist: Circular Welded Carbon-Quality
Steel Pipe from India (``India CVD Checklist''), Countervailing Duty
Investigation Initiation Checklist: Circular Welded Carbon-Quality
Steel Pipe from Oman (``Oman CVD Checklist''), Countervailing Duty
Investigation Initiation Checklist: Circular Welded Carbon-Quality
Steel Pipe from the United Arab Emirates (``UAE CVD Checklist''), and
Countervailing Duty Investigation Initiation Checklist: Circular Welded
Carbon-Quality Steel Pipe from the Socialist Republic of Vietnam
(``Vietnam CVD Checklist'') at Attachment II, Analysis of Industry
Support for the Petitions Covering Circular Welded Carbon-Quality Steel
Pipe, on file electronically in the CRU via IA ACCESS.
In determining whether Petitioners have standing under section
702(c)(4)(A) of the Act, we considered the industry support data
contained in the Petitions with reference to the domestic like product
as defined in the ``Scope of Investigations,'' in Appendix I of this
notice. To establish industry support, Petitioners provided their
shipments of the domestic like product in 2010, and compared their
shipments to the estimated total shipments of the domestic like product
for the entire domestic industry. Because total industry production
data for the domestic like product for 2010 is not reasonably available
and Petitioners have established that shipments are a reasonable proxy
for production data, we have relied upon the shipment data provided by
Petitioners for purposes of measuring industry support. For further
discussion, see India CVD Checklist, Oman CVD Checklist, UAE CVD
Checklist, and Vietnam CVD Checklist, at Attachment II.
Our review of the data provided in the Petitions, supplemental
submissions, and other information readily available to the Department
indicates that Petitioners have established industry support. First,
the Petitions established support from domestic producers accounting
for more than 50 percent of the total shipments \2\ of the domestic
like product and, as such, the Department is not required to take
further action in order to evaluate industry support (e.g., polling).
See Section 702(c)(4)(D) of the Act and India CVD Checklist, Oman CVD
Checklist, UAE CVD Checklist, and Vietnam CVD Checklist, at Attachment
II. Second, the domestic producers have met the statutory criteria for
industry support under section 702(c)(4)(A)(i) of the Act because the
domestic producers who support the Petitions account for at least 25
percent of the total shipments of the domestic like product. See India
CVD Checklist, Oman CVD Checklist, UAE CVD Checklist, and Vietnam CVD
Checklist, at Attachment II. Finally, the domestic producers have met
the statutory criteria for industry support under section
702(c)(4)(A)(ii) of the Act because the domestic producers who support
the Petitions account for more than 50 percent of the shipments of the
domestic like product produced by that portion of the industry
expressing support for, or opposition to, the Petitions. See India CVD
Checklist, Oman CVD Checklist, UAE CVD Checklist, and Vietnam CVD
Checklist, at Attachment II. Accordingly, the Department determines
that the Petitions were filed on behalf of the domestic industry within
the meaning of section 702(b)(1) of the Act. See India CVD Checklist,
Oman CVD Checklist, UAE CVD Checklist, and Vietnam CVD Checklist, at
Attachment II.
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\2\ As mentioned above, Petitioners have established that
shipments are a reasonable proxy for production data. Section
351.203(e)(1) of the Department's regulations states ``production
levels may be established by reference to alternative data that the
Secretary determines to be indicative of production levels.''
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The Department finds that Petitioners filed the Petitions on behalf
of the domestic industry because they are interested parties as defined
in section 771(9)(C) of the Act and they have demonstrated sufficient
industry support with respect to the countervailing duty investigations
they are requesting the Department initiate. See India CVD Checklist,
Oman CVD Checklist, UAE CVD Checklist, and
[[Page 72175]]
Vietnam CVD Checklist, at Attachment II.
Injury Test
Because India, Oman, the UAE, and Vietnam all are a ``Subsidies
Agreement country'' within the meaning of section 701(b) of the Act,
section 701(a)(2) of the Act applies to this investigation.
Accordingly, the ITC must determine whether imports of the subject
merchandise from India, Oman, the UAE, and Vietnam materially injure,
or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
Petitioners allege that imports of the subject merchandise are
benefitting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the U.S. industry
producing the domestic like product. In addition, Petitioners allege
that subject imports exceed the negligibility threshold provided for
under section 771(24)(A) of the Act.
Petitioners contend that the industry's injured condition is
illustrated by reduced market share; reduced production, shipments,
capacity, and capacity utilization; reduced employment, hours worked,
and wages paid; underselling and price depression or suppression;
decline in financial performance; lost sales and revenue; and increase
in the volume of imports and import penetration despite overall
declining demand. See India CVD Initiation Checklist, Oman CVD
Initiation Checklist, UAE CVD Initiation Checklist, and Vietnam CVD
Initiation Checklist, at ``Analysis of Allegations and Evidence of
Material Injury and Causation for the Petitions Covering Circular
Welded Carbon-Quality Steel Pipe from India, Oman, the UAE, and
Vietnam'' in Attachment III. We have assessed the allegations and
supporting evidence regarding material injury, threat of material
injury, and causation, and we have determined that these allegations
are properly supported by adequate evidence and meet the statutory
requirements for initiation. See India CVD Initiation Checklist, Oman
CVD Initiation Checklist, UAE CVD Initiation Checklist, and Vietnam CVD
Initiation Checklist, at Attachment III.
Initiation of Countervailing Duty Investigations
Section 702(b) of the Act requires the Department to initiate a CVD
proceeding whenever an interested party files a petition on behalf of
an industry that: (1) Alleges the elements necessary for an imposition
of a duty under section 701(a) of the Act; and (2) is accompanied by
information reasonably available to Petitioner(s) supporting the
allegations. The Department has examined the Petitions on certain steel
pipe from India, Oman, the UAE, and Vietnam and finds that it complies
with the requirements of section 702(b) of the Act. Therefore, in
accordance with section 702(b) of the Act, we are initiating CVD
investigations to determine whether manufacturers, producers, or
exporters of certain steel pipe in India, Oman, the UAE, and Vietnam
receive countervailable subsidies. For a discussion of evidence
supporting our initiation determination, see India CVD Initiation
Checklist, Oman CVD Initiation Checklist, UAE CVD Initiation Checklist,
and Vietnam CVD Initiation Checklist.
I. India
We are including in our investigation the following programs
alleged in the Petitions to have provided countervailable subsidies to
producers and exporters of the subject merchandise in India:
A. Export Oriented Unit Schemes
1. Duty-free import of all types of goods, including capital goods
and raw materials
2. Reimbursement of Central Sales Tax (``CST'') paid on goods
manufactured in India
3. Duty drawback on fuel procured from domestic oil companies
4. Exemption from income tax under Section 10A and 10B of Income
Tax Act
5. Exemption from payment of Central Excise Duty on goods
manufactured in India and procured from a Domestic Tariff Area
6. Reimbursement of CST on goods manufactured in India and procured
from a Domestic Tariff Area
B. Export Promotion Capital Goods Scheme
C. Duty Exemption/Remission Schemes
D. Pre-shipment and Post-shipment Export Financing
E. Market Development Assistance
F. Market Access Initiative
G. Government of India Loan Guarantees
H. Status Certificate Program
I. Steel Development Fund Loans
J. Research and Technology Scheme Under Empowered Committee Mechanism
with Steel Development Fund Support
K. Special Economic Zones (``SEZ'') Programs
1. Duty-Free Importation of Capital Goods and Raw Materials,
Components, Consumables, Intermediates, Spare Parts and Packing
Material
2. Exemption from Payment of CST on Purchases of Capital Goods and
Raw Materials, Components, Consumables, Intermediates, Spare Parts and
Packing Material
3. Exemption from Electricity Duty and Cess thereon on the Sale or
Supply to the SEZ Unit
4. SEZ Income Tax Exemption Scheme (Section 10A)
5A. Discounted Land and Related Fees in an SEZ
5B. Land Provided at Less Than Adequate Remuneration in an SEZ
L. Input Programs
1. Provision of Hot-Rolled Steel by the Steel Authority of India
For Less Than Adequate Remuneration (``LTAR'')
2. Provision of Captive Mining Rights
3. Captive Mining Rights of Coal
4. Provision of High-Grade Ore for LTAR
M. State Government of Maharashtra (``SGOM'') Programs
1. Sales Tax Program
2. Value-Added Tax Refunds under SGOM Package Scheme
3. Electricity Duty Scheme under Package Scheme Incentives 1993
4. Octroi Refunds
5. Octroi Loan Guarantees
6. Infrastructure Assistance for Mega Projects
7. Provision of Land for LTAR
8. Investment Subsidies
For further information explaining why the Department is investigating
these programs, see India CVD Initiation Checklist.
II. Oman
We are including in our investigation the following programs
alleged in the Petitions to have provided countervailable subsidies to
producers and exporters of the subject merchandise in Oman:
A. Tariff Exemptions on Imported Equipment, Machinery, Raw Materials
and Packaging Materials
B. Government Provision of Goods and Services for LTAR
1. Land and Buildings for LTAR
2. Electricity, Water, and Natural Gas for LTAR
C. Preferential Loans
1. Soft Loans for Industrial Projects
2. Post-Shipment Financing Loans
3. Pre-Shipment Export Credit Guarantees
For further information explaining why the Department is investigating
these programs, see Oman CVD Initiation Checklist.
We are not including in our investigation the following programs
[[Page 72176]]
alleged to benefit producers and exporters of the subject merchandise
in Oman:
A. Profit/Income Tax Exemption
B. Export Credit Insurance
For further information explaining why the Department is not
investigating these programs, see Oman CVD Initiation Checklist.
III. UAE
We are including in our investigation the following programs
alleged in the Petitions to have provided countervailable subsidies to
producers and exporters of the subject merchandise in the UAE:
A. Profit Tax Exemptions
B. Tariff Exemptions on Imported Equipment, Spare Parts, and Building
Materials
C. Government Provision of Goods and Services for LTAR
1. Electricity for LTAR
2. Water for LTAR
3. Land and/or Buildings for LTAR
D. Preferential Lending
1. Preferential Export Lending
2. Dubai Commodity Receipts
For further information explaining why the Department is investigating
these programs, see UAE CVD Initiation Checklist.
We are not including in our investigation the following program
alleged to benefit producers and exporters of the subject merchandise
in the UAE:
A. Gas for LTAR
For further information explaining why the Department is not
investigating this program, see UAE CVD Initiation Checklist.
IV. Vietnam
We are including in our investigation the following programs
alleged in the Petitions to have provided countervailable subsidies to
producers and exporters of the subject merchandise in Vietnam:
A. Policy Lending
1. Preferential Lending for Exporters
2. Preferential Lending to the Steel Industry
B. Government Provision of Goods and Services for LTAR
1. Land Rent Reduction or Exemption for Exporters
2. Land Rent Reduction or Exemption for Foreign-Invested
Enterprises (``FIEs'')
3. Land Preferences for Enterprises in Encouraged Industries or
Industrial Zones
4. Provision of Water LTAR in Industrial Zones
C. Grant Programs
1. Export Promotion Program
2. New Product Development Program
D. Tax Programs
1. Import Duty Exemptions for Imported Raw Materials for Exported
Goods
2. Income Tax Preferences for Encouraged Industries
3. Income Tax Preferences for FIEs
4. Exemption of Import Duties on Imports of Fixed Assets, Spare
Parts and Accessories for Industrial Zones
5. Income Tax Preferences for Enterprises in Industrial Zones
6. Tax Refund for Reinvestment by FIEs
7. Import Duty Preferences for FIEs
8. Duty Exemptions on Goods for the Creation of Fixed Assets for
Encouraged Projects
9. Income Tax Preferences for Exporters
For further information explaining why the Department is investigating
these programs, see Vietnam CVD Initiation Checklist.
Respondent Selection
For these investigations, the Department expects to select
respondents based on U.S. Customs and Border Protection (``CBP'') data
for U.S. imports during the period of investigation under the following
Harmonized Tariff Schedule of the United States (``HTSUS'') numbers:
7306.30.10.00, 7306.30.50.25, 7306.30.50.32, 7306.30.50.40,
7306.30.50.55, 7306.30.50.85, and 7306.30.50.90. These HTSUS numbers
closely match the subject merchandise, and are those used by
Petitioners to calculate aggregate import totals.\3\ We intend to
release the CBP data under Administrative Protective Order (``APO'') to
all parties with access to information protected by APO within five
days of publication of this Federal Register notice. Interested parties
may submit comments regarding the CBP data and respondent selection
within seven calendar days of publication of this notice. Comments
should be filed electronically using IA ACCESS. An electronically filed
document must be received successfully in its entirety by the
Department's electronic records system, IA ACCESS, by the time and date
noted above. Documents excepted from the electronic submission
requirements must be filed manually (i.e., in paper form) with the
Import Administration's APO/Dockets Unit, Room 1870, U.S. Department of
Commerce, 14th Street and Constitution Avenue NW., Washington, DC
20230, and stamped with the date and time of receipt by the deadline
noted above. We intend to make our decision regarding respondent
selection within 20 days of publication of this Federal Register
notice.
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\3\ See, e.g., Supplement to the AD/CVD Petitions at Attachment
3.
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Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). Instructions for filing such
applications may be found on the Department's Web site at http://ia.ita.doc.gov/apo.
Distribution of Copies of the Petitions
In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR
351.202(f), copies of the public version of the Petitions have been
provided to representatives of the Governments of India, Oman, the UAE,
and Vietnam. Because of the large number of producers/exporters
identified in the Petitions, the Department considers the service of
the public version of the Petitions to the foreign producers/exporters
satisfied by the delivery of the public versions of the Petitions to
the Governments of India, Oman, the UAE, and Vietnam, consistent with
19 CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our initiation, as required by section
702(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, no later than 45 days after
the date the Petitions were filed, whether there is a reasonable
indication that imports of certain steel pipe from India, Oman, the
UAE, and Vietnam are materially injuring, or threatening material
injury to a U.S. industry. A negative ITC determination with respect to
any country will result in the investigation being terminated for that
country; otherwise, these investigations will proceed according to
statutory and regulatory time limits.
Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). On January 22, 2008, the
Department published Antidumping and Countervailing Duty Proceedings:
Documents Submission Procedures; APO Procedures, 73 FR 3634 (January
22, 2008). Parties wishing to participate in these investigations
should ensure that they meet the requirements of these procedures
(e.g., the filing of letters of appearance as discussed at 19 CFR
351.103(d)).
[[Page 72177]]
Any party submitting factual information in a CVD proceeding must
certify to the accuracy and completeness of that information. See
section 782(b) of the Act. Parties are hereby reminded that revised
certification requirements are in effect for company/government
officials as well as their representatives in all segments of any AD/
CVD proceedings initiated on or after March 14, 2011. See Certification
of Factual Information to Import Administration During Antidumping and
Countervailing Duty Proceedings: Interim Final Rule, 76 FR 7491
(February 10, 2011) (Interim Final Rule) (amending 19 CFR 351.303(g)(1)
and (2)). The formats for the revised certifications are provided at
the end of the Interim Final Rule. The Department intends to reject
factual submissions in any proceeding segments initiated on or after
March 14, 2011, if the submitting party does not comply with the
revised certification requirements.
This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: November 15, 2011.
Paul Piquado,
Assistant Secretary for Import Administration.
Appendix I
Scope of the Investigations
These investigations cover welded carbon-quality steel pipes and
tube, of circular cross-section, with an outside diameter (``O.D.'')
not more than 16 inches (406.4 mm), regardless of wall thickness,
surface finish (e.g., black, galvanized, or painted), end finish (plain
end, beveled end, grooved, threaded, or threaded and coupled), or
industry specification (e.g., American Society for Testing and
Materials International (``ASTM''), proprietary, or other) generally
known as standard pipe, fence pipe and tube, sprinkler pipe, and
structural pipe (although subject product may also be referred to as
mechanical tubing). Specifically, the term ``carbon quality'' includes
products in which: (a) Iron predominates, by weight, over each of the
other contained elements; (b) the carbon content is 2 percent or less,
by weight; and (c) none of the elements listed below exceeds the
quantity, 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;
(xiv) 0.15 percent of zirconium.
Subject pipe is ordinarily made to ASTM specifications A53, A135,
and A795, but can also be made to other specifications. Structural pipe
is made primarily to ASTM specifications A252 and A500. Standard and
structural pipe may also be produced to proprietary specifications
rather than to industry specifications. Fence tubing is included in the
scope regardless of certification to a specification listed in the
exclusions below, and can also be made to the ASTM A513 specification.
Sprinkler pipe is designed for sprinkler fire suppression systems and
may be made to industry specifications such as ASTM A53 or to
proprietary specifications. These products are generally made to
standard O.D. and wall thickness combinations. Pipe multi-stenciled to
a standard and/or structural specification and to other specifications,
such as American Petroleum Institute (``API'') API-5L specification, is
also covered by the scope of these investigations when it meets the
physical description set forth above, and also has one or more of the
following characteristics: is 32 feet in length or less; is less than
2.0 inches (50mm) in outside diameter; has a galvanized and/or painted
(e.g., polyester coated) surface finish; or has a threaded and/or
coupled end finish.
The scope of these investigations does not include: (a) Pipe
suitable for use in boilers, superheaters, heat exchangers, refining
furnaces and feedwater heaters, whether or not cold drawn; (b) finished
electrical conduit; (c) finished scaffolding; \4\ (d) tube and pipe
hollows for redrawing; (e) oil country tubular goods produced to API
specifications; (f) line pipe produced to only API specifications; and
(g) mechanical tubing, whether or not cold-drawn. However, products
certified to ASTM mechanical tubing specifications are not excluded as
mechanical tubing if they otherwise meet the standard sizes (e.g.,
outside diameter and wall thickness) of standard, structural, fence and
sprinkler pipe. Also, products made to the following outside diameter
and wall thickness combinations, which are recognized by the industry
as typical for fence tubing, would not be excluded from the scope based
solely on their being certified to ASTM mechanical tubing
specifications:
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\4\ Finished scaffolding is defined as component parts of a
final, finished scaffolding that enters the United States
unassembled as a ``kit.'' A ``kit'' is understood to mean a packaged
combination of component parts that contain, at the time of
importation, all the necessary component parts to fully assemble a
final, finished scaffolding.
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1.315 inch O.D. and 0.035 inch wall thickness (gage 20)
1.315 inch O.D. and 0.047 inch wall thickness (gage 18)
1.315 inch O.D. and 0.055 inch wall thickness (gage 17)
1.315 inch O.D. and 0.065 inch wall thickness (gage 16)
1.315 inch O.D. and 0.072 inch wall thickness (gage 15)
1.315 inch O.D. and 0.083 inch wall thickness (gage 14)
1.315 inch O.D. and 0.095 inch wall thickness (gage 13)
1.660 inch O.D. and 0.047 inch wall thickness (gage 18)
1.660 inch O.D. and 0.055 inch wall thickness (gage 17)
1.660 inch O.D. and 0.065 inch wall thickness (gage 16)
1.660 inch O.D. and 0.072 inch wall thickness (gage 15)
1.660 inch O.D. and 0.083 inch wall thickness (gage 14)
1.660 inch O.D. and 0.095 inch wall thickness (gage 13)
1.660 inch O.D. and 0.109 inch wall thickness (gage 12)
1.900 inch O.D. and 0.047 inch wall thickness (gage 18)
1.900 inch O.D. and 0.055 inch wall thickness (gage 17)
1.900 inch O.D. and 0.065 inch wall thickness (gage 16)
1.900 inch O.D. and 0.072 inch wall thickness (gage 15)
1.900 inch O.D. and 0.095 inch wall thickness (gage 13)
1.900 inch O.D. and 0.109 inch wall thickness (gage 12)
2.375 inch O.D. and 0.047 inch wall thickness (gage 18)
2.375 inch O.D. and 0.055 inch wall thickness (gage 17)
2.375 inch O.D. and 0.065 inch wall thickness (gage 16)
2.375 inch O.D. and 0.072 inch wall thickness (gage 15)
2.375 inch O.D. and 0.095 inch wall thickness (gage 13)
2.375 inch O.D. and 0.109 inch wall thickness (gage 12)
2.375 inch O.D. and 0.120 inch wall thickness (gage 11)
2.875 inch O.D. and 0.109 inch wall thickness (gage 12)
2.875 inch O.D. and 0.134 inch wall thickness (gage 10)
2.875 inch O.D. and 0.165 inch wall thickness (gage 8)
3.500 inch O.D. and 0.109 inch wall thickness (gage 12)
3.500 inch O.D. and 0.148 inch wall thickness (gage 9)
3.500 inch O.D. and 0.165 inch wall thickness (gage 8)
4.000 inch O.D. and 0.148 inch wall thickness (gage 9)
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4.000 inch O.D. and 0.165 inch wall thickness (gage 8)
4.500 inch O.D. and 0.203 inch wall thickness (gage 7)
The pipe subject to these investigations are currently classifiable
in Harmonized Tariff Schedule of the United States (``HTSUS'')
statistical reporting numbers 7306.19.1010, 7306.19.1050, 7306.19.5110,
7306.19.5150, 7306.30.1000, 7306.30.5025, 7306.30.5032, 7306.30.5040,
7306.30.5055, 7306.30.5085, 7306.30.5090, 7306.50.1000, 7306.50.5050,
and 7306.50.5070. However, the product description, and not the HTSUS
classification, is dispositive of whether the merchandise imported into
the United States falls within the scope of the investigations.
[FR Doc. 2011-30158 Filed 11-21-11; 8:45 am]
BILLING CODE 3510-DS-P