Federal Register - November 1, 2021
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Source: Federal Register
60212
Federal Register / Vol. 86, No. 208 / Monday, November 1, 2021 / Notices
lotter on DSK11XQN23PROD with NOTICES1
for the entire industry by adding their production to the estimated production of the non-petitioning producers.20 We relied on data provided by the petitioners for purposes of measuring industry support.21
On October 8, 15, and 20, 2021, we received comments on industry support from Tenaris Bay City, Inc.; IPSCO
Tubulars Inc.; Maverick Tube Corporation; and Tenaris Global Services U.S.A. Corporation collectively, Tenaris USA, U.S.
producers of OCTG.22 On October 18, 2021, the petitioners responded to the comments from Tenaris USA.23 On October 21, 2021, the GOR raised industry support comments during the consultations held regarding the Russia CVD Petition.24 On October 21, 2021, we received comments from TMK
Group TMK, a Russian producer and exporter of OCTG.25 On October 22, 2021, Tenaris USA filed its fourth submission with Commerce and formally indicated that it opposes the Petitions.26 Also on October 22, 2021, 20 See First General Issues Supplement at 7 and Exhibit 8; see also Second General Issues Supplement at Exhibit 5.
21 See Petitions at Volume I at Exhibits I1 and I2; see also First General Issues Supplement at 310 and Exhibits 1, 4, 5, and 8; and Second General Issues Supplement at 12 and Exhibits 2
5.
22 See Tenaris USAs Letters, Oil Country Tubular Goods from Argentina, Mexico, the Republic of Korea, and Russia: Factual Errors in Petitions, dated October 8, 2021; and Oil Country Tubular Goods from Argentina, Mexico, the Republic of Korea, and Russia: Comments on Petitioners Standing, dated October 15, 2021; and Oil Country Tubular Goods from Mexico: Reply Comments on Petitioners Standing, dated October 20, 2021. In addition, on October 21, 2021, Commerce met via video conference with counsel to Tenaris USA to discuss its industry support comments. See Memorandum, Petitions for the Imposition of Antidumping and Countervailing Duties on Imports of Oil Country Tubular Goods from Argentina, Mexico, the Republic of Korea, and the Russian Federation, dated October 21, 2021.
23 See Petitioners Letter, Oil Country Tubular Goods from Argentina, Mexico, Russia, and the Republic of Korea: Response to Tenaris Submission Concerning Petitioners Standing, dated October 18, 2021 Petitioners Letter.
24 See Memorandum, Countervailing Duty Petition on Oil Country Tubular Goods from the Russian Federation: Consultations with Officials from the Government of the Russian Federation, dated October 21, 2021; see also GORs Letter, Countervailing Duty Investigation of Certain Oil Country Tubular Goods from the Russian Federation: Consultations, dated October 25, 2021.
25 See TMKs Letter, Oil Country Tubular Goods from Russia: Comments on Petitioners Standing, dated October 21, 2021.
26 See Tenaris USAs Letter, Oil Country Tubular Goods from Argentina, Mexico, the Republic of Korea, and Russia: Comments on Petitioners Second General Issues Questionnaire Response, dated October 22, 2021. We note that, though Tenaris USA opposes the Petitions, it has not provided any production data for Commerce to include in the industry support calculation. See Country-Specific CVD Initiation Checklists at Attachment II at footnote 47.
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the petitioners responded to TMKs comments.27
Based on the information provided in the Petitions, the First General Issues Supplement, Petitioners Letter, the Second General Issues Supplement, Petitioners Letter II, and other information readily available to Commerce, we determine that the domestic producers and workers have met the statutory criteria for industry support under section 702c4Ai of the Act because the domestic producers or workers who support the Petitions account for at least 25 percent of the total production of the domestic like product.28 Because the Petitions and supplemental submissions did not establish support from domestic producers or workers accounting for more than 50 percent of the total production of the domestic like product, Commerce was required to take further action in order to evaluate industry support.29 In this case, Commerce was able to rely on other information, in accordance with section 702c4Di of the Act, to determine industry support.30 Based on information provided in the Petitions, the First General Issues Supplement, Petitioners Letter, the Second General Issues Supplement, Petitioners Letter II, and other information readily available to Commerce, the domestic producers and workers have met the statutory criteria for industry support under section 702c4Aii of the Act because the domestic producers or workers who support the Petitions account for 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 Petitions.31 We note that, even if all other U.S. producers of OCTG oppose the Petitions including Tenaris USA, the supporters of the Petitions would still have the requisite level of industry support pursuant to section 702c4Aii of the Act.32
Accordingly, Commerce determines that the Petitions were filed on behalf of the domestic industry within the meaning of section 702b1 of the Act.33
27 See Petitioners Letter, Oil Country Tubular Goods from Russia: Response to TMKs Comments on Petitioners Standing, dated October 22, 2021
Petitioners Letter II.
28 See Country-Specific CVD Initiation Checklists at Attachment II.
29 See section 702c4D of the Act.
30 See Country-Specific CVD Initiation Checklists at Attachment II.
31 Id.
32 Id.
33 Id.
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Injury Test Because Korea and Russia are Subsidies Agreement Countries within the meaning of section 701b of the Act, section 701a2 of the Act applies to these investigations.
Accordingly, the ITC must determine whether imports of the subject merchandise from Korea and/or Russia materially injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation The petitioners allege that imports of the subject merchandise are benefitting from countervailable subsidies and that such imports threaten to cause material injury to the U.S. industry producing the domestic like product. In addition, the petitioners allege that subject imports exceed the negligibility threshold provided for under section 77124A of the Act.34
The petitioners contend that the industrys injured condition is illustrated by a significant and increasing volume of subject imports;
reduced market share; underselling and price suppression; lost sales and revenues; declines in production, U.S.
shipments, and capacity utilization;
decline in employment; and adverse impact on the domestic industrys financial performance.35 We assessed the allegations and supporting evidence regarding material injury, threat of material injury, causation, as well as negligibility, and we have determined that these allegations are properly supported by adequate evidence and meet the statutory requirements for initiation.36
Initiation of CVD Investigations Based upon our examination of the Petitions on OCTG from Korea and Russia, including supplemental information provided by the petitioners, we find that the Petitions meet the requirements of section 702 of the Act.
Therefore, we are initiating CVD
investigations to determine whether imports of OCTG from Korea and Russia benefit from countervailable subsidies conferred by the GOK and the GOR, respectively. In accordance with section 703b1 of the Act and 19 CFR
34 See Petitions at Volume I at 28 and Exhibit I22.
35 Id. at 12, 2848 and Exhibits I1, I5, I6, I8, I9, I11, I13, I14, I20, I22 through I34;
see also First General Issues Supplement at 10.
36 See Country-Specific CVD Initiation Checklists at Attachment III, Analysis of Allegations and Evidence of Material Injury and Causation for the Antidumping and Countervailing Duty Petitions Covering Oil Country Tubular Goods from Argentina, Mexico, the Republic of Korea, and the Russian Federation.
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