Suspension of Antidumping Investigation: Certain Oil Country Tubular Goods From Ukraine
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Citation: "79 FR 41959"
Document Number: "A-823-815"
"Notices"
SUMMARY: The
DATES: Effective Date:
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION: On
The Department and a representative of Interpipe initialed a proposed agreement suspending this investigation on
The Department and a representative of Interpipe signed the final suspension agreement on
Scope of Investigation
For a complete description of the scope of the Suspension Agreement, see Suspension Agreement, at Appendix A.
Suspension of Investigation
The Department consulted with the parties to the proceeding and, in accordance with section 734(b) of the Act, we have determined that the Suspension Agreement covers substantially all imports of the subject merchandise and will eliminate completely sales at LTFV of imported subject merchandise. Moreover, in accordance with section 734(d) of the Act, we find that the Suspension Agreement is in the public interest, and that the Suspension Agreement can be monitored effectively. See Percentage of Exports Memorandum and Public Interest and Effective Monitoring Assessment Memorandum, both dated
Pursuant to section 734(f)(2)(A) of the Act, the suspension of liquidation of all entries of OCTG from
Administrative Protective Order Access
The Administrative Protective Order ("APO") the Department granted in the investigation segment of this proceeding remains in place. While the investigation is suspended, parties subject to the APO may retain, but may not use, information received under that APO. All parties wishing access to business proprietary information submitted during the administration of the Suspension Agreement must submit new APO applications in accordance with the Department's regulations currently in effect. See section 777(c)(1) of the Act; 19 CFR 351.103. An APO for the administration of the Suspension Agreement will be placed on the record within five days of the date of publication of this notice in the
We are publishing this notice in accordance with section 734(f)(1)(A) of the Act and 19 CFR 351.208(g)(2).
Dated:
Acting Assistant Secretary for Enforcement and Compliance.
Attachment
ANNEX I
Agreement Suspending the Antidumping Duty Investigation on Certain Oil Country Tubular Goods from
Pursuant to section 734(b) of the Tariff Act of 1930, as amended (19 U.S.C.
(A) Product Coverage
For purposes of this Agreement, the merchandise covered is OCTG, as described in Appendix A.
(B) U.S. Import Coverage
The signatory producers/exporters, collectively, are the producers and exporters in
In reviewing the operation of the Agreement for the purpose of determining whether this Agreement has been violated or is no longer in the public interest, the Department will consider imports into
(C) Basis of the Agreement
On and after the effective date of the Agreement, each signatory producer/exporter individually agrees to make any necessary price revisions to eliminate completely any amount by which the normal value ("NV") of this merchandise exceeds the U.S. price of its merchandise subject to the Agreement. For this purpose, the Department will determine the NV in accordance with section 773(e) of the Act and U.S. price in accordance with section 772 of the Act. For details of the Department's calculation methodology under this Agreement, See Appendix B.
(1) For the period from the effective date of this Agreement through the release of the first NVs, each signatory producer/exporter agrees not to sell its merchandise subject to this Agreement in
(2) For all sales occurring on or after the date of issuance of the first NVs, through
FOOTNOTE 1 The issuance of the NVs for any given signatory may be delayed for reasons including: (1) issues related to the underlying antidumping duty investigation, as applicable; (2) to allow sufficient time for signatories to respond to the Department's request for sales and cost data; and/or (3) to resolve issues raised in comments from interested parties or by the Department. In accordance with section 773(f) of the Act, the Department will examine relevant prices and costs and, for any sales period, may disregard or adjust particular prices or costs when the prices are not in the ordinary course of trade, the costs are not in accordance with the generally-accepted accounting principles, the costs do not reasonably reflect the costs associated with the production and sale of the merchandise, or in other situations provided for in the Act or the Department's regulations. Examples of possible areas in which adjustments may be necessary include, but are not limited to, costs related to energy, depreciation, transactions among affiliates, barter transactions, as well as items that are not recognized by the home country's generally accepted accounting principles. END FOOTNOTE
(3) For all sales occurring after the Interim Period, each signatory producer/exporter issued NVs by the Department agrees not to sell its merchandise subject to this Agreement to any unaffiliated purchaser in
FOOTNOTE 2 See Footnote #1. END FOOTNOTE
(D) Data Reporting and Monitoring
Each signatory producer/exporter will supply to the Department all information that the Department decides is necessary to ensure that the producer/exporter is in full compliance with the terms of the Agreement. As explained below, the Department will provide each signatory producer/exporter a detailed request for information and prescribe a required format and method of data compilation, not later than the beginning of each reporting period. As noted in Section C(2) of this Agreement, the first NVs issued for the signatory producer/exporter may be based on sales and cost information submitted by the signatory in the underlying antidumping duty investigation, and the resulting NVs issued will apply to sales occurring between the issuance date of the final NVs and
(1) Sales Information
The Department will require each producer/exporter to report each sale of the merchandise subject to the Agreement, either directly or indirectly to unaffiliated purchasers in
The first report of sales data, pursuant to Section C(3) of this Agreement, shall be submitted to the Department, in the prescribed format and using the prescribed method of data compilation, not later than
(2) Cost Information
Signatory producers/exporters must request NVs for all subject merchandise that will be sold in
The first report of cost data, pursuant to Section C(3) of this Agreement, shall be submitted to the Department not later than
(3) Special Adjustment of Normal Value
If the Department determines that the NV it determined for a previous semi-annual period was erroneous because the reported costs for that period were inaccurate or incomplete, or for any other reason, the Department may adjust NV in a subsequent period or periods, unless the Department determines that Section F of the Agreement applies.
(4) Verification
Each producer/exporter agrees to permit full verification of all cost and sales information semi-annually, or more frequently, as the Department deems necessary.
(5) Bundling or Other Arrangements
Producers/exporters agree not to circumvent the Agreement. In accordance with the dates set forth in Section D(1) of this Agreement, producers/exporters will submit a written statement to the Department certifying that the sales reported herein were not, or are not part of or related to, any bundling arrangement, on-site processing arrangement, discounts/free goods/financing package, swap or other exchange where such arrangement is designed to circumvent the basis of the Agreement.
Where there is reason to believe that such an arrangement does circumvent the basis of the Agreement, the Department will request producers/exporters to provide within 15 days all particulars regarding any such arrangement, including, but not limited to, sales information pertaining to covered and non-covered merchandise that is manufactured or sold by producers/exporters. The Department will accept written comments, not to exceed 30 pages, from all parties no later than 15 days after the date of receipt of such producer/exporter information.
If the Department, after reviewing all submissions, determines that such an arrangement circumvents the basis of the Agreement, it may, as it deems most appropriate, utilize one of two options: (1) the amount of the effective price discount resulting from such arrangement shall be reflected in the NV in accordance with Section D(3) of this Agreement, or (2) the Department shall determine that the Agreement has been violated and take action according to the provisions under Section F of this Agreement.
(6) Rejection of Submissions
The Department may reject any information submitted after the deadlines set forth in this section or any information which it is unable to verify to its satisfaction. If information is not submitted in a complete and timely fashion, or is not fully verifiable, the Department may calculate the NV, and/or U.S. price, based on facts otherwise available, as it determines appropriate, unless the Department determines that Section F of this Agreement applies.
(E) Disclosure and Comment
(1) The Department may make available to representatives of each interested party to the proceeding, under appropriately drawn administrative protective orders, business proprietary information submitted to the Department during the reporting period as well as the results of its analysis under section 777 of the Act.
(2) For sales during the Interim Period, the Department will disclose to each producer/exporter being issued NVs the preliminary results and methodology of the Department's calculations of the NVs within 15 days after the effective date of this Agreement, subject to the possible constraints noted in footnote #1 of Section C(2) of this Agreement. At that time, the Department may also make available such information to the interested parties to the proceeding in accordance with this section.
(3) Normally, by
(4) Not later than five days after the dates of disclosure under Sections E(2) and E(3), respectively, of this Agreement, the parties to the proceeding may submit written comments to the Department, not to exceed 15 pages. Not later than three days after written comments are due, the parties to the proceeding may submit written rebuttal comments to the Department, not to exceed 15 pages. After reviewing these submissions, the Department will provide to each producer/exporter its final NVs, as provided in Sections C(2) and C(3), respectively, of this Agreement. In addition, the Department may provide such information to interested parties, as specified in this section.
(F) Violations of the Agreement
If the Department determines that the Agreement is being or has been violated or no longer meets the requirements of sections 734(b) or (d) of the Act, the Department shall take action it determines appropriate under section 734(i) of the Act and the Regulations.
(G) Other provisions
In entering into the Agreement, the signatory producers/exporters do not admit that any sales of merchandise subject to the Agreement have been made at less than fair value.
(H) Termination or Withdrawal
This Agreement shall terminate three years after the effective date of this Agreement, on
Before such termination described above, the Department or any of the Signatories may withdraw from the Agreement at any time upon notice, respectively, to the Signatories or the Department. Withdrawal shall be effective 60 days after such notice is given to the Department.
Upon withdrawal, the Department shall follow the procedures outlined in section 734(i)(1) of the Act.
(I) Definitions
For purposes of the Agreement, the following definitions apply:
(1) "U.S. price" means the export price or constructed export price at which merchandise is sold by the producer or exporter to the first unaffiliated purchaser in
(2) "Normal value" means the constructed value ("CV") of the merchandise, as determined by the Department under section 773 of the Act and the corresponding sections of the Department's regulations, and as adjusted in accordance with Appendix B to this Agreement.
(3) "Producer/Exporter" means (1) the foreign manufacturer or producer, (2) the foreign producer or reseller which also exports, and (3) the affiliated person by whom or for whose account the merchandise is imported into
(3) "Date of sale" means the date of the invoice as recorded in the exporter's or producer's records kept in the ordinary course of business, unless the Department determines that a different date better reflects the date on which the exporter or producer establishes the material terms of sale, as determined by the Department under its regulations.
The effective date of this Agreement is
For Ukraine Producers/Exporters:
Counsel for Interpipe /3/
FOOTNOTE 3
Date:
For U.S.
Acting Assistant Secretary for, Enforcement and Compliance.
Date:
Appendix A: Product Coverage
Agreement Suspending the Antidumping Investigation on Certain Oil Country Tubular Goods from
The merchandise subject to this Agreement is certain OCTG from
Excluded from the scope of this Agreement 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 this Agreement is currently classified in the Harmonized Tariff Schedule of
The merchandise subject to this Agreement 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 product coverage is dispositive.
Appendix B: Principles of Cost
General Framework
The cost information reported to the Department that will form the basis of the normal value ("NV") calculations for purposes of the Agreement must be: /4/
FOOTNOTE 4 See Footnote #1 in Section C(2) of this Agreement. END FOOTNOTE
* Comprehensive in nature and based on a reliable accounting system (i.e., a system based on well-established standards that can be tied to the audited financial statements);
* Calculated on a semi-annual weighted-average basis of the plants or cost centers manufacturing the product;
* Based on fully-absorbed costs of production, including any downtime;
* Valued in accordance with generally-accepted accounting principles; and
* Reflective of appropriately allocated common costs so that the costs necessary for the manufacturing of the product are not absorbed by other products.
Additionally, a separate figure should be reported for each major cost component making up the cost of production.
Cost of Manufacturing
Costs of manufacturing ("COM") are reported by major cost category and for major stages of production. Weighted-average costs are used for a product that is produced at more than one facility, based on the product's cost at each facility and relative production quantities.
Direct materials costs include the acquisition costs of all materials that are identified as part of the finished product and may be traced to the finished product in an economically feasible way. In contrast to indirect materials, direct materials are applied and assigned directly to a finished product. Direct materials costs should include transportation charges, import duties, and other expenses normally associated with obtaining the materials that become an integral part of the finished product.
Direct labor costs are the labor costs identified with a specific product. These costs are not allocated among products except when two or more products are produced at the same cost center. Direct labor costs should include salary, bonus and overtime pay, training expenses, and all fringe benefits. Any contracted-labor expense should reflect the actual billed cost.
Variable manufacturing overhead costs include those production costs, other than direct materials or direct labor, that generally vary in total with changes in the volume of merchandise produced at a given level of operations. Variable manufacturing overhead costs may include indirect materials (e.g., supplies used in the manufacturing process), indirect labor (e.g. supervisory labor paid on an hourly basis), utilities (e.g., energy), and other variable overhead costs. Because variable overhead costs are typically incurred for an entire production line or factory, the costs must be allocated to the products produced using a reasonable basis.
Fixed manufacturing overhead costs include those production costs that generally do not vary in total with changes in the volume of merchandise produced at a given level of operations. Fixed manufacturing overhead costs may include the costs incurred for building or equipment rental, depreciation, supervisory labor paid on a salary basis, plant property taxes, and factory administrative costs. In addition, fixed manufacturing overhead costs include research and development ("R&D") costs which relate specifically to the subject merchandise.
Cost of Production
Cost of production ("COP") is equal to the cost of materials and fabrication or other processing of any kind employed in producing the merchandise plus an amount for selling, general and administrative expenses ("SG&A"), and the cost of all containers and coverings, in the home market ("HM"). /5/
FOOTNOTE 5 If for some reason the home market is not viable, for part or all of the applicable costs and expenses references to home market costs and/or expenses in this Appendix B are understood to refer to third-country market costs and/or expenses. END FOOTNOTE
SG&A expenses are those expenses incurred for the operation of the corporation as a whole and not directly related to the manufacture of a particular product. They include corporate general and administrative expenses, financing expenses, and general research and development expenses. Additionally, direct and indirect selling expenses incurred in the HM for sales of the product under investigation are included. Such expenses are allocated to COM using a ratio of SG&A costs.
Constructed Value
Constructed value ("CV") is equal to the cost of materials and fabrication or other processing of any kind employed in producing the merchandise plus an amount for SG&A, the cost of all containers and coverings for exportation to
Calculation of Suspension Agreement Normal Values
NVs (for purposes of the Agreement) are calculated by adjusting the CV and are provided for both EP and CEP transactions. In effect, expenses uniquely associated with the covered products sold in the HM are subtracted from the CV, and such expenses uniquely associated with the covered products sold in
"Export Price"--Generally, a U.S. sale is classified as an export price sale when the first sale to an unaffiliated person occurs before the goods are imported into
"Constructed Export Price"--Generally, a U.S. sale is classified as a constructed export price sale when the first sale to an unaffiliated person occurs after importation. However, if the first sale to an unaffiliated person is made by a person in
HM direct selling expenses are expenses that are incurred as a direct result of a sale. These include such expenses as commissions, advertising, discounts and rebates, credit, warranty expenses, freight costs, etc. Certain direct selling expenses are treated individually, including:
--Commission expenses, i.e., payments to unaffiliated parties for sales in the HM.
--Credit expenses, i.e., expenses incurred for the extension of credit to HM customers.
--Movement expenses, e.g., foreign inland freight and insurance expenses, warehousing, and foreign brokerage, handling and port charges.
U.S. direct selling expenses are the same as HM direct selling expenses except that they are incurred for sales in U.S. indirect selling expenses include general fixed expenses incurred by the U.S. sales subsidiary or affiliated exporter for sales to
The EP and CEP NVs are calculated as follows:
For EP Transactions
+ Direct Materials
+ Direct Labor
+ Factory Overhead
= Cost of Manufacturing (COM)
+ Home Market SG&A
= Cost of Production (COP)
+ U.S. Packing
+ Profit
= Constructed Value
+ U.S. Direct Selling Expense
+ U.S. Commission Expense
+ U.S. Movement Expense
+ U.S. Credit Expense
- HM Direct Selling Expense
- HM Commission Expense [1]
- HM Credit Expense
= NV for EP Sales
[1] If the company does not have HM commissions, HM indirect expenses are subtracted only up to the amount of the U.S. commissions.
For CEP Transactions
+ Direct Materials
+ Direct Labor
+ Factory Overhead
= Cost of Manufacturing (COM)
+ Home Market SG&A
= Cost of Production (COP)
+ U.S. Packing
+ Profit
= Constructed Value
+ U.S. Direct Selling Expense
+ U.S. Indirect Selling Expense
+ U.S. Commission Expense
+ U.S. Movement Expense
+ U.S. Credit Expense
+ U.S. Further-Manufacturing Expenses (if any)
+ CEP Profit
- HM Direct Selling Expense
- HM Commission Expense [1]
- HM Credit Expense
= NV for CEP Sales
[1] If the company does not have HM commissions, HM indirect expenses are subtracted only up to the amount of the U.S. commissions.
Appendix C: Special Adjustment for Interim Period Normal Values
Unique events occurred in
In order to calculate the Interim Period NVs from the period of investigation ("POI") costs and expenses reported in the underlying investigation, the Department intends to adjust Interpipe's Ukrainian Hryvnia ("UAH")-denominated costs and selling expenses to make them as contemporaneous as possible with the exchange rate that will be used to convert the UAH-denominated NVs to U.S. dollar-denominated NVs upon issuance. The Department will apply to the POI costs and expenses an adjustment factor that accounts for the movement in the Producer Price Index ("PPI") between the average for the POI and the latest month for which there is data reported in the
[FR Doc. 2014-16876 Filed 7-17-14;
BILLING CODE 3510-DS-P
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