<NOTICE>
DEPARTMENT OF COMMERCE
<SUBAGY>International Trade Administration</SUBAGY>
<DEPDOC>[C-489-502, C-489-823, C-489-817, C-489-834]</DEPDOC>
<SUBJECT>Circular Welded Carbon Steel Standard Pipe and Tube Products From the Republic of Türkiye; Welded Line Pipe From the Republic of Türkiye; Certain Oil Tubular Goods From the Republic of Türkiye; and Large Diameter Welded Pipe From the Republic of Türkiye: Preliminary Results of Countervailing Duty Changed Circumstances Reviews</SUBJECT>
<HD SOURCE="HED">AGENCY:</HD>
Enforcement and Compliance, International Trade Administration, Department of Commerce.
<SUM>
<HD SOURCE="HED">SUMMARY:</HD>
The U.S. Department of Commerce (Commerce) preliminarily determines that Borusan Birleşik Boru Fabrikalari Sanayi ve Ticaret A.S. (Borusan Boru) is the successor-in-interest to Borusan Mannesmann Boru Sanayi ve Ticaret A.S. (BMB) in the context of the countervailing duty (CVD) orders on circular welded carbon steel standard pipe and tube products (standard pipe), welded line pipe (WLP), certain oil tubular goods (OCTG), and large diameter welded pipe (LDWP) from the Republic of Türkiye (Türkiye). Interested parties are invited to comment on these preliminary results.
</SUM>
<DATES>
<HD SOURCE="HED">DATES:</HD>
Applicable September 10, 2024.
</DATES>
<FURINF>
<HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
Ajay K. Menon, AD/CVD Operations, Office IX, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-0208.
</FURINF>
<SUPLINF>
<HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
<HD SOURCE="HD1">Background</HD>
On May 15, 1986, March 7, 1986, December 1, 2015, September 10, 2014, and May 2, 2019, respectively, Commerce published in the
<E T="04">Federal Register</E>
CVD orders on standard pipe, WLP, OCTG, and LDWP.
<SU>1</SU>
<FTREF/>
On January 9, 2024, Borusan Boru requested that, pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended (the Act), 19 CFR 351.216, and 19 CFR 351.221(c)(3), Commerce conduct expedited changed circumstances reviews (CCR) to determine that Borusan Boru is the successor-in-interest to BMB and, as a result of these determinations, to: (1) assign it the cash deposit rates currently applicable to BMB pursuant to
<E T="03">Standard Pipe CVD Order, Welded Line Pipe CVD Order,</E>
and
<E T="03">OCTG CVD Order;</E>
and (2) continue to exclude it from
<E T="03">LDWP CVD Order.</E>
<SU>2</SU>
<FTREF/>
In its request, Borusan Boru stated that it undertook an official, legal name change from Borusan Mannesmann Boru Sanayi ve Ticaret A.S. (BMB) to Borusan Birleşik Boru Fabrikalari Sanayi ve Ticaret A.S. (Borusan Boru) following the termination of its partnership with Salzgitter Mannesmann GmbH (Salzgitter) in 2023, but that the company experienced no significant changes which would impact the extent of its subsidization.
<SU>3</SU>
<FTREF/>
No interested parties filed comments opposing the CCR request.
<FTNT>
<SU>1</SU>
<E T="03">See Countervailing Duty Order: Certain Welded Carbon Steel Pipe and Tube Products from Turkey,</E>
51 FR 7984 (March 7, 1986) (
<E T="03">Standard Pipe CVD Order</E>
);
<E T="03">Welded Line Pipe from the Republic of Turkey: Countervailing Duty Order,</E>
80 FR 75054 (December 1, 2015) (
<E T="03">Welded Line Pipe CVD Order</E>
);
<E T="03">Certain Oil Country Tubular Goods from India and the Republic of Turkey: Countervailing Duty Orders and Amended Affirmative Final Countervailing Duty Determination for India,</E>
79 FR 53688 (September 10, 2014) (
<E T="03">OCTG CVD Order</E>
); and
<E T="03">Large Diameter Welded Pipe from the Republic of Turkey: Countervailing Duty Order,</E>
84 FR 18771 (May 2, 2019) (
<E T="03">LDWP CVD Order</E>
).
</FTNT>
<FTNT>
<SU>2</SU>
<E T="03">See</E>
Borusan Boru's Letter, “Notification of Company Name Change and Request for Changed Circumstances Review, If Deemed Necessary: Name Change of Borusan Mannesmann Boru Sanayi ve Ticaret A.S. and Borusan Mannesmann Pipe U.S.,” dated January 8, 2024 (Borusan Boru's CCR Request).
</FTNT>
<FTNT>
<SU>3</SU>
<E T="03">Id.</E>
at 4.
</FTNT>
On February 26, 2024, Commerce published the notice initiating these CCRs to consider whether Borusan Boru is the successor-in-interest to BMB.
<SU>4</SU>
<FTREF/>
On April 22, 2024, we issued a supplemental questionnaire to Borusan Boru, to which we received a timely response on May 8, 2024.
<SU>5</SU>
<FTREF/>
<FTNT>
<SU>4</SU>
<E T="03">See Circular Welded Carbon Steel Standard Pipe and Tube Products from the Republic of Turkey; Welded Line Pipe from the Republic of Turkey; Certain Oil Tubular Goods from the Republic of Turkey; and Large Diameter Welded Pipe from the Republic of Turkey: Notice of Initiation of Antidumping Duty and Countervailing Duty Changed Circumstances Reviews,</E>
89 FR 14052 (February 26, 2024) (
<E T="03">Initiation Notice</E>
).
</FTNT>
<FTNT>
<SU>5</SU>
<E T="03">See</E>
Borusan Boru's Letter, “Supplemental Questionnaire Response,” dated May 8, 2024 (Borusan Boru's SQR).
</FTNT>
<HD SOURCE="HD1">Scope of the Orders</HD>
The merchandise covered by these orders is standard pipe, WLP, OCTG, and LDWP from Türkiye. For a complete description of the scope of each of these orders,
<E T="03">see</E>
the appendix to this notice.
<SU>6</SU>
<FTREF/>
<FTNT>
<SU>6</SU>
<E T="03">See Standard Pipe CVD Order,</E>
51 FR at 7984;
<E T="03">Welded Line Pipe CVD Order,</E>
80 FR at 75054;
<E T="03">OCTG CVD Order,</E>
79 FR at 53689l; and
<E T="03">LDWP CVD Order,</E>
84 FR at 18773.
</FTNT>
<HD SOURCE="HD1">Preliminary Results</HD>
In these CCRs, pursuant to section 751(b) of the Act, Commerce conducted a successor-in-interest analysis. In a CVD CCR, Commerce will normally make an affirmative successorship finding where there is no evidence of significant changes in the respondent's operations, ownership, and corporate or legal structure during the relevant period (
<E T="03">i.e.,</E>
the “look-back window”) that could have affected the respondent's subsidy levels.
<SU>7</SU>
<FTREF/>
Where a significant change has occurred, Commerce will assess whether that change affects the nature and extent of the respondent's subsidization and, therefore, whether the respondent is the same subsidized entity as the predecessor, with reference to one or more of the following objective criteria: (1) continuity in the cross-owned or consolidated respondent company's financial assets and liabilities; (2) continuity in its production and commercial activities; and (3) continuity in the level of the government's involvement in the respondent's operations or financial structure.
<FTNT>
<SU>7</SU>
<E T="03">See Certain Pasta from Turkey: Preliminary Results of Countervailing Duty Changed Circumstances Review,</E>
74 FR 47225 (September 15, 2009) (
<E T="03">Pasta from Türkiye</E>
), unchanged in
<E T="03">Certain Pasta from Turkey: Notice of Final Results of Antidumping Duty Changed Circumstances Review,</E>
74 FR 54022 (October 21, 2009). In this instance, the relevant look back period is December 31, 2022 (the end of the period of review associated with the most recent opportunity to request a review), to January 8, 2024 (the date of Borusan Boru's CCR request).
</FTNT>
Where Commerce makes an affirmative CVD successorship finding, the successor's merchandise will be entitled to enter under the predecessor's cash deposit rate.
<SU>8</SU>
<FTREF/>
Here, as detailed below, there is no evidence of significant changes between BMB and successor in interest in Borusan Boru's operations, ownership or corporate or legal structure during the look back period which could have impacted the successor in interest company's subsidy levels.
<SU>9</SU>
<FTREF/>
That is, record evidence indicates that despite significant changes, Borusan Boru essentially operates as the same subsidized entity as its predecessor with respect to subject merchandise.
<FTNT>
<SU>8</SU>
<E T="03">See Notice of Initiation and Preliminary Results of Changed Circumstances Reviews: Certain Passenger Vehicle and Light Truck Tires from the People's Republic of China,</E>
85 FR 5193 (January 29, 2020), unchanged in
<E T="03">Certain Passenger Vehicle and Light Truck Tires from the People's Republic of China: Final Results of Changed Circumstances Reviews,</E>
85 FR 14638 (March 13, 2020).
</FTNT>
<FTNT>
<SU>9</SU>
<E T="03">See</E>
Borusan Boru's CCR Request; and Borusan Boru's SQR.
</FTNT>
<HD SOURCE="HD1">Continuity in Borusan Boru's Ownership</HD>
Borusan Boru provided documentation demonstrating that its ownership was unchanged during the “look-back window.”
<SU>10</SU>
<FTREF/>
However, Borusan Boru stated that the ownership of its majority shareholder, BMB Holding A.S. (BMBH), changed following the termination of BMBH's partnership with Salzgitter in November 2023.
<SU>11</SU>
<FTREF/>
According to Borusan Boru, in Salzgitter's place, Borusan Istikbal Ticaret T.A.S. (Borusan Istikbal), an existing affiliated company, became one of the owners of BMBH.
<SU>12</SU>
<FTREF/>
In recent proceedings, Commerce has examined, but did not attribute to BMB, subsidies received by Borusan Istikbal.
<SU>13</SU>
<FTREF/>
Additionally, Borusan Boru stated that there were no changes with respect to the Government of Türkiye's (GOT) involvement with the Borusan Group of companies, including Borusan Istikbal.
<SU>14</SU>
<FTREF/>
Therefore, consistent with
<E T="03">Pasta from Türkiye,</E>
we determine that the inclusion of Borusan Istikbal in the ownership of BMBH does not constitute a significant change that could affect the extent of Borusan Boru's subsidization.
<FTNT>
<SU>10</SU>
<E T="
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Preview showing 10k of 28k characters.
Full document text is stored and available for version comparison.
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
This text is preserved for citation and comparison.