[Federal Register Volume 59, Number 191 (Tuesday, October 4, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-24541]
[[Page Unknown]]
[Federal Register: October 4, 1994]
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DEPARTMENT OF COMMERCE
[A-580-824]
Preliminary Determination of Sales at Less Than Fair Value:
Certain Carbon Steel Butt-Weld Pipe Fittings From South Korea
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: October 4, 1994.
FOR FURTHER INFORMATION CONTACT:
Thomas McGinty or Peter Wilkniss, Office of Countervailing
Investigations, Import Administration, U.S. Department of Commerce,
14th Street and Constitution Avenue, N.W., Washington, D.C. 20230;
telephone (202) 482-5055 and (202) 482-0588, respectively.
Preliminary Determination: We preliminarily determine that imports
of certain carbon steel butt-weld pipe fittings (``pipe fittings'')
from South Korea are being, or are likely to be, sold in the United
States at less than fair value, as provided in section 733 of the
Tariff Act of 1930, as amended (the Act). The estimated margins are
shown in the ``Suspension of Liquidation'' section of this notice.
Case History
Since the initiation of this investigation on March 21, 1994, (59
FR 14148, March 25, 1994), the following events have occurred.
On April 14, 1994, the U.S. International Trade Commission (ITC)
issued an affirmative preliminary injury determination (see, ITC
Investigation No. 731-TA-692).
In accordance with 19 CFR 353.42(b)(1994), on April 29, 1994, the
Department of Commerce (the Department) issued its antidumping duty
questionnaire to Taekwang Bend Ind. Co., Inc. (Taekwang), the South
Korean company which accounts for more than 60 percent of all exports
of the subject merchandise to the U.S. during the POI. The Department
has received no response to this questionnaire.
On June 30, 1994, petitioner requested a 50-day postponement of the
preliminary determination. The request was granted by the Department on
July 19, 1994 (59 FR 37961, July 26, 1994).
Scope of Investigation
The products covered by this investigation are certain carbon steel
butt-weld pipe fittings (``pipe fittings'') having an inside diameter
of less than fourteen inches (355 millimeters), imported in either
finished or unfinished condition. Pipe fittings are formed or forged
steel products used to join pipe sections in piping systems were
conditions require permanent welded connections, as distinguished from
fittings based on other methods of fastening (e.g., threaded, grooved,
or bolted fittings). Butt-weld fittings come in a variety of shapes
which include ``elbows,'' ``tees,'' ``caps,'' and ``reducers.'' The
edges of finished pipe fittings are beveled, so that when a fitting is
placed against the end of a pipe (the ends of which have also been
beveled), a shallow channel is created to accommodate the ``bead'' of
the weld which joins the fitting to the pipe. These pipe fittings are
currently classifiable under subheading 7307.93.3000 of the Harmonized
Tariff Schedule of the United States (``HTSUS'').
Although the HTSUS subheading is provided for convenience and
customs purposes, our written description of the scope of this
proceeding is dispositive.
Period of Investigation
The period of investigation is September 1, 1993, through February
28, 1994.
Best Information Available
Taekwang did not respond to our questionnaire. Therefore, we have
based our preliminary determination on best information available (BIA)
pursuant to section 776(c) of the Act, which provides that the
Department shall use BIA when a company identified by the Department as
a respondent refuses to provide requested information.
In determining what rate to use as BIA, the Department follows a
two-tiered methodology, whereby the Department normally assigns lower
margins to those respondents who cooperated in an investigation and
margins based on more adverse assumptions for those respondents who did
not cooperate in an investigation. According to this methodology, as
outlined in the Final Determination of Sales at Less Than Fair Value:
Antifriction Bearings, Other than Tapered Roller Bearings, from
Germany, 54 FR 18992w, 19033 (May 3, 1989), when a company refuses to
provide the information requested in the form required, or otherwise
significantly impedes the Department's investigation, it is appropriate
for the Department to assign to that company the higher of (1) the
highest margin alleged in the petition, or (2) the highest calculated
rate of any respondent in the investigation. (See Allied Signal
Aerospace Co. v. United States, 996 F. 2d 1185, 1191-92 (Fed. Cir.
1993).) Because there were no cooperative respondents in this
investigation, we are assigning to all exporters, as BIA, the highest
margin calculated in the petition, as adjusted for methodological
errors as explained in the Department's initiation notice, 207.89
percent.
Suspension of Liquidation
In accordance with section 733(d)(1) of the Act, we are directing
the Customs Service to suspend liquidation of all entries of pipe
fittings from South Korea that are entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. The Customs Service shall require a
cash deposit or posting of a bond equal to the estimated preliminary
dumping margin, as shown below. The suspension of liquidation will
remain in effect until further notice.
------------------------------------------------------------------------
Margin
Manufacturer/Producer/Exporter percentage
------------------------------------------------------------------------
All companies............................................... 207.89
------------------------------------------------------------------------
ITC Notification
In accordance with section 733(f) of the Act, we have notified the
ITC of our determination. If our final determination is affirmative,
the ITC will determine whether these imports are materially injuring,
or threaten material injury to, the U.S. industry before the later of
120 days after the date of this preliminary determination or 45 days
after our final determination.
Public Comment
In accordance with 19 CFR 353.38(b), we will hold a public hearing,
if requested, to afford interested parties an opportunity to comment on
arguments raised in case or rebuttal briefs. Interested parties who
wish to request a hearing, or to participate if one is requested, must
submit a written request to the Assistant Secretary for Import
Administration, U.S. Department of Commerce, Room B-099, within ten
days of the publication of this notice. Tentatively, the hearing will
be held on November 28, 1994, at 1:00 p.m. at the U.S. Department of
Commerce, Room 1414, 14th Street and Constitution Avenue, N.W.,
Washington, D.C. 20230. Parties should confirm by telephone the time,
date, and place of the hearing 48 hours before the scheduled time.
Requests should contain: (1) The party's name, address, and
telephone number; (2) the number of participants; and (3) a list of the
issues to be discussed. In accordance with 19 CFR 353.38, case briefs
or other written comments of at least five copies must be submitted to
the Assistant Secretary for Import Administration no later than
November 16, 1994, and rebuttal briefs, no later than November 23,
1994. In accordance with 19 CFR 353.38(b), oral presentations will be
limited to issues raised in the briefs.
If this investigation proceeds normally, we will make our final
determination within 75 days of the signing of this preliminary
determination.
This determination is published pursuant to section 733(f) of the
Act and 19 CFR 353.15(a)(4).
Dated: September 26, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-24541 Filed 10-3-94; 8:45 am]
BILLING CODE 3510-DS-M
