[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: 94-24542]
[[Page Unknown]]
[Federal Register: October 4, 1994]
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DEPARTMENT OF COMMERCE
[A-557-808]
Preliminary Determination of Sales at Less Than Fair Value:
Certain Carbon Steel Butt-Weld Pipe Fittings From Malaysia
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, NW.,
Washington, DC 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
Malaysia 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-691).
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 Malaysia Mining Corporation Pipe & Fitting Sdn Bhd
(MMCPNF), the Malaysian company identified by both petitioner and the
U.S. Embassy in Malaysia (by cable to the Department) as the primary
exporter of the subject merchandise to the U.S. during the POI.
On May 27, 1994, the Department received a letter from the
Government of Malaysia stating that MMCPNF was placed in receivership
in October 1993, ceased production at that time, and is currently in
the process of selling its assets. Therefore, MMCPNF would not be
responding to the Department's antidumping duty questionnaire.
On June 3, 1994, the Department received a letter from petitioner
in which the petitioner named another Malaysian producer of pipe
fittings, Taiyo Steel Corporation (Taiyo). In order to ensure that all
potential respondents were identified, we then cabled the U.S. Embassy
in Malaysia a second time requesting information on Taiyo and any other
Malaysian producers of pipe fittings. The U.S. Embassy responded that
no company by that name could be found and identified no other
Malaysian producers of pipe fittings.
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).
On August 4, 1994, the Department received an amendment to the
petition alleging that critical circumstances exist with respect to
imports of pipe fittings from Malaysia. In accordance with section
735(a)(3) of the Act, on August 12, 1994, the Department issued a
letter to MMCPNF requesting monthly volume and value shipment data for
the period January 1, 1992, through September 27, 1994. The Department
has received no reply to this request.
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 where
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
MMCPNF 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
outline in the Final Determination of Sales at Less Than Fair Value:
Antifriction Bearings, Other Than Tapered Roller Bearings, from
Germany, 54 FR 18992, 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, adjusted for methodological errors
as explained in the Department's initiation notice. The adjusted rate
is 194.7 percent.
Critical Circumstances
Petitioner has alleged that critical circumstances exist with
respect to imports of the subject merchandise from Malaysia. Section
735(a)(3) of the Act provides that the Department will determine that
critical circumstances exist if:
(A)(i) There is a history of dumping in the U.S. or elsewhere of
the class or kind of merchandise which is the subject of this
investigation, or
(ii) The person by whom, or for whose account, the merchandise was
imported knew or should have known that the exporter was selling the
merchandise which is the subject of the investigation at less than its
fair value, and
(B) There have been massive imports of the class or kind of
merchandise which is the subject of this investigation over a
relatively short period.
Since MMCPNF did not respond to our letter of August 12, 1994, we
preliminarily determine, as BIA, pursuant to section 776(c) of the Act,
that critical circumstances exist with respect to imports of pipe
fittings from Malaysia.
Suspension of Liquidation
In accordance with section 733(d)(1) of the Act and 19 CFR
353.16(c), we are directing the Customs Service to suspend liquidation
of all entries of pipe fittings from Malaysia that are entered, or
withdrawn from warehouse, for consumption on or after the date 90 days
prior to 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............................................... 194.70
------------------------------------------------------------------------
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 in 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, this 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 in 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. 94-24542 Filed 10-3-94; 8:45 am]
BILLING CODE 3510-DS-M