94-24542. Preliminary Determination of Sales at Less Than Fair Value: Certain Carbon Steel Butt-Weld Pipe Fittings From Malaysia  

  • [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
    
    
    

Document Information

Published:
10/04/1994
Department:
Commerce Department
Entry Type:
Uncategorized Document
Document Number:
94-24542
Dates:
October 4, 1994.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: October 4, 1994, A-557-808