99-32393. Notice of Preliminary Determinations of Sales at Less Than Fair Value: Certain Large Diameter Carbon and Alloy Seamless Standard, Line and Pressure Pipe From Japan and Certain Small Diameter Carbon and Alloy Seamless Standard, Line and ...  

  • [Federal Register Volume 64, Number 239 (Tuesday, December 14, 1999)]
    [Notices]
    [Pages 69718-69723]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-32393]
    
    
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    DEPARTMENT OF COMMERCE
    
    International Trade Administration
    [A-588-850, A-588-851, A-791-808]
    
    
    Notice of Preliminary Determinations of Sales at Less Than Fair 
    Value: Certain Large Diameter Carbon and Alloy Seamless Standard, Line 
    and Pressure Pipe From Japan and Certain Small Diameter Carbon and 
    Alloy Seamless Standard, Line and Pressure Pipe From Japan and the 
    Republic of South Africa
    
    AGENCY: Import Administration, International Trade Administration, 
    Department of Commerce.
    
    EFFECTIVE DATE: December 14, 1999.
    
    FOR FURTHER INFORMATION CONTACT: Charles Riggle at (202) 482-5288 or 
    Constance Handley at (202) 482-0631, Import Administration, Room 1870, 
    International Trade Administration,
    
    [[Page 69719]]
    
    U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, 
    Washington, DC 20230.
    
    The Applicable Statute and Regulations
    
        Unless otherwise indicated, all citations to the statute are 
    references to the provisions effective January 1, 1995, the effective 
    date of the amendments made to the Tariff Act of 1930 (the Act) by the 
    Uruguay Round Agreements Act (URAA). In addition, unless otherwise 
    indicated, all citations to Department of Commerce (Department) 
    regulations refer to the regulations codified at 19 CFR part 351 (April 
    1999).
    
    Preliminary Determinations
    
        We preliminarily determine that large diameter carbon and alloy 
    seamless standard, line and pressure pipe (large diameter seamless 
    pipe) from Japan, and small diameter carbon and alloy seamless 
    standard, line and pressure pipe (small diameter seamless pipe) from 
    Japan and the Republic of South Africa (South Africa), are being sold, 
    or are likely to be sold, in the United States at less than fair value 
    (LTFV), as provided in section 733 of the Act. The estimated margins of 
    sales at LTFV are shown in the Suspension of Liquidation section of 
    this notice.
    
    Case History
    
        On June 30, 1999, the Department received petitions on large 
    diameter seamless pipe from Japan and Mexico filed in proper form by 
    U.S. Steel Group (a unit of USX Corp.--Fairfield Seamless Pipe Mill) 
    and USS/Kobe Steel Company. Also that day, the Department received 
    petitions on small diameter seamless pipe from the Czech Republic, 
    Japan, Romania and South Africa filed in proper form from Koppel Steel 
    Corporation, Sharon Tube company, U.S. Steel Group, USS/Kobe Steel 
    Company and Vision Metals, Inc. (Gulf States Tube Division). On June 
    30, 1999, the United Steel Workers of America joined as co-petitioners 
    in all of the cases.1
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        \1\ The preliminary determinations in the investigations 
    involving the Czech Republic, Mexico and Romania has been postponed 
    until January 26, 2000
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        These investigations were initiated on July 20, 1999. See 
    Initiation of Antidumping Duty Investigations: Certain Large Diameter 
    Carbon and Alloy Seamless Standard, Line and Pressure Pipe from Japan 
    and Mexico and Certain Small Diameter Carbon and Alloy Seamless 
    Standard, Line and Pressure Pipe from the Czech Republic, Japan, the 
    Republic of South Africa and Romania; (Initiation Notice), 64 FR 40825 
    (July 28, 1999). Since the initiation of the investigations, the 
    following events have occurred:
        On August 12, 1999, the Department selected the following companies 
    as mandatory respondents in the investigations: Kawasaki Steel 
    Corporation (Kawasaki), Nippon Steel Corporation (Nippon) and Sumitomo 
    Metal Industries (Sumitomo) for both investigations involving Japan; 
    and Iscor Ltd (Iscor), the sole producer of the subject merchandise for 
    South Africa. See Respondent Selection, below. On August 12, 1999, the 
    Department issued the antidumping questionnaires to each of the 
    selected respondents.
        On August 16, 1999, the United States International Trade 
    Commission (ITC) preliminarily determined that there is a reasonable 
    indication that imports of the products subject to each of these 
    antidumping investigations are materially injuring the U.S. industry. 
    See Certain Seamless Carbon and Alloy Steel Standard, Line, and 
    Pressure Pipe from the Czech Republic, Japan, Mexico, Romania, and 
    South Africa, 64 FR 46953 (August 27, 1999).
        On September 10, 1999, Iscor notified the Department that it would 
    not be responding to the Department's questionnaire. Likewise, in the 
    cases involving Japan, none of the mandatory respondents answered the 
    Department's questionnaire.
    
    Period of Investigation
    
        The period of investigation (POI) for both the large and small 
    diameter seamless pipe cases is April 1, 1998, through March 31, 1999. 
    This period corresponds to the four most recent fiscal quarters prior 
    to the month of the filing of the petition (i.e., June 1999).
    
    Scope of Investigations 2
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        \2\ On September 3, 1999, the petitioners requested that the 
    scope of the investigations be amended to exclude certain products 
    made to the A-335 specification. This change is reflected in the 
    current scope.
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        For purposes of the large diameter seamless pipe investigation, the 
    products covered are large diameter seamless carbon and alloy (other 
    than stainless) steel standard, line, and pressure pipes produced, or 
    equivalent, to the American Society for Testing and Materials (ASTM) A-
    53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-335 (grades P1, P2, P11, 
    P12, P21 and P22 only), ASTM A-589, ASTM A-795, and the American 
    Petroleum Institute (API) 5L specifications and meeting the physical 
    parameters described below, regardless of application. The scope of 
    these investigations also includes all products used in standard, line, 
    or pressure pipe applications and meeting the physical parameters 
    described below, regardless of specification. Specifically included 
    within the scope of these investigations are seamless pipes greater 
    than 4.5 inches (114.3 mm) up to and including 16 inches (406.4 mm) in 
    outside diameter, regardless of wall-thickness, manufacturing process 
    (hot finished or cold-drawn), end finish (plain end, beveled end, upset 
    end, threaded, or threaded and coupled), or surface finish.
        The seamless pipes subject to these investigations are currently 
    classifiable under the subheadings 7304.10.10.30, 7304.10.10.45, 
    7304.10.10.60, 7304.10.50.50, 7304.31.60.50, 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, 
    7304.51.50.60, 7304.59.60.00, 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, and 7304.59.80.70 of the Harmonized 
    Tariff Schedule of the United States (HTSUS).
        Specifications, Characteristics, and Uses: Large diameter seamless 
    pipe is used primarily for line applications such as oil, gas, or water 
    pipeline, or utility distribution systems. Seamless pressure pipes are 
    intended for the conveyance of water, steam, petrochemicals, chemicals, 
    oil products, natural gas and other liquids and gasses in industrial 
    piping systems. They may carry these substances at elevated pressures 
    and temperatures and may be subject to the application of external 
    heat. Seamless carbon steel pressure pipe meeting the ASTM A-106 
    standard may be used in temperatures of up to 1000 degrees Fahrenheit, 
    at various American Society of Mechanical Engineers (ASME) code stress 
    levels. Alloy pipes made to ASTM A-335 standard must be used if 
    temperatures and stress levels exceed those allowed for ASTM A-106. 
    Seamless pressure pipes sold in the United States are commonly produced 
    to the ASTM 
    A-106 standard.
        Seamless standard pipes are most commonly produced to the ASTM A-53 
    specification and generally are not intended for high temperature 
    service. They are intended for the low temperature and pressure 
    conveyance of water, steam, natural gas, air and other liquids and 
    gasses in plumbing and heating systems, air conditioning units, 
    automatic sprinkler systems, and other related uses. Standard pipes 
    (depending on type and code) may carry liquids at elevated temperatures 
    but must not exceed relevant ASME code
    
    [[Page 69720]]
    
    requirements. If exceptionally low temperature uses or conditions are 
    anticipated, standard pipe may be manufactured to ASTM A-333 or ASTM A-
    334 specifications.
        Seamless line pipes are intended for the conveyance of oil and 
    natural gas or other fluids in pipe lines. Seamless line pipes are 
    produced to the API 5L specification.
        Seamless water well pipe (ASTM       A-589) and seamless galvanized 
    pipe for fire protection uses (ASTM A-795) are used for the conveyance 
    of water.
        Seamless pipes are commonly produced and certified to meet ASTM A-
    106, ASTM A-53, API 5L-B, and API 5L-X42 specifications. To avoid 
    maintaining separate production runs and separate inventories, 
    manufacturers typically triple or quadruple certify the pipes by 
    meeting the metallurgical requirements and performing the required 
    tests pursuant to the respective specifications. Since distributors 
    sell the vast majority of this product, they can thereby maintain a 
    single inventory to service all customers.
        The primary application of ASTM       A-106 pressure pipes and 
    triple or quadruple certified pipes in large diameters is for use as 
    oil and gas distribution lines for commercial applications. A more 
    minor application for large diameter seamless pipes is for use in 
    pressure piping systems by refineries, petrochemical plants, and 
    chemical plants, as well as in power generation plants and in some oil 
    field uses (on shore and off shore) such as for separator lines, 
    gathering lines and metering runs. These applications constitute the 
    majority of the market for the subject seamless pipes. However, ASTM A-
    106 pipes may be used in some boiler applications.
        The scope of these investigations includes all seamless pipe 
    meeting the physical parameters described above and produced to one of 
    the specifications listed above, regardless of application, and whether 
    or not also certified to a non-covered specification. Standard, line, 
    and pressure applications and the above-listed specifications are 
    defining characteristics of the scope of these investigations. 
    Therefore, seamless pipes meeting the physical description above, but 
    not produced to the ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM 
    A-335 (grades P1, P2, P11, P12, P21 and P22 only), ASTM A-589, ASTM A-
    795, and API 5L specifications shall be covered if used in a standard, 
    line, or pressure application.
        For example, there are certain other ASTM specifications of pipe 
    which, because of overlapping characteristics, could potentially be 
    used in ASTM       A-106 applications. These specifications generally 
    include ASTM A-161, ASTM A-192, ASTM A-210, ASTM A-252, ASTM A-501, 
    ASTM       A-523, ASTM A-524, and ASTM       A-618. When such pipes are 
    used in a standard, line, or pressure pipe application, such products 
    are covered by the scope of these investigations.
        Specifically excluded from the scope of these investigations are 
    boiler tubing and mechanical tubing, if such products are not produced 
    to ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-335 (grades 
    P1, P2, P11, P12, P21 and P22 only), ASTM A-589, ASTM A-795, and API 5L 
    specifications and are not used in standard, line, or pressure pipe 
    applications. In addition, finished and unfinished oil country tubular 
    goods (OCTG) are excluded from the scope of these investigations, if 
    covered by the scope of another antidumping duty order from the same 
    country. If not covered by such an OCTG order, finished and unfinished 
    OCTG are included in this scope when used in standard, line or pressure 
    applications.
        For purposes of the small diameter seamless pipe investigations, 
    the products covered are seamless carbon and alloy (other than 
    stainless) steel standard, line, and pressure pipes and redraw hollows 
    produced, or equivalent, to the ASTM A-53, ASTM A-106, ASTM A-333, ASTM 
    A-334, ASTM A-335, ASTM A-589, ASTM       A-795, and the American 
    Petroleum Institute (API) 5L specifications and meeting the physical 
    parameters described below, regardless of application. The scope of 
    these investigations also includes all products used in standard, line, 
    or pressure pipe applications and meeting the physical parameters 
    described below, regardless of specification. Specifically included 
    within the scope of these investigations are seamless pipes and redraw 
    hollows, less than or equal to 4.5 inches (114.3 mm) in outside 
    diameter, regardless of wall-thickness, manufacturing process (hot 
    finished or cold-drawn), end finish (plain end, beveled end, upset end, 
    threaded, or threaded and coupled), or surface finish.
        The seamless pipes subject to these investigations are currently 
    classifiable under the subheadings 7304.10.10.20, 7304.10.50.20, 
    7304.31.30.00, 7304.31.60.50, 7304.39.00.16, 7304.39.00.20, 
    7304.39.00.24, 7304.39.00.28, 7304.39.00.32, 7304.51.50.05, 
    7304.51.50.60, 7304.59.60.00, 7304.59.80.10, 7304.59.80.15, 
    7304.59.80.20, and 7304.59.80.25 of the HTSUS.
        Specifications, Characteristics, and Uses: Seamless pressure pipes 
    are intended for the conveyance of water, steam, petrochemicals, 
    chemicals, oil products, natural gas and other liquids and gasses in 
    industrial piping systems. They may carry these substances at elevated 
    pressures and temperatures and may be subject to the application of 
    external heat. Seamless carbon steel pressure pipe meeting the ASTM A-
    106 standard may be used in temperatures of up to 1000 degrees 
    Fahrenheit, at various ASME code stress levels. Alloy pipes made to 
    ASTM A-335 standard must be used if temperatures and stress levels 
    exceed those allowed for ASTM A-106. Seamless pressure pipes sold in 
    the United States are commonly produced to the ASTM A-106 standard.
        Seamless standard pipes are most commonly produced to the ASTM A-53 
    specification and generally are not intended for high temperature 
    service. They are intended for the low temperature and pressure 
    conveyance of water, steam, natural gas, air and other liquids and 
    gasses in plumbing and heating systems, air conditioning units, 
    automatic sprinkler systems, and other related uses. Standard pipes 
    (depending on type and code) may carry liquids at elevated temperatures 
    but must not exceed relevant ASME code requirements. If exceptionally 
    low temperature uses or conditions are anticipated, standard pipe may 
    be manufactured to ASTM A-333 or ASTM A-334 specifications.
        Seamless line pipes are intended for the conveyance of oil and 
    natural gas or other fluids in pipe lines. Seamless line pipes are 
    produced to the API 5L specification.
        Seamless water well pipe (ASTM A-589) and seamless galvanized pipe 
    for fire protection uses (ASTM A-795) are used for the conveyance of 
    water.
        Seamless pipes are commonly produced and certified to meet ASTM A-
    106, ASTM A-53, API 5L-B, and API 5L-X42 specifications. To avoid 
    maintaining separate production runs and separate inventories, 
    manufacturers typically triple or quadruple certify the pipes by 
    meeting the metallurgical requirements and performing the required 
    tests pursuant to the respective specifications. Since distributors 
    sell the vast majority of this product, they can thereby maintain a 
    single inventory to service all customers.
        The primary application of ASTM       A-106 pressure pipes and 
    triple or quadruple certified pipes is in pressure piping systems by 
    refineries, petrochemical plants, and chemical plants. Other 
    applications are in power generation plants (electrical-fossil fuel
    
    [[Page 69721]]
    
    or nuclear), and in some oil field uses (on shore and off shore) such 
    as for separator lines, gathering lines and metering runs. A minor 
    application of this product is for use as oil and gas distribution 
    lines for commercial applications. These applications constitute the 
    majority of the market for the subject seamless pipes. However, ASTM A-
    106 pipes may be used in some boiler applications.
        Redraw hollows are any unfinished pipe or ``hollow profiles'' of 
    carbon or alloy steel transformed by hot rolling or cold drawing/
    hydrostatic testing or other methods to enable the material to be sold 
    under ASTM A-53, ASTM       A-106, ASTM A-333, ASTM A-334, ASTM A-335, 
    ASTM A-589, ASTM       A-795, and API 5L specifications.
        The scope of these investigations includes all seamless pipe 
    meeting the physical parameters described above and produced to one of 
    the specifications listed above, regardless of application, and whether 
    or not also certified to a non-covered specification. Standard, line, 
    and pressure applications and the above-listed specifications are 
    defining characteristics of the scope of these investigations. 
    Therefore, seamless pipes meeting the physical description above, but 
    not produced to the ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM 
    A-335, ASTM       A-589, ASTM A-795, and API 5L specifications shall be 
    covered if used in a standard, line, or pressure application.
        For example, there are certain other ASTM specifications of pipe 
    which, because of overlapping characteristics, could potentially be 
    used in ASTM       A-106 applications. These specifications generally 
    include ASTM A-161, ASTM A-192, ASTM A-210, ASTM A-252, ASTM A-501, 
    ASTM       A-523, ASTM A-524, and ASTM       A-618. When such pipes are 
    used in a standard, line, or pressure pipe application, such products 
    are covered by the scope of these investigations.
        Specifically excluded from the scope of these investigations are 
    boiler tubing and mechanical tubing, if such products are not produced 
    to ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-335, ASTM A-
    589, ASTM       A-795, and API 5L specifications and are not used in 
    standard, line, or pressure pipe applications. In addition, finished 
    and unfinished OCTG are excluded from the scope of these 
    investigations, if covered by the scope of another antidumping duty 
    order from the same country. If not covered by such an OCTG order, 
    finished and unfinished OCTG are included in this scope when used in 
    standard, line or pressure applications.
        Although the HTSUS subheadings are provided for convenience and 
    customs purposes, our written description of the merchandise under 
    investigation is dispositive.
        The Department set aside a period for all interested parties to 
    raise issues regarding product coverage. From August through November 
    1999, the Department received responses from a number of parties 
    including importers, respondents, consumers, and petitioners.
    
    Class or Kind
    
        We have preliminarily determined that there are only two classes or 
    kinds of merchandise, one for small diameter pipe and one for large 
    diameter pipe. Our determination is based on an evaluation of the 
    criteria set forth in Diversified Products v. United States, 572 F. 
    Supp. 883, 889 (CIT 1983) (Diversified Products), which look to 
    differences in: (1) The general physical characteristics of the 
    merchandise, (2) the expectations of the ultimate purchaser, (3) the 
    ultimate use of the merchandise, (4) the channels of trade in which the 
    merchandise moves, and (5) the manner in which the product is 
    advertised or displayed. In making this preliminary determination, we 
    have rejected a request by Sumitomo that the Department determine that 
    there are three separate classes or kinds of merchandise subject to 
    investigation: (1) Commodity grade standard, line and pressure pipe, 
    (2) high-strength line pipe produced to proprietary specification for 
    use in deep sea, arctic or other harsh conditions and (3) alloy 
    pressure pipe. See letter from Sumitomo to the Department of Commerce 
    (August 3, 1999). Likewise we have rejected the requests of MC Tubular 
    Products, Inc., an importer of the subject merchandise, and the 
    American Boiler Makers Association (ABMA), consumers of the subject 
    merchandise, that we determine that alloy seamless pipe is a separate 
    class or kind than carbon seamless pipe. See letter from MC Tubular 
    Products to the Department of Commerce (August 10, 1999), and letter 
    from the ABMA to the Assistant Secretary (November 5, 1999). In our 
    analysis of the Diversified Products criteria, we find that, consistent 
    with past seamless pipe cases, alloy grade steels, high-strength line 
    pipe, and pipes made therefrom, represent the upper end of a single 
    continuum of steel grades and associated attributes. See, e.g., Notice 
    of Final Determination of Sales at Less Than Fair Value: Small Diameter 
    Circular Seamless Carbon and Alloy Steel, Standard, Line and Pressure 
    Pipe From Brazil, 60 FR 31960, 31963 (June 19, 1995); Notice of Final 
    Determination of Sales at Less Than Fair Value: Small Diameter Circular 
    Seamless Carbon and Alloy Steel, Standard, Line and Pressure Pipe From 
    Germany, 60 FR 31974 (June 19, 1995). Information placed on the record 
    of this proceeding, which does not address all of the Diversified 
    Products criteria or contain compelling new documented evidence, does 
    not constitute sufficient justification for deviating from our 
    established precedent. Id. For further discussion on this topic see 
    Memorandum from Case Analysts to Holly Kuga, Re: Class or Kind, dated 
    December 7, 1999. On December 2, 1999, Sumitomo made an additional 
    submission with regard to class or kind. Due to the statutory deadline 
    for the preliminary determination in these investigations, we will 
    consider this information in making the final determination.
    
    Selection of Respondents
    
        Section 777A(c)(1) of the Act directs the Department to calculate 
    individual dumping margins for each known exporter and producer of the 
    subject merchandise. However, section 777A(c)(2) of the Act gives the 
    Department discretion, when faced with a large number of exporters/
    producers, to limit its examination to a reasonable number of such 
    companies if it is not practicable to examine all companies. Where it 
    is not practicable to examine all known producers/exporters of subject 
    merchandise, this provision permits the Department to investigate 
    either: (1) A sample of exporters, producers, or types of products that 
    is statistically valid based on the information available at the time 
    of selection, or (2) exporters and producers accounting for the largest 
    volume of the subject merchandise that can be reasonably examined.
        After consideration of the complexities expected to arise in these 
    proceedings and the resources available to the Department, we 
    determined that it was not practicable in the Japanese investigations 
    to examine all known producers/exporters of subject merchandise. This 
    was not a concern in the investigation involving South Africa, since 
    there was only one producer/exporter of subject merchandise in that 
    country during the POI. However, with respect to Japan, which had 
    multiple producers/exporters of subject merchandise during the POI, we 
    determined that, given our resources, we would be able to investigate 
    three such companies. The respondents selected for Japan were
    
    [[Page 69722]]
    
    those with the greatest export volume, that together accounted for more 
    than 50 percent of all known exports of the subject merchandise during 
    the POI from Japan. For a more detailed discussion of respondent 
    selection in these investigations, see Respondent Selection Memorandum, 
    dated August 12, 1999.
    
    Facts Available
    
        As stated above, none of the respondents answered the Department's 
    questionnaire. Section 776(a)(2) of the Act provides that, if an 
    interested party (A) withholds information that has been requested by 
    the Department; (B) fails to provide such information in a timely 
    manner or in the form or manner requested subject to section 782(c)(1) 
    and (e) of the Act; (C) significantly impedes a proceeding under the 
    antidumping statute; or (D) provides such information but the 
    information cannot be verified, the Department shall, subject to 
    subsection 782(d) of the Act, use facts otherwise available in reaching 
    the applicable determination. Because Iscor, Kawasaki, Nippon and 
    Sumitomo failed to respond to our questionnaire, pursuant to section 
    776(a)(2)(A) of the Act, we resorted to facts otherwise available to 
    determine the dumping margins for these companies.
        Section 776(b) of the Act provides that the Department may use an 
    inference adverse to the interests of a party that has failed to 
    cooperate by not acting to the best of its ability to comply with the 
    Department's requests for information. See also Statement of 
    Administrative Action accompanying the URAA, H.R. Rep. No. 103-316 at 
    870 (1994) (SAA). Failure by Iscor, Kawasaki, Nippon and Sumitomo to 
    respond to the Department's antidumping questionnaire constitutes a 
    failure to act to the best of their ability to comply with a request 
    for information, within the meaning of section 776 of the Act. Because 
    Iscor, Kawasaki, Nippon and Sumitomo failed to respond, the Department 
    has determined that, in selecting among the facts otherwise available, 
    an adverse inference is warranted in selecting the facts available for 
    these companies.
        Because we were unable to calculate margins for the respondents in 
    Japan, or South Africa, consistent with Department practice, we 
    assigned the respondents in these cases the highest margins alleged in 
    the amendments to the respective petitions. See, e.g., Notice of 
    Preliminary Determination of Sales at Less Than Fair Value: Stainless 
    Steel Wire Rod from Germany (Wire Rod from Germany), 63 FR 10847 (March 
    5, 1998). The highest petition margins are 106.07 percent in the small 
    diameter seamless pipe investigation for Japan, 107.80 percent in the 
    large diameter seamless pipe investigation for Japan and 43.51 percent 
    for South Africa. See Initiation Notice.
        Section 776(b) states that an adverse inference may include 
    reliance on information derived from the petition. See also SAA at 829-
    831. Section 776(c) of the Act provides that, when the Department 
    relies on secondary information (such as the petition) in using the 
    facts otherwise available, it must, to the extent practicable, 
    corroborate that information from independent sources that are 
    reasonably at its disposal.
        The SAA clarifies that ``corroborate'' means that the Department 
    will satisfy itself that the secondary information to be used has 
    probative value (see SAA at 870). The SAA also states that independent 
    sources used to corroborate such evidence may include, for example, 
    published price lists, official import statistics and customs data, and 
    information obtained from interested parties during the particular 
    investigation (see SAA at 870).
        We reviewed the adequacy and accuracy of the information in the 
    petitions during our pre-initiation analysis of the petitions, to the 
    extent appropriate information was available for this purpose. See 
    Import Administration AD Investigation Initiation Checklist, dated June 
    21, 1999, for a discussion of the margin calculations in the petitions. 
    In addition, in order to determine the probative value of the margins 
    in the petitions for use as adverse facts available for purposes of 
    this determination, we examined evidence supporting the calculations in 
    the petitions. In accordance with section 776(c) of the Act, to the 
    extent practicable, we examined the key elements of the export price 
    (EP) and normal value (NV) calculations on which the margins in the 
    petitions were based. Our review of the EP and NV calculations 
    indicated that the information in the petitions has probative value, as 
    certain information included in the margin calculations in the 
    petitions is from public sources concurrent, for the most part, with 
    the POI (e.g., international freight and insurance, customs duty, 
    interest rates). However, with respect to certain other data included 
    in the margin calculations of the petition (e.g., gross United States 
    and home market unit prices), neither the respondents nor other 
    interested parties provided the Department with further relevant 
    information and the Department is aware of no other independent source 
    of information that would enable it to further corroborate the 
    remaining components of the margin calculation in the petition. The 
    implementing regulation for section 776 of the Act, codified at 19 CFR 
    351.308(c) states, ``[t]he fact that corroboration may not be 
    practicable in a given circumstance will not prevent the Secretary from 
    applying an adverse inference as appropriate and using the secondary 
    information in question.'' Additionally, we note that the SAA at 870 
    specifically states that, where ``corroboration may not be practicable 
    in a given circumstance,'' the Department may nevertheless apply an 
    adverse inference. Accordingly, we find, for purposes of this 
    preliminary determination, that this information is corroborated to the 
    extent practicable.
    
    All Others Rate
    
        Section 735(c)(5)(B) of the Act provides that, where the estimated 
    weighted-averaged dumping margins established for all exporters and 
    producers individually investigated are zero or de minimis or are 
    determined entirely under section 776 of the Act, the Department may 
    use any reasonable method to establish the estimated all-others rate 
    for exporters and producers not individually investigated. Our recent 
    practice under these circumstances has been to assign, as the ``all 
    others'' rate, the simple average of the margins in the petition. We 
    have done so in these cases. See, e.g., Notice of Final Determination 
    of Sales at Less Than Fair Value: Stainless Steel Plate in Coil from 
    Canada, 64 FR 15457 (March 31, 1999); see also Notice of Final 
    Determination of Sales at Less Than Fair Value: Stainless Steel Plate 
    in Coil from Italy, 64 FR 15458, 15459 (March 21, 1999).
    
    Suspension of Liquidation
    
        For entries of large and small diameter seamless pipe from Japan, 
    and entries of small diameter seamless pipe from South Africa, we are 
    directing the U.S. Customs Service to suspend liquidation of those 
    entries that are entered, or withdrawn from warehouse, for consumption 
    on or after the date of publication of this notice in the Federal 
    Register. We are also instructing the Customs Service to require a cash 
    deposit or the posting of a bond equal to the dumping margin, as 
    indicated in the chart below. These instructions suspending liquidation 
    will remain in effect until further notice.
        The dumping margins are provided below.
    
    [[Page 69723]]
    
    
    
    ------------------------------------------------------------------------
                                                                    Margin
                       Manufacturer/exporter                      (percent)
    ------------------------------------------------------------------------
    Japan--large diameter:
      Nippon Steel Corporation.................................       107.80
      Kawasaki Steel Corporation...............................       107.80
      Sumitomo Metal Industries................................       107.80
      All Others...............................................        68.88
    Japan--small diameter:
      Nippon Steel Corporation.................................       106.07
      Kawasaki Steel Corporation...............................       106.07
      Sumitomo Metal Industries................................       106.07
      All Others...............................................        70.43
    South Africa--small diameter:
      Iscor Ltd................................................        43.51
      All Others...............................................        40.17
    ------------------------------------------------------------------------
    
    ITC Notification
    
        In accordance with section 733(f) of the Act, we have notified the 
    ITC of our determinations. If our final antidumping determinations are 
    affirmative, the ITC will determine whether these imports are 
    materially injuring, or threaten material injury to, the U.S. industry. 
    The deadline for that ITC determination would be the later of 120 days 
    after the date of these preliminary determinations or 45 days after the 
    date of our final determinations.
    
    Public Comment
    
        For the investigations of large and small diameter seamless pipe 
    from Japan and small diameter seamless pipe from South Africa, case 
    briefs must be submitted no later than 30 days after the publication of 
    this notice in the Federal Register. Rebuttal briefs must be filed 
    within five business days after the deadline for submission of case 
    briefs. A list of authorities used, a table of contents, and an 
    executive summary of issues should accompany any briefs submitted to 
    the Department. Executive summaries should be limited to five pages 
    total, including footnotes.
        Section 774 of the Act provides that the Department will hold a 
    hearing to afford interested parties an opportunity to comment on 
    arguments raised in case or rebuttal briefs, provided that such a 
    hearing is requested by any interested party. If a request for a 
    hearing is made in an investigation, the hearing will tentatively be 
    held two days after the deadline for submission of the rebuttal briefs, 
    at the U.S. Department of Commerce, 14th Street and Constitution 
    Avenue, NW, Washington, D.C. 20230. In the event that the Department 
    receives requests for hearings from parties to several seamless pipe 
    cases, the Department may schedule a single hearing to encompass all 
    those cases. Parties should confirm by telephone the time, date, and 
    place of the hearing 48 hours before the scheduled time.
        Interested parties who wish to request a hearing, or to participate 
    if one is requested, must submit a written request within 30 days of 
    the publication of this notice. Requests should specify the number of 
    participants and provide a list of the issues to be discussed. Oral 
    presentations will be limited to issues raised in the briefs.
        If these investigations proceed normally, we will make our final 
    determinations no later than 75 days after the date of issuance of this 
    notice.
        These determinations are published pursuant to sections 733(f) and 
    777(i)(1) of the Act.
    
        Dated: December 7, 1999.
    Robert S. LaRussa,
    Assistant Secretary for Import Administration.
    [FR Doc. 99-32393 Filed 12-13-99; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Effective Date:
12/14/1999
Published:
12/14/1999
Department:
International Trade Administration
Entry Type:
Notice
Document Number:
99-32393
Dates:
December 14, 1999.
Pages:
69718-69723 (6 pages)
Docket Numbers:
A-588-850, A-588-851, A-791-808
PDF File:
99-32393.pdf