[Federal Register Volume 64, Number 250 (Thursday, December 30, 1999)]
[Notices]
[Pages 73575-73576]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-33902]
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INTERNATIONAL TRADE COMMISSION
[Investigation No. TA-201-70]
Circular Welded Carbon Quality Line Pipe
Determination
On the basis of the information in the investigation, the
Commission--(1) Determines, pursuant to section 202(b) of the Trade Act
of 1974, that circular welded carbon quality line pipe (hereinafter
line pipe) 1 is being imported into the United States in
such increased quantities as to be a substantial cause of serious
injury or the threat of serious injury 2 to the domestic
industry producing an article like or directly competitive with the
imported article; and (2) makes negative findings, pursuant to section
311(a) of the North American Free-Trade Agreement (NAFTA)
Implementation Act (19 U.S.C. 3371(a)), with respect to imports of line
pipe from Canada and Mexico.3
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\1\ The imported article covered by this investigation is welded
carbon quality line pipe of circular cross section, of a kind used
for oil and gas pipelines, whether or not stencilled. For purposes
of this investigation, ``carbon quality'' is defined to mean:
products in which (1) iron predominates, by weight, over each of the
other contained elements, (2) the carbon content is 2 percent or
less, by weight, and (3) none of the elements listed below exceeds
the quantity, by weight, respectively indicated: 1.80 percent of
manganese, or 2.25 percent of silicon, or 1.00 percent of copper, or
0.50 percent of aluminum, or 1.25 percent of chromium, or 0.30
percent of cobalt, or 0.40 percent of lead, or 1.25 percent of
nickel, or 0.30 percent of tungsten, or 0.10 percent of molybdenum,
or 0.10 percent of niobium, or 0.15 percent of vanadium, or 0.15
percent of zirconium.
Such line pipe is currently classified in subheadings 7306.10.10
and 7306.10.50 of the Harmonized Tariff Schedule of the United
States (HTS). Although the HTS categories are provided for
convenience and Customs purposes, the written description of the
merchandise under investigation is dispositive. The investigation
excludes certain merchandise described as arctic grade line pipe,
defined as welded line pipe that (1) has an outer diameter of 4.5
inches or more and a wall thickness equal to or less than 0.75
inches; and (2) when subjected to a Charpy V-notch test performed at
minus 50 degrees Fahrenheit or below applied to three specimens
taken from the well area, has a ft-lbs rating of no less than 17 ft-
lbs for each sample, with an average for all three at no less than
19 ft-lbs; and (3) using at least three samples, has a minimum
average shear area of 85 percent in the base metal and 50 percent in
the weld; and (4) when subjected to a hydrogen induced cracking test
to be performed as per NACE (National Association of Corrosion
Engineers) TM0284 test with solution A, has a crack length ratio
that does not exceed 15 percent, a crack sensibility ratio that does
not exceed 2 percent, and a crack thickness ratio that does not
exceed 5 percent.
\2\ Vice Chairman Marcia E. Miller and Commissioners Jennifer A.
Hillman and Stephen Koplan found serious injury. Chairman Lynn M.
Bragg and Commissioner Thelma J. Askey found a threat of serious
injury. Commissioner Carol T. Crawford made a negative
determination.
\3\ Chairman Bragg dissenting with respect to Mexico. Chairman
Bragg finds that imports of welded line pipe from Mexico account for
a substantial share of total imports and contribute importantly to
the threat of serious injury to the domestic industry.
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Recommendations with Respect to Remedy 4
The Commission \5\ (Vice Chairman Miller and Commissioners Hillman
and Koplan) recommends:
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\4\ Commissioner Crawford, having made a negative determination
on injury, was not eligible to vote on remedy. In light of her
negative determination, Commissioner Crawford does not believe any
import relief is appropriate in this investigation.
\5\ The Commission notes that, pursuant to section 330(d)(2) of
the Tariff Act of 1930 (19 U.S.C. 1330(d)(2)), the remedy
recommendation of Vice Chairman Miller and Commissioners Hillman and
Koplan in this investigation is to be treated as the remedy finding
of the Commission for purposes of section 203 of the Trade Act.
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(1) That the President impose a tariff-rate quota for a 4-year
period on imports of line pipe, with the in-quota amount set at 151,124
short tons in the first year, and with that amount to be increased by
[[Page 73576]]
10 percent in each of the second, third, and fourth years, with over-
quota imports to be subject to a duty of 30 percent ad valorem in
addition to current U.S. tariffs;
(2) That the President, if he determines to allocate the overall
quota, recognize the disproportionate growth and impact of the imports
from Korea;
(3) That the President initiate international negotiations with
Korea to address the underlying cause of the import surge and the
serious injury to the domestic industry;
(4) Having made negative findings with respect to imports of line
pipe from Canada and Mexico under section 311(a) of the NAFTA
Implementation Act, that such imports be excluded from the tariff-rate
quota; and
(5) That the tariff-rate quota not apply to imports of line pipe
from Israel, or to any imports of line pipe entered duty-free from
beneficiary countries under the Caribbean Basin Economic Recovery Act
or the Andean Trade Preference Act.
Chairman Bragg and Commissioner Askey recommend:
(1) That the President impose a duty, in addition to the current
rate of duty, for a 4-year period, on imports of line pipe that are
within the scope of this investigation as follows: 12.5 percent ad
valorem in the first year of relief, 11 percent ad valorem in the
second year of relief, 9.5 percent ad valorem in the third year of
relief, and 8 percent ad valorem in the fourth year of relief;
(2) That the increased rates of duty not apply to imports of line
pipe from Canada, Israel, or to any imports of line pipe that entered
duty-free from beneficiary countries under the Caribbean Basin Economic
Recovery Act or the Andean Trade Preference Act;
(3) Commissioner Askey, having made a negative finding with respect
to imports of line pipe from Mexico under section 311(a) of the NAFTA
Implementation Act, recommends that such imports from Mexico be
excluded from the increased duty. Chairman Bragg, having made an
affirmative finding under section 311(a) of the NAFTA Implementation
Act, recommends that imports of line pipe from Mexico be subject to the
duty increase.
The Commissioners find that the respective actions that they have
recommended will address the serious injury or threat of serious injury
found to exist and be most effective in facilitating the efforts of the
domestic industry to make a positive adjustment to import competition.
Background
Following receipt of a petition properly filed on June 30, 1999, by
counsel on behalf of Geneva Steel, Vineyard, UT; IPSCO Tubulars, Inc.,
Camanche, IA; Lone Star Steel Company, Dallas, TX; LTV Steel Tubular
Products Company, Youngstown, OH; 6 Maverick Tube
Corporation, Chesterfield, MO; Newport Steel, Newport, KY; Northwest
Pipe Company, Portland, OR; Stupp Corporation, Baton Rouge, LA; and the
United Steelworkers of America, AFL-CIO, Pittsburgh, PA, the Commission
instituted investigation No. TA-201-70, Circular Welded Carbon Quality
Line Pipe, under section 202 of the Trade Act of 1974 to determine
whether circular welded carbon quality line pipe is being imported into
the United States in such increased quantities as to be a substantial
cause of serious injury, or the threat thereof, to the domestic
industry producing an article like or directly competitive with the
imported article.
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\6\ Petitioners amended the petition on Sept. 14, 1999, to
include LTV Steel.
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Notice of the institution of the Commission's investigation and of
the scheduling of public hearings to be held in connection therewith
was given by posting copies of the notice in the Office of the
Secretary, U.S. International Trade Commission, Washington, DC, and by
publishing the notice in the Federal Register of August 4, 1999 (64 FR
42414). The hearing in connection with the injury phase of the
investigation was held on September 30, 1999, and the hearing on the
question of remedy was held on November 10, 1999. Both hearings were
held in Washington, DC; all persons who requested the opportunity were
permitted to appear in person or by counsel.
The Commission transmitted its determination in this investigation
to the President on December 22, 1999. The views of the Commission are
contained in USITC Publication 3261 (December 1999), entitled Circular
Welded Carbon Quality Line Pipe: Investigation No. TA-201-70.
Issued: December 23, 1999.
By order of the Commission.
Donna R. Koehnke,
Secretary.
[FR Doc. 99-33902 Filed 12-29-99; 8:45 am]
BILLING CODE 7020-02-U
