97-32063. Circular Welded Non-Alloy Steel Pipe From the Republic of Korea; Preliminary Results of Antidumping Administrative Review  

  • [Federal Register Volume 62, Number 235 (Monday, December 8, 1997)]
    [Notices]
    [Pages 64559-64564]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-32063]
    
    
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    DEPARTMENT OF COMMERCE
    
    International Trade Administration
    [A-580-809]
    
    
    Circular Welded Non-Alloy Steel Pipe From the Republic of Korea; 
    Preliminary Results of Antidumping Administrative Review
    
    AGENCY: Import Administration, International Trade Administration, 
    Department of Commerce.
    
    ACTION: Notice of preliminary results of antidumping duty 
    administrative review of circular welded non-alloy steel pipe from the 
    Republic of Korea.
    
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    SUMMARY: The Department of Commerce is conducting an administrative 
    review of the antidumping duty order on circular welded non-alloy steel 
    pipe from the Republic of Korea. The period of review is November 1, 
    1995 through October 31, 1996. This review covers imports of pipe from 
    four producers/exporters.
        We have preliminarily found that sales of subject merchandise have 
    been made below normal value. If these preliminary results are adopted 
    in our final results, we will instruct the Customs Service to assess 
    antidumping duties based on the difference between the U.S. price and 
    normal value.
        Interested parties are invited to comment on these preliminary 
    results. We will issue the final results not later than 120 days from 
    the date of publication of this notice.
    
    EFFECTIVE DATE: December 8, 1997.
    
    FOR FURTHER INFORMATION CONTACT: Cynthia Thirumalai, Marian Wells, or 
    Rosa Jeong, Import Administration, International Trade Administration, 
    U.S. Department of Commerce, 14th Street and Constitution Avenue, N.W., 
    Washington, D.C. 20230; telephone (202) 482-4087, 482-6309, and 482-
    1278 respectively.
    
    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 the Department of Commerce's (the 
    Department's) regulations refer to the regulations, codified at 19 CFR 
    part 353, April 1997.
    
    Background
    
        Since the publication of Notice of Extension of Time Limit for 
    Preliminary Results, Partial Termination of Antidumping Duty 
    Administrative Review and Initiation of Changed Circumstances Review, 
    on July 15, 1997 (62 FR 37865), the following has occurred.
        On July 25, 1997, the Department issued a supplemental 
    questionnaire to Korea Iron and Steel Co., Ltd. (KISCO) and Union Steel 
    Manufacturing Co., Ltd. (Union) asking about issues of affiliation. The 
    companies responded to the affiliation questions on August 6, 1997. We 
    notified Union and KISCO in an October 22, 1997, letter that their 
    responses should be consolidated into one response (see ``Collapsing 
    Union and KISCO'' in this notice). The Department received a 
    consolidated response from these companies on November 17, 1997.
        On October 30, 1997, we requested respondents to resubmit their 
    data using purchase order/contract date, as opposed to invoice date, as 
    date of sale for U.S. transactions. We received partially updated sales 
    databases with
    
    [[Page 64560]]
    
    the new date of sale from SeAH Steel Corporation (SeAH) and Shinho 
    Steel Co., Ltd. (Shinho) on November 17, 1997. (In the case of Hyundai 
    Pipe Co. Ltd. (Hyundai), this information had been previously requested 
    and supplied to the Department.) Union/KISCO's collapsed submission 
    received on November 17, 1997 did not include the change in the date of 
    sale.
        Supplemental questionnaires were sent to respondents in November 
    1997. Responses to our supplemental questionnaires regarding level of 
    trade (LOT) were received by November 13, 1997. Additional supplemental 
    questionnaires responses from all respondents are due December 3, 1997.
        We intend to issue the final results of this review not later than 
    120 days after publication of these preliminary results.
    
    Scope of Review
    
        The merchandise subject to this review is circular welded non-alloy 
    steel pipe and tube, of circular cross-section, not more than 406.4mm 
    (16 inches) in outside diameter, regardless of wall thickness, surface 
    finish (black, galvanized, or painted), or end finish (plain end, 
    beveled end, threaded, or threaded and coupled). These pipes and tubes 
    are generally known as standard pipes and tubes and are intended for 
    the low-pressure conveyance of water, steam, natural gas, air, and 
    other liquids and gases in plumbing and heating systems, air-
    conditioning units, automatic sprinkler systems, and other related 
    uses. Standard pipe may also be used for light load-bearing 
    applications, such as for fence tubing, and as structural pipe tubing 
    used for framing and as support members for reconstruction or load-
    bearing purposes in the construction, shipbuilding, trucking, farm 
    equipment, and other related industries. Unfinished conduit pipe is 
    also included in this order.
        All carbon-steel pipes and tubes within the physical description 
    outlined above are included within the scope of this review except line 
    pipe, oil-country tubular goods, boiler tubing, mechanical tubing, pipe 
    and tube hollows for redraws, finished scaffolding, and finished 
    conduit. In accordance with the Department's Final Negative 
    Determination of Scope Inquiry on Certain Circular Welded Non-Alloy 
    Steel Pipe and Tube from Brazil, the Republic of Korea, Mexico, and 
    Venezuela (61 FR 11608, March 21, 1996), pipe certified to the API 5L 
    line-pipe specification and pipe certified to both the API 5L line-pipe 
    specifications and the less-stringent ASTM A-53 standard-pipe 
    specifications, which falls within the physical parameters as outlined 
    above, and entered as line pipe of a kind used for oil and gas 
    pipelines is outside of the scope of the antidumping duty order.
        Imports of these products are currently classifiable under the 
    following Harmonized Tariff Schedule (HTS) subheadings: 7306.30.10.00, 
    7306.30.50.25, 7306.30.50.32, 7306.30.50.40, 7306.30.50.55, 
    7306.30.50.85, and 7306.30.50.90. Although the HTS subheadings are 
    provided for convenience and customs purposes, our written description 
    of the scope of this proceeding is dispositive.
    
    Collapsing KISCO and Union
    
        On May 22 and June 30, 1997, the petitioners, Allied Tube and 
    Conduit Corporation, Sawhill Tubular Division-Armco, Inc. and Wheatland 
    Tube Company, argued that because of the strong possibility of 
    manipulation of prices and production, the Department should treat 
    Union and KISCO as a single, collapsed entity and calculate a single 
    combined antidumping duty rate for both companies. In determining 
    whether companies should be collapsed, the Department makes three 
    inquiries. First, the Department examines whether the companies in 
    question are ``affiliated'' within the meaning of section 771(33) of 
    the Act. Second, the Department examines whether the companies in 
    question have similar production facilities, such that retooling would 
    not be required to shift production from one company to another. Third, 
    the Department examines whether there exists other evidence indicating 
    a significant potential for the manipulation of prices or production. 
    The types of factors the Department considers in determining whether 
    there is a significant potential for the manipulation of prices or 
    production include: (1) The level of common ownership; (2) the 
    existence of interlocking officers or directors (e.g., whether 
    managerial employees or board members of one company sit on the board 
    of directors of the other affiliated parties); and (3) the existence of 
    intertwined operations. See Certain Cold-Rolled Carbon Steel Flat 
    Products from Korea, 60 FR 65284 (December 19, 1995) (Korean Steel).
        In the first administrative review of this order, the petitioners 
    also argued that Union and KISCO should be collapsed, and the 
    Department agreed. See Final Results of Antidumping Duty Administrative 
    Review and Partial Termination of Administrative Review: Circular 
    Welded Non-Alloy Steel Pipe From the Republic of Korea, 62 FR 55574 
    (October 27, 1997) (Pipe First Review). In the present proceeding, we 
    again closely analyzed the relevant factors in light of the information 
    on record of the present review. We determined that the factors that 
    led to the collapsing decision in the first review continue to exist in 
    the present review. Therefore, we have collapsed Union and KISCO and 
    calculated a single antidumping duty rate for the collapsed entity.
    
    Date of Sale
    
        When determining which sales fall within the period of review 
    (POR), respondents used either invoice date, tax invoice date, or 
    shipment date (collectively referred to hereafter as ``invoice date'') 
    as the date of sale. Most respondents claimed that the invoice date is 
    what is maintained in their corporate records and that use of invoice 
    date is in accordance with the Department's stated practice (see 
    Memorandum from Susan G. Esserman ``Date of Sale Methodology Under New 
    Regulations,'' March 29, 1996).
        Based on our review of the responses, we determined invoice date 
    should not be used as the date of sale for U.S. transactions. (For home 
    market transactions, we find that invoice date reasonably approximates 
    the date on which the material terms of sale are made and have used 
    this as our date of sale.) While each company has a slightly different 
    U.S. sales process, consistent throughout the responses is the notion 
    that price and quantity are established, then the factory produces the 
    subject merchandise, and finally, after a significant period of time, 
    the product is shipped and an invoice is issued. Based on this 
    understanding of the companies' U.S. sales process, we instructed 
    respondents to report as the date of sale the date that will reasonably 
    approximate the time at which the material terms of sale are set (see, 
    Memorandum for Richard W. Moreland, dated October 30, 1997).
        The above-mentioned change in the U.S. date of sale necessitated 
    changes to the U.S. sales listings of respondents to correct the date 
    of sale. As a consequence of the change in the U.S. date of sale, home 
    market sales listings also have to be revised to include sales of 
    identical and similar merchandise that are contemporaneous with U.S. 
    sales. Due to the late date on which we informed respondents of the 
    need to change the U.S. date of sale, all respondents were not able to 
    modify fully their U.S. and home market sales listings in time for 
    these preliminary results of review. Therefore, we have used the most 
    current sales listings available to the Department. Hyundai, SeAH, and 
    Shinho partially revised
    
    [[Page 64561]]
    
    their U.S. sales listings by changing the date of sale for previously 
    reported transactions. Union/KISCO was unable to provide a collapsed 
    sales listing reflecting the change in the U.S. date of sale in time 
    for these preliminary results. As a result, we are using invoice date 
    as the date of Union/KISCO's U.S. sales. Furthermore, for all 
    respondents, we have made comparisons to constructed value (CV) for 
    U.S. sales that do not have contemporaneous home market sales matches.
    
    Resales of Subject Merchandise
    
        Some companies purchase subject merchandise from unaffiliated 
    manufacturers and then further manufacture it into products also within 
    the scope of this review. For purposes of these preliminary results, we 
    have included sales of all such further-manufactured subject 
    merchandise in our analysis.
    
    SeAH
    
        During the POR, SeAH purchased a small quantity of subject 
    merchandise from an unaffiliated producer, and subsequently resold the 
    merchandise in the United States. According to SeAH, the unaffiliated 
    producer was aware of the ultimate destination of the merchandise at 
    the time of sale to SeAH (see SeAH response of March 24, 1997, p. 33).
        In their June 24, 1997 submission, petitioners argue that products 
    purchased from the unaffiliated producer and resold by SeAH should be 
    included in SeAH's U.S. and home market sales listings. To support this 
    argument, petitioners cite to Gray Portland Cement and Clinker from 
    Japan, 61 FR 67308 (December 20, 1997) (Cement and Clinker).
        Regarding U.S. sales, the Department examines the first party in 
    the distribution chain selling with the knowledge that the merchandise 
    is destined for the U.S. See 19 CFR 353.41(b), Certain Pasta from 
    Italy: Notice of Preliminary Determination of Sales at Less Than Fair 
    Value and Postpone of Final Determination, 60 FR 1344, 1348-1349 
    (January 19, 1996) (Pasta from Italy). In SeAH's case, the unaffiliated 
    producer knew at the time of the sale to SeAH that the merchandise was 
    destined for the United States. Therefore, the appropriate export price 
    for that merchandise would be the price between the unaffiliated 
    producer and SeAH (see Pasta from Italy). Moreover, the unaffiliated 
    producer would be the appropriate party to be reviewed with respect to 
    these resales.
        The case cited by petitioners dealt with home market sales. 
    Contrary to petitioners' assertions, the Department excluded all 
    resales of merchandise purchased from an unaffiliated producer from its 
    foreign market value (FMV) calculation in Cement and Clinker to the 
    extent that they were separately identifiable. It was only in those 
    cases where resales were inextricably commingled with the respondent's 
    own product sales and where the inclusion of these resales did not 
    distort the FMV calculation that the Department allowed them to be 
    included among the respondent's home market sales. Therefore, this 
    precedent does not provide a basis for including resales of this 
    merchandise in the home market in our calculation of normal value (NV). 
    Consequently, products purchased from this unaffiliated producer and 
    resold into the U.S. market have not been included among SeAH's U.S. or 
    home market sales listings.
    
    Product Comparisons
    
        We calculated monthly, weighted-average, NVs. Where possible, we 
    compared U.S. sales to sales of identical merchandise in Korea. When 
    identical merchandise was not sold during the relevant contemporaneous 
    period, we compared U.S. sales to sales of the most similar foreign 
    like product (see section 771(16)(B) and (C) of the Act).
    
    Export Price and Constructed Export Price
    
        For sales to the United States, we used export price (EP) or 
    constructed export price (CEP) as defined in sections 772(a) and 772(b) 
    of the Act, as appropriate.
        In accordance with sections 772(a) and (c) of the Act, we 
    calculated an EP where the merchandise was sold directly to the first 
    unaffiliated purchaser in the United States prior to importation, and 
    CEP was not otherwise warranted based on the facts of record. In 
    accordance with sections 772(b), (c) and (d) of the Act, we calculated 
    a CEP for sales made by affiliated U.S. resellers that took place after 
    importation into the United States. EP and CEP were based on the packed 
    C&F, delivered, CIF duty paid, or ex-dock duty paid price to 
    unaffiliated purchasers in, or for exportation to, the United States. 
    As appropriate, we made deductions for discounts and rebates, including 
    early payment discounts. We added to U.S. price amounts for duty 
    drawback, pursuant to section 772 (c)(1)(B) of the Act, to the extent 
    that such rebates were not excessive (see Pipe First Review). We also 
    made deductions for movement expenses in accordance with section 
    772(c)(2)(A) of the Act; these included foreign inland freight, foreign 
    brokerage and handling, ocean freight, marine insurance, U.S. customs 
    brokerage, U.S. customs duties, harbor maintenance fees, merchandise 
    processing fees, and U.S. inland freight expenses (freight from port to 
    warehouse and freight from warehouse to the customer).
        In accordance with section 772(d)(1) of the Act, we deducted from 
    CEP those selling expenses associated with economic activities 
    occurring in the United States, including commissions, direct selling 
    expenses (credit costs, introduction allowances, and warranty 
    expenses), inventory carrying costs, and indirect selling expenses, 
    where applicable. Credit expenses were offset by interest revenues, 
    where applicable. We also deducted from CEP an amount for profit in 
    accordance with section 772(d)(3) of the Act.
    
    Normal Value
    
        We compared the aggregate quantity of home market and U.S. sales 
    and determined that the quantity of each company's sales in its home 
    market was more than five percent of the quantity of its sales to the 
    U.S. market. Consequently, pursuant to section 773(a)(1)(B) of the Act, 
    we based NV on home market sales.
        Certain respondents reported sales in the home market of 
    ``overrun'' merchandise (i.e., sales of a greater quantity of pipe than 
    the customer ordered due to overproduction). Respondents claimed that 
    we should disregard ``overrun'' sales in the home market as outside the 
    ordinary course of trade.
        Section 773(a)(1)(B) of the Act provides that normal value shall be 
    based on the price at which the foreign like product is sold in the 
    usual commercial quantities and in the ordinary course of trade. 
    Ordinary course of trade is defined in section 771(15) of the Act. We 
    analyzed the following criteria to determine whether ``overrun'' sales 
    differ from other sales of commercial pipe: (1) ratio of overrun sales 
    to total home market sales; (2) number of overrun customers compared to 
    total number of home market customers; (3) average price of an overrun 
    sale compared to average price of a commercial sale; (4) profitability 
    of overrun sales compared to profitability of commercial sales; and (5) 
    average quantity of an overrun sale compared to the average quantity of 
    a commercial sale. Based on our analysis of these criteria and on an 
    analysis of the terms of sale, we found certain overrun sales to be 
    outside the ordinary course of trade. This analysis is consistent with
    
    [[Page 64562]]
    
    the analysis sustained by the Court of International Trade in Laclede 
    Steel Co. V. United States, Slip. Op. 94-114 (1995).
        Hyundai and SeAH had sales in the home market to affiliated 
    customers. To test whether these sales were made at arm's length, we 
    compared the starting prices of sales to affiliated and unaffiliated 
    customers, net of all movement charges, direct and indirect selling 
    expenses, discounts and packing. Where the price to the affiliated 
    party was on average 99.5 percent or more of the price to the 
    unaffiliated parties, we determined that the sales made to the 
    affiliated party were at arm's length and included those sales in our 
    calculation of NV pursuant to 19 CFR 353.45(a).
        We made adjustments for differences in packing in accordance with 
    section 773(a)(6)(A) and B(i) of the Act. We also made adjustments for 
    movement expenses, consistent with section 773(a)(6)(B) of the Act, for 
    inland freight. In addition, we made adjustments for differences in 
    cost attributable to differences in physical characteristics of the 
    merchandise pursuant to section 773(a)(6)(C)(ii) of the Act, as well as 
    for differences in circumstances of sale (COS) in accordance with 
    section 773(a)(6)(C)(iii) of the Act and 19 CFR. 353.56. For 
    comparisons to EP, we made COS adjustments by deducting direct selling 
    expenses incurred on home market sales (credit expenses as offset by 
    interest revenue) and adding U.S. direct selling expenses (credit 
    costs, introduction allowances, and warranty expenses). For comparisons 
    to CEP, we made COS adjustments by deducting direct selling expenses 
    incurred on home market sales. Since no respondent had U.S. direct 
    selling expenses other than those deducted from the starting price in 
    calculating CEP pursuant to section 772(d) of the Act, we made no 
    additions to normal value in making COS adjustments. We also made 
    adjustments, where applicable, for indirect selling expenses incurred 
    on home market sales to offset commissions in EP calculations; 
    specifically, we deducted from normal value the lesser of (1) the 
    amount of commission paid on a U.S. sale for a particular product, or 
    (2) the amount of indirect selling expenses incurred on the home market 
    sales for a particular product, including inventory carrying costs in 
    accordance with 19 CFR 353.56.
    
    Level of Trade/CEP Offset
    
        As set forth in section 773(a)(1)(B)(i) of the Act and in the 
    Statement of Administrative Action (SAA) accompanying the URAA at 829-
    831, to the extent practicable, the Department will calculate NV based 
    on sales at the same LOT as the EP or CEP. When the Department is 
    unable to find sales of the foreign like product in the comparison 
    market at the same LOT as the EP or CEP, the Department may compare the 
    U.S. sale to sales at a different LOT in the comparison market.
        We determine that sales are made at different levels of trade if 
    they are made at different marketing stages (or their equivalent). 
    Substantial differences in selling activities are a necessary, but not 
    sufficient, condition for determining that there is a difference in the 
    stages of marketing. See Certain Welded Carbon Steel Standard Pipes and 
    Tubes from India; Preliminary Results of New Shipper Antidumping Duty 
    Administrative Review, 62 FR 23760, 23761(May 1, 1997). See, also, 19 
    CFR 351.412 (62 FR 27296, 27414-27415 (May 19, 1997)) for a concise 
    description of this practice.
        In implementing these principles in this review, we obtained 
    information from each respondent regarding the marketing stage involved 
    in the reported home market and U.S. sales, including a description of 
    the selling activities performed by the respondents for each channel of 
    distribution. (For further information on the LOT analysis for each 
    company, see the Memorandum from the team to S. Kuhbach of December 1, 
    1997.) Pursuant to section 773(a)(1)(B)(i) of the Act and the SAA at 
    827, in identifying levels of trade for EP and home market sales we 
    considered the selling functions reflected in the starting prices 
    before any adjustments. For CEP sales, we considered only the selling 
    activities reflected in the price after the deduction of expenses and 
    profit under section 772(d) of the Act. We expect that, if claimed 
    levels of trade are the same, the functions and activities of the 
    seller should be similar. Conversely, if a party claims that levels of 
    trade are different for different groups of sales, the functions and 
    activities of the seller should be dissimilar.
        When CEP sales have been made in the United States, in SeAH's case, 
    section 773(a)(7)(B) of the Act establishes that a CEP ``offset'' may 
    be made provided that two conditions exist: (1) NV is established at a 
    LOT that is at a more advanced stage of distribution than the LOT of 
    the CEP; and (2) the data available do not permit a determination that 
    there is a pattern of consistent price differences between sales at 
    different levels of trade in the comparison market.
    
    Shinho, Hyundai, and KISCO/Union
    
        Based on an analysis of the selling functions, class of customers, 
    and level of selling expenses, we found that sales made by Shinho, 
    Hyundai and KISCO/Union were at a single stage in the marketing process 
    in both the home market and the United States (i.e., one LOT exists in 
    home market and one LOT exists in the United States with respect to 
    each company). Moreover, because the stages of marketing in the two 
    markets were not substantially dissimilar, we have preliminarily found 
    that sales in both markets are at the same LOT and consequently no LOT 
    adjustment is warranted.
    
    SeAH
    
        With respect to SeAH's EP sales, we found that sales were made at a 
    single stage in the marketing process in both the home market and the 
    United States, and that these stages of marketing were not 
    substantially dissimilar. Therefore, we have preliminarily found that 
    SeAH's EP and home market sales are at the same LOT and that no LOT 
    adjustment is needed.
        SeAH asserts that its home market sales are at a more advanced LOT 
    than its CEP sales because the CEP LOT does not include inventory 
    maintenance or expenses associated with arranging for freight. We have 
    preliminarily determined that these differences in selling activities 
    are not substantial and, therefore, that SeAH's home market and CEP 
    sales are made at the same marketing stages. Consequently, we 
    preliminarily determine that SeAH's home market and U.S. sales are at 
    the same LOT and no CEP offset is warranted.
    
    Cost of Production Analysis
    
        Based on timely allegations filed by the petitioners, the 
    Department initiated a cost of production (COP) investigation of Union/
    KISCO to determine whether sales were made at prices below the COP. See 
    Memoranda from Craig Matney to Office Director Susan Kuhbach, dated 
    June 24 and June 25, 1997.
        Because we disregarded sales below the COP in the less-than-fair-
    value (LTFV) investigation for Hyundai, SeAH, and Shinho (see Circular 
    Welded Non-Alloy Steel Pipe from Korea: Notice of Final Court Decision 
    and Amended Final Determination, 60 FR 55833, November 3, 1995 (Pipe 
    LTFV)), we had reasonable grounds to believe or suspect that sales of 
    the foreign product under consideration for the determination of NV in 
    this review may have been made at prices below the COP, as provided by
    
    [[Page 64563]]
    
    section 773(b)(2)(A)(ii) of the Act. Therefore, pursuant to section 
    773(b)(1) of the Act, we initiated a COP investigation of these 
    companies' home market.
        We conducted the COP analysis described below.
    
    A. Calculation of COP
    
        In accordance with section 773(b)(3) of the Act, we calculated the 
    weighted-average COP, by model, based on the sum of the cost of 
    materials, fabrication and general expenses, and packing costs.
    
    B. Results of the COP Test
    
        Pursuant to section 773(b)(2)(C), where less than 20 percent of a 
    respondent's sales of a given product were made at prices below the 
    COP, we did not disregard any below-cost sales of that product because 
    we determined that the below-cost sales were not made in ``substantial 
    quantities.'' Where 20 percent or more of a respondent's sales of a 
    given product were made at prices below the COP, we disregarded the 
    below-cost sales because such sales were found to be made within an 
    extended period of time in ``substantial quantities'' in accordance 
    with sections 773(b)(2)(B) and (C) of the Act. Moreover, based on 
    comparisons of price to weighted-average COPs for the POR, we 
    determined that the below-cost sales of the product were at prices 
    which would not permit recovery of all costs within a reasonable period 
    of time, in accordance with section 773(b)(2)(D) of the Act. Where all 
    contemporaneous sales of a specific product were made at prices below 
    the COP, we calculated NV based on CV, in accordance with section 
    773(a)(4) of the Act.
        We found that all respondents made home market sales at below COP 
    prices within an extended period of time in substantial quantities. 
    Further, we found that these sales prices did not permit for the 
    recovery of costs within a reasonable period of time. We therefore 
    excluded these sales from our analysis in accordance with section 
    773(b)(1) of the Act.
    
    Constructed Value
    
        Where NV could not be based on home market sales either because (1) 
    there were no contemporaneous sales of a comparable product or (2) all 
    contemporaneous sales of the comparison product failed the COP test, we 
    compared U.S. prices to CV. In accordance with section 773(e)(1) of the 
    Act, we calculated CV based on the sum of the cost of materials of the 
    product sold in the United States, plus amounts for general expenses, 
    home market profit and U.S. packing costs. We calculated each 
    respondent's CV based on the methodology described in the ``Calculation 
    of COP'' section of this notice, above. In accordance with section 
    773(e)(2)(A), we used the actual amounts incurred and realized by 
    respondents in connection with the production and sale of the foreign 
    like product, in the ordinary course of trade, for consumption in the 
    foreign country to calculate general expenses and home market profit.
        For price-to-CV comparisons, we made adjustments to CV in 
    accordance with section 773(a)(8) of the Act and 19 CFR 353.56 for COS 
    differences. For comparisons to EP, we made COS adjustments by 
    deducting direct selling expenses incurred on home market sales and 
    adding U.S. direct selling expenses. For comparisons to CEP, we made 
    COS adjustments by deducting direct selling expenses incurred on home 
    market sales. We also made adjustments, where applicable, for indirect 
    selling expenses incurred on home market sales to offset U.S. 
    commissions in EP comparisons; specifically, we deducted from normal 
    value the lesser of: (1) The amount of commission paid on a U.S. sale 
    for a particular product, or (2) the amount of indirect selling 
    expenses incurred on the home market sales for a particular product.
    
    Currency Conversion
    
        We made currency conversions in accordance with section 773A of the 
    Act. Currency conversions were made at the rates certified by the 
    Federal Reserve Bank. Section 773A(a) directs the Department to use a 
    daily exchange rate to convert foreign currencies into U.S. dollars 
    unless the daily rate involves a ``fluctuation.'' It is our practice to 
    find that a fluctuation exists when the daily exchange rate differs 
    from a benchmark rate by 2.25 percent. See Preliminary Results of 
    Antidumping Duty Administrative Review: Certain Welded Carbon Steel 
    Pipe and Tube from Turkey, 61 FR 35188, 35192 (July 5, 1996). The 
    benchmark rate is defined as the rolling average of the rates for the 
    past 40 business days.
    
    Preliminary Results of the Review
    
        As a result of this review, we preliminarily determine that the 
    following margin exists for the period November 1, 1995, through 
    October 31, 1996:
    
    ------------------------------------------------------------------------
                                                                    Margin  
                        Manufacturer/exporter                      (percent)
    ------------------------------------------------------------------------
    Hyundai.....................................................        4.10
    Union/KISCO.................................................        2.36
    Shinho......................................................        3.34
    SeAH........................................................        7.71
    ------------------------------------------------------------------------
    
        Parties to the proceeding may request disclosure within five days 
    of the date of publication of this notice. Interested parties may also 
    request a hearing within ten days of publication. If requested, a 
    hearing will be held March 2, 1998. Interested parties may submit case 
    briefs pertaining to non-verification issues by January 12, 1998. 
    Rebuttal briefs, which must be limited to issues raised in the case 
    briefs, may be filed not later than January 20, 1998. Briefs pertaining 
    to verification issues must be submitted by February 26, 1998, with 
    rebuttal briefs not later than March 5, 1998. The Department will issue 
    a notice of the final results of this administrative review, which will 
    include the results of its analysis of issues raised in any such 
    briefs, within 120 days from the publication of these preliminary 
    results.
        The Department shall determine, and the Customs Service shall 
    assess, antidumping duties on all appropriate entries. In accordance 
    with the methodology in Final Results of Antidumping Duty 
    Administrative Review and Partial Termination of Administrative Review: 
    Circular Welded Non-Alloy Steel Pipe from the Republic of Korea (62 FR 
    55574, October 27, 1997), we calculated exporter/importer-specific 
    assessment values by dividing the total dumping duties due for each 
    importer by the number of tons used to determine the duties due. We 
    will direct Customs to assess the resulting per-ton dollar amount 
    against each ton of the merchandise entered by these importers' during 
    the review period.
        Furthermore, the following deposit requirements will be effective 
    upon completion of the final results of this administrative review for 
    all shipments of steel wire rope from Korea entered, or withdrawn from 
    warehouse, for consumption on or after the publication date of the 
    final results of this administrative review, as provided by section 
    751(a)(1) of the Act: (1) The cash deposit rate for the reviewed 
    companies will be the rates established in the final results of this 
    administrative review (except no cash deposit will be required for 
    those companies whose weighted-average margin is de minimis, i.e., less 
    than 0.5 percent); (2) for merchandise exported by manufacturers or 
    exporters not covered in this review but covered in the original LTFV 
    investigation or a previous review, the cash deposit will continue to 
    be the most recent rate published in the final determination or
    
    [[Page 64564]]
    
    final results for which the manufacturer or exporter received an 
    individual rate; (3) if the exporter is not a firm covered in this 
    review, the previous review, or the original investigation, but the 
    manufacturer is, the cash deposit rate will be the rate established for 
    the most recent period for the manufacturer of the merchandise; and (4) 
    if neither the exporter nor the manufacturer is a firm covered in this 
    or any previous reviews, the cash deposit rate will be 4.80 percent, 
    the ``all others'' rate established in the less-than-fair-value 
    investigation. See Pipe LTFV.
        This notice serves as a preliminary reminder to importers of their 
    responsibility to file a certificate regarding the reimbursement of 
    antidumping duties prior to liquidation of the relevant entries during 
    this review period. Failure to comply with this requirement could 
    result in the Secretary's presumption that reimbursement of antidumping 
    duties occurred and the subsequent assessment of double antidumping 
    duties.
        This administrative review and notice are in accordance with 
    sections 751(a)(1) and 751(d) of the Act (19 U.S.C. 1675(a)(1)), 19 CFR 
    353.22.
    
        Dated: December 1, 1997.
    Robert S. LaRussa,
    Assistant Secretary for Import Administration.
    [FR Doc. 97-32063 Filed 12-5-97; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Effective Date:
12/8/1997
Published:
12/08/1997
Department:
International Trade Administration
Entry Type:
Notice
Action:
Notice of preliminary results of antidumping duty administrative review of circular welded non-alloy steel pipe from the Republic of Korea.
Document Number:
97-32063
Dates:
December 8, 1997.
Pages:
64559-64564 (6 pages)
Docket Numbers:
A-580-809
PDF File:
97-32063.pdf