[Federal Register Volume 64, Number 56 (Wednesday, March 24, 1999)]
[Notices]
[Pages 14213-14214]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-7215]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-817]
Oil Country Tubular Goods From Mexico; Preliminary Results of
Changed Circumstances Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of preliminary results of changed circumstances
antidumping duty administrative review.
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SUMMARY: Since 1997, the Department of Commerce (``the Department'')
has received two requests to revoke the antidumping duty (AD) order
covering Oil Country Tubular Goods (``OCTG'') from Mexico as it
pertains to drill pipe with tool joints attached (commonly referred to
as finished drill pipe). One request came from the International
Association of Drilling Contractors (``IADC''), requesting that the
Department self-initiate a changed circumstances review for the
antidumping duty orders covering OCTG from Mexico, Japan, and
Argentina. The other request came from Grant Prideco Inc., the leading
producer of finished drill pipe in the United States. The latter
request, covering only the antidumping duty order on OCTG from Mexico,
was withdrawn.
Because of the unusual circumstances surrounding this product, we
initiated an antidumping duty changed circumstances administrative
review to determine the extent of domestic industry support for
continuing the antidumping duty order on OCTG from Mexico with regard
to both unfinished and finished drill pipe. We included both finished
and unfinished drill pipe in the review because the International Trade
Commission determined, in its injury test, that both finished and
unfinished drill pipe constituted a ``like product'' with respect to
the antidumping duty orders on OCTG from Argentina, Japan, and Mexico.
We solicited comments from parties regarding this review, and also
requested production figures for 1997 and the first quarter of 1998 for
all identified domestic producers of the like product (i.e. finished
and unfinished drill pipe). We conducted verifications of the submitted
data between September 29 and October 2, 1998.
Based on the information submitted by producers, and our findings
at verification, we preliminarily determine that there is insufficient
domestic industry support for proceeding to revoke the antidumping duty
order on oil country tubular goods with respect to finished drill pipe.
Interested parties are invited to comment on these preliminary
results. Parties who submit argument in this proceeding are requested
to submit with the argument (1) a statement of the issue and (2) a
brief summary of the argument (no longer than five pages, including
footnotes).
EFFECTIVE DATE: March 24, 1999.
FOR FURTHER INFORMATION CONTACT: John K. Drury or Richard Weible,
Import Administration, International Trade Administration, U.S.
Department of Commerce, 14th Street and Constitution Avenue, N.W.,
Washington, D.C. 20230; telephone (202) 482-3208 or (202) 482-1103,
respectively.
SUPPLEMENTARY INFORMATION:
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 by the Uruguay Round
Agreements Act. In addition, unless otherwise indicated, all citations
to the Department's regulations are to the current regulations.
Scope of the Review
The merchandise subject to this changed circumstances review is
finished oil well drill pipe with tool joints attached. This
merchandise is currently classifiable in the Harmonized Tariff Schedule
of the United States (HTSUS) under item number 8431.43.8010 as ``Parts
suitable for use solely or principally with the machinery of headings
8425 to 8430, [o]f machinery of heading 8426, 8429 or 8430: [p]arts for
boring or sinking machinery of subheading 8430.41 or 8430.49: [o]ther:
[o]f oil and gas field machinery.'' Although the HTSUS subheadings are
provided for convenience and customs purposes, our written description
of the scope of this review is dispositive.
[[Page 14214]]
Background
On July 8, 1997, the IADC requested that the Department self-
initiate a changed circumstances review with respect to finished drill
pipe for all countries with finished drill pipe included in the OCTG
antidumping duty order. On March 13, 1998, the Department responded to
the IADC request. On January 28, 1998, Grant Prideco, Inc. requested
revocation of the AD order on Mexican OCTG with respect to finished
drill pipe. The Department received letters in opposition to this
second request from OMSCO Industries and Drill Pipe Industries, Inc. on
February 12, 1998, and February 13, 1998, respectively. On March 16,
1998, Grant Prideco withdrew its request for a changed circumstances
review.
Subsequent to the Department's response to IADC on March 13, 1998,
parties raised questions regarding whether ``substantially all'' of the
domestic industry supports continuation of the AD order on OCTG from
Mexico with respect to finished drill pipe. In light of the request
originally filed by Grant Prideco and the information available to the
Department, the Department believed that Grant Prideco's affirmative
statement of no interest constituted good cause for conducting a
changed circumstances review solely to determine if ``substantially
all'' of the domestic producers of the like product supported partial
revocation of the antidumping duty order with respect to finished drill
pipe.
Analysis
Section 351.222(g)(i) of the Department's regulations provides that
the Secretary may revoke an order in part based on changed
circumstances if ``producers accounting for substantially all of the
production of the domestic like product to which * * * the part of the
order to be revoked * * * have expressed a lack of interest'' in the
continued existence of the order, in whole or in part. The Department
interprets ``substantially all'' production to mean at least 85 percent
of domestic production of the domestic like product. The Department
thus conducted the review solely to determine the level of support of
domestic producers of the domestic like product for maintaining this
order with respect to finished drill pipe.
In order to determine whether ``substantially all'' of the domestic
producers supported revocation in part of the order, the Department
solicited comments from all parties with an interest in this review. In
addition, the Department requested production information from
producers of both finished and unfinished drill pipe. The Department
received numerous comments regarding interest in the order, including
comments on the supply and production lead times of finished drill pipe
in the United States. Additionally, the Department received production
information from producers of finished drill pipe, as well as producers
of unfinished drill pipe.
To verify this information, the Department conducted verifications
of three of the domestic producers of the like product (Grant Prideco,
OMSCO, and Drill Pipe Inc.) in September and October of 1998. Copies of
the public versions of the verification reports for all three companies
are available in the Import Administration's Central Records Unit.
Based on the responses by domestic producers, and the results of
our verification, we have determined that less than 85 percent of the
domestic industry of the like product supports the partial revocation
of the order.
Parties wishing to comment on these results must submit briefs to
the Department within 30 days after the publication of this notice in
the Federal Register. Parties will have five days subsequent to this
date to submit rebuttal briefs. Any requests for hearing must be filed
within 30 days of the publication of this notice in the Federal
Register.
Preliminary Results of Review
Based on the submissions by the producers, the Department has
preliminarily determined that producers supporting a partial revocation
of the order account for less than 85 percent of domestic production of
the like product. Under the definition given above, ``substantially
all'' of the domestic producers of the like product do not support
partial revocation of the order with respect to finished drill pipe. As
a result, we preliminarily determine that there is no basis to revoke,
in part, the antidumping duty order on oil country tubular goods from
Mexico with respect to finished drill pipe.
Dated: March 11, 1999.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
[FR Doc. 99-7215 Filed 3-23-99; 8:45 am]
BILLING CODE 3510-DS-P
