98-9091. Certain Welded Carbon Steel Pipes and Tubes from Thailand: Preliminary Results of Antidumping Duty Administrative Review  

  • [Federal Register Volume 63, Number 66 (Tuesday, April 7, 1998)]
    [Notices]
    [Pages 16974-16979]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-9091]
    
    
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    DEPARTMENT OF COMMERCE
    
    International Trade Administration
    [A-549-502]
    
    
    Certain Welded Carbon Steel Pipes and Tubes from Thailand: 
    Preliminary Results of Antidumping Duty Administrative Review
    
    AGENCY: Import Administration, International Trade Administration, 
    Department of Commerce.
    
    ACTION: Notice of Preliminary Results of Antidumping Duty 
    Administrative Review: Certain Welded Carbon Steel Pipes and Tubes from 
    Thailand
    
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    SUMMARY: In response to requests by Saha Thai Steel Pipe Co., Ltd. 
    (``Saha Thai'') and its affiliated exporter, S.A.F. Pipe Export Co., 
    Ltd., (``SAF''), and two importers, Ferro Union Inc. (``Ferro Union''), 
    and ASOMA Corp. (``ASOMA''), the Department of Commerce (``the 
    Department'') is conducting an administrative review of the antidumping 
    duty order on certain welded carbon steel pipes and tubes from 
    Thailand. This review covers Saha Thai/SAF, a manufacturer/exporter of 
    the subject merchandise to the United States. The period of review 
    (POR) is March 1, 1996 through February 28, 1997.
        We have preliminarily determined that the respondent sold subject 
    merchandise at less than normal value (NV) during the POR. If these 
    preliminary results are adopted in our final results, we will instruct 
    U.S. Customs to assess antidumping duties based on the differences 
    between the export price and NV.
        Interested parties are invited to comment on these preliminary 
    results. Parties who submit argument in this proceeding should also 
    submit with the argument (1) a statement of the issue, and (2) a brief 
    summary of the argument.
    
    EFFECTIVE DATE: April 7, 1998.
    
    FOR FURTHER INFORMATION CONTACT: John Totaro or Dorothy Woster, AD/CVD 
    Enforcement Group III, Office VII, Import Administration, International 
    Trade Administration, U.S. Department of Commerce, 14th Street and 
    Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
    1374 or (202) 482-3362, respectively.
    
    Applicable Statute
    
        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 (hereinafter, 
    ``the Act'') by the Uruguay Round Agreements Act (``URAA''). In 
    addition, unless otherwise indicated, all citations to the Department's 
    regulations are to the old regulations (19 C.F.R. Part 353 (1997)), as 
    amended by the interim regulations published in the Federal Register on 
    May 11, 1995, (60 FR 25130). Although the Department's new regulations, 
    codified at 19 CFR 351 (62 FR 27296, May 19, 1997) (``Final 
    Regulations''), do not govern this administrative review, citations to 
    those regulations are provided, where appropriate, as a statement of 
    current departmental practice.
    
    
    [[Page 16975]]
    
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        On March 11, 1986, the Department published in the Federal Register 
    an antidumping duty order on welded carbon steel pipes and tubes from 
    Thailand (51 FR 8341). On March 7, 1997, the Department published a 
    notice of opportunity to request an administrative review of this order 
    covering the period March 1, 1996 through February 28, 1997 (62 FR 
    10521). A timely request for an administrative review of the 
    antidumping order with respect to sales by Saha Thai/SAF during the POR 
    was filed jointly by Saha Thai, SAF, Ferro Union, and ASOMA. The 
    Department published a notice of initiation of this antidumping duty 
    administrative review on April 24, 1997 (62 FR 19988). On May 14, 1997, 
    certain domestic producers of standard pipe products entered an 
    appearance in this review: Allied Tube & Conduit Corporation, Sawhill 
    Tubular Division--Armco, Inc., Wheatland Tube Company, and Laclede 
    Steel Company, (``petitioners'' or ``domestic interested parties'').
        Because the Department determined that it was not practicable to 
    complete this review within statutory time limits, on November 19, 
    1997, we published in the Federal Register our notice of extension of 
    time limits for this review (62 FR 61802). As a result, we extended the 
    deadline for these preliminary results. The deadline for the final 
    results will continue to be 120 days after publication of these 
    preliminary results.
    
    Scope of the Review
    
        The products covered by this administrative review are certain 
    welded carbon steel pipes and tubes from Thailand. The subject 
    merchandise has an outside diameter of 0.375 inches or more, but not 
    exceeding 16 inches. These products, which are commonly referred to in 
    the industry as ``standard pipe'' or ``structural tubing,'' are 
    hereinafter designated as ``pipe and tube.'' The merchandise is 
    classifiable under the Harmonized Tariff Schedule (HTS) item numbers 
    7306.30.1000, 7306.30.5025, 7306.30.5032, 7306.30.5040, 7306.30.5055, 
    7306.30.5085 and 7306.30.5090. Although the HTS subheadings are 
    provided for convenience and Customs purposes, our written description 
    of the scope of the order is dispositive. This review covers sales by 
    Saha Thai/SAF during the period March 1, 1996 through February 28, 
    1997.
    
    Verification
    
        As provided in section 782(i) of the Act, we verified sales 
    information provided by the respondent Saha Thai from March 2-6, 1997, 
    using standard verification procedures, including examination of 
    relevant financial records and analysis of original documentation used 
    by Saha Thai to prepare responses to requests for information from the 
    Department. We also verified sales and level of trade issues at one of 
    Saha Thai's home market resellers which the Department determined was 
    an affiliate of Saha Thai. Our verification results are outlined in the 
    public version of the verification report (Memorandum to Roland L. 
    MacDonald) from John B. Totaro and Dorothy A. Woster, March 19, 1998 
    (``Saha Thai Verification Report'').
    
    Affiliation and Collapsing Determinations
    
        Pursuant to section 771 (33) of the Act, the Department considers 
    the following persons or parties to be affiliated:
        A. Members of a family, including brothers and sisters (whether by 
    the whole or half blood), spouse, ancestors, and lineal descendants.
        B. Any officer or director of an organization and such 
    organization.
        C. Partners.
        D. Employer and employee.
        E. Any person directly or indirectly owning, controlling, or 
    holding with power to vote, five percent or more of the outstanding 
    voting stock or shares of any organization and such organization.
        F. Two or more persons directly or indirectly controlling, 
    controlled by, or under common control with, any person.
        G. Any person who controls any other person and such other person. 
    For the purposes of this paragraph, a person shall be considered to 
    control another person if the person is legally or operationally in a 
    position to exercise restraint or direction over the other person.
        It is the Department's practice to collapse affiliated producers 
    for purposes of calculating a margin when the facts demonstrate that 
    the relationship is such that there is a strong possibility of 
    manipulation of prices and production decisions that would result in 
    circumvention of the antidumping order. Although the Department's new 
    regulations published May 19, 1997 (62 FR 27410) do not govern this 
    review, they do codify the Department's current practice. Current 
    practice calls for the Department to treat two or more affiliated 
    producers as a single entity (i.e., ``collapse'' the firms) for 
    purposes of calculating a dumping margin when the following three 
    criteria are met:
        1. The producers must be affiliated;
        2. The producers must have production facilities for similar or 
    identical products that would not require substantial retooling of 
    either facility in order to restructure manufacturing priorities; and
        3. There must be a significant potential for the manipulation of 
    price or production. Final Regulations, 62 FR 27296, 27410.
        In identifying whether there is a significant potential for the 
    manipulation of price or production, the factors the Department 
    considers include: the level of common ownership; whether managerial 
    employees or board members of one of the affiliated producers sit on 
    the board(s) of directors of the other affiliated parties; and whether 
    operations are intertwined, such as through the sharing of sales 
    information, involvement in production and pricing decisions, the 
    sharing of facilities or employees, or significant transactions between 
    the affiliated producers.
    
    A. Producers of Subject Merchandise
    
        The Department finds that Saha Thai is affiliated under section 
    771(33)(F) of the Act with two Thai producers of the subject 
    merchandise that are not respondents in this review: Thai Tube Co., 
    Ltd. (``Thai Tube''), and Thai Hong Steel Pipe Import Export Co., Ltd. 
    (``Thai Hong''). This affiliation is established through common control 
    by the Lamatipanont family. For a more detailed discussion of the 
    Department's analysis, see Memorandum to the File, March 31, 1998 
    (``Producers Affiliation-Collapsing Memorandum.'')
        Further, based on public information on the record of this review, 
    the Department determines that Thai Tube and Thai Hong are both 
    producers of the subject merchandise, and therefore have production 
    facilities for identical products to those produced by Saha Thai. We, 
    therefore, conclude that Thai Tube and Thai Hong could restructure 
    their production priorities to produce the subject merchandise with 
    little or no retooling of their facilities.
        In considering the ``significant potential'' factors described 
    above, the Department finds, based on the evidence on the record, that 
    there is substantial involvement in the ownership and management of 
    these three producers by members of the Lamatipanont family. However, 
    because there is no evidence of intertwined
    
    [[Page 16976]]
    
    operations, we preliminarily find that a significant potential for 
    manipulation of price or production does not exist between Saha Thai 
    and Thai Tube or between Saha Thai and Thai Hong. Therefore, we have 
    not collapsed these three entities for the purpose of calculating a 
    dumping margin. However, we will continue to examine this issue for the 
    final results. See Producers Affiliation-Collapsing Memorandum.
    
    B. Siam Steel Group
    
        The Department finds that the member companies of the Siam Steel 
    Group are affiliated under section 771(33)(F) of the Act because they 
    are owned and managed by the Karuchit/Kunanantakul family. In 
    discussing the scope of the Department's analysis of affiliation 
    through ``control'' under section 771(33) of the Act, the Statement of 
    Administrative Action accompanying the Uruguay Round Agreements Act 
    states that ``[a] company may be in a position to exercise restraint or 
    direction, for example, through corporate or family groupings * * *'' 
    Statement of Administrative Action, H.R. Doc. 316, Vol.1, 103d Cong. 
    (1994) (``SAA'') at 838. The facts on the record in this review 
    demonstrate that the Siam Steel Group, a grouping of Thai entities 
    (including Saha Thai) which produce, sell and provide services related 
    to various steel products under common control by the Karuchit/
    Kunanantakul family, is the type of ``corporate or family grouping'' 
    envisioned in the SAA and the Final Regulations. Based on the facts in 
    this case, we find that Saha Thai is affiliated under section 
    771(33)(F) with each and every member of the Siam Steel Group. See 
    Memorandum to the File, March 31, 1998 (``SSG Affiliation-Collapsing 
    Memorandum.'')
        ``Company E'' is a producer of PVC-lined steel pipes and a member 
    of the Siam Steel Group. Therefore, we considered whether Saha Thai and 
    Company E should be collapsed as a single entity for purposes of 
    calculating an antidumping margin. Company E produces standard welded 
    steel BS-medium grade pipe as an intermediate product to finished PVC-
    lined pipe. In doing so, Company E uses a production process similar to 
    that used by Saha Thai to manufacture the subject merchandise with 
    additional steps to yield PVC-lined pipe. Saha Thai stated that Company 
    E subjects the intermediate, unlined steel pipe to substantial 
    additional manufacturing operations and associated costs to transform 
    this the intermediate product to PVC-lined pipe. In consideration of 
    these facts, we preliminarily do not conclude that it would not require 
    substantial retooling of Company E's facilities to shift production of 
    the subject merchandise from Saha Thai to Company E. Evidence on the 
    record indicates that executing this type of shift would require 
    extensive and expensive infrastructure changes in Company E. Therefore, 
    the second collapsing criterion of section 351.401(f) of the Final 
    Regulations is not satisfied. We will continue to examine this issue 
    for the final results.
        Because we determine that the second collapsing criterion is not 
    satisfied, it is not necessary to consider the third criterion in the 
    collapsing analysis--identifying the potential for manipulation of 
    price or production. See Certain Porcelain-on-Steel Cookware From 
    Mexico: Final Results of Antidumping Duty Administrative Review, 62 FR 
    42496, 42497 (August 7, 1997). For these reasons, we determine that it 
    is not appropriate to treat the affiliated companies Saha Thai and 
    Company E as a single entity for the purposes of calculating an 
    antidumping margin. See SSG Affiliation-Collapsing Memorandum.
    
    C. Resellers
    
        The record evidence demonstrates that the Sae Haeng/Ratanasirivilai 
    family controls both Saha Thai and Company A, the Lamatipanont family 
    controls both Saha Thai and Company B, and the Ampapankit family 
    controls both Saha Thai and Company C. The record therefore supports 
    our finding of affiliation under section 771(33)(F) of the Act between 
    Saha Thai and these three resellers. See Memorandum to the File, March 
    31, 1998 (``Resellers Affiliation Memorandum'').
    
    Fair Value Comparisons
    
        To determine whether sales of steel pipes and tubes from Thailand 
    to the United States were made at less than normal value (NV), we 
    compared the United States price (USP) to the NV for Saha Thai as 
    specified in the ``United States Price'' and ``Normal Value'' sections 
    of this notice. In accordance with section 777A(d)(2), we calculated 
    monthly weighted-average prices for NV and compared these to individual 
    U.S. transactions.
    
    United States Price
    
        We based USP on EP, in accordance with section 772(b) of the Act, 
    when the subject merchandise was sold to unaffiliated purchasers in the 
    United States prior to importation. Saha Thai sells to the United 
    States through its affiliated export company SAF. We classified all 
    Saha Thai sales to United States customers as EP sales because we did 
    not find Saha Thai/SAF to be affiliated with its U.S. distributors. 
    Certain Welded Carbon Steel Pipes and Tubes From Thailand: Final 
    Results of Antidumping Duty Administrative Review, 61 FR 56515, 56517 
    (November 1, 1996). In this review, the record evidence presents no 
    factual circumstances warranting a change from this prior analysis. 
    Accordingly, we calculated the EP based on the price from Saha Thai/ 
    SAF to unaffiliated parties in the United States where these sales were 
    made prior to importation into the United States, in accordance with 
    section 772(a) of the Act. Where appropriate, in accordance with 
    section 772(c)(2) of the Act, we made deductions from the starting 
    price for ocean freight to the U.S. port, foreign inland freight, 
    foreign brokerage and handling, foreign inland insurance, and bill of 
    lading charge. We also added duty drawback rebated to Saha Thai upon 
    exportation of subject merchandise made from imported coil in 
    accordance with section 771(c)(1) of the Act.
    
    Normal Value
    
        In order to determine whether there is a sufficient volume of sales 
    in the home market to serve as a viable basis for calculating NV, we 
    compared the volume of Saha Thai's home market sales of the foreign 
    like product to the volume of U.S. sales of subject merchandise, in 
    accordance with section 773(a)(1)(C) of the Act. Based on this 
    comparison, we determined that the aggregate volume of Saha Thai's home 
    market sales of the foreign like product is greater than five percent 
    of the aggregate volume of Saha Thai's U.S. sales. Thus, we determined 
    that Saha Thai had a viable home market during the POR. Consequently, 
    we based NV on home market sales.
        As discussed above, we found Saha Thai and its three home market 
    resellers affiliated under section 771(33)(F) of the Act. Based on this 
    finding, we applied the standard arm's length test to Saha Thai's sales 
    to these affiliated resellers. Because these sales were not made at 
    arm's length prices, we required Saha Thai to report the downstream 
    sales made in the home market by the affiliated resellers. These sales 
    were included in our home market normal value calculation. See 
    Memorandum to File from Dorothy Woster, March 31, 1998 (``Analysis 
    Memorandum'').
        Pursuant to section 773(b) of the Act, there were reasonable 
    grounds to believe or suspect that Saha Thai had made home market sales 
    at prices below its COP in this review because the
    
    [[Page 16977]]
    
    Department had disregarded sales below the COP in the 1994-1995 
    administrative review (i.e., the most recently completed review at the 
    time we issued our antidumping questionnaire). As a result, the 
    Department initiated an investigation to determine whether Saha Thai 
    made home market sales during the POR at prices below its COP. We 
    calculated the COP based on the sum of respondent's cost of materials 
    and fabrication for the foreign like product, plus amounts for SG&A and 
    packing costs, in accordance with section 773(b)(3) of the Act.
        We used respondent's reported COP amounts to compute weighted-
    average COPs during the POR. We compared the COP figures to home market 
    sales of the foreign like product as required under section 773(b) of 
    the Act, in order to determine whether these sales had been made at 
    prices below the COP. On a product-specific basis, we compared the COP 
    to home market prices, less any applicable movement charges, discounts 
    and credit notes.
        In determining whether to disregard home market sales made at 
    prices below the COP, we examined (1) whether, within an extended 
    period of time, such sales were made in substantial quantities, and (2) 
    whether such sales were made at prices which permitted the recovery of 
    all costs within a reasonable period of time in the normal course of 
    trade.
        Pursuant to section 773(b)(2)(C) of the Act, where less than 20 
    percent of the respondent's sales of a given product were at prices 
    less than 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 the 
    respondent's sales of a given product during the POR were at prices 
    less than the COP, we determined such sales to have been made in 
    substantial quantities within an extended period of time in accordance 
    with section 773(b)(1)(A) of the Act. In such cases, we also determined 
    that such sales were not made at prices which would permit recovery of 
    all costs within a reasonable period of time, in accordance with 
    section 773(b)(1)(B) of the Act. Therefore, we disregarded the below-
    cost sales.
        On January 8, 1998, the Court of Appeals for the Federal Circuit 
    issued a decision in CEMEX v. United States, 1998 WL 3626 (Fed Cir., 
    1998). In that case, based on the pre-URAA version of the Act, the 
    Court discussed the appropriateness of using constructed value (CV) as 
    the basis for foreign market when the Department finds home market 
    sales to be outside the ``ordinary course of trade.'' This issue was 
    not raised by any party in this proceeding. However, the URAA amended 
    the definition of sales outside the ``ordinary course of trade'' to 
    include sales disregarded as below cost. See Section 771(15) of the 
    Act. Consequently, the Department has determined that it would be 
    inappropriate to resort directly to CV, in lieu of foreign market 
    sales, as the basis for NV if the Department finds foreign market sales 
    of merchandise identical or most similar to that sold in the United 
    States to be outside the ``ordinary course of trade.'' Instead, the 
    Department will use sales of similar merchandise, if such sales exist. 
    The Department will use CV as the basis for NV only when there are no 
    above-cost sales that are otherwise suitable for comparison. Therefore, 
    in this proceeding, when making comparisons in accordance with section 
    771(16) of the Act, we considered all products sold in the home market 
    as described in the ``Scope of Review'' section of this notice, above, 
    that were in the ordinary course of trade (i.e., sales that passed the 
    cost test) for purposes of determining appropriate product comparisons 
    to U.S. sales. Where there were no sales in the ordinary course of 
    trade of the identical or the most similar merchandise in the home 
    market that were otherwise suitable for comparison, we compared U.S. 
    sales to sales of the next most similar foreign like product, based on 
    the characteristics listed in Sections B and C of our antidumping 
    questionnaire. We have implemented the Court's decision in this case, 
    to the extent that the data on the record permitted.
        Where appropriate, we adjusted Saha Thai's home market sales for 
    discounts, credit expenses, inland freight, inland insurance, and 
    warehousing. We also adjusted the home market sales made by reseller 
    Company B for credit notes. In addition, in accordance with section 
    773(a)(6), we deducted home market packing costs and added U.S. packing 
    costs.
        In accordance with section 773(e) of the Act, we calculated CV 
    based on the sum of Saha Thai's cost of materials, fabrication, SG&A, 
    profit, and U.S. packing costs. In accordance with section 773(e)(2)(A) 
    of the Act, we based SG&A expenses and profit on the amounts incurred 
    and realized by Saha Thai in connection with the production and sale of 
    the foreign like product in the ordinary course of trade, for 
    consumption in the foreign country. For selling expenses, we used the 
    average of the selling expenses reported for home market sales that 
    survived the cost test, weighted by the total quantity of those sales. 
    For actual profit, we first calculated the difference between the home 
    market sales value and home market COP, and divided the difference by 
    the home market COP. We then multiplied this percentage by the COP for 
    each U.S. model to derive an actual profit.
    
    Level of Trade
    
        As set forth in section 773(a)(1)(B)(i) of the Act and in the SAA, 
    to the extent practicable, we determine normal value (NV) based on 
    sales in the comparison market at the same level of trade as the export 
    price (EP) or the constructed export price (CEP). The NV level of trade 
    is that of the starting-price sales in the comparison market or, when 
    NV is based on constructed value (CV), that of the sales from which we 
    derive selling, general and administrative expenses and profit. For EP, 
    the U.S. level of trade is the level of the starting-price sale, which 
    is usually from exporter to importer.
        To determine whether NV sales are at a different level of trade 
    than EP or CEP, we examine stages in the marketing process and selling 
    functions along the chain of distribution between the producer and the 
    unaffiliated customer. If the comparison-market sales are at a 
    different level of trade, and the difference affects price 
    comparability, as manifested in a pattern of consistent price 
    differences between the sales on which NV is based and comparison-
    market sales at the level of trade of the export transaction, we make a 
    level of trade adjustment under section 773(a)(7)(A) of the Act. See 
    Notice of Final Determination of Sales at Less Than Fair Value: Certain 
    Cut-to-Length Carbon Steel Plate from South Africa, 62 FR 61731 
    (November 19, 1997).
        For the U.S. market, Saha Thai reported only one level of trade for 
    its EP sales. This single level of trade represents large volume sales 
    to unaffiliated trading companies/distributors in the U.S. In the home 
    market, Saha Thai claimed that sales were made at two levels of trade: 
    (1) large volume home market sales made to unaffiliated trading 
    companies and distributors (made at the same level of trade as U.S. 
    sales), and (2) sales made by its affiliated resellers to retailers and 
    end-users. Saha Thai claimed that the resellers' home market sales are 
    at a more advanced level of trade than Saha Thai/SAF's U.S. and home 
    market sales because the reseller sales require keeping varied 
    inventory on hand, higher warehouse staffing levels, and additional 
    delivery services and selling expenses.
    
    [[Page 16978]]
    
        To determine whether sales in the home market occur at two 
    different levels of trade, and therefore, whether a level of trade 
    adjustment should be applied when U.S. sales are matched to sales by 
    Saha Thai's resellers, we analyzed the selling expenses and functions 
    performed by Saha Thai and its affiliated resellers. In comparing the 
    two claimed home market levels of trade to each other, we note that 
    both Saha Thai and the resellers performed the following selling 
    functions: preparing merchandise for shipment, maintaining sales 
    records, and pricing/ discounts/ rebates. The following selling 
    functions are performed only by the resellers: maintaining inventory, 
    collecting bills, extending credit, pre-sale warehousing, and providing 
    delivery to the customer with its own fleet of trucks. The qualitative 
    nature of these different selling functions is reflective of a more 
    advanced marketing stage, viz-a-viz Saha Thai's sales to trading 
    companies/distributors. Consistent with this finding, we note 
    significant quantifiable difference in selling expenses (indirect 
    selling expenses and presale warehousing expenses) reported by the 
    resellers and Saha Thai. Thus, we determine that resellers' sales were 
    made at a more advanced level of trade than Saha Thai's sales in the 
    home market. Accordingly, where possible, we matched EP sales to home 
    market sales made at the same level of trade, i.e. to home market sales 
    made by Saha Thai.
        When we compare U.S. sales to home market sales at a different 
    level of trade, we make a level-of-trade adjustment if the difference 
    in levels of trade affects price comparability. We determine any effect 
    on price comparability by examining sales at different levels of trade 
    in a single market, the home market. Any price effect must be 
    manifested in a pattern of consistent price differences between home 
    market sales used for comparison and sales at the equivalent level of 
    trade of the export transaction. To quantify the price differences, we 
    calculate the difference in the average of the net prices of the same 
    models sold at different levels of trade. We use the average difference 
    in net prices to adjust NV when NV is based on a level of trade 
    different from that of the export sale. If there is a pattern of no 
    price differences, the difference in levels of trade does not have a 
    price effect and, therefore, no adjustment is necessary. Because 
    comparisons of home market net prices did not reveal a pattern of 
    consistent price differences between Saha Thai's home market sales and 
    the resellers' home market sales, no level of trade adjustment was 
    granted.
    
    Currency Conversion
    
        For purposes of the preliminary results, we made currency 
    conversions based on the exchange rates in effect on the dates of the 
    U.S. sales as certified by the Federal Reserve Bank of New York. See 
    Change in Policy Regarding Currency Conversions, 61 FR 9434 (March 8, 
    1996). Section 773A(a) directs the Department to use a daily exchange 
    rate in order to convert foreign currencies into U.S. dollars unless 
    the daily rate involves a fluctuation. It is the Department's practice 
    to find that a fluctuation exists when the daily exchange rate differs 
    from the benchmark rate by 2.25 percent. The benchmark is defined as 
    the moving average of rates for the past 40 business days. When we 
    determine a fluctuation to have existed, we substitute the benchmark 
    rate for the daily rate, in accordance with established practice.
    
    Preliminary Results of the Review
    
        We preliminarily determine that the following weighted-average 
    dumping margins exist:
    
    ------------------------------------------------------------------------
                                                                    Margin  
              Manufacturer/exporter                 Period        (percent) 
    ------------------------------------------------------------------------
    Saha Thai/SAF...........................     3/1/96-2/28/97         1.92
    ------------------------------------------------------------------------
    
        Parties to the proceeding may request disclosure within five days 
    of the date of publication of this notice. Any interested party may 
    request a hearing within 10 days of publication. Any hearing, if 
    requested, will be held 44 days after the date of publication or the 
    first business day thereafter. Case briefs and/or other written 
    comments from interested parties may be submitted not later than 30 
    days after the date of publication. Rebuttal briefs and rebuttals to 
    written comments, limited to issues raised in those comments, may be 
    filed not later than 37 days after the date of publication of this 
    notice. The Department will publish the final results of this 
    administrative review, which will include the results of its analysis 
    of issues raised in any such comments, within 120 days from the date of 
    publication of these preliminary results.
        Upon issuance of the final results of review, the Department shall 
    determine, and the U.S. Customs Service shall assess, antidumping 
    duties on all appropriate entries. We calculated importer-specific ad 
    valorem duty assessment rates for the class or kind of merchandise 
    based on the ratio of the total amount of antidumping duties calculated 
    for the examined sales made during the POR to the total customs value 
    of the sales used to calculate those duties. This rate will be assessed 
    uniformly on all entries that particular importer made during the POR. 
    (This is equivalent to dividing the total amount of the antidumping 
    duties, which are calculated by taking the difference between statutory 
    NV and statutory EP, by the total statutory EP value of the sales 
    compared, and adjusting the result by the average difference between EP 
    and customs value for all merchandise examined during the POR). Upon 
    completion of this review, the Department will issue appraisement 
    instructions directly to the Customs Service.
        Furthermore, the following deposit rates will be effective upon the 
    publication of the final results of these administrative reviews for 
    all shipments of circular welded carbon steel pipes and tubes from 
    Thailand entered, or withdrawn from warehouse, for consumption on or 
    after the publication date, as provided for by Section 751(a)(2)(c) of 
    the Act: (1) the cash deposit rate for the reviewed companies will be 
    that established in the final results of this review; (2) for 
    previously reviewed or investigated companies not listed above, the 
    cash deposit rate will continue to be the company-specific rate 
    published for the most recent period; (3) if the exporter is not a firm 
    covered in this review, or the original LTFV 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; (4) the 
    cash deposit rate for all other manufacturers or exporters will 
    continue to be 15.67 percent, the ``All Others'' rate made effective by 
    the LTFV investigation. These requirements, when imposed, shall remain 
    in effect until publication of the final results of the next 
    administrative review.
    
    [[Page 16979]]
    
        This notice serves as a preliminary reminder to importers of their 
    responsibility under 19 CFR 353.26 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.
        These preliminary results of review are issued and published in 
    accordance with section 751(a)(1) and 777(i)(1) of the Act and 19 CFR 
    353.22.
    
        Dated: March 31, 1998.
    Robert S. LaRussa,
    Assistant Secretary for Import Administration.
    [FR Doc. 98-9091 Filed 4-6-98; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Effective Date:
4/7/1998
Published:
04/07/1998
Department:
International Trade Administration
Entry Type:
Notice
Action:
Notice of Preliminary Results of Antidumping Duty Administrative Review: Certain Welded Carbon Steel Pipes and Tubes from Thailand
Document Number:
98-9091
Dates:
April 7, 1998.
Pages:
16974-16979 (6 pages)
Docket Numbers:
A-549-502
PDF File:
98-9091.pdf