99-16244. Circular Welded Non-Alloy Steel Pipe and Tube From Mexico: Preliminary Results of Antidumping Duty Administrative Reviews; and Partial Revocation  

  • [Federal Register Volume 64, Number 122 (Friday, June 25, 1999)]
    [Notices]
    [Pages 34190-34194]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-16244]
    
    
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    DEPARTMENT OF COMMERCE
    
    International Trade Administration
    [A-201-805]
    
    
    Circular Welded Non-Alloy Steel Pipe and Tube From Mexico: 
    Preliminary Results of Antidumping Duty Administrative Reviews; and 
    Partial Revocation
    
    AGENCY: Import Administration, International Trade Administration, 
    Department of Commerce.
    
    ACTION: Notice of preliminary results of antidumping duty 
    administrative review and partial revocation.
    
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    SUMMARY: In response to a request by one respondent, the Department of 
    Commerce (the Department) is conducting two administrative reviews of 
    the antidumping duty order on circular welded non-alloy steel pipe and 
    tube from Mexico (A-201-805). These reviews cover one manufacturer/
    exporter of the subject merchandise to the United States during two 
    periods of review (POR): April 28, 1992, through October 31, 1993, (the 
    92/93 POR) and November 1, 1993, through October 31, 1994 (the 93/94 
    POR).
        We have preliminarily determined that sales have been made below 
    the foreign market value (FMV) for the first period of review (POR). If 
    these preliminary results are adopted in our final results of 
    administrative reviews, we will instruct U.S. Customs to assess 
    antidumping duties based upon the difference between the United States 
    price (USP) and the FMV.
        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.
    
    EFFECTIVE DATES: June 25, 1999.
    
    FOR FURTHER INFORMATION CONTACT: John Drury, Nancy Decker or Linda 
    Ludwig, Enforcement Group III--Office 8, Import Administration, 
    International Trade Administration, U.S. Department of Commerce, 14th 
    Street and Constitution Avenue, NW., Room 7866, Washington, DC 20230; 
    telephone (202) 482-0195 (Drury), (202) 482-0196 (Decker), or (202) 
    482-3833 (Ludwig).
    
    SUPPLEMENTARY INFORMATION:
    
    Applicable Statute and Regulations
    
        Unless otherwise indicated, all citations to the statute and to the 
    Department's regulations are references to the provisions as they 
    existed on December 31, 1994.
    
    Background
    
        The Department published an antidumping duty order on circular 
    welded non-alloy steel pipe and tube from Mexico on November 2, 1992 
    (57 FR 49453). The Department published a notice of ``Opportunity to 
    Request an Administrative Review'' of the antidumping duty order for 
    the 92/93 POR on November 3, 1993 (58 FR 58682). On November 19, 1993, 
    respondent Hylsa S.A. de C.V. (``Hylsa'') requested that the Department 
    conduct an administrative review of the antidumping duty order on 
    circular welded non-alloy steel pipe and tube from Mexico. On November 
    30, 1993, respondent Tuberia Nacional S.A. de C.V. (``TUNA'') requested 
    that the Department conduct an administrative review of this order. We 
    initiated this review on January 18, 1994. See 59 FR 2593 (January 18, 
    1994).
        The Department published a notice of ``Opportunity to Request an 
    Administrative Review'' of the antidumping duty order for the 93/94 POR 
    on November 10, 1994 (59 FR 56034). On November 29, 1994, respondent 
    Hylsa S.A. de C.V. (``Hylsa'') requested that the Department conduct an 
    administrative review of the antidumping duty order on circular welded 
    non-alloy steel pipe and tube from Mexico. On November 30, 1994, 
    respondent Western American Manufacturing, Inc. (``Western American'') 
    requested that the Department conduct an administrative review of this 
    order. We initiated this review on December 15, 1994. See 59 FR 64650 
    (December 15, 1994).
        The Department is conducting these administrative reviews in 
    accordance with section 751 of the Tariff Act of 1930 (``the Act'').
    
    Partial Termination of Review
    
        On November 30, 1995, TUNA withdrew its request for administrative 
    review for the 92/93 POR, pursuant to 19 CFR 353.22(a)(5). Ordinarily, 
    parties have 90 days from the date of publication of notice of 
    initiation within which to withdraw a request for review. In this case, 
    the record indicates that petitioners have no objection to the 
    withdrawal and in fact had previously requested that the Department 
    terminate the review of TUNA (See Letter to Secretary of Commerce from 
    R. Alan Luberda, dated May 11, 1994). In addition, the review of TUNA 
    has not progressed substantially and there would be no undue burden on 
    the parties or the Department as a result of said withdrawal. 
    Therefore, the Department has determined that it would be reasonable to 
    grant the withdrawal at this time. In accordance with section 
    353.22(a)(5) of the Department's regulations, the Department has 
    terminated the 92/93 administrative review insofar as it regards TUNA.
        On March 14, 1995, Western American withdrew its request for 
    administrative review for the 93/94 POR, pursuant to 19 CFR 
    353.22(a)(5). Ordinarily, parties have 90 days from the date of 
    publication of notice of initiation within which to withdraw a request 
    for review. In this case, the
    
    [[Page 34191]]
    
    record indicates that petitioners have no objection to the withdrawal. 
    In addition, the review of Western American has not progressed 
    substantially and there would be no undue burden on the parties or the 
    Department as a result of said withdrawal. Therefore, the Department 
    has determined that it would be reasonable to grant the withdrawal at 
    this time. In accordance with section 353.22(a)(5) of the Department's 
    regulations, the Department has terminated the 93/94 administrative 
    review insofar as it regards to Western American.
    
    Scope of the Review
    
        The review of ``circular welded non-alloy steel pipe and tube'' 
    covers products of circular cross-section, not more than 406.4 
    millimeters (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). 
    Those pipes and tubes are generally known as standard pipe, though they 
    may also be called structural or mechanical tubing in certain 
    applications. Standard pipes and tubes 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 and mechanical applications, such 
    as for fence tubing, and for protection of electrical wiring, such as 
    conduit shells.
        The scope is not limited to standard pipe and fence tubing, or 
    those types of mechanical and structural pipe that are used in standard 
    pipe applications. 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, 
    cold-drawn or cold-rolled mechanical tubing, pipe and tube hollows for 
    redraws, finished scaffolding, and finished rigid conduit. In 
    accordance with the Final Negative Determination of Scope Inquiry (56 
    FR 11608, March 21, 1996), pipe certified to the API 5L line pipe 
    specification, or pipe certified to both the API 5L line pipe 
    specifications and the less-stringent ASTM A-53 standard pipe 
    specifications, which fall within the physical parameters as outlined 
    above, and entered as line pipe of a kind used for oil and gas 
    pipelines, are outside of the scope of the antidumping duty order.
        Imports of these products are currently classifiable under the 
    following Harmonized Tariff Schedule (HTS) subheadings: 7306.3010.00, 
    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. These HTS item numbers are provided 
    for convenience and customs purposes. The written descriptions remain 
    dispositive.
        The 92/93 POR is April 28, 1992 through October 31, 1993, and the 
    93/94 POR is November 1, 1993 through October 31, 1994. Subsequent to 
    the partial terminations above, these reviews cover sales of circular 
    welded non-alloy steel pipe and tube by Hylsa.
    
    Verification
    
        As provided in section 782(i)(3) of the Act, we verified 
    information provided by the respondent using standard verification 
    procedures, including on-site inspection of the manufacturer's 
    facilities, the examination of relevant sales and financial records, 
    and selection of original documentation containing relevant 
    information. Our verification results are outlined in the public 
    versions of the verification reports.
    
    Use of Best Information Available (92/93 POR)
    
        Section 776(b) of the Tariff Act provides that, in making a final 
    determination in an administrative review, if the Department ``is 
    unable to verify the accuracy of the information submitted, it shall 
    use the best information available to it as the basis for its action. * 
    * *'' In addition, section 776(c) of the Act requires the Department to 
    use BIA ``whenever a party or any other person refuses or is unable to 
    produce information requested in a timely manner or in the form 
    required, or otherwise significantly impedes an investigation. * * *''
        In deciding what to use as BIA, section 353.37(b) of our 
    regulations provides that we may take into account whether a party 
    refuses to provide information. For purposes of these reviews, and in 
    accordance with our practice, we have used the more adverse BIA--
    generally the highest rate for any company for the same class or kind 
    of merchandise from the same country from this or any prior segment of 
    the proceeding, including the less-than-fair-value (LTFV) 
    investigation--whenever a company refused to cooperate with the 
    Department or otherwise significantly impeded the proceeding. When a 
    company substantially cooperated with our requests for information, but 
    we were unable to verify information it provided or it failed to 
    provide all information requested in a timely manner or in the form 
    requested, we used as BIA the higher of (1) the highest rate (including 
    the ``all others'' rate) ever applicable to the firm for the same class 
    or kind of merchandise from the same country from either the LTFV 
    investigation or a prior administrative review; or (2) the highest 
    calculated rate in this review for any firm for the same class or kind 
    of merchandise from the same country.
        We preliminarily determine that the use of best information 
    available (BIA), in accordance with section 776(c) of the Act, is 
    appropriate for Hylsa for the 92/93 POR. We have assigned a cooperative 
    (second-tier) BIA rate to the company for these preliminary results, 
    which is the rate assigned to Hylsa during the original investigation. 
    When a company substantially cooperates with our requests for 
    information but we are unable to verify the information it provided or 
    the company fails to provide complete or accurate information, we 
    assign that company second-tier BIA. (See Allied Signal v. United 
    States, 996 F.2d 1185 (Fed. Cia. 1993) (concluding that the 
    Department's two-tiered BIA methodology, under which cooperating 
    companies are assigned the lower, ``second tier'' BIA rate, is 
    reasonable).)
        Hylsa cooperated with our requests for information and agreed to 
    verification. However, the multiple and pervasive nature of errors and 
    omissions in the information provided by Hylsa prevented the Department 
    from relying on Hylsa's response for these preliminary results. For 
    example, despite our attempts, we were unable to verify either Hylsa's 
    total quantity and value of home-market sales or its value of U.S. 
    sales of subject merchandise. In addition, we found a significant 
    discrepancy between reported and actual third-country sales of subject 
    merchandise. (See verification report.)
        Establishing the completeness of the response with respect to the 
    quantity and value of sales in both the home and U.S. markets is a very 
    significant element of verification. However, as a result of 
    verification, Hylsa subsequently acknowledged that it had failed to 
    report approximately 10% of its sales of subject merchandise in the 
    home market for the period of review. Moreover, Hylsa did not retain 
    the complete database used to develop its response to the Department. 
    As a result, we were unable to reconcile the quantity and value figures 
    for the home market reported to the Department with the company's 
    audited financial statements. In addition, Hylsa failed to prepare a 
    detailed analysis of home market sales in a pre-selected month of the 
    POR as requested in our verification outline. Finally, Hylsa was unable 
    to
    
    [[Page 34192]]
    
    explain the discrepancy in U.S. sales value. (See verification report.)
        The completeness of both the home market and U.S. sales databases 
    is essential because both are used to calculate the dumping duties. As 
    the Department stated in Silicon Metal From Brazil: Final Results of 
    Antidumping Duty Administrative Review and Determination Not to Revoke 
    in Part, 62 FR 1954 (January 14, 1996), it is the obligation of 
    respondents to provide an accurate and complete response prior to 
    verification so that the Department may have the opportunity to analyze 
    fully the information and other parties are able to review and comment 
    on it. Verification is intended to establish the accuracy and 
    completeness of a response rather than to supplement and reconstruct 
    the information to fit the requirements of the Department. 
    ``Establishing the completeness of the response with respect to the 
    sales of the subject merchandise in the United States is a very 
    significant element of the verification.'' Antifriction Bearings (Other 
    Than Tapered Roller Bearings) and Parts Thereof From France, Germany, 
    Italy, Japan, Singapore, Sweden, and the United Kingdom; Final Results 
    of Antidumping Duty Administrative Reviews and Partial Termination of 
    Administrative Reviews, 61 FR 66742 (December 17, 1996). ``The 
    completeness of the U.S. sales database is essential because it is used 
    to calculate the dumping duties.'' Id. It is our practice at 
    verification to examine a selected portion of both databases, rather 
    than the entire database, to test the accuracy and completeness of 
    information that the company provided. The CIT has upheld this 
    practice. See Bomont Industries v. United States, 733 F. Supp. 1507, 
    1508 (CIT 1990) (``verification is like an audit, the purpose of which 
    is to test information provided by a party for accuracy and 
    completeness. Normally an audit entails selective examination rather 
    than testing of an entire universe.''); See also Monsanto Co. v. United 
    States, 698 F.Supp. 275, 281 (CIT 1988) (``verification is a spot check 
    and is not intended to be an exhaustive examination of the respondent's 
    business''). Where the Department finds discrepancies in the portion 
    which it examines, it must judge the effect on the unexamined portion 
    of the response. In the instant case, the loss of a database used to 
    prepare the original response to the Department prevented Hylsa from 
    reconciling aggregate total figures reported to the Department with the 
    company's financial statements. While the company was generally able to 
    tie monthly financial statements to a monthly sales statistics 
    database, it had no explanation as to the remaining discrepancies 
    between this database and the information submitted to the Department.
        In addition, the company's admission that it had failed to report 
    approximately 10 percent of home market sales of subject merchandise 
    further throws the reported quantity and value figures into doubt. 
    Since the Department was unable to reconcile aggregate totals, we 
    requested (as we did in the verification outline) that Hylsa prepare a 
    worksheet tying the pre-selected month to the response submitted to the 
    Department. The pre-selected month corresponded to the month when most 
    of the U.S. sales occurred and most likely would have been used in the 
    calculation of the dumping duties. The company stated that it could not 
    prepare the requested worksheet without the missing database for that 
    month. Department officials then requested a listing of sales from a 
    different month in an attempt to tie it to the sales statistics 
    database. When a Department official selected a particular sale and 
    requested supporting documentation, the company was unable to produce 
    it at that time. Late on the last day, Hylsa indicated that it could 
    provide the supporting documentation. By that time, however, there was 
    insufficient time for Department officials to verify and establish the 
    accuracy of the documents. (See verification report.)
        We believe that the use of total BIA is warranted. The inability of 
    Hylsa to reconcile aggregate quantities and values to its financial 
    statements throws into doubt the accuracy of Hylsa's reported 
    transaction-specific sales. Since such sales are used to calculate FMV 
    on a monthly basis, the addition or omission of home-market sales can 
    have a large impact on the final margin. If there are a small number of 
    sales to the U.S. in relation to the home-market, or sales are bunched 
    in particular months, or certain products are only sold in a limited 
    number of months, or other conditions exist, the potential for 
    distortion or manipulation by omitting or creating home-market sales is 
    particularly great. We must be certain that all sales are reported 
    accurately and completely to address this concern, and reconciling 
    quantity and value is one of the most fundamental ways of ensuring 
    accuracy and completeness. Without that certainty, we do not believe 
    that it is possible to calculate an accurate margin for this POR.
        As explained above, the multiple and pervasive nature of errors and 
    omissions in the information provided by Hylsa prevented the 
    Department's reliance on its submissions for these preliminary results. 
    See, e.g. Yamaha Motor Co., Ltd. v. United States, 910 F.Supp. 679 (CIT 
    1995) (upholding the Department's use of second-tier BIA where the 
    Department found that respondent's errors and omissions were multiple 
    and pervasive); National Steel Corp. v. United States, 870 F.Supp. 1130 
    (CIT 1994) (approving the Department's use of BIA where respondent 
    omitted significant information from submissions); Tatung Co. v. United 
    States, 18 C.I.T. 1137 (1994) (upholding the Department's use of BIA 
    due to omissions and errors in respondent's submission). Therefore, in 
    accordance with section 776(b) of the Tariff Act, the inability to 
    verify aggregate quantity and value figures was the determining factor 
    in our decision to apply BIA to the company's response for the 92/93 
    POR. See decision memorandum, February 28, 1997.
    
    Product Comparisons
    
        In accordance with section 771(16) of the Act, for the 93/94 POR, 
    we considered each circular welded non-alloy steel pipe and tube 
    product produced by Hylsa, covered by the descriptions in the ``Scope 
    of the Review'' section of this notice, supra, and sold in the home 
    market during the POR, to be such or similar merchandise for purposes 
    of determining appropriate product comparisons to U.S. sales of 
    circular welded non-alloy steel pipe and tube. For each of the products 
    produced by Hylsa within the scope of the A-201-805 order, we examined 
    the categories of merchandise listed in Section 771 (16) of the Act for 
    purposes of model matching. Where there were no sales of identical 
    merchandise in the home market to compare to U.S. sales, we compared 
    U.S. sales to the next most similar foreign like product on the basis 
    of the characteristics listed in Appendix VI of the Department's April 
    24, 1996 antidumping questionnaire. In making the product comparisons, 
    we matched each foreign like product based on the physical 
    characteristics reported by the respondent and verified by the 
    Department. Where sales were made in the home market on a different 
    weight basis from the U.S. market (e.g. theoretical versus actual 
    weight), we converted all quantities to the same weight basis, using 
    the conversion factors supplied by Hylsa, before making our fair-value 
    comparisons. We compared individual U.S. transactions to monthly 
    weighted average FMVs.
    
    [[Page 34193]]
    
    Date of Sale
    
        For the 93/94 POR, depending on the channel of trade and on the 
    date after which the key terms of sale could not be changed, we treated 
    one of the following dates as the date of the sale: The date of the 
    invoice or the date of shipment.
    
    United States Price
    
        All of Hylsa's U.S. sales in the 93/94 POR were based on the price 
    to the first unrelated purchaser in the United States. The Department 
    determined that purchase price, as defined in section 772 of the Tariff 
    Act, was the appropriate basis for calculating USP. We made adjustments 
    to purchase price, where appropriate, for foreign inland freight, 
    foreign brokerage and handling, international freight, insurance, U.S. 
    inland freight, U.S. brokerage and handling, and U.S. Customs duties.
    
    Foreign Market Value
    
        Based on a comparison of the volume of home market and third 
    country sales, we determined that the home market was viable. 
    Therefore, in accordance with section 773(a)(1)(A) of the Act, we based 
    FMV on the packed, delivered price to unrelated purchasers in the home 
    market. Based on our verification of home-market sales responses, we 
    are disallowing an adjustment for a steel supplier rebate. We have 
    previously outlined our reasons for rejecting this adjustment. See 
    Circular Welded Non-Alloy Steel Pipe and Tube From Mexico: Final 
    Determination of Sales at Less Than Fair Value, 57 FR 42953 (September 
    17, 1992) (``this rebate program does not qualify for a circumstance of 
    sale adjustment because it reflects a difference in production costs, 
    rather than a difference in selling expenses. Adjustments for 
    circumstance of sale are, by definition, limited to consideration of a 
    seller's marketing practices and expenses, and are unaffected by 
    conditions affecting production''); See also Circular Welded Non-Alloy 
    Steel Pipe and Tube From Mexico: Preliminary Results of Antidumping 
    Duty Administrative Review, 61 FR 68708 (December 30, 1996).
        We made adjustments to FMV for differences in cost attributable to 
    differences in physical characteristics of the merchandise, pursuant to 
    section 773(a)(4)(C) of the Act.
    
    Cost-of-Production Analysis
    
        Petitioners alleged, on July 23, 1996 with respect to the 93/94 
    POR, that Hylsa sold circular welded non-alloy steel pipes and tubes in 
    the home market at prices below COP. Based on this allegation, in 
    accordance with Section 773(b) of the Act, the Department determined, 
    on September 30, 1996, that it had reasonable grounds to believe or 
    suspect that Hylsa had sold the subject merchandise in the home market 
    at prices below its COP. See Letter to Shearman and Sterling and 
    Decision Memorandum (September 30, 1996). We therefore initiated a cost 
    investigation with regard to Hylsa for the 93/94 POR in order to 
    determine whether the respondent made home-market sales during the 93/
    94 POR at prices below its COP within the meaning of section 773(b) of 
    the Act.
        In accordance with 19 CFR 353.51(c), we calculated COP for Hylsa as 
    the sum of reported materials, labor, factory overhead, and general 
    expenses. We compared COP to home market prices, net of price 
    adjustments, discounts, and movement expenses.
        In accordance with section 773(b) of the Act, in determining 
    whether to disregard home market sales made at prices below the COP, we 
    examined whether such sales were made in substantial quantities over an 
    extended period of time, and whether such sales were made at prices 
    which permitted recovery of all costs within a reasonable period of 
    time in the normal course of trade.
        In accordance with our normal practice, for each model for which 
    less than 10 percent, by quantity, of the home market sales during the 
    POR were made at prices below COP, we included all sales of that model 
    in the computation of FMV. For each model for which 10 percent or more, 
    but less than 90 percent, of the home market sales during the POR were 
    priced below COP, we excluded those sales priced below COP, provided 
    that they were made over an extended period of time. For each model for 
    which 90 percent or more of the home market sales during the POR were 
    priced below COP and were made over an extended period of time, we 
    disregarded all sales of that model in our calculation and, in 
    accordance with section 773(b) of the Tariff Act, we used the 
    constructed value (CV) of those models, as described below. See, e.g., 
    Mechanical Transfer Presses From Japan, Final Results of Antidumping 
    Duty Administrative Review, 59 FR 9958 (March 2, 1994).
        In accordance with section 773(b)(1) of the Act, to determine 
    whether sales below cost had been made over an extended period of time, 
    we compared the number of months in which sales below cost occurred for 
    a particular model to the number of months in which that model was 
    sold. If the model was sold in fewer than three months, we did not 
    disregard below-cost sales unless there were below-cost sales of that 
    model in each month. If a model was sold in three or more months, we 
    did not disregard below-cost sales unless there were sales below cost 
    in at least three of the months. See Tapered Roller Bearings and Parts 
    Thereof, Finished and Unfinished, From Japan and Tapered Roller 
    Bearings, Four Inches or Less in Outside Diameter, and Components 
    Thereof, From Japan; Final Results of Antidumping Duty Administrative 
    Reviews, 58 FR 64720, 64729 (December 8, 1993).
        Because Hylsa provided no indication that its below-cost sales of 
    models within the ``greater than 90 percent'' and the ``between 10 and 
    90 percent'' categories were at prices that would permit recovery of 
    all costs within a reasonable period of time and in the normal course 
    of trade, we disregarded those sales of models within the ``10 to 90 
    percent'' category which were made below cost over an extended period 
    of time. In addition, as a result of our COP test for home market sales 
    of models within the ``greater than 90 percent'' category, we based FMV 
    on CV for all U.S. sales for which more than 90 percent of sales of the 
    comparison home market model occurred below COP. Finally, where we 
    found, for certain of Hylsa's models, home market sales for which less 
    than 10 percent were made below COP, we used all home market sales of 
    these models in our comparisons.
        We also used CV as FMV for those U.S. sales for which there was no 
    sale of such or similar merchandise in the home market. We calculated 
    CV in accordance with section 773(e) of the Act. We included the cost 
    of materials, labor, and factory overhead in our calculations. Where 
    the general expenses were less than the statutory minimum of 10 percent 
    of the cost of manufacture (COM), we calculated general expenses as 10 
    percent of the COM. Where the actual profits were less than the 
    statutory minimum of 8 percent of the COM plus general expenses, we 
    calculated profit as 8 percent of the sum of COM plus general expenses. 
    Based on our verification of Hylsa's cost response, we adjusted Hylsa's 
    reported COP and CV as described below.
        Contrary to specific written instructions from the Department, we 
    found that Hylsa failed to report weighted-average costs by product for 
    the entire POR. Instead, Hylsa reported six months of costs by product 
    which were not weight-averaged. As best information available, we made 
    the following changes. Since respondent did not provide twelve months 
    of
    
    [[Page 34194]]
    
    weighted-average cost data, we used as best information available the 
    highest monthly cost by product as the actual cost for the POR. We 
    segregated home-market sales by finish into galvanized and non-
    galvanized products. As best information available, we took the highest 
    product cost in each of these two groups and applied it to all products 
    within the specific groups.
        In accordance with section 773 of the Act, for those U.S. models 
    for which we were able to find a home market such or similar match that 
    had sufficient above-cost sales, we calculated FMV based on the packed, 
    F.O.B., ex-factory, or delivered prices to unrelated purchasers in the 
    home market. We made adjustments, where applicable, for post-sale 
    inland freight and for home market direct expenses. We also adjusted 
    FMV for differences in circumstances of sale based on direct selling 
    expenses.
    
    Reimbursement
    
        Petitioners requested that the Department examine the issue of 
    reimbursement where the producer/exporter is the importer of record. 
    Section 353.26 of the Department's regulations states that ``[i]n 
    calculating the United States price, the Secretary will deduct the 
    amount of any antidumping duty which the producer or reseller: (i) 
    [P]aid directly on behalf of the importer; or (ii) [r]eimbursed to the 
    importer.'' 19 CFR 353.26(a)(1). The Department's interpretation of the 
    regulation is that it anticipates that separate corporate entities must 
    exist as producer/reseller and importer in order to invoke the 
    regulation. In the present case, the U.S. importer of record, Hylsa, is 
    also the same corporate entity that produces and exports the subject 
    merchandise. In such a case, there is no separate company or separate 
    U.S. subsidiary, wholly owned or otherwise, that acts as the importer 
    of record. Rather, the importer and exporter are one and the same 
    corporate entity. In this case, there can be no payment made to, or on 
    behalf of, the importer within the meaning of the regulation. 
    Accordingly, the Department interprets its reimbursement regulation as 
    inapplicable in this case.
    
    Preliminary Results of Review
    
        As a result of our comparison of USP to FMV we preliminarily 
    determine that the following margin exists:
    
                 Circular Welded Non-Alloy Steel Pipes and Tubes
    ------------------------------------------------------------------------
                                                           Weighted--average
                Producer/manufacturer/exporter              margin (percent)
    ------------------------------------------------------------------------
    Hylsa 92/93..........................................           32.62
    Hylsa 93/94..........................................           27.66
    ------------------------------------------------------------------------
    
        Interested parties may request disclosure within 5 days of the date 
    of publication of this notice and 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 written comments from interested parties may be submitted 
    no 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 these administrative reviews including the results of its 
    analysis of issues raised in any such written comments or at a hearing.
        The Department shall determine, and the Customs Service shall 
    assess, antidumping duties on all appropriate entries. Individual 
    differences between the USP and FMV may vary from the percentages 
    stated above.
        Furthermore, the following deposit requirements will be effective 
    for all shipments of the subject merchandise entered, or withdrawn from 
    warehouse, for consumption on or after the publication date of the 
    final results of this administrative review, as provided for by section 
    751(a)(1) of the Act:
        (1) The cash deposit rate for the reviewed company will be the rate 
    established in the final results of the 93/94 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; and (4) 
    if neither the exporter nor the manufacturer is a firm covered in this 
    review, the cash deposit rate will be 32.62 percent. This is the ``all 
    others'' rate from the LTFV investigation. See Final Determination of 
    Sales at Less Than Fair Value: Circular Welded Non-Alloy Steel Pipe 
    From Mexico, 57 FR 42953 (September 17, 1992).
        This notice also 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 Department's presumption that 
    reimbursement of antidumping duties occurred and the subsequent 
    assessment of double antidumping duties.
        This administrative review and this notice are in accordance with 
    section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)) and 19 CFR 353.22.
    
        Dated: June 15, 1999.
    Robert S. LaRussa,
    Assistant Secretary for Import Administration.
    [FR Doc. 99-16244 Filed 6-24-99; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Effective Date:
6/25/1999
Published:
06/25/1999
Department:
International Trade Administration
Entry Type:
Notice
Action:
Notice of preliminary results of antidumping duty administrative review and partial revocation.
Document Number:
99-16244
Dates:
June 25, 1999.
Pages:
34190-34194 (5 pages)
Docket Numbers:
A-201-805
PDF File:
99-16244.pdf