96-21749. North American Free-Trade Agreement (NAFTA), Article 1904 Binational Panel Reviews; Notice of Decision of Panel

[Federal Register Volume 61, Number 167 (Tuesday, August 27, 1996)]
[Notices]
[Page 44041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21749]


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DEPARTMENT OF COMMERCE

North American Free-Trade Agreement (NAFTA), Article 1904 
Binational Panel Reviews; Notice of Decision of Panel

AGENCY: North American Free Trade Agreement, NAFTA Secretariat, United 
States Section, International Trade Administration, Department of 
Commerce.

ACTION: Notice of Decision of the Panel.

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SUMMARY: On July 31, 1996 the Binational Panel issued its decision in 
the matter of Oil Country Tubular Goods from Mexico, Secretariat File 
No. USA-95-1904-04.

FOR FURTHER INFORMATION CONTACT:
 James R. Holbein, United States Secretary, NAFTA Secretariat, Suite 
2016, 14th and Constitution Avenue, Washington, D.C. 20230, (202) 482-
5438.

SUPPLEMENTARY INFORMATION: Chapter 19 of the North American Free-Trade 
Agreement (``Agreement'') establishes a mechanism to replace domestic 
judicial review of final determinations in antidumping and 
countervailing duty cases involving imports from a NAFTA country with 
review by independent binational panels.
    Under Article 1904 of the Agreement, which came into force on 
January 1, 1994, the Government of the United States, the Government of 
Canada and the Government of Mexico established Rules of Procedure for 
Article 1904 Binational Panel Reviews (``Rules''). These Rules were 
published in the Federal Register on February 23, 1994 (59 FR 8686). 
The panel review in this matter was conducted in accordance with these 
Rules.

Background Information

    This Binational Panel reviewed the Final Determination of Sales at 
Less Than Fair Value made by the International Trade Administration 
respecting Oil Country Tubular Goods from Mexico. That determination 
was published in the Federal Register on June 28, 1995 (60 FR 33567).

Decision of Panel

    (1) The Panel upheld the Department's calculation of TAMSA's 
financial expense on the basis of Best Information Available and on the 
alternative basis that the 1993 financial data was not representative 
of the financial expenses incurred during the Period of Investigation.
    (2) The Panel remanded the Final Determination to the Department 
for a detailed explanation as to the reasons for its rejection of the 
1993 financial data as non-representative of the General and 
Administrative expenses incurred during the Period of Investigation.
    (3) The Panel upheld the Department's rejection of TAMSA's 
nonstandard cost allocation method and its substitution of an 
allocation method based on standard costs. The Panel also granted the 
Department's request for a remand to re-calculate the nonstandard cost 
allocation for a particular subset of TAMSA's sales.
    (4) The Panel determined that the challenge by TAMSA to the Final 
Determination, based on a statement made by the Department in the Team 
Concurrence Memorandum, is not ripe for consideration.
    The Panel ordered the Department to make a determination on remand 
consistent with the instructions and findings set forth in the Panel's 
opinion. The Department shall allow an appropriate period of time for 
North Star and TAMSA to comment on the proposed remand results. The 
final determination on remand shall be issued within ninety (90) days 
of the date of this Order (not later than October 29, 1996).

    Dated: August 6, 1996.
James R. Holbein,
U.S. Secretary, NAFTA Secretariat.
[FR Doc. 96-21749 Filed 8-26-96; 8:45 am]1
BILLING CODE 3510-GT-M