[Federal Register Volume 59, Number 185 (Monday, September 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-23768]
[[Page Unknown]]
[Federal Register: September 26, 1994]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-818]
Initiation of Antidumping Duty Investigation: Carbon Steel Pipe
Nipples from Mexico
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: September 26, 1994.
FOR FURTHER INFORMATION CONTACT: Michelle Frederick or John Brinkmann,
Office of Antidumping Investigations, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue NW., Washington, D.C. 20230; telephone:
(202) 482-0186 or (202) 482-5288, respectively.
INITIATION OF INVESTIGATION:
The Petition
On August 31, 1994, we received a petition filed in proper form by
the U.S. Pipe Nipples Group (petitioner). At the request of the
Department of Commerce (the Department), petitioner filed a supplement
to support and clarify the petition's data on September 16, 1994. In
accordance with 19 CFR 353.12 (1994), petitioner alleges that carbon
steel pipe nipples (pipe nipples) from Mexico are being, or are likely
to be, sold in the United States at less than fair value within the
meaning of section 731 of the Tariff Act of 1930, as amended (the Act),
and that these imports are materially injuring, or threaten material
injury to, a U.S. industry.
Petitioner states that it has standing to file the petition because
it is an interested party, as defined under section 771(9)(C) of the
Act, and because the petition is filed on behalf of the U.S. industry
producing the product subject to this investigation. If any interested
party, as described under paragraphs (C), (D), (E), or (F) of section
771(9) of the Act, wishes to register support for, or opposition to,
this petition, such party should file a written notification with the
Assistant Secretary for Import Administration. Under the Department's
regulations, any producer or reseller seeking exclusion from a
potential antidumping duty order must submit its request for exclusion
within 30 days of the date of publication of this notice. The
procedures and requirements regarding the filing of such requests are
contained in 19 CFR 353.14.
Scope of Investigation
The products covered by this investigation are carbon steel pipe
nipples, both finished and unfinished, defined as cut carbon steel pipe
having a maximum length of 12 inches. Unfinished pipe nipples (nipple
blanks) have not been subjected to any machining following the cutting
of the pipe. Finished pipe nipples have been machined after the
cutting, including, but not limited to, the following processes:
reaming/deburring, chamfering, and/or threading. The type of finish on
one end of a pipe nipple need not be the same as the finish on the
other end. For threaded pipe nipples, threading is performed along the
outside diameter to permit fastening of the pipe nipple to other
components with a matching inside diameter thread.
Pipe nipples manufactured from plain (black), galvanized, welded
and seamless carbon steel pipe are included within the scope of this
investigation.
The products under investigation are currently classifiable under
subheading 7307.99.5015 of the Harmonized Tariff Schedule of the United
States (HTSUS). Although the HTSUS subheading is provided for
convenience and customs purposes, our written description of the scope
of this investigation is dispositive.
United States Price and Foreign Market Value
Petitioner based U.S. price (USP) on F.O.B. U.S. port price lists
(for November 1993 and July 1994) obtained for pipe nipples produced by
a Mexican manufacturer. Petitioner calculated USP by subtracting the
estimated cost of shipping expenses based on the percentage difference
between customs value and C.I.F. value for pipe nipples from Mexico.
Because petitioner provided home market price quotes from 1994, the
Department is basing USP on the 1994 prices. We recalculated USP to
include value-added taxes (VAT) in accordance with section 772(d)(1)(C)
of the Act. In making our adjustment for VAT, we followed the
instructions of the United States Court of International Trade (CIT) in
Federal Mogul Corp. v. United States, 834 F.Supp. 1391 (CIT 1993). We
also deducted the amount of tax due solely to price deductions in the
original tax base. By making this additional tax adjustment, we avoid a
distortion that could cause the creation of a dumping margin even where
pre-tax dumping is zero. For discussion of this adjustment see Final
Results of Administrative Review: Certain Industrial Forklifts from
Japan, (59 FR 1374, January 10, 1994) and Final Determination of Sales
at Less Than Fair Value: Certain Stainless Steel Wire Rods from France,
(58 FR 68865, December 29, 1993).
Petitioner based foreign market value (FMV) on a home market price
list for identical merchandise, exclusive of VAT, obtained from a
Mexican manufacturer of pipe nipples. These prices are August 1994 ex-
factory prices. We recalculated FMV to include VAT. FMV was converted
to U.S. dollars based on the New York Federal Reserve's quarterly
exchange rate for the period July 1 through September 30, 1994.
Petitioner also supplied information on constructed value. Because
petitioner was able to provide information on home market sales, and
because of the regulatory preference for a home market price-to-price
comparison over constructed value, we based FMV for purposes of this
initiation notice on the home market price-to-price comparison (19 CFR
353.12(b)(7) and 19 CFR 353.48).
The range of alleged dumping margins of pipe nipples from Mexico,
based on a home market price-to-price comparison, is from 1.71 to 92.64
percent.
Initiation of Investigation
We have examined the petition for pipe nipples from Mexico, as
amended, and have found that it meets the requirements of section
732(b) of the Act. Therefore, we are initiating an antidumping duty
investigation to determine whether imports of pipe nipples from Mexico
are being, or are likely to be, sold in the United States at less than
fair value. If this investigation proceeds normally, we will make our
preliminary determination by February 7, 1995.
International Trade Commission (ITC) Notification
Section 732(d) of the Act requires us to notify the ITC of these
actions and we have done so.
Preliminary Determinations by the ITC
The ITC will determine by October 17, 1994, whether there is a
reasonable indication that imports of pipe nipples from Mexico are
materially injuring, or threaten material injury to, a U.S. industry.
Pursuant to section 733(a) of the Act, a negative ITC determination in
this investigation will result in the termination of this
investigation; otherwise, the investigation will proceed according to
statutory and regulatory time limits.
This notice is published pursuant to section 732(c)(2) of the Act
and 19 CFR 353.13(b).
Dated: September 20, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-23768 Filed 9-23-94; 8:45 am]
BILLING CODE 3510-DS-P
