98-24068. Oil Country Tubular Goods From Korea: Preliminary Results of Antidumping Duty Administrative Review  

  • [Federal Register Volume 63, Number 173 (Tuesday, September 8, 1998)]
    [Notices]
    [Pages 47469-47474]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-24068]
    
    
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    DEPARTMENT OF COMMERCE
    
    International Trade Administration
    [A-580-825]
    
    
    Oil Country Tubular Goods From Korea: Preliminary Results of 
    Antidumping Duty Administrative Review
    
    AGENCY: Import Administration, International Trade Administration, U.S. 
    Department of Commerce.
    
    ACTION: Notice of Preliminary Results of the Antidumping Duty 
    Administrative Review of Oil Country Tubular Goods From Korea.
    
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    SUMMARY: In response to a request from SeAH Steel Corporation 
    (``SeAH''), the Department of Commerce (``the Department'') is 
    conducting an administrative review of the antidumping duty order on 
    oil country tubular goods from Korea. This review covers one 
    manufacturer/exporter of the subject merchandise to the United States, 
    SeAH, and the period August 1, 1996 through July 31, 1997, which is the 
    second period of review (``POR'').
        We have preliminarily determined that SeAH made sales below normal 
    value (``NV''). If these preliminary results are adopted in our final 
    results of this administrative review, we will instruct the U.S. 
    Customs Service to assess antidumping duties based on the difference 
    between the constructed export price (``CEP'') and the NV.
    
    EFFECTIVE DATE: September 8, 1998.
    
    FOR FURTHER INFORMATION CONTACT: Doug Campau, Steve Bezirganian, or 
    Steven Presing, Import Administration, International Trade 
    Administration, U.S. Department of Commerce, 14th Street and 
    Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
    0409, -0162, or -0194, respectively.
    
    SUPPLEMENTARY INFORMATION:
    
    The Applicable Statute
    
        Unless otherwise indicated, all citations to the Tariff Act of 
    1930, as amended (the Act), are to the provisions effective January 1, 
    1995, the effective date of the amendments made to the Act by the 
    Uruguay Round Agreements Act (URAA). In addition, unless otherwise 
    indicated, all citations to the Department's regulations are to 19 CFR 
    part 351 (62 FR 27379, May 19, 1997).
    
    [[Page 47470]]
    
    Background
    
        On August 11, 1995, the Department published in the Federal 
    Register (60 FR 41058) the antidumping duty order on oil country 
    tubular goods from Korea. On August 4, 1997, the Department published 
    in the Federal Register (62 FR 41925) a notice indicating an 
    opportunity to request an administrative review of this order for the 
    period August 1, 1996, through July 31, 1997, and on August 29, 1997, 
    SeAH requested an administrative review for its entries during that 
    period. On September 25, 1997, in accordance with Section 751 of the 
    Act, we published in the Federal Register a notice of initiation of an 
    administrative review of this order for the period August 1, 1996 
    through July 31, 1997 (62 FR 50292).
        Under section 751(a)(3)(A) of the Act, the Department may extend 
    the deadline for completion of an administrative review if it 
    determines that it is not practicable to complete the review within the 
    statutory time limit of 365 days. On January 30, 1998, the Department 
    published a notice of extension of the time limit for the preliminary 
    results in the review to August 31, 1998. See Oil Country Tubular Goods 
    from Korea; Extension of Time Limit for Antidumping Duty Administrative 
    Review, 63 FR 4624.
        The Department is conducting this review in accordance with section 
    751(a) of the Act.
    
    Scope of Review
    
        The merchandise covered by this order are oil country tubular goods 
    (``OCTG''), hollow steel products of circular cross-section, including 
    only oil well casing and tubing, of iron (other than cast iron) or 
    steel (both carbon and alloy), whether seamless or welded, whether or 
    not conforming to American Petroleum Institute (``API'') or non-API 
    specifications, whether finished or unfinished (including green tubes 
    and limited service OCTG products). This scope does not cover casing or 
    tubing pipe containing 10.5 percent or more of chromium, or drill pipe. 
    The OCTG subject to this order are currently classified in the 
    Harmonized Tariff Schedule of the United States (``HTSUS'') under item 
    numbers: 7304.29.10.10, 7304.29.10.20, 7304.29.10.30, 7304.29.10.40, 
    7304.29.10.50, 7304.29.10.60, 7304.29.10.80, 7304.29.20.10, 
    7304.29.20.20, 7304.29.20.30, 7304.29.20.40, 7304.29.20.50, 
    7304.29.20.60, 7304.29.20.80, 7304.29.30.10, 7304.29.30.20, 
    7304.29.30.30, 7304.29.30.40, 7304.29.30.50, 7304.29.30.60, 
    7304.29.30.80, 7304.29.40.10, 7304.29.40.20, 7304.29.40.30, 
    7304.29.40.40, 7304.29.40.50, 7304.29.40.60, 7304.29.40.80, 
    7304.29.50.15, 7304.29.50.30, 7304.29.50.45, 7304.29.50.60, 
    7304.29.50.75, 7304.29.60.15, 7304.29.60.30, 7304.29.60.45, 
    7304.29.60.60, 7304.29.60.75, 7305.20.20.00, 7305.20.40.00, 
    7305.20.60.00, 7305.20.80.00, 7306.20.10.30, 7306.20.10.90, 
    7306.20.20.00, 7306.20.30.00, 7306.20.40.00, 7306.20.60.10, 
    7306.20.60.50, 7306.20.80.10, and 7306.20.80.50. The HTSUS item numbers 
    are provided for convenience and Customs purposes. The written 
    description remains dispositive of the scope of this review.
    
    Comparison Market
    
        The Department determines the viability of a comparison market by 
    comparing the aggregate quantity of comparison market and U.S. sales. 
    An exporting country is not considered a viable comparison market if 
    the aggregate quantity of sales of subject merchandise within it 
    amounts to less than five percent of the quantity of sales of subject 
    merchandise into the U.S. during the POR. Section 773(a)(1)(B) of the 
    Act; 19 CFR 351.404. We found Korea was not a viable comparison market 
    because the aggregate quantity of SeAH's sales of subject merchandise 
    within Korea during the POR amounted to less than five percent of the 
    quantity of sales of subject merchandise to the U.S. during the POR.
        According to Section 773(a)(1)(B)(ii) of the Act, the price of 
    sales to a third country can be used as the basis for normal value if 
    such price is representative, if the aggregate quantity (or, where 
    appropriate, value) of sales to that country is at least 5 percent of 
    the quantity (or value) of total sales to the United States, and if the 
    Department does not determine that the particular market situation in 
    that country prevents proper comparison with the export price or 
    constructed export price. The volume and value of sales to Myanmar were 
    both found to exceed 5 percent of the volume and value of sales to the 
    United States. We also found the price of SeAH's Myanmar sales to be 
    representative. (see 1996-1997 Administrative Review of the Antidumping 
    Duty Order on Oil Country Tubular Goods from Korea: Analysis of 
    Petitioners' Allegation of Sales Below the Cost of Production for SeAH 
    Steel Corporation, at 1-2, which is the January 7, 1998 memorandum from 
    Steve Bezirganian through Steven Presing to Roland MacDonald (``Cost 
    Allegation Analysis Memorandum''). Further, we found no reason to 
    determine that the market situation in Myanmar would somehow prevent 
    proper comparison between normal value and export price or constructed 
    export price. Id. We therefore found Myanmar to be the appropriate 
    comparison market per section 773(a)(1)(B)(ii) of the Act.
        The only comparison market customer was a Korean trading company 
    that resold the merchandise to Myanmar customers. SeAH has a joint 
    venture with that trading company, but it is not involved with the 
    production of subject merchandise. Accordingly, we do not consider SeAH 
    and the Korean trading company to be affiliated for purposes of sales 
    to Myanmar. Further, we have no other information on the record which 
    indicates that this company should be considered an affiliated party 
    pursuant to section 771(33) of the Act, we have preliminarily 
    determined not to treat it as such.
    
    Product Comparisons
    
        In accordance with section 771(16) of the Act, we considered all 
    products produced by the respondent, covered by the description in the 
    Scope of the Review section, above, and sold in the comparison market 
    during the POR, to be foreign like products for purposes of determining 
    appropriate product comparisons to U.S. sales. Where there were no 
    contemporaneous sales of identical merchandise in the comparison market 
    to compare to U.S. sales, we compared U.S. sales to the most similar 
    foreign like product on the basis of the characteristics listed in 
    Appendix V of the Department's September 16, 1997 antidumping 
    questionnaire.
    
    Fair Value Comparisons
    
        To determine whether sales of subject merchandise to the United 
    States were made at less than fair value, we compared the Constructed 
    Export Price (CEP) to the NV, as described in the ``United States 
    Price'' and ``Normal Value'' sections of this notice. In accordance 
    with section 777A(d)(2) of the Act, we calculated monthly weighted-
    average prices for NV and compared these to individual U.S. transaction 
    prices.
    
    Interested Party Comments
    
        On August 17, 1998, petitioners submitted comments. On August 19, 
    1998, SeAH submitted comments. Because of the lateness of these 
    submissions, we are not able to fully consider them for these 
    preliminary results.
    
    [[Page 47471]]
    
    United States Price
    
        SeAH produced OCTG in Korea and shipped it to the United States. 
    Pusan Pipe America, Inc. (``PPA''), an affiliate of SeAH, was the 
    importer of record. After importation, PPA maintained the merchandise 
    in inventory. PPA sold OCTG to the Panther division of State Pipe and 
    Supply Co. (``State''), a firm that is jointly owned by SeAH and PPA. 
    State, in turn, sold OCTG to unaffiliated U.S. customers, typically 
    after further manufacturing was performed by unaffiliated processors. 
    State invoiced the unaffiliated customers and received payment.
        In accordance with section 772(b) of the Act, we used CEP for 
    calculation of the price to the United States because the first sales 
    to unaffiliated customers in the United States were made after 
    importation of the subject merchandise. The starting point for the 
    calculation of CEP was the delivered price to unaffiliated customers in 
    the United States. In accordance with section 772(c)(2) of the Act, we 
    made deductions for movement expenses, including foreign inland 
    freight, ocean freight, marine insurance, foreign and U.S. brokerage 
    and handling, U.S. inland freight, and U.S. customs duties. In 
    accordance with section 772(d)(1) of the Act, we also deducted credit 
    expenses, warranty expenses, early payment discounts and other 
    discounts, warehousing expenses, other direct selling expenses 
    (inspection expenses), indirect selling expenses, and inventory 
    carrying costs. For certain U.S. sales, a domestic court ruled SeAH 
    should be paid for certain disputed receivables due. However, such 
    payments have not yet been received by SeAH. Accordingly, these court-
    ordered payments have not been taken into account in determining dates 
    of payment. Should SeAH receive those payments prior to the final, we 
    will take them into consideration. For our calculations, we set the 
    payment date (for these U.S. sales) equal to the date of SeAH's last 
    submission (August 19, 1998) and recalculated credit expense 
    accordingly.
        In accordance with section 772(c)(1)(b) of the Act, we added duty 
    drawback to the starting price. Pursuant to section 772(d)(3) of the 
    Act, we made an adjustment for CEP profit. In accordance with section 
    772(d)(2) of the Act, we deducted the cost of further manufacturing 
    where such deduction was appropriate. This deduction for further 
    manufacturing was based on the fees charged by the unaffiliated U.S. 
    processors; SeAH indicated that the reported further processors' 
    charges included processing and repacking, and that it did not include 
    separate G&A or interest expense information related to this further 
    processing because all of the expenses incurred by State and PPA, 
    including the minimal G&A and interest expense associated with their 
    dealings with further processors, were reported as selling expenses. 
    Finally, we made an adjustment for an amount of profit allocated to 
    these expenses, when incurred in connection with economic activity in 
    the United States, in accordance with section 772(d)(3) of the Act.
    
    Normal Value
    
    A. Model Match
    
        In accordance with recent practice, we matched a given U.S. sale to 
    comparison market sales of the next most similar model if all 
    contemporaneous sales of the most comparable model were below cost and 
    discarded from our analysis. The Department uses CV as the basis for NV 
    only when there are no above-cost sales that are otherwise suitable for 
    comparison. Therefore, in this proceeding, in making comparisons in 
    accordance with section 771(16) of the Act, we considered all products 
    sold in the comparison market as described in the ``Scope of Review'' 
    section of this notice, above, that were in the ordinary course of 
    trade for purposes of determining appropriate product comparisons to 
    U.S. sales. Where there were no sales of identical merchandise in the 
    comparison market made in the ordinary course of trade to compare to 
    U.S. sales, we compared U.S. sales to sales of the most similar foreign 
    like product made in the ordinary course of trade, based on the 
    characteristics listed in Sections B and C of our antidumping 
    questionnaire. This methodology is in accordance with the ruling of the 
    Court of Appeals for the Federal Circuit in CEMEX vs. United States, 
    133 F.3d 897 (Fed Cir. 1998).
    
    B. Cost of Production and Constructed Value
    
        1. Cost of Production: On December 2, 1997, petitioners alleged 
    that SeAH made comparison market sales of OCTG at prices below the cost 
    of production (``COP'') during the POR. After analyzing petitioners'' 
    allegation (see the aforementioned Cost Allegation Analysis Memo), the 
    Department determined that it had reasonable grounds to believe or 
    suspect that sales had been made at prices that were less than the COP. 
    Therefore, on January 8, 1998, pursuant to section 773(b) of the Act, 
    the Department initiated a COP investigation of SeAH. We compared sales 
    of the foreign like product in the comparison market with the model-
    specific COP figure for the POR. In accordance with section 773(b)(3) 
    of the Act, we calculated the COP based on the sum of the costs of 
    materials and fabrication employed in producing the foreign like 
    product, plus selling, general and administrative (SG&A) expenses, 
    including all costs and expenses incidental to placing the foreign like 
    product in condition packed and ready for shipment. In our COP 
    analysis, we used comparison market sales and COP information provided 
    by the respondent in its questionnaire responses.
        The API Specification 5CT, to which SeAH states it makes its OCTG, 
    requires that a carload lot (considered to be a minimum of 40,000 
    pounds, or 18.14 metric tons) meet a negative weight tolerance of 1.75% 
    (i.e., the actual weight of the carload lot can be no less than 100% 
    minus 1.75%, or 98.25%, of the theoretical weight of the carload, the 
    latter being the weight basis for SeAH's sales). The weight tolerance 
    for single lengths of pipe are plus 6.5% and minus 3.5% (i.e., the 
    actual weight of any given pipe must be between 96.5% and 106.5% of the 
    theoretical weight). SeAH has reported weight conversion factors that 
    indicate actual weight was less than 96.5% of theoretical weight, 
    outside of the API weight tolerance. Weight conversion factors are 
    needed to convert SeAH's production costs, which for most OCTG products 
    are maintained on an actual weight basis, to a theoretical weight basis 
    so that the cost and sales data are on a comparable weight basis.
        Petitioners argue that these conversion factors cannot, by 
    definition, be greater than 1.75% because SeAH does not know at the 
    time of production whether or not the customers will eventually 
    purchase carload lots. Petitioners state that the Department should 
    therefore deny SeAH's conversion factors in their entirety.
        SeAH argues that the minus 1.75% tolerance only applies to OCTG 
    which has an outside diameter of less than 1.660 inches and that it did 
    not produce or make sales of these products to Myanmar or the United 
    States. SeAH asserts that it, State, and their customers do not require 
    that carload lots of the merchandise be weighed, and that it, State, 
    and their customers do not interpret the API specifications to require 
    that the carload lots of the merchandise be weighed. SeAH indicates 
    that it performs a weight-tolerance test for plain-end pipe, to make 
    sure its weight meets the plus 6.5% and minus 3.5% tolerances, and
    
    [[Page 47472]]
    
    that it performs the same test again, after the further processing 
    (performed in Korea for Myanmar sales, and by the unaffiliated U.S. 
    further processors for U.S. sales), to assure that the finished goods 
    meet the same tolerances.
        We find, based on the record, that the minus 1.75% weight tolerance 
    API specified for carload lots of 5CT applies for all OCTG produced to 
    that specification, not simply to OCTG with an outside diameter of less 
    than 1.660 inches. The specification states that ``[a]ll dimensions 
    shown herein without tolerances are related to the basis for design and 
    are not subject to measurement to determine acceptance or rejection of 
    the product,'' and that ``[e]xceptions are Grades C90, T95, and Q125, 
    which may be furnished in other sizes, weights, and wall thicknesses as 
    agreed between the purchaser and the manufacturer'' (see API 
    Specification 5CT at section 7.1, in SeAH's December 24, 1997 
    submission). The carload lot weight is a dimension (weight) with a 
    tolerance (minus 1.75%), and none of SeAH's Myanmar or U.S. sales were 
    of Grades C90, T95, or Q125.
        Nevertheless, it does not appear that the API carload lot weight 
    tolerance would apply to merchandise being transported by ship, which 
    is the case for SeAH's Myanmar sales and for its U.S. sales to PPA. 
    These are the transactions that are relevant for cost purposes; the 
    further manufactured U.S. sales to unaffiliated U.S. customers need not 
    meet any particular specification, or even be categorized as OCTG. SeAH 
    stated that its production meets the minus 3.5% and plus 6.5% 
    tolerance, and there is no clear reason why the actual weight should be 
    less than 96.5% of the theoretical weight if all of SeAH's OCTG is 
    produced to the specification. Consequently, for our preliminary 
    results we have used a conversion factor based on this assumption 
    (except for products for which costs were maintained on a theoretical 
    weight basis, which require no weight conversion).
        Hot-rolled steel coil is one of the main material inputs used to 
    manufacture OCTG. SeAH purchased the majority of its hot-rolled steel 
    coil inputs from Pohang Iron and Steel Co., Ltd. (``POSCO''). While 
    SeAH and POSCO are involved in a joint venture that produced non-
    subject merchandise, we have no other information on the record which 
    indicates that these two companies should be considered affiliated 
    parties pursuant to section 771(33) of the Act. Therefore, we have 
    preliminarily determined that SeAH and POSCO are not affiliated.
        After calculating COP, we tested whether comparison market sales of 
    the foreign like product were made at prices below COP and, if so, 
    whether the below-cost sales were made within an extended period of 
    time, in substantial quantities, and at prices that did not permit 
    recovery of all costs within a reasonable period of time. Because each 
    individual price was compared against the POR average COP, any sales 
    that were below cost were also determined not to be at prices which 
    permitted cost recovery within a reasonable period of time. We compared 
    model-specific COPs to the reported comparison market prices, less any 
    applicable movement charges, discounts, and rebates.
        Pursuant to section 773(b)(2)(C) of the Act, where less than 20 
    percent of a respondent's sales of a given model were at prices less 
    than COP, we did not disregard any below-cost sales of that model 
    because the below-cost sales were not made in substantial quantities 
    within an extended period of time. Where 20 percent or more of a 
    respondent's sales of a given model during the POR were at prices less 
    than the weighted-average COPs for the POR, we disregarded the below-
    cost sales because they were made within an extended period of time in 
    substantial quantities in accordance with sections 773(b)(2) (B) and 
    (C) of the Act, and were at prices which would not permit recovery of 
    all costs within a reasonable period of time in accordance with section 
    773(b)(2)(D) of the Act.
        2. Constructed Value: In accordance with section 773(a)(4) of the 
    Act, we used constructed value (``CV'') as the basis for NV when there 
    were no above-cost contemporaneous sales of such or similar merchandise 
    in the comparison market. We calculated CV in accordance with section 
    773(e) of the Act. We included SeAH's cost of materials and fabrication 
    (including packing), SG&A expenses, and profit. See section 
    773(e)(2)(A) of the Act. We applied the same conversion factor 
    methodology as noted in the COP section above. 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 the respondent in connection with 
    the production and sale of the foreign like product in the ordinary 
    course of trade for consumption in the comparison market. For selling 
    expenses, we used the weighted-average comparison market selling 
    expenses.
    
    C. Price-to-Price Comparison
    
        Where appropriate, for comparison to CEP, we made adjustments to NV 
    by deducting Korean inland freight, brokerage, handling, and packing, 
    in accordance with sections 773(a)(6)(A) and (B) of the Act, and by 
    deducting direct selling expenses (credit expenses) in accordance with 
    section 773(a)(6)(C)(iii) of the Act. We also made adjustments for 
    differences in costs attributable to differences in physical 
    characteristics of merchandise, pursuant to section 773(a)(6)(C)(ii) of 
    the Act.
        In accordance with section 773(a)(1)(B) of the Act, to the extent 
    practicable, we determine NV based on sales in the comparison market at 
    the same level of trade (``LOT'') as the U.S. sales. The NV LOT is that 
    of the starting-price sales in the comparison market or, when NV is 
    based on CV, that of the sales from which we derive SG&A expenses and 
    profit. For both EP and CEP, the relevant transaction for the level of 
    trade analysis is the sale (or constructed sale) from the exporter to 
    the importer.
        To determine whether comparison market NV sales are at a different 
    LOT than EP or CEP, we examine stages in the marketing process and 
    selling functions along the chain of distribution between the producer 
    and unaffiliated customer. If the comparison-market sales are at a 
    different LOT 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 LOT of 
    the export transaction, we make a LOT adjustment under section 
    773(a)(7)(A) of the Act. Finally, if the NV level is more remote from 
    the factory than the CEP level and there is no basis for determining 
    whether the difference in the levels between NV and CEP affects price 
    comparability, we adjust NV under section 773(a)(7)(B) of the Act (the 
    CEP-offset provision). 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, 61732 (November 17, 1997), and Granular 
    Polytetrafluoroethylene Resin From Italy; Preliminary Results of 
    Antidumping Duty Administrative Review, 63 FR 25826 (May 11, 1998).
        SeAH asserted that its comparison market sales were at a different 
    LOT than its U.S. sales because the comparison market sales are at a 
    more advanced level of distribution than its sales to State, and 
    because SeAH performed and incurred all expenses for all significant 
    selling functions and support services for the comparison market sales, 
    but did not perform them for its CEP sales made through PPA and State. 
    SeAH requested a CEP offset to
    
    [[Page 47473]]
    
    reflect these differences (see, e.g., pages 19-21 of SeAH's November 
    12, 1997, Section B questionnaire response).
        In its original questionnaire response, SeAH asserted that it 
    performs many functions with respect to third country sales that it 
    does not perform with respect to U.S. sales, such as: gathering 
    strategic and marketing information including industry developments, 
    potential new or refined applications, products and sales practices of 
    customers and competitors, and technical and engineering developments; 
    establishing pricing policies for OCTG sales based on market conditions 
    in the third-country market; establishing sales promotional and 
    marketing strategies, including advertising, promotional activities, 
    and technical service for third-country market sales; and maintaining a 
    skilled sales force that is knowledgeable about SeAH's OCTG products 
    and the OCTG market in the third country market. Therefore, SeAH claims 
    that it has distinguished different levels of trade for its Myanmar 
    sales versus its sales to the U.S. importer of record, PPA, by 
    highlighting ways in which SeAH is deeply involved with, and 
    knowledgeable about, the Myanmar market.
        However, the record indicates that SeAH has greatly overstated the 
    extent and importance of its activities with respect to the Myanmar 
    market. For example, at page 14 of its April 3, 1998 supplemental 
    questionnaire response, SeAH indicated that it does not even know the 
    identity or location of the customers of the Korean trading company to 
    which it made its Myanmar sales. While SeAH clarified this point at 
    page 40 of its June 4, 1998 supplemental questionnaire response by 
    saying that several documents in the third country sales process 
    indicate the destination and identity of the ultimate Myanmar 
    customers, it also noted that it had no contact with those Myanmar 
    customers, nor did it have any knowledge of the prices that the 
    unaffiliated Korean trading company charged those Myanmar customers. 
    SeAH's knowledge of the OCTG market is based on ``customer contacts and 
    other contacts in the industry'' (see page 13 of the April 3, 1998 
    supplemental questionnaire response), and based on SeAH's own 
    statements, such contacts with respect to Myanmar are very limited.
        The record does not indicate more than a minimal involvement by 
    SeAH in either the marketing process or the selling functions 
    associated with its Myanmar and U.S. sales. There does not appear to be 
    any substantive difference between the functions performed by SeAH with 
    respect to the sales to the Korean trading company destined for Myanmar 
    and the functions performed by SeAH with respect to its sales to PPA, 
    the affiliated U.S. importer of record. In both instances, SeAH made 
    sales to resellers that in turn sold to end-users, and the record does 
    not indicate any more than the most minimal interaction of SeAH with 
    those resellers (the unaffiliated Korean trading company for the 
    Myanmar sales, and PPA for the U.S. sales) with respect to the sales 
    process. Consequently, we have preliminarily determined that the sales 
    in both markets are at the same LOT. Therefore, a CEP offset is not 
    warranted.
    
    Preliminary Results of Reviews
    
        As a result of our review, we preliminarily determine the weighted-
    average dumping margin for the period August 1, 1996 through July 31, 
    1997 to be as follows:
    
    ------------------------------------------------------------------------
                                                                    Margin
              Manufacturer/exporter              Time period      (percent)
    ------------------------------------------------------------------------
    SeAH....................................     9/1/96-8/31/97         0.35
    ------------------------------------------------------------------------
    
        Pursuant to 19 CFR 351.224(b), the Department will disclose to 
    parties to the proceeding any calculations performed in connection with 
    these preliminary results within five days after the publication of 
    this notice. Pursuant to 19 CFR 351.309, interested parties may submit 
    written comments in response to these preliminary results. Case briefs 
    must be submitted within 30 days after the date of publication of this 
    notice, and rebuttal briefs, limited to arguments raised in case 
    briefs, must be submitted no later than five days after the time limit 
    for filing case briefs. 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. Case and rebuttal 
    briefs must be served on interested parties in accordance with 19 CFR 
    351.303(f). Also, pursuant to 19 CFR 351.310, within 30 days of the 
    date of publication of this notice, interested parties may request a 
    public hearing on arguments to be raised in the case and rebuttal 
    briefs. Unless the Secretary specifies otherwise, the hearing, if 
    requested, will be held two days after the date for submission of 
    rebuttal briefs, that is, thirty-seven days after the date of 
    publication of these preliminary results.
        The Department will publish the final results of this 
    administrative review, including the results of its analysis of issues 
    raised in any case or rebuttal brief or at a hearing, not later than 
    120 days after the date of publication of this notice.
        The Department shall determine, and the U.S. Customs Service shall 
    assess, antidumping duties on all appropriate entries. In accordance 
    with 19 CFR 351.212(b), we have calculated exporter/importer-specific 
    assessment rates. We divided the total dumping margins for the reviewed 
    sales by the total entered value of those reviewed sales for each 
    importer. We will direct the U.S. Customs Service to assess the 
    resulting percentage margin against the entered customs values for the 
    subject merchandise on each of that importer's entries under the 
    relevant order during the review period.
        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, as 
    provided by section 751(a) of the Act: (1) The cash deposit rate for 
    each reviewed company will be that established in the final results of 
    review (except that a deposit of zero will be required for firms with 
    zero or de minimis margins, i.e., margins less than 0.5 percent); (2) 
    for exporters not covered in this review, but covered in the LTFV 
    investigation or previous review, 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, a previous 
    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 the 
    ``all others'' rate established in the LTFV investigation, which was 
    12.17 percent. These requirements, when imposed, shall remain in effect 
    until publication of the final results of the next administrative 
    review.
        This notice serves as a preliminary reminder to importers of their 
    responsibility under 19 CFR 351.402(f) 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 administrative reviews and notices are published in 
    accordance with 751(a)(1) of the Act (19 U.S.C.
    
    [[Page 47474]]
    
    1675(a)(1)) and 19 CFR 351.213 and 19 CFR 351.221(b)(4).
    
        Dated: August 31, 1998.
    Joseph A. Spetrini,
    Acting Assistant Secretary for Import Administration.
    [FR Doc. 98-24068 Filed 9-4-98; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Effective Date:
9/8/1998
Published:
09/08/1998
Department:
International Trade Administration
Entry Type:
Notice
Action:
Notice of Preliminary Results of the Antidumping Duty Administrative Review of Oil Country Tubular Goods From Korea.
Document Number:
98-24068
Dates:
September 8, 1998.
Pages:
47469-47474 (6 pages)
Docket Numbers:
A-580-825
PDF File:
98-24068.pdf