99-23322. Oil Country Tubular Goods From Korea: Preliminary Results of Antidumping Duty Administrative Review  

  • [Federal Register Volume 64, Number 173 (Wednesday, September 8, 1999)]
    [Notices]
    [Pages 48783-48788]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-23322]
    
    
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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, 1997 through July 31, 1998, which is the 
    third 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 these administrative reviews, 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. The 
    preliminary results are listed below in the section entitled 
    ``Preliminary Results of Review.''
    
    EFFECTIVE DATE: September 8, 1999.
    
    FOR FURTHER INFORMATION CONTACT: Jonathan Lyons or Steve Bezirganian, 
    Import Administration, International Trade Administration, U.S. 
    Department of Commerce, 14th Street and Constitution Avenue, NW., 
    Washington, DC 20230; telephone: (202) 482-0374, or (202) 482-0162, 
    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).
    
    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 11, 1998, the Department published 
    in the Federal Register (63 FR 42821) a notice indicating an 
    opportunity to request an administrative review of this order for the 
    period August 1, 1997 through July 31, 1998. On August 31, 1998, both 
    SeAH and petitioners (Maverick Tube Corporation, Lone Star Steel 
    Company, and IPSCO Tubulars Inc.) requested an administrative review 
    for SeAH entries during that period. On September 29, 1998, 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, 1997 through July 31, 1998 (63 FR 
    51893).
    
    [[Page 48784]]
    
        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 February 17, 1999, the Department 
    published a notice of extension of the time limit for the preliminary 
    results in the review to August 13, 1999. See Notice of Extension of 
    Time Limit for Antidumping Duty Administrative Review of Oil Country 
    Tubular Goods from Korea, 64 FR 7855. On July 20, 1999, the Department 
    published a notice of extension of the time limit for the preliminary 
    results in the review to August 31, 1999. See Notice of Extension of 
    Time Limit for Antidumping Duty Administrative Review of Oil Country 
    Tubular Goods from Korea, 64 FR 38890.
        The Department is conducting this review in accordance with section 
    751(a) of the Act.
    
    Scope of Review
    
        The products 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 products 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.
    
    Transactions Reviewed
    
        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 for all U.S. sales. All of SeAH's U.S. sales are 
    classified as CEP sales (see ``United States Price'' section below). 
    The Department's questionnaire instructed the respondent to report CEP 
    sales made after importation if the dates of sale fell in the period of 
    review (see page C-1 of the Department's September 29, 1998 
    Questionnaire). Therefore, as it did in the 1996-1997 POR, the 
    Department again reviewed U.S. sales in the POR if those sales involved 
    subject merchandise that had entered the United States and been placed 
    in the physical inventory of SeAH's U.S. affiliates. The questionnaire 
    also instructed the respondent to report CEP sales made prior to 
    importation if the entry dates fell in the period of review. 
    Consequently, we have limited our U.S. database to these transactions. 
    For the few CEP sales made through PPA but shipped directly from Korea 
    to the unaffiliated U.S. customers, we reviewed U.S. entries in the 
    POR.
    
    Comparison Market
    
        The Department determines the viability of a comparison market by 
    comparing the aggregate quantity of comparison market sales to 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 United States 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 United States 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 only 
    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 two potential third country markets are 
    Myanmar and Japan. Sales to Myanmar, on both a value and a volume 
    basis, were several times greater than sales to Japan. See, e.g., 
    Exhibit A-30 of SeAH's March 19, 1999, supplemental questionnaire 
    response. In the previous administrative review the Department found 
    the Myanmar sales to be representative, and 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. See Oil Country Tubular Goods From Korea: Preliminary 
    Results of Antidumping Duty Administrative Review, 63 FR 47469, 47470 
    (September 8, 1998), unchanged at Oil Country Tubular Goods from Korea: 
    Final Results of Antidumping Duty Administrative Review, 64 FR 13169 
    (March 17, 1999). Likewise, in this administrative review we found 
    Myanmar to be an appropriate comparison market. We utilized Myanmar 
    sales in our analysis of petitioners' allegation regarding sales below 
    cost (see ``Normal Value'' section below), and have used SeAH's sales 
    to that market as the basis for normal value.
    
    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 period of review (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 29, 
    1998 antidumping questionnaire.
    
    Normal Value Comparisons
    
        To determine whether sales of subject merchandise to the United 
    States were made at less than normal 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
    
    [[Page 48785]]
    
    compared these to individual U.S. transaction prices.
    
    United States Price
    
        Typical sales proceeded as follows: after importation of the 
    subject merchandise, PPA maintained the merchandise in inventory. PPA 
    sold OCTG to the Panther division of 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. Finally, State invoiced the unaffiliated 
    customers and received payment. For a few sales, involving back-to-back 
    sales by SeAH through PPA, SeAH produced subject merchandise to order 
    and shipped the merchandise to the U.S. customer, with PPA fulfilling a 
    number intermediary functions as discussed below.
        In accordance with section 772(b) of the Act, we used CEP for 
    calculation of price to the United States because either the first 
    sales to unaffiliated customers in the United States were made after 
    importation of the subject merchandise or, in the remaining instances, 
    the U.S. affiliate, PPA, performed functions beyond what would be 
    considered ancillary. For back-to-back sales, respondent confirmed that 
    PPA performed a number of functions, including occasional negotiations 
    with unaffiliated customers, forwarding orders and order changes (at 
    times) from unaffiliated U.S. customers to SeAH for acceptance, acting 
    as the importer of record, provision of marine insurance, clearing 
    subject merchandise through U.S. customs, occasional handling of 
    freight from the U.S. point of entry, preparing and issuing invoices to 
    unaffiliated customers, receipt of payments from unaffiliated 
    customers, and providing customer service when necessary. Finally, 
    respondent reported that SeAH has no direct contact with unaffiliated 
    U.S. customers. As noted on page 2 of SeAH's supplemental questionnaire 
    response dated March 19, 1999, the respondent agreed to characterize 
    these ``back-to-back'' sales as CEP sales, in part because such 
    characterization was consistent with the Department's recent decision 
    involving respondents with similar sales processes (see Certain Cold-
    Rolled and Corrosion-Resistant Carbon Steel Flat Products from Korea: 
    Final Results of Antidumping Duty Administrative Reviews, 64 FR 12927, 
    12937-38 (March 16, 1999)).
        The starting point for the calculation of CEP was the delivered 
    price to unaffiliated customers in the United States. We made 
    adjustments for early payment discounts and other discounts. 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, 
    warehousing expenses, other direct selling expenses (inspection 
    expenses), and indirect selling expenses, including inventory carrying 
    costs. In accordance with section 772(c)(1)(B) of the Act, we added 
    duty drawback to the starting price. 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 deducted 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. See Oil Country Tubular Goods From Korea: 
    Preliminary Results of Antidumping Duty Administrative Review, 63 FR 
    47469, 47471 (September 8, 1998), unchanged at Oil Country Tubular 
    Goods from Korea: Final Results of Antidumping Duty Administrative 
    Review, 64 FR 13169 (March 17, 1999). The Department uses CV as the 
    basis for NV only when there are no sales that are suitable for 
    comparison. Therefore, in this proceeding, in making comparisons in 
    accordance with section 771(16) of the Act, we considered all products 
    described in the ``Scope of Review'' section of this notice, above, 
    sold in the comparison market 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 pursuant to 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 21, 1998, 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, on 
    February 4, 1999, the Department initiated a COP investigation of SeAH 
    (see Analysis of Petitioners' Allegation of Sales Below the Cost of 
    Production Memorandum (February 4, 1999); a public version of this 
    report is on file in the Central Record Unit, Room B-099, Department of 
    Commerce). Using sales and COP information provided by the respondent, 
    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.
        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 its own interpretation of the specification's weight 
    tolerance. Weight conversion factors are needed to convert
    
    [[Page 48786]]
    
    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. See Circular Welded 
    Non-Alloy Steel Pipe From the Republic of Korea; Final Results of 
    Antidumping Duty Administrative Review, 63 FR 32833, 32836-37 (June 16, 
    1998).
        In the prior review, we found that the minus 1.75% weight tolerance 
    for carload lots applies for all OCTG produced to that specification, 
    not simply to OCTG with an outside diameter of less than 1.660 inches. 
    See Oil Country Tubular Goods From Korea: Preliminary Results of 
    Antidumping Duty Administrative Review, 63 FR 47469, 47470 (September 
    8, 1998), unchanged in final. See Notice of Final Results of 
    Antidumping Duty Administrative Review of Oil Country Tubular Goods 
    From Korea, 64 FR 13169 (March 17, 1999). 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 Exhibit A-
    14 of SeAH's November 2, 1998, 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 of 1.75% would apply to merchandise being transported by 
    ship, which is the case for SeAH's Myanmar sales and for its sales to 
    PPA. Rather, the 3.5% weight tolerance indicated by the specification 
    would apply. Therefore, as we have determined in the prior review, 
    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 to calculate costs 
    (except for products for which costs were maintained on a theoretical 
    weight basis, which require no weight conversion), consistent with the 
    last administrative review. See Oil Country Tubular Goods From Korea: 
    Preliminary Results of Antidumping Duty Administrative Review, 63 FR 
    47469, 47472 (September 8, 1998), unchanged at Oil Country Tubular 
    Goods from Korea: Final Results of Antidumping Duty Administrative 
    Review, 64 FR 13169 (March 17, 1999).
        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 to 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 
    usable 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.
    
    C. Price-to-Price Comparison
    
        Where appropriate, for comparison to CEP, we made adjustments to NV 
    by deducting Korean inland freight, brokerage and handling, and 
    packing, in accordance with section 773(a)(6)(B) of the Act and 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'') of 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 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. 
    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).
        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 which are destined 
    for Myanmar and the functions performed by SeAH with respect to its
    
    [[Page 48787]]
    
    sales made 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 Myanmar sales and PPA for U.S. sales) with respect 
    to the sales process. Additionally, SeAH did not claim a LOT adjustment 
    or a CEP offset in this POR. Consequently, we have preliminarily 
    determined that the sales in both markets are at the same LOT. 
    Therefore, neither a CEP offset nor a LOT adjustment is warranted.
    
    Currency Conversion
    
        Our preliminary analysis of Federal Reserve dollar-won exchange 
    rate data shows that the won declined rapidly at the end of 1997, 
    losing over 40% of its value between the beginning of November and the 
    end of December. The decline was, in both speed and magnitude, many 
    times more severe than any change in the dollar-won exchange rate 
    during the previous eight years.
        Had the won rebounded quickly enough to recover all or almost all 
    of the initial loss, the Department might have been inclined to view 
    the won's decline at the end of 1997 as nothing more than a sudden, but 
    only momentary, drop, despite the magnitude of that drop. As it was, 
    however, there was no significant rebound. Therefore, we have 
    preliminarily determined that the decline in the won at the end of 1997 
    was so precipitous and large that the dollar-won exchange rate cannot 
    reasonably be viewed as having simply fluctuated during this time, 
    i.e., as having experienced only a momentary drop in value. Therefore, 
    in making this preliminary determination, the Department used daily 
    rates exclusively for currency conversion purposes for comparisons to 
    U.S. sales occurring between November 1 and December 31, 1997. For 
    sales occurring after December 31, but before March 1, 1998, the 
    Department continued to rely on the standard exchange rate model, but 
    used as the benchmark rate a (stationary) average of the daily rates 
    over this period. In this manner, we used an ``up-to-date'' (post-
    precipitous drop) benchmark, but at the same time avoided undue day-to-
    day fluctuations in the exchange rates used. See: Notice of Final 
    Determination of Sales at Less Than Fair Value: Emulsion Styrene-
    Butadiene Rubber from the Republic of Korea, 64 FR 14865, 14868 (March 
    29, 1999) and Notice of Preliminary Results and Partial Rescission of 
    Antidumping Duty Administrative Review: Steel Wire Rope from Korea, 63 
    FR 67662, 67665 (December 8, 1998), unchanged at Steel Wire Rope from 
    Korea; Final Results of Antidumping Duty Administrative Review and 
    Partial Rescission of Antidumping Administrative Review 64 FR 17995 
    (April 13, 1999).
    
    Preliminary Results of Reviews
    
        As a result of our review, we preliminarily determine the weighted-
    average dumping margin for the period August 1, 1997 through July 31, 
    1998 to be as follows:
    
    ------------------------------------------------------------------------
                                                                    Margin
            Manufacturer/Exporter               Time period       (percent)
    ------------------------------------------------------------------------
    SeAH                                      09/01/97-08/31/98        15.03
    ------------------------------------------------------------------------
    
        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 deadline for submission of 
    rebuttal briefs, that is, 37 days after the date of publication of 
    these preliminary results.
        The Department will issue the final results of this administrative 
    review, including 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 no deposit will be required for firms with 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
    
    [[Page 48788]]
    
    subsequent assessment of double antidumping duties.
        This administrative review and notice are issued in accordance with 
    sections 751(a)(1) and 777(i)(1) of the Act.
    Richard W. Moreland,
    Acting Assistant Secretary for Import Administration.
    [FR Doc. 99-23322 Filed 9-7-99; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Effective Date:
9/8/1999
Published:
09/08/1999
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:
99-23322
Dates:
September 8, 1999.
Pages:
48783-48788 (6 pages)
Docket Numbers:
A-580-825
PDF File:
99-23322.pdf