[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