[Federal Register Volume 59, Number 191 (Tuesday, October 4, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-24541]


[[Page Unknown]]

[Federal Register: October 4, 1994]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE
[A-580-824]

 

Preliminary Determination of Sales at Less Than Fair Value: 
Certain Carbon Steel Butt-Weld Pipe Fittings From South Korea

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

EFFECTIVE DATE: October 4, 1994.

FOR FURTHER INFORMATION CONTACT:
Thomas McGinty or Peter Wilkniss, Office of Countervailing 
Investigations, Import Administration, U.S. Department of Commerce, 
14th Street and Constitution Avenue, N.W., Washington, D.C. 20230; 
telephone (202) 482-5055 and (202) 482-0588, respectively.
    Preliminary Determination: We preliminarily determine that imports 
of certain carbon steel butt-weld pipe fittings (``pipe fittings'') 
from South Korea are being, or are likely to be, sold in the United 
States at less than fair value, as provided in section 733 of the 
Tariff Act of 1930, as amended (the Act). The estimated margins are 
shown in the ``Suspension of Liquidation'' section of this notice.

Case History

    Since the initiation of this investigation on March 21, 1994, (59 
FR 14148, March 25, 1994), the following events have occurred.
    On April 14, 1994, the U.S. International Trade Commission (ITC) 
issued an affirmative preliminary injury determination (see, ITC 
Investigation No. 731-TA-692).
    In accordance with 19 CFR 353.42(b)(1994), on April 29, 1994, the 
Department of Commerce (the Department) issued its antidumping duty 
questionnaire to Taekwang Bend Ind. Co., Inc. (Taekwang), the South 
Korean company which accounts for more than 60 percent of all exports 
of the subject merchandise to the U.S. during the POI. The Department 
has received no response to this questionnaire.
    On June 30, 1994, petitioner requested a 50-day postponement of the 
preliminary determination. The request was granted by the Department on 
July 19, 1994 (59 FR 37961, July 26, 1994).

Scope of Investigation

    The products covered by this investigation are certain carbon steel 
butt-weld pipe fittings (``pipe fittings'') having an inside diameter 
of less than fourteen inches (355 millimeters), imported in either 
finished or unfinished condition. Pipe fittings are formed or forged 
steel products used to join pipe sections in piping systems were 
conditions require permanent welded connections, as distinguished from 
fittings based on other methods of fastening (e.g., threaded, grooved, 
or bolted fittings). Butt-weld fittings come in a variety of shapes 
which include ``elbows,'' ``tees,'' ``caps,'' and ``reducers.'' The 
edges of finished pipe fittings are beveled, so that when a fitting is 
placed against the end of a pipe (the ends of which have also been 
beveled), a shallow channel is created to accommodate the ``bead'' of 
the weld which joins the fitting to the pipe. These pipe fittings are 
currently classifiable under subheading 7307.93.3000 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 
proceeding is dispositive.

Period of Investigation

    The period of investigation is September 1, 1993, through February 
28, 1994.

Best Information Available

    Taekwang did not respond to our questionnaire. Therefore, we have 
based our preliminary determination on best information available (BIA) 
pursuant to section 776(c) of the Act, which provides that the 
Department shall use BIA when a company identified by the Department as 
a respondent refuses to provide requested information.
    In determining what rate to use as BIA, the Department follows a 
two-tiered methodology, whereby the Department normally assigns lower 
margins to those respondents who cooperated in an investigation and 
margins based on more adverse assumptions for those respondents who did 
not cooperate in an investigation. According to this methodology, as 
outlined in the Final Determination of Sales at Less Than Fair Value: 
Antifriction Bearings, Other than Tapered Roller Bearings, from 
Germany, 54 FR 18992w, 19033 (May 3, 1989), when a company refuses to 
provide the information requested in the form required, or otherwise 
significantly impedes the Department's investigation, it is appropriate 
for the Department to assign to that company the higher of (1) the 
highest margin alleged in the petition, or (2) the highest calculated 
rate of any respondent in the investigation. (See Allied Signal 
Aerospace Co. v. United States, 996 F. 2d 1185, 1191-92 (Fed. Cir. 
1993).) Because there were no cooperative respondents in this 
investigation, we are assigning to all exporters, as BIA, the highest 
margin calculated in the petition, as adjusted for methodological 
errors as explained in the Department's initiation notice, 207.89 
percent.

Suspension of Liquidation

    In accordance with section 733(d)(1) of the Act, we are directing 
the Customs Service to suspend liquidation of all entries of pipe 
fittings from South Korea that are entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. The Customs Service shall require a 
cash deposit or posting of a bond equal to the estimated preliminary 
dumping margin, as shown below. The suspension of liquidation will 
remain in effect until further notice.

------------------------------------------------------------------------
                                                                Margin  
               Manufacturer/Producer/Exporter                 percentage
------------------------------------------------------------------------
All companies...............................................      207.89
------------------------------------------------------------------------

ITC Notification

    In accordance with section 733(f) of the Act, we have notified the 
ITC of our determination. If our final determination is affirmative, 
the ITC will determine whether these imports are materially injuring, 
or threaten material injury to, the U.S. industry before the later of 
120 days after the date of this preliminary determination or 45 days 
after our final determination.

Public Comment

    In accordance with 19 CFR 353.38(b), we will hold a public hearing, 
if requested, to afford interested parties an opportunity to comment on 
arguments raised in case or rebuttal briefs. Interested parties who 
wish to request a hearing, or to participate if one is requested, must 
submit a written request to the Assistant Secretary for Import 
Administration, U.S. Department of Commerce, Room B-099, within ten 
days of the publication of this notice. Tentatively, the hearing will 
be held on November 28, 1994, at 1:00 p.m. at the U.S. Department of 
Commerce, Room 1414, 14th Street and Constitution Avenue, N.W., 
Washington, D.C. 20230. Parties should confirm by telephone the time, 
date, and place of the hearing 48 hours before the scheduled time.
    Requests should contain: (1) The party's name, address, and 
telephone number; (2) the number of participants; and (3) a list of the 
issues to be discussed. In accordance with 19 CFR 353.38, case briefs 
or other written comments of at least five copies must be submitted to 
the Assistant Secretary for Import Administration no later than 
November 16, 1994, and rebuttal briefs, no later than November 23, 
1994. In accordance with 19 CFR 353.38(b), oral presentations will be 
limited to issues raised in the briefs.
    If this investigation proceeds normally, we will make our final 
determination within 75 days of the signing of this preliminary 
determination.
    This determination is published pursuant to section 733(f) of the 
Act and 19 CFR 353.15(a)(4).

    Dated: September 26, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-24541 Filed 10-3-94; 8:45 am]
BILLING CODE 3510-DS-M