[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: 94-24542]


[[Page Unknown]]

[Federal Register: October 4, 1994]


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DEPARTMENT OF COMMERCE
[A-557-808]

 

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

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, NW., 
Washington, DC 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 
Malaysia 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-691).
    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 Malaysia Mining Corporation Pipe & Fitting Sdn Bhd 
(MMCPNF), the Malaysian company identified by both petitioner and the 
U.S. Embassy in Malaysia (by cable to the Department) as the primary 
exporter of the subject merchandise to the U.S. during the POI.
    On May 27, 1994, the Department received a letter from the 
Government of Malaysia stating that MMCPNF was placed in receivership 
in October 1993, ceased production at that time, and is currently in 
the process of selling its assets. Therefore, MMCPNF would not be 
responding to the Department's antidumping duty questionnaire.
    On June 3, 1994, the Department received a letter from petitioner 
in which the petitioner named another Malaysian producer of pipe 
fittings, Taiyo Steel Corporation (Taiyo). In order to ensure that all 
potential respondents were identified, we then cabled the U.S. Embassy 
in Malaysia a second time requesting information on Taiyo and any other 
Malaysian producers of pipe fittings. The U.S. Embassy responded that 
no company by that name could be found and identified no other 
Malaysian producers of pipe fittings.
    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).
    On August 4, 1994, the Department received an amendment to the 
petition alleging that critical circumstances exist with respect to 
imports of pipe fittings from Malaysia. In accordance with section 
735(a)(3) of the Act, on August 12, 1994, the Department issued a 
letter to MMCPNF requesting monthly volume and value shipment data for 
the period January 1, 1992, through September 27, 1994. The Department 
has received no reply to this request.

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 where 
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

    MMCPNF 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 
outline in the Final Determination of Sales at Less Than Fair Value: 
Antifriction Bearings, Other Than Tapered Roller Bearings, from 
Germany, 54 FR 18992, 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, adjusted for methodological errors 
as explained in the Department's initiation notice. The adjusted rate 
is 194.7 percent.

Critical Circumstances

    Petitioner has alleged that critical circumstances exist with 
respect to imports of the subject merchandise from Malaysia. Section 
735(a)(3) of the Act provides that the Department will determine that 
critical circumstances exist if:
    (A)(i) There is a history of dumping in the U.S. or elsewhere of 
the class or kind of merchandise which is the subject of this 
investigation, or
    (ii) The person by whom, or for whose account, the merchandise was 
imported knew or should have known that the exporter was selling the 
merchandise which is the subject of the investigation at less than its 
fair value, and
    (B) There have been massive imports of the class or kind of 
merchandise which is the subject of this investigation over a 
relatively short period.
    Since MMCPNF did not respond to our letter of August 12, 1994, we 
preliminarily determine, as BIA, pursuant to section 776(c) of the Act, 
that critical circumstances exist with respect to imports of pipe 
fittings from Malaysia.

Suspension of Liquidation

    In accordance with section 733(d)(1) of the Act and 19 CFR 
353.16(c), we are directing the Customs Service to suspend liquidation 
of all entries of pipe fittings from Malaysia that are entered, or 
withdrawn from warehouse, for consumption on or after the date 90 days 
prior to 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...............................................     194.70 
------------------------------------------------------------------------

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 in 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, this 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 in 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. 94-24542 Filed 10-3-94; 8:45 am]
BILLING CODE 3510-DS-M