[Federal Register Volume 59, Number 209 (Monday, October 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26887]


[[Page Unknown]]

[Federal Register: October 31, 1994]


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DEPARTMENT OF COMMERCE
International Trade Administration
A-588-602

 

Certain Carbon Steel Butt-Weld Pipe Fittings From Japan; 
Initiation of Anti-Circumvention Inquiry on Antidumping Duty Order

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

ACTION: Notice of initiation of anti-circumvention inquiry.

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SUMMARY: On the basis of a petition filed with the Department of 
Commerce, we are initiating an anti-circumvention inquiry to determine 
whether producers of carbon steel butt-weld pipe fittings from Japan 
are circumventing the antidumping duty order on carbon steel butt-weld 
pipe fittings.

Effective Date: October 31, 1994.

FOR FURTHER INFORMATION CONTACT: Donald Little or Maureen Flannery, 
Office of Antidumping Compliance, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue, N.W., 
Washington, D.C. 20230; telephone: (202) 482-4733.

SUPPLEMENTARY INFORMATION:

Background

    On March 22, 1994, the Department of Commerce (the Department) 
received a petition filed by the U.S. Fittings Group (the petitioner) 
requesting that the Department conduct an anti-circumvention inquiry on 
the antidumping duty order on Certain Carbon Steel Butt-Weld Pipe 
Fittings from Japan (52 FR 4167 (February 10, 1987)). The U.S. Fittings 
Group is an ad hoc trade association of domestic producers of carbon 
steel butt-weld pipe fittings (pipe fittings) whose members currently 
consist of Hackney, Inc., Ladish Co., Mill Iron Works, Inc., and Tube 
Forgings of America, Inc.
    Petitioner alleges that unfinished pipe fittings from Japan are 
being finished in Thailand by Awaji Sangyo (Thailand) Co. (AST), and 
thereafter imported into the United States free of any antidumping 
duties. Petitioner asserts that all the elements necessary for an 
affirmative determination under Section 781(b) of the Tariff Act of 
1930, as amended, (the Tariff Act) are present.
    The Department received a letter from AST on March 31, 1994, 
stating that petitioner's request should be denied because unfinished 
pipe fittings from Japan, as imported by AST, are not included in the 
scope of the Japanese order.

Initiation of Anti-Circumvention Proceeding

    Section 781(b) of the Tariff Act allows the Department to include 
merchandise within the scope of an existing order if the following 
conditions are met: (1) The merchandise entering the United States must 
be of the same class or kind as the merchandise subject to the 
antidumping duty order; (2) prior to importation into the United 
States, the merchandise must be completed or assembled in a third 
country from subject merchandise or merchandise produced in the country 
subject to the order; and (3) the difference in value of the imported 
merchandise and the value of such merchandise completed or assembled in 
a third country must be ``small.''
    Our analysis of petitioner's submission according to the above 
criteria leads us to conclude that: (1) there is evidence that the 
merchandise entered into the United States is of the same class or kind 
as that covered by the Japanese order; (2) there is public evidence 
that AST imported unfinished pipe fittings from Japan, performed 
finishing operations, and then exported these finished pipe fittings to 
the United States; and (3) the difference in value between the imported 
finished pipe fittings and the unfinished Japanese pipe fittings 
finished by AST is most likely ``small.'' In addition to the criteria 
discussed above, the statute also lists other factors to consider in 
determining whether to include such merchandise in the antidumping duty 
order. These are: (1) The pattern of trade; (2) whether a relationship 
exists between the manufacturer or exporter and the third-country 
assembler of the product; and (3) whether imports into the foreign 
country of the product have increased after the issuance of the order. 
Our analysis of the information in the petitioner's submission leads us 
to conclude that: (1) U.S. import statistics evidence a shift in the 
pattern of trade subsequent to the Japanese order; (2) there is no 
relationship between the manufacturer or exporter and the third-country 
assembler; and (3) the data with respect to any increase of imports 
into the foreign country are inconclusive. For further analysis, see 
Memorandum from Joseph A. Spetrini to Susan G. Esserman, dated October 
21, 1994. Based on this information, we are initiating an anti-
circumvention inquiry on carbon steel butt-weld pipe fittings from 
Japan, case number A-588-602.
    The Department will not suspend liquidation at this time. However, 
the Department will instruct the U.S. Customs Service to suspend 
liquidation in the event of an affirmative preliminary determination of 
circumvention.
    This notice is published in accordance with section 781(b) of the 
Tariff Act (19 U.S.C. 1677j(b)) and 19 CFR 353.29.

    Dated: October 21, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-26887 Filed 10-28-94; 8:45 am]
BILLING CODE 3510-DS-P