[Federal Register Volume 60, Number 22 (Thursday, February 2, 1995)]
[Notices]
[Pages 6506-6507]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2613]



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DEPARTMENT OF COMMERCE
[A-588-835]


Preliminary Determination of Sales at Less Than Fair Value and 
Postponement of Final Determination: Oil Country Tubular Goods From 
Japan

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
EFFECTIVE DATE: February 2, 1995.

FOR FURTHER INFORMATION CONTACT: John Beck or Stuart Schaag, Office of 
Antidumping Investigations, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, N.W., Washington, D.C., 20230; telephone (202) 
482-3464 or (202) 482-0192, respectively.

Preliminary Determination

    We preliminarily determine that oil country tubular goods (OCTG) 
from Japan are being, or are likely to be, sold in the United States at 
less than fair value, as provided in section 733(b) of the Tariff Act 
of 1930, as amended (the Act) (19 U.S.C. 1673b).

Case History

    Since the initiation of this investigation on July 20, 1994 (59 FR 
37962, July 26, 1994), the following events have occurred.
    On August 15, 1994, the U.S. International Trade Commission (ITC) 
issued an affirmative preliminary determination.
    In August 1994, the Department requested information regarding 
manufacturers or exporters of the subject merchandise from the Japanese 
Ministry of International Trade and Industry (MITI). MITI informed the 
Department that Nippon Steel Corporation (Nippon) and Sumitomo Metal 
Industries, Ltd. (Sumitomo) were the main exporters of the subject 
merchandise, accounting for over 60 percent of Japanese exports to the 
United States. On August 30, 1994, the Department selected Nippon and 
Sumitomo as the mandatory respondents in this investigation. These two 
companies account for at least 60 percent of exports of OCTG from Japan 
during the period of investigation.
    On August 31, 1994, the Import Administration's attache in Tokyo 
informed us that Nippon and Sumitomo requested a questionnaire 
presentation. This questionnaire presentation took place in September 
1994, at the MITI office in Tokyo.
    On September 21, 1994, Nippon and Sumitomo informed the Department 
that, due to the complex and burdensome requirements of the 
Department's questionnaire, they were withdrawing from the 
investigation.
    On November 10, 1994, Koppel Steel Corporation and U.S. Steel Group 
(a unit of USX Corporation) (the petitioners), timely requested that 
the Department postpone the preliminary determination, in accordance 
with section 733(c)(1) of the Act (19 U.S.C. 1673b(c)(1)), and 19 CFR 
353.15(c). We did so on November 15, 1994 (59 FR 60130, November 22, 
1994).
    On January 11, 1995, in accordance with 19 CFR 353.20(b), Sumitomo 
requested that, due to the complex legal and factual issues in this 
investigation, the Department postpone the final determination. Nippon 
made a similar request on January 13, 1995.

Scope of Investigation

    For purposes of this investigation, OCTG are hollow steel products 
of circular cross-section, including oil well casing, tubing, and drill 
pipe, 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, tubing, or drill pipe 
containing 10.5 percent or more of chromium. The OCTG subject to this 
investigation are currently classified in the Harmonized Tariff 
Schedule of the United States (HTSUS) under item numbers:

7304.20.10.00, 7304.20.10.10, 7304.20.10.20, 7304.20.10.30, 
7304.20.10.40, 7304.20.10.50, 7304.20.10.60, 7304.20.10.80, 
7304.20.20.00, 7304.20.20.10, 7304.20.20.20, 7304.20.20.30, 
7304.20.20.40, 7304.20.20.50, 7304.20.20.60, 7304.20.20.80, 
7304.20.30.00, 7304.20.30.10, 7304.20.30.20, 7304.20.30.30, 
7304.20.30.40, 7304.20.30.50, 7304.20.30.60, 7304.20.30.80, 
7304.20.40.00, 7304.20.40.10, 7304.20.40.20, 7304.20.40.30, 
7304.20.40.40, 7304.20.40.50, 7304.20.40.60, 7304.20.40.80, 
7304.20.50.10, 7304.20.50.15, 7304.20.50.30, 7304.20.50.45, 
7304.20.50.50, 7304.20.50.60, 7304.20.50.75, 7304.20.60.10, 
7304.20.60.15, 7304.20.60.30, 7304.20.60.45, 7304.20.60.50, 
7304.20.60.60, 7304.20.60.75, 7304.20.70.00, 7304.20.80.00, 
7304.20.80.30, 7304.20.80.45, 7304.20.80.60, 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
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, our written description of the scope of this 
investigation is dispositive.

Period of Investigation

    The period of investigation (POI) is January 1, 1994, to June 30, 
1994.

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the Statute and to the 
Department's regulations are in reference to the provisions as they 
existed on December 31, 1994.

[[Page 6507]]


Best Information Available

    We have determined, in accordance with section 776(c) of the Act 
(19 U.S.C. 1677e(c)), that the use of best information available (BIA) 
is appropriate for sales of the subject merchandise in this 
investigation. In deciding whether to use BIA, section 776(c) provides 
that the Department shall use BIA when a respondent refuses to produce 
information requested in a timely manner and in the form required. In 
this case, exporters of OCTG from Japan declined to respond to our 
requests for information.
    In determining what to use as BIA, the Department follows a two-
tiered methodology, whereby the Department normally assigns lower 
margins to those respondents who cooperate in an investigation, and 
margins based on more adverse assumptions for those respondents who do 
not cooperate in an investigation. Given that neither Nippon nor 
Sumitomo responded to the Department's questionnaire, we find that they 
have not cooperated in this investigation. In accordance with our BIA 
methodology for uncooperative respondents, we have assigned these non-
responsive companies the highest margin alleged in the petition (see, 
Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts 
Thereof From the Federal Republic of Germany: Final Determination of 
Sales at Less Than Fair Value (54 FR 18992, 19033, May 3, 1989)).
    The Department's two-tier methodology for assigning BIA based on 
the degree of the respondents' cooperation has been upheld by the U.S. 
Court of Appeals for the Federal Circuit (see Allied-Signal Aerospace 
Co. v. the United States, Slip Op. 93-1049 (Fed Cir. June 22, 1993); 
see also Krupp Stahl AG. et. al. v. the United States, Slip Op. 93-84 
(CIT May 26, 1993)).

Suspension of Liquidation

    In accordance with section 733(d)(1) of the Act (19 U.S.C. 
1673b(d)(1)), we are directing the Customs Service to suspend 
liquidation of all entries of OCTG from Japan, as defined in the 
``Scope of Investigation'' section of this notice, 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.

------------------------------------------------------------------------
                                                           Manufacturer/
                                                             Producer/  
                     Weighted-Average                         Exporter  
                                                               Margin   
                                                              Percent   
------------------------------------------------------------------------
Nippon Steel Corporation.................................         44.20 
Sumitomo Metal Industries, Ltd...........................         44.20 
All Others...............................................         44.20 
------------------------------------------------------------------------

Postponement of Final Determination

    As stated above, both Sumitomo and Nippon requested that the 
Department postpone the final determination. We find no compelling 
reason to deny these requests. Accordingly, we are postponing the date 
of the final determination until not later than 135 days after the date 
of publication of this notice in the Federal Register.

ITC Notification

    In accordance with section 733(f) of the Act (19 U.S.C. 1673b(f)), 
we have notified the ITC of our preliminary 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, case briefs or other written 
comments in at least ten copies must be submitted to the Assistant 
Secretary for Import Administration by no later than April 21, 1995, 
and rebuttal briefs by no later that April 28, 1995. We request that 
parties in this case provide an executive summary of no more than two 
pages in conjunction with case briefs on the major issues to be 
addressed. Further, briefs should contain a table of authorities. 
Citations to Commerce determinations and court decisions should include 
the page number where cited information appears. In preparing the 
briefs, please begin each issue on a separate page. In accordance with 
19 CFR 353.38(b), we will hold a public hearing, if requested, to give 
interested parties an opportunity to comment on arguments raised in 
case or rebuttal briefs. Tentatively, the hearing will be held on May 
3, 1995, at 10:00 a.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.
    Interested parties who wish to request a hearing 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 in the Federal Register. 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(b), oral presentations will be limited 
to issues raised in the briefs.
    This notice is published pursuant to section 733(f) of the Act (19 
U.S.C. 1673b(f)) and 19 CFR 353.15(a)(4).

    Dated: January 25, 1995.
Paul L. Joffe,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 95-2613 Filed 2-1-95; 8:45 am]
BILLING CODE 3510-DS-P