[Federal Register Volume 60, Number 22 (Thursday, February 2, 1995)]
[Notices]
[Pages 6515-6516]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2617]



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DEPARTMENT OF COMMERCE
[A-475-816]


Notice of Preliminary Determination of Sales at Less Than Fair 
Value: Oil Country Tubular Goods From Italy

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

EFFECTIVE DATE: February 2, 1995.

FOR FURTHER INFORMATION CONTACT: Bill Crow or Lisa Girardi, 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) 
482-0116 or (202) 482-4105, respectively.

Preliminary Determination

    We preliminarily determine that oil country tubular goods (OCTG) 
from Italy 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 July 1994, the Department requested information regarding 
manufacturers or exporters of the subject merchandise from the U.S. 
Embassy in Rome. The Embassy informed the Department that Dalmine 
S.p.A. (Dalmine) and Acciaierie Tubificio Arvedi S.p.A. (Arvedi) were 
the main exporters of the subject merchandise.
    On August 26, 1994, based on statements from the petitioners and 
information from Metal Bulletin Books, Ltd., Iron and Steel Works of 
the World (10th ed. 1991), the Department issued a full antidumping 
questionnaire to Dalmine, and antidumping surveys to five other 
potential respondents: Alessio Tubi S.p.A., Tubimar Ancona S.p.A., Seta 
Tubi Srl, Arvedi, and General Sider Europa S.p.A. (General Sider). On 
September 8, 1994, we received a response from Tubimar Ancona S.p.A. 
stating that it did not export the subject merchandise during the POI. 
On September 13, 1994, we received a similar response from Alessio Tubi 
S.p.A. and a response from Seta Tubi Srl that it is no longer in 
existence. On September 22, 1994, we received volume and value 
information from Arvedi. We did not receive any response from General 
Sider, although we confirmed with the express delivery service that 
General Sider had received our survey on August 30, 1994 (see, the 
September 30, 1994, memorandum from Krysten Jenci to the file). To 
ensure that it understood our request for information, we sent General 
Sider another survey, containing additional explanation, on October 7, 
1994. We confirmed with the express delivery service that General Sider 
received the survey on October 11, 1994 (see, the October 20, 1994, 
memorandum from Richard W. Moreland to Barbara R. Stafford).
    On October 7, 1994, Arvedi notified the Department that it would 
not participate in the investigation. On October 20, 1994, after the 
Department had still not received a response from General Sider, we 
selected Dalmine, Arvedi, and General Sider as mandatory respondents in 
this investigation. Based on information on the record, the Department 
believes that these three companies account for at least 60 percent of 
exports of OCTG from Italy during the period of investigation (see, the 
October 3, 1994, memorandum from David L. Binder to Richard W. Moreland 
and the October 20, 1994, memorandum from Richard W. Moreland to 
Barbara R. Stafford).
    On September 26, 1994, Dalmine submitted its response to section A 
of our August 26, 1994, questionnaire. In this response, Dalmine 
claimed that its home market was not viable, and that it should report 
third country sales data as a basis for foreign market value (FMV). In 
October 1994, Dalmine and the petitioners submitted comments on the 
home market viability issue.
    On November 4, 1994, the Department determined that the home market 
was viable, and instructed Dalmine to report home market sales (see 
November 4, 1994 memorandum from Richard W. Moreland to Barbara R. 
Stafford). As a result of this decision, on November 30, 1994, Dalmine 
informed the Department that it would no longer participate in this 
investigation.
    On November 10, 1994, North Star Steel Ohio (a division of North 
Star Steel Company) (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 30, 
1994).

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 

[[Page 6516]]
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.

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, Dalmine and Arvedi chose not to participate in this 
investigation, and General Sider did not 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. If the Department deems a respondent 
to be non-cooperative, that respondent's preliminary margin for the 
relevant class or kind of merchandise is the higher of either (1) The 
highest margin in the petition, or (2) the highest calculated margin of 
any respondent (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 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).)
    In the present case, the mandatory respondents have refused to 
cooperate with the Department's investigation. Therefore, in accordance 
with our standard practice, the Department has assigned the highest 
margin in the petition to all respondents.

Suspension of Liquidation

    In accordance with section 733(d)(1) (19 U.S.C. 1673b(d)(1)) of the 
Act, we are directing the Customs Service to suspend liquidation of all 
entries of OCTG from Italy, 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.

------------------------------------------------------------------------
                                                              Weighted- 
                                                               average  
               Manufacturer/producer/exporter                   margin  
                                                               percent  
------------------------------------------------------------------------
Dalmine S.p.A..............................................        49.78
Acciaierie Tubificio Arvedi S.p.A..........................        49.78
General Sider Europa S.p.A.................................        49.78
All others.................................................        49.78
------------------------------------------------------------------------

ITC Notification

    In accordance with section 733(f) (19 U.S.C. 1673b(f)) of the Act, 
we have notified the ITC of our preliminary 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 March 1, 1995, and 
rebuttal briefs by no later than March 8, 1995. 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 March 
10, 1995, at 10:00 a.m. at the U.S. Department of Commerce, Room 3708, 
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 26, 1995.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 95-2617 Filed 2-1-95; 8:45 am]
BILLING CODE 3510-DS-P