[Federal Register Volume 60, Number 36 (Thursday, February 23, 1995)]
[Notices]
[Pages 10064-10065]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4457]
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DEPARTMENT OF COMMERCE
[A-583-815]
Notice of Amended Final Determination and Antidumping Duty Order:
Certain Welded Stainless Steel Pipe From the Republic of Korea
Agency: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: February 23, 1995.
FOR FURTHER INFORMATION CONTACT: John Beck, Office of Antidumping Duty
Investigations, Import Administration, U.S. Department of Commerce,
14th Street and Constitution Avenue, N.W., Washington, D.C. 20230;
telephone (202) 482-3464.
Scope of Order
The merchandise subject to this amended final determination and
antidumping duty order is welded austenitic stainless steel pipe (WSSP)
that meets the standards and specifications set forth by the American
Society for Testing and Materials (ASTM) for the welded form of
chromium-nickel pipe designated ASTM A-312. The merchandise covered by
the scope of the investigation also includes austenitic welded
stainless steel pipes made according to the standards of other nations
which are comparable to ASTM A-312.
WSSP is produced by forming stainless steel flat-rolled products
into a tubular configuration and welding along the seam. WSSP is a
commodity product generally used as a conduit to transmit liquids or
gases. Major applications for WSSP include, but are not limited to,
digester lines, blow lines, pharmaceutical lines, petrochemical stock
lines, brewery process and transport lines, general food processing
lines, automotive paint lines and paper process machines.
Imports of WSSP are currently classifiable under the following
HTSUS subheadings: 7306.40.1000, 7306.40.5005, 7306.40.5015,
7306.40.5040, 7306.40.5065, and 7306.40.5085. Although these
subheadings include both pipes and tubes, the scope of this
investigation is limited to welded austenitic stainless steel pipes.
Although the HTSUS subheadings are provided for convenience and customs
purposes, our written description of the scope of this investigation is
dispositive.
Background
On November 4, 1992, the Department of Commerce made its final
determination that certain WSSP from the Republic of Korea (Korea) were
being sold at less than fair value (57 FR 53693, November 12, 1992).
On October 7, 1993, the CIT, in Federal-Mogul Corp. and the
Torrington Co. v. United States, 834 F. Supp. 1391 (CIT 1993) (Federal-
Mogul), rejected the Department's methodology for calculating an
addition to United States price (USP) under section 772(d)(1)(C) of the
Tariff Act of 1930, as amended (the Act), to account for taxes that the
exporting country would have assessed on the merchandise had it been
sold in the home market. The CIT held that the addition to USP under
section 772(d)(1)(C) of the Act should be the result of applying the
foreign market tax rate to the price of the United States merchandise
at the same point in the chain of commerce that the foreign market tax
was applied to foreign market sales. Federal-Mogul, 834 F. Supp. at
1397.
On November 18, 1993, the CIT, in Avesta Sheffield, Inc., et al. v.
United States, Slip Op. 93-217, Court No. 93-01-00062 remanded the
final determination of WSSP from Korea to the Department for
recalculation. In Avesta, the CIT remanded the Department's final
determination to recalculate foreign market value (FMV) with no
circumstance of sale adjustment for value added tax and to reconsider
the Department's VAT U.S. price methodology for Sammi Metal Products
Co., Ltd. and Pusan Steel Pipe Co., Ltd. (Slip Op. 93-217 at 17).
Final Remand Results
In accordance with the Avesta and Federal-Mogul decisions, we
conformed our tax methodology to the instructions of the CIT, and
adjusted U.S. price for tax by multiplying the Korean tax rate by the
price of the U.S. merchandise at the point in the U.S. chain of
commerce that is analogous to the point in the Korean chain of commerce
at which the Korean government applies the consumption tax.
In this investigation, the tax levied on the subject merchandise in
Korea is 10 percent. We calculated the appropriate tax adjustment to be
10 percent of the price of the U.S. merchandise reflected on the
invoice at the time of sale (which, in this case, is the point in the
U.S. chain of commerce that is analogous to the point in the Korean
market chain of commerce at which the Korean government applies the
consumption tax). We then added this amount to the U.S. price. We also
calculated the amount of the tax adjustment that was due solely to the
inclusion of expenses in the original tax base that are later deducted
from the price to calculate USP (i.e., 10 percent of the sum of any
adjustments, expenses and charges that were deducted from the price of
the U.S. merchandise). We reduced this tax adjustment to take into
account the adjustment to U.S. price for duty drawback (i.e., 10
percent of the duty drawback amount that was excluded from the tax
base). We deducted this amount after all other additions and deductions
had been made. By making this additional tax adjustment, we avoid a
distortion that would cause the creation of a dumping margin even when
pre-tax dumping is zero.
We included in FMV the amount of the consumption tax collected in
the Korean home market. We also calculated the amount of the tax that
was due solely to the inclusion of expenses in the original tax base
that are later deducted from home market price to calculate FMV (i.e.,
10 percent of the sum of any adjustments, expenses, charges, and
offsets that were deducted from the home market price). We deducted
this amount after all other additions and deductions were made. By
making this additional tax adjustment, we avoid a distortion that would
cause the creation of a dumping margin even when pre-tax dumping is
zero. In addition, we calculated a re-adjustment of the amount of tax
to take into account the amount of packing expenses added to FMV (i.e.,
10 percent of the packing expenses). [[Page 10065]]
Final Results of Redetermination
On June 14, 1994, the CIT affirmed our redetermination (Slip Op.
94-99). In accordance with that affirmation, we are amending the final
determination of sales at less than fair value and antidumping duty
order. In accordance with section 736 of the Act, the Department will
direct Customs to require, on entries of WSSP from Korea entered, or
withdrawn, from warehouse for consumption on or after the date of this
notice, at the same time as importers would normally deposit estimated
duties, the following cash deposits:
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Margin
Manufacturer/producer/exporter percentage
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Pusan Steel Pipe Co., Ltd................................... 2.67
Sammi Metal Products Co., Ltd............................... 7.92
All Others.................................................. 7.00
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If entries of WSSP from Korea entered on or after June 25, 1994,
the effective date of the CIT's decision, are liquidated without review
pursuant to 19 CFR 353.22(e), the Department will direct Customs to
liquidate such entries in accordance with these rates.
This notice constitutes the amended final determination and
antidumping duty order with respect to welded stainless steel pipe from
the Republic of Korea. Interested parties may contact the Central
Records Unit, Room B-099 of the Main Commerce Building, for copies of
an updated list of antidumping duty orders currently in effect.
This amended final determination and order is published in
accordance with sections 735(a) and 736(a) of the Act and 19 CFR
353.20(a)(4) and 353.21.
Dated: February 16, 1995.
Barbara R. Stafford,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 95-4457 Filed 2-22-95; 8:45 am]
BILLING CODE 3510-DS-P