[Federal Register Volume 60, Number 38 (Monday, February 27, 1995)]
[Notices]
[Pages 10550-10551]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4720]



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DEPARTMENT OF COMMERCE
(A-557-808)


Notice of Final 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: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Thomas McGinty, Office of 
Countervailing 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-
5055.

Final Determination

    The Department of Commerce (the Department) determines that 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 735 of the Tariff Act of 1930, as 
amended (the Act) (19 U.S.C. 1673d). The estimated margins are shown in 
the ``Suspension of Liquidation'' section of this notice.

Scope of Investigation

    The merchandise 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 accomodate 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 (POI) is September 1, 1994, through 
February 28, 1994.

Case History

    Since the announcement of the preliminary determination on 
September 27, 1994, the following events have occurred.
    On October 4, 1994, we published the notice of preliminary 
determination in the Federal Register (59 FR 50560). On October 20, 
1994, White & Case submitted a notice of appearance on behalf of the 
Government of Malaysia.
    On November 14, 1994, we published the postponement of final 
determination in the Federal Register (59 FR 56461).
    Petitioner was the only interested party to file a case brief in 
this investigation. Petitioner did so on January 23, 1995.

Best Information Available

    In accordance with section 776(c) of the Act, we have determined 
that the use of best information available (BIA) is appropriate for 
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. Given that MMCPNF did 
not respond to the Department's questionnaire, we find the company has 
not cooperated in this investigation.
    Our BIA methodology for uncooperative respondents is to assign the 
higher of the highest margin alleged in the petition or the highest 
rate calculated for another respondent. Accordingly, as BIA, we are 
assigning the highest margin among the margins alleged in the petition, 
adjusted for methodological errors as explained in the Department's 
initiation notice. See Final Determination of Sales at Less Than Fair 
Value: Antifriction Bearings (Other Than Tapered Roller Bearings) and 
Parts Thereof From the Federal Republic of Germany (54 FR 18992, 19033, 
May 3, 1989). The Department's methodology for assigning BIA has been 
upheld by the U.S. Court of Appeals of the Federal Circuit. (See Allied 
Signal Aerospace Co. v. United States, 996 F.2d 1185 (Fed. Cir. 1993)); 
see also Krupp Stahl, AG et al. v. United States, 822 F. Supp. 789 (CIT 
1993)). [[Page 10551]] 

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 August 12, 1994, letter 
requesting export shipment information, we 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 735(d)(1) of the Act (19 U.S.C. 
1673b(d)(1)), we are directing the U.S. Customs Service to continue to 
suspend liquidation of all entries of pipe fittings from Malaysia, as 
defined in the ``Scope of Investigation'' section of this notice, that 
are entered, or withdrawn from warehouse, for consumption on or after 
July 6, 1994, (i.e., 90 days prior to the date of publication of our 
preliminary determination in the Federal Register). The U.S. Customs 
Service shall require a cash deposit or posting of a bond equal to the 
estimated amount by which the foreign market value of the subject 
merchandise exceeds the United States price as shown below. The 
suspension of liquidation will remain in effect until further notice.

------------------------------------------------------------------------
                                                                Weighted
                                                                average 
                Manufacturer/Producer/Exporter                   margin 
                                                                percent 
------------------------------------------------------------------------
All Companies................................................     194.70
------------------------------------------------------------------------

International Trade Commission (ITC) Notification

    In accordance with section 735(d) of the Act, we have notified the 
ITC of our determination. As our final determination is affirmative, 
the ITC will determine whether imports of the subject merchandise are 
materially injuring, or threaten material injury to, the U.S. industry 
within 45 days.
    If the ITC determines that material injury or threat of material 
injury does not exist, the proceedings will be terminated and all 
securities posted as a result of the suspension of liquidation will be 
refunded or cancelled. However, if the ITC determines that such injury 
does exist, we will issue an antidumping duty order directing Customs 
officers to assess an antidumping duty on pipe fittings from Malaysia 
entered or withdrawn from warehouse, for consumption on or after the 
date of suspension of liquidation.

Notification to Interested Parties

    This notice serves as the only reminder to parties subject to 
administrative protective order (APO) in this investigation of their 
responsibility covering the return or destruction of proprietary 
information disclosed under APO in accordance with 19 CFR 353.34(d). 
Failure to comply is a violation of the APO.
    This determination is published pursuant to section 735(d) of the 
Act (19 U.S.C. 1673d(d)) and 19 CFR 353.20(a)(4).

    Dated: February 16, 1995.
Barbara R. Stafford
Acting Assistant Secretary for Import Administration.
[FR Doc. 95-4720 Filed 2-24-95; 8:45 am]
BILLING CODE 3510-DS-P