[Federal Register Volume 61, Number 140 (Friday, July 19, 1996)]
[Notices]
[Pages 37720-37721]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18426]


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DEPARTMENT OF COMMERCE

International Trade Administration
[A-122-506]


Oil Country Tubular Goods From Canada; Preliminary Results of 
Antidumping Duty Administrative Review and Intent To Revoke Order (in 
Part)

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

ACTION: Notice of Preliminary Results of Antidumping Duty 
Administrative Review and Intent to Revoke Order (in Part).

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SUMMARY: In response to a request from the respondent, IPSCO Inc. 
(IPSCO), the Department of Commerce (the Department) is conducting an 
administrative review of the antidumping duty order on oil country 
tubular goods (OCTG) from Canada. This review covers one manufacturer/
exporter, IPSCO, and the period June 1, 1994 through May 31, 1995.
    We preliminarily determine the dumping margin for IPSCO to be zero 
percent during the period June 1, 1994, through May 31, 1995. In 
accordance with section 353.25 of the Department's regulations, we 
intend to revoke the antidumping duty order with respect to IPSCO 
because we have reason to believe that IPSCO has sold the merchandise 
at not less than normal value (NV) for a period of at least three 
consecutive years and is not likely to sell the subject merchandise at 
less than NV in the future. Interested parties are invited to comment 
on these preliminary results. Parties who submit argument in this 
proceeding are requested to submit with the argument: (1) a statement 
of the issue; and (2) a brief summary of the argument.

EFFECTIVE DATE: July 19, 1996.

FOR FURTHER INFORMATION CONTACT: David Genovese or Zev Primor, Office 
of Antidumping Compliance, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, N.W., Washington, D.C. 20230; telephone (202) 482-
5253.

SUPPLEMENTARY INFORMATION:

The Applicable Statute

    Unless otherwise indicated, all citations to the statute are 
references to the provisions effective January 1, 1995, the effective 
date of the amendments made to the Tariff Act of 1930 (the Act) by the 
Uruguay Rounds Agreements Act (URAA). In addition, unless otherwise 
indicated, all citations to the Department's regulations are to the 
current regulations, as amended by the interim regulations published in 
the Federal Register on May 11, 1995 (60 FR 25130).

Background

    The Department published an antidumping duty order on OCTG from 
Canada on June 16, 1986 (51 FR 21782) and an amended order on August 
19, 1986 (51 FR 29579). The Department published a notice of 
``Opportunity To Request an Administrative Review'' of the antidumping 
duty order for the 1994/1995 review period on June 6, 1995 (60 FR 
29821). On June 21, 1995, IPSCO requested that the Department conduct 
an administrative review of the antidumping duty order on OCTG from 
Canada. We initiated the review on July 14, 1995 (60 FR 36260).
    Due to the federal government shutdown and the necessity for 
verification, the Department extended the time limits for the deadlines 
for the preliminary and final results of review. See Antidumping Duty 
Administrative Reviews; Time Limits, 61 FR 9676 (March 11, 1996).
    The Department is now conducting this administrative review in 
accordance with section 751 of the Act.

Intent To Revoke

    In its submission of June 21, 1995, IPSCO requested, pursuant to 19 
CFR 353.25(b), revocation of the order with respect to its sales of 
OCTG. In accordance with 19 CFR 353.25(b), IPSCO submitted: (1) a 
certification that it sold the subject merchandise at not less than 
normal value (NV) during the relevant review period, and that in the 
future it will not sell the subject merchandise at less than NV; and 
(2) a statement that it agrees to the immediate reinstatement of the 
order, as long as any producer or reseller is subject to the order, if 
the Department concludes that IPSCO sold the subject merchandise at 
less than NV subsequent to the revocation. Based on the preliminary 
results in this review and the final results of the two preceding 
reviews, IPSCO has demonstrated three consecutive years of sales at not 
less than NV.
    If the final results of this review demonstrate that IPSCO sold the 
merchandise at not less than NV, and if the Department determines that 
it is not likely that IPSCO will sell the subject merchandise at less 
than NV in the future, we intend to revoke the order with respect to 
merchandise produced and exported by IPSCO.

Scope of the Review

    The products covered by this review include shipments of OCTG from 
Canada. This includes American Petroleum Institute (API) specification 
OCTG and all other pipe with the following characteristics except 
entries which the Department determined through its end-use 
certification procedure were not used in OCTG applications: Length of 
at least 16 feet; outside diameter of standard sizes published in the 
API or proprietary specifications for OCTG with tolerances of plus \1/
8\ inch for diameters less than or equal to 8\5/8\ inches and plus \1/
4\ inch for diameters greater than 8\5/8\ inches, minimum wall 
thickness as identified for a given outer diameter as published

[[Page 37721]]

in the API or proprietary specifications for OCTG; a minimum of 40,000 
PSI yield strength and a minimum 60,000 PSI tensile strength; and if 
with seams, must be electric resistance welded. Furthermore, imports 
covered by this review include OCTG with non-standard size wall 
thickness greater than the minimum identified for a given outer 
diameter as published in the API or proprietary specifications for 
OCTG, with surface scabs or slivers, irregularly cut ends, ID or OD 
weld flash, or open seams; OCTG may be bent, flattened or oval, and may 
lack certification because the pipe has not been mechanically tested or 
has failed those tests.
    This merchandise is currently classifiable under the Harmonized 
Tariff Schedules (HTS) item numbers 7304.20, 7305.20, and 7306.20. The 
HTS item numbers are provided for convenience and U.S. Customs 
purposes. The written description remains dispositive.

Verification

    In accordance with section 353.25(c)(2)(ii) of the Department's 
regulations, we verified information provided by IPSCO using standard 
verification procedures, including the examination of relevant sales 
and financial records, and selection of original documentation 
containing relevant information. Our verification results are outlined 
in the public version of the verification report.

United States Price

    We used export price (EP) as the basis for U.S. price (USP), as 
defined in section 772(a) of the Act. IPSCO reported that EP was based 
on the delivered price to unaffiliated purchasers in the United States. 
We made deductions for freight from the plant to the customer, and U.S. 
duty and brokerage charges, in accordance with section 772(c)(2)(A) of 
the Act, because these expenses were incident to bringing the subject 
merchandise from the original place of shipment in the exporting 
country to the place of delivery in the United States. We also made a 
deduction for early payment discounts. No other adjustments to the EP 
were claimed or allowed.

Normal Value

    We based NV on the price which the foreign like product is first 
sold for consumption in the exporting country, in the usual commercial 
quantities and in the ordinary course of trade, and to the extent 
practicable, at the same level of trade as the export price, as defined 
by section 773(a)(1)(B)(i) of the Act. The NV price was reported on a 
Goods and Services Tax-exclusive basis. We reduced NV for home market 
credit expense, in accordance with section 773(a)(6)(C)(iii), due to 
differences in circumstances of sale. We also reduced NV by packing and 
freight costs incurred in the home market, in accordance with sections 
773(a)(6)(B)(i) and 773(a)(6)(B)(ii), respectively. In addition, we 
increased NV for U.S. packing costs and U.S. credit expenses, in 
accordance with sections 773(a)(6)(A) and 773(a)(6)(C)(iii) of the Act, 
respectively. No other adjustments were claimed or allowed.

Preliminary Results

    As a result of this review, we preliminarily determine that no 
dumping margins exist for IPSCO for the period June 1, 1994, through 
May 31, 1995.
    Parties to this proceeding may request disclosure within five days 
of publication of this notice and any interested party may request a 
hearing within 10 days of publication. Any hearing, if requested, will 
be held 44 days after the date of publication, or the first working day 
thereafter. Interested parties may submit case briefs and/or written 
comments no later than 30 days after the date of publication. Rebuttal 
briefs and rebuttals to written comments, limited to issues raised in 
such briefs or comments, may be filed no later than 37 days after the 
date of publication. The Department will publish a notice of the final 
results of the administrative review, which will include the results of 
its analysis of issues raised in any such written comments or at the 
hearing, within 120 days from the issuance of these preliminary 
results.
    The Department shall determine, and Customs shall assess, 
antidumping duties on all appropriate entries. Individual differences 
between USP and NV may vary from the percentages stated above. The 
Department will issue appraisement instructions directly to Customs. 
The final results of this review shall be the basis for the assessment 
of antidumping duties on entries of merchandise covered by this review 
and for future deposits of estimated duties.
    Furthermore, the following deposit requirements will be effective 
upon completion of the final results of this administrative review for 
all shipments of OCTG from Canada entered, or withdrawn from warehouse, 
for consumption on or after the publication date of the final results 
of this administrative review, as provided by section 751(a)(1) of the 
Act: (1) The cash deposit rate for IPSCO will be the rate established 
in the final results of this administrative review; (2) for merchandise 
exported by manufacturers or exporters not covered in this review but 
covered in the original less-than-fair-value (LTFV) investigation or a 
previous review, the cash deposit will continue to be the most recent 
rate published in the final determination or final results for which 
the manufacturer or exporter received a company-specific rate; (3) if 
the exporter is not a firm covered in this review, or the original 
investigation, but the manufacturer is, the cash deposit rate will be 
that established for the manufacturer of the merchandise in the final 
results of this review, or the LTFV investigation; and (4) if neither 
the exporter nor the manufacturer is a firm covered in this or any 
previous review, the cash deposit rate will be 16.65 percent, the 
``all-others'' rate established in the LTFV investigation.
    These deposit requirements, when imposed, shall remain in effect 
until publication of the final results of the next administrative 
review.
    This notice serves as a preliminary reminder to importers of their 
responsibility under 19 CFR 353.26(b) to file a certificate regarding 
the reimbursement of antidumping duties prior to liquidation of the 
relevant entries during this review period. Failure to comply with this 
requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    This administrative review and notice are in accordance with 
section 751(a)(1) of the Act.

    Dated: July 12, 1996.
Robert S. LaRussa,
Acting Assistant Secretary for Import Administration.
[FR Doc. 96-18426 Filed 7-18-96; 8:45 am]
BILLING CODE 3510-DS-P