[Federal Register Volume 62, Number 115 (Monday, June 16, 1997)]
[Notices]
[Pages 32584-32585]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-15753]


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DEPARTMENT OF COMMERCE

International Trade Administration
[A-588-840]


Notice of Antidumping Duty Order and Amended Final Determination 
of Sales at Less Than Fair Value: Engineered Process Gas Turbo-
Compressor Systems, Whether Assembled or Unassembled, and Whether 
Complete or Incomplete, From Japan

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

EFFECTIVE DATE: June 16, 1997.

FOR FURTHER INFORMATION CONTACT: David Genovese, Office of Antidumping/
Countervailing Duty Enforcement, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, N.W., Washington, D.C. 20230; telephone (202) 482-
4697.

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 Round 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).

Amended Final Determination

    In accordance with section 735(a) of the Act, on April 24, 1997, 
the Department made its final determination that engineered process gas 
turbo-compressor systems (EPGTS), whether assembled or unassembled, and 
whether complete or incomplete from Japan, are being, or are likely to 
be, sold in the United States at less than fair value (62 FR 24394, May 
5, 1997). Subsequent to the final determination, on May 5, 1997, we 
received a submission, timely filed pursuant to 19 CFR 353.28(b), from 
the respondent, Mitsubishi Heavy Industries Ltd. (MHI), alleging 
ministerial errors in the Department's final determination. No 
ministerial error allegations were submitted by the petitioner. We 
received comments from the petitioner rebutting MHI's allegations on 
May 9, 1997.
    We have determined, in accordance with 19 CFR 353.28(d), that 
ministerial errors were made in our margin calculations for MHI. 
Specifically, the Department made three ministerial errors in its final 
determination with respect to the following issues: 1) the indirect 
selling expenses incurred by Mitsubishi Corporation (MC); 2) the U.S. 
imputed credit expense; and 3) the calculation of the constructed value 
(CV) profit rate. For a detailed discussion of the above-cited 
ministerial errors and the Department's analysis, see Memorandum for 
Jeffrey Bialos from Irene Darzenta, et al., dated May 26, 1997. In 
accordance with 19 CFR 353.28(c), we are amending the final 
determination of the antidumping duty investigation of EPGTS from Japan 
to correct these ministerial errors. The revised final weighted-average 
dumping margins are as follows:

                                                                        
------------------------------------------------------------------------
                                                               Weighted 
                                                                average 
                           Company                              margin  
                                                              percentage
------------------------------------------------------------------------
Mitsubishi Heavy Industries, Ltd............................       38.32
All-Others..................................................       38.32
------------------------------------------------------------------------

Scope of Order

    The products covered by this investigation are turbo-compressor 
systems (i.e., one or more ``assemblies'' or ``trains'') which are 
comprised of various configurations of process gas compressors, drivers 
(i.e., steam turbines or motor-gear systems designed to drive such 
compressors), and auxiliary control systems and lubrication systems for 
use with such compressors and compressor drivers, whether assembled or 
unassembled, and whether complete or incomplete. One or more of these 
turbo-compressor assemblies or trains, may be combined. The systems 
covered are only those used in the petrochemical and fertilizer 
industries, in the production of ethylene, propylene, ammonia, urea, 
methanol, refinery and other petrochemical products. This order does 
not encompass turbo-compressor systems incorporating gas turbine 
drivers, which are typically used in pipeline transmission, injection, 
gas processing, and liquid natural gas service.
    The scope of this order excludes spare parts that are sold 
separately from a contract for an EPGTS. Parts or components imported 
for the revamp or repair of an existing EPGTS, or otherwise not 
included in the original contract of sale for the EPGTS of which they 
are intended to be a part, are expressly excluded from the scope.
    Compressors are machines used to increase the pressure of a gas or 
vapor, or mixture of gases and vapors. Compressors are commonly 
classified as reciprocating, rotary, jet, centrifugal, or axial 
(classified by the mechanical means of compressing the fluid), or as 
positive-displacement or dynamic-type (classified by the manner in 
which the mechanical elements act on the fluid to be compressed). 
Subject compressors include only centrifugal compressors engineered for 
process gas compression, e.g., ammonia, urea, methanol, propylene, or 
ethylene service.
    Turbines are classified (1) as steam or gas; (2) by mechanical 
arrangement as single-casing, multiple shaft, or tandem-compound (more 
than one casing with a single shaft); (3) by flow direction (axial or 
radial); (4) by steam cycle, whether condensing, non-condensing, 
automatic extraction, or reheat; and (5) by number of exhaust flows of 
a condensing unit. Steam and gas turbines are used in various 
applications. Only steam turbines dedicated for a turbo-compressor 
system are subject to this order.
    A motor and gear box may be used as a compressor driver in lieu of 
a steam turbine. A control system is used to monitor and control the 
operation of a turbo-compressor system. A lubrication system is 
engineered to support a subject compressor and steam turbine (or motor/
gear box).
    A typical EPGTS consists of one or more compressors driven by a 
turbine (or in some cases a motor drive). A compressor is usually 
installed on a base plate and the drive is installed on a separate base 
plate. The turbine (or motor drive) base plate will typically also 
include any governing or safety systems, couplings, and a gearbox, if 
any. The lube and oil seal systems for the turbine and compressor(s) 
are usually mounted on a separate base plate.

[[Page 32585]]

    The scope of this order covers both assembled and unassembled EPGTS 
from Japan. Because of their large size, EPGTS and their constituent 
parts are typically shipped partially assembled (or unassembled) to 
their destination where they are assembled and/or completed prior to 
their commissioning.
    The scope of this order also covers ``complete and incomplete'' 
EPGTS from Japan. A ``complete'' EPGTS covered by the scope consists of 
all of the components of an EPGTS (i.e., process gas compressor(s), 
driver(s), auxiliary control system(s) and lubrication system(s)) and 
their constituent parts, which are imported from Japan in assembled or 
unassembled form, individually or in combination, pursuant to a 
contract for a complete EPGTS in the United States. An ``incomplete'' 
EPGTS covered by the scope of this order consists of parts of an EPGTS 
imported from Japan pursuant to a contract for a complete EPGTS in the 
United States, which taken altogether, constitute at least 50 percent 
of the cost of manufacture of the complete EPGTS of which they are a 
part. (See Comment 1 of the ``Interested Party Comments'' section of 
the final determination notice (62 FR 24394, May 5, 1997) for a 
discussion on the definition of ``incomplete EPGTS'' covered by the 
scope of this order and the methodology the Department will use to 
calculate the cost of manufacture.)
    EPGTS imported from Japan as an assembly or train (i.e., including 
turbines, compressors, motor and gear boxes, control systems and 
lubrication systems, and auxiliary equipment) may be classified under 
Harmonized Tariff Schedule of the United States (``HTSUS'') subheading 
8414.80.2015, which provides for centrifugal and axial compressors. The 
Customs Service may view the combination of turbine driver and 
compressor as ``more than'' a compressor and, as a result, classify the 
combination under HTSUS subheading 8419.60.5000.
    Compressors for use in EPGTS, if imported separately, may also be 
classified under HTSUS subheading 8414.80.2015. Parts for such 
compressors, including rotors or impellers and housing, are classified 
under HTSUS subheading 8414.90.4045 and 8414.90.4055.
    Steam turbines for use in EPGTS, if imported separately, may be 
classified under the following HTSUS subheadings: 8406.81.1020 (steam 
turbines, other than marine turbines, stationary, condensing type, of 
an output exceeding 40 MW); 8406.82.1010 (steam turbines, other than 
marine turbines, stationary, condensing type, exceeding 7,460 Kw); 
8406.82.1020 (steam turbines, other than marine turbines, stationary, 
condensing type, exceeding 7,460 Kw, but not exceeding 40 MW); 
8406.82.1050 (steam turbines, other than marine turbines, stationary, 
other than condensing type, not exceeding 7,460 Kw); 8406.82.1070 
(steam turbines, other than marine turbines, stationary, other than 
condensing type, exceeding 7,460 Kw, but not exceeding 40 MW). Parts 
for such turbines are classified under HTSUS subheading 8406.90.2000 
through 8406.90.4580.
    Control and other auxiliary systems may be classified under HTSUS 
9032.89.6030 (``automatic regulating or controlling instruments and 
apparatus: complete process control systems'').
    Motor and gear box entries may be classified under HTSUS subheading 
8501.53.4080, 8501.53.6000, 8501.53.8040, or 8501.53.8060. Gear speed 
changers used to match the speed of an electric motor to the shaft 
speed of a driven compressor, would be classified under HTSUS 
subheading 8483.40.5010.
    Lubrication systems may be classified under HTSUS subheading 
8414.90.4075.
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, our written description of the scope of this order is 
dispositive.

Antidumping Duty Order

    On June 10, 1997, the International Trade Commission (ITC) notified 
the Department of its final determination, pursuant to section 
735(b)(1)(A)(i) of the Act, that an industry in the United States is 
materially injured by reason of imports of the subject merchandise from 
Japan.
    In accordance with section 736(a)(1) of the Act, the Department 
will direct Customs officers to assess, upon further advice by the 
administering authority, antidumping duties equal to the amount by 
which the normal value of the merchandise exceeds the constructed 
export price of the merchandise for all entries of EPGTS from Japan. 
These antidumping duties will be assessed on all unliquidated entries 
of EPGTS from Japan entered, or withdrawn from warehouse, for 
consumption on or after December 10, 1996, the date on which the 
Department published its preliminary determination in the Federal 
Register (61 FR 65013). On or after the date of publication of this 
notice in the Federal Register, Customs officers must require, at the 
same time as importers would normally deposit estimated duties on this 
merchandise, a cash deposit equal to the estimated weighted-average 
antidumping duty margins as noted below. The ``All Others'' rate 
applies to all exporters of EPGTS not specifically listed below.
    The ad valorem weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                                Revised 
               Manufacturer/producer/exporter                   margin  
                                                              percentage
------------------------------------------------------------------------
Mitsubishi Heavy Industries/Mitsubishi Corporation..........       38.32
All Others..................................................       38.32
------------------------------------------------------------------------

    This notice constitutes the antidumping duty order with respect to 
EPGTS from Japan, pursuant to section 736(a) of the Act. 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 order is published pursuant to section 736(a) of the Act and 
19 CFR 353.21.

    Dated: June 10, 1997.
Robert S. LaRussa,
Acting Assistant Secretary for Import Administration.
[FR Doc. 97-15753 Filed 6-13-97; 8:45 am]
BILLING CODE 3510-DS-P