[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