[Federal Register Volume 63, Number 58 (Thursday, March 26, 1998)]
[Notices]
[Pages 14679-14680]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7966]



[[Page 14679]]

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DEPARTMENT OF COMMERCE

International Trade Administration
[A-580-809]


Circular Welded Non-Alloy Steel Pipe From the Republic of Korea; 
Preliminary Results of Antidumping Duty Changed Circumstances Review

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

ACTION: Notice of preliminary results of antidumping duty changed 
circumstances review.

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SUMMARY: In response to a request by SeAH Steel Corporation submitted 
on March 27, 1997, the Department of Commerce is conducting a changed 
circumstances review to examine whether SeAH Steel Corporation is the 
successor to Pusan Steel Pipe. As a result of this review, the 
Department of Commerce preliminarily finds that for purposes of this 
proceeding, SeAH is the successor to Pusan Steel Pipe and should be 
assigned the antidumping deposit rate applicable to Pusan Steel Pipe.

EFFECTIVE DATE: March 26, 1998.

FOR FURTHER INFORMATION CONTACT: Marian Wells or Cynthia Thirumalai, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230; telephone (202) 482-6309 and 482-4087 
respectively.

The Applicable Statute and Regulations

    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 of Commerce's (the 
Department's) regulations refer to the regulations, codified at 19 CFR 
part 353, April 1997.

Background

    On July 15, 1997, we published a notice of initiation in this 
changed circumstances review (see Circular Welded Non-Alloy Steel Pipe 
from Korea: Notice of Extension of Time Limit for Preliminary Results, 
Partial Termination of Antidumping Duty Administrative Review and 
Initiation of Changed Circumstances Review (62 FR 37865)). SeAH Steel 
Corporation (SeAH) submitted information on its corporate structure and 
production facilities on January 22, 1998 in response to a request by 
the Department. We are conducting this review in accordance with 19 CFR 
353.22(f).

Scope of Review

    The merchandise subject to this review is circular welded non-alloy 
steel pipe and tube, of circular cross-section, not more than 406.4 mm 
(16 inches) in outside diameter, regardless of wall thickness, surface 
finish (black, galvanized, or painted), or end finish (plain end, 
beveled end, threaded, or threaded and coupled). These pipes and tubes 
are generally known as standard pipes and tubes and are intended for 
the low-pressure conveyance of water, steam, natural gas, air, and 
other liquids and gases in plumbing and heating systems, air-
conditioning units, automatic sprinkler systems, and other related 
uses. Standard pipe may also be used for light load-bearing 
applications, such as for fence tubing, and as structural pipe tubing 
used for framing and as support members for reconstruction or load-
bearing purposes in the construction, shipbuilding, trucking, farm 
equipment, and other related industries. Unfinished conduit pipe is 
also included in this order.
    All carbon-steel pipes and tubes within the physical description 
outlined above are included within the scope of this review except line 
pipe, oil-country tubular goods, boiler tubing, mechanical tubing, pipe 
and tube hollows for redraws, finished scaffolding, and finished 
conduit. In accordance with the Department's Final Negative 
Determination of Scope Inquiry on Certain Circular Welded Non-Alloy 
Steel Pipe and Tube from Brazil, the Republic of Korea, Mexico, and 
Venezuela (61 FR 11608, March 21, 1996), pipe certified to the API 5L 
line-pipe specification and pipe certified to both the API 5L line-pipe 
specifications and the less-stringent ASTM A-53 standard-pipe 
specifications, which falls within the physical parameters as outlined 
above, and entered as line pipe of a kind used for oil and gas 
pipelines is outside of the scope of the antidumping duty order.
    Imports of these products are currently classifiable under the 
following Harmonized Tariff Schedule (HTS) subheadings: 7306.30.10.00, 
7306.30.50.25, 7306.30.50.32, 7306.30.50.40, 7306.30.50.55, 
7306.30.50.85, and 7306.30.50.90. Although the HTS subheadings are 
provided for convenience and customs purposes, our written description 
of the scope of this proceeding is dispositive.

Successorship

    Pusan Steel Pipe (PSP) legally changed its name to SeAH on December 
28, 1995, effective as of January 1, 1996. In its request for this 
changed circumstances review, SeAH asked that it be found the successor 
to PSP insofar as the change was in name only while the legal structure 
of the company, its management and ownership were not affected.
    In determining whether one company is the successor to another for 
purposes of applying the antidumping duty law, the Department examines 
a number of factors including, but not limited to, changes in (1) 
management, (2) production facilities, (3) suppliers, and (4) customer 
base. (See, e.g., Brass Sheet and Strip from Canada; Final Results of 
Antidumping Duty Administrative Review (``Brass Sheet and Strip''), (57 
FR 7759, March 5, 1990), and Industrial Phosphoric Acid From Israel; 
Final Results of Antidumping Duty Changed Circumstances Review, (59 
6955, February 14, 1994).) While no one or several of these factors 
will necessarily provide a dispositive indication of succession, the 
Department will generally consider one company to be a successor to a 
second if its resulting operation is essentially the same as that of 
its predecessor (see, Brass Sheet and Strip). Thus, if the evidence 
demonstrates that, with respect to the production and sale of the 
subject merchandise, the new company operates as the same business 
entity, the Department will assign the new company the cash deposit 
rate of its predecessor.
    We have received information from SeAH that demonstrates that no 
major changes occurred with respect to PSP's management, plant 
facilities, customer base or suppliers. Specifically, we have received 
product brochures, promotional materials, organizational charts, and 
lists of managers names for 1995 and 1996. Therefore, the change in 
name from PSP to SeAH had no material effect on the operation of the 
company with respect to the production and sale of subject merchandise 
(i.e., standard pipe). Based on the foregoing, we preliminarily find 
that SeAH is the successor to PSP and, as such, is entitled to PSP's 
cash deposit rate with respect to entries of subject merchandise.

Preliminary Results of the Review

    We preliminarily conclude that SeAH is the successor to PSP. Should 
our final results remain the same as these preliminary results, we will 
instruct the U.S. Customs Service to assign SeAH

[[Page 14680]]

the antidumping duty cash deposit rate applicable to PSP of 6.00 
percent ad valorem.
    Parties to the proceeding may request disclosure within five days 
of the date of publication of this notice. Interested parties may also 
request a hearing within ten days of publication.
    If requested, a hearing will be held April 6, 1998. Interested 
parties may submit case briefs by March 27, 1998. Rebuttal briefs, 
which must be limited to issues raised in the case briefs, may be filed 
not later than April 1, 1998. The Department will issue a notice of the 
final results of the changed circumstance review, which will include 
the results of its analysis of issues raised in any such briefs and 
hearing. This changed circumstances review and notice are in accordance 
with 19 CFR 353.22(f).

    Dated: March 18, 1998.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
[FR Doc. 98-7966 Filed 3-25-98; 8:45 am]
BILLING CODE 3510-DS-P