[Federal Register Volume 63, Number 177 (Monday, September 14, 1998)]
[Notices]
[Pages 49089-49090]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-24600]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration
[A-357-810]


Oil Country Tubular Goods From Argentina; Rescission of 
Antidumping Duty Administrative Review

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

ACTION: Notice of rescission of antidumping duty administrative review.

-----------------------------------------------------------------------

SUMMARY: On September 25, 1997, the Department of Commerce (the 
Department) published in the Federal Register a notice announcing the 
initiation of an administrative review of the antidumping duty order on 
oil country tubular goods (OCTG) from Argentina. This review covers the 
period August 1, 1996 through July 31, 1997. Based on information on 
the record of this review, all subject merchandise exported by Siderca 
to the United States during the period of review (POR) was entered into 
a foreign trade zone (FTZ) or under a temporary importation bond (TIB) 
and, therefore, was not subject to dumping duties. This review has now 
been rescinded as a result of our determination that there were no 
consumption entries into the United States during the POR.

EFFECTIVE DATE: September 14, 1998.

FOR FURTHER INFORMATION CONTACT:
Heather Osborne or John Kugelman, AD/CVD Enforcement Group III--Office 
8, Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue. NW., 
Washington, DC 20230; telephone (202) 482-3019 or (202) 482-0649, 
respectively.

Applicable Statute

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as amended (the Act) are references to the provisions effective 
January 1, 1995, the effective date of the amendments made to the Act 
by the Uruguay Round Agreements Act. In addition, unless otherwise 
indicated, all citations to the Departments regulations are references 
to the provisions codified at 19 CFR part 351 (62 FR 27296, may 19, 
1997).

Scope of the Review

    Oil country tubular goods are hollow steel products of circular 
cross-section, including oil well casing, tubing, and drill pipe, of 
iron (other than cast iron) or steel (both carbon and alloy), whether 
seamless or welded, whether or not conforming to American Petroleum 
Institute (API) or non-API specifications, whether finished or 
unfinished (including green tubes and limited service OCTG products). 
This scope does not cover casing, tubing, or drill pipe containing 10.5 
percent or more of chromium. The OCTG subject to this review are 
currently classified in the following Harmonized Tariff Schedule of the 
United States (HTSUS) subheadings: 7304.20.20, 7304.20.40, 7304.20.50, 
7304.20.60, 7304.20.80, 7304.39.00, 7304.51.50, 7304.20.70, 7304.59.60, 
7304.59.80, 7304.90.70, 7305.20.40, 7305.20.60, 7305.20.80, 7305.31.40, 
7305.31.60, 7305.39.10, 7305.39.50, 7305.90.10, 7305.90.50, 7306.20.20, 
7306.20.30, 7306.20.40, 7306.20.60, 7306.20.80, 7306.30.50, 7306.50.50, 
7306.60.70, and 7306.90.10. The HTS subheadings are provided for 
convenience and Customs purposes.

[[Page 49090]]

The written description remains dispositive.

Background

    We received requests for an administrative review of Siderca 
S.A.I.C., an Argentine producer and exporter of OCTG, and Siderca 
Corporation, an affiliated U.S. importer and reseller of such 
merchandise (collectively, Siderca). Petitions Lone Star Steel and 
IPSCO Tubulars, Inc. submitted a request for review on August 29, 1997, 
of the anitdumping duty order published in the Federal Register on 
August 11, 1995 (60 FR 41055). Petitioner North Star Steel of Ohio 
submitted a separate request for review on September 2, 1997. We 
initiated this review on September 25, 1997 (62 FR 50292). We received 
comments from Siderca and petitioners concerning whether Siderca made 
entries from consumption in the United States during the POR. 
Petitioners filed duty absorption requests on October 23, 1997 and 
October 26, 1997, respectively.

SUPPLEMENTARY INFORMATION: In its original submission Siderca claimed 
that ``it did not export, directly or indirectly, subject merchandise 
that was entered for consumption into the United States during the 
period of review.'' Siderca also claims that its U.S.A. affiliate, 
Siderca Corporation, did not import for consumption any subject 
merchandise during the POR.
    Petitioners subsequently claimed that publicly available import 
data from the Department's IM-145 database contradicted Siderca's 
claims that no subject merchandise was entered for consumption during 
the POR. Petitioners asserted that Siderca was the only exporter of 
Argentine OCTG to the United States, and in fact entered a substantial 
quantity of OCTG during the POR. Specifically, petitioners claimed that 
949.909 metric tons of Argentine OCTG were entered for consumption 
during the POR, and filed an affidavit claiming a sale was made from an 
FTZ to a U.S. company during the POR. Petitioners asked the Department 
to investigate these sales and to require Siderca to report all U.S. 
and home market sales of OCTG made during the POR.
    In response, Siderca indicated that it made no U.S. sales or 
consumption entries during the POR. Siderca claimed that all of its 
shipments to the United States were FTZ or TIB entries, and were 
destined for re-export. Siderca indicated it had no knowledge of its 
customers having entered covered merchandise into the United States for 
consumption. Siderca argued that if any such entries occurred, they 
could not be the basis for a review of Siderca. Siderca emphasized that 
all customers are aware of Siderca's policy prohibiting entry of 
subject merchandise into the United States. Siderca asserted that 
entries appearing on the IM-145 were in error, and were most likely TIB 
entries mistakenly classified as consumption entries. Siderca also 
indicated that the entries in question could have been classified under 
the wrong HTS number. For several of the entries listed by petitioners, 
Siderca claimed that due to grade specification or dimensions, the 
merchandise was incapable of being produced in Argentina. (See November 
12, 1997 submission at 9.)
    On December 22, 1997, petitioners disputed Siderca's claim that it 
was unaware of any consumption entries of OCTG from Argentina, and 
that, regardless of Siderca's policy, as the sole producer of OCTG in 
Argentina, Siderca was responsible for any U.S. shipments entered for 
consumption during the POR.
    The Department issued a supplemental questionnaire on March 18, 
1998, requesting additional information on Siderca's FTZ or TIB 
shipments during the period.
    Siderca provided sales documentation for all transactions during 
the POR indicating that all of its sales were either sold directly to a 
third country, were TIB entries for re-export to a third country, were 
FTZ entries for re-export to a third country, or were transportation 
and exportation (T&E) entries for re-export to a third country. As a 
condition of these types of entries Siderca is required to document to 
U.S. Customs the final disposition of the merchandise, and to confirm 
that all shipments are in fact re-exported.
    On March 20, 1998, the Department forwarded a no-shipment inquiry 
to the U.S. Customs Service (Customs) for circulation to all Customs 
ports. Customs did not indicate to the Department that there was any 
record of consumption entries of OCTG by Siderca during the POR. On 
April 23, 1998, the Department requested additional information from 
Customs regarding one Siderca entry appearing in the Department's IM-
115 database. Customs subsequently confirmed that the entry was in fact 
a TIB entry and one that had been misclassified as subject merchandise. 
(See memorandum to the file, Customs Confirmation of Siderca Entry, 
August 24, 1998.) Given Customs' confirmation that there were no 
consumption entries of Argentine OCTG, and documentation provided by 
Siderca (purchase orders and invoices) that all of its sales of OCTG 
during the POR were either TIB entries, FTZ entries for re-export to 
third countries, or direct sales to third countries, there is no 
evidence on the record of this review of any consumption entries of 
Argentine OCTG during the POR. In conclusion, the Department determines 
that none of Siderca's sales of subject merchandise were entered into 
the United States for consumption during the POR and, thus, there are 
no entries to review.
    Because Siderca was the only firm for which a review was requested 
and it had no U.S. entries for consumption of covered merchandise 
during the POR, there is no basis for continuing this administrative 
review. We therefore are rescinding this review in accordance with 
section 351.213(d)(3) of the Department's regulations.
    The issue of whether couplings and coupling stock are included 
within the scope of the antidumping duty order on OCTG from Argentina 
was originally raised by the petitioners in the context of this 
administrative review. Because we have determined pursuant to section 
351.225(d) of the Department's regulations that the section 
351.225(k)(1) analysis is dispositive that couplings and coupling stock 
are outside the scope of the order, we have issued separately a final 
scope ruling to that effect. (See Final Scope Ruling--Antidumping Duty 
Order on Oil Country Tubular Goods from Argentina, August 28, 1998.)
    Finally, our decision to rescind this review renders moot the 
petitioners' request for a duty absorption inquiry.
    The cash deposit rate for all firms will continue to be the rate 
established in the most recently completed segment of this proceeding 
(i.e., 1.36 percent).
    This administrative review and notice are in accordance with 
section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)) and 19 CFR 351.221.

    Dated: August 28, 1998.
Joseph A. Spetrini,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 98-24600 Filed 9-11-98; 8:45 am]
BILLING CODE 3510-DS-M