[Federal Register Volume 64, Number 239 (Tuesday, December 14, 1999)]
[Notices]
[Pages 69718-69723]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-32393]


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DEPARTMENT OF COMMERCE

International Trade Administration
[A-588-850, A-588-851, A-791-808]


Notice of Preliminary Determinations of Sales at Less Than Fair 
Value: Certain Large Diameter Carbon and Alloy Seamless Standard, Line 
and Pressure Pipe From Japan and Certain Small Diameter Carbon and 
Alloy Seamless Standard, Line and Pressure Pipe From Japan and the 
Republic of South Africa

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

EFFECTIVE DATE: December 14, 1999.

FOR FURTHER INFORMATION CONTACT: Charles Riggle at (202) 482-5288 or 
Constance Handley at (202) 482-0631, Import Administration, Room 1870, 
International Trade Administration,

[[Page 69719]]

U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230.

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 Department of Commerce (Department) 
regulations refer to the regulations codified at 19 CFR part 351 (April 
1999).

Preliminary Determinations

    We preliminarily determine that large diameter carbon and alloy 
seamless standard, line and pressure pipe (large diameter seamless 
pipe) from Japan, and small diameter carbon and alloy seamless 
standard, line and pressure pipe (small diameter seamless pipe) from 
Japan and the Republic of South Africa (South Africa), are being sold, 
or are likely to be sold, in the United States at less than fair value 
(LTFV), as provided in section 733 of the Act. The estimated margins of 
sales at LTFV are shown in the Suspension of Liquidation section of 
this notice.

Case History

    On June 30, 1999, the Department received petitions on large 
diameter seamless pipe from Japan and Mexico filed in proper form by 
U.S. Steel Group (a unit of USX Corp.--Fairfield Seamless Pipe Mill) 
and USS/Kobe Steel Company. Also that day, the Department received 
petitions on small diameter seamless pipe from the Czech Republic, 
Japan, Romania and South Africa filed in proper form from Koppel Steel 
Corporation, Sharon Tube company, U.S. Steel Group, USS/Kobe Steel 
Company and Vision Metals, Inc. (Gulf States Tube Division). On June 
30, 1999, the United Steel Workers of America joined as co-petitioners 
in all of the cases.1
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    \1\ The preliminary determinations in the investigations 
involving the Czech Republic, Mexico and Romania has been postponed 
until January 26, 2000
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    These investigations were initiated on July 20, 1999. See 
Initiation of Antidumping Duty Investigations: Certain Large Diameter 
Carbon and Alloy Seamless Standard, Line and Pressure Pipe from Japan 
and Mexico and Certain Small Diameter Carbon and Alloy Seamless 
Standard, Line and Pressure Pipe from the Czech Republic, Japan, the 
Republic of South Africa and Romania; (Initiation Notice), 64 FR 40825 
(July 28, 1999). Since the initiation of the investigations, the 
following events have occurred:
    On August 12, 1999, the Department selected the following companies 
as mandatory respondents in the investigations: Kawasaki Steel 
Corporation (Kawasaki), Nippon Steel Corporation (Nippon) and Sumitomo 
Metal Industries (Sumitomo) for both investigations involving Japan; 
and Iscor Ltd (Iscor), the sole producer of the subject merchandise for 
South Africa. See Respondent Selection, below. On August 12, 1999, the 
Department issued the antidumping questionnaires to each of the 
selected respondents.
    On August 16, 1999, the United States International Trade 
Commission (ITC) preliminarily determined that there is a reasonable 
indication that imports of the products subject to each of these 
antidumping investigations are materially injuring the U.S. industry. 
See Certain Seamless Carbon and Alloy Steel Standard, Line, and 
Pressure Pipe from the Czech Republic, Japan, Mexico, Romania, and 
South Africa, 64 FR 46953 (August 27, 1999).
    On September 10, 1999, Iscor notified the Department that it would 
not be responding to the Department's questionnaire. Likewise, in the 
cases involving Japan, none of the mandatory respondents answered the 
Department's questionnaire.

Period of Investigation

    The period of investigation (POI) for both the large and small 
diameter seamless pipe cases is April 1, 1998, through March 31, 1999. 
This period corresponds to the four most recent fiscal quarters prior 
to the month of the filing of the petition (i.e., June 1999).

Scope of Investigations 2
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    \2\ On September 3, 1999, the petitioners requested that the 
scope of the investigations be amended to exclude certain products 
made to the A-335 specification. This change is reflected in the 
current scope.
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    For purposes of the large diameter seamless pipe investigation, the 
products covered are large diameter seamless carbon and alloy (other 
than stainless) steel standard, line, and pressure pipes produced, or 
equivalent, to the American Society for Testing and Materials (ASTM) A-
53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-335 (grades P1, P2, P11, 
P12, P21 and P22 only), ASTM A-589, ASTM A-795, and the American 
Petroleum Institute (API) 5L specifications and meeting the physical 
parameters described below, regardless of application. The scope of 
these investigations also includes all products used in standard, line, 
or pressure pipe applications and meeting the physical parameters 
described below, regardless of specification. Specifically included 
within the scope of these investigations are seamless pipes greater 
than 4.5 inches (114.3 mm) up to and including 16 inches (406.4 mm) in 
outside diameter, regardless of wall-thickness, manufacturing process 
(hot finished or cold-drawn), end finish (plain end, beveled end, upset 
end, threaded, or threaded and coupled), or surface finish.
    The seamless pipes subject to these investigations are currently 
classifiable under the subheadings 7304.10.10.30, 7304.10.10.45, 
7304.10.10.60, 7304.10.50.50, 7304.31.60.50, 7304.39.00.36, 
7304.39.00.40, 7304.39.00.44, 7304.39.00.48, 7304.39.00.52, 
7304.39.00.56, 7304.39.00.62, 7304.39.00.68, 7304.39.00.72, 
7304.51.50.60, 7304.59.60.00, 7304.59.80.30, 7304.59.80.35, 
7304.59.80.40, 7304.59.80.45, 7304.59.80.50, 7304.59.80.55, 
7304.59.80.60, 7304.59.80.65, and 7304.59.80.70 of the Harmonized 
Tariff Schedule of the United States (HTSUS).
    Specifications, Characteristics, and Uses: Large diameter seamless 
pipe is used primarily for line applications such as oil, gas, or water 
pipeline, or utility distribution systems. Seamless pressure pipes are 
intended for the conveyance of water, steam, petrochemicals, chemicals, 
oil products, natural gas and other liquids and gasses in industrial 
piping systems. They may carry these substances at elevated pressures 
and temperatures and may be subject to the application of external 
heat. Seamless carbon steel pressure pipe meeting the ASTM A-106 
standard may be used in temperatures of up to 1000 degrees Fahrenheit, 
at various American Society of Mechanical Engineers (ASME) code stress 
levels. Alloy pipes made to ASTM A-335 standard must be used if 
temperatures and stress levels exceed those allowed for ASTM A-106. 
Seamless pressure pipes sold in the United States are commonly produced 
to the ASTM 
A-106 standard.
    Seamless standard pipes are most commonly produced to the ASTM A-53 
specification and generally are not intended for high temperature 
service. They are intended for the low temperature and pressure 
conveyance of water, steam, natural gas, air and other liquids and 
gasses in plumbing and heating systems, air conditioning units, 
automatic sprinkler systems, and other related uses. Standard pipes 
(depending on type and code) may carry liquids at elevated temperatures 
but must not exceed relevant ASME code

[[Page 69720]]

requirements. If exceptionally low temperature uses or conditions are 
anticipated, standard pipe may be manufactured to ASTM A-333 or ASTM A-
334 specifications.
    Seamless line pipes are intended for the conveyance of oil and 
natural gas or other fluids in pipe lines. Seamless line pipes are 
produced to the API 5L specification.
    Seamless water well pipe (ASTM       A-589) and seamless galvanized 
pipe for fire protection uses (ASTM A-795) are used for the conveyance 
of water.
    Seamless pipes are commonly produced and certified to meet ASTM A-
106, ASTM A-53, API 5L-B, and API 5L-X42 specifications. To avoid 
maintaining separate production runs and separate inventories, 
manufacturers typically triple or quadruple certify the pipes by 
meeting the metallurgical requirements and performing the required 
tests pursuant to the respective specifications. Since distributors 
sell the vast majority of this product, they can thereby maintain a 
single inventory to service all customers.
    The primary application of ASTM       A-106 pressure pipes and 
triple or quadruple certified pipes in large diameters is for use as 
oil and gas distribution lines for commercial applications. A more 
minor application for large diameter seamless pipes is for use in 
pressure piping systems by refineries, petrochemical plants, and 
chemical plants, as well as in power generation plants and in some oil 
field uses (on shore and off shore) such as for separator lines, 
gathering lines and metering runs. These applications constitute the 
majority of the market for the subject seamless pipes. However, ASTM A-
106 pipes may be used in some boiler applications.
    The scope of these investigations includes all seamless pipe 
meeting the physical parameters described above and produced to one of 
the specifications listed above, regardless of application, and whether 
or not also certified to a non-covered specification. Standard, line, 
and pressure applications and the above-listed specifications are 
defining characteristics of the scope of these investigations. 
Therefore, seamless pipes meeting the physical description above, but 
not produced to the ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM 
A-335 (grades P1, P2, P11, P12, P21 and P22 only), ASTM A-589, ASTM A-
795, and API 5L specifications shall be covered if used in a standard, 
line, or pressure application.
    For example, there are certain other ASTM specifications of pipe 
which, because of overlapping characteristics, could potentially be 
used in ASTM       A-106 applications. These specifications generally 
include ASTM A-161, ASTM A-192, ASTM A-210, ASTM A-252, ASTM A-501, 
ASTM       A-523, ASTM A-524, and ASTM       A-618. When such pipes are 
used in a standard, line, or pressure pipe application, such products 
are covered by the scope of these investigations.
    Specifically excluded from the scope of these investigations are 
boiler tubing and mechanical tubing, if such products are not produced 
to ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-335 (grades 
P1, P2, P11, P12, P21 and P22 only), ASTM A-589, ASTM A-795, and API 5L 
specifications and are not used in standard, line, or pressure pipe 
applications. In addition, finished and unfinished oil country tubular 
goods (OCTG) are excluded from the scope of these investigations, if 
covered by the scope of another antidumping duty order from the same 
country. If not covered by such an OCTG order, finished and unfinished 
OCTG are included in this scope when used in standard, line or pressure 
applications.
    For purposes of the small diameter seamless pipe investigations, 
the products covered are seamless carbon and alloy (other than 
stainless) steel standard, line, and pressure pipes and redraw hollows 
produced, or equivalent, to the ASTM A-53, ASTM A-106, ASTM A-333, ASTM 
A-334, ASTM A-335, ASTM A-589, ASTM       A-795, and the American 
Petroleum Institute (API) 5L specifications and meeting the physical 
parameters described below, regardless of application. The scope of 
these investigations also includes all products used in standard, line, 
or pressure pipe applications and meeting the physical parameters 
described below, regardless of specification. Specifically included 
within the scope of these investigations are seamless pipes and redraw 
hollows, less than or equal to 4.5 inches (114.3 mm) in outside 
diameter, regardless of wall-thickness, manufacturing process (hot 
finished or cold-drawn), end finish (plain end, beveled end, upset end, 
threaded, or threaded and coupled), or surface finish.
    The seamless pipes subject to these investigations are currently 
classifiable under the subheadings 7304.10.10.20, 7304.10.50.20, 
7304.31.30.00, 7304.31.60.50, 7304.39.00.16, 7304.39.00.20, 
7304.39.00.24, 7304.39.00.28, 7304.39.00.32, 7304.51.50.05, 
7304.51.50.60, 7304.59.60.00, 7304.59.80.10, 7304.59.80.15, 
7304.59.80.20, and 7304.59.80.25 of the HTSUS.
    Specifications, Characteristics, and Uses: Seamless pressure pipes 
are intended for the conveyance of water, steam, petrochemicals, 
chemicals, oil products, natural gas and other liquids and gasses in 
industrial piping systems. They may carry these substances at elevated 
pressures and temperatures and may be subject to the application of 
external heat. Seamless carbon steel pressure pipe meeting the ASTM A-
106 standard may be used in temperatures of up to 1000 degrees 
Fahrenheit, at various ASME code stress levels. Alloy pipes made to 
ASTM A-335 standard must be used if temperatures and stress levels 
exceed those allowed for ASTM A-106. Seamless pressure pipes sold in 
the United States are commonly produced to the ASTM A-106 standard.
    Seamless standard pipes are most commonly produced to the ASTM A-53 
specification and generally are not intended for high temperature 
service. They are intended for the low temperature and pressure 
conveyance of water, steam, natural gas, air and other liquids and 
gasses in plumbing and heating systems, air conditioning units, 
automatic sprinkler systems, and other related uses. Standard pipes 
(depending on type and code) may carry liquids at elevated temperatures 
but must not exceed relevant ASME code requirements. If exceptionally 
low temperature uses or conditions are anticipated, standard pipe may 
be manufactured to ASTM A-333 or ASTM A-334 specifications.
    Seamless line pipes are intended for the conveyance of oil and 
natural gas or other fluids in pipe lines. Seamless line pipes are 
produced to the API 5L specification.
    Seamless water well pipe (ASTM A-589) and seamless galvanized pipe 
for fire protection uses (ASTM A-795) are used for the conveyance of 
water.
    Seamless pipes are commonly produced and certified to meet ASTM A-
106, ASTM A-53, API 5L-B, and API 5L-X42 specifications. To avoid 
maintaining separate production runs and separate inventories, 
manufacturers typically triple or quadruple certify the pipes by 
meeting the metallurgical requirements and performing the required 
tests pursuant to the respective specifications. Since distributors 
sell the vast majority of this product, they can thereby maintain a 
single inventory to service all customers.
    The primary application of ASTM       A-106 pressure pipes and 
triple or quadruple certified pipes is in pressure piping systems by 
refineries, petrochemical plants, and chemical plants. Other 
applications are in power generation plants (electrical-fossil fuel

[[Page 69721]]

or nuclear), and in some oil field uses (on shore and off shore) such 
as for separator lines, gathering lines and metering runs. A minor 
application of this product is for use as oil and gas distribution 
lines for commercial applications. These applications constitute the 
majority of the market for the subject seamless pipes. However, ASTM A-
106 pipes may be used in some boiler applications.
    Redraw hollows are any unfinished pipe or ``hollow profiles'' of 
carbon or alloy steel transformed by hot rolling or cold drawing/
hydrostatic testing or other methods to enable the material to be sold 
under ASTM A-53, ASTM       A-106, ASTM A-333, ASTM A-334, ASTM A-335, 
ASTM A-589, ASTM       A-795, and API 5L specifications.
    The scope of these investigations includes all seamless pipe 
meeting the physical parameters described above and produced to one of 
the specifications listed above, regardless of application, and whether 
or not also certified to a non-covered specification. Standard, line, 
and pressure applications and the above-listed specifications are 
defining characteristics of the scope of these investigations. 
Therefore, seamless pipes meeting the physical description above, but 
not produced to the ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM 
A-335, ASTM       A-589, ASTM A-795, and API 5L specifications shall be 
covered if used in a standard, line, or pressure application.
    For example, there are certain other ASTM specifications of pipe 
which, because of overlapping characteristics, could potentially be 
used in ASTM       A-106 applications. These specifications generally 
include ASTM A-161, ASTM A-192, ASTM A-210, ASTM A-252, ASTM A-501, 
ASTM       A-523, ASTM A-524, and ASTM       A-618. When such pipes are 
used in a standard, line, or pressure pipe application, such products 
are covered by the scope of these investigations.
    Specifically excluded from the scope of these investigations are 
boiler tubing and mechanical tubing, if such products are not produced 
to ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-335, ASTM A-
589, ASTM       A-795, and API 5L specifications and are not used in 
standard, line, or pressure pipe applications. In addition, finished 
and unfinished OCTG are excluded from the scope of these 
investigations, if covered by the scope of another antidumping duty 
order from the same country. If not covered by such an OCTG order, 
finished and unfinished OCTG are included in this scope when used in 
standard, line or pressure applications.
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, our written description of the merchandise under 
investigation is dispositive.
    The Department set aside a period for all interested parties to 
raise issues regarding product coverage. From August through November 
1999, the Department received responses from a number of parties 
including importers, respondents, consumers, and petitioners.

Class or Kind

    We have preliminarily determined that there are only two classes or 
kinds of merchandise, one for small diameter pipe and one for large 
diameter pipe. Our determination is based on an evaluation of the 
criteria set forth in Diversified Products v. United States, 572 F. 
Supp. 883, 889 (CIT 1983) (Diversified Products), which look to 
differences in: (1) The general physical characteristics of the 
merchandise, (2) the expectations of the ultimate purchaser, (3) the 
ultimate use of the merchandise, (4) the channels of trade in which the 
merchandise moves, and (5) the manner in which the product is 
advertised or displayed. In making this preliminary determination, we 
have rejected a request by Sumitomo that the Department determine that 
there are three separate classes or kinds of merchandise subject to 
investigation: (1) Commodity grade standard, line and pressure pipe, 
(2) high-strength line pipe produced to proprietary specification for 
use in deep sea, arctic or other harsh conditions and (3) alloy 
pressure pipe. See letter from Sumitomo to the Department of Commerce 
(August 3, 1999). Likewise we have rejected the requests of MC Tubular 
Products, Inc., an importer of the subject merchandise, and the 
American Boiler Makers Association (ABMA), consumers of the subject 
merchandise, that we determine that alloy seamless pipe is a separate 
class or kind than carbon seamless pipe. See letter from MC Tubular 
Products to the Department of Commerce (August 10, 1999), and letter 
from the ABMA to the Assistant Secretary (November 5, 1999). In our 
analysis of the Diversified Products criteria, we find that, consistent 
with past seamless pipe cases, alloy grade steels, high-strength line 
pipe, and pipes made therefrom, represent the upper end of a single 
continuum of steel grades and associated attributes. See, e.g., Notice 
of Final Determination of Sales at Less Than Fair Value: Small Diameter 
Circular Seamless Carbon and Alloy Steel, Standard, Line and Pressure 
Pipe From Brazil, 60 FR 31960, 31963 (June 19, 1995); Notice of Final 
Determination of Sales at Less Than Fair Value: Small Diameter Circular 
Seamless Carbon and Alloy Steel, Standard, Line and Pressure Pipe From 
Germany, 60 FR 31974 (June 19, 1995). Information placed on the record 
of this proceeding, which does not address all of the Diversified 
Products criteria or contain compelling new documented evidence, does 
not constitute sufficient justification for deviating from our 
established precedent. Id. For further discussion on this topic see 
Memorandum from Case Analysts to Holly Kuga, Re: Class or Kind, dated 
December 7, 1999. On December 2, 1999, Sumitomo made an additional 
submission with regard to class or kind. Due to the statutory deadline 
for the preliminary determination in these investigations, we will 
consider this information in making the final determination.

Selection of Respondents

    Section 777A(c)(1) of the Act directs the Department to calculate 
individual dumping margins for each known exporter and producer of the 
subject merchandise. However, section 777A(c)(2) of the Act gives the 
Department discretion, when faced with a large number of exporters/
producers, to limit its examination to a reasonable number of such 
companies if it is not practicable to examine all companies. Where it 
is not practicable to examine all known producers/exporters of subject 
merchandise, this provision permits the Department to investigate 
either: (1) A sample of exporters, producers, or types of products that 
is statistically valid based on the information available at the time 
of selection, or (2) exporters and producers accounting for the largest 
volume of the subject merchandise that can be reasonably examined.
    After consideration of the complexities expected to arise in these 
proceedings and the resources available to the Department, we 
determined that it was not practicable in the Japanese investigations 
to examine all known producers/exporters of subject merchandise. This 
was not a concern in the investigation involving South Africa, since 
there was only one producer/exporter of subject merchandise in that 
country during the POI. However, with respect to Japan, which had 
multiple producers/exporters of subject merchandise during the POI, we 
determined that, given our resources, we would be able to investigate 
three such companies. The respondents selected for Japan were

[[Page 69722]]

those with the greatest export volume, that together accounted for more 
than 50 percent of all known exports of the subject merchandise during 
the POI from Japan. For a more detailed discussion of respondent 
selection in these investigations, see Respondent Selection Memorandum, 
dated August 12, 1999.

Facts Available

    As stated above, none of the respondents answered the Department's 
questionnaire. Section 776(a)(2) of the Act provides that, if an 
interested party (A) withholds information that has been requested by 
the Department; (B) fails to provide such information in a timely 
manner or in the form or manner requested subject to section 782(c)(1) 
and (e) of the Act; (C) significantly impedes a proceeding under the 
antidumping statute; or (D) provides such information but the 
information cannot be verified, the Department shall, subject to 
subsection 782(d) of the Act, use facts otherwise available in reaching 
the applicable determination. Because Iscor, Kawasaki, Nippon and 
Sumitomo failed to respond to our questionnaire, pursuant to section 
776(a)(2)(A) of the Act, we resorted to facts otherwise available to 
determine the dumping margins for these companies.
    Section 776(b) of the Act provides that the Department may use an 
inference adverse to the interests of a party that has failed to 
cooperate by not acting to the best of its ability to comply with the 
Department's requests for information. See also Statement of 
Administrative Action accompanying the URAA, H.R. Rep. No. 103-316 at 
870 (1994) (SAA). Failure by Iscor, Kawasaki, Nippon and Sumitomo to 
respond to the Department's antidumping questionnaire constitutes a 
failure to act to the best of their ability to comply with a request 
for information, within the meaning of section 776 of the Act. Because 
Iscor, Kawasaki, Nippon and Sumitomo failed to respond, the Department 
has determined that, in selecting among the facts otherwise available, 
an adverse inference is warranted in selecting the facts available for 
these companies.
    Because we were unable to calculate margins for the respondents in 
Japan, or South Africa, consistent with Department practice, we 
assigned the respondents in these cases the highest margins alleged in 
the amendments to the respective petitions. See, e.g., Notice of 
Preliminary Determination of Sales at Less Than Fair Value: Stainless 
Steel Wire Rod from Germany (Wire Rod from Germany), 63 FR 10847 (March 
5, 1998). The highest petition margins are 106.07 percent in the small 
diameter seamless pipe investigation for Japan, 107.80 percent in the 
large diameter seamless pipe investigation for Japan and 43.51 percent 
for South Africa. See Initiation Notice.
    Section 776(b) states that an adverse inference may include 
reliance on information derived from the petition. See also SAA at 829-
831. Section 776(c) of the Act provides that, when the Department 
relies on secondary information (such as the petition) in using the 
facts otherwise available, it must, to the extent practicable, 
corroborate that information from independent sources that are 
reasonably at its disposal.
    The SAA clarifies that ``corroborate'' means that the Department 
will satisfy itself that the secondary information to be used has 
probative value (see SAA at 870). The SAA also states that independent 
sources used to corroborate such evidence may include, for example, 
published price lists, official import statistics and customs data, and 
information obtained from interested parties during the particular 
investigation (see SAA at 870).
    We reviewed the adequacy and accuracy of the information in the 
petitions during our pre-initiation analysis of the petitions, to the 
extent appropriate information was available for this purpose. See 
Import Administration AD Investigation Initiation Checklist, dated June 
21, 1999, for a discussion of the margin calculations in the petitions. 
In addition, in order to determine the probative value of the margins 
in the petitions for use as adverse facts available for purposes of 
this determination, we examined evidence supporting the calculations in 
the petitions. In accordance with section 776(c) of the Act, to the 
extent practicable, we examined the key elements of the export price 
(EP) and normal value (NV) calculations on which the margins in the 
petitions were based. Our review of the EP and NV calculations 
indicated that the information in the petitions has probative value, as 
certain information included in the margin calculations in the 
petitions is from public sources concurrent, for the most part, with 
the POI (e.g., international freight and insurance, customs duty, 
interest rates). However, with respect to certain other data included 
in the margin calculations of the petition (e.g., gross United States 
and home market unit prices), neither the respondents nor other 
interested parties provided the Department with further relevant 
information and the Department is aware of no other independent source 
of information that would enable it to further corroborate the 
remaining components of the margin calculation in the petition. The 
implementing regulation for section 776 of the Act, codified at 19 CFR 
351.308(c) states, ``[t]he fact that corroboration may not be 
practicable in a given circumstance will not prevent the Secretary from 
applying an adverse inference as appropriate and using the secondary 
information in question.'' Additionally, we note that the SAA at 870 
specifically states that, where ``corroboration may not be practicable 
in a given circumstance,'' the Department may nevertheless apply an 
adverse inference. Accordingly, we find, for purposes of this 
preliminary determination, that this information is corroborated to the 
extent practicable.

All Others Rate

    Section 735(c)(5)(B) of the Act provides that, where the estimated 
weighted-averaged dumping margins established for all exporters and 
producers individually investigated are zero or de minimis or are 
determined entirely under section 776 of the Act, the Department may 
use any reasonable method to establish the estimated all-others rate 
for exporters and producers not individually investigated. Our recent 
practice under these circumstances has been to assign, as the ``all 
others'' rate, the simple average of the margins in the petition. We 
have done so in these cases. See, e.g., Notice of Final Determination 
of Sales at Less Than Fair Value: Stainless Steel Plate in Coil from 
Canada, 64 FR 15457 (March 31, 1999); see also Notice of Final 
Determination of Sales at Less Than Fair Value: Stainless Steel Plate 
in Coil from Italy, 64 FR 15458, 15459 (March 21, 1999).

Suspension of Liquidation

    For entries of large and small diameter seamless pipe from Japan, 
and entries of small diameter seamless pipe from South Africa, we are 
directing the U.S. Customs Service to suspend liquidation of those 
entries that are entered, or withdrawn from warehouse, for consumption 
on or after the date of publication of this notice in the Federal 
Register. We are also instructing the Customs Service to require a cash 
deposit or the posting of a bond equal to the dumping margin, as 
indicated in the chart below. These instructions suspending liquidation 
will remain in effect until further notice.
    The dumping margins are provided below.

[[Page 69723]]



------------------------------------------------------------------------
                                                                Margin
                   Manufacturer/exporter                      (percent)
------------------------------------------------------------------------
Japan--large diameter:
  Nippon Steel Corporation.................................       107.80
  Kawasaki Steel Corporation...............................       107.80
  Sumitomo Metal Industries................................       107.80
  All Others...............................................        68.88
Japan--small diameter:
  Nippon Steel Corporation.................................       106.07
  Kawasaki Steel Corporation...............................       106.07
  Sumitomo Metal Industries................................       106.07
  All Others...............................................        70.43
South Africa--small diameter:
  Iscor Ltd................................................        43.51
  All Others...............................................        40.17
------------------------------------------------------------------------

ITC Notification

    In accordance with section 733(f) of the Act, we have notified the 
ITC of our determinations. If our final antidumping determinations are 
affirmative, the ITC will determine whether these imports are 
materially injuring, or threaten material injury to, the U.S. industry. 
The deadline for that ITC determination would be the later of 120 days 
after the date of these preliminary determinations or 45 days after the 
date of our final determinations.

Public Comment

    For the investigations of large and small diameter seamless pipe 
from Japan and small diameter seamless pipe from South Africa, case 
briefs must be submitted no later than 30 days after the publication of 
this notice in the Federal Register. Rebuttal briefs must be filed 
within five business days after the deadline for submission of case 
briefs. A list of authorities used, a table of contents, and an 
executive summary of issues should accompany any briefs submitted to 
the Department. Executive summaries should be limited to five pages 
total, including footnotes.
    Section 774 of the Act provides that the Department will hold a 
hearing to afford interested parties an opportunity to comment on 
arguments raised in case or rebuttal briefs, provided that such a 
hearing is requested by any interested party. If a request for a 
hearing is made in an investigation, the hearing will tentatively be 
held two days after the deadline for submission of the rebuttal briefs, 
at the U.S. Department of Commerce, 14th Street and Constitution 
Avenue, NW, Washington, D.C. 20230. In the event that the Department 
receives requests for hearings from parties to several seamless pipe 
cases, the Department may schedule a single hearing to encompass all 
those cases. Parties should confirm by telephone the time, date, and 
place of the hearing 48 hours before the scheduled time.
    Interested parties who wish to request a hearing, or to participate 
if one is requested, must submit a written request within 30 days of 
the publication of this notice. Requests should specify the number of 
participants and provide a list of the issues to be discussed. Oral 
presentations will be limited to issues raised in the briefs.
    If these investigations proceed normally, we will make our final 
determinations no later than 75 days after the date of issuance of this 
notice.
    These determinations are published pursuant to sections 733(f) and 
777(i)(1) of the Act.

    Dated: December 7, 1999.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
[FR Doc. 99-32393 Filed 12-13-99; 8:45 am]
BILLING CODE 3510-DS-P