[Federal Register Volume 65, Number 24 (Friday, February 4, 2000)]
[Notices]
[Pages 5599-5604]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-2583]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-851-802]


Notice of Preliminary Determination of Sales at Less Than Fair 
Value and Postponement of Final Determination: Certain Small Diameter 
Carbon and Alloy Seamless Standard, Line, and Pressure Pipe From the 
Czech Republic

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

EFFECTIVE DATE:  February 4, 2000.

FOR FURTHER INFORMATION CONTACT:  Dennis McClure or John Brinkmann, at 
(202) 482-0984 or (202) 482-4126, respectively; AD/CVD Enforcement, 
Office VI, Group II, Import Administration, Room 1870, International 
Trade Administration, 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 the Department of Commerce's (the 
Department's) regulations refer to the regulations codified at 19 CFR 
part 351 (April 1999).

Preliminary Determination

    We preliminarily determine that certain small diameter carbon and 
alloy seamless standard, line, and pressure pipe (seamless pipe) from 
the Czech Republic 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

    This investigation was initiated on July 20, 1999.\1\ 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, 64 FR 40825 (July 28, 1999) 
(Initiation Notice). Since the initiation of the investigation, the 
following events have occurred:
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    \1\ The petitioners in this investigation are Gulf States Tube, 
a Division of Vision Metals, Inc.; Koppel Steel Corporation; Sharon 
Tube Corporation; USS/Kobe Steel Corporation; U.S. Steel Group, a 
unit of USX Corporation; and the United Steelworkers of America.
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    As of the date of initiation of this investigation, the Czech 
Republic was still considered a non-market economy (NME) country. On 
July 23, 1999, the Department received a letter from the Czech 
Ambassador, on behalf of the Government of the Czech Republic, 
requesting revocation of the Czech Republic's NME status, under section 
771(18)(A) of the Act, in the context of this investigation. On August 
5, 1999, the Department initiated a formal inquiry into the Czech 
Republic's status as a NME. On August 12, 1999, the Department selected 
Nova Hut, a.s. (Nova Hut), the sole producer of the subject merchandise 
in the Czech Republic, as a mandatory respondent, and issued section A 
of the NME and market economy \2\ antidumping questionnaires to Nova 
Hut. On August 16, 1999, the Department received comments from the 
Czech Government and petitioners addressing the criteria necessary to 
revoke the Czech Republic's NME status.
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    \2\ Both versions of the questionnaire were issued because Nova 
Hut had requested that the NME status of the Czech Republic be 
revoked.

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[[Page 5600]]

    On August 23, 1999, the United States International Trade 
Commission (ITC) preliminarily determined that there is a reasonable 
indication that imports of the products subject to this antidumping 
investigation 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 August 17, 1999, we issued the remainder of the NME and market 
economy questionnaires to Nova Hut.
    While Nova Hut responded to section A of the Department's NME 
questionnaire on September 9, 1999, no further NME responses were 
received. Nova Hut submitted its responses to Department's market 
economy questionnaire on September 9 and October 14, 1999.
    On November 2, 1999, the petitioners requested that the Department 
initiate a below-cost sales investigation. After examining the 
petitioners' request, on November 5, 1999, the Department initiated a 
below-cost sales investigation and requested that Nova Hut respond to 
the Department's cost of production questionnaire. See Memorandum from 
John Brinkmann to David Mueller, Allegation of Sales Below the Cost of 
Production for Nova Hut, a.s. (Cost Memo), dated November 5, 1999, on 
file in the Central Records Unit (CRU), room B-099 of the Main Commerce 
Department Building. Nova Hut submitted its response to the 
Department's cost of production questionnaire on December 13, 1999.
    We issued supplemental questionnaires where appropriate. Responses 
to those supplemental questionnaires were timely filed between November 
12, 1999 and January 6, 2000 and we have incorporated the information 
provided in those responses into this preliminary determination.
    On November 10, 1999, the petitioners made a timely request that 
the Department postpone the preliminary determination in this 
investigation and the companion investigations from Romania and Mexico 
on the grounds that these investigations are extraordinarily 
complicated. On November 17, 1999, in accordance with section 733(c)(1) 
of the Act we extended the deadline for the preliminary determination 
to January 28, 2000. See Notice of Postponement of Preliminary 
Antidumping Duty Determinations: Certain Small and Large Diameter 
Carbon and Alloy Seamless Standard, Line and Pressure Pipe From the 
Czech Republic, Romania and Mexico, 64 FR 66168 (November 24, 1999).
    On December 10, 1999, the Department revoked the Czech Republic's 
NME status. See Memorandum to Robert S. LaRussa, Antidumping 
Investigation of Certain Small Diameter Carbon and Alloy Seamless 
Standard Line and Pressure Pipe from the Czech Republic: Non-Market 
Economy (``NME'') Country Status (Czech Republic: NME Status), dated 
November 29, 1999, on file in the CRU and the section on Revocation of 
the Czech Republic's Non-Market Economy Status, below. Thereafter, this 
investigation continued under the Department's market economy 
procedures.
    On January 18, 2000, the petitioners submitted comments regarding 
Nova Hut's response to the Department's section D questionnaire. We 
note that the petitioners' submission was not received in sufficient 
time to be considered for purposes of the Department's preliminary 
determination.\3\ However, we intend to examine these comments in 
detail and, if necessary, we will issue an additional questionnaire to 
clarify or supplement information previously submitted by Nova Hut.
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    \3\ Given that the Department did not revoke the Czech 
Republic's NME status until December 10, 1999, Nova Hut did not 
respond to the Department's December 22, 1999 supplemental section D 
questionnaire until January 6, 2000. As a result, the petitioners 
did not submit their comments regarding this response until January 
18, 2000.
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    On January 19 and 20, 2000, in response to the Department's section 
D supplemental questionnaire, Nova Hut provided additional information 
from its affiliated suppliers. On January 21, 2000, Nova Hut responded 
to the petitioners' January 18, 2000, comments. As explained above, we 
will take these comments into consideration for the final 
determination.
    Although the deadline for this determination was originally January 
26, 2000, due to the Federal Government shutdown on January 25 and 26, 
2000, resulting from inclement weather, the time frame for issuing this 
determination has been extended by two days.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioners. The Department's regulations, at 19 CFR 351.210(e)(2), 
require that requests by respondents for postponement of a final 
determination be accompanied by a request for extension of provisional 
measures from a four-month period to not more than six months.
    On October 29, 1999, Nova Hut requested that, in the event of an 
affirmative preliminary determination in this investigation, the 
Department postpone its final determination until not later than 135 
days after the date of the publication of an affirmative preliminary 
determination in the Federal Register. Nova Hut also included a request 
to extend the provisional measures to not more than six months. 
Therefore, in accordance with 19 CFR 351.210(b), because (1) our 
preliminary determination is affirmative, (2) the requesting exporter 
accounts for a significant portion of exports of the subject 
merchandise, and (3) no compelling reason for denial exists, we are 
granting the respondent's request and are postponing the final 
determination until not later than 135 days after the date of the 
publication of the preliminary determination.

Period of Investigation

    The period of this investigation (POI) comprises Nova Hut's four 
most recent fiscal quarters prior to the filing of the petition (i.e., 
April 1, 1998, through March 31, 1999).

Scope of Investigation

    For purposes of this investigation, the products covered are small 
diameter 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 this investigation 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 
this investigation 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

[[Page 5601]]

(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 this investigation 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 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 this investigation 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 this investigation. 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 this investigation.
    Specifically excluded from the scope of this investigation 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 oil country tubular goods (OCTG) are excluded from the 
scope of this investigation, 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.

Class or Kind

    From August through November 1999, the Department received 
submissions from importers, respondents, and consumers in the companion 
investigations involving small and large diameter seamless pipe from 
Japan, requesting that the subject merchandise be considered more than 
one class or kind. Specifically, those parties requested that the 
Department subdivide each of these investigations into the following 
separate classes or kinds of merchandise: (1) Commodity grade carbon 
seamless standard, line and pressure pipe; (2) alloy seamless pipe; and 
(3) high-strength seamless line pipe. On November 8, 1999, the 
petitioners rebutted these arguments. We have preliminarily determined 
that there is a single class or kind of merchandise for small diameter 
pipe and another distinct single class or kind of merchandise for large 
diameter pipe. For further discussion on this topic see the 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, FR 64 69721 (December 14, 1999).

Product Comparisons

    In accordance with section 771(16) of the Act, all products 
produced by Nova Hut covered by the description in the Scope of 
Investigation section, above, and sold in the Czech Republic during the 
POI, are considered to be foreign like products for purposes of 
determining appropriate product comparisons to U.S. sales. We have 
relied on six criteria to match U.S. sales

[[Page 5602]]

of subject merchandise to comparison-market sales of the foreign like 
product: specification/grade, manufacturing process, outside diameter, 
wall thickness, surface finish, and end-finish. These characteristics 
have been weighted by the Department, where appropriate. Where there 
were no sales of identical merchandise in the home market to compare to 
U.S. sales, we compared U.S. sales to the next most similar foreign 
like product on the basis of the characteristics as listed above.

Revocation of the Czech Republic's Non-Market Economy Status

    In determining whether to revoke NME-country status under section 
771(18)(A) of the Act, the Department must take into account the 
following factors under section 771(18)(B): (1) The extent to which the 
currency of the foreign country is convertible into the currency of 
other countries; (2) the extent to which wage rates in the foreign 
country are determined by free bargaining between labor and management; 
(3) the extent to which joint ventures or other investments by firms of 
other foreign countries are permitted in the foreign country; (4) the 
extent of government ownership or control of the means of production; 
(5) the extent of government control over the allocation of resources 
and over the price and output decisions of enterprises; and (6) such 
other factors as the administering authority considers appropriate.
    Since its emergence as an independent, democratic state, the Czech 
Republic has made significant progress in its transformation into a 
market economy country. The Czech currency is now fully convertible. 
Wages in the Czech Republic are largely determined by free bargaining 
between labor and management. Trade has been liberalized and tariffs 
reduced, and the Czech government is actively promoting foreign 
investment and business ventures. Industry, agriculture and services 
have all been privatized, and the power to make decisions related to 
the allocation of resources, and over pricing and output decisions, now 
rests with the private sector. Based on the preponderance of evidence 
related to economic reforms in the Czech Republic required under 
section 771(18)(B) of the Act, the Department revoked the Czech 
Republic's NME country status, effective January 1, 1998. See Czech 
Republic: NME Status.

Fair Value Comparisons

    To determine whether sales of seamless pipe products from the Czech 
Republic were made in the United States at LTFV, we compared the export 
price (EP) to the normal value (NV), as described in the Export Price 
and Normal Value sections of this notice, below. In accordance with 
section 777A(d)(1)(A)(i) of the Act, we calculated weighted-average EPs 
for comparison to weighted-average NVs.

Export Price

    We used EP methodology in accordance with section 772 of the Act, 
because Nova Hut sold the subject merchandise directly to an 
unaffiliated purchaser in the United States or to an unaffiliated 
purchaser for exportation to the United States prior to the date of 
importation, and CEP methodology was not otherwise, appropriate.
    We calculated EP based on documents alongside freight (DAF Polish 
border) packed prices charged to the first unaffiliated customer in the 
United States. In accordance with section 772(c)(2) of the Act, we made 
deductions from the starting price, where appropriate, for movement 
expenses, including foreign inland freight and export license fees for 
shipment.

Normal Value 

A. Selection of Comparison Markets
    Section 773(a)(1) of the Act directs that NV be based on the price 
at which the foreign like product is sold in the home market, provided 
that the merchandise is sold in sufficient quantities, and that there 
is no particular market situation that prevents a proper comparison 
with the EP. The statute contemplates that quantities will normally be 
considered insufficient if they are less than five percent of the 
aggregate quantity of sales of the subject merchandise to the United 
States.
    Nova Hut had a viable home market for seamless pipe products, and 
reported home market sales data for purposes of the calculation of NV.
    In deriving NV, we made certain adjustments to price as detailed in 
the Calculation of Normal Value Based on Home-Market Prices section of 
this notice, below.
B. Cost of Production Analysis
    As noted above, on November 2, 1999, petitioners filed a below-cost 
sales allegation against Nova Hut. Based on our analysis of the 
allegation, and in accordance with section 773(b)(2)(A)(i) of the Act, 
we found reasonable grounds to believe or suspect that sales of 
seamless pipe, manufactured in the Czech Republic, were made at prices 
below the cost of production (COP). See Cost Memo. As a result, the 
Department conducted an investigation to determine whether Nova Hut 
made home market sales during the POI at prices below their respective 
COPs, within the meaning of section 773(b) of the Act.
1. Calculation of COP
    In accordance with section 773(b)(3) of the Act, we calculated a 
weighted-average COP based on the sum of Nova Hut's costs of materials 
and fabrication for the foreign like product, plus amounts for selling, 
general, and administrative expenses (SG&A) and packing.
    For the COP calculation, we relied on Nova Hut's COP information 
from the company's December 13, 1999, and January 6, 2000 submissions, 
except in the following instances:
    (1) Nova Hut obtained iron, a major input, from an affiliate. For 
reporting purposes, Nova Hut valued this input at the weighted-average 
transfer price.\4\ Based on the transfer price and market price 
information in Nova Hut's December 12, 1999, and January 6, 2000, cost 
of production responses, for the preliminary determination, we compared 
the transfer price of iron to the market price of iron. Because the 
market price was higher than the transfer price, we increased the 
transfer price to reflect the market price;
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    \4\ Sections 773(f)(2) and (3) of the Act prescribe how the 
Department is to treat affiliated-partly transactions in the 
calculation of cost of production and constructed value. With 
respect to major inputs purchased from affiliated suppliers, the 
Department's practice is that such imports will normally be valued 
at the higher of the affiliated party's transfer price, the market 
price of the inputs, or the actual costs incurred by the affiliated 
supplier in producing the input. (See, e.g. Fresh Atlantic Salmon 
From Chile: Final Determination of Sales at Less Than Fair Value, 63 
FR 31426, 31427 June 9, 1998); Notice of Final Results and Partial 
Rescission of Antidumping Duty Administrative Review: Certain Pasta 
from Italy, 64 FR 6615, 6621-6623 (February 10, 1999). However, Nova 
Hut was unable to provide the suppliers' cost information in time 
for consideration in this preliminary determination (this 
information was provided on January 19 and 20, 2000). Therefore, for 
this preliminary determination, we used the transfer prices or 
market prices, as appropriate. We will consider the respondent's 
suppliers' cost data for the final determination.
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    (2) For the minor inputs purchased from affiliated parties (i.e., 
oxygen and iron ore), we increased the reported transfer prices to 
reflect the higher market prices;
    (3) We revised Nova Hut's general and administrative (G&A) expense 
rate calculation; and
    (4) We revised the financial expense ratio.
    See Cost of Production and Constructed Value Calculation 
Adjustments for the Preliminary Determination for Nova Hut, dated 
January 28, 2000, on file in the CRU.

[[Page 5603]]

2. Test of Home-Market Sales Prices
    We compared the weighted-average COP for Nova Hut to home market 
sales of the foreign like product, as required under section 773(b) of 
the Act, in order to determine whether these sales had been made at 
prices below the COP within an extended period of time (i.e., a period 
of one year) in substantial quantities \5\ and whether such prices were 
sufficient to permit the recovery of all costs within a reasonable 
period of time.
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    \5\ In accordance with section 773(b)(2)(C)(i) of the Act, we 
determined that sales made below the COP were made in substantial 
quantities if the volume of such sales represented 20 percent or 
more of the volume of sales under consideration for the 
determination of NV.
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    We used the revised COP data from the December 13, 1999, and 
January 6, 2000, submissions, to compare to the home market prices, 
less any applicable billing adjustments, discounts, rebates, and 
indirect selling expenses, on a model-specific basis.
3. Results of the COP Test
    Pursuant to section 773(b)(2)(B) of the Act, since we found 20 
percent or more of Nova Hut's sales of certain products during the POI 
were at prices less than the weighted-average COP for the POI, we 
preliminary determine such sales to have been made in ``substantial 
quantities'' within an extended period of time. We also preliminary 
determine these sales below cost were not made at prices that would 
permit recovery of all costs within a reasonable period of time, in 
accordance with section 773(b)(2)(D) of the Act. Therefore, for 
purposes of these preliminary results, we have disregarded these below-
cost sales and used the remaining above-cost sales as the basis for 
determining NV, in accordance with section 773(b)(1) of the Act. 
Although, some products had no above-cost sales, we did not need to use 
constructed value (CV) as a basis for NV in our comparisons to EP, 
because all EP sales were matched to similar models of above-cost sales 
from the home market.
C. Arms-Length Test
    Sales to affiliated customers for consumption in the home market 
which were determined not to be at arm's-length were excluded from our 
analysis. To test whether these sales were made at arm's-length, we 
compared the prices of sales of comparison products to affiliated and 
unaffiliated customers, net of all movement charges, direct selling 
expenses, discounts, and packing. Pursuant to 19 CFR 351.403 and in 
accordance with our practice, where the prices to the affiliated party 
were on average less than 99.5 percent of the prices to unaffiliated 
parties, we determined that the sales made to the affiliated party were 
not at arm's-length. See Notice of Final Results and Partial Recission 
of Antidumping Duty Administrative Review: Roller Chain, Other Than 
Bicycle, From Japan, 62 FR 60472, 60478 (November 10, 1997) and 
Antidumping Duties; Countervailing Duties: Final Rule (Antidumping 
Duties), 62 FR 27295, 27355-56 (May 19, 1997). We included those sales 
to affiliated customers that passed the arm's-length test in our 
analysis. (see 19 CFR 351.403).
D. Level of Trade
    As set forth in section 773(a)(1)(B)(i) of the Act and in the 
Statement of Administrative Action (SAA) accompanying the Uruguay Round 
Agreements Act, H.R. Doc. 103-316 at 829-831 (1994), to the extent 
practicable, the Department will calculate NV based on sales at the 
same level of trade (LOT) as the U.S. sales.
    We examined information on the selling activities associated with 
each channel of trade in each of Nova Hut's markets. Nova Hut's home 
market sales were all exworks and its U.S. sales were DAF Polish 
border. The EP LOT did not differ considerably from the home market LOT 
with respect to selling activities, although there were slight 
differences with respect to advertising and warehousing. Therefore, we 
determine that there was a single LOT in each market and that these 
LOTs were comparable. For a detailed description of our level-of-trade 
methodology and findings for this preliminary determination, see the 
January 28, 2000, Antidumping Investigation of Certain Small Diameter 
Seamless Pipe from the Czech Republic: Preliminary Level of Trade 
Findings Memorandum on file in the CRU.
E. Calculation of Normal Value Based on Home-Market Prices
    We performed price-to-price comparisons using sales of comparable 
merchandise in the home market that did not fail the cost test. We 
calculated NV based on ``exworks'' prices. In addition, we made 
circumstance-of-sale (COS) adjustments for direct expenses, where 
appropriate, in accordance with section 773(a)(6)(C)(iii) of the Act. 
These included imputed credit expenses and billing adjustments. We made 
no adjustments for discounts or rebates since the invoice price is 
already net of these discounts and rebates. In accordance with sections 
773(a)(6)(A) and (B) of the Act, we deducted home market packing costs 
and added U.S. packing costs.
    We made the following adjustments to Nova Hut's reported home 
market sales data: (1) We recalculated the imputed credit expenses by 
adding back to the gross price, on-invoice billing adjustments made for 
orders that did not meet a minimum quantity requirement; (2) for sales 
with missing payment dates, the Department set the date of payment as 
the projected preliminary results date; (3) we deleted seamless pipe 
products that were sold as an overrun or non-prime product since 
overrun and non-prime seamless pipe were not sold in the U.S. market; 
and (4) we used the revised variable cost of manufacturing and total 
cost of manufacturing reported in the COP database and CV database to 
calculate our difference in merchandise adjustment, as noted above in 
the Cost of Production Analysis section. See Preliminary Calculation 
Memorandum for Nova Hut, a.s., dated January 28, 2000, on file in the 
CRU.

Currency Conversions

    We made currency conversions into United States dollars in 
accordance with section 773A(a) of the Act based on exchange rates in 
effect on the dates of the United States sales, as provided by the Dow 
Jones Business Information Services.

Verification

    In accordance with section 782(i) of the Act, we intend to verify 
all information relied upon in making our final determination.

Suspension of Liquidation

    In accordance with section 733(d) of the Act, we are directing 
Customs to suspend liquidation of all entries of seamless pipe products 
from the Czech Republic, 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 Customs to require a cash 
deposit or the posting of a bond equal to the weighted-average amount 
by which the NV exceeds the EP, as indicated in the chart below. These 
instructions suspending liquidation will remain in effect until further 
notice.
    The weighted-average dumping margins are provided below.

------------------------------------------------------------------------
                                                                Margin
                   Manufacturer/exporter                      (percent)
------------------------------------------------------------------------
Nova Hut...................................................        12.55
All Others.................................................        12.55
------------------------------------------------------------------------

ITC Notification

    In accordance with section 733(f) of the Act, we have notified the 
ITC of our

[[Page 5604]]

determination. If our final antidumping determination is affirmative, 
the ITC will determine whether these imports are materially injuring, 
or threaten material injury to, the United States industry. The 
deadline for that ITC determination would be the later of 120 days 
after the date of this preliminary determination or 45 days after the 
date of our final determination.

Public Comment

    Case briefs for this investigation must be submitted no later March 
16, 2000. Rebuttal briefs must be filed within five 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. 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 this investigation proceeds normally, we will make our final 
determination no later than 135 days after the date of publication of 
this notice in the Federal Register.
    This determination is issued and published pursuant to sections 
733(d) and 777(i)(1) of the Act.

    Dated: January 28, 2000.
Holly A. Kuga,
Acting Assistant Secretary for Import Administration.
[FR Doc. 00-2583 Filed 2-3-00; 8:45 am]
BILLING CODE 3510-DS-P