[Federal Register Volume 65, Number 110 (Wednesday, June 7, 2000)]
[Notices]
[Pages 36110-36112]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-14351]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-583-008]


Certain Circular Welded Carbon Steel Pipes and Tubes From Taiwan: 
Preliminary Results of Antidumping Duty Administrative Review and 
Partial Rescission of Review

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

ACTION: Notice of preliminary results of antidumping duty 
administrative review and rescission in part.

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SUMMARY: In response to a request from the petitioners, the Department 
of Commerce (the Department) is conducting an administrative review of 
the antidumping duty order on certain circular welded steel pipes and 
tubes from Taiwan. The review covers one manufacturer/exporter of the 
subject merchandise to the United States, and the period May 1, 1998 
through April 30, 1999. We find that Yieh Hsing Enterprise Co. Ltd., 
(Yieh Hsing) made sales of subject merchandise below normal value; if 
these preliminary results are adopted in our final results of 
administrative review, we will instruct the Customs Service to assess 
antidumping duties based on the difference between the export price and 
the normal value. Regarding six other companies, we rescind the review.
    Interested parties are invited to comment on these preliminary 
results. Parties who submit argument in this proceeding are requested 
to submit with the argument (1) A statement of the issue and (2) a 
brief summary of the argument (no longer than five pages, including 
footnotes).

EFFECTIVE DATE: June 7, 2000.

FOR FURTHER INFORMATION CONTACT: Thomas Killiam or Robert James, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 
20230; telephone (202) 482-5222 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 Department's regulations are to the 
regulations codified at 19 CFR Part 351 (1998).

SUPPLEMENTARY INFORMATION:

Background

    On May 28, 1999, the petitioners, Allied Tube & Conduit Corp., 
Wheatland Tube Company, and the Sawhill Tubular Division of Armco Inc., 
requested reviews of seven Taiwanese companies: An Mau Steel Co. (now 
renamed Sheng Yu Steel Co. Ltd., and hereafter referred to as Sheng 
Yu), Far East Machinery Co., Ltd. (FEMCO), Kao Hsing Chang Iron & Steel 
Corporation (KHC), Tai Feng Industries Ltd. (TFI), Yieh Hsing, Yu Din 
Steel Co. Ltd. (Yu Din), and Yieh Loong Co., Ltd. (Yieh Loong).
    We initiated the reviews on June 30, 1999 (64 FR 35124). In 
response to our requests for information, FEMCO, ShengYu, and Yieh 
Loong reported that they made no U.S. sales or shipments of subject 
merchandise during the period of review (POR). On inquiry by the

[[Page 36111]]

Department, Customs did not report any shipments by these companies 
during the POR. On September 2, 1999, petitioners withdrew their 
request as to Yu Din, KHC and Yieh Loong. Concerning TFI, that company 
ceased operations in November 1983. See Circular Welded Carbon Steel 
Pipes and Tubes from Taiwan; Final Results of Administrative Review of 
Antidumping Duty Order, 51 FR 43946 (December 5, 1986). For these 
reasons we rescind the review with respect to FEMCO, KHC, Sheng Yu, 
TFI, Yieh Loong and Yu Din, in accordance with 19 CFR 351.213(d).
    In the most recently completed review of Yieh Hsing, the Department 
disregarded below-cost home market sales which failed the cost test. 
See Certain Circular Welded Carbon Steel Pipes and Tubes From Taiwan: 
Final Results of Antidumping Duty Administrative Review, 64 FR 69488 
(December 13, 1999). Therefore, pursuant to section 773(b)(2)(A)(ii) of 
the Act, the Department has a reasonable basis to believe or suspect 
that Yieh Hsing made sales in the home market below the cost of 
production in the current review period. Accordingly, in accordance 
with section 773(b) of the Act, on January 24, 2000, the Department 
initiated an investigation of sales below cost.
    Under section 751(a)(3)(A) of the Act, the Department may extend 
the deadline for completion of an administrative review if it 
determines that it is not practicable to complete the review within the 
statutory time limit of 365 days. On January 28, 2000, the Department 
extended the time limit for the preliminary results to May 30, 2000. 
See Extension of Time Limits for Antidumping Duty Administrative 
Review, 65 FR 6359 (February 9, 2000).

Period of Review

    The review covers the period May 1, 1998 through April 30, 1999. 
The Department is conducting this review in accordance with section 751 
of the Act.

Scope of the Review

    Imports covered by this review are shipments of certain circular 
welded carbon steel pipes and tubes. The Department defines such 
merchandise as welded carbon steel pipes and tubes of circular cross 
section, with walls not thinner than 0.065 inch and 0.375 inch or more 
but not over 4\1/2\ inches in outside diameter. These products are 
commonly referred to in the industry as ``standard pipe'' and are 
produced to various American Society for Testing Materials 
specifications, most notably A-53, A-120, or A-135. Standard pipe is 
currently classified under Harmonized Tariff Schedule of the United 
States (HTSUS) item numbers 7306.30.5025, 7306.30.5032, 7306.30.5040, 
and 7306.30.5055. Although the HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the 
merchandise under review is dispositive.

Fair Value Comparisons

    To determine whether sales of subject merchandise in the United 
States were made at less than fair value, we compared export price (EP) 
to the normal value (NV), as described in the ``Export Price'' and 
``Normal Value'' sections of this notice. In accordance with section 
777A(d)(2) of the Act, we calculated monthly weighted-average prices 
for NV and compared these to individual U.S. transactions.

Export Price

    The Department treated Yieh Hsing's sales to the United States as 
EP sales, as defined in section 772(a) of the Act, because the 
merchandise was sold to unaffiliated U.S. purchasers prior to the date 
of importation and the constructed export price methodology was not 
warranted by the facts of the record. We based EP on the delivered, 
packed prices to unrelated purchasers in the United States. We made 
adjustments, where applicable, for foreign inland freight, foreign 
brokerage charges, and ocean freight in accordance with section 772(c) 
of the Act.

Normal Value

    In order to determine whether there were sufficient sales of 
certain circular welded carbon steel pipes and tubes in the home market 
(HM) to serve as a viable basis for calculating NV, we compared the 
volume of home market sales of foreign like product to the volume of 
subject merchandise sold in the United States, in accordance with 
section 773(a)(1)(C) of the Act. Yieh Hsing's aggregate volume of HM 
sales of the foreign like product were greater than five percent of its 
aggregate volume of U.S. sales of the subject merchandise. Therefore, 
we have based NV on HM sales. In accordance with section 773(a)(6) of 
the Act, we adjusted NV, where appropriate, by deducting home market 
packing expenses and adding U.S. packing expenses. We also made 
deductions from NV for HM inland freight, early payment discounts, and 
other discounts. We made an adjustment to NV for differences in credit 
expenses, pursuant to section 773(a)(6)(C) of the Act. We made 
adjustments to NV, where appropriate, for differences in costs 
attributable to differences in the physical characteristics of the 
merchandise, pursuant to section 773(a)(6)(C)(ii) of the Act.

Sales Below Cost Investigation

    In accordance with section 773(b)(1) of the Act, in determining 
whether to disregard home market sales made at prices below COP, we 
examined whether such sales were made within an extended period of time 
in substantial quantities, and whether such sales were made at prices 
which would permit recovery of all costs within a reasonable period of 
time.
    Pursuant to section 773(b)(2)(C) of the Act, where less than 20 
percent of a respondent's sales of a given model were at prices less 
than COP, we did not disregard any below-cost sales of that model 
because these below-cost sales were not made in substantial quantities. 
We found that, for certain models, 20 percent or more of the home 
market sales were sold at below-cost prices. Where 20 percent or more 
of a respondent's home market sales of a given model were at prices 
less than the COP, we disregarded the below-cost sales because such 
sales were found to be made (1) In substantial quantities within an 
extended period of time and (2) at prices which would not permit 
recovery of all costs within a reasonable period of time, in accordance 
with section 773(b)(2)(D) of the Act (i.e., the sales were made at 
prices below the weighted-average per unit COP for the POR). We used 
the remaining above-cost sales as the basis of determining NV if such 
sales existed, in accordance with section 773(b)(1).

Constructed Value

    In accordance with section 773(e)(1) of the Act, we calculated 
constructed value (CV) based on the sum of the respondent's cost of 
materials, fabrication, and general expenses. In accordance with 
section 773(e)(2)(A) of the Act, we based selling, general, and 
administrative (SG&A) expenses and profit on the amounts incurred and 
realized by Yieh Hsing in connection with the production and sale of 
the foreign like product in the ordinary course of trade for 
consumption in the home market. For selling expenses, we used the 
weighted-average HM selling expenses. Pursuant to section 773(e)(3) of 
the Act, we included U.S. packing in CV.

Product Comparisons

    Where there were no contemporaneous sales of identical or similar 
foreign like product in the comparison market to compare to U.S.

[[Page 36112]]

sales, we compared U.S. sales to most similar home market merchandise 
or to CV.

Level of Trade

    In accordance with section 773(a)(1)(B)(i) of the Act, to the 
extent practicable, we determine NV based on sales in the comparison 
market at the same level of trade (LOT). See, e.g., Certain Carbon 
Steel Plate from South Africa, Final Determination of Sales at Less 
Than Fair Value, 62 FR 61731 , 61732-33 (November 19, 1998). Yieh Hsing 
provided information with respect to its selling activities in both 
markets. Yieh Hsing offers each of its three categories of home market 
customers the same degree of sales support, including general technical 
advice and sale-specific warranty service. We therefore determine that 
Yieh Hsing sells to one level of trade in the home market. For its U.S. 
customers, Yieh Hsing provided freight and delivery arrangements, but 
no other services; otherwise, the levels of customer assistance and 
sales support which Yieh Hsing provided its home market and U.S. 
customers were not significantly different. For these reasons we 
determine that Yieh Hsing's sales in the two markets were at the same 
LOT, and no LOT adjustment is warranted.

Sales Comparisons

    To determine whether sales of certain circular welded carbon steel 
pipes and tubes in the United States were made at less than NV, we 
compared EP to the NV, as described in the ``Export Price'' and 
``Normal Value'' sections of this notice. In accordance with section 
777(A)(d)(d) of the Act, we calculated monthly weighted-average prices 
for NV and compared these to individual U.S. transactions.
    Where there were no above-cost sales of identical merchandise in 
the home market made in the ordinary course of trade to compare to U.S. 
sales, we compared U.S. sales to most similar home market merchandise, 
based on the information provided by Yieh Hsing in response to our 
antidumping questionnaire.

Preliminary Results of Review

    We preliminarily determine that the following margins exist for the 
period May 1, 1998 through April 31, 1999:

------------------------------------------------------------------------
                                                                Margin
         Manufactuer/ Exporter                 Period          (percent)
------------------------------------------------------------------------
Yieh Hsing............................  5/1/98-4/30/99              1.63
------------------------------------------------------------------------

    Interested parties may request a hearing not later than 30 days 
after publication of this notice. Interested parties may also submit 
written arguments in case briefs on these preliminary results within 30 
days of the date of publication of this notice. Rebuttal briefs, 
limited to issues raised in case briefs, may be filed no later than 
five days after the time limit for filing case briefs. Parties who 
submit arguments are requested to submit with each argument a statement 
of the issue and a brief summary of the argument. All memoranda to 
which we refer in this notice can be found in the public reading room, 
located in the Central Records Unit, room B-009 of the main Department 
of Commerce building. Any hearing, if requested, will be held two days 
after the scheduled date for submission of rebuttal briefs.
    The Department will publish the final results of this 
administrative review, including a discussion of its analysis of issues 
raised in any case or rebuttal brief or at a hearing. The Department 
will issue final results of this review within 120 days of publication 
of these preliminary results.
    Upon completion of the final results in this review, the Department 
shall determine, and the Customs Service shall assess, antidumping 
duties on all appropriate entries. In accordance with 19 CFR 351.212 
(b), we have calculated an importer/customer-specific assessment rate 
based on the ratio of the total amount of antidumping duties calculated 
for the examined sales to the quantity of those same sales. This 
Department will issue appraisement instructions on each exporter 
directly to the Customs Service.
    Furthermore, the following deposit requirements will be effective 
upon completion of the final results of this administrative review for 
all shipments of certain circular welded carbon steel pipes and tubes 
from Taiwan entered, or withdrawn from warehouse, for consumption on or 
after the publication date of the final results of this administrative 
review, as provided for by section 751(a)(1) of the Act: (1) The cash 
deposit rates for Yieh Hsing will be the rate established in the final 
results of this administrative review, except that no cash deposit will 
be required if the rate is de minimis, i.e., less than 0.50 percent; 
(2) for previously reviewed or investigated companies not listed above, 
the cash deposit rate will continue to be the company-specific rate 
published for the most recent period; (3) if the exporter is not a firm 
covered in this review, a prior review, or the original LTFV 
investigation, but the manufacturer is, the cash deposit rate will be 
the rate established for the most recent period for the manufacturer of 
the merchandise; and (4) for all other producers and/or exporters of 
this merchandise, the cash deposit rate shall be 9.7%, the ``all 
others'' rate established in the LTFV investigation. These deposit 
requirements, when imposed, shall remain in effect until publication of 
the final results of the next administrative review.
    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 351.401(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this period of review. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    This administrative review and notice are issued and published in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 
351.213(h).

    Dated: May 30, 2000.
Troy H. Cribb,
Acting Assistant Secretary for Import Administration.
[FR Doc. 00-14351 Filed 6-6-00; 8:45 am]
BILLING CODE 3510-DS-P