[Federal Register Volume 65, Number 155 (Thursday, August 10, 2000)]
[Notices]
[Pages 48963-48965]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-20252]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-485-805]


Notice of Amended Final Determination of Sales at Less Than Fair 
Value and Antidumping Duty Order: Certain Small Diameter Carbon and 
Alloy Seamless Standard, Line and Pressure Pipe From Romania

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

EFFECTIVE DATE: August 10, 2000.

FOR FURTHER INFORMATION CONTACT: Magd Zalok or Charles Riggle, Group 
II, Office 5, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
4162, (202) 482-0650, respectively.

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions effective January 1, 1995, the effective 
date of the amendments made to the Tariff Act of 1930 (the Act) by the 
Uruguay Round Agreements Act (URAA). In addition, unless otherwise 
indicated, all citations to the Department of Commerce (the Department) 
regulations refer to the regulations codified at 19 CFR part 351 (April 
1999).

Scope of Order

    The products covered by this order 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 API 
5L specifications and meeting the physical parameters described below, 
regardless of application. The scope of this order 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 order is 
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 this order is 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

[[Page 48964]]

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 order includes all seamless pipe meeting the 
physical parameters described above and produced to one of the 
specifications listed above, regardless of application, with the 
exception of the specific exclusions discussed below, 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 order. 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, with the exception of the specific 
exclusions discussed below.
    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, with the exception of the specific 
exclusions discussed below, such products are covered by the scope of 
this order.
    Specifically excluded from the scope of this order is 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 this order, 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.
    With regard to the excluded products listed above, the Department 
will not instruct Customs to require end-use certification until such 
time as petitioner or other interested parties provide to the 
Department a reasonable basis to believe or suspect that the products 
are being used in a covered application. If such information is 
provided, we will require end-use certification only for the product(s) 
(or specification(s)) for which evidence is provided that such products 
are being used in covered applications as described above. For example, 
if, based on evidence provided by petitioner, the Department finds a 
reasonable basis to believe or suspect that seamless pipe produced to 
the A-161 specification is being used in a standard, line or pressure 
application, we will require end-use certifications for imports of that 
specification. Normally we will require only the importer of record to 
certify to the end use of the imported merchandise. If it later proves 
necessary for adequate implementation, we may also require producers 
who export such products to the United States to provide such 
certification on invoices accompanying shipments to the United States.
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, our written description of the merchandise subject to 
this scope is dispositive.

Amended Final Determination

    In accordance with section 735(a) of the Act, on June 23, 2000, the 
Department published its affirmative final determination of the 
antidumping duty investigation of certain small diameter carbon and 
alloy seamless standard, line and pressure pipe from Romania (Final 
Determination of Sales at Less Than Fair Value: Certain Small Diameter 
Carbon and Alloy Seamless Standard, Line and Pressure Pipe from 
Romania, 65 FR 39125). On June 29, 2000, we received ministerial error 
allegations, timely filed pursuant to section 351.224(c)(2) of the 
Department's regulations, from the petitioners \1\ and the respondents 
\2\ regarding the Department's final margin calculations. On July 5, 
2000, we received rebuttal comments from both parties.
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    \1\ The petitioners in this investigation are Koppel Steel 
Corporation, Sharon Tube Company, U.S. Steel Group, Lorain Tubular 
Co. LLC (formally USS Kobe), Vision Metals, Inc. (Gulf States Tube 
Division) and the United Steel Workers of America.
    \2\ The respondents in this investigation are Sota 
Communications Company (Sota) and Metal Business International 
S.R.L. (MBI). Sota and MBI's respective suppliers, S.C. Silcotub, 
S.A. (Silcotub) and S.C. Petrotub, S.A. (Petrotub) are the Romanian 
producers of the subject merchandise.
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    The petitioners allege that the Department should recalculate the 
surrogate profit ratio by adding back to profit an amount equal to the 
foreign exchange losses excluded from the Department's calculation of 
general and administrative expenses. The respondents argue that the 
Department erroneously valued lacquer using U.S. dollars instead of 
German Deutschemarks (DM). Furthermore, the respondents allege that the 
Department should not rely on the submitted machine timetable for 
calculating Petrotub's electricity and gas factors and that for the 
factory overhead calculation, the category of ``Spare Parts and 
Auxiliary Materials'' should be excluded.
    In accordance with section 735(e) of the Act, we have determined 
that a ministerial error in the calculation of the German lacquer value 
was made in our final margin calculation. This determination is based 
on the information provided in the respondent's January 27, 2000, 
submission, which includes an invoice indicating that the purchase was 
made in DM. We have determined that all other allegations of 
ministerial errors made by both parties are methodological and not 
ministerial, as defined in section 735(e) of the Act. For a more 
detailed discussion of the ministerial error allegations, see the July 
21, 2000

[[Page 48965]]

memorandum, Amended Final Determination in the Antidumping Duty 
Investigation of Certain Small Diameter Carbon and Alloy Seamless 
Standard, Line and Pressure Pipe from Romania: Clerical Error 
Allegations. We are amending the final determination of the antidumping 
duty investigation of certain small diameter carbon and alloy seamless 
standard, line and pressure pipe from Romania to correct the 
ministerial error. The revised final weighted-average dumping margins 
are as follows:

------------------------------------------------------------------------
                                                              Weighted-
                                                               average
                   Exporter/manufacturer                        margin
                                                              percentage
------------------------------------------------------------------------
Sota Communication Company.................................        15.15
Metal Business International S.R.L.........................        11.08
Romania-Wide Rate..........................................        13.06
------------------------------------------------------------------------

    The Romania-wide rate applies to all entries of the subject 
merchandise except for entries from exporters/producers that are 
identified individually above.

Antidumping Duty Order

    On August 3, 2000, in accordance with section 735(d) of the Act, 
the International Trade Commission (ITC) notified the Department that a 
U.S. industry is materially injured within the meaning of section 
735(b)(1)(A) of the Act by reason of imports of certain small diameter 
carbon and alloy seamless standard, line and pressure pipe from 
Romania.
    Therefore, in accordance with section 736(a)(1) of the Act, the 
Department will direct the United States Customs Service (U.S. Customs) 
to assess, upon further advice by the Department, antidumping duties 
equal to the amount by which the normal value of the merchandise 
exceeds the export price or constructed export price of the merchandise 
for all relevant entries of small diameter carbon and alloy seamless 
standard, line and pressure pipe from Romania. This antidumping duty 
will be assessed on all unliquidated entries of imports of the subject 
merchandise that are entered, or withdrawn from warehouse, for 
consumption on or after February 4, 2000, the date of publication of 
the Department's preliminary determination in the Federal Register (65 
FR 5594). On or after the date of publication of this notice in the 
Federal Register, U.S. Customs officers must require, at the same time 
as importers would normally deposit estimated duties, cash deposits 
based on the rates listed below:

------------------------------------------------------------------------
                                                              Weighted-
                                                               average
                   Exporter/manufacturer                        margin
                                                              percentage
------------------------------------------------------------------------
Sota Communication Company.................................        15.15
Metal Business International S.R.L.........................        11.08
Romania-Wide Rate..........................................        13.06
------------------------------------------------------------------------

    This notice constitutes the antidumping duty order with respect to 
certain small diameter carbon and alloy seamless standard, line and 
pressure pipe from Romania, pursuant to section 736(a) of the Act. 
Interested parties may contact the Central Records Unit, Room B-099 of 
the main Commerce building, for copies of an updated list of 
antidumping duty orders currently in effect.
    This order is issued and published in accordance with section 
736(a) of the Act and 19 CFR 351.211.

    Dated: August 4, 2000.
Troy H. Cribb,
Acting Assistant Secretary for Import Administration.
[FR Doc. 00-20252 Filed 8-9-00; 8:45 am]
BILLING CODE 3510-DS-P