[Federal Register Volume 65, Number 156 (Friday, August 11, 2000)]
[Notices]
[Pages 49227-49229]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-20446]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-827]


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

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

EFFECTIVE DATE: August 11, 2000.

FOR FURTHER INFORMATION CONTACT: John Brinkmann or Russell Morris, 
Group II, Office 6, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
2786.

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 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-589, ASTM A-795, and the American Petroleum Institute 
(``API'') 5L specifications and meeting the physical parameters 
described below, regardless of application, with the exception of the 
exclusions discussed below. The scope of this order also includes all 
other products used in standard, line, or pressure pipe applications 
and meeting the physical parameters described below, regardless of 
specification, with the exception of the exclusions discussed below. 
Specifically included within the scope of this order 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,

[[Page 49228]]

threaded, or threaded and coupled), or surface finish.
    The seamless pipes subject to this order 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 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 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 exclusions discussed below, 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-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, such products are covered by the 
scope of this order.
    Specifically excluded from the scope of this order are:
    A. 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-589, 
ASTM A-795, and API 5L specifications and are not used in standard, 
line, or pressure pipe applications.
    B. Finished and unfinished oil country tubular goods (``OCTG''), 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.
    C. Products produced to the A-335 specification unless they are 
used in an application that would normally utilize ASTM A-53, ASTM A-
106, ASTM A-333, ASTM A-334, ASTM A-589, ASTM A-795, and API 5L 
specifications.
    D. Line and riser pipe for deepwater application, i.e., line and 
riser pipe that is (1) used in a deepwater application, which means for 
use in water depths of 1,500 feet or more; (2) intended for use in and 
is actually used for a specific deepwater project; (3) rated for a 
specified minimum yield strength of not less than 60,000 psi; and (4) 
not identified or certified through the use of a monogram, stencil, or 
otherwise marked with an API specification (e.g., ``API 5L'').
    With regard to the excluded products listed above, the Department 
will not instruct the U.S. Customs Service (``U.S. 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 utilized in a covered 
application. If such information is provided, the Department 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 a covered application 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-335 specification is being used in an A-106 application, it will 
require end-use certifications for imports of that specification. 
Normally the Department 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, the

[[Page 49229]]

Department 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 
U.S. 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 26, 2000, the 
Department published its affirmative final determination of the 
antidumping duty investigation of certain large diameter carbon and 
alloy seamless standard, line and pressure pipe from Mexico (Final 
Determination of Sales at Less Than Fair Value: Certain Large Diameter 
Carbon and Alloy Seamless Standard, Line and Pressure Pipe from Mexico, 
65 FR 39358). On June 26, 2000, we received ministerial error 
allegations, timely filed pursuant to section 351.224(c)(2) of the 
Department's regulations, from the respondent \1\ regarding the 
Department's final margin calculations. On June 30, 2000, we received 
rebuttal comments from the petitioners.\2\ TAMSA alleged that the 
Department incorrectly calculated the variable cost of manufacturing 
and normal value (``NV''). The petitioner noted in its rebuttal 
comments that the Department properly calculated the NV.
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    \1\ The respondent in this investigation is Tubos de Acero de 
Mexico (``TAMSA'').
    \2\ The petitioners in this investigation are: U.S. Steel Group, 
Lorain Tubular Co. LLC (both units of USX Corp.), and the United 
Steel Workers of America.
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    In accordance with section 735(e) of the Act, we have determined 
that a ministerial error was made in our final margin calculations. For 
a more detailed discussion of the ministerial error allegations, see 
the memorandum, Amended Final Determination in the Antidumping Duty 
Investigation of Certain Large Diameter Carbon and Alloy Seamless 
Standard, Line and Pressure Pipe from Mexico: Clerical Error 
Allegations, dated August 3, 2000, which is on file in the Central 
Records Unit, of the main Department building (``Room B-099''). We are 
amending the final determination of the antidumping duty investigation 
of certain large diameter carbon and alloy seamless standard, line and 
pressure pipe from Mexico to correct the ministerial error. The revised 
final weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                               Weighted-average margin
           Exporter/Manufacturer                     percentage
------------------------------------------------------------------------
Tubos de Acero de Mexico..................  15.05
All Others................................  15.05
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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 large 
diameter carbon and alloy seamless standard, line and pressure pipe 
from Mexico.
    Therefore, in accordance with section 736(a)(1) of the Act, the 
Department will direct 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 large 
diameter carbon and alloy seamless standard, line and pressure pipe 
from Mexico. 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 5587). 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 margin
           Exporter/Manufacturer                     percentage
------------------------------------------------------------------------
Tubos de Acero de Mexico..................  15.05
All Others................................  15.05
------------------------------------------------------------------------

    This notice constitutes the antidumping duty order with respect to 
certain large diameter carbon and alloy seamless standard, line and 
pressure pipe from Mexico, 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. 00-20446 Filed 8-10-00; 8:45 am]
BILLING CODE 3510-DS-P