[Federal Register Volume 67, Number 3 (Friday, January 4, 2002)]
[Notices]
[Pages 566-568]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-244]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-828]


Notice of Final Determination of Sales at Less Than Fair Value: 
Welded Large Diameter Line Pipe From Mexico

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

ACTION: Notice of the final determination of sales at less than fair 
value investigation: welded large diameter line pipe from Mexico.

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SUMMARY: On August 15, 2001, the Department of Commerce 
(``Department'') published the preliminary determination in the less 
than fair value (``LTFV'') investigation of welded large diameter line 
pipe from Mexico. See Notice of Preliminary Determination of Sales at 
Less Than Fair Value: Welded Large Diameter Line Pipe from Mexico, 66 
FR 42841 (August 15, 2001) (``Preliminary Determination''). This 
investigation covers one manufacturer/exporter of the subject 
merchandise.
    Based upon our verification of the data and analysis of the 
comments received, we have not made changes to our margin calculations. 
Therefore, the final determination does not differ from the preliminary 
determination. The final weighted-average dumping margin is listed 
below in the section titled ``Continuation of Suspension of 
Liquidation.''

EFFECTIVE DATE: January 4, 2002.

FOR FURTHER INFORMATION CONTACT: Mesbah Motamed or Robert Bolling, 
Enforcement Group III, Office 9, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue, NW., Washington, DC 20230, telephone 202-482-1382 (Motamed) or 
202-482-3434 (Bolling), fax 202-482-1388.

SUPPLEMENTARY INFORMATION:

Applicable Statute

    Unless otherwise indicated, all citations to the Tariff Act of 1930 
(``Act'') are references to the provisions effective January 1, 1995, 
the effective

[[Page 567]]

date of the amendments made to the Act by the Uruguay Round Agreements 
Act (``URAA''). In addition, unless otherwise indicated, all citations 
to the Department's regulations are to the regulations at 19 CFR part 
351 (2000).

Period of Investigation

    The period of investigation (``POI'') is January 1, 2000 through 
December 31, 2000.

Final Determination

    We determine that certain welded large diameter line pipe from 
Mexico is being, or is likely to be, sold in the United States at less 
than fair value (``LTFV''), as provided in section 735 of the Act. The 
estimated margins of sales at LTFV are shown in the ``Continuation of 
Suspension of Liquidation'' section of this notice.

Background

    On January 30, 2001, the Department initiated the above referenced 
investigation. See Notice of Initiation of Antidumping Duty 
Investigations: Welded Large Diameter Line Pipe from Mexico and Japan, 
66 FR 11266 (February 23, 2001). On August 15, 2001, the Department 
published a notice of its preliminary determination in the 
investigation. See Preliminary Determination, 66 FR 42841. From October 
31, 2001 through November 5, 2001, the Department conducted a sales and 
cost verification for Productora Mexicana de Tuberia (``PMT''). See 
Sales and Cost Verification Report (November 14, 2001). We invited 
parties to comment on our Preliminary Determination. Petitioners 
submitted their case brief (``Petitioners' Brief'') on November 21, 
2001. PMT did not submit a case brief or a rebuttal brief. The 
Department has conducted and completed the investigation in accordance 
with section 735 of the Act.

Scope of the Investigation

    The product covered by this investigation is certain welded carbon 
and alloy line pipe, of circular cross section and with an outside 
diameter greater than 16 inches, but less than 64 inches, in diameter, 
whether or not stenciled. This product is normally produced according 
to American Petroleum Institute (API) specifications, including Grades 
A25, A, B, and X grades ranging from X42 to X80, but can also be 
produced to other specifications.
    Specifically not included within the scope of this investigation is 
American Water Works Association (AWWA) specification water and sewage 
pipe and the following size/grade combinations of line pipe:
     Having an outside diameter greater than or equal to 18 
inches and less than or equal to 22 inches, with a wall thickness 
measuring 0.750 inch or greater, regardless of grade.
     Having an outside diameter greater than or equal to 24 
inches and less than 30 inches, with wall thickness measuring greater 
than 0.875 inches in grades A, B, and X42, with wall thickness 
measuring greater than 0.750 inches in grades X52 through X56, and with 
wall thickness measuring greater than 0.688 inches in grades X60 or 
greater.
     Having an outside diameter greater than or equal to 30 
inches and less than 36 inches, with wall thickness measuring greater 
than 1.250 inches in grades A, B, and X42, with wall thickness 
measuring greater than 1.000 inches in grades X52 through X56, and with 
wall thickness measuring greater than 0.875 inches in grades X60 or 
greater.
     Having an outside diameter greater than or equal to 36 
inches and less than 42 inches, with wall thickness measuring greater 
than 1.375 inches in grades A, B, and X42, with wall thickness 
measuring greater than 1.250 inches in grades X52 through X56, and with 
wall thickness measuring greater than 1.125 inches in grades X60 or 
greater.
     Having an outside diameter greater than or equal to 42 
inches and less than 64 inches, with a wall thickness measuring greater 
than 1.500 inches in grades A, B, and X42, with wall thickness 
measuring greater than 1.375 inches in grades X52 through X56, and with 
wall thickness measuring greater than 1.250 inches in grades X60 or 
greater.
     Having an outside diameter equal to 48 inches, with a wall 
thickness measuring 1.0 inch or greater, in grades X-80 or greater.
    The product currently is classified under U.S. Harmonized Tariff 
Schedule (``HTSUS'') item numbers 7305.11.10.30, 7305.11.10.60, 
7305.11.50.00, 7305.12.10.30, 7305.12.10.60, 7305.12.50.00, 
7305.19.10.30, 7305.19.10.60, and 7305.19.50.00. Although the HTSUS 
item numbers are provided for convenience and customs purposes, the 
written description of the scope is dispositive.

Analysis of Comments Received

    All issues raised in the case briefs to this investigation are 
addressed in the December 28, 2001 Issues and Decision Memorandum 
(``Decision Memo'') from Joseph A. Spetrini, Deputy Assistant Secretary 
for Import Administration, Group III to Faryar Shirzad, Assistant 
Secretary for Import Administration, which is hereby adopted by this 
notice. A list of the issues which parties have raised and to which we 
have responded, and other issues addressed, all of which are in the 
Decision Memo, is attached to this notice as an Appendix. Parties can 
find a complete discussion of all issues raised in this investigation 
and the corresponding recommendations in the Decision Memo, a public 
memorandum which is on file at the U.S. Department of Commerce, in the 
Central Records Unit, in room B-099. In addition, a complete version of 
the Decision Memo can be accessed directly on the Web at http://ia.ita.doc.gov. The paper copy and electronic version of the Decision 
Memo are identical in content.

Use of Total Adverse Facts Available

    In the preliminary determination, the Department applied facts 
available to the mandatory respondent. Deficiencies present in 
respondent's response made it impossible for the Department to 
appropriately calculate a preliminary antidumping duty margin. 
Consequently, the Department assigned PMT-Tubacero the rate of 49.86 
percent, the margin calculated from information in the petition and 
used for initiation. The Department also applied the 49.86 percent 
margin as the ``All Others'' rate.
    Subsequent to the preliminary determination, we have determined 
that the use of total adverse facts available is appropriate for the 
final determination for our analysis of PMT and its collapsed affiliate 
Tubacero, hereinafter referred to as ``PMT-Tubacero.'' For a discussion 
of our determination with respect to this matter, see the Decision 
Memo. Consequently, we have continued to apply the rate of 49.86 
percent for purposes of this final determination.

All-Others Rate

    Section 735(c)(5)(B) of the Act provides that, where the estimated 
weighted-average dumping margins established for all exporters and 
producers individually investigated are zero or de minimis margins, 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. This 
provision contemplates that we weight-average margins other than facts 
available margins to establish the ``all others'' rate. Where the data 
do not permit weight-averaging such rates, the Statement of 
Administrative Action accompanying the URAA, H.R. Doc. No.

[[Page 568]]

316, 103d Cong., 2d Sess. 870 (1994) (``SAA'') at 873 provides that we 
may use other reasonable methods. Because the petition contained only 
an estimated price-to-price dumping margin, which the Department 
adjusted for purposes of initiation, there are no additional estimated 
margins available with which to create the ``all others'' rate. 
Therefore, we applied the published margin of 49.86 percent as the 
``all others'' rate.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we are 
directing the Customs Service to continue to suspend liquidation of all 
entries of subject merchandise from Mexico that are entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of the Preliminary Determination in the Federal Register. 
The Customs Service shall continue to require a cash deposit or posting 
of a bond equal to the estimated amount by which the normal value 
exceeds the U.S. price as shown below. The suspension of liquidation 
instructions will remain in effect until further notice.

                 Stainless Steel Butt-Weld Pipe Fittings
------------------------------------------------------------------------
                                                              Weighted-
                                                               average
               Producer/Manufacturer/Exporter                   margin
                                                              (percent)
------------------------------------------------------------------------
PMT-Tubacero...............................................        49.86
All Others.................................................        49.86
------------------------------------------------------------------------

ITC Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (``ITC'') of our final determination. As 
our final determination is affirmative, the ITC will, within 45 days, 
determine whether these imports are materially injuring, or threaten 
material injury to, the U.S. industry. If the ITC determines that 
material injury or threat of material injury does not exist, the 
proceeding will be terminated and all securities posted will be 
refunded or canceled. If the ITC determines that such injury does 
exist, the Department will issue an antidumping duty order directing 
Customs to assess antidumping duties on all imports of the subject 
merchandise entered or withdrawn from warehouse for consumption on or 
after the effective date of the suspension of liquidation.

Notification Regarding APO

    This notice also serves as a reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305. Timely notification of return/
destruction of APO materials or conversion to judicial protective order 
is hereby requested. Failure to comply with the regulations and the 
terms of the APO is a sanctionable violation.
    This determination is issued and published pursuant to sections 
735(d) and 777(i)(1) of the Act.

    Dated: December 28, 2001.
Richard W. Moreland,
Acting Assistant Secretary for Import Administration.

Appendix

Issues in the Decision Memo

    1. The Department should continue to collapse respondent 
Productora Mexicana de Tuberia, S.A. de C.V. (``PMT'') with its 
affiliate, Tubacero, S.A. de C.V. (``Tubacero'').
    2. The Department should apply adverse facts available in 
determining the antidumping duty margin.

[FR Doc. 02-244 Filed 1-3-02; 8:45 am]
BILLING CODE 3510-DS-P