[Federal Register Volume 67, Number 101 (Friday, May 24, 2002)]
[Notices]
[Pages 36570-36572]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-13147]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-870]


Notice of Final Determination of Sales at Less Than Fair Value: 
Certain Circular Welded Carbon-Quality Steel Pipe from the People's 
Republic of China

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

EFFECTIVE DATE: May 24, 2002.

FOR FURTHER INFORMATION CONTACT: Alex Villanueva or Amy Ryan at (202) 
482-3208 and (202) 482-0961, respectively, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, N.W., Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

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. In addition, unless otherwise 
indicated, all citations to the Department of Commerce (``Department'') 
regulations are to the regulations at 19 C.F.R. Part 351 (2001).

Final Determination

    We determine that certain circular welded carbon-quality steel pipe 
(``pipe'') from the People's Republic of China (``PRC'') 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.

Case History

    The preliminary determination in this investigation was published 
on December 31, 2001. See Notice of Preliminary Determination of Sales 
at Less Than Fair Value: Certain Circular Welded Carbon-Quality Steel 
Pipe From the People's Republic of China, 66 FR 67500 (``Preliminary 
Determination''). This investigation covers three mandatory 
respondents, WeiFang East Steel Pipe Co., Ltd. (``WeiFang''); Tianjin 
Shuang Jie Steel Pipe Co., Ltd. (``Shuang Jie''); and Baosteel Group 
International Trade Corporation (``Baosteel''). In addition, there are 
five voluntary respondents, Tai Feng Qiao Metal Products Co. (``Tai 
Feng Qiao''); Pangang Group International Economic and Trade 
Corporation (``Pangang International''); ZheJiang JingZhou HuaLong 
Petroleum Corrosion-Resistant Steel Pipe Co., Ltd. (Jinzhou''); Walsall 
Steel Pipe Industrial Co., Ltd. (``Walsall''); China MinMetals ZhuHai 
Co., Ltd. (``ZhuHai''). Petitioners in this investigation are Allied 
Tube & Conduit Corporation, Century Tube Corporation, IPSCO Tubulars, 
Inc., Laclede Steel, LTV Copperweld, Maverick Tube Corporation, 
Northwest Pipe Company, Sharon Tube Company, Western Tube & Conduit 
Corporation, Wheatland Tube Company and the United Steelworkers of 
America, AFL-CIO (collectively, ``Petitioners'').
    On January 16, 2002, pursuant to a request from Shuang Jie, the 
Department postponed the final determination until May 15, 2002. See 
Notice of Postponement of Final Determination of Antidumping Duty 
Investigation: Certain Circular Welded Carbon-Quality Steel Pipe From 
the People's Republic of China, 67 FR 2189 (January 16, 2002). The 
Department verified the responses to the antidumping questionnaire of 
Baosteel and one of its suppliers from January 16-19, 2002; WeiFang 
from February 3-5, 2002; and Shuang Jie from February 7-9, 2002. After 
releasing verification reports, we invited parties to comment on these 
reports and our Preliminary Determination. We received comments from 
petitioners and all three mandatory respondents on March 20, 2002 and 
rebuttal briefs from the same parties on March 25, 2002. At the 
requests of Shuang Jie and petitioners, a hearing was held on April 15, 
2002.
    Based on our analysis of verification findings and the comments 
received, we have made changes in the margin calculation. Therefore, 
the final determination differs from the Preliminary Determination.

Period of Investigation

    The period of investigation (``POI'') is October 1, 2000 through 
March 31, 2001. This period corresponds to the two most recent fiscal 
quarters prior to the month of the filing of the petition (i.e. May 24, 
2001). See 19 C.F.R. 351.204(b)(1).

Scope of Investigation

    The products covered by this investigation are certain welded 
carbon-quality steel pipes and tubes, of circular cross-section, with 
an outside diameter of 0.372 inches (9.45 mm) or more, but not more 
than 16 inches (406.4 mm), regardless of wall thickness, surface finish 
(black, galvanized, or painted), end finish (plain end, beveled end, 
grooved, threaded, or threaded and coupled), or industry specification 
(ASTM, proprietary, or other), generally known as standard pipe and 
structural pipe.
    Standard pipes and tubes are intended for the low-pressure 
conveyance of water, steam, natural gas, air, and other liquids and 
gases in plumbing and heating systems, air conditioning units, 
automatic sprinkler systems, and other related uses. Standard pipe may 
carry liquids at elevated temperatures but may not be subject to the 
application of external heat. It may also be used for light load-
bearing and mechanical applications, such as for fence tubing, and for 
protection of electrical wiring, such as conduit shells, and for 
structural applications in general construction. It primarily is made 
to American Society for Testing and Materials (ASTM) A-53, A-135, and 
A-795 specifications, but can also be made to the British Standard 
(BS)-1387 specification.

[[Page 36571]]

    Structural pipe is intended for use in the construction of bridges 
and buildings, and general structural applications. It also can be used 
for making steel scaffolding and for piling applications. It primarily 
is made to ASTM A-500 and A-252 specifications.
    Hence, specifically included within the scope of this investigation 
are products stenciled to the ASTM standards A-53, A-135, A-795, A-120, 
A-500, A-252, or their equivalents. Standard and structural pipe 
products may also be produced to proprietary specifications rather than 
to industry standard. This is often the case with fence tubing, for 
example.
    The scope does not include boiler tubes, pressure tubing, 
mechanical tubing, finished conduit, oil country tubular goods (OCTG), 
and line pipe. However, with regard to these excluded products, if 
petitioners or other interested parties provide to the Department 
reasonable grounds to believe or suspect that the products are being 
used in a standard or structural application, the Department may 
instruct the U.S. Customs Service to require end-use certifications. In 
addition, line pipe meeting the American Petroleum Institute (API) line 
pipe is excluded from the scope of this investigation, and any 
resultant antidumping duty order, if covered by the scope of another 
antidumping duty order from the same country.
    The standard pipe products that are the subject of this 
investigation are currently classifiable in the Harmonized Tariff 
Schedule of the United States (HTSUS) subheadings 7306.30.10 and 
7306.30.50. This investigation also covers dual-certified A-53/API or 
single certified pipe that enters the United States if its is used in, 
or intended for use in, standard pipe or structural pipe applications. 
Such certified pipe may include API-5L or API-5L X-42 pipe. Although 
the HTSUS subheadings are provided for convenience and U.S. Customs 
purposes, the written description of the merchandise under 
investigation is dispositive.

Non-Market Economy

    The Department has treated the PRC as a non-market economy 
(``NME'') country in all its past antidumping investigations. See 
Notice of Final Determination of Sales at Less Than Fair Value: Honey 
from the People's Republic of China, 66 FR 50608 (October 4, 2001); 
Notice of Final Determination of Sales at Less Than Fair Value: Certain 
Folding Gift Boxes from the People's Republic of China, 66 FR 58115 
(November 20, 2001). A designation as a NME country remains in effect 
until it is revoked by the Department. See section 771(18)(C) of the 
Act. The respondents in this investigation have not requested a 
revocation of the PRC's NME status. Therefore, we have continued to 
treat the PRC as a NME in this investigation. For further details, see 
the Preliminary Determination.

Separate Rates

    In our Preliminary Determination, we found that the mandatory 
respondents, Baosteel, Shuang Jie and WeiFang, as well as the voluntary 
respondents, ZhuHai, Tai Feng Qiao, Walsall, Pangang International and 
Jinzhou met the criteria for the application of separate, company-
specific antidumping duty rates. We have not received any other 
information since the Preliminary Determination which would warrant 
reconsideration of our separates rates determination with respect to 
these companies. For a complete discussion of the Department's 
determination that the respondents are entitled to separate rates, see 
the Preliminary Determination.

The PRC-Wide Rate

    In the Preliminary Determination, we found that the use of adverse 
facts available for the PRC-wide rate was appropriate for other 
exporters in the PRC based on our presumption that those respondents 
who failed to demonstrate entitlement to a separate rate constitute a 
single enterprise under common control by the Chinese government. The 
PRC-wide rate applies to all entries of the merchandise under 
investigation except for entries from Baosteel International, Tianjin 
Shuang Jie, WeiFang, Zhuhai, Tai Feng Qiao, Walsall, Pangang 
International, and Jinzhou. We received no comments on this decision 
and for this final determination, we continue to believe that use of 
adverse facts available for the PRC-wide rate is appropriate. For 
further discussion, see Preliminary Determination.

Margins for Cooperative Exporters Not Selected

    For our final determination, consistent with our Preliminary 
Determination, we have calculated a weight-averaged margin for ZhuHai, 
Tai Feng Qiao, Walsall, Pangang International, and Jinzhou based on the 
rates calculated for those exporters that were selected to respond in 
this investigation, excluding any rates that are zero, de minimis or 
based entirely on adverse facts available. See Preliminary 
Determination. Companies receiving this rate are identified by name in 
the ``Continuation of Suspension of Liquidation'' section of this 
notice.

Surrogate Country

    For purposes of the final determination, we continue to find that 
India remains the appropriate surrogate country for the PRC. We 
received comments from a respondent in its brief, which are discussed 
in the accompanying Issues and Decision Memorandum for the Antidumping 
Duty Investigation of Circular Welded Carbon-Quality Steel Pipe from 
the People's Republic of China: 10/1/00-03/31/01 at Comments 1 and 2 
(May 15, 2002) (``Issues and Decision Memorandum''). For further 
discussion and analysis regarding the surrogate country selection for 
the PRC, see the Preliminary Determination and the Memorandum to Edward 
C. Yang from Robert Bolling on Surrogate Country Selection, on file in 
the Department's Central Records Unit, Room B-099 of the Main 
Department of Commerce Building.

Analysis of Comments Received

    All issues raised in the case briefs by parties to this 
investigation are addressed in the Issues and Decision Memorandum, 
which is adopted by this notice. A list of the issues which parties 
raised, and to which we have responded, all of which are in the Issues 
and Decision Memorandum, is attached to this notice as an Appendix. A 
complete discussion of all issues raised in this investigation and the 
corresponding recommendations in this public memorandum, is on file in 
the Central Records Unit. In addition, a complete version of the Issues 
and Decision Memorandum can be accessed directly on the Internet at 
http://ia.ita.doc.gov/. The paper copy and electronic version of the 
Issues and Decision Memorandum are identical in content.

Changes Since the Preliminary Determination

    Based on our findings at verification, and analysis of comments 
received, we have made corrections to certain respondents' reported 
factor usage rates and surrogate values . We have also corrected 
certain clerical errors in our Preliminary Determination. These changes 
are discussed in the relevant sections of the Issues and Decision 
Memorandum, the Memorandum to the File: Factors Valuation for Baosteel, 
Shuang Jie and WeiFang and the respective Analysis Memoranda for the 
Final Determination for Shuang Jie, Baosteel and Weifang (May 15, 
2002).

[[Page 36572]]

Verification

    As provided in section 782(i) of the Act, we verified the 
information submitted by the mandatory respondents for use in our final 
determination. We used standard verification procedures including 
examination of relevant accounting and production records, and original 
source documents provided by the respondents. For changes from the 
Preliminary Determination as a result of verification, see the 
respective analysis memoranda.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B)(ii) of the Act, we are 
directing the Customs Service to continue to suspend liquidation of 
entries of subject merchandise from the PRC (except certain merchandise 
exported by Baosteel and Weifang) that are entered, or withdrawn from 
warehouse, for consumption on or after December 31, 2001. We will 
instruct the Customs Service to require a cash deposit or the posting 
of a bond equal to the weighted-average amount by which the normal 
value exceeds the U.S. price, as indicated in the chart below. These 
suspension-of-liquidation instructions will remain in effect until 
further notice.
    Under the Department's NME methodology, the rate for each mandatory 
exporter is based on a comparison of the exporter's U.S. price and NV 
based on the factors of production of a specific producer (which may be 
a different party). Therefore, the exclusion of the above mentioned 
companies from an antidumping duty order (should one be issued) applies 
only to subject merchandise exported by Baosteel and produced by its 
suppliers during the period of investigation and to subject merchandise 
produced and exported by Weifang. As Baosteel's supplier names are 
proprietary, they have been identified as Supplier A and Supplier B for 
this public document. However, the supplier names have been identified 
in Analysis Memo for the Preliminary Determination of Certain Circular 
Welded Carbon-Quality Steel Pipe from the People's Republic of China 
(``PRC''): Baosteel (May 15, 2002). Merchandise that is exported by 
Baosteel or Weifang, but manufactured by producers not noted below for 
that exporter will be subject to the order, if one is issued. See 
Notice of Final Determination of Sales at Less Than Fair Value: Brake 
Drums and Brake Rotors from the People's Republic of China, 62 FR 916 
(February 28, 1997). Entries of such merchandise will be subject to the 
``China-wide'' rate.

            Certain Circular Welded Carbon-Quality Steel Pipe
------------------------------------------------------------------------
                                                                Weight-
                                                               Averaged
               Producer/Manufacturer/Exporter                   Margin
                                                               (Percent)
------------------------------------------------------------------------
Baosteel/Supplier A or Supplier B...........................           0
Shuang Jie..................................................        3.87
WeiFang.....................................................           0
Tai Feng Qiao...............................................        3.87
ZhuHai......................................................        3.87
Pangang International.......................................        3.87
Jinzhou.....................................................        3.87
Walsall.....................................................        3.87
PRC-Wide....................................................       36.42
------------------------------------------------------------------------

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (``ITC'') of our 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 officials to assess antidumping duties on all imports of 
subject merchandise entered for consumption on or after the effective 
date of the suspension of liquidation.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: May 15, 2002
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix

Comment 1: Market Economy Purchases from Country X and Country Y
Comment 2: Valuing a Respondent's Factors of Production using the other 
Respondent's Market Economy Purchases
Comment 3: Surrogate Value for Hot-Rolled Coil
Comment 4: Calculation of Zinc Usage Ratio
Comment 5: Surrogate Companies used for the Financial Ratios 
Calculation
Comment 6: Iran's Market Status in the Surrogate Value Calculation
Comment 7: Treatment of Foreign Inland Freight and Brokerage and 
Handling in Normal Value Calculation
[FR Doc. 02-13147 Filed 5-23-02; 8:45 am]
BILLING CODE 3510-DS-S