[Federal Register Volume 67, Number 174 (Monday, September 9, 2002)]
[Notices]
[Pages 57215-57217]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-22844]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-357-810]


Notice of Preliminary Results of Antidumping Duty Administrative 
Review; Oil Country Tubular Goods From Argentina

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

ACTION: Notice of preliminary results of antidumping duty 
administrative review.

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SUMMARY: In response to a request from petitioners North Star Steel 
Ohio, a division of North Star Steel Company, and United States Steel 
LLC (currently known as United States Steel Corporation), the 
Department of Commerce (the Department) is conducting an administrative 
review of the antidumping duty order on oil country tubular goods from 
Argentina. This administrative review covers imports of subject 
merchandise from Siderca S.A.I.C. (Siderca) and Acindar Industria 
Argentina de Aceros S.A. (Acindar). The period of review is August 1, 
2000, through July 31, 2001.

EFFECTIVE DATE: September 9, 2002.

FOR FURTHER INFORMATION CONTACT: Fred Baker, Mike Heaney, or Robert 
James, AD/CVD Enforcement, Group III, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW., Washington, DC 20230, telephone: 
(202) 482-2924, (202) 482-4475, or (202) 482-0649, respectively.

SUPPLEMENTARY INFORMATION:

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as amended (the Tariff Act) are references to the provisions 
effective January 1, 1995, the effective date of the amendments made to 
the Tariff Act by the Uruguay Round Agreements Act (URAA). In addition, 
unless otherwise indicated, all citations to the Department's 
regulations are to 19 CFR Part 351 (April 1, 2001).

Background

    On August 11, 1995, the Department published the antidumping duty 
order on oil country tubular goods from Argentina. See Antidumping Duty 
Order: Oil Country Tubular Goods from Argentina, 60 FR 41055 (August 
11, 1995). On August 31, 2001, North Star Steel Ohio, a division of 
North Star Steel Company, requested that the Department conduct an 
administrative review of sales of the subject merchandise made by 
Siderca. Also on August 31, 2001, United States Steel LLC, requested 
that the Department conduct an administrative review of sales of the 
subject merchandise made by Acindar. (United States Steel LLC changed 
its name to United States Steel Corporation effective January 1, 2002. 
See petitioner's submission of January 4, 2002.)
    On October 1, 2001, the Department initiated the administrative 
review. See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews and Requests for Revocation in Part, 66 FR 49924 
(October 1, 2001).
    On October 25, 2001, the Department issued its antidumping duty 
questionnaire to Acindar and Siderca. Because Acindar's home market was 
not viable, and because Acindar had no sales to any third-country 
markets, the Department did not require that Acindar respond to section 
B of the questionnaire, but did require that it respond to D of the 
questionnaire. See memoranda to the file dated November 20, 2001 and 
December 10, 2001. On November 16, 2001, the Department received 
Acindar's Section A response to the questionnaire. On December 13, 
2001, the Department received Acindar's Sections C and D responses. On 
January 28, 2002, the Department issued a supplemental questionnaire 
for sections A, C, and D of the questionnaire. Acindar submitted its 
supplemental responses on February 28, 2002. The Department verified 
Acindar's sales and cost responses from July 9 through July 13, 2002. 
The results of the verification are found in the verification report 
dated August 27, 2002, on file in the Central Records Unit of the 
Department of Commerce.
    In response to the Department's October 25, 2001, questionnaire, 
Siderca stated in a November 6, 2001, submission that it had no 
consumption entries of subject merchandise during the period of review 
(POR). Siderca submitted information on its temporary import bond 
entries on December 19, 2001. In addition, on February 20, 2002, 
Siderca submitted a written response to the Department's questions 
regarding specific entries that appeared on a Customs entries list. We 
will continue to seek confirmation of Siderca's claim that it had no 
entries of subject merchandise during the POR, and will put the results 
of our research in a memorandum which we will place on the record of 
this review in the Central Records Unit of the Department of Commerce.
    The margin for Siderca indicated below under ``Preliminary Results 
of

[[Page 57216]]

Review'' represents the margin for Siderca from the less-than-fair-
value investigation, which was the most recently completed segment of 
this proceeding in which Siderca's U.S. sales were analyzed. See Final 
Determination of Sales at Less Than Fair Value: Oil Country Tubular 
Goods from Argentina, 60 FR 33539 (June 28, 1995). The margin for 
Acindar indicated below under ``Preliminary Results of Review'' is 
based on our analysis of its data submitted for this review.

Verification

    As provided in section 782(i) of the Tariff Act, we verified the 
sales and cost information provided by Acindar using standard 
verification procedures, including on-site inspection of the 
manufacturer's facilities and the examination of relevant sales and 
financial records. Our verification results are outlined in the public 
and proprietary versions of the verification report, which are on file 
in the Central Records Unit of the Department.

Period of Review

    The POR is August 1, 2000, through July 31, 2001.

Scope of the Review

    Oil country tubular goods (OCTG) are hollow steel products of 
circular cross-section, including oil well casing and tubing of iron 
(other than cast iron) or steel (both carbon and alloy), whether 
seamless or welded, whether or not conforming to American Petroleum 
Institute (API) or non-API specifications, whether finished or 
unfinished (including green tubes and limited service OCTG products).
    This scope does not cover casing or tubing pipe containing 10.5 
percent or more of chromium. Drill pipe was excluded from this order 
beginning August 11, 2001. See Continuation of Countervailing and 
Antidumping Duty Orders on Oil Country Tubular Goods From Argentina, 
Italy, Japan, Korea and Mexico, and Partial Revocation of Those Orders 
From Argentina and Mexico With Respect to Drill Pipe, 66 FR 38630 (July 
25, 2001).
    The OCTG subject to this order are currently classified in the 
Harmonized Tariff Schedule of the United States (HTSUS) under item 
numbers: 7304.29.10.10, 7304.29.10.20, 7304.29.10.30, 7304.29.10.40, 
7304.29.10.50, 7304.29.10.60, 7304.29.10.80, 7304.29.20.10, 
7304.29.20.20, 7304.29.20.30, 7304.29.20.40, 7304.29.20.50, 
7304.29.20.60, 7304.29.20.80, 7304.29.30.10, 7304.29.30.20, 
7304.29.30.30, 7304.29.30.40, 7304.29.30.50, 7304.29.30.60, 
7304.29.30.80, 7304.29.40.10, 7304.29.40.20, 7304.29.40.30, 
7304.29.40.40, 7304.29.40.50, 7304.29.40.60, 7304.29.40.80, 
7304.29.50.15, 7304.29.50.30, 7304.29.50.45, 7304.29.50.60, 
7304.29.50.75, 7304.29.60.15, 7304.29.60.30, 7304.29.60.45, 
7304.29.60.60, 7304.29.60.75, 7305.20.20.00, 7305.20.40.00, 
7305.20.60.00, 7305.20.80.00, 7306.20.10.30, 7306.20.10.90, 
7306.20.20.00, 7306.20.30.00, 7306.20.40.00, 7306.20.60.10, 
7306.20.60.50, 7306.20.80.10, and 7306.20.80.50.
    The HTSUS subheadings are provided for convenience and customs 
purposes. Our written description of the scope of this order is 
dispositive.

Product Comparisons

    In accordance with 771(16) of the Tariff Act, we considered all 
products produced by the respondents, covered by the descriptions in 
the ``Scope of the Review'' section of this notice, supra, to be 
foreign like products for the purpose of determining appropriate 
product comparisons to U.S. sales of oil country tubular goods. 
However, Acindar's home market was not viable, and it had no sales of 
subject merchandise in any third-country markets. See Acindar's 
February 28, 2002, submission, exhibit SA-1. Therefore, we relied upon 
constructed value (CV) for purposes of determining normal value (NV).
    We relied on seven characteristics to match U.S. sales of subject 
merchandise to CV: seamless/welded, finished grade v. unfinished, end 
finish, outside diameter, length, normalized/non-full body normalized, 
and wall thickness.

Export Price

    In accordance with section 772(a) of the Tariff Act, export price 
(EP) is the price at which the subject merchandise is first sold (or 
agreed to be sold) before the date of importation by the producer or 
exporter of the subject merchandise outside of the United States to an 
unaffiliated purchaser for exportation to the United States. In 
accordance with section 772(b) of the Tariff Act, constructed export 
price (CEP) is the price at which the subject merchandise is first sold 
(or agreed to be sold) in the United States before or after the date of 
importation by or for the account of the producer or exporter of such 
merchandise or by a seller affiliated with the producer or exporter, to 
an unaffiliated purchaser, as adjusted under sections 772(c) and (d) of 
the Tariff Act. For purposes of this review Acindar has classified its 
sale(s) as EP sales. See December 13, 2001, section C response, at C-9.
    Acindar has stated that it sells to only unaffiliated trading 
companies in the United States during the POR. See November 16, 2001, 
section A response at A-14. Based on Acindar's description of its U.S. 
sales process, that it sells the merchandise directly to unaffiliated 
trading companies in the U.S. market, and did not sell in the United 
States through an affiliated U.S. importer, we preliminarily determine 
that Acinar's U.S. sales are EP sales. We calculated EP in accordance 
with section 772(a) of the Tariff Act. We based EP on packed prices for 
export to distributors in the U.S. market. We made deductions for 
foreign inland freight, international freight, domestic brokerage, and 
U.S. unloading expenses.

Normal Value

    In accordance with section 773(a)(1)(C) of the Tariff Act, to 
determine whether there was sufficient volume of sales in the home 
market to serve as a viable basis for calculating NV, we compared 
Acindar's volume of home market sales of the foreign like product to 
the volume of U.S. sales of the subject merchandise. Because Acindar's 
aggregate volume of home market sales of the foreign like product was 
less than five percent of its aggregate volume of U.S. sales for the 
subject merchandise, we determined that the home market was not viable. 
Furthermore, Acindar did not sell to third-country markets during the 
POR. See Acindar's November 16, 2001, submission, at A-3. Therefore, we 
utilized CV as the NV.
    We calculated CV as the sum of Acindar's cost of materials, 
fabrication, SG&A (including interest), profit, and U.S. packing costs. 
Our calculation of cost of materials, fabrication, SG&A, and U.S. 
packing were in accordance with section 773(e) of the Tariff Act. 
However, because Acindar's home market was not viable, we calculated 
profit from Siderca's financial statement in accordance with section 
773(e)(2)(B)(ii). We utilized its financial statement for the period 
ending March 31, 2001. We also made circumstance-of-sale adjustments to 
CV by deducting the selling expenses reported on Acindar's financial 
statement, and adding the direct selling expenses reported for 
Acindar's U.S. sales, in accordance with section 773(a)(8) of the 
Tariff Act. We also made a deduction from CV for internal taxes rebated 
upon exportation of the subject merchandise in accordance with 773(e) 
of the Tariff Act.

[[Page 57217]]

Level of Trade

    Since Acindar has no viable comparison market, and since we based 
CV selling expenses on Acindar's financial statement (which records 
selling expenses for more than just subject merchandise, and which does 
not break out selling expenses by level of trade or by merchandise), we 
have no way of conducting a level of trade analysis. For this reason we 
made no LOT adjustment to Acindar's NV.

Currency Conversion

    We made currency conversions into U.S. dollars based on the 
exchange rates in effect on the dates of the U.S. sales as certified by 
the Federal Reserve Bank, in accordance with section 773A(a) of the 
Tariff Act.

Preliminary Results of Review

    As a result of our review, we preliminarily determine the weighted-
average dumping margin for the period August 1, 2000, through July 31, 
2001, to be as follows:

------------------------------------------------------------------------
                                                                 Margin
                    Manufacturer/Exporter                      (percent)
------------------------------------------------------------------------
Acindar......................................................      65.74
Siderca......................................................       1.36
------------------------------------------------------------------------

    The Department will disclose calculations performed in connection 
with these preliminary results of review within five days of the date 
of publication of this notice in accordance with 19 CFR 351.224(b). 
Interested parties may submit case briefs and/or written comments no 
later than 30 days after the date of publication of these preliminary 
results of review. Rebuttal briefs and rebuttals to written comments, 
limited to issues raised in the case briefs and comments, may be filed 
no later than 35 days after the date of publication of this notice. 
Parties who submit argument in these proceedings are requested to 
submit with the argument: (1) A statement of the issue, (2) a brief 
summary of the argument, and (3) a table of authorities. An interested 
party may request a hearing within 30 days of publication. See CFR 
351.310(c). Any hearing, if requested, will be held 37 days after the 
date of publication, or the first business day thereafter, unless the 
Department alters the date per 19 CFR 351.310(d). The Department will 
issue the final results of these preliminary results, including the 
results of our analysis of the issues raised in any such written 
comments or at a hearing, within 120 days of publication of these 
preliminary results.

Assessment Rates

    Upon completion of this administrative review, the Department will 
determine, and the Customs Service shall assess, antidumping duties on 
all appropriate entries. In accordance with 19 CFR 351.212(b)(1), we 
have calculated an exporter/importer-specific assessment rate for 
merchandise subject to this review. The Department will issue 
appropriate assessment instructions directly to the Customs Service 
within 15 days of publication of the final results of review. Because 
Acindar did not report entered values, we plan to issue appraisement 
instructions based on reported sales quantities. If these preliminary 
results are adopted in the final results of review, we will direct the 
Customs Service to assess the resulting assessment rates against the 
entered customs quantities for the subject merchandise on each of the 
importer's/customer's entries during the review period.
    Furthermore, the following deposit requirements will be effective 
upon completion of the final results of this administrative review for 
all shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of this administrative review, as provided by section 
751(a)(1) of the Tariff Act: (1) The cash deposit rates for the 
reviewed company will be the rates established in the final results of 
the administrative review (except that no deposit will be required if 
the rate is zero or de minimis, i.e., less than 0.5 percent); (2) for 
merchandise exported by manufacturers or exporters not covered in this 
review but covered in the original less-than-fair-value (LTFV) 
investigation or a previous review, the cash deposit will continue to 
be the most recent rate published in the final determination or final 
results for which the manufacturer or exporter received a company-
specific rate; (3) if the exporter is not a firm covered in this 
review, or the original investigation, but the manufacturer is, the 
cash deposit rate will be that established for the most recent period 
for the manufacturer of the merchandise; and (4) if neither the 
exporter nor the manufacturer is a firm covered in this review, any 
previous reviews, or the LTFV investigation, the cash deposit rate will 
be 1.36 percent, the ``all others'' rate established in the LTFV 
investigation. See Antidumping Duty Order: Oil Country Tubular Goods 
from Argentina, 60 FR 41055 (August 11, 1995).
    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 351.402(f) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. 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.
    We are issuing and publishing this notice in accordance with 
sections 751(a)(1) and 777(i)(1) of the Tariff Act.

    Dated: September 3, 2002.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 02-22844 Filed 9-6-02; 8:45 am]
BILLING CODE 3510-DS-P