[Federal Register Volume 68, Number 51 (Monday, March 17, 2003)]
[Notices]
[Pages 12672-12674]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-6340]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-485-805]


Certain Small Diameter Carbon and Alloy Seamless Standard, Line, 
and Pressure Pipe From Romania: Final Results of Antidumping Duty 
Administrative Review

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

SUMMARY: On September 10, 2002, the Department of Commerce (the 
Department) published the preliminary results of the antidumping duty 
administrative review of seamless pipe from Romania. This review covers 
one manufacturer/exporter of the subject merchandise. The period of 
review is February 4, 2000 through July 31, 2001. Based on our analysis 
of comments received, these final results differ from the preliminary 
results. The final results are listed below in the ``Final Results of 
Review'' section.

EFFECTIVE DATE: March 17, 2003.

FOR FURTHER INFORMATION CONTACT: Magd Zalok or Martin Claessens, Office 
5, Group II, AD/CVD Enforcement, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
4162 and (202) 482-5451, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On May 10, 2002, the Department received a letter from the 
Government of Romania (GOR) requesting a review of the status of 
Romania as a non-market economy (NME) country, either in a free-
standing investigation or in the context of this administrative review. 
On September 10, 2002, in response to the GOR's request, the Department 
initiated an inquiry into Romania's NME status in the context of the 
instant administrative review.
    At the same time, the Department of Commerce (the Department) 
published the preliminary results of the antidumping duty 
administrative review of seamless pipe from Romania. See Certain Small 
Diameter Carbon and Alloy Seamless Standard, Line and Pressure Pipe 
From Romania: Preliminary Results of Antidumping Duty Administrative 
Review and Postponement of Final Results, 67 FR 57388 (September 10, 
2002) (Preliminary Results). The review covers one manufacturer/
exporter, S.C. Silcotub S.A. (Silcotub).
    We invited parties to comment on our preliminary results of review. 
On October 10, 2002, Silcotub and United States Steel Corporation (U.S. 
Steel), a domestic producer of subject merchandise and interested party 
in this review, filed case briefs. Both parties filed rebuttal briefs 
on October 22, 2002.

Scope of the Order

    The products covered by the 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 the 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 the order are 
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 the 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 Harmonized Tariff Schedule of 
the United States (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 pipes 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 pipes 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.

[[Page 12673]]

    Seamless water well pipes (ASTM A-589) and seamless galvanized 
pipes 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 pipes 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 the 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 the 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 the order. Specifically excluded 
from the scope of the 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 Oil Country Tubular 
Goods (OCTG) are excluded from the scope of the 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 U.S. Steel 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 U.S. Steel, 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.

Nonmarket-Economy Country Status

    The Department has treated Romania as an NME country in all past 
antidumping duty investigations and administrative reviews. See, e.g., 
Notice of 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 (June 23, 2000); and Notice of Final 
Determination of Antidumping Duty Investigation: Certain Hot-Rolled 
Carbon Steel Flat Products from Romania, 66 FR 49625 (September 28, 
2001). A determination that a country is an NME country remains in 
effect until it is revoked by the Department. See section 771(18)(C)(i) 
of the Tariff Act of 1930, as amended (the Act).
    As indicated above, on September 10, 2002, in response to the GOR's 
request, the Department initiated an inquiry into Romania's NME status 
in the context of the instant administrative review. As part of the 
inquiry, the Department invited the public to comment on the GOR's 
request. The Department received and granted requests from the public 
for time extensions to submit comments. All comments were received by 
November 8, 2002, followed by rebuttal comments by December 30, 2002.
    In determining whether a country will be accorded market-economy 
status for purposes of antidumping and countervailing duty proceedings, 
the Department considers, consistent with the factors described in 
section 771(18)(B) of the Act, the extent to which resources are 
allocated by market or government, taking into account currency and 
labor markets, pricing, and production and investment decisions. After 
a thorough examination of all relevant information available to the 
Department, we have reclassified Romania as a market economy for 
purposes of antidumping and countervailing duty proceedings, pursuant 
to section 771(18)(A) of the Act, effective January 1, 2003. See 
Memorandum from Lawrence Norton, Import Policy Analyst, to Joseph 
Spetrini, Acting Assistant Secretary for Import Administration: 
Antidumping Duty Administrative Review of Certain Small Diameter Carbon 
and Alloy Seamless Standard, Line and Pressure Pipe from Romania--Non-
Market Economy Status Review (March 10, 2003). However, because the POR 
for the 2000/2001 review predates the effective date of the NME status 
determination (i.e., January 1, 2003), the Department has continued to 
utilize the NME methodology in reaching the final results for this 
review.

[[Page 12674]]

Separate Rates

    Silcotub has requested a separate, company-specific antidumping 
duty rate in this review. In the preliminary results, we found that 
Silcotub had met the criteria for the application of separate 
antidumping duty rates. See Preliminary Results, 67 FR at 57390. We 
have not received any other information since the preliminary results 
which would warrant reconsideration of our separate rates determination 
with respect to this company. We therefore determine that Silcotub 
should be assigned an individual dumping margin in this administrative 
review.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this review are addressed in the ``Issues and Decision Memorandum'' 
(Decision Memorandum) from Holly A. Kuga, Acting Deputy Assistant 
Secretary, Import Administration, to Joseph Spetrini, Acting Assistant 
Secretary for Import Administration, dated March 10, 2003, which is 
hereby adopted by this notice.
    A list of the issues which parties have raised and to which we have 
responded in the Decision Memorandum is attached to this notice as an 
Appendix. Parties can find a complete discussion of all issues raised 
in this review and the corresponding recommendations in this public 
memorandum, which is on file in the Central Records Unit, room B-099 of 
the main Commerce building.
    In addition, a complete version of the Decision Memorandum can be 
accessed directly on the Internet at http://ia.ita.doc.gov/. The paper 
copy and electronic version of the Decision Memorandum are identical in 
content.

Changes From the Preliminary Results

    Based on our analysis of comments received, we have made certain 
changes in the margin calculations. We have also revised certain 
financial ratios, and the factor value for natural gas used in the 
calculation of the normal value. These changes are discussed in the 
relevant section of the Decision Memorandum.

Final Results of Review

    As a result of our review, we determine that the following 
weighted-average percentage margin exists for the period February 4, 
2000 through July 31, 2001:

------------------------------------------------------------------------
                                                                Margin
                   Manufacturer/exporter                      (percent)
------------------------------------------------------------------------
S.C. Silcotub S.A..........................................         0.04
------------------------------------------------------------------------

    The Department shall 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 importer-specific 
assessment rates by dividing the dumping margin found on the subject 
merchandise examined by the entered value of such merchandise. Where 
the importer-specific assessment rate is above de minimis we will 
instruct the Customs Service to assess antidumping duties on that 
importer's entries of subject merchandise. The Department will issue 
appropriate assessment instructions directly to the Customs Service 
within 15 days of publication of these final results of review.
    Furthermore, the following deposit requirements will be effective 
for all shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of these 
final results of administrative review, as provided by section 751(a) 
of the Act: (1) For Silcotub, because the margin is de minimis, no cash 
deposit will be required, (2) for merchandise exported by manufacturers 
or exporters not covered in this review but covered in a previous 
segment of this proceeding, the cash deposit rate will continue to be 
the company-specific rate published in the prior segment of the 
proceeding in which that manufacturer or exporter participated; (3) if 
the exporter is not a firm covered in this review or in any previous 
segment of this proceeding, but the manufacturer is, the cash deposit 
rate will be that established for the manufacturer of the merchandise 
in these final results of review or in the most recent segment of the 
proceeding in which that manufacturer participated; and (4) if neither 
the exporter nor the manufacturer is a firm covered in this review or 
in any previous segment of this proceeding, the cash deposit rate will 
be 13.06 percent, the Romania-wide rate established in the less-than-
fair-value investigation. These deposit requirements shall remain in 
effect until publication of the final results of the next 
administrative review.
    This notice also serves as the final 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 in the subsequent 
assessment of double antidumping duties.
    This notice also serves as the only reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the return/destruction or conversion to judicial protective 
order of proprietary information disclosed under APO in accordance with 
19 CFR 351.305(a)(3). Failure to comply is a violation of the APO.
    This determination is issued and published in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    March 10, 2003.
Joseph Spetrini,
Acting Assistant Secretary for Import Administration.

Appendix

Comments and Responses

    Comment 1: Use of Market-Economy Price to Value Lacquer.
    Comment 2: Basis for the Financial Ratios for Depreciation, 
Selling, General and Administrative (SG&A) Expenses, Interest Expenses, 
and Profit.
    Comment 3: Valuation of Natural Gas.
    Comment 4: Valuation of Electricity.

[FR Doc. 03-6340 Filed 3-14-03; 8:45 am]
BILLING CODE 3510-DS-P