[Federal Register Volume 68, Number 130 (Tuesday, July 8, 2003)]
[Notices]
[Pages 40627-40629]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-17217]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-827]


Notice of Final Results and Rescission of Antidumping Duty 
Administrative Review: Certain Large Diameter Carbon and Alloy Seamless 
Standard, Line and Pressure Pipe From Mexico

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

ACTION: Notice of Final Results and Rescission of Antidumping Duty 
Administrative Review.

-----------------------------------------------------------------------

SUMMARY: We have determined that the second antidumping duty 
administrative review of Tubos de Acero de Mexico, S.A. (``TAMSA'') 
should be rescinded.

EFFECTIVE DATE: July 8, 2003.

FOR FURTHER INFORMATION CONTACT: Mark Young, or George McMahon, AD/CVD 
Enforcement, Office 6, Group II, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
6397, or (202) 482-1167, respectively.

SUPPLEMENTARY INFORMATION

Background

    On August 6, 2002, the Department of Commerce (``the Department'') 
published in the Federal Register the notice of ``Opportunity to 
Request Administrative Review'' of the antidumping duty order on 
certain large diameter carbon and alloy seamless standard, line, and 
pressure pipe (``SLP'') from Mexico, for the period August 1, 2001 
through July 31, 2002 (67 FR 50856). On August 30, 2002, we received a 
request from the petitioner \1\ to review TAMSA. On September 25, 2002, 
we published the notice of initiation of this antidumping duty 
administrative review with respect to TAMSA. See Initiation of 
Antidumping and Countervailing Duty Administrative Reviews, Requests 
for Revocation in Part and Deferral of Administrative Reviews, 67 FR 
60210 (September 25, 2002). On October 25, 2002, we received a request 
from the petitioner to determine whether antidumping duties have been 
absorbed during the period of review by respondent TAMSA. TAMSA 
submitted a November 1, 2002 letter certifying that neither TAMSA, nor 
its U.S. affiliate, Siderca Corporation, directly or indirectly, 
exported or sold for consumption in the United States any subject 
merchandise during the period of review (``POR''). On April 30, 2003, 
the Department issued a memorandum to the file concerning its intent to 
rescind the administrative review and invited parties to comment. See 
Memorandum from Eric Greynolds through Melissa Skinner, ``Second 
Administrative Review of the Antidumping Duty Order on Certain Large 
Diameter Carbon and Alloy Seamless Standard, Line and Pressure Pipe 
from Mexico: Intent to Rescind Administrative Review,'' (April 30, 
2003), located in the case file in the Central Records Unit (``CRU''), 
main Commerce Building, room B-099. Although we invited parties to 
comment on our memorandum which outlined our intent to rescind this 
administrative review, no interested party submitted comments, a case 
brief, or requested a hearing. In summary, there have been no changes 
since the Department issued its intent to rescind this administrative 
review.
---------------------------------------------------------------------------

    \1\ The petitioner is United States Steel Corporation.
---------------------------------------------------------------------------

Scope of the Review

    The products covered 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 review 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 review 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, threaded, or threaded and coupled), or 
surface finish.
    The seamless pipes subject to this review 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,

[[Page 40628]]

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 review 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 review. 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 review.
    Specifically excluded from the scope of this review 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. Bureau of Customs and Border Protection 
(BCBP) 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 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 
BCBP's purposes, the written description of the merchandise subject to 
this scope is dispositive.

[[Page 40629]]

Rescission of Second Administrative Review

    On November 1, 2002, TAMSA submitted a letter certifying that 
neither TAMSA, nor its U.S. affiliate, Siderca Corporation, directly or 
indirectly, exported or sold for consumption in the United States any 
subject merchandise during the POR. See Memorandum from Eric Greynolds 
through Melissa Skinner, ``Second Administrative Review of the 
Antidumping Duty Order on Certain Large Diameter Carbon and Alloy 
Seamless Standard, Line and Pressure Pipe from Mexico: Intent to 
Rescind Administrative Review,'' (April 30, 2003). The Department 
conducted a shipment data query on SLP produced by TAMSA during the 
POR. Our analysis of the query results showed that none the relevant 
shipments were subject to antidumping duties. To further confirm 
TAMSA's claim that it did not export subject merchandise to the United 
States during the POR, on March 19, 2003 we subsequently requested an 
additional data query of the internal BCBP data. See Memorandum to file 
from Mark Young through Eric Greynolds, ``Second Administrative Review 
of the Antidumping Duty Order on Certain Large Diameter Carbon and 
Alloy Seamless Standard, Line and Pressure Pipe from Mexico: Internal 
Customs Data Query'' (March 31, 2003). Pursuant to this request, we 
discovered what appeared to be several shipments of subject merchandise 
from TAMSA to the United States during the POR. Consequently, on March 
31, 2003, the Department requested that TAMSA explain the discrepancy 
between TAMSA's statement that it had no sales of subject merchandise 
during the POR and the results of our data query which contradicted 
TAMSA's statement, or respond to the antidumping questionnaire that was 
sent on October 11, 2002. See letter to respondent, dated March 31, 
2003, in the case file in the CRU.
    Subsequent to the issuance of the Department's March 31, 2003 
letter to TAMSA, we discovered an inadvertent error regarding the 
internal BCBP data query on shipments of subject merchandise from 
TAMSA. Specifically, the results of the query included extraneous data 
concerning merchandise that is not covered by the scope of the order. 
Therefore, on April 30, 2003, we stated that based on our shipment data 
query and examination of entry documents, we should treat TAMSA as a 
non-shipper and, in accordance with section 351.213(d)(3) of the 
Department's regulations, rescind this review. See Memorandum from Eric 
Greynolds through Melissa Skinner to the File, ``Certain Large Diameter 
Carbon and Alloy Seamless Standard, Line, and Pressure Pipe from 
Mexico: Rescission of First Administrative Review,'' dated April 30, 
2003. We invited interested parties to comment on our intent to rescind 
the administrative review.
    With respect to petitioner's October 25, 2002 request that the 
Department determine whether antidumping duties have been absorbed 
during the period of review by respondent TAMSA, we find their request 
to be irrelevant to the instant case. The Department's query results 
show that TAMSA had no entries of subject merchandise during the POR, 
therefore, no duty absorption can exist (see e.g., Certain Fresh Cut 
Flowers from Mexico, Final Results of Antidumping Duty Administrative 
Review, 62 FR 27219 (May 19, 1997)).
    Based on our BCBP data query and examination of entry 
documentation, the Department will treat TAMSA as a non-shipper for the 
purpose of this review. Therefore, in accordance with Sec.  
351.213(d)(3) of the Department's regulations, and consistent with our 
practice, we will rescind this review because TAMSA is the sole 
respondent and a non-shipper (see e.g., Polychloroprene Rubber from 
Japan: Notice of Recission of Antidumping Duty Administrative Review, 
66 FR 45005 (August 27, 2001)).
    This notice is in accordance with section 751(a)(1) of the Act and 
section 351.213(d) of the Department's regulations.

    Dated: July 1, 2003.
Gary Taverman,
Acting Deputy Assistant Secretary for Import Administration.
[FR Doc. 03-17217 Filed 7-7-03; 8:45 am]
BILLING CODE 3510-DS-P