[Federal Register Volume 68, Number 180 (Wednesday, September 17, 2003)]
[Notices]
[Pages 54418-54421]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-23620]


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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 May 12, 2003, 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 August 1, 2001, through July 31, 2002. Based on our analysis 
of comments received, these final results do not differ from the 
preliminary results. The final results are listed below in the ``Final 
Results of Review'' section.

EFFECTIVE DATE: September 17, 2003.

FOR FURTHER INFORMATION CONTACT: Martin Claessens or Monica Gallardo, 
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) 482-5451 and (202) 482-3147, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the preliminary results of the antidumping 
duty administrative review of certain small diameter carbon and alloy 
seamless standard, line, and pressure

[[Page 54419]]

pipe (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, 68 FR 
25335 (May 12, 2003) (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. 
Silcotub, the only interested party to submit comments, filed a brief 
on June 11, 2003.

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 are 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 pipe 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 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 is use 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 pipe 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 are 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 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 the 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 used in a covered 
application. If such information is provided, we will require end-use

[[Page 54420]]

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 petitioner, 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 
BCBP purposes, our written description of the merchandise subject to 
this scope is dispositive.

Separate Rates

    Because we are conducting this review in accordance with 19 CFR 
351.408, we are applying non-market economy methodology for Silcotub in 
this review.\1\ 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, 68 FR at 
25336-25337. 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.
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    \1\ In Certain Small Diameter Carbon and Alloy Seamless 
Standard, Line, and Pressure Pipe from Romania: Final Results of 
Antidumping Duty Administrative Review, 68 FR 12672, 12673 (March 
17, 2003), the Department reviewed the non-market economy status of 
Romania and determined to reclassify 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), placed on the record of this administrative review. The March 
10, 2003 decision with respect to Romania's NME status provided 
that:
    This finding will apply to all future administrative proceedings 
covering periods of investigation or review that fall after January 
1, 2003. Where a proceeding's period of investigation or review 
begins before January 1, 2003, but ends after that date, the 
Department will use the standard market economy methodology if it 
determines that a sufficient period of time has passed so that 
adequate market economy data is available. In addition, the U.S. 
countervailing duty law will apply now to Romania where the 
proceeding at issue involves an adequate period of investigation 
after this effective date.
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Analysis of Comments Received

    All issues raised in the one case brief received in this review are 
addressed in the ``Issues and Decision Memorandum'' (Decision 
Memorandum) from Holly A. Kuga, Acting Deputy Assistant Secretary, 
Import Administration, to James J. Jochum, Assistant Secretary for 
Import Administration, dated September 9, 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.

Final Results of Review

    As a result of our review, we determine that the following 
weighted-average percentage margin exists for the period August 1, 
2001, through July 31, 2002:

------------------------------------------------------------------------
                                                                Margin
                   Manufacturer/exporter                      (percent)
------------------------------------------------------------------------
S.C. Silcotub S.A..........................................         0.00
------------------------------------------------------------------------

    The Department shall determine, and the BCBP 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 BCBP 
to assess antidumping duties on that importer's entries of subject 
merchandise. The Department will issue appropriate assessment 
instructions directly to the BCBP 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 Tariff Act of 1930, as amended (the Act): (1) For Silcotub, 
because the margin is zero, 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.


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    Dated: September 9, 2003.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.

Appendix

Comments and Responses

    Comment 1: Use of Fidelity Steel Manufacturing Corporation's 
Financial Statements to Calculate Overhead, Selling, General, and 
Administrative Expenses, and Profit.
    Comment 2: Valuation of Natural Gas.

[FR Doc. 03-23620 Filed 9-16-03; 8:45 am]
BILLING CODE 3510-25-P