[Federal Register Volume 68, Number 241 (Tuesday, December 16, 2003)]
[Notices]
[Pages 69996-69998]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-31021]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-583-816]


Certain Stainless Steel Butt-Weld Pipe Fittings from Taiwan: 
Final Results and Final Rescission in Part of Antidumping Duty 
Administrative Review

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

ACTION: Notice of final results and final rescission in part of the 
antidumping duty administrative review of certain stainless steel butt-
weld pipe fittings from Taiwan.

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SUMMARY: On July 8, 2003, the Department of Commerce (``Department'') 
published in the Federal Register the preliminary results of the 
administrative review of the order on certain stainless steel butt-weld 
pipe fittings from Taiwan. See Certain Stainless Steel Butt-Weld Pipe 
Fittings From Taiwan: Preliminary Results of Antidumping Duty 
Administrative Review and Notice of Intent to Rescind in Part, 68 FR 
40637 (July 8, 2003) (``Preliminary Results''). This review covers one 
manufacturer/exporter of the subject merchandise. The period of review 
(``POR'') is June 1, 2001 through May 31, 2002.
    We gave interested parties an opportunity to comment on the 
preliminary results. Based upon our analysis of the comments received, 
we have made changes in the margin calculation. Therefore, the final 
results differ from the preliminary results of this review. The final 
weight-averaged dumping margin is listed below in the section titled 
``Final Results of the Review.''

EFFECTIVE DATE: December 16, 2003.

FOR FURTHER INFORMATION CONTACT: Jon Freed, Laurel LaCivita or Robert 
Bolling, Enforcement Group III, Office 9, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue, NW., Washington, DC 20230, telephone 202-482-3818, 
202-482-4243, or 202-482-3434, respectively, fax 202-482-0865.

SUPPLEMENTARY INFORMATION:

Background

    The Department's preliminary results of review were published on 
July 8, 2003. See Preliminary Results. On September 8, 2003, 
petitioners \1\

[[Page 69997]]

submitted pre-verification comments. From September 12-September 19, 
2003, the Department conducted the home market sales verification of 
the questionnaire responses of Ta Chen Stainless Pipe Co., Ltd. (``Ta 
Chen'') and Ta Chen International, Inc. (``TCI''). From September 22-
September 25, 2003, the Department conducted the U.S. sales 
verification of the questionnaire responses of Ta Chen and TCI. On 
October 24, 2003, the Department extended the final results of this 
review by 35 days until December 10, 2003. See Certain Stainless Steel 
Butt-Weld Pipe Fittings from Taiwan: Extension of Final Results of 
Antidumping Duty Administrative Review, 68 FR 60915, (October 24, 
2003). We invited parties to comment on the Preliminary Results. We 
received written comments on October 29, 2003 from petitioners and from 
Ta Chen. On November 5, 2003, we received rebuttal comments from 
petitioners and Ta Chen. On November 12, 2003, we received a 
supplemental brief from petitioners covering issues relating to 
verification exhibits that were not served on them until November 3, 
2003. On November 12, 2003, we received a letter from Ta Chen 
clarifying its initial brief filed on October 29, 2003. On November 17, 
2003, we received comments from Ta Chen rebutting petitioners' 
supplemental brief filed on November 12, 2003.
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    \1\ Markovitz Enterprises, Inc. (Flowline Division), Shaw Alloy 
Piping Products Inc., Gerlin, Inc., and Taylor Forge Stainless, 
Inc., collectively (``petitioners'').
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    The Department is conducting this administrative review in 
accordance with section 751 of the Act.

Scope of the Review

    The products subject to this administrative review are certain 
stainless steel butt-weld pipe fittings, whether finished or 
unfinished, under 14 inches inside diameter. Certain welded stainless 
steel butt-weld pipe fittings (``pipe fittings'') are used to connect 
pipe sections in piping systems where conditions require welded 
connections. The subject merchandise is used where one or more of the 
following conditions is a factor in designing the piping system: (1) 
Corrosion of the piping system will occur if material other than 
stainless steel is used; (2) contamination of the material in the 
system by the system itself must be prevented; (3) high temperatures 
are present; (4) extreme low temperatures are present; and (5) high 
pressures are contained within the system.
    Pipe fittings come in a variety of shapes, with the following five 
shapes the most basic: ``Elbows'', ``tees'', ``reducers'', ``stub 
ends'', and ``caps.'' The edges of finished pipe fittings are beveled. 
Threaded, grooved, and bolted fittings are excluded from this review. 
The pipe fittings subject to this review are classifiable under 
subheading 7307.23.00 of the Harmonized Tariff Schedule of the United 
States (``HTSUS'').
    Although the HTSUS subheading is provided for convenience and 
customs purposes, our written description of the scope of this review 
is dispositive. Pipe fittings manufactured to American Society of 
Testing and Materials specification A774 are included in the scope of 
this order.

Partial Rescission of Review

    In the Preliminary Results, the Department issued a notice of 
intent to rescind the review with respect to Liang Feng Stainless Steel 
Fitting Co., Ltd. (``Liang Feng''), and Tru-Flow Industrial Co., Ltd. 
(``Tru-Flow'') as we found that there were no entries of subject 
merchandise during the POR. See Preliminary Results at 40638-40639. On 
September 17, 2003, the Department conducted a sales verification at 
the offices and production facilities of Tru-Flow and found no 
information inconsistent with their response that they had no shipments 
to the United States. See Verification of Tru-Flow Industrial Co., Ltd. 
in the Antidumping Administrative Review of Certain Stainless Steel 
Butt-Weld Pipe Fittings from Taiwan, (October 22, 2003). As the 
Department received no comments on this issue and no additional 
evidence has arisen, the Department is rescinding the review with 
respect to Liang Feng and Tru-Flow.

Analysis of Comments Received

    All issues raised in the case briefs, as well as the Department's 
findings, in this administrative review are addressed in the Issues and 
Decision Memorandum for the Administrative Review of Stainless Steel 
Butt-Weld Pipe Fittings from Taiwan: June 1, 2001 through May 31, 2002 
(``Decision Memorandum''), dated December 10, 2003, which is hereby 
adopted by this notice. A list of the issues raised and to which we 
have responded, all of which are in the Decision Memorandum, is 
attached to this notice as Appendix I. 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 at the U.S. 
Department of Commerce, in the Central Records Unit, in room B-099. In 
addition, a complete version of the Decision Memorandum can be accessed 
directly on the Web at http://www.ia.ita.doc.gov. The paper copy and 
electronic version of the public version of the Decision Memorandum are 
identical in content.

Sales Below Cost in the Home Market

    As discussed in more detail in the Preliminary Results, the 
Department disregarded home market below-cost sales that failed the 
cost test in the final results of review.

Changes Since the Preliminary Results

    A list of the issues which parties have raised and to which we have 
responded, all of which are in the Decision Memorandum, is attached to 
this notice as Appendix I. Based on our analysis of the comments 
received, we have made certain changes in the margin calculation, as 
discussed in the Decision Memorandum, accessible in B-099. The changes 
are as follows:
    [sbull] The Department has adjusted the values reported for home 
market packing and U.S. packing to reflect the minor correction to Ta 
Chen's packing labor ratio.
    [sbull] The Department has adjusted the values reported for home 
market indirect selling expenses for home market sales.
    [sbull] The Department has included in the indirect expenses 
incurred in the home market for U.S. sales (``DINDIRSU'') that were 
reported but not used in the preliminary results of review. See Comment 
8 of the Decision Memorandum.
    [sbull] The Department has adjusted the reported values for marine 
insurance, harbor maintenance fee, and United States customs duty for 
one invoice in the U.S. sales listing to reflect a minor correction 
made at verification.
    [sbull] The Department has adjusted the U.S. repacking expense and 
the warehouse expenses for all sales out of TCI inventory to reflect 
the minor correction made at verification.
    [sbull] The Department has adjusted the imputed credit expense for 
U.S. sales that are shipped directly from Taiwan to the unaffiliated 
customer to reflect changes explained in Comment 7 of the Decision 
Memorandum accompanying this notice.
    [sbull] The Department has adjusted the U.S. indirect selling 
expense calculation to include TCI's cost of financing.

Final Results of the Review

    We determine that the following percentage weighted-average margin 
exists for the period June 1, 2001 through May 31, 2002:

[[Page 69998]]



       Certain Stainless Steel Butt-Weld Pipe Fittings from Taiwan
------------------------------------------------------------------------
                                                               Weighted-
                                                                average
               Producer/Manufacturer/Exporter                   margin
                                                               (percent)
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Ta Chen.....................................................        1.27
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Assessment Rates

    The Department will determine, and U.S. Customs and Border 
Protection (``CBP'') shall assess, antidumping duties on all 
appropriate entries. In accordance with 19 CFR 351.212(b)(1), we have 
calculated an importer-specific assessment rate for merchandise subject 
to this review. The Department will issue appropriate assessment 
instructions directly to CBP within 15 days of publication of these 
final results of review. We will direct the CBP to assess the resulting 
assessment rates against the entered customs values for the subject 
merchandise on each of the importer's entries during the review period. 
For duty assessment purposes, we calculated importer-specific 
assessment rates by dividing the dumping margins calculated for each 
importer by the total entered value of sales for each importer during 
the POR.

Cash Deposit Requirements

    In accordance with section 751(a)(1) of the Act, the following 
deposit requirements will be effective upon publication of this notice 
of final results of administrative review for all shipments of certain 
SSBWPF from Taiwan entered, or withdrawn from warehouse, for 
consumption on or after the date of publication: (1) The cash deposit 
rate for Ta Chen will be the rate shown above; (2) for previously 
reviewed or investigated companies not listed above, the cash deposit 
rate will continue to be the company-specific rate published for the 
most recent period; (3) if the exporter is not a firm covered in this 
review, a prior review, or the original less-than-fair-value (LTFV) 
investigation, but the manufacturer is, the cash deposit rate will be 
the rate established for the most recent period for the manufacturer of 
the merchandise; and (4) the cash deposit rate for all other 
manufacturers shall continue to be 51.01 percent.
    These deposit requirements shall remain in effect until publication 
of the final results of the next administrative review.

Notification of Interested Parties

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) 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 doubled antidumping duties.
    This notice also serves as the only reminder to parties subject to 
administrative protective orders (``APO'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305. Timely written 
notification of the return/destruction of APO materials or conversion 
to judicial protective order is hereby requested. Failure to comply 
with the regulations and terms of an APO is a violation which is 
subject to sanction.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(a)(1) and 777(i) of the Act.

    Dated: December 10, 2003.
James J. Jochum,
Assistant Secretary for Import Administration.

Appendix I.--List of Issues for Discussion

Comment 1: Adverse Facts Available (``AFA'')
Comment 2: Ta Chen's Affiliation with PFP Taiwan
Comment 3: Constructed Export Price (``CEP'') Offset
Comment 4: Date of Sale
Comment 5: Classification of Home Market Sales
Comment 6: Employee Bonuses and Compensation for Directors and 
Supervisors Recorded in Stockholders' Equity on the Balance Sheet
Comment 7: Selling Expenses Associated with Sales Returns in the 
U.S. Market
Comment 8: Home Market Indirect Selling Expenses Incurred for Sales 
to the United States
Comment 9: Home Market Inventory Carrying Costs Associated with U.S. 
Sales
Comment 10: The Inclusion of Time on the Water in U.S. Inventory 
Carrying Costs
Comment 11: U.S. Indirect Selling Expenses
Comment 12: Short-term Borrowing Rate for Imputed Credit in the 
United States
Comment 13: CEP Profit
Comment 14: Wire Transfer Fee for Payments from TCI to Ta Chen
Comment 15: U.S. Inventory Carrying Costs
Comment 16: Weighted-Average Direct Selling Expenses for U.S. Stock 
Sales

[FR Doc. 03-31021 Filed 12-15-03; 8:45 am]
BILLING CODE 3510-DS-P