[Federal Register Volume 69, Number 1 (Friday, January 2, 2004)]
[Notices]
[Pages 100-101]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-32259]


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INTERNATIONAL TRADE COMMISSION

[Investigation No. TA-421-4]


Certain Ductile Iron Waterworks Fittings From China

Determination

    On the basis of information developed in the subject investigation, 
the United States International Trade Commission determines, pursuant 
to section 421(b)(1) of the Trade Act of 1974,\1\ that certain ductile 
iron waterworks fittings \2\ from the People's Republic of China are 
being imported into the United States in such increased quantities or 
under such conditions as to cause market disruption to the domestic 
producers of like or directly competitive products (68 FR 69421, 
December 12, 2003).
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    \1\ 19 U.S.C. 2451(b)(1).
    \2\ The products subject to this investigation are cast pipe or 
tube fittings of ductile iron (containing 2.5 percent carbon and 
over 0.02 percent magnesium or magnesium and cerium, by weight) with 
mechanical, push-on (rubber compression) or flanged joints attached. 
Included within this definition are fittings of all nominal 
diameters and of both full-bodied and compact designs. The imported 
products are provided for in statistical reporting number 
7307.19.3070 of the Harmonized Tariff Schedule of the United States 
(HTS).
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Recommendations on Proposed Remedies

    Chairman Deanna Tanner Okun, Commissioner Stephen Koplan, 
Commissioner Charlotte R. Lane, and Commissioner Daniel R. Pearson 
propose that the President impose a tariff-rate quota on imports of the 
subject ductile iron waterworks fittings from China as follows: in the 
first year, a tariff of 50 percent ad valorem, in addition to the 
current rate of duty, on imports over 14,324 short tons; in the second 
year, a tariff of 40 percent ad valorem, in addition to the current 
rate of duty, on imports that exceed 15,398 short tons; and in the 
third year of relief, a tariff of 30 percent ad valorem on imports that 
exceed 16,553 short tons. They further recommend that, if applications 
are filed, the President direct the U.S. Department of Commerce and the 
U.S. Department of Labor to provide expedited consideration of trade 
adjustment assistance for firms and/or workers affected by the subject 
imports.
    Vice Chairman Jennifer A. Hillman proposes that the President 
impose a quota, for a three-year period, on imports of the subject 
ductile iron waterworks fittings from China as follows: 14,324 short 
tons in the first year of relief, 15,398 short tons in the second year 
of relief, and 16,553 short tons in the third year of relief.
    Commissioner Marcia E. Miller proposes that the President impose a 
duty, in addition to the current rate of duty, for a three-year period, 
on imports of the subject ductile iron waterworks fittings from China 
as follows: 50 percent ad valorem in the first year of relief, 40 
percent ad valorem in the second year of relief, and 30 percent ad 
valorem in the third year of relief.

Background

    Following receipt of a petition, on September 5, 2003, on behalf of 
McWane, Inc.,\3\ Birmingham, AL, the Commission instituted 
investigation No. TA-421-4, Certain Ductile Iron Waterworks Fittings 
from China, under section 421(b) of the Act to determine whether 
certain ductile iron waterworks fittings from China are being imported 
into the United States in such increased quantities or under such 
conditions as to cause market disruption to the domestic producers of 
like or directly competitive products. The petition also alleged under 
section 421(i)(1)(A) of the Act, that critical circumstances exist with 
respect to imports of the subject product from China, and on October 
20, 2003, the Commission made a negative determination 4,5 
with respect to whether delay in taking action under this section would 
cause damage to the relevant domestic industry which would be difficult 
to repair (68 FR 61013, October 24, 2003).
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    \3\ McWane operates three subsidiaries that produce the subject 
products including: Clow Water Systems Co., Coshocton, OH; Tyler 
Pipe Co., Tyler, TX; and Union Foundry Co., Anniston, AL.
    \4\ Commissioner Lane made an affirmative critical circumstances 
determination.
    \5\ Commissioner Pearson did not participate in the critical 
circumstances determination.
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    Notice of the institution of the Commission's investigation and of 
the scheduling of a public hearing to be held in connection therewith 
was given by posting a copy of the notice on the Commission's Web site 
(http://www.usitc.gov) and by publishing the notice in the Federal 
Register of September 15, 2003 (68 FR 54010). The hearing was held on 
November 6, 2003 in Washington, DC; all persons who requested the 
opportunity were permitted to appear in person or by counsel.
    The views of the Commission are contained in USITC Publication 3657 
(December 2003), entitled Certain Ductile Iron Waterworks Fittings from 
China: Investigation No. TA-421-4.

    Issued: December 24, 2003.


[[Page 101]]


    By order of the Commission.
Marilyn R. Abbott,
Secretary to the Commission.
[FR Doc. 03-32259 Filed 12-31-03; 8:45 am]
BILLING CODE 7020-02-P