[Federal Register Volume 69, Number 86 (Tuesday, May 4, 2004)]
[Notices]
[Pages 24569-24571]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-10097]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-827]


Certain Large Diameter Carbon and Alloy Seamless Standard, Line, 
and Pressure Pipe From Mexico; Intent To Rescind Antidumping Duty 
Administrative Review

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

ACTION: Notice of intent to rescind antidumping duty administrative 
review.

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

SUMMARY: On September 30, 2003, we published the notice of initiation 
of this antidumping duty review with respect to Tubos de Acero de 
Mexico, S.A. (TAMSA). See Initiation of Antidumping and Countervailing 
Duty Administrative Reviews, Request for Revocation in Part and 
Deferral of Administrative Review, 68 FR 56262 (September 30, 2003) 
(Initiation Notice). We have preliminarily determined that this review 
should be rescinded.

EFFECTIVE DATE: May 4, 2004.

FOR FURTHER INFORMATION CONTACT: Kristina Boughton or Charles Riggle at 
(202) 482-8173 or (202) 482-0650, respectively; AD/CVD Enforcement 
Office 5, Group II, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On August 1, 2003, the Department of Commerce (the Department) 
published in the Federal Register the notice of opportunity to request 
an 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, 2002, through July 31, 2003 
(68 FR 45218). On September 2, 2003, we received a request from the 
petitioner \1\ to review TAMSA. On September 30, 2003, we published the 
notice of initiation of this antidumping duty administrative review 
with respect to TAMSA. See Initiation Notice.
---------------------------------------------------------------------------

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

    TAMSA submitted a letter on December 9, 2003, certifying that 
during the period of review (POR) neither it, nor its U.S. affiliate 
entered subject merchandise for consumption, or sold, exported, or 
shipped subject merchandise for entry for consumption in the United 
States.

Scope of the Review

    The products covered by this order 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) A53, ASTM A106, ASTM A333, ASTM A334, ASTM 
A589, ASTM A795, 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 order 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 order 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 order 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, 
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 A106 
standard may be used in temperatures of up to 1000 degrees Fahrenheit, 
at various American Society of Mechanical

[[Page 24570]]

Engineers (ASME) code stress levels. Alloy pipes made to ASTM A335 
standard must be used if temperatures and stress levels exceed those 
allowed for ASTM A106. Seamless pressure pipes sold in the United 
States are commonly produced to the ASTM A106 standard.
    Seamless standard pipes are most commonly produced to the ASTM A53 
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 A333 or ASTM A334 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 A589) and seamless galvanized pipe 
for fire protection uses (ASTM A795) are used for the conveyance of 
water.
    Seamless pipes are commonly produced and certified to meet ASTM 
A106, ASTM A53, 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 A106 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 A106 pipes may 
be used in some boiler applications.
    The scope of this 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 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 order. Therefore, seamless pipes 
meeting the physical description above, but not produced to the ASTM 
A53, ASTM A106, ASTM A333, ASTM A334, ASTM A589, ASTM A795, 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 A106 applications. These specifications generally include 
ASTM A161, ASTM A192, ASTM A210, ASTM A252, ASTM A501, ASTM A523, ASTM 
A524, and ASTM A618. When such pipes are used in a standard, line, or 
pressure pipe application, such products are covered by the scope of 
this order.
    Specifically excluded from the scope of this order are:
    A. Boiler tubing and mechanical tubing, if such products are not 
produced to ASTM A53, ASTM A106, ASTM A333, ASTM A334, ASTM A589, ASTM 
A795, 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 A335 specification unless they are used 
in an application that would normally utilize ASTM A53, ASTM A106, ASTM 
A333, ASTM A334, ASTM A589, ASTM A795, 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 U.S. Customs and Border Protection (CBP) 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 the 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 
CBP's purposes, the written description of the merchandise subject to 
this order is dispositive.

Intent To Rescind Third Administrative Review

    On December 9, 2003, TAMSA submitted a letter certifying that 
neither it, 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. The petitioner did not comment on 
TAMSA's no shipment claim. The Department conducted a shipment data 
query on SLP produced by TAMSA during the POR, and based on this query, 
we found that TAMSA had made shipments to the United States during the 
POR, some of which entered under the HTSUS numbers for subject 
merchandise. From past reviews we had reason to believe that these 
shipments were of merchandise not included in the scope of this order. 
See 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, 68 FR 40627 (July 8, 
2003).

[[Page 24571]]

    To confirm that TAMSA made no shipments of subject merchandise to 
the United States during the POR, on March 4, 2004, we requested entry 
documents for selected months of the POR and for a sample of HTSUS 
numbers covered by the scope of this order for various shipments by 
TAMSA and/or its affiliate. See Memorandum to Michael S. Craig from 
Gary Taverman: Request for U.S. Entry Documents--Certain Large Diameter 
Carbon and Alloy Seamless Standard, Line and Pressure Pipe from Mexico 
(A-201-827). Our analysis of the entry documents showed that none of 
the shipments was subject merchandise. Based on our shipment data query 
and examination of entry documents, we are treating TAMSA as a non-
shipper for the purpose of this review. Therefore, in accordance with 
section 351.213(d)(3) of the Department's regulations, and consistent 
with our practice, we preliminarily determine to rescind this review. 
See e.g., Stainless Steel Bar from India; Final Results of Antidumping 
Duty Administrative Review and New Shipper Review and Partial 
Rescission of Administrative Review, 65 FR 48965 (August 10, 2000) as 
discussed in Stainless Steel Bar from India; Preliminary Results of 
Antidumping Duty Administrative Review and New Shipper Review, and 
Partial Rescission of Administrative Review, 65 FR 12209 (March 8, 
2000).

Public Comment

    Interested parties may submit case briefs within 14 days of the 
date of publication of this notice. Rebuttal briefs, which must be 
limited to issues raised in the case briefs, may be filed not later 
than 19 days after the date of publication of this notice. Parties who 
submit case briefs or rebuttal briefs in this proceeding are requested 
to submit with each argument (1) a statement of the issue and (2) a 
brief summary of the argument with an electronic version included. Any 
interested party may request a hearing within 14 days of publication of 
this notice. Issues raised in the hearing will be limited to those 
raised in the case and rebuttal briefs. The Department will issue the 
final results of this administrative review, including the results of 
its analysis of issues raised in any such written briefs or hearing, 
within 120 days of publication of these preliminary results. We are 
issuing this notice is in accordance with section 751(a)(1) of the Act 
and section 351.213(d) of the Department's regulations.

    Dated: April 28, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. 04-10097 Filed 5-3-04; 8:45 am]
BILLING CODE 3510-DS-P