[Federal Register Volume 69, Number 112 (Thursday, June 10, 2004)]
[Notices]
[Pages 32492-32494]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-13065]



[[Page 32492]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-809]


Circular Welded Non-Alloy Steel Pipe From the Republic of Korea; 
Final Results of Antidumping Duty Administrative Review

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

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

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SUMMARY: On December 8, 2003, the Department of Commerce published the 
preliminary results of the administrative review of the antidumping 
duty order on circular welded non-alloy steel pipe from the Republic of 
Korea. We gave interested parties an opportunity to comment on the 
preliminary results. Based on our analysis of the comments received and 
an examination of our calculations, we have made certain changes for 
the final results. We find that the companies reviewed sold circular 
welded non-alloy steel pipe from Korea in the United States below 
normal value during the period November 1, 2001, through October 31, 
2002.

EFFECTIVE DATE: June 10, 2004.

FOR FURTHER INFORMATION CONTACT: Julie Santoboni, Scott Holland, or 
Andrew McAllister, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
4194, (202) 482-1279, or (202) 482-1174, respectively.

SUPPLEMENTARY INFORMATION:

Background

    Since the publication of the preliminary results of this review 
(see Notice of Preliminary Results of Antidumping Duty Administrative 
Review: Circular Welded Non-Alloy Steel Pipe from the Republic of 
Korea, 68 FR 68331 (December 8, 2003) (``Preliminary Results'')), the 
following events have occurred:
    The Department of Commerce (``the Department'') issued verification 
reports for Husteel Co., Ltd. (``Husteel''), SeAH Steel (``SeAH''), and 
Hyundai HYSCO (``HYSCO'') in November and December 2003. See Memoranda 
to the File, ``Verification Report of the Sales and Cost Responses of 
Husteel in the 2001/2002 Antidumping Duty Administrative Review of 
Circular Non-Alloy Steel Pipe from Korea,'' dated December 8, 2003; 
``CEP Sales Verification Report--SeAH Steel,'' dated December 10, 2003; 
``CEP Sales Verification Report--Hyundai HYSCO,'' dated December 29, 
2003; ``Home-Market Sales and Cost Verification Report--Hyundai 
HYSCO,'' dated December 30, 2003. These reports are on file in the 
Central Records Unit, Room B-099 of the main Department building 
(``CRU'').
    On December 17, 2003, we notified the parties that the briefing 
schedule was extended, with case briefs due on January 26, 2004, and 
rebuttal briefs due on February 2, 2004. On January 8, 2004, we granted 
a request submitted by Husteel and SeAH for an extension to file 
rebuttal briefs until February 5, 2004. Case briefs were submitted by 
Husteel, SeAH, and HYSCO (collectively, ``the respondents'') on January 
26, 2004. Allied Tube and Conduit Corporation and Wheatland Tube 
Company (collectively, the ``domestic interested parties'') submitted a 
case brief on January 28, 2004. Rebuttal briefs were submitted by the 
respondents on February 5, 2004. The domestic interested parties 
submitted a rebuttal brief on February 6, 2004.
    On February 19, 2004, we published in the Federal Register an 
extension of the time limit for the completion of the final results of 
the review to no later than June 1, 2004, in accordance with section 
751(a)(3)(A) of the Tariff Act of 1930, as amended (``the Act''). See 
Certain Circular Welded Non-Alloy Steel Pipe From Korea: Notice of 
Extension of Time Limit for the Final Results of the Antidumping Duty 
Administrative Review, 69 FR 7724 (February 19, 2004).
    Due to the unexpected emergency closure of the main Commerce 
building on Tuesday, June, 1, 2004, the Department has tolled the 
deadline for these final results by one day to June 2, 2004.

Scope of the Order

    The merchandise subject to this review is circular welded non-alloy 
steel pipe and tube, of circular cross-section, not more than 406.4 mm 
(16 inches) in outside diameter, regardless of wall thickness, surface 
finish (black, galvanized, or painted), or end finish (plain end, 
beveled end, threaded, or threaded and coupled). These pipes and tubes 
are generally known as standard pipes and tubes and are intended for 
the low-pressure conveyance of water, steam, natural gas, air, and 
other liquids and gases in plumbing and heating systems, air-
conditioning units, automatic sprinkler systems, and other related 
uses. Standard pipe may also be used for light load-bearing 
applications, such as for fence tubing, and as structural pipe tubing 
used for framing and as support members for reconstruction or load-
bearing purposes in the construction, shipbuilding, trucking, farm 
equipment, and other related industries. Unfinished conduit pipe is 
also included in this order.
    All carbon-steel pipes and tubes within the physical description 
outlined above are included within the scope of this review except line 
pipe, oil-country tubular goods, boiler tubing, mechanical tubing, pipe 
and tube hollows for redraws, finished scaffolding, and finished 
conduit. In accordance with the Department's Final Negative 
Determination of Scope Inquiry on Certain Circular Welded Non-Alloy 
Steel Pipe and Tube from Brazil, the Republic of Korea, Mexico, and 
Venezuela, 61 FR 11608 (March 21, 1996), pipe certified to the API 5L 
line-pipe specification and pipe certified to both the API 5L line-pipe 
specifications and the less-stringent ASTM A-53 standard-pipe 
specifications, which falls within the physical parameters as outlined 
above, and entered as line pipe of a kind used for oil and gas 
pipelines is outside of the scope of the antidumping duty order.
    Imports of these products are currently classifiable under the 
following Harmonized Tariff Schedule of the United States (``HTSUS'') 
subheadings: 7306.30.10.00, 7306.30.50.25, 7306.30.50.32, 
7306.30.50.40, 7306.30.50.55, 7306.30.50.85, and 7306.30.50.90. 
Although the HTSUS subheadings are provided for convenience and customs 
purposes, our written description of the scope of this proceeding is 
dispositive.

Period of Review

    The period of review (``POR'') is November 1, 2001, through October 
31, 2002.

Verification

    As stated in the Preliminary Results and provided in section 782(i) 
of the Act, we verified information submitted by the respondents using 
standard verification procedures, including on-site inspection of the 
manufacturers' facilities and examination of the relevant sales, cost, 
and financial records.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this review are addressed in the ``Issues and Decision Memorandum'' 
from Jeffrey May, Deputy Assistant Secretary, Import Administration to 
James J. Jochum,

[[Page 32493]]

Assistant Secretary, Import Administration, dated June 2, 2004 
(``Decision Memorandum''), which is hereby adopted by this notice. 
Attached to this notice as an appendix is a list of the issues which 
parties have raised and to which we have responded in the Decision 
Memorandum. 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 Department's CRU. In addition, a 
complete version of the Decision Memorandum can be accessed directly on 
the Web at http://ia.ita.doc.gov/frn/index.html. The paper copy and 
electronic version of the Decision Memorandum are identical in content.

Fair Value Comparisons

    We calculated export price (``EP''), constructed export price 
(``CEP''), normal value (``NV''), cost of production (``COP''), and 
constructed value (``CV'') based on the same methodologies used in the 
Preliminary Results with the following exception:
     We recalculated HYSCO's COP, CV, and CEP profit rate using 
the reported combined costs for self-produced and further manufactured 
pipe. (See Final Results Calculation Memorandum for Hyundai HYSCO dated 
June 2, 2004, and Decision Memorandum at Comment 6).

Results of the COP Test

    Pursuant to section 773(b)(1)(C)(i) of the Act, where less than 20 
percent of a respondent's sales of a given product were made at prices 
less than the COP, we did not disregard any below-cost sales of that 
product because we determined that the below-cost sales were not made 
in ``substantial quantities.'' Where 20 percent or more of a 
respondent's sales of a given product during the 12-month period were 
at prices less than the COP, we determined such sales to have been made 
in ``substantial quantities'' within an extended period of time in 
accordance with section 773(b)(1)(A) of the Act. In such cases, we also 
determined that such below-cost sales were not made at prices which 
would permit recovery of all costs within a reasonable period of time, 
in accordance with section 773(b)(1)(B) of the Act.
    We found that for each of the respondents, for certain specific 
products, more than 20 percent of the home market sales within an 
extended period of time were at prices less than the COP and, in 
addition, such sales did not provide for the recovery of costs within a 
reasonable period of time. We therefore excluded these sales and used 
the remaining sales, if any, as the basis for determining NV, in 
accordance with section 773(b)(1) of the Act.
    HYSCO had U.S. sales of subject merchandise for which there were no 
comparable home market sales in the ordinary course of trade (e.g., 
sales that passed the cost test). We compared those sales to CV, in 
accordance with section 773(a)(4) of the Act.

Currency Conversions

    We made currency conversions in accordance with section 773A of the 
Act in the same manner as in the Preliminary Results.

Final Results of the Review

    We determine that the following percentage margins exist for the 
period November 1, 2001, through October 31, 2002:

------------------------------------------------------------------------
                                                              Weighted-
                                                               average
                     Exporter/producer                          margin
                                                              percentage
------------------------------------------------------------------------
HYSCO......................................................         0.84
Husteel....................................................         1.82
SeAH.......................................................         0.66
------------------------------------------------------------------------

Assessment Rates

    The Department shall 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 importer (or customer)-specific assessment rates for 
merchandise subject to this review. To determine whether the duty 
assessment rates were de minimis, in accordance with the requirement 
set forth in 19 CFR 351.106(c)(2), we calculated importer (or 
customer)-specific ad valorem rates by aggregating the dumping margins 
calculated for all U.S. sales to that importer (or customer) and 
dividing this amount by the total value of the sales to that importer 
(or customer). Where an importer (or customer)-specific ad valorem rate 
was greater than de minimis, we calculated a per unit assessment rate 
by aggregating the dumping margins calculated for all U.S. sales to 
that importer (or customer) and dividing this amount by the total 
quantity sold to that importer (or customer).
    The Department will issue appropriate assessment instructions 
directly to CBP within 15 days of publication of these final results of 
review.

Cash Deposit Rates

    The following antidumping duty deposits will be required on all 
shipments of circular welded non-alloy steel pipe from Korea entered, 
or withdrawn from warehouse, for consumption, on or after the 
publication date of the final results of this administrative review, as 
provided by section 751(a)(1) of the Act: (1) The cash deposit rates 
for the reviewed companies will be the rates listed above (except no 
cash deposit will be required if a company's weighted-average margin is 
de minimis, i.e., less than 0.5 percent); (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, the 
previous review, or the original 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) if 
neither the exporter nor the manufacturer is a firm covered in this or 
any previous reviews, the cash deposit rate shall be 4.80 percent, the 
``all others'' rate established in the less than fair value 
investigation. See Notice of Antidumping Orders: Certain Circular 
Welded Non-Alloy Steel Pipe from Brazil, the Republic of Korea (Korea), 
Mexico, and Venezuela, and Amendment to Final Determination of Sales at 
Less Than Fair Value: Certain Circular Welded Non-Alloy Steel Pipe from 
Korea, 57 FR 49453 (November 2, 1992).
    These requirements, when imposed, shall remain in effect until 
publication of the final results of the next administrative review.

Notification to Importers

    This notice 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.

Notification Regarding APOs

    This notice also serves as a reminder to parties subject to 
administrative protective orders (``APOs'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305, which continues 
to govern business proprietary information in this segment of the 
proceeding. Timely written notification of the return/destruction of 
APO

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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 these results and this notice in 
accordance with sections section 751(a)(1) and 777(i)(1) of the Act.

    Dated: June 2, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.

Appendix I

List of Comments in the Issues and Decision Memorandum

Comment 1: Treatment of 201 Duties
Comment 2: Duty Drawback Adjustment
Comment 3: Inclusion of U.S. Affiliates' Interest Expenses as a 
Component of U.S. Indirect Selling Expenses
Comment 4: New Information Submitted by HYSCO at Verification
Comment 5: HYSCO's Home Market Credit Expense Calculation
Comment 6: Cost Files Used in HYSCO's Margin Calculation
Comment 7: CEP Offset for Husteel and SeAH
Comment 8: Husteel's Allocation of Export Selling Expenses
Comment 9: Husteel's General and Administrative Expenses Calculation
Comment 10: Husteel's and SeAH's Treatment of Foreign Exchange Gains 
and Losses
Comment 11: New Information Submitted by SeAH at Verification
Comment 12: SeAH's Consignment Sales
Comment 13: Credit Expenses Incurred by SeAH's Home Market 
Affiliated Resellers HSC and SSP
Comment 14: SeAH's U.S. Indirect Selling Expense Calculation

[FR Doc. 04-13065 Filed 6-9-04; 8:45 am]
BILLING CODE 3510-DS-P