[Federal Register Volume 70, Number 28 (Friday, February 11, 2005)]
[Notices]
[Pages 7243-7245]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-584]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-351-826]


Notice of Final Results of Antidumping Duty Administrative 
Review: Small Diameter Circular Seamless Carbon and Alloy Steel 
Standard, Line and Pressure Pipe From Brazil

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

EFFECTIVE DATE: February 11, 2005.

FOR FURTHER INFORMATION CONTACT: Helen Kramer or Patrick Edwards at 
(202) 482-0405 or (202) 482-8029, respectively; AD/CVD Operations, 
Office 7, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street & Constitution Avenue, NW., 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

Background

    On September 7, 2004, the Department of Commerce (``the 
Department'') published in the Federal Register its preliminary results 
in this administrative review. See Notice of Preliminary Results of 
Antidumping Duty Administrative Review, 69 FR 54125 (September 7, 2004) 
(``Preliminary Results''). We invited parties to comment on the 
Preliminary Results. On October 7, 2004, we received case briefs from 
the sole respondent, V&M do Brasil, S.A. (``VMB''), and the petitioner, 
United States Steel Corporation (``petitioner''). Both parties 
submitted rebuttal briefs on October 14, 2004. No public hearing was 
held. Pursuant to section 751(a)(3)(A) of the Tariff Act of 1930, as 
amended (``the Act''), the Department extended the time limit for the 
final results by 30 days, from January 5, 2005, to February 4, 2005. 
See Notice of Extension of Time Limit for the Final Results of 
Antidumping Duty Administrative Review: Small Diameter Circular 
Seamless Carbon and Alloy Steel Standard, Line and Pressure Pipe from 
Brazil, 69 FR 75916 (December 20, 2004).

Scope of the Order

    For purposes of this review, the products covered by the order are 
seamless pipes produced to the ASTM A-335, ASTM A-106, ASTM A-53 and 
API 5L specifications and meeting the physical parameters described 
below, regardless of application. The scope of this order also includes 
all products used in standard, line, or pressure pipe applications and 
meeting the physical parameters below, regardless of specification.
    For purposes of this order, seamless pipes are seamless carbon and 
alloy (other than stainless) steel pipes, of circular cross-section, 
not more than 114.3 mm (4.5 inches) 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. These pipes are commonly known as standard 
pipe, line pipe or pressure pipe, depending upon the application. They 
may also be used in structural applications. Pipes produced in non-
standard wall thickness are commonly referred to as tubes.
    The seamless pipes subject to this antidumping duty order are 
currently classifiable under subheadings 7304.10.10.20, 7304.10.50.20, 
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''). The following information further defines the scope of 
this order, which covers pipes meeting the physical parameters 
described above:
    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 
standard A-106 may be used in temperatures of up to 1000 degrees 
Fahrenheit, at various American Society of Mechanical Engineers 
(``ASME'') code stress levels. Alloy pipes made to ASTM standard A-335 
must be used if temperatures and stress levels exceed those allowed for 
A-106 and the ASME codes. 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.
    Seamless line pipes are intended for the conveyance of oil and 
natural gas or other fluids in pipelines. Seamless line pipes are 
produced to the API 5L specification.
    Seamless pipes are commonly produced and certified to meet ASTM A-
106, ASTM A-53 and API 5L specifications. Such triple certification of 
pipes is common because all pipes meeting the stringent ASTM A-106 
specification necessarily meet the API 5L and ASTM A-53 specifications. 
Pipes meeting the API 5L specification necessarily meet the ASTM A-53 
specification. However, pipes meeting the A-53 or API 5L specifications 
do not necessarily meet the A-106 specification. To avoid maintaining 
separate production runs and separate inventories, manufacturers 
triple-certify the pipes. 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-
certified pipes is 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

[[Page 7244]]

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, A-106 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, 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 this order. Therefore, seamless pipes 
meeting the physical description above, but not produced to the ASTM A-
335, ASTM A-106, ASTM A-53, or API 5L standards shall be covered if 
used in a standard, line or pressure application.
    For example, there are certain other ASTM specifications of pipe 
which, because of overlapping characteristics, could potentially be 
used in A-106 applications. These specifications generally include A-
162, A-192, A-210, A-333, and A-524. 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 this order are boiler tubing and 
mechanical tubing, if such products are not produced to ASTM A-335, 
ASTM A-106, ASTM A-53 or API 5L specifications and are not used in 
standard, line or pressure applications. In addition, finished and 
unfinished oil country tubular goods (``OCTG'') are excluded from the 
scope of this 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. Finally, also excluded from 
this order are redraw hollows for cold-drawing when used in the 
production of cold-drawn pipe or tube.
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, our written description of the scope of this order is 
dispositive.

Analysis of Comments Received

    The issues raised in the case briefs by parties to this 
administrative review are addressed in the Issues and Decision 
Memorandum to Joseph A. Spetrini, Acting Assistant Secretary for Import 
Administration, from Barbara E. Tillman, Acting Deputy Assistant 
Secretary (``Decision Memorandum''), which is hereby adopted by this 
notice. A list of the issues addressed in the Decision Memorandum is 
appended to this notice. The Decision Memorandum is on file in the 
Central Records Unit in Room B-099 of the main Commerce building, and 
can also be accessed directly on the Web at http://www.ia.ita.doc.gov/
frn. The paper copy and electronic version of the Decision Memorandum 
are identical in content.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made 
adjustments to the product model matching and weighting criteria, the 
short-term interest rate, credit expense, inventory carrying costs, 
indirect selling expenses, total cost of manufacturing, general and 
administrative (``GA'') expense, interest revenue, packing, and inland 
freight expense used in calculating the final dumping margin in this 
proceeding. The adjustments are discussed in detail in the Decision 
Memorandum.

Final Results of Review

    As a result of our review, we determine that V&M do Brasil is the 
successor to Mannesmann, S.A., and that the following weighted-average 
margin exists for the period of August 1, 2002, through July 31, 2003:

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                        Producer                              margin
                                                           (percentage)
------------------------------------------------------------------------
V&M do Brasil...........................................           12.67
------------------------------------------------------------------------

Assessment

    The Department will determine, and U.S. Customs and Border 
Protection (``CBP``) shall assess, antidumping duties on all 
appropriate entries, pursuant to 19 CFR 351.212(b). The Department 
calculated importer-specific duty assessment rates on the basis of the 
ratio of the total amount of antidumping duties calculated for the 
examined sales to the total entered value of the examined sales for 
that importer. Where the assessment rate is above de minimis, we will 
instruct CBP to assess duties on all entries of subject merchandise 
produced by VMB. The Department will issue appropriate assessment 
instructions directly to CBP within 15 days of publication of these 
final results of review.

Cash Deposits

    Furthermore, the following deposit requirements will be effective 
upon publication of the final results of this administrative review for 
all shipments of seamless carbon and certain alloy steel standard, line 
and pressure pipe from Brazil entered, or withdrawn from warehouse, for 
consumption on or after the publication date of these final results, as 
provided by section 751(a) of the Act: (1) For the company covered by 
this review, the cash deposit rate will be the rate listed above; (2) 
for merchandise exported by producers or exporters not covered in this 
review but covered in the investigation, the cash deposit rate will 
continue to be the company-specific rate from the final determination; 
(3) if the exporter is not a firm covered in this review or the 
investigation, but the producer is, the cash deposit rate will be that 
established for the producer of the merchandise in these final results 
of review or in the final determination; and (4) if neither the 
exporter nor the producer is a firm covered in this review or the 
investigation, the cash deposit rate will be 124.94 percent, the ``All 
Others'' 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 a 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 is the only reminder to parties subject to 
administrative protective order (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 the terms of an APO is a sanctionable 
violation.
    We are issuing and publishing these results and notice in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: February 4, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.

Appendix--Issues in Decision Memorandum

Comment 1: Product Matching to Similar Merchandise
Comment 2: CEP Offset
Comment 3: Interest Rate
Comment 4: Credit Expenses

[[Page 7245]]

Comment 5: Inventory Carrying Costs
Comment 6: Reversal of Bad Debt Expense
Comment 7: Adjustment to Cost of Manufacturing
Comment 8: GA Expense Ratio
Comment 9: Clerical Errors
    a. Home Market Interest Revenue
    b. U.S. Packing Expense
    c. Home Market Inland Insurance

 [FR Doc. E5-584 Filed 2-10-05; 8:45 am]
BILLING CODE 3510-DS-P