[Federal Register Volume 70, Number 87 (Friday, May 6, 2005)]
[Notices]
[Pages 23988-23990]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-2221]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-201-827


Certain Large Diameter Carbon and Alloy Seamless Standard, Line 
and Pressure Pipe from Mexico: Notice of Intent To Rescind 
Administrative Review

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

ACTION: Notice of Intent To Rescind Administrative Review.

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SUMMARY: On September 22, 2004, 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, Requests for Revocation in 
Part, 69 FR 56745 (September 22, 2004). We have preliminarily 
determined that the review of TAMSA should be rescinded.

EFFECTIVE DATE: May 6, 2005.

FOR FURTHER INFORMATION CONTACT: James Terpstra or George McMahon, AD/
CVD Operations, Office 3, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
3965 or (202) 482-1167, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On August 3, 2004, the Department of Commerce (``the Department'') 
published in the Federal Register the notice of ``Opportunity to 
Request 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, 2003, 
through July 31, 2004 (69 FR 46496). On August 31, 2004, we received a 
request from the petitioner\1\ to review TAMSA. On September 22, 2004, 
we published the notice of initiation of this antidumping duty 
administrative review with respect to TAMSA. See Initiation of 
Antidumping and Countervailing Duty Administrative Reviews, Requests 
for Revocation in Part, 69 FR 56745 (September 22, 2004). On November 
23, 2004, TAMSA submitted a letter certifying that neither TAMSA, nor 
its U.S. affiliate, Tenaris Global Services USA (``Tenaris''), directly 
or indirectly, exported or sold for consumption in the United States 
any subject merchandise during the period of review (``POR'').
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    \1\ The petitioner is United States Steel Corporation.
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Scope of the Order

    The products covered 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'') A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-
589, ASTM A-795, 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 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 A-106 
standard 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 A-335 standard must be used if 
temperatures and stress levels exceed those allowed for ASTM A-106. 
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. If exceptionally 
low temperature uses or conditions are anticipated, standard pipe may 
be manufactured to ASTM A-333 or ASTM A-334 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 A-589) and seamless galvanized pipe 
for fire protection uses (ASTM A-795) are used for the conveyance of 
water.
    Seamless pipes are commonly produced and certified to meet ASTM A-
106, ASTM A-53, 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 A-106 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

[[Page 23989]]

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 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, 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 investigation. Therefore, seamless 
pipes meeting the physical description above, but not produced to the 
ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-589, ASTM A-795, 
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 A-106 applications. These specifications generally include 
ASTM A-161, ASTM A-192, ASTM A-210, ASTM A-252, ASTM A-501, ASTM A-523, 
ASTM A-524, and ASTM A-618. When such pipes are used in a standard, 
line, or pressure pipe application, such products are covered by the 
scope of this review.
    Specifically excluded from the scope of this order are:
    A. Boiler tubing and mechanical tubing, if such products are not 
produced to ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-589, 
ASTM A-795, 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 A-335 specification unless they are 
used in an application that would normally utilize ASTM A-53, ASTM A-
106, ASTM A-333, ASTM A-334, ASTM A-589, ASTM A-795, 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 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 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 
customs purposes, the written description of the merchandise subject to 
this scope is dispositive.

Intent To Rescind Fourth Administrative Review

    TAMSA submitted a letter on November 23, 2004, certifying that 
neither TAMSA, nor its U.S. affiliate, Tenaris, 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.
    We conducted an internal customs data query on December 9, 2004. 
The data query indicated TAMSA and its U.S. affiliate, Tenaris, had 
customs entries/shipments during the POR, some of which entered under 
the HTSUS numbers for subject merchandise. Subsequent to our analysis 
of the internal customs data, we requested an external customs data 
query. See Memorandum dated February 24, 2005, entitled ``Request for 
U.S. Entry Documents--Certain Large Diameter Carbon and Alloy Seamless 
Standard, Line and Pressure Pipe from Mexico from Mexico, Customs Case 
Number A-201-827.'' We reviewed the customs entry documents which 
included bills of lading, entry summaries, entry/immediate delivery 
forms, invoices, and mills certificates. Based on the product 
specifications and the information contained in the documents, which 
confirmed that AD/CVD duties were not assessed on the shipments, we 
were able to confirm that TAMSA had no entries, exports, or sales to 
the United States of subject mrchandise during the POR.
    Based on our analysis of the shipment data, 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; Preliminary 
Results of Antidumping Duty Administrative Review and New Shipper 
Review, and Partial Rescission of Administrative Review, 65 FR 12209 
(March 8, 2000); Persulfates From the People's Republic of China; 
Preliminary Results of Antidumping Duty Administrative Review and 
Partial Rescission of Administrative Review, 65 FR 18963 (April 10, 
2000).

Public Comment

    An interested party may request a hearing within 30 days of 
publication of this preliminary notice. See 19 CFR 351.310(c). Any 
hearing, if requested, will be held 44 days after the date of 
publication, or the first working day thereafter. Interested parties 
may submit case briefs no later than 30 days after the date of 
publication of this preliminary notice. See 19 CFR 351.309. Rebuttal 
briefs, limited to issues raised in such briefs, may be filed no later 
than 37 days after the date of publication. Parties who submit 
arguments are requested to submit with the argument (1) a statement of 
the issue, (2) a brief summary of the argument, and (3) a table of 
authorities. Further, parties submitting written comments should 
provide the Department with an additional copy of the public version of 
any such comments on diskette. The Department will issue the final 
notice, which will include the results of its analysis of issues raised 
in any such comments, or at a hearing, if requested,

[[Page 23990]]

within 120 days of publication of this preliminary notice.
    This notice is issued and published in accordance with section 
751(a)(1) of the Act and 19 CFR 351.213(d).

    Dated: May 2, 2005.
Barbara Tillman,
Acting Deputy Assistant Secretary for Import Administration.
[FR Doc. E5-2221 Filed 5-5-05; 8:45 am]
BILLING CODE: 3510-DS-S