[Federal Register Volume 70, Number 172 (Wednesday, September 7, 2005)]
[Notices]
[Pages 53159-53161]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-4847]


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DEPARTMENT OF COMMERCE

International Trade Administration

(A-588-850, A-201-827)


Certain Large Diameter Carbon and Alloy Seamless Standard, Line 
and Pressure Pipe from Japan and Mexico; Final Results of the Expedited 
Sunset Reviews of the Antidumping Duty Orders

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On May 2, 2005, the Department of Commerce (the Department) 
initiated sunset reviews of the antidumping duty orders on certain 
large diameter carbon and alloy seamless standard, line and pressure 
pipe (Large Diameter SSLPP) from Japan and Mexico pursuant to section 
751(c) of the Tariff Act of 1930, as amended (the Act). On the basis of 
a notice of intent to participate and an adequate substantive response 
filed on behalf of domestic interested parties and no response from 
respondent interested parties, the Department conducted expedited (120-
day) sunset reviews for these orders. As a result of these sunset 
reviews, the Department finds that revocation of the antidumping duty 
orders would be likely to lead to continuation or recurrence of 
dumping. The dumping margins are identified in the Final Results of 
Reviews section of this notice.

EFFECTIVE DATE: September 7, 2005.

FOR FURTHER INFORMATION Saliha Loucif or David Goldberger, AD/CVD 
Operations, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street & Constitution Avenue, NW, 
Washington, DC 20230; telephone: (202) 482-1779 and (202) 482-4136, 
respectively.

SUPPLEMENTARY INFORMATION:

Background:

    On May 2, 2005, the Department published the notice of initiation 
of the sunset reviews of the antidumping duty orders on Large Diameter 
SSLPP from Japan and Mexico, pursuant to section 751(c) of the Act. See 
Initiation of Five-year (Sunset) Reviews, 70 FR 22632 (May 2, 2005). 
See also Procedures for Conducting Five-year (Sunset) Reviews of 
Antidumping and Countervailing Duty Orders, 63 FR 13516, 13522 (March 
20, 1998). On May 17, 2005, the Department received the Notice of 
Intent to Participate from United States Steel Corporation (U.S. Steel) 
(the domestic interested party), within the deadline specified in 
section 351.218(d)(1)(i) of the Department's Regulations. The domestic 
interested party claimed interested party status under section 
771(9)(c) of the Act, as a manufacturer, producer, or wholesaler of the 
subject merchandise in the United States.
    On June 1, 2005, we received complete substantive responses from 
the domestic interested party within the 30-day deadline specified in 
section 351.218(d)(3)(i) of the Department's Regulations. On the same 
day, Tubos de Aceros de Mexico, S.A. (TAMSA), the sole respondent in 
the investigation of Large Diameter SSLPP from Mexico, and the only 
known producer of subject merchandise in Mexico, submitted a waiver of 
participation.\1\ In the sunset reviews of Large Diameter SSLPP from 
Mexico and Japan, the Department has not received any notice of intent 
to participate nor substantive response from any respondent interested 
party. As a result, pursuant to section 751(c)(3)(B) of the Act and 
section 351.218(e)(1)(ii)(c)(2) of the Department's Regulations, the

[[Page 53160]]

Department conducted expedited (120-day) sunset reviews of these 
orders.
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    \1\ During the course of its investigation, the Department 
determined that Tubos de Aceros de Mexico, S.A. (TAMSA) was the sole 
producer of Large Diameter SSLPP in Mexico. See Notice of 
Preliminary Determination of Sales at Less Than Fair Value and 
Postponement of Final Determination: Certain Large Diameter Carbon 
and Alloy Seamless Standard, Line and Pressure Pipe From Mexico, 65 
FR 5587 (February 4, 2000).
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Scope of the Orders

    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 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

[[Page 53161]]

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 customs purposes, 
the written description of the merchandise subject to this order is 
dispositive.

Analysis of Comments Received

    All issues raised in these reviews are addressed in the Issues and 
Decision Memorandum for the Expedited Sunset Reviews of the Antidumping 
Duty Orders on Certain Large Diameter Carbon and Alloy Seamless 
Standard, Line and Pressure Pipe from Japan and Mexico; Final Results 
(Decision Memo) from Barbara E. Tillman, Acting Deputy Assistant 
Secretary for Import Administration, to Joseph A. Spetrini, Acting 
Assistant Secretary for Import Administration, dated August 30, 2005, 
which is hereby adopted by this notice. The issues discussed in the 
Decision Memo include the likelihood of continuation or recurrence of 
dumping and the magnitude of the margins likely to prevail if the 
orders were to be revoked. Parties can find a complete discussion of 
all issues raised in these reviews and the corresponding 
recommendations in this public memorandum which is on file in room B-
099 of the main Commerce building.
    In addition, a complete version of the Decision Memo can be 
accessed directly on the Web at http://ia.ita.doc.gov/frn, under the 
heading ``September 2005.'' The paper copy and electronic version of 
the Decision Memo are identical in content.

Final Results of Reviews

    We determine that revocation of the antidumping duty orders on 
Large Diameter SSLPP from Japan and Mexico would be likely to lead to 
continuation or recurrence of dumping at the following weighted-average 
percentage margins:

------------------------------------------------------------------------
                                                        Weighted Average
          Manufacturers/Exporters/Producers             Margin (percent)
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Japan................................................
Nippon Steel Corporation.............................             107.80
Kawasaki Steel Corporation...........................             107.80
Sumitomo Metal Industries, Ltd. (SMI)................             107.80
All Others...........................................              68.80
Mexico...............................................
TAMSA................................................              15.05
All Others...........................................              15.05
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    This notice also serves as the only reminder to parties subject to 
administrative protective orders (APO) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with section 351.305 of the 
Department's Regulations. Timely notification of the return or 
destruction of APO materials or conversion to judicial protective 
orders 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 notice in 
accordance with sections 751(c), 752, and 777(i)(1) of the Act.

    Dated: August 30, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. E5-4847 Filed 9-6-05; 8:45 am]
BILLING CODE 3510-DS-S