[Federal Register Volume 70, Number 199 (Monday, October 17, 2005)]
[Notices]
[Pages 60282-60284]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-5715]



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DEPARTMENT OF COMMERCE

International Trade Administration

[A-351-826]


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

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On May 10, 2005, the Department of Commerce published the 
preliminary results of the administrative review of the antidumping 
duty order on small diameter seamless carbon and alloy steel standard, 
line and pressure pipe from Brazil. The review covers V&M do Brasil, 
S.A., a manufacturer/exporter of the subject merchandise. The period of 
review is August 1, 2003, through July 31, 2004.
    Based on our analysis of the comments received, we have made 
changes in the margin calculations. Therefore, the final results differ 
from the preliminary results. The final weighted-average dumping margin 
for the reviewed firm is listed below in the section entitled ``Final 
Results of Review.''

EFFECTIVE DATE: October 17, 2005.

FOR FURTHER INFORMATION CONTACT: Patrick Edwards or Stephen Bailey at 
(202) 482-8029 or (202) 482-0193, 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 May 10, 2005, the Department of Commerce (``the Department'') 
published in the Federal Register its preliminary results in this 
administrative review. See Small Diameter Seamless Carbon and Alloy 
Steel Standard, Line and Pressure Pipe from Brazil: Preliminary Results 
of Antidumping Duty Administrative Review, 70 FR 24524 (May 10, 2005) 
(``Preliminary Results''). We invited parties to comment on the 
Preliminary Results. On June 9, 2005, we received a case brief from the 
sole respondent, V&M do Brasil, S.A. (``VMB''). We received a rebuttal 
brief from the petitioner, United States Steel Corporation 
(``petitioner'') on June 17, 2005. Neither party requested a public 
hearing.
    On August 16, 2005, because it was not practicable to complete the 
final results of this review within the original time period, the 
Department published in the Federal Register an extension of the time 
limit for completion of the final results of this administrative review 
in accordance with section 751(a)(3)(A) of the Tariff Act of 1930, as 
amended (``the Act''). See Small Diameter Seamless Carbon and Alloy 
Steel Standard, Line and Pressure Pipe from Brazil: Extension of Time 
Limit for the Final Results of the Antidumping Duty Administrative 
Review, 70 FR 48102 (August 16, 2005).

Scope of the Order

    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 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

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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://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 constructed export price (``CEP'') profit ratio and 
the total and variable costs used in calculating the final dumping 
margin in this proceeding. See Sales Analysis Memorandum for the Final 
Results of Administrative Review of Small Diameter Seamless Carbon and 
Alloy Steel Standard, Line and Pressure Pipe from Brazil: V&M do 
Brasil, SA (``Analysis Memo''), dated October 7, 2005. We have also 
made adjustments to the cost of affiliate inputs, certain unreconciled 
expenses, and the company's selling and general administrative 
expenses. See Cost of Production and Constructed Value Calculation 
Adjustments for the Final Determination V&M do Brasil S.A. (``COP 
Memo''), dated October 7, 2005. The adjustments are further discussed 
in detail in the Decision Memorandum.

Final Results of Review:

    As a result of our review, we determine that the following 
weighted-average margin exists for the period of August 1, 2003, 
through July 31, 2004:

------------------------------------------------------------------------
                                                      Weighted-average
                     Producer                        margin (Percentage)
------------------------------------------------------------------------
V&M do Brasil, S.A.                                        14.60 percent
------------------------------------------------------------------------

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 for the most recent 
period; 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)(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 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) of the Act.

    Dated: October 6, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.

APPENDIX Issues in Decision Memorandum

Comment 1: CEP Profit Adjustments
Comment 2: Establishing the Most Similar Foreign Like Product
Comment 3: Date of Sale
Comment 4: Revised Cost Database

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Comment 5: Clerical Errors: Revisions to Variable and Total Costs of 
Manufacturing
[FR Doc. E5-5715 Filed 10-14-05; 8:45 am]
BILLING CODE 3510-DS-S