[Federal Register Volume 71, Number 22 (Thursday, February 2, 2006)]
[Notices]
[Pages 5645-5646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-1361]


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DEPARTMENT OF COMMERCE

International Trade Administration


North American Free-Trade Agreement (NAFTA), Article 1904 
Binational Panel Reviews

AGENCY: NAFTA Secretariat, United States Section, International Trade 
Administration, Department of Commerce.

ACTION: Notice of Decision of Panel.

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SUMMARY: On January 27, 2006, the binational panel issued its decision 
in the review of the final determination made by the International 
Trade Administration, respecting Oil Country Tubular Goods from Mexico 
Final Antidumping Duty Administrative Review and Determination not to 
Revoke, Secretariat File No. USA-MEX-2001-1904-05. The binational panel 
affirmed in part and remanded in part to the International Trade 
Administration. Copies of the panel decision are available from the 
U.S. Section of the NAFTA Secretariat.

FOR FURTHER INFORMATION CONTACT: Caratina L. Alston, United States 
Secretary, NAFTA Secretariat, Suite 2061, 14th and Constitution Avenue, 
Washington, DC 20230, (202) 482-5438.

SUPPLEMENTARY INFORMATION: Chapter 19 of the North American Free-Trade 
Agreement (``Agreement'') establishes a mechanism to replace domestic 
judicial review of the final determinations in antidumping and 
countervailing duty cases involving imports from a NAFTA country with 
review by independent binational panels. When a Request for Panel 
Review is filed, a panel is established to act in place of national 
courts to review expeditiously the final determination to determine 
whether it conforms with the antidumping or countervailing duty law of 
the country that made the determination.
    Under Article 1904 of the Agreement, which came into force on 
January 1, 1994, the Government of the United States, the Government of 
Canada and the Government of Mexico established Rules of Procedure for 
Article 1904 Binational Panel Reviews (``Rules''). These Rules were 
published in the Federal Register on February 23, 1994 (59 FR 8686). 
The panel review in this matter has been conducted in accordance with 
these Rules.

[[Page 5646]]

    Panel Decision: The Panel concluded and ordered the Department as 
follows:
    (1) The Panel affirms the Department's decision to deny TAMSA's 
request for revocation of the antidumping order.
    (2) The Panel affirms the decision of the Department as it relates 
to Hylsa regarding the treatment of export insurance as a direct 
expense, and in rejecting Hylsa's challenge to the Department's 
``zeroing practice''.
    (3) The Panel remands the case as it relates to Hylsa to the 
Department to recalculate the final antidumping margins by:
    1. Recalculating the packing costs by (a) taking into account that 
the cost for automation was captured as an overhead fixed asset; (b) 
not averaging the packing costs from cost center 2052 for the entire 
POR because it is not reasonable; and (c) taking into consideration 
only the packing costs reported by Hylsa for cost center 2052 and only 
for the two months in which OCTG products were packed.
    2. Recalculating the cost of production by averaging the costs of 
production for both sizes of pipe and for both months to determine a 
single average cost given the absence of any basis in the record 
justifying different production costs based on size.
    (4) In the event the recalculation results in a zero or de minimus 
antidumping margin, the Panel directs the Department to address Hylsa's 
request for revocation of the antidumping order.
    The Department was directed to report the results of its remand 
decision within 45 days of the date of the opinion, or not later than 
March 13, 2006.

    Dated: January 27, 2006.
Caratina L. Alston,
United States Secretary, NAFTA Secretariat.
 [FR Doc. E6-1361 Filed 2-1-06; 8:45 am]
BILLING CODE 3510-GT-P