[Federal Register Volume 71, Number 63 (Monday, April 3, 2006)]
[Notices]
[Pages 16556-16558]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-4741]


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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.
SUMMARY: On September 28, 2005, we published the notice of initiation 
of this antidumping duty administrative review with respect to Tubos de 
Acero de Mexico, S.A. (``TAMSA''). See Initiation of Antidumping and 
Countervailing Duty Administrative Reviews and Request for Revocation 
in Part, 70 FR 56631 (September 28, 2005). We have preliminarily 
determined that the review of TAMSA should be rescinded.

EFFECTIVE DATE: April 3, 2006.

FOR FURTHER INFORMATION CONTACT: Victoria Cho 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) 480-
5075 or (202) 482-1167, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On August 1, 2005, the Department of Commerce (``the Department'') 
published in the Federal Register the notice of the ``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, 2004, 
through July 31, 2005 (70 FR 44085). On October 19, 2005, we received a 
request from the petitioner\1\

[[Page 16557]]

to review TAMSA. On September 28, 2005, 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 and Request for Revocation in Part, 70 FR 56631 
(September 28, 2005). On October 27, 2005, 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 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

[[Page 16558]]

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 Fifth Administrative Review

    TAMSA submitted a letter on October 27, 2005, 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 November 8, 2005. 
See November 9, 2005, Memorandum to The File through James Terpstra, 
Program Manager, entitled ``Internal Customs Data Query,'' A-201-827. 
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 number for subject merchandise. However, we confirmed that 
AD/CVD duties were not assessed on the shipments because the entries/
shipments were excluded from the order (e.g., SLP used for deepwater 
application), and we were able to confirm that TAMSA had no entries, 
exports, or sales to the United States of subject merchandise during 
the POR.
    Based on our analysis of the shipment data, TAMSA is a non-shipper 
for 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(c)(ii). 
Rebuttal briefs, limited to issues raised in such briefs, may be filed 
no later than five days after the time limit for filing the case brief 
19 CFR 351.309(d). 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, within 120 days of publication of this 
preliminary notice.
    This notice is issued and published in accordance with sections 
751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.213(d).

    Dated: March 24, 2006.
Stephen J. Claeys,
Deputy Assistant Secretaryfor Import Administration.
[FR Doc. E6-4741 Filed 3-31-06; 8:45 am]
BILLING CODE 3510-DS-S