[Federal Register Volume 71, Number 91 (Thursday, May 11, 2006)]
[Notices]
[Pages 27461-27463]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-7224]


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DEPARTMENT OF COMMERCE

International Trade Administration

(A-201-827)


Revocation of Antidumping Duty Order: Certain Large Diameter 
Carbon and Alloy Seamless Standard, Line, and Pressure Pipe from Mexico

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On May 2, 2005, the Department of Commerce (the Department) 
initiated its sunset reviews of the antidumping duty orders on certain 
large diameter seamless standard, line, and pressure pipe (seamless 
pipe) from Japan and Mexico. See Initiation of Five-year (``Sunset'') 
Reviews, 70 FR 22632 (May 2, 2005). Pursuant to section 751(c) of the 
Tariff Act of 1930, as amended (the Act), the International Trade 
Commission (the Commission), in its sunset reviews, determined that 
revocation of the order on seamless pipe from Mexico would not be 
likely to lead to continuation or recurrence of material injury to an 
industry in the United States within a reasonably foreseeable time. See 
Carbon and Alloy Seamless Standard, Line, and Pressure Pipe From the 
Czech Republic, Japan, Mexico, Romania, and South Africa, 71 FR 24860 
(April 27, 2006). Therefore, pursuant to section 751(d)(2) of the Act 
and 19 CFR 351.222(i)(1)(iii), the Department is revoking the 
antidumping duty order on seamless pipe from Mexico.

EFFECTIVE DATE: August 11, 2005

FOR FURTHER INFORMATION CONTACT: Robert James, AD/CVD Operations Office 
7, Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230; telephone: (202) 482-0649.

SUPPLEMENTARY INFORMATION:

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) 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 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 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.

[[Page 27462]]

    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 order.
    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 the U.S. Customs Service (U.S. Customs) 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 
U.S. Customs purposes, our written description of the merchandise 
subject to this scope is dispositive.

Background

    On August 11, 2000, the Department published the antidumping duty 
order on large diameter (defined as greater than 4 [bdfrac12] inches) 
seamless pipe from Mexico. See Notice of Amended Final Determination of 
Sales at Less Than Fair Value and Antidumping Duty Order: Certain Large 
Diameter Carbon and Alloy Seamless Standard, Line and Pressure Pipe 
from Mexico, 65 FR 49227 (August 11, 2000).
    On May 2, 2005, the Department initiated, and the Commission 
instituted, sunset reviews of the antidumping duty orders on seamless 
pipe from Japan and Mexico. See Initiation of Five-year (``Sunset'') 
Reviews, 70 FR 22632 (May 2, 2005). As a result of its review the 
Department found that revocation of the antidumping duty orders would 
be likely to lead to continuation or recurrence of dumping, and 
notified the Commission of the magnitude of the margin likely to 
prevail were the orders to be revoked. See 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, 70 FR 53159 (September 7, 2005). On April 6, 
2006, the Commission determined, pursuant to section 751(c) of the Act, 
that revocation of the antidumping duty order on seamless pipe from 
Mexico

[[Page 27463]]

would not be likely to lead to continuation or recurrence of material 
injury to an industry in the United States within a reasonably 
foreseeable time. See Carbon and Alloy Seamless Standard, Line, and 
Pressure Pipe from the Czech Republic, Japan, Mexico, Romania, and 
South Africa, 71 FR 24860 (April 27, 2006) and USITC Publication 3850 
(April 2006), entitled Carbon and Alloy Seamless Standard, Line, and 
Pressure Pipe from the Czech Republic, Japan, Mexico, Romania, and 
South Africa (Inv. Nos. 731-TA-846-850 (Review). As a result of the 
determination by the Commission that revocation of this order is not 
likely to lead to continuation or recurrence of material injury to an 
industry in the United States, the Department, pursuant to section 
751(d) of the Act, is revoking the order on seamless pipe from Mexico. 
Pursuant to section 751(d)(2) of the Act and 19 CFR 351.222(i)(2)(i), 
the effective date of revocation is August 11, 2005, i.e., the fifth 
anniversary of the date of publication in the Federal Register of the 
notice of the antidumping duty order.
    The Department will notify U.S. Customs and Border Protection to 
discontinue suspension of liquidation and collection of cash deposits 
on entries of the subject merchandise entered or withdrawn from 
warehouse on or after August 11, 2005, the effective date of revocation 
of the antidumping duty order. The Department will complete any pending 
administrative reviews of the order and will conduct administrative 
reviews of subject merchandise entered prior to the effective date of 
revocation in response to appropriately filed requests for review.
    These five-year sunset reviews and notice are in accordance with 
section 751(d)(2) of the Tariff Act and published pursuant to section 
777(i)(1) of the Tariff Act.

    Dated: May 5, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E6-7224 Filed 5-10-06; 8:45 am]
BILLING CODE 3510-DS-S