[Federal Register Volume 71, Number 180 (Monday, September 18, 2006)]
[Notices]
[Pages 54614-54615]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-15478]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-817]


Notice of Final Results and Partial Rescission of Antidumping 
Duty Administrative Review: Certain Oil Country Tubular Goods from 
Mexico

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: On May 12, 2006, the U.S. Department of Commerce (the 
Department) published the preliminary results of the administrative 
review of the antidumping order covering certain oil country tubular 
goods from Mexico. See Certain Oil Country Tubular Goods from Mexico; 
Preliminary Results of Antidumping Duty Administrative Review and 
Partial Rescission, 71 FR 27676 (May 12, 2006) (``Preliminary 
Results''). The review covers producers Hylsa, S.A. de C.V. (``Hylsa'') 
and Tubos de Acero de Mexico, S.A. (``Tamsa''). The period of review 
(``POR'') is August 1, 2004, through July 31, 2005. We invited parties 
to comment on our Preliminary Results. Based on our analysis of 
comments received, we made one change in the margin calculation, but 
the margin remained unchanged from the preliminary results. The final 
results are listed below in the ``Final Results of Review'' section.

EFFECTIVE DATE:  September 18, 2006.

FOR FURTHER INFORMATION CONTACT: Stephen Bailey or David Kurt Kraus, 
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-
0193 or (202) 482-7871, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On May 12, 2006, we published in the Federal Register the 
preliminary results of this antidumping review. See Preliminary 
Results. In response to our Preliminary Results, on June 12, 2006, we 
received case briefs from Hylsa and U.S. Steel (``petitioner''). On 
June 12, 2006, both Hylsa and petitioner requested a public hearing. On 
June 15, 2006, both Hylsa and petitioner withdrew their requests for a 
hearing. Both parties submitted rebuttal briefs on June 19, 2006.

Partial Rescission

    In our preliminary results, we announced our preliminary decision 
to rescind the review with respect to Tamsa because Tamsa had no 
entries of oil country tubular goods from Mexico during the POR. See 
Preliminary Results. We have received no new information contradicting 
the decision. Therefore, we are rescinding the administrative review 
with respect to Tamsa.

Scope of the Order

    The merchandise covered by this order is oil country tubular goods 
(OCTG), hollow steel products of circular cross-section, including oil 
well casing and tubing of iron (other than cast iron) or steel (both 
carbon and alloy), whether seamless or welded, whether or not 
conforming to American Petroleum Institute (API) or non-API 
specifications, whether finished or unfinished (including green tubes 
and limited-service OCTG products). The scope of this order does not 
cover casing or tubing pipe containing 10.5 percent or more of 
chromium, or drill pipe. The OCTG subject to this order are currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under item numbers: 7304.29.10.10, 7304.29.10.20, 
7304.29.10.30, 7304.29.10.40, 7304.29.10.50, 7304.29.10.60, 
7304.29.10.80, 7304.29.20.10, 7304.29.20.20, 7304.29.20.30, 
7304.29.20.40, 7304.29.20.50, 7304.29.20.60, 7304.29.20.80, 
7304.29.30.10, 7304.29.30.20, 7304.29.30.30, 7304.29.30.40, 
7304.29.30.50, 7304.29.30.60, 7304.29.30.80, 7304.29.40.10, 
7304.29.40.20, 7304.29.40.30, 7304.29.40.40, 7304.29.40.50, 
7304.29.40.60, 7304.29.40.80, 7304.29.50.15, 7304.29.50.30, 
7304.29.50.45, 7304.29.50.60, 7304.29.50.75, 7304.29.60.15, 
7304.29.60.30, 7304.29.60.45, 7304.29.60.60, 7304.29.60.75, 
7305.20.20.00, 7305.20.40.00, 7305.20.60.00, 7305.20.80.00, 
7306.20.10.30, 7306.20.10.90, 7306.20.20.00, 7306.20.30.00, 
7306.20.40.00, 7306.20.60.10, 7306.20.60.50, 7306.20.80.10, and 
7306.20.80.50. The Department has determined that couplings, and 
coupling stock, are not within the scope of the antidumping order on 
OCTG from Mexico. See Letter to Interested Parties; Final Affirmative

[[Page 54615]]

Scope Decision, August 27, 1998. 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

    All issues raised in case and rebuttal briefs submitted by parties 
to this administrative review are addressed in the ``Issues and 
Decision Memorandum'' (Decision Memo) from Stephen J. Claeys, Deputy 
Assistant Secretary for Import Administration, to David M. Spooner, 
Assistant Secretary for Import Administration, dated September 11, 
2006, which is hereby adopted by this notice. The issues the parties 
have raised and our responses to them are included in the Decision Memo 
that is attached to this notice as an appendix. Parties can find a 
complete discussion of all issues raised in this review and the 
corresponding recommendations in this public memorandum, which is on 
file in room B-099 of the main Department building. In addition, a 
complete version of the Decision Memorandum can be accessed directly on 
the internet at http://ia.ita.doc.gov. The paper copy and electronic 
version of the Decision Memo are identical in content.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made the 
following changes for the final results:
    1. We have treated U.S. warranty expense as a direct selling 
expense.
    2. We have excluded imputed inventory carrying cost and imputed 
credit from the calculation of financial expense for constructed value.
    3. We revised Hylsa's profit calculation to reflect the increases 
in constructed value (RFCV).

Final Results of Review

    As a result of our review, we determine that the following 
weighted-average dumping margin exists for the POR:

------------------------------------------------------------------------
                                                       Weighted-Average
                Manufacturer/Exporter                  Margin (percent)
------------------------------------------------------------------------
Hylsa, S.A. de C.V..................................                0.62
------------------------------------------------------------------------

Assessment Rates

    The Department will determine, and U.S. Customs and Border 
Protection (CBP) shall assess, antidumping duties on all appropriate 
entries, pursuant to section 751(a)(1)(B) of the Tariff Act of 1930, as 
amended (the Act), and 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. The Department clarified its ``automatic assessment'' 
regulation on May 6, 2003. See Notice of Policy Concerning Assessment 
of Antidumping Duties, 68 FR 23954 (May 6, 2003). This clarification 
applies to entries of subject merchandise during the period of review 
produced by companies included in these final results for which the 
reviewed companies did not know their merchandise was destined for the 
United States. In such instances, we will instruct CBP to liquidate 
unreviewed entries at the all-others rate if there is no rate for the 
intermediate (reseller) company(ies) involved in the transaction.
    As the merchandise subject to this order is exported from Mexico, 
pursuant to 19 CFR 356.8, the Department will issue appropriate 
assessment instructions directly to CBP on or after the 41\st\ day 
after publication of these final results of review. We will direct CBP 
to assess the appropriate assessment rate against the entered CBP 
values for the subject merchandise on each of the importer's entries 
under the relevant order during the POR.

Cash Deposit Requirements

    The following deposit requirements will be effective upon 
publication of this notice of final results of administrative review 
for all shipments of OCTG from Mexico entered, or withdrawn from 
warehouse, for consumption on or after the date of publication, as 
provided by section 751(a)(1) of the Act: (1) the cash deposit rate for 
the reviewed company will be the rate shown above; (2) for previously 
reviewed or investigated companies not listed above, the cash deposit 
rate will continue to be the company-specific rate published for the 
most recent period; (3) if the exporter is not a firm covered in this 
review, a prior review, or the original less-than-fair-value (LTFV) 
investigation, but the manufacturer is, the cash deposit rate will be 
the rate established for the most recent period for the manufacturer of 
the merchandise; and (4) the cash deposit rate for all other 
manufacturers or exporters will continue to be 23.79 percent. This rate 
is the ``All Others'' rate from the LTFV investigation. See Antidumping 
Duty Order: Oil Country Tubular Goods From Mexico, 60 FR 41056 (August 
11, 1995). These deposit requirements shall remain in effect until 
publication of the final results of the next administrative review.

Notification of Interested Parties

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f) to file a certificate regarding 
the reimbursement of antidumping or countervailing 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 or countervailing duties 
occurred and the subsequent assessment of doubled antidumping duties.
    This notice also serves as a 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 19 CFR 351.305. Timely written 
notification of the return or destruction of APO materials or 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and terms of an APO is a violation, which 
is subject to sanction.
    These final results are issued and published in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: September 11, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix - Issues and Decision Memorandum

1. Offsetting for Export Sales that Exceed Normal Value
2. Limited-Service and Regular-Grade OCTG
3. Brokerage and Handling
4. Warranty Expenses
5. Steel Scrap Purchases
6. Investment Income
7. Inventory Carrying Cost
[FR Doc. E6-15478 Filed 9-15-06; 8:45 am]
BILLING CODE 3510-DS-S