[Federal Register Volume 71, Number 187 (Wednesday, September 27, 2006)]
[Notices]
[Pages 56473-56475]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-15857]


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DEPARTMENT OF COMMERCE

International Trade Administration

(A-351-826)


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

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On May 26, 2006, the Department of Commerce published the 
preliminary results of the administrative review of the antidumping 
duty order on certain small diameter seamless carbon and alloy steel 
standard, line and pressure pipe (seamless pipe) from Brazil. This 
administrative review covers V & M do Brasil, S.A. (VMB), a 
manufacturer/exporter of seamless pipe. The period of review (POR) is 
August 1, 2004, through July 31, 2005.
    Based on our analysis of the comments received, we have made 
changes to certain currency conversion

[[Page 56474]]

variables, but the margin is unchanged from the preliminary results. 
The final weighted-average dumping margin for the reviewed firm is 
shown below in the section entitled ``Final Results of Review.''

EFFECTIVE DATE: September 27, 2006.

FOR FURTHER INFORMATION CONTACT: Helen Kramer or David Kurt Kraus at 
(202) 482-0405 or (202) 482-7871, 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 26, 2006, the Department of Commerce (the Department) 
published in the Federal Register its preliminary results in this 
administrative review. See Certain Small Diameter Seamless Carbon and 
Alloy Steel Standard, Line and Pressure Pipe from Brazil; Preliminary 
Results of Antidumping Duty Administrative Review, 71 FR 30379 (May 26, 
2006) (Preliminary Results). We invited parties to comment on the 
Preliminary Results. On June 26, 2006, we received a case brief from 
the sole respondent, VMB. No other party commented on the Preliminary 
Results. Based on our analysis of the comments received from VMB, we 
corrected errors in currency conversions. These corrections did not 
affect the margin. No party requested a public hearing.

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 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 
that, 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

[[Page 56475]]

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.

Changes Since the Preliminary Results

    VMB stated in its case brief dated June 27, 2006, that the 
Department made a clerical error in the dumping margin calculation in 
the preliminary results. Specifically, VMB argued that the Department 
failed to convert U.S. expenses incurred and reported in Brazilian 
reais to U.S. dollars. See VMB Case Brief, dated June 27, 2006. Based 
on our analysis of the comments received, we concur with VMB and have 
corrected these errors. We note that the corrections did not change the 
margin for the final results. See Memorandum to the File from Helen M. 
Kramer, Team Leader, and David K. Kraus, Case Analyst: Analysis 
Memorandum for the Final Results of Administrative Review of Certain 
Small Diameter Seamless Carbon and Alloy Steel Standard, Line and 
Pressure Pipe from Brazil: V & M do Brasil, S.A., dated August 31, 2006 
(Analysis Memo).

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, 2004, 
through July 31, 2005:

------------------------------------------------------------------------
                                                       Weighted-Average
                      Producer                       Margin (Percentage)
------------------------------------------------------------------------
V & M do Brasil, S.A...............................         0.00 percent
------------------------------------------------------------------------

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 
(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. This clarification will apply to entries of seamless pipe during 
the POR produced by VMB where VMB did not know its 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 company or companies involved in the 
transaction. For a discussion of this clarification, see Notice of 
Policy Concerning Assessment of Antidumping Duties, 68 FR 23954 (May 6, 
2003). The Department will issue appropriate assessment instructions 
directly to CBP within 15 days of publication of these final results of 
review.

Cash Deposit Requirements

    Furthermore, the following deposit requirements will be effective 
upon publication of the final results of this administrative review for 
all shipments of seamless 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 zero; (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. See Notice of Antidumping Duty Order and 
Amended Final Determination: Certain Small Diameter Seamless Carbon and 
Alloy Steel Standard, Line and Pressure Pipe from Brazil, 60 FR 39707 
(August 3, 1995). These deposit rates, when imposed, 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)(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: September 20, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E6-15857 Filed 9-26-06; 8:45 am]
BILLING CODE 3510-DS-S