[Federal Register Volume 71, Number 194 (Friday, October 6, 2006)]
[Notices]
[Pages 59079-59081]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-16601]


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DEPARTMENT OF COMMERCE

International Trade Administration

(A-357-809, A-351-826, A-428-820)


Certain Small Diameter Carbon and Alloy Seamless Standard, Line, 
and Pressure Pipe from Argentina, Brazil and Germany: Final Results of 
the Expedited Sunset Reviews of the Antidumping Duty Orders

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On June 1, 2006, the Department of Commerce (the Department) 
initiated sunset reviews of the antidumping duty orders on certain 
small diameter carbon and alloy seamless standard, line, and pressure 
pipe (seamless line pipe) from Argentina, Brazil, and Germany pursuant 
to section 751(c) of the Tariff Act of 1930, as amended (the Act). See 
Initiation of Five-year (``Sunset'') Reviews, 71 FR 31153 (June 1, 
2006) (Sunset Initiation). On the basis of a notice of intent to 
participate and adequate substantive responses filed on behalf of 
domestic interested parties, and only one notice of intent to 
participate filed on behalf of a German respondent interested party, 
Benteler Stahl/Rohr GmbH (Benteler Stahl), the response for which was 
determined by the Department to be inadequate, the Department conducted 
expedited (120-day) sunset reviews. As a result of these sunset 
reviews, the Department finds that revocation of the antidumping duty 
orders would likely lead to the continuation or recurrence of dumping. 
The dumping margins are identified in the Final Results of Review 
section of this notice.

EFFECTIVE DATE: October 6, 2006.

FOR FURTHER INFORMATION CONTACT: Dana Mermelstein or Dena Crossland, 
AD/CVD Operations, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
1391 or (202) 482-3362, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On June 1, 2006, the Department initiated sunset reviews of the 
antidumping duty orders on seamless line pipe from Argentina, Brazil, 
and Germany pursuant to section 751(c) of the Act. See Sunset 
Initiation. The Department received notices of intent to participate 
from two domestic interested parties, United States Steel Corporation 
(US Steel) and Koppel Steel Corporation (Koppel Steel) (collectively, 
domestic interested parties), within the deadline specified in section 
351.218(d)(1)(i) of the Department's regulations. Domestic interested 
parties claimed interested party status under section 771(9)(C) of the 
Act as U.S. producers of the domestic like product. We received 
complete substantive responses from the domestic interested parties 
within the 30-day deadline specified in 19 CFR 351.218(d)(3)(i) on July 
3, 2006.
    The Department received one substantive response from the German 
respondent interested party, Benteler Stahl, on July 3, 2006. On July 
14, 2006, we received rebuttal responses from domestic interested 
parties and Benteler Stahl. After reviewing its substantive and 
rebuttal responses, the Department determined that Benteler Stahl's 
submissions were inadequate, pursuant to sections 218(e)(1)(ii)(A) and 
(C) of the Department's regulations. See Memorandum from Dena M. 
Crossland, Import Compliance Specialist, through Richard O. Weible, AD/
CVD Operations Office 7 Director, to Stephen J. Claeys, Deputy 
Assistant Secretary of Import Administration, regarding Adequacy 
Determination: Sunset Review of the Antidumping Duty Order on Seamless 
Standard Line, and Pressure Pipe from Germany, dated July 21, 2006. No 
other respondent interested parties submitted responses. As a result of 
the timely filed, substantive responses from domestic interested 
parties, and the inadequacy of the substantive response for Germany 
(the sole substantive response from a respondent interested party in 
these sunset reviews), the Department conducted expedited sunset 
reviews of these orders, pursuant to section 751(c)(3)(B) of the Act 
and 19 CFR 351.218(e)(1)(ii)(C)(2).

Scope of the Orders

    The products covered by the orders are seamless carbon and alloy 
(other than stainless) steel standard, line, and pressure pipes and 
redraw hollows produced, or equivalent, to the ASTM A-53, ASTM A-106, 
ASTM A-333, ASTM A-334, ASTM A-335, ASTM A-589, ASTM A-795, and the API 
5L specifications and meeting the physical parameters described below, 
regardless of application. The scope of the orders also includes all 
products used in standard, line, or pressure pipe

[[Page 59080]]

applications and meeting the physical parameters described below, 
regardless of specification.
    Specifically included within the scope of the orders are seamless 
pipes and redraw hollows, less than or equal to 4.5 inches (114.3 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 the orders are currently classifiable 
under the subheadings 7304.10.10.20, 7304.10.50.20, 7304.31.30.00, 
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).
    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 gases 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 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 
gases 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 pipelines. 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 is use 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, ASTM A-
106 pipes may be used in some boiler applications.
    Redraw hollows are any unfinished pipe or ``hollow profiles'' of 
carbon or alloy steel transformed by hot rolling or cold drawing/ 
hydrostatic testing or other methods to enable the material to be sold 
under ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-335, ASTM 
A-589, ASTM A-795, and API 5L specifications.
    The scope of the orders 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 specific exclusions discussed below, 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 the orders. 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-335, 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, 
with the exception of the specific exclusions discussed below, such 
products are covered by the scope of the orders.
    Specifically excluded from the scope of the orders are 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-335, ASTM A-589, ASTM 
A-795, and API 5L specifications and are not used in standard, line, or 
pressure pipe applications. In addition, finished and unfinished oil 
country tubular goods (OCTG) are excluded from the scope of the orders, 
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.
    With regard to the excluded products listed above, the Department 
will not instruct U.S. Customs and Border Protection (CBP) 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 used in a covered application. If 
such information is provided, we 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 covered applications 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-161 specification is being 
used in a standard, line or pressure application, we will require end-
use certifications for imports of that specification. Normally we 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, we 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, our written description of the merchandise subject to 
this scope is dispositive.

[[Page 59081]]

Analysis of Comments Received

    All issues raised in these cases are addressed in the ``Issues and 
Decision Memorandum'' from Stephen J. Claeys, Deputy Assistant 
Secretary for Import Administration, to David M. Spooner, Assistant 
Secretary for Import Administration, dated September 28, 2006, 
(Decision Memorandum), which is hereby adopted by this notice. The 
issues discussed in the Decision Memorandum include the likelihood of 
continuation or recurrence of dumping and the magnitude of the margin 
likely to prevail if the orders are revoked. Parties can find a 
complete discussion of all issues raised in these sunset reviews 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 Web at http://ia.ita.doc.gov, under the 
heading ``September 2006.'' The paper copy and electronic version of 
the Decision Memorandum are identical in content.

Final Results of Reviews

    We determine that revocation of the antidumping duty orders on pipe 
fittings from Argentina, Brazil, and Germany would likely lead to 
continuation or recurrence of dumping at the following percentage 
weighted-average margins:

------------------------------------------------------------------------
 Manufacturers/exporters/producers    Weighted-average margin (percent)
------------------------------------------------------------------------
Argentina..........................
Siderca SAIC.......................                               108.13
All Others.........................                               108.13
Brazil.............................
V & M do Brasil, S.A...............                               124.94
All Others.........................                               124.94
Germany............................
Vallourec & Mannesmann Tubes - V&M                                 57.72
 Deutschland GmbH..................
All Others.........................                                57.72
------------------------------------------------------------------------

    This notice also serves as the only 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 
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.
    We are issuing and publishing the results and notice in accordance 
with sections 751(c), 752, and 777(i)(1) of the Act.

    Dated: September 29, 2006.
Stephen J. Claeys,
Acting Assistant Secretaryfor Import Administration.
[FR Doc. E6-16601 Filed 10-5-06; 8:45 am]
BILLING CODE 3510-DS-S