[Federal Register Volume 72, Number 204 (Tuesday, October 23, 2007)]
[Notices]
[Pages 60001-60003]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-20844]


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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: Final Results of Antidumping Duty 
Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On July 11, 2007, the Department of Commerce (the Department) 
published the preliminary results of the administrative review of the 
antidumping order on certain small diameter seamless carbon and alloy 
steel standard, line and pressure pipe (seamless pipe) from Brazil. See 
Certain Small Diameter Seamless Carbon and Alloy Steel Standard, Line 
and Pressure Pipe from Brazil; Preliminary Results of Antidumping Duty 
Administrative Review, 72 FR 37723 (July 11, 2007) (Preliminary 
Results). The review covers one producer/exporter, V&M do Brasil, S.A. 
(VMB). The period of review (POR) is August 1, 2005, through July 15, 
2006.\1\ We invited interested parties to comment on our Preliminary 
Results. The Department received no comments concerning our preliminary 
results; therefore, our final results remain unchanged from our 
preliminary results. The final results are listed in the section 
``Final Results of Review'' below.
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    \1\ Since the effective date of revocation of the antidumping 
duty order pursuant to the sunset review (see infra Background 
Section) is July 16, 2006, the POR is August 1, 2005, through July 
15, 2006.

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EFFECTIVE DATE: October 23, 2007.

FOR FURTHER INFORMATION CONTACT: Dena Crossland or Stephen Bailey, 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-
3362 or (202) 482-0193, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On May 2, 2007, the International Trade Commission determined 
revocation of the antidumping duty orders on seamless pipe from 
Argentina and Brazil would not likely lead to continuation or 
recurrence of material injury to an industry in the United States. See 
Certain Seamless Carbon and Alloy Steel Standard, Line, and Pressure 
Pipe from Argentina, Brazil, and Germany, 72 FR 26153 (May 8, 2007), 
and ITC Publication 3918 (May 2007), Investigation No. 731-TA-707-709 
(Second Review). Thus, the Department revoked the antidumping duty 
orders on seamless line pipe from Argentina and Brazil, pursuant to 
sections 751(c) and 751(d) of the Act. See Revocation Pursuant to 
Second Five-year (``Sunset'') Reviews of Antidumping Duty Orders: 
Certain Small Diameter Carbon and Alloy Seamless Standard, Line and 
Pressure Pipe from Argentina and Brazil, 72 FR 28027 (May 18, 2007) 
(Revocation of Seamless Pipe from Argentina and Brazil). The Department 
stated in the Revocation of Seamless Pipe from Argentina and Brazil 
that it will complete any pending administrative reviews of these 
orders and will conduct administrative reviews of subject merchandise 
entered prior to the effective date of revocation in response to 
appropriately filed requests for review. Pursuant to section 751(d)(2) 
of the Act and 19 CFR 351.222(i)(2)(i), the effective date of 
revocation is July 16, 2006. As a result, the Department is completing 
the instant review of seamless pipe from Brazil. Accordingly, the 
period of review for this proceeding is from August 1, 2005, to July 
15, 2006.
    On July 11, 2007, the Department published the preliminary results 
of this review in the Federal Register. See Preliminary Results. We 
invited parties to comment on the Preliminary Results. We received no 
comments or a request for a hearing.

Scope of the Antidumping Duty Review

    The products covered by this antidumping duty review 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 review 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 review, 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 review are 
currently classifiable under subheadings 7304.19.10.20, 7304.19.50.20, 
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

[[Page 60002]]

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 
which, 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 review 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 review, 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. Finally, also excluded from 
this review are redraw hollows for cold-drawing when used in the 
production of cold-drawn pipe or tube.
    Excluded from this order are shipments of 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 or manufacturing process (hot-finished or cold-drawn) that 1) 
has been cut into lengths of six to 120 inches, 2) has had the inside 
bore ground to a smooth surface, 3) has had multiple layers of 
specially formulated corrosion resistant glass permanently baked on at 
temperatures of 1,440 to 1,700 degrees Fahrenheit in thicknesses from 
0.032 to 0.085 inch (40 to 80 mils), and 4) has flanges or other forged 
stub ends welded on both ends of the pipe. The special corrosion 
resistant glass referred to in this definition may be glass containing 
by weight 1) 70 to 80 percent of an oxide of silicone, zirconium, 
titanium or cerium (Oxide Group RO2), 2) 10 to 15 percent of 
an oxide of sodium, potassium, or lithium (Oxide Group RO), 3) from a 
trace amount to five percent of an oxide of either aluminum, cobalt, 
iron, vanadium, or boron (Oxide Group R2O3), or 
4) from a trace amount to five percent of a fluorine compound in which 
fluorine replaces the oxygen in any one of the previously listed oxide 
groups. These glass-lined pressure pipes are commonly manufactured for 
use in glass-lined equipment systems for processing corrosive or 
reactive chemicals, including acrylates, alkanolamines, herbicides, 
pesticides, pharmaceuticals and solvents. The glass-lined pressure 
pipes excluded from this antidumping duty review are currently 
classifiable under subheadings 7304.39.0020, 7304.39.0024 and 
7304.39.0028 of the HTSUS.
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, our written description of the scope of this order is 
dispositive.

Final Results of Review

    As noted above, the Department received no comments concerning the 
Preliminary Results. As there have been no changes from or comments on 
the Preliminary Results, we are not attaching a Decision Memorandum to 
this Federal Register notice. For further details of the issues 
addressed in this proceeding, see the Preliminary Results. The final 
weighted-average dumping margin for the period August 1, 2005, through 
July 15, 2006, is as follows:

------------------------------------------------------------------------
                                                                Margin
                   Manufacturer / Exporter                     (percent)
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V&M do Brasil, S.A..........................................        0.00
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Assessment Rates

    The Department will determine and U.S. Customs and Border 
Protection (CBP) shall assess, antidumping duties on all appropriate 
entries, in accordance with 19 CFR 351.212(b). Since the importer-
specific assessment rate calculated in the final results of this review 
is 0 percent, we will instruct CBP to liquidate without regard to 
antidumping duties for these entries. See 19 CFR 351.106(c)(1).
    The Department clarified its ``automatic assessment'' regulation on 
May 6, 2003. See Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) (Assessment 
Policy Notice). This clarification will apply to entries of subject 
merchandise during the POR produced by companies included in these 
final results of review for which the reviewed companies did not know 
that the merchandise they sold to the intermediary (e.g., a reseller, 
trading company, or exporter) 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 intermediary 
involved in the

[[Page 60003]]

transaction. See Assessment Policy Notice for a full discussion of this 
clarification.

Cash Deposit Requirements

    The Department notified CBP to discontinue suspension of 
liquidation and collection of cash deposits on entries of the subject 
merchandise entered or withdrawn from warehouse on or after July 16, 
2006, the effective date of revocation of the antidumping duty order.

Notification to Importers

    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 351.402(f) 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 the subsequent 
assessment of double antidumping duties.

Administrative Protective Order

    This notice also serves as a reminder to parties subject to an 
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 terms of an APO is a violation that is subject 
to sanction.
    This administrative review and notice are issued and published in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: October 16, 2007.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E7-20844 Filed 10-22-07; 8:45 am]
BILLING CODE 3510-DS-S