[Federal Register Volume 73, Number 42 (Monday, March 3, 2008)]
[Notices]
[Pages 11393-11395]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-4063]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-850]


Carbon and Alloy Seamless Standard, Line, and Pressure Pipe (over 
4[frac1s2] Inches) from Japan: Notice of Rescission of Antidumping Duty 
Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On July 26, 2007, the U.S. Department of Commerce (the 
Department) published a notice of initiation of an administrative 
review of the antidumping duty order on carbon and alloy seamless 
standard, line, and pressure pipe (over 4[frac1s2] inches) from Japan. 
The review covers four manufacturers/exporters: JFE Steel Corporation; 
Nippon Steel Corporation; NKK Tubes; and Sumitomo Metal Industries, 
Ltd. The period of review (POR) is June 1, 2006, through May 31, 2007. 
Following the receipt of a certification of no shipments from all four 
respondents, we notified the domestic interested party of the 
Department's intent to rescind this review and provided an opportunity 
to comment on the rescission. We received no comments. Therefore, we 
are rescinding this administrative review.

EFFECTIVE DATE: March 3, 2008.

FOR FURTHER INFORMATION CONTACT: Salim Bhabhrawala, AD/CVD Operations, 
Office 1, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230; telephone: (202) 482-1784.

[[Page 11394]]


SUPPLEMENTARY INFORMATION:

Background

    On June 1, 2007, the Department published a notice of opportunity 
to request an administrative review of the antidumping duty order on 
carbon and alloy seamless standard, line, and pressure pipe (over 
4[frac1s2] inches) from Japan for the period June 1, 2006, through May 
31, 2007. See Antidumping or Countervailing Duty Order, Finding or 
Suspended Investigation; Opportunity to Request Administrative Review, 
72 FR 30542 (June 1, 2007). On June 29, 2007, United States Steel 
Corporation (U.S. Steel), a domestic producer of the subject 
merchandise, made a timely request that the Department conduct an 
administrative review of JFE Steel Corporation, Nippon Steel 
Corporation, NKK Tubes, and Sumitomo Metal Industries, Ltd. On July 26, 
2007, in accordance with section 751(a) of the Tariff Act of 1930, as 
amended (the Act), the Department published in the Federal Register a 
notice of initiation of this antidumping duty administrative review. 
See Initiation of Antidumping and Countervailing Duty Administrative 
Reviews and Request for Revocation in Part, 72 FR 41057 (July 26, 
2007). On August 10, 2007, the Department issued its antidumping duty 
questionnaire to JFE Steel Corporation, Nippon Steel Corporation, NKK 
Tubes, and Sumitomo Metal Industries, Ltd. On August 27, 2007, Nippon 
Steel Corporation submitted a letter to the Department, certifying that 
the company made no shipments or entries for consumption in the United 
States of the subject merchandise during the POR. On August 28, 2007, 
JFE Steel Corporation submitted a letter to the Department, certifying 
that the company made no shipments or entries for consumption in the 
United States of the subject merchandise during the POR. On August 31, 
2007, both NKK Tubes, and Sumitomo Metal Industries, Ltd. submitted 
letters to the Department, certifying that the companies made no 
shipments or entries for consumption in the United States of the 
subject merchandise during the POR.

Scope of the Order

    The products covered by this review 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. The scope of this review 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 review 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 review are currently 
classifiable under the subheadings 7304.10.10.30, 7304.10.10.45, 
7304.10.10.60, 7304.10.50.50, 7304.19.10.30, 7304.19.10.45, 
7304.19.10.60, 7304.19.50.50, 7304.31.60.10, 7304.31.60.50, 
7304.39.00.04, 7304.39.00.06, 7304.39.00.08, 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, 
7304.51.50.15, 7304.51.50.45, 7304.51.50.60, 7304.59.20.30, 
7304.59.20.55, 7304.59.20.60, 7304.59.20.70, 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.
    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 review 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

[[Page 11395]]

applications and the above-listed specifications are defining 
characteristics of the scope of this review. 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 review.
    Specifically excluded from the scope of this review 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 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, 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 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, 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.

Rescission of the Administrative Review

    As noted above, all four respondents submitted letters to the 
Department indicating that they did not make any shipments or entries 
of subject merchandise to the United States during the POR. In response 
to the Department's query to U.S. Customs and Border Protection (CBP), 
CBP data showed a small quantity of subject merchandise manufactured by 
one or more of the respondent companies was entered for consumption 
into the United States during the POR from a third country. On November 
8, 2007, the Department placed on the record of this review copies of 
the entry documents in question. On the basis of these documents, the 
Department concluded that there is no evidence on the record that the 
respondents in question were involved with the 2007 entries of the 
subject merchandise into the United States. Specifically, although JFE 
Steel Corporation, Nippon Steel Corporation, NKK Tubes, and Sumitomo 
Metal Industries, Ltd. did not have any sales or exports of subject 
merchandise to the United States during the POR, subject merchandise 
produced by one or more of these companies entered the United States 
during the POR under their antidumping case number, without their 
knowledge by way of intermediaries. See Memorandum to the File, from 
Salim Bhabhrawala, Case Analyst, ``Department Intent to Rescind 
Review,'' January 16, 2008 (Intent to Rescind Memo). Thus, the 
Department found that the respondents' claims of no shipments or 
entries for consumption to be substantiated. On January 16, 2008, the 
Department notified interested parties of its intent to rescind this 
administrative review and gave parties until January 28, 2008 to 
provide comments. No comments were received. See Intent to Rescind 
Memo.
    Based upon the certifications and the evidence on the record, we 
are satisfied that no respondent had shipments of subject merchandise 
to the United States during the POR. Pursuant to 19 CFR 351.213(d)(3), 
the Department may rescind an administrative review, in whole or with 
respect to a particular exporter or producer, if the Secretary 
concludes that, during the period covered by the review, there were no 
entries, exports, or sales of the subject merchandise. Therefore, the 
Department is rescinding this review in accordance with 19 CFR 
351.213(d)(3).
    The Department will instruct CBP 15 days after the publication of 
this notice to liquidate such entries at the ``All Others'' rate in 
effect on the date of the entry. See 19 CFR 351.212(c); see also 
Antidumping and Countervailing Duty Proceedings: Assessment of 
Antidumping Duties, 68 FR 23954 (May 6, 2003).
    We are issuing and publishing this notice in accordance with 
sections 751(a)(1) 777 (i) of the Act and 19 CFR 351.213(d)(4).

    Dated: February 25, 2008.
Stephen J. Claeys,
Deputy Assistant Secretary for Import Administration.
[FR Doc. E8-4063 Filed 2-29-08; 8:45 am]
BILLING CODE 3510-DR-S