[Federal Register Volume 73, Number 122 (Tuesday, June 24, 2008)]
[Notices]
[Pages 35655-35657]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-14255]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-859]


Notice of Final Determination of Sales at Less Than Fair Value: 
Light-Walled Rectangular Pipe and Tube from the Republic of Korea

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On January 31, 2008, the U.S. Department of Commerce (the 
Department) published a preliminary determination in the antidumping 
duty investigation of light-walled rectangular pipe and tube from the 
Republic of Korea. See Notice of Preliminary Determination of Sales at 
Less Than Fair Value and Postponement of Final Determination: Light-
Walled Rectangular Pipe and Tube From the Republic of Korea, 73 FR 5794 
(January 31, 2008) (Preliminary Determination).
    We continue to find that light-walled rectangular pipe and tube 
from the Republic of Korea is being, or is likely to be, sold in the 
United States at less than fair value (LTFV), as provided in section 
733(b) of the Tariff Act of 1930, as amended (the Tariff Act). The 
estimated margins of sales at LTFV are listed below in the section 
entitled ``Continuation of Suspension of Liquidation.''

EFFECTIVE DATE: June 24, 2008.

FOR FURTHER INFORMATION CONTACT: Mark Flessner or Robert James, 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-
6312 or (202) 482-0649, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On January 31, 2008, the Department published the preliminary 
determination and invited interested parties to comment. See 
Preliminary Determination. The petitioners in this investigation are 
Allied Tube and Conduit, Atlas Tube, Bull Moose Tube Company, 
California Steel and Tube, EXLTUBE, Hannibal Industries, Leavitt Tube 
Company, Maruichi American Corporation, Searing Industries, Southland 
Tube, Vest Inc., Welded Tube, and Western Tube and Conduit 
(Petitioners). The respondents are Ahshin Pipe & Tube, Dong-A Steel 
Pipe Co. Ltd., Han Gyu Rae Steel, Co., Ltd., HiSteel Co. Ltd., Jinbang 
Steel Co. Ltd., Joong Won, Kukje Steel Co., Ltd., Miju Steel Mfg. Co. 
Ltd., Nexteel Co., Ltd. (Nexteel), SeAH Steel Corporation, Ltd., and 
Yujin Steel Industry Co.
    Only Nexteel responded fully to the Section A, B, C, and D 
questionnaires. (For a complete background concerning the involvement 
of companies other than Nexteel, see Preliminary Determination.) We 
gave interested parties an opportunity to comment on the preliminary 
determination. We received a case brief from Petitioners on May 9, 
2008, and a rebuttal brief from Nexteel on May 16, 2008. We did not 
receive a request for a public hearing.
    Based upon the results of verification, we have made no changes to 
the dumping calculations; a revision of Nexteel's databases was, 
however, required. On December 26, 2007, Petitioners timely filed with 
the Department an allegation of targeted dumping with respect to 
Nexteel. Nexteel filed comments regarding Petitioners' allegation on 
January 3, 2008. Upon review of Petitioners' allegation, the Department 
determined that further information was needed in order to adequately 
analyze Petitioners' allegation. The Department issued a supplemental 
questionnaire to Petitioners on January 14, 2008, requesting that they 
address deficiencies identified by the Department. See Letter from 
Richard O. Weible, Director, Office 7, to Petitioners, dated January 
14, 2008. Because there was a need for supplemental information 
regarding the allegation, we did not have sufficient bases for making a 
finding regarding Petitioners' allegations of targeted dumping prior to 
the preliminary determination. On January 25, 2008, Petitioners 
submitted a response to the

[[Page 35656]]

Department's supplemental targeted dumping questionnaire.
    We conducted a verification of Nexteel's cost of production 
responses on March 6-12, 2008. See memorandum from Christopher J. 
Zimpo, Accountant, to the File, entitled ``Verification of the Cost 
Response of Nexteel Co., Ltd. Antidumping Investigation of Light-Walled 
Rectangular Pipe and Tube From the Republic of Korea,'' dated April 25, 
2008 (Cost Verification Report). We conducted a verification of 
Nexteel's sales responses on March 13-18, 2008. See memorandum from 
Mark Flessner to the file entitled ``Light-Walled Rectangular Pipe and 
Tube from the Republic of Korea: Verification of Nexteel Co., Ltd.,'' 
dated May 1, 2008 (Sales Verification Report).
    On May 2, 2008, we placed on the record the memorandum from Mark 
Flessner, Case Analyst, to Richard O. Weible, Office Director, entitled 
``Antidumping Duty Investigation of Light-Walled Rectangular Pipe and 
Tube from Korea: Final Analysis on Targeting Dumping'' (Targeted 
Dumping Memorandum). For a discussion of our findings, see the section 
below entitled ``Targeted Dumping.''
    We received a case brief from Petitioners on May 9, 2008. We 
received a rebuttal brief from Nexteel on May 16, 2008. We received no 
request for a public hearing, so no hearing was held.

Period of Investigation

    The period of investigation (POI) is April 1, 2006, through March 
31, 2007.

Scope of Investigation

    The merchandise that is the subject of this investigation is 
certain welded carbon quality light-walled steel pipe and tube, of 
rectangular (including square) cross section, having a wall thickness 
of less than 4 mm. The term carbon-quality steel includes both carbon 
steel and alloy steel which contains only small amounts of alloying 
elements. Specifically, the term carbon-quality includes products in 
which none of the elements listed below exceeds the quantity by weight 
respectively indicated: 1.80 percent of manganese, or 2.25 percent of 
silicon, or 1.00 percent of copper, or 0.50 percent of aluminum, or 
1.25 percent of chromium, or 0.30 percent of cobalt, or 0.40 percent of 
lead, or 1.25 percent of nickel, or 0.30 percent of tungsten, or 0.10 
percent of molybdenum, or 0.10 percent of niobium, or 0.15 percent 
vanadium, or 0.15 percent of zirconium. The description of carbon-
quality is intended to identify carbon-quality products within the 
scope. The welded carbon-quality rectangular pipe and tube subject to 
this investigation is currently classified under the Harmonized Tariff 
Schedule of the United States (HTSUS) subheadings 7306.61.50.00 and 
7306.61.70.60. While HTSUS subheadings are provided for convenience and 
Customs purposes, our written description of the scope of this 
investigation is dispositive.

Fair Value Comparisons

    We calculated export price and normal value based on the same 
methodologies used in the Preliminary Determination. We used the home 
market and U.S. sales databases submitted by Nexteel after 
verification, which included minor corrections presented at the 
beginning of verification and findings from verification. See Sales 
Verification Report.

Cost of Production and Constructed Value

    We calculated the cost of production and constructed value for 
Nexteel based on the same methodologies used in the Preliminary 
Determination.

Verification

    As provided in section 782(i)(1) of the Tariff Act, we verified the 
information submitted by respondents during the periods March 6-12, 
2008 (cost) and March 13-18, 2008 (sales) (see Cost Verification Report 
and Sales Verification Report). We used standard verification 
procedures, including examination of relevant accounting and production 
records, as well as original source documents provided by the 
respondents.

Analysis of Comments Received

    The issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the memorandum from Stephen Claeys, 
Deputy Assistant Secretary for Import Administration, to David Spooner, 
Assistant Secretary for Import Administration, entitled ``Issues and 
Decision Memorandum for Final Determination of Sales at Less Than Fair 
Value: Light-Walled Rectangular Pipe and Tube from the Republic of 
Korea'' (Issues and Decisions Memorandum), dated June 13, 2008, which 
is hereby adopted by this notice. The Issues and Decisions Memorandum 
is on file in the Central Records Unit (CRU), room 1117 of the 
Department of Commerce main building and can be accessed directly at 
http://ia.ita.doc.gov/frn. The paper copy and electronic version of the 
Issues and Decisions Memorandum are identical in content. A list of the 
issues addressed in the Issues and Decisions Memorandum is appended to 
this notice.

Targeted Dumping

    We determine that Petitioners' allegations of targeted dumping 
failed to provide a reasonable basis to find a pattern of export prices 
for comparable merchandise that differ significantly among purchasers 
or regions. We determine further that Petitioners had not demonstrated 
that any such differences could not be taken into account using the 
average-to-average methodology, pursuant to section 777A(d)(1)(B) of 
the Tariff Act. We conclude that, for the final determination, we 
should continue to utilize the average-to-average methodology in 
calculating the final margins for Nexteel for the reasons set forth in 
the Issues and Decisions Memorandum.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B)(ii) of the Tariff Act, we 
are directing U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all imports of subject merchandise from Korea 
that are entered, or withdrawn from warehouse, for consumption on or 
after January 31, 2008, the date of publication of the Preliminary 
Determination in the Federal Register. CBP shall continue to require a 
cash deposit or the posting of a bond equal to the weighted-average 
amount by which the NV exceeds the EP, as indicated in the chart below. 
These suspension-of-liquidation instructions will remain in effect 
until further notice.
The weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                       Weighted-Average
                  Producer/Exporter                         Margin
                                                         (Percentage)
------------------------------------------------------------------------
Nexteel Co., Ltd....................................   1.30 (de minimis)
Dong-A Steel Pipe Co. Ltd...........................               30.66
HiSteel Co. Ltd.....................................               30.66
Jinbang Steel Co. Ltd...............................               30.66
Joong Won...........................................               30.66
Miju Steel Mfg. Co., Ltd............................               30.66
Yujin Steel Industry Co.............................               30.66
Ahshin Pipe & Tube..................................               30.66
Han Gyu Rae Steel Co., Ltd..........................               30.66
Kukje Steel Co., Ltd................................               30.66
SeAH Steel Corporation, Ltd.........................               15.98
All others..........................................               15.98
------------------------------------------------------------------------

ITC Notification

    In accordance with section 735(d) of the Tariff Act, we have 
notified the International Trade Commission (ITC) of

[[Page 35657]]

our determination. As our final determination is affirmative, the ITC 
will, within 45 days, determine whether these imports are materially 
injuring, or threatening material injury to, the United States 
industry. If the ITC determines that material injury, or threat of 
material injury, does not exist, the proceeding will be terminated and 
all securities posted will be refunded or canceled. If the ITC 
determines that such injury does exist, the Department will issue an 
antidumping duty order.

Notification to Interested Parties

    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305. Timely notification of return or 
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.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Tariff Act.

    Dated: June 13, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.

APPENDIX

List of Issues
1. Initiation of Targeted Dumping Analysis
2. Use of Offsets in Calculating Dumping Margin
[FR Doc. E8-14255 Filed 6-?23-08; 8:45 am]
BILLING CODE 3510-DS-S