[Federal Register Volume 73, Number 208 (Monday, October 27, 2008)]
[Notices]
[Pages 63682-63684]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-25553]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-201-805


Initiation of Antidumping Duty Changed Circumstances Review: 
Circular Welded Non-Alloy Steel Pipe from Mexico

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: In response to a request from Ternium M[eacute]xico, S.A. de 
C.V. (``Ternium Mexico''), and pursuant to section 751(b) of the Tariff 
Act of 1930, as amended (``the Act'') and 19 CFR 351.216 and 
351.221(c)(3), the Department is initiating a changed circumstances 
review of the antidumping duty order on circular welded non-alloy steel 
pipe (``standard pipe'') from Mexico. This review will determine 
whether Ternium Mexico is the successor-in-interest to Hylsa, S.A. de 
C.V. (``Hylsa'').

EFFECTIVE DATE: October 27, 2008.

FOR FURTHER INFORMATION CONTACT: John Drury or Angelica Mendoza, AD/CVD 
Operations, Office 7, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14\th\ Street and 
Constitution Avenue, NW, Room 7866, Washington, DC 20230; telephone: 
(202) 482-0195 or (202) 482-3019, respectively.

Background

    The Department published an antidumping duty order on standard pipe 
from Mexico on November 2, 1992. See Notice of Antidumping Duty Orders: 
Certain Circular Welded Non-Alloy Steel Pipe from Brazil, the Republic 
of Korea (``Korea''), Mexico, and Venezuela

[[Page 63683]]

and Amendment to Final Determination of Sales at Less Than Fair Value: 
Certain Circular Welded Non-Alloy Steel Pipe from Korea, 57 FR 49453 
(November 2, 1992).
    On September 3, 2008, Ternium Mexico filed a request for a changed 
circumstances review of the antidumping duty order on standard pipe 
from Mexico, claiming that Hylsa, the respondent in the original 
investigation, has changed its name to Ternium Mexico. Ternium Mexico 
requested that the Department determine whether it is the successor-in-
interest to Hylsa, in accordance with section 751(b) of the Act, and 19 
CFR 351.216. In addition, Ternium Mexico submitted documentation in 
support of its claim. In response to Ternium Mexico's request, the 
Department is initiating a changed circumstances review of this order.

Scope of the Order

    The merchandise covered by this order is circular welded non-alloy 
steel pipes and tubes, of circular cross-section, not more than 406.4 
millimeters (16 inches) in outside diameter, regardless of wall 
thickness, surface finish (black, galvanized, or painted), or end 
finish (plain end, beveled end, threaded, or threaded and coupled). 
These pipes and tubes are generally known as standard pipes and tubes 
and are intended for the low-pressure conveyance of water, steam, 
natural gas, and other liquids and gases in plumbing and heating 
systems, air conditioning units, automatic sprinkler systems, and other 
related uses, and generally meet ASTM A-53 specifications. Standard 
pipe may also be used for light load-bearing applications, such as for 
fence tubing, and as structural pipe tubing used for framing and 
support members for reconstruction or load-bearing purposes in the 
construction, shipbuilding, trucking, farm equipment, and related 
industries. Unfinished conduit pipe is also included in this order. All 
carbon steel pipes and tubes within the physical description outlined 
above are included within the scope of this order, except line pipe, 
oil country tubular goods, boiler tubing, mechanical tubing, pipe and 
tube hollows for redraws, finished scaffolding, and finished conduit. 
Standard pipe that is dual or triple certified/stenciled that enters 
the United States as line pipe of a kind used for oil or gas pipelines 
is also not included in this order.
    Imports of the products covered by this order are currently 
classifiable under the following Harmonized Tariff Schedule (HTS) 
subheadings: 7306.30.10.00, 7306.30.50.25, 7306.30.50.32, 
7306.30.50.40, 7306.30.50.55, 7306.30.50.85, and 7306.30.50.90. 
Although the HTS subheadings are provided for convenience and customs 
purposes, our written description of the scope of this order is 
dispositive.

Initiation of Antidumping Duty Changed Circumstances Review

    Pursuant to section 751(b)(1) of the Act, the Department will 
conduct a changed circumstances review upon receipt of a request from 
an interested party or receipt of information concerning an antidumping 
duty order which shows changed circumstances sufficient to warrant a 
review of the order. On September 3, 2008, Ternium Mexico submitted its 
request for a changed circumstances review. With this request, Ternium 
Mexico submitted certain information related to its claim that Hylsa 
changed its name to Ternium Mexico including information describing the 
acquisition of Hylsa by Ternium Luxembourg and the changes in Hylsa's 
operating and corporate structure immediately following that 
acquisition. On September 17, 2008, Allied Tube and Conduit 
(``petitioner'') submitted comments with respect to Ternium Mexico's 
submission. Ternium Mexico filed additional comments in response to 
those made by the petitioner on September 29, 2008. Based on the 
information Ternium Mexico submitted regarding a name change, the 
Department has determined that changed circumstances sufficient to 
warrant a review exist. See 19 CFR 351.216(d). In antidumping duty 
changed circumstances reviews involving a successor-in-interest 
determination, the Department typically examines several factors 
including, but not limited to: (1) management; (2) production 
facilities; (3) supplier relationships; and (4) customer base. See 
Brass Sheet and Strip From Canada: Final Results of Antidumping Duty 
Administrative Review, 57 FR 20460, 20462 (May 13, 1992) and Certain 
Cut-to-Length Carbon Steel Plate from Romania: Initiation and 
Preliminary Results of Changed Circumstances Antidumping Duty 
Administrative Review, 70 FR 22847 (May 3, 2005) (``Plate from 
Romania''). While no single factor or combination of factors will 
necessarily be dispositive, the Department generally will consider the 
new company to be the successor to the predecessor if the resulting 
operations are essentially the same as those of the predecessor 
company. See, e.g., Industrial Phosphoric Acid from Israel: Final 
Results of Antidumping Duty Changed Circumstances Review, 59 FR 6944, 
6945 (February 14, 1994), and Plate from Romania, 70 FR 22847. Thus, if 
the record evidence demonstrates that, with respect to the production 
and sale of the subject merchandise, the new company operates as the 
same business entity as the predecessor company, the Department may 
assign the new company the cash deposit rate of its predecessor. See, 
e.g., Fresh and Chilled Atlantic Salmon from Norway: Final Results of 
Changed Circumstances Antidumping Duty Administrative Review, 64 FR 
9979, 9980 (March 1, 1999). Although Ternium Mexico submitted 
documentation related to its name change and some limited information 
regarding the four factors that the Department considers in its 
successor-in-interest analysis, it failed to provide complete 
supporting documentation for the four elements listed above that is 
sufficient for making the successor-in-interest determination without 
requesting additional information. Accordingly, the Department has 
determined that it would be inappropriate to expedite this action by 
combining the preliminary results of review with this notice of 
initiation, as permitted under 19 CFR 351.221(c)(3)(ii). Therefore, the 
Department is not issuing the preliminary results of its antidumping 
duty changed circumstances review at this time.
    The Department will issue questionnaires requesting additional 
information for the review, and will publish in the Federal Register a 
notice of the preliminary results of the antidumping duty changed 
circumstances review, in accordance with 19 CFR 351.221(b)(2) and (4), 
and 19 CFR 351.221(c)(3)(i). The notice will set forth the factual and 
legal conclusions upon which our preliminary results are based and a 
description of any action proposed based on those results. Pursuant to 
19 CFR 351.221(b)(4)(ii), interested parties will have an opportunity 
to comment on the preliminary results of review. In accordance with 19 
CFR 351.216(e), the Department will issue the final results of its 
antidumping duty changed circumstances review not later than 270 days 
after the date on which the review is initiated.
    During the course of this antidumping duty changed circumstances 
review, the cash deposit requirements for the subject merchandise 
exported and manufactured by Ternium Mexico will continue to be the 
rate established in the final results of the last administrative review 
for all other manufacturers and exporters not previously reviewed. See 
Circular Welded Non-Alloy Steel Pipe

[[Page 63684]]

From Mexico: Final Results of Antidumping Duty Administrative Review, 
66 FR 21311 (April 30, 2001). The cash deposit will be altered, if 
warranted, pursuant only to the final results of this review.
    This notice of initiation is in accordance with section 751(b)(1) 
of the Act, 19 CFR 351.216(b) and (d), and 19 CFR 351.221(b)(1).

    Dated: October 20, 2008.
Stephen J. Claeys,
Deputy Assistant Secretary for Import Administration.
[FR Doc. E8-25553 Filed 10-24-08; 8:45 am]
BILLING CODE 3510-DS-S