[Federal Register Volume 73, Number 208 (Monday, October 27, 2008)]
[Notices]
[Pages 63686-63687]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-25554]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-201-836


Initiation of Antidumping Duty Changed Circumstances Review: 
Light-Walled Rectangular Pipe and Tube 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 light-walled rectangular pipe 
and tube (``LWRPT'') 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 the antidumping duty order on LWRPT from 
Mexico on August 5, 2008. See Light-Walled Rectangular Pipe and Tube 
from Mexico, the People's Republic of China, and the Republic of Korea: 
Antidumping Duty Orders; Light-Walled Rectangular Pipe and Tube from 
the Republic of Korea: Notice of Amended Final Determination of Sales 
at Less Than Fair Value, 73 FR 45403 (August 5, 2008).
    On September 3, 2008, Ternium Mexico filed a request for a changed 
circumstances review of the antidumping duty order on LWRPT from 
Mexico, claiming that Hylsa, a Mexican producer of LWRPT, 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 that is covered by this order are 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.

[[Page 63687]]

    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 order 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 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. 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 amended final results of the investigation for 
all other manufacturers and exporters not previously reviewed. See 
Notice of Amended Final Determination of Sales at Less Than Fair Value: 
Light-Walled Rectangular Pipe and Tube From Mexico, 73 FR 45400 (August 
5, 2008). 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. E8-25554 Filed 10-24-08; 8:45 am]
BILLING CODE 3510-DS-S