[Federal Register Volume 74, Number 124 (Tuesday, June 30, 2009)]
[Notices]
[Pages 31242-31244]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-15492]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-810]


Certain Welded Stainless Steel Pipes From the Republic of Korea: 
Final Results of Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: On December 24, 2008, the Department of Commerce (the 
Department) published the preliminary results of administrative review 
of the antidumping duty order on certain welded stainless steel pipes 
(WSSP) from the Republic of Korea. The review was requested by Bristol 
Metals LLC (domestic interested party), and covers one producer of the 
subject merchandise, SeAH Steel Corporation (SeAH). The period of 
review (POR) is December 1, 2006 through November 30, 2007. Based on 
our analysis of the comments received, we have made changes to the 
preliminary results, which are discussed in the ``Changes Since the 
Preliminary Results'' section below. For the final dumping margin, see 
the ``Final Results of Review'' section below.

DATES: Effective Date: June 30, 2009.

FOR FURTHER INFORMATION CONTACT: Myrna Lobo, AD/CVD Operations, Office 
6, Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230; telephone: (202) 482-2371.

SUPPLEMENTARY INFORMATION: 

Background

    On December 24, 2008, the Department published in the Federal 
Register the preliminary results of the administrative review of the 
antidumping duty order on WSSP from the Republic of Korea. See Certain 
Welded Stainless Steel Pipes from the Republic of Korea: Preliminary 
Results of Antidumping Duty Administrative Review, 73 FR 79050 
(December 24, 2008) (Preliminary Results). In the preliminary results, 
the Department explained it intended to solicit quarterly pipe cost of 
production (COP) and constructed value (CV) information from SeAH after 
the preliminary results. On January 15, 2009, the Department issued a 
supplemental section D questionnaire requesting the quarterly cost 
information. On January 26, 2009, SeAH submitted its response. After 
evaluating the information, on April 29, 2009, the Department issued 
its preliminary decision to adjust the COP and CV information. See 
Memorandum from Gina Lee, Senior Accountant to Neal M. Halper, 
Director, Office of Accounting, Proposed Adjustments to the Cost of 
Production and Constructed Value Information--SeAH Steel Corporation 
dated April 29, 2009.
    The Department conducted sales and cost verifications of SeAH in 
Seoul, South Korea in February 2009 and March 2009, and a sales 
verification of SeAH's U.S. affiliate, Pusan Pipe America (PPA) in 
April 2009. See the ``Verification'' section below for additional 
information.
    On April 2, 2009, the Department extended the deadline for the 
final results from April 23, 2009 to June 22, 2009. See Welded ASTM A-
312 Stainless Steel Pipe From South Korea: Extension of Time Limit for 
Final Results of Antidumping Duty Administrative Review, 74 FR 14959 
(April 2, 2009).
    The Department invited parties to comment on the Preliminary 
Results, the preliminary decision to adjust COP and CV information, and 
the verification reports. On May 4, 2009, the Department extended the 
deadlines for case briefs and rebuttal briefs. On May 11, 2009, the 
domestic interested party and respondent filed timely case briefs.

[[Page 31243]]

On May 18, 2009, both parties filed rebuttal briefs.
    The Department met with interested parties on May 28, 2009, and 
June 1, 2009. See Memorandum to the File from Dana Mermelstein, Program 
Manager, Office 6, Administrative Review of the Antidumping Duty Order 
on Welded Stainless Steel Pipe from Korea: Meetings with Interested 
Parties, dated June 2, 2009.

Period of Review

    The POR is December 1, 2006 through November 30, 2007.

Scope of the Order

    The merchandise subject to the antidumping duty order is welded 
austenitic stainless steel pipe that meets the standards and 
specifications set forth by the American Society for Testing and 
Materials (ASTM) for the welded form of chromium-nickel pipe designated 
ASTM A-312. The merchandise covered by the scope of the order also 
includes austenitic welded stainless steel pipes made according to the 
standards of other nations which are comparable to ASTM A-312.
    WSSP is produced by forming stainless steel flat-rolled products 
into a tubular configuration and welding along the seam. WSSP is a 
commodity product generally used as a conduit to transmit liquids or 
gases. Major applications for steel pipe include, but are not limited 
to, digester lines, blow lines, pharmaceutical lines, petrochemical 
stock lines, brewery process and transport lines, general food 
processing lines, automotive paint lines, and paper process machines. 
Imports of WSSP are currently classifiable under the following 
Harmonized Tariff Schedule of the United States (HTSUS) subheadings: 
306.40.5005, 7306.40.5015, 7306.40.5040, 7306.40.5065, and 
7306.40.5085. Although these subheadings include both pipes and tubes, 
the scope of the antidumping duty order is limited to welded austenitic 
stainless steel pipes. The HTSUS subheadings are provided for 
convenience and customs purposes. However, the written description of 
the scope of the order is dispositive.

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(``the Act''), from February 9, 2009 through February 13, 2009, and 
from March 9, 2009 through March 13, 2009, the Department verified the 
sales and cost information submitted by SeAH in its questionnaire 
responses provided during the course of this review. The Department 
also conducted verification of SeAH's U.S. affiliate, Pusan Pipe 
America (PPA) on April 15 and 16, 2009, in Los Angeles, California. We 
used standard verification procedures including examination of relevant 
accounting and production records, and original source documents 
provided by the respondent. See Memorandum from Jacqueline Arrowsmith 
and Douglas Kirby, International Trade Compliance Analysts, to The 
File, ``Verification of the Sales Response of SeAH Steel Corporation 
(SeAH) in the 2006-2007 Antidumping Duty Administrative Review of 
certain welded Stainless Steel Welded Pipe from the Republic of Korea 
(South Korea),'' dated March 25, 2009 (``Sales Verification Report''); 
Memorandum from Douglas Kirby and Summer Avery, International Trade 
Compliance Analysts, to The File, ``Verification of the Sales Response 
of Pusan Pipe America (PPA) in the 2006-2007 Antidumping Duty 
Administrative Review of certain welded Stainless Steel Welded Pipe 
from the Republic of Korea (South Korea),'' dated April 27, 2009 (``CEP 
Verification Report''); Memorandum from Stephanie Arthur to Neal Halper 
``Verification of the Cost Response of SeAH Steel Corporation in the 
Antidumping Duty Administrative Review of Welded ASTM A-312 Stainless 
Steel Pipe from Korea,'' dated April 28, 2009 (``Cost Verification 
Report''). The public versions of these verification reports are on 
file in the Central Records Unit (CRU), Room 1117 of the main Commerce 
Building.

Analysis of Comments Received

    The issues raised in the case and rebuttal briefs by parties to 
this administrative review are addressed in the Memorandum from John M. 
Andersen, Acting Deputy Assistant Secretary for Import Administration 
to Ronald K. Lorentzen, Acting Assistant Secretary for Import 
Administration; Antidumping Duty Administrative Review of Certain 
Welded Stainless Steel Pipes from the Republic of Korea: Issues and 
Decision Memorandum for the Final Results (Decision Memorandum), dated 
concurrently with this notice and which is hereby adopted by this 
notice. A list of the issues addressed in the Decision Memorandum is 
appended to this notice. The Decision Memorandum is also on file in the 
CRU, and can be accessed directly on the Web at http://ia.ita.doc.gov/frn. The paper copy and electronic version of the Decision Memorandum 
are identical in content.

Changes Since the Preliminary Results

    Based on the results of verification, our analysis of comments 
received, and our consideration of information submitted by SeAH on 
January 26, 2009, in its supplemental questionnaire response, received 
subsequent to the issuance of the Preliminary Results, we have made 
adjustments to our margin calculations. As explained in our Decision 
Memorandum, we have continued to use a quarterly cost averaging 
methodology in calculating COP and CV. However, for these final 
results, we have made several changes to the calculation of COP and CV, 
and the margin program. We adjusted SeAH's reported financial expense 
ratio to (1) exclude interest income generated on retirement and 
severance deposits, and (2) include the net gain associated with 
currency options and swaps; we changed the adjustment applied to COM in 
our preliminary results pursuant to the major input and transactions 
disregarded rules; and, we made certain modifications to the program to 
ensure proper product comparisons and the use of the correct reporting 
period. These adjustments are discussed in detail in the Decision 
Memorandum, and in the Memorandum to the File, from Myrna Lobo, Case 
Analyst, Calculation Memorandum for the Final Results of Administrative 
Review of the Antidumping Duty Order on Stainless Steel Pipe from the 
Republic of Korea--SeAH Steel Corporation (June 22, 2009) at the 
section titled ``Changes from the Preliminary Results.'' See also 
Memorandum from Stephanie Arthur to Neal Halper, Adjustments to the 
Cost of Production and Constructed Value Information for the Final 
Results--SeAH Steel Corporation, (June 22, 2009).

Final Results of Review

    As a result of our review, we determine that the following 
weighted-average margin exists for the period of December 1, 2006 
through November 30, 2007:

------------------------------------------------------------------------
                                                             Weighted-
                  Manufacturer/Exporter                   Average margin
                                                             (Percent)
------------------------------------------------------------------------
SeAH Steel Corporation..................................            9.05
------------------------------------------------------------------------

Assessment Rates

    The Department shall determine, and U.S. Customs and Border 
Protection (CBP) shall assess, antidumping duties on all appropriate 
entries. Pursuant to 19 CFR 351.212(b)(1) of the Department's 
regulations, the Department calculates an assessment rate for each 
importer of the subject merchandise. The Department intends to issue 
appropriate assessment instructions directly to CBP 15 days

[[Page 31244]]

after the date of publication of these final results of review.
    The Department clarified its ``automatic assessment'' regulation on 
May 6, 2003 (68 FR 23954). This clarification will apply to entries of 
subject merchandise during the period of review produced by the company 
included in these final results of review for which the reviewed 
company did not know their merchandise was destined for the United 
States. In such instances, we will instruct CBP to liquidate unreviewed 
entries at the all-others rate from the investigation if there is no 
rate for the intermediate company involved in the transaction. For a 
full discussion of this clarification, see Antidumping and 
Countervailing Duty Proceedings: Assessment of Antidumping Duties, 68 
FR 23954 (May 6, 2003).

Cash Deposit Requirements

    The following deposit requirements will be effective upon 
publication of the final results of this administrative review for all 
shipments of subject merchandise entered, or withdrawn from warehouse, 
for consumption on or after the publication date of these final 
results, as provided by section 751(a)(2)(C) of the Act: (1) For the 
company covered by this review, the cash deposit rate will be the rate 
listed above; (2) for merchandise exported by producers or exporters 
not covered in this review but covered in a previous segment of this 
proceeding, the cash deposit rate will continue to be the company-
specific rate published in the most recent final results in which that 
producer or exporter participated; (3) if the exporter is not a firm 
covered in this review or in any previous segment of this proceeding, 
but the producer is, the cash deposit rate will be that established for 
the producer of the merchandise in these final results of review or in 
the most recent final results in which that producer participated; and, 
(4) if neither the exporter nor the producer is a firm covered in this 
review or in any previous segment of this proceeding, the cash deposit 
rate will be 7.00 percent, the all-others rate established in the less 
than fair value investigation. See Notice of Amended Final 
Determination and Antidumping Duty Order: Certain Welded Stainless 
Steel Pipe From the Republic of Korea, 60 FR 10064 (February 23, 1995).

Notification to Importers

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f) of the Department's regulations 
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 in 
the subsequent assessment of double antidumping duties.

Notification Regarding Administrative Protective Orders

    This notice is the only reminder to parties subject to the 
administrative protective order (APO) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under the APO in accordance with 19 CFR 351.305(a)(3) of the 
Department's regulations. Timely written notification of the 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.
    We are issuing and publishing these final results and this notice 
in accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: June 22, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.

Appendix I--Issues in Decision Memorandum

    Comment 1: Whether to Apply an Alternative Cost-Averaging 
Methodology
    a. Legal Framework and Case Precedent
    b. Significance of Cost Changes
    c. Linkage Between Costs and Sales Prices
    d. The Elimination of the Window Period for Price-to-Price 
Comparisons
    e. The Cost Recovery Test
    Comment 2: Application of the Major Input Rule
    Comment 3: The Treatment of Gains Associated With Foreign 
Currency Swaps
    Comment 4: The Treatment of Interest Income Earned on Retirement 
and Severance Deposits
    Comment 5: Whether the Department Should Refrain From Zeroing 
Negative Margins
    Comment 6: Calculation Issues

[FR Doc. E9-15492 Filed 6-29-09; 8:45 am]
BILLING CODE 3510-DS-P