[Federal Register Volume 75, Number 128 (Tuesday, July 6, 2010)]
[Notices]
[Pages 38781-38783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-16354]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-850]


Certain Large Diameter Carbon and Alloy Seamless Standard, Line, 
and Pressure Pipe From Japan: Rescission of Antidumping Duty 
Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On July 29, 2009, the U.S. Department of Commerce (``the 
Department'') published a notice of initiation of an administrative 
review of the antidumping duty order on certain large diameter carbon 
and alloy seamless standard, line, and pressure pipe from Japan. The 
review covers four manufacturers/exporters: JFE Steel Corporation 
(``JFE Steel''); Nippon Steel Corporation; NKK Tubes; and Sumitomo 
Metal Industries, Ltd. (``SMI''). The period of review (``POR'') is 
June 1, 2008, through May 31, 2009. Following the receipt of a 
certification of no shipments from all four of the potential 
respondents, we notified all interested parties 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.

DATES: Effective Date: Insert date of publication in the Federal 
Register.

FOR FURTHER INFORMATION CONTACT: Mary Kolberg, 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) 482-1785.

SUPPLEMENTARY INFORMATION: 

Background

    On June 1, 2009, 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\1/
2\ inches) from Japan for the period June 1, 2008, through May 31, 
2009. See Antidumping or Countervailing Duty Order, Finding or 
Suspended Investigation; Opportunity To Request Administrative Review, 
74 FR 26202 (June 1, 2009). On June 30, 2009, 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, Nippon Steel Corporation, NKK 
Tubes, and SMI. On July 29, 2009, 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 Deferral of 
Administrative Review, 74 FR 37690 (July 29, 2009). On August 13, 25, 
and 28, 2009, JFE Steel, NKK Tubes, and SMI, respectively, submitted 
letters to the Department, certifying that each company made no 
shipments or entries for consumption in the United States of the 
subject merchandise during the POR. On September, 23, 2009, the 
Department issued its antidumping duty questionnaire to Nippon Steel 
Corporation. On October 2, 2009, 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.

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,

[[Page 38782]]

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 
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 U.S. Customs and Border Protection (``CBP'') to 
require end-use certification until such time as petitioner or other 
interested parties

[[Page 38783]]

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 of the potential 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 CBP, CBP data showed 
subject merchandise manufactured by one of the respondent companies, 
SMI, was entered for consumption into the United States during the POR 
from third countries. On December 31, 2009, the Department placed on 
the record of this review copies of the entry documents in question.
    Additionally, on December 31, 2009, the Department sent a letter to 
SMI requesting that SMI further substantiate its claim of no shipments. 
On January 28, 2010, SMI responded that it had no knowledge of the 
entries in question. In its response, SMI explained in detail how its 
claim of no knowledge is supported by the record evidence. See 
Memorandum to the File, from Mary Kolberg, International Trade 
Compliance Analyst, ``Intent to Rescind the Antidumping Duty 
Administrative Review on Certain Large Diameter Carbon and Alloy 
Seamless Standard, Line, and Pressure Pipe from Japan,'' March 12, 2010 
(``Intent to Rescind Memo''). On the basis of these documents and SMI's 
submission, the Department concluded that there is no evidence on the 
record that, at the time of the sale, SMI had knowledge that any of 
these entries of subject merchandise entered the United States during 
the POR. Specifically, subject merchandise produced by SMI entered the 
United States during the POR under its antidumping case number, but 
without the company's knowledge by way of intermediaries.
    On March 12, 2010, the Department notified interested parties of 
its intent to rescind this administrative review and gave parties until 
March 22, 2010 to provide comments. No comments were received. See 
Intent to Rescind Memo.
    Subsequent to that, in response to the Department's earlier no 
shipments inquiry, CBP notified us on March 31, 2010, of additional POR 
entries of consumption of subject merchandise, shipped from a third 
country that were manufactured by respondent company, JFE Steel. On 
April 14, 2010, the Department placed on the record copies of these 
entry documents and asked JFE Steel to comment on the company's no 
shipment claim in light of the CBP data. On May 13, 2010, JFE Steel 
responded to the Department. In its response, JFE Steel addressed each 
entry in detail, explained how JFE Steel's claim of no knowledge is 
supported by the evidence on record, and reiterated that JFE Steel had 
no knowledge of the entries in question. See Memorandum to the File, 
from Mary Kolberg, International Trade Compliance Analyst, 
``Reiteration of Intent to Rescind the Antidumping Duty Administrative 
Review on Certain Large Diameter Carbon and Alloy Seamless Standard, 
Line, and Pressure Pipe from Japan,'' June 3, 2010 (``Reiteration of 
Intent to Rescind Memo'').
    On the basis of these documents and JFE Steel's submission, the 
Department concluded that there is no evidence on the record that, at 
the time of the sale, JFE Steel had knowledge that those entries were 
destined for the United States, nor is there evidence that JFE Steel 
had knowledge that any of these entries of subject merchandise entered 
the United States during the POR. Specifically, subject merchandise 
produced by JFE Steel entered the United States during the POR under 
its antidumping case number, but without the company's knowledge by way 
of intermediaries.
    The Department reiterated this intent to rescind on June 3, 2010, 
giving parties until June 14, 2010 to provide comments. Again, no 
comments were received. See Reiteration of Intent to Rescind Memo.
    Thus, the Department finds that the respondents' claims of no 
shipments or entries for consumption to be substantiated. 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 intends to instruct CBP 15 days after the 
publication of this notice to liquidate such entries. Antidumping 
duties shall be assessed at rates equal to the cash deposit of 
estimated antidumping duties required at the time of entry, or 
withdrawal from warehouse, for consumption, in accordance with 19 CFR 
351.212(c)(2).
    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: June 29, 2010.
John M. Andersen
Acting Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations.
[FR Doc. 2010-16354 Filed 7-2-10; 8:45 am]
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