[Federal Register Volume 75, Number 202 (Wednesday, October 20, 2010)]
[Notices]
[Pages 64696-64699]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-26424]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-549-502]


Circular Welded Carbon Steel Pipes and Tubes From Thailand: Final 
Results of Antidumping Duty Administrative Review

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

SUMMARY: On April 13, 2010, the Department of Commerce (the Department) 
published the preliminary results of administrative review of the 
antidumping duty order on circular

[[Page 64697]]

welded carbon steel pipes and tubes (pipes and tubes) from Thailand. 
The review was requested by Allied Tube and Conduit Corporation (Allied 
Tube), by Wheatland Tube Company (Wheatland) (collectively, domestic 
interested parties or petitioners), and by Saha Thai Steel Pipe 
(Public) Company Ltd. (Saha Thai) (respondent). This review covers one 
producer/exporter of the subject merchandise, Saha Thai. The period of 
review (POR) is March 1, 2008 through February 28, 2009. Based on the 
results of verification and 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 margins, see the ``Final Results of Review'' section 
below.

DATES: Effective Date: October 20, 2010.

FOR FURTHER INFORMATION CONTACT: Myrna Lobo or Jacqueline Arrowsmith, 
AD/CVD Operations, Office 6, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street & Constitution 
Avenue, NW., Washington, DC 20230; telephone: (202) 482-2371 or (202) 
482-5255, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On April 13, 2010, the Department published in the Federal Register 
the preliminary results of administrative review of the antidumping 
duty order on pipes and tubes from Thailand. See Circular Welded Carbon 
Steel Pipes and Tubes from Thailand: Preliminary Results and 
Rescission, in Part, of Antidumping Duty Administrative Review, 75 FR 
18788 (April 13, 2010) (Preliminary Results).
    In the Preliminary Results, the Department stated that its decision 
to apply the quarterly cost methodology and to perform quarterly price-
to-price comparisons raised a novel issue with respect to the level of 
trade (LOT) analysis of the pattern of price differences and any 
possible LOT adjustment warranted by that analysis. The Department, 
therefore, invited parties to comment on whether the application of the 
quarterly cost methodology necessarily requires an evaluation on a 
quarterly basis of the pattern of price differences and how any such 
differences should be analyzed. Parties were also invited to comment on 
whether, if a pattern of price differences is found to exist, any LOT 
adjustment should be done on a yearly basis or on a quarterly basis. On 
April 23, 2010, the Department received comments from Saha Thai.
    On May 4, 2010 we revised the due dates for comments on the 
Preliminary Results, due to the anticipated timing of verification, and 
informed parties of the same. The Department conducted a verification 
of Saha Thai's questionnaire responses in Bangkok, Thailand, from July 
12, 2010 through July 23, 2010. See ``Verification'' section below.
    On August 20, 2010 we informed parties of the deadlines to comment 
on the Preliminary Results and verification reports and requested Saha 
Thai to submit revised sales databases in view of the minor corrections 
presented at verification. On August 23, 2010 Saha Thai submitted its 
revised sales databases. On August 27, 2010 we received a timely case 
brief from Saha Thai, and on September 1, 2010, we received a timely 
rebuttal brief from Allied Tube on behalf of domestic interested 
parties. The Department did not receive a request for a hearing.
    On May 21, 2010, the Department extended the deadline for issuing 
the final results until no later than October 12, 2010. See Circular 
Welded Carbon Steel Pipes and Tubes from Thailand: Extension of Time 
Limit for Final Results of Antidumping Duty Administrative Review, 75 
FR 28557 (May 21, 2010). On October 12, 2010, the Department tolled the 
deadline for the final results by one day, to October 13, 2010, due to 
the occurrence of a fire and the closure of the main Commerce building 
on Friday, October 8, 2010.

Period of Review

    The period of review (POR) is March 1, 2008 through February 28, 
2009.

Scope of the Order

    The products covered by this antidumping order are certain welded 
carbon steel pipes and tubes from Thailand. The subject merchandise has 
an outside diameter of 0.375 inches or more, but not exceeding 16 
inches. These products, which are commonly referred to in the industry 
as ``standard pipe'' or ``structural tubing'' are hereinafter 
designated as ``pipes and tubes.'' The merchandise is classifiable 
under the Harmonized Tariff Schedule of the United States (HTSUS) item 
numbers 7306.30.1000, 7306.30.5025, 7306.30.5032, 7306.30.5040, 
7306.30.5055, 7306.30.5085 and 7306.30.5090. Although the HTSUS 
subheadings are provided for the convenience and purposes of CBP, our 
written description of the scope is dispositive.

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(``the Act''), from July 12 through July 23, 2010, the Department 
verified the cost and sales information submitted by Saha Thai in its 
questionnaire responses provided during the course of this review. We 
used standard verification procedures including examination of relevant 
accounting and production records, and original source documents 
provided by the respondent. See Memorandum from Heidi Schriefer, Senior 
Accountant, to The File, ``Verification of the Cost Response of Saha 
Thai Steel Pipe (Public) Company, Limited, in the Antidumping Duty 
Administrative Review of Circular Welded Carbon Steel Pipes and Tubes 
from Thailand,'' dated August 17, 2010 (``Cost Verification Report''); 
see also Memorandum from Jacqueline Arrowsmith and Myrna Lobo, 
International Trade Compliance Analysts, to The File, ``Verification of 
the Sales Response of Saha Thai Steel Pipe (Public) Co., Ltd. in the 
Antidumping Review of Circular Welded Carbon Steel Pipes and Tubes from 
Thailand,'' dated August 18, 2010 (``Sales Verification Report''). The 
public versions of both verification reports are on file in the Central 
Records Unit (CRU), Room 7046 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 Susan 
H. Kuhbach, Acting Deputy Assistant Secretary for Antidumping and 
Countervailing Duty Operations, to Ronald K. Lorentzen, Assistant 
Secretary for Import Administration, ``Issues and Decision Memorandum 
for the Final Results of the Administrative Review of the Antidumping 
Duty Order on Circular Welded Carbon Steel Pipes and Tubes from 
Thailand'' (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 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 and our analysis of comments 
received, we have made adjustments to our margin calculations. At the 
preliminary results, we made an adjustment under section 773(f)(2) of 
the Act, the ``transactions disregarded rule,'' to Saha Thai's 
purchases of coils from an

[[Page 64698]]

affiliated party. We have now determined that record evidence shows 
that these transactions were made at arm's length prices, and thus we 
are not making any adjustment under section 773(f)(2) of the Act for 
the final results. In addition, we have revised the general and 
administrative and financial expense rates by no longer adjusting the 
cost of goods sold denominator to reflect an adjustment for the 
transactions disregarded rule. Further, we have revised the financial 
expense rate calculation from the preliminary results to exclude 
interest income generated from long-term assets. We have revised the 
calculation of the total cost of manufacturing from the preliminary 
results to exclude the ``other materials'' (``OTHMAT'') field. We have 
determined that this field serves only as a subtotal of other material 
costs; therefore, the inclusion of both the individual other material 
cost fields and the ``OTHMAT'' field double counts these costs. We have 
also revised the calculation of the cost of production to exclude the 
``DUTY'' field because these costs were already included in the direct 
materials costs field. We have also made adjustments to hot-rolled coil 
costs, conversion costs, and other material costs based on our 
verification findings.
    In addition, based on the results of verification and the minor 
corrections reported by Saha Thai at verification, there are changes to 
the sales databases including changes to U.S. sales ship dates and 
certain U.S. and home market movement and selling expenses, and the 
correction of one reseller's home market prices. These adjustments are 
discussed in detail in the Decision Memorandum; and/or Memorandum to 
File from Myrna Lobo, ``Analysis of Saha Thai Steel Pipe (Public) 
Company, Ltd., for the Final Results of the Antidumping Duty 
Administrative Review of Circular Welded Carbon Steel Pipes and Tubes 
from Thailand for the period 03/01/2008 through 02/28/2009,'' dated 
concurrently with this notice (``Final Results Analysis Memorandum''); 
and/or Memorandum to Neal M. Halper, Director, Office of Accounting, 
from Heidi K. Schriefer, Senior Accountant, ``Cost of Production and 
Constructed Value Calculation Adjustments for the Final Results--Saha 
Thai Steel Pipe (Public) Company, Ltd.,'' also dated concurrently with 
this notice, all of which are on file in the CRU.

Level of Trade (LOT)

    In the Preliminary Results we determined that Saha Thai had two 
distinct levels of trade (LOT 1 and LOT 2) in the home market, and a 
single LOT in the U.S. market which matched LOT 1 in the home market. 
For U.S. sales for which there is not a match in the home market at LOT 
1, that are matched with LOT 2 sales, we must consider whether an LOT 
adjustment is warranted when the difference in LOT is demonstrated to 
affect price comparability, based on a pattern of consistent price 
differences. However, our decision to apply the quarterly cost 
methodology raised a novel issue with respect to the LOT analysis of 
pattern of price differences and any possible LOT adjustment based on 
that analysis. We therefore invited parties to comment on this issue 
and we received comments from Saha Thai recommending that the 
Department calculate a POR-wide LOT adjustment even when a quarterly 
methodology had been used to calculate costs and make price to price 
comparisons. However, after incorporating all the changes to the cost 
and sales information necessitated by verification, we find that all of 
Saha Thai's U.S. market sales are matched to sales in the home market 
at the same level of trade. Therefore, there is no basis for conducting 
a level of trade analysis and an LOT adjustment is unwarranted.

Final Results of Review

    As a result of our review, we determine that the following 
weighted-average margin exists for the period of March 1, 2008 through 
February 28, 2009:

------------------------------------------------------------------------
                                                 Weighted-average margin
            Manufacturer/ exporter                      (percent)
------------------------------------------------------------------------
Saha Thai Steel Pipe (Public) Company, Ltd....                     2.13
------------------------------------------------------------------------

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 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 15.67 percent, the all-others rate established in the less 
than fair value investigation. See Circular Welded Carbon Steel Pipes 
and Tubes from Thailand: Final Determination of Sales at Less Than Fair 
Value, 51 FR 3384 (January 27, 1986).

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.

[[Page 64699]]

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: October 13, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.

Appendix I--Issues in Decision Memorandum Circular Welded Carbon Steel 
Pipes and Tubes From Thailand Final Results of Antidumping Duty 
Administrative Review for the Period of Review: 3/1/2008--2/28/2009

Comment 1: Analysis of Transactions With an Affiliated Supplier
Comment 2: Treatment of Unpaid Exempted Duties
Comment 3: Use of Single Average Coil Costs
Comment 4: Use of Lower of Cost or Market (LCM) Write-Down for Raw 
Materials
Comment 5: Treatment of LCM Write-Downs When Using the Alternative 
Cost Methodology
Comment 6: Annualizing Costs Over the Entire Cost Reporting Period
Comment 7: Total Cost Reconciliation
Comment 8: Treatment of Paid Import Duties on Raw Materials
Comment 9: Treatment of Other Material Costs
Comment 10: Level of Trade Adjustment
Comment 11: Use of the Zeroing Methodology

[FR Doc. 2010-26424 Filed 10-19-10; 8:45 am]
BILLING CODE 3510-DS-P