[Federal Register Volume 76, Number 119 (Tuesday, June 21, 2011)]
[Notices]
[Pages 36089-36091]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-15453]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-809]


Circular Welded Non-Alloy Steel Pipe From the Republic of Korea: 
Final Results of the Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On December 14, 2010, the Department of Commerce (the 
``Department'') published the preliminary results of the administrative 
review of the antidumping duty order on circular welded non-alloy steel 
pipe (``CWP'') from the Republic of Korea (``Korea''), covering the 
period November 1, 2008, through October 31, 2009. This review covers 
six producers/exporters of the subject merchandise to the United 
States: SeAH Steel Corporation (``SeAH''); Husteel Co., Ltd. 
(``Husteel''); Nexteel Co. Ltd. (``Nexteel''); Hyundai HYSCO; Kumkang 
Industrial Co., Ltd.; and A-JU Besteel Co., Ltd. SeAH, Husteel, and 
Nexteel were the three mandatory respondents. We gave the interested 
parties an opportunity to comment on the preliminary results. Based on 
our analysis of the comments received, we have made changes to the 
margin calculations. The final weighted-average dumping margins for the 
reviewed firms are listed below in the section entitled ``Final Results 
of Review.''

DATES: Effective Date: June 21, 2011.

FOR FURTHER INFORMATION CONTACT: Joshua Morris or Matthew Jordan, 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-
1779 or (202) 482-1540, respectively.

SUPPLEMENTARY INFORMATION:

Background

    Following publication of Circular Welded Non-Alloy Steel Pipe From 
the Republic of Korea: Preliminary Results of the Antidumping Duty 
Administrative

[[Page 36090]]

Review, 75 FR 77838 (December 14, 2010) (``Preliminary Results'') in 
the Federal Register, we invited parties to comment on the Preliminary 
Results. On January 10, 2011, we received a request from United States 
Steel Corporation (``U.S. Steel'') to extend the deadline for 
submitting case briefs. We agreed to extend the deadline to January 31, 
2011. We received case briefs from SeAH; Husteel; Nexteel; and U.S. 
Steel. Nexteel's initial case brief contained new factual information, 
and was thus not accepted. Nexteel removed the new factual information 
and resubmitted its case brief on February 16, 2011. We received 
rebuttal briefs from Nexteel; Allied Tube and Conduit and TMK IPSCO 
(``Allied Tube Group''); SeAH; and U.S. Steel.
    On March 1, 2011, the Department sought further information from 
all interested parties regarding grade classification, particularly 
with respect to ASTM A-53 Grade A and ASTM A-53 Grade B pipe. We 
received information from SeAH; Nexteel; Nexteel's U.S. customer; U.S. 
Steel; Allied Tube Group; and Hyundai HYSCO. The Department allowed for 
further briefing regarding this grade issue, and we received 
submissions from SeAH; Nexteel; U.S. Steel; Allied Tube Group; and 
Hyundai HYSCO. None of the parties requested a hearing.
    On March 22, 2011, the Department published in the Federal Register 
an extension of the time limit for the completion of the final results 
of this review until no later than June 13, 2011, in accordance with 
section 751(a)(3)(A) of the Tariff Act of 1930, as amended (``the 
Act''), and 19 CFR 351.213(h)(2). See Circular Welded Non-Alloy Steel 
Pipe From the Republic of Korea: Extension of the Final Results of the 
Antidumping Duty Administrative Review, 76 FR 15941 (March 22, 2011).

Scope of the Order

    The merchandise subject to this review is circular welded non-alloy 
steel pipe and tube, of circular cross-section, not more than 406.4mm 
(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, air, and 
other liquids and gases in plumbing and heating systems, air-
conditioning units, automatic sprinkler systems, and other related 
uses. 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 as support members for reconstruction or load-
bearing purposes in the construction, shipbuilding, trucking, farm 
equipment, and other related industries. Unfinished conduit pipe is 
also included in this review.
    All carbon-steel pipes and tubes within the physical description 
outlined above are included within the scope of this review except line 
pipe, oil-country tubular goods, boiler tubing, mechanical tubing, pipe 
and tube hollows for redraws, finished scaffolding, and finished 
conduit. In accordance with the Department's Final Negative 
Determination of Scope Inquiry on Certain Circular Welded Non-Alloy 
Steel Pipe and Tube From Brazil, the Republic of Korea, Mexico, and 
Venezuela, 61 FR 11608 (March 21, 1996), pipe certified to the API 5L 
line-pipe specification and pipe certified to both the API 5L line-pipe 
specifications and the less-stringent ASTM A-53 standard-pipe 
specifications, which falls within the physical parameters as outlined 
above, and entered as line pipe of a kind used for oil and gas 
pipelines is outside of the scope of the antidumping duty order.
    Imports of these products are currently classifiable under the 
following Harmonized Tariff Schedule of the United States (``HTSUS'') 
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 HTSUS subheadings are provided for convenience and customs 
purposes, our written description of the scope of this proceeding is 
dispositive.

Analysis of Comments Received

    All issues raised in the case briefs are addressed in the ``Issues 
and Decision Memorandum for the 2008-2009 Administrative Review of 
Circular Welded Non-Alloy Steel Pipe from the Republic of Korea'' 
(``Issues and Decision Memorandum''), which is dated concurrently with 
and hereby adopted by this notice. A list of the issues which parties 
raised and to which we responded in the Issues and Decision Memorandum 
is attached to this notice as an Appendix. The Issues and Decision 
Memorandum is a public document which is on file in the Central Records 
Unit in room 7046 in the main Department building, and is accessible on 
the web at http://www.ia.ita.doc.gov/frn. The paper copy and electronic 
version of the memorandum are identical in content.

Changes Since the Preliminary Results

    Based on our analysis of the comments received, we made the 
following changes in calculating dumping margins: (1) Eliminated the 
inadvertent double counting of the major input adjustment for SeAH; (2) 
changed the universe of sales to be used for margin calculation 
purposes for SeAH and Husteel to all U.S. sales entered for consumption 
during the period of review; (3) adjusted the costs for ASTM A-53 Grade 
B control numbers (``CONNUMs''); specifically, for ASTM A-53 Grade B 
CONNUMs for which there is an otherwise identical ASTM A-53 Grade A 
CONNUM, we have weight averaged together the costs of the ASTM A-53 
Grade A and Grade B CONNUMs (a) for SeAH, all costs by quarter, using 
production quantity for weighting purposes, and (b) for Nexteel, the 
variable costs and total costs (where available) using sales quantity 
for weighting; however, for ASTM A-53 Grade B CONNUMs for which there 
is no identical ASTM A-53 Grade A CONNUM, we continue to use the cost 
as reported for ASTM A-53 Grade B, including where other specifications 
were reported in the same CONNUM as ASTM A-53 Grade B; 4) for Nexteel, 
changed the CONNUM of ASTM A-53 Grade B sales to reflect the change in 
classification of ASTM A-53 Grade B from ``pressure'' to ``ordinary'' 
for product comparison purposes.

Cost of Production

    Consistent with the Preliminary Results, we disregarded home market 
sales by SeAH and Husteel that failed the cost-of-production test.

Final Results of the Review

    We determine that a weighted-average dumping margin exists for the 
three mandatory respondents, SeAH, Husteel, and Nexteel, for the period 
November 1, 2008, through October 31, 2009. Respondents other than 
mandatory respondents received the weighted-average of the margins 
calculated for SeAH, Husteel, and Nexteel.

------------------------------------------------------------------------
                                                             Weighted-
                  Manufacturer/exporter                   average margin
                                                              percent
------------------------------------------------------------------------
SeAH Steel Corporation..................................            4.99
Husteel Co., Ltd........................................            2.25
Nexteel Co., Ltd........................................           12.90
Hyundai HYSCO...........................................            8.17
Kumkang Industrial Co., Ltd.............................            8.17
A-JU Besteel Co., Ltd...................................            8.17
------------------------------------------------------------------------

Public Comment

    The Department will disclose calculations performed within five 
days

[[Page 36091]]

of the date of publication of this notice to the parties to this 
proceeding in accordance with 19 CFR 351.224(b).

Assessment Rates

    The Department shall determine, and U.S. Customs and Border 
Protection (``CBP'') shall assess, antidumping duties on all 
appropriate entries, in accordance with 19 CFR 351.212(b)(1). The 
Department will issue appropriate appraisement instructions for the 
companies subject to this review directly to CBP 15 days after the date 
of publication of these final results of review.
    For SeAH and Husteel, we will calculate importer-specific ad 
valorem duty assessment rates based on the ratio of the total amount of 
antidumping duties calculated for the examined sales to the total 
entered value of the sales, as reported by SeAH and Husteel. See 19 CFR 
351.212(b)(1).
    Nexteel reported the importer of record for certain of its U.S. 
sales. Pursuant to 19 CFR 351.212(b)(1), for all sales where Nexteel 
reported the importer of record, Nexteel submitted the reported entered 
value of the U.S. sales and the Department has calculated importer-
specific assessment rates based on the ratio of the total amount of 
antidumping duties calculated for the examined sales to the total 
entered value of those sales.
    For certain U.S. sales, Nexteel did not report the importer or the 
entered value. For purposes of calculating importer-specific assessment 
rates, calculated per-unit duty assessment rates for the merchandise in 
question by aggregating the dumping margins calculated for all U.S. 
sales to each importer and dividing this amount by the total quantity 
of those sales.
    To determine whether the duty assessment rates were de minimis, in 
accordance with the requirement set forth in 19 CFR 351.106(c)(2), the 
Department calculated importer-specific ad valorem ratios based on the 
actual or estimated entered value. Where entered values were not 
reported (for Nexteel), we treated Nexteel's U.S. customer as the 
importer of record and we calculated entered value as U.S. price net of 
international movement expenses.
    For the companies that were not selected for individual review, we 
calculated an assessment rate based on the weighted-average of the cash 
deposit rates calculated for companies selected for individual review, 
where those rates were not de minimis or based on adverse facts 
available, in accordance with Department practice.
    Pursuant to 19 CFR 351.106(c)(2), we will instruct CBP to liquidate 
without regard to antidumping duties any entries for which the 
assessment rate is de minimis (i.e., less than 0.50 percent).
    The Department clarified its ``automatic assessment'' regulation on 
May 6, 2003. See Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) 
(``Assessment Policy Notice''). This clarification will apply to 
entries of subject merchandise during the period of review produced by 
companies included in these final results of review for which the 
reviewed companies did not know that the merchandise they sold to the 
intermediary (e.g., a reseller, trading company, or exporter) was 
destined for the United States. In such instances, we will instruct CBP 
to liquidate unreviewed entries at the all-others rate if there is no 
rate for the intermediary involved in the transaction. See Assessment 
Policy Notice for a full discussion of this clarification.

Cash Deposit Requirements

    The following deposit rates will be effective upon publication of 
the final results of this administrative review for all shipments of 
CWP from Korea entered, or withdrawn from warehouse, for consumption on 
or after the publication date, as provided by section 751(a)(2)(C) of 
the Act: (1) The cash deposit rates for the companies listed above will 
be the rates established in the final results of this review, except if 
the rate is less than 0.5 percent and, therefore, de minimis, the cash 
deposit will be zero; (2) for previously reviewed or investigated 
companies not listed above, the cash deposit rate will continue to be 
the company-specific rate published for the most recent final results 
in which that manufacturer or exporter participated; (3) if the 
exporter is not a firm covered in this review, a prior review, or the 
original less-than-fair-value (``LTFV'') investigation, but the 
manufacturer is, the cash deposit rate will be the rate established for 
the most recent final results for the manufacturer of the merchandise; 
and (4) if neither the exporter nor the manufacturer is a firm covered 
in this or any previous review conducted by the Department, the cash 
deposit rate will be 4.80 percent, the ``all others'' rate established 
in the LTFV investigation. See Notice of Antidumping Orders: Certain 
Circular Welded Non-Alloy Steel Pipe from Brazil, the Republic of 
Korea, Mexico, and Venezuela, 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). These deposit 
requirements shall remain in effect until further notice.

Notification to Importers

    This notice serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) 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 the subsequent 
assessment of double antidumping duties.

Notification to Interested Parties

    This notice serves as the only reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return/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.
    These final results of review are issued and published in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

     Dated: June 13, 2011.
Paul Piquado,
Acting Deputy Assistant Secretary for Import Administration.

Appendix--Issues in Decision Memorandum

General Issues
    Comment 1 Zeroing-Out Negative Dumping Margins
    Comment 2 Application of the Cost Recovery Test
    Comment 3 Time for Parties To Comment on Methodology
    Comment 4 Grade Classification
    Comment 5 Universe of Home Market and U.S. Sales for Margin 
Analysis
SEAH Issues
    Comment 6 Double Counting the Major Input Adjustment
    Comment 7 Letters of Credit Charges
NEXTEEL Issues
    Comment 8 Programming Revisions

[FR Doc. 2011-15453 Filed 6-20-11; 8:45 am]
BILLING CODE 3510-DS-P