[Federal Register Volume 77, Number 150 (Friday, August 3, 2012)]
[Notices]
[Pages 46385-46386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-19069]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-428-820]


Certain Small Diameter Seamless Carbon and Alloy Standard, Line, 
and Pressure Pipe From Germany: Final Results of the Expedited Third 
Sunset Review of the Antidumping Duty Order

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

SUMMARY: On April 2, 2012, the Department of Commerce (the Department) 
initiated the third sunset review of the antidumping duty order on 
certain small diameter seamless carbon and alloy steel standard, line, 
and pressure pipe (seamless pipe) from Germany pursuant to section 
751(c) of the Tariff Act of 1930, as amended (the Act). See Initiation 
of Five-Year (``Sunset'') Review, 77 FR 19643 (April 2, 2012) (Sunset 
Initiation). On the basis of a notice of intent to participate and an 
adequate substantive response filed on behalf of a domestic interested 
party, and no response from a respondent interested party, the 
Department conducted an expedited (120-day) sunset review. As a result 
of this sunset review, the Department finds that revocation of the 
antidumping duty order would likely lead to the continuation or 
recurrence of dumping. The magnitude of dumping likely to prevail if 
the order were revoked is identified in the ``Final Results of Review'' 
section of this notice.

DATES: Effective Date: August 3, 2012.

FOR FURTHER INFORMATION CONTACT: Ericka Ukrow or Angelica Mendoza, AD/
CVD Operations, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-0405 
or (202) 482-3019, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On April 2, 2012, the Department initiated the sunset review of the 
antidumping duty order on seamless pipe from Germany pursuant to 
section 751(c) of the Act. See Sunset Initiation. The Department 
received a notice of intent to participate from one domestic interested 
party, United States Steel Corporation (U.S. Steel), within the 
deadline specified in 19 CFR 351.218(d)(1)(i). The domestic interested 
party claimed interested party status under section 771(9)(C) of the 
Act as a U.S. producer of a domestic like product. We received a 
complete substantive response from the domestic interested party within 
the 30-day deadline specified in 19 CFR 351.218(d)(3)(i) on May 2, 
2012. No respondent interested parties submitted responses. As a result 
of the timely filed, substantive response from the domestic interested 
party the Department conducted an expedited sunset review of the order, 
pursuant to section 751(c)(3)(B) of the Act and 19 CFR 
351.218(e)(1)(ii)(C)(2).

Scope of the Order

    The scope of the order includes small diameter seamless carbon and 
alloy standard, line and pressure pipes (seamless pipes) produced to 
the ASTM A-335, ASTM A-106, ASTM A-53 and API 5L specifications and 
meeting the physical parameters described below, regardless of 
application. The scope of the order also includes all products used in 
standard, line, or pressure pipe applications and meeting the physical 
parameters below, regardless of specification.
    For purposes of the order, seamless pipes are seamless carbon and 
alloy (other than stainless) steel pipes, of circular cross-section, 
not more than 114.3 mm (4.5 inches) 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. These pipes are commonly known as standard 
pipe, line pipe or pressure pipe, depending upon the application. They 
may also be used in structural applications. Pipes produced in non-
standard wall thicknesses are commonly referred to as tubes.
    The seamless pipes subject to the order are currently classifiable 
under subheadings 7304.19.10.20, 7304.19.50.20, 7304.31.60.50, 
7304.39.00.16, 7304.39.00.20, 7304.39.00.24, 7304.39.00.28, 
7304.39.00.32, 7304.51.50.05, 7304.51.50.60, 7304.59.60.00, 
7304.59.80.10, 7304.59.80.15, 7304.59.80.20, and 7304.59.80.25 of the 
Harmonized Tariff Schedule of the United States (HTSUS).
    The following information further defines the scope of the order, 
which covers pipes meeting the physical parameters described above:
    Specifications, Characteristics and Uses: 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 American 
Society for Testing and Materials (ASTM) standard A-106 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 standard A-335 must be used if temperatures and stress 
levels exceed those allowed for A-106 and the ASME codes. 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.
    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 pipes are commonly produced and certified to meet ASTM

[[Page 46386]]

A-106, ASTM A-53 and API 5L specifications. Such triple certification 
of pipes is common because all pipes meeting the stringent A-106 
specification necessarily meet the API 5L and ASTM A-53 specifications. 
Pipes meeting the API 5L specification necessarily meet the ASTM A-53 
specification. However, pipes meeting the A-53 or API 5L specifications 
do not necessarily meet the A-106 specification. To avoid maintaining 
separate production runs and separate inventories, manufacturers triple 
certify the pipes. 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 
certified pipes is in pressure piping systems by refineries, 
petrochemical plants and chemical plants. Other applications are in 
power generation plants (electrical-fossil fuel or nuclear), and in 
some oil field uses (on shore and off shore) such as for separator 
lines, gathering lines and metering runs. A minor application of this 
product is for use as oil and gas distribution lines for commercial 
applications. These applications constitute the majority of the market 
for the subject seamless pipes. However, A-106 pipes may be used in 
some boiler applications.
    The scope of the order includes all seamless pipe meeting the 
physical parameters described above and produced to one of the 
specifications listed above, regardless of application, and 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 the order. Therefore, seamless pipes 
meeting the physical description above, but not produced to the A-335, 
A-106, A-53, or API 5L standards shall be covered if used in a 
standard, line or pressure application.
    For example, there are certain other ASTM specifications of pipe 
which, because of overlapping characteristics, could potentially be 
used in A-106 applications. These specifications generally include A-
162, A-192, A-210, A-333, and A-524. When such pipes are used in a 
standard, line or pressure pipe application, such products are covered 
by the scope of the order.
    Specifically excluded from the order are boiler tubing and 
mechanical tubing, if such products are not produced to A-335, A-106, 
A-53 or API 5L specifications and are not used in standard, line or 
pressure applications. In addition, finished and unfinished oil country 
tubular goods (OCTG) are excluded from the scope of the order, 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 the scope when used in standard, line or pressure 
applications. Finally, also excluded from the order are redraw hollows 
for cold-drawing when used in the production of cold-drawn pipe or 
tube.
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, our written description of the scope of the order is 
dispositive.

Analysis of Comments Received

    All issues raised in this case are addressed in the ``Issues and 
Decision Memorandum'' from Christian Marsh, Deputy Assistant Secretary 
for Antidumping and Countervailing Duty Operations, to Paul Piquado, 
Assistant Secretary for Import Administration, dated concurrently with 
this notice (Decision Memorandum), which is hereby adopted by this 
notice. The issues discussed in the Decision Memorandum include the 
likelihood of continuation or recurrence of dumping and the magnitude 
of the margin likely to prevail if the order were revoked. Parties can 
find a complete discussion of all issues raised in this sunset review 
and the corresponding recommendations in this public memorandum, which 
is on file electronically via IA ACCESS in the Central Records Unit, 
Room 7046, of the main Department of Commerce building.
    In addition, a complete version of the Decision Memorandum can be 
accessed directly on the Web at http://ia.ita.doc.gov/frn. The paper 
copy and electronic versions of the Decision Memorandum are identical 
in content.

Final Results of Review

    The Department determines that revocation of the antidumping duty 
order on seamless pipe from Germany would likely lead to continuation 
or recurrence of dumping. Further, the Department finds that the 
magnitude of dumping likely to prevail if the order was revoked is 
57.72 percent for Mannesmannrohren Werke AG and for all other German 
producers and exporters of subject merchandise.

Notification

    This notice also serves as the only reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305. Timely 
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 terms of an APO is a violation which is 
subject to sanction.
    The Department is issuing and publishing the results and notice in 
accordance with sections 751(c), 752(c), and 777(i)(1) of the Act.

    Dated: July 26, 2012.
Paul Piquado,
Assistant Secretary for Import Administration.
[FR Doc. 2012-19069 Filed 8-2-12; 8:45 am]
BILLING CODE 3510-DS-P