[Federal Register: February 11, 2005 (Volume 70, Number 28)]
[Notices]
[Page 7243-7245]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11fe05-37]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-351-826]
Notice of Final Results of Antidumping Duty Administrative
Review: Small Diameter Circular Seamless Carbon and Alloy Steel
Standard, Line and Pressure Pipe From Brazil
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: February 11, 2005.
FOR FURTHER INFORMATION CONTACT: Helen Kramer or Patrick Edwards at
(202) 482-0405 or (202) 482-8029, respectively; AD/CVD Operations,
Office 7, Import Administration, International Trade Administration,
U.S. Department of Commerce, 14th Street & Constitution Avenue, NW.,
Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
On September 7, 2004, the Department of Commerce (``the
Department'') published in the Federal Register its preliminary results
in this administrative review. See Notice of Preliminary Results of
Antidumping Duty Administrative Review, 69 FR 54125 (September 7, 2004)
(``Preliminary Results''). We invited parties to comment on the
Preliminary Results. On October 7, 2004, we received case briefs from
the sole respondent, V&M do Brasil, S.A. (``VMB''), and the petitioner,
United States Steel Corporation (``petitioner''). Both parties
submitted rebuttal briefs on October 14, 2004. No public hearing was
held. Pursuant to section 751(a)(3)(A) of the Tariff Act of 1930, as
amended (``the Act''), the Department extended the time limit for the
final results by 30 days, from January 5, 2005, to February 4, 2005.
See Notice of Extension of Time Limit for the Final Results of
Antidumping Duty Administrative Review: Small Diameter Circular
Seamless Carbon and Alloy Steel Standard, Line and Pressure Pipe from
Brazil, 69 FR 75916 (December 20, 2004).
Scope of the Order
For purposes of this review, the products covered by the order are
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 this 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 this 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 thickness are commonly referred to as tubes.
The seamless pipes subject to this antidumping duty order are
currently classifiable under subheadings 7304.10.10.20, 7304.10.50.20,
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
this 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 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 pipelines. Seamless line pipes are
produced to the API 5L specification.
Seamless pipes are commonly produced and certified to meet ASTM A-
106, ASTM A-53 and API 5L specifications. Such triple certification of
pipes is common because all pipes meeting the stringent ASTM 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
[[Page 7244]]
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 this 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 this order. Therefore, seamless pipes
meeting the physical description above, but not produced to the ASTM A-
335, ASTM A-106, ASTM 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 this order.
Specifically excluded from this order are boiler tubing and
mechanical tubing, if such products are not produced to ASTM A-335,
ASTM A-106, ASTM 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 this 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 this scope when used in
standard, line or pressure applications. Finally, also excluded from
this 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 this order is
dispositive.
Analysis of Comments Received
The issues raised in the case briefs by parties to this
administrative review are addressed in the Issues and Decision
Memorandum to Joseph A. Spetrini, Acting Assistant Secretary for Import
Administration, from Barbara E. Tillman, Acting Deputy Assistant
Secretary (``Decision Memorandum''), 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
Central Records Unit in Room B-099 of the main Commerce building, and
can also be accessed directly on the Web at http://www.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 our analysis of comments received, we have made
adjustments to the product model matching and weighting criteria, the
short-term interest rate, credit expense, inventory carrying costs,
indirect selling expenses, total cost of manufacturing, general and
administrative (``GA'') expense, interest revenue, packing, and inland
freight expense used in calculating the final dumping margin in this
proceeding. The adjustments are discussed in detail in the Decision
Memorandum.
Final Results of Review
As a result of our review, we determine that V&M do Brasil is the
successor to Mannesmann, S.A., and that the following weighted-average
margin exists for the period of August 1, 2002, through July 31, 2003:
------------------------------------------------------------------------
Weighted-
average
Producer margin
(percentage)
------------------------------------------------------------------------
V&M do Brasil........................................... 12.67
------------------------------------------------------------------------
Assessment
The Department will determine, and U.S. Customs and Border
Protection (``CBP``) shall assess, antidumping duties on all
appropriate entries, pursuant to 19 CFR 351.212(b). The Department
calculated importer-specific duty assessment rates on the basis of the
ratio of the total amount of antidumping duties calculated for the
examined sales to the total entered value of the examined sales for
that importer. Where the assessment rate is above de minimis, we will
instruct CBP to assess duties on all entries of subject merchandise
produced by VMB. The Department will issue appropriate assessment
instructions directly to CBP within 15 days of publication of these
final results of review.
Cash Deposits
Furthermore, the following deposit requirements will be effective
upon publication of the final results of this administrative review for
all shipments of seamless carbon and certain alloy steel standard, line
and pressure pipe from Brazil entered, or withdrawn from warehouse, for
consumption on or after the publication date of these final results, as
provided by section 751(a) 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 the investigation, the cash deposit rate will
continue to be the company-specific rate from the final determination;
(3) if the exporter is not a firm covered in this review or the
investigation, 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 final determination; and (4) if neither the
exporter nor the producer is a firm covered in this review or the
investigation, the cash deposit rate will be 124.94 percent, the ``All
Others'' rate established in the less-than-fair-value investigation.
These deposit requirements shall remain in effect until publication of
the final results of the next administrative review.
This notice also serves as a final reminder to importers of their
responsibility under 19 CFR 351.402 (f) 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.
This notice also is 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 written
notification of the 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.
We are issuing and publishing these results and notice in
accordance with sections 751(a)(1) and 777(i)(1) of the Act.
Dated: February 4, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
Appendix--Issues in Decision Memorandum
Comment 1: Product Matching to Similar Merchandise
Comment 2: CEP Offset
Comment 3: Interest Rate
Comment 4: Credit Expenses
[[Page 7245]]
Comment 5: Inventory Carrying Costs
Comment 6: Reversal of Bad Debt Expense
Comment 7: Adjustment to Cost of Manufacturing
Comment 8: GA Expense Ratio
Comment 9: Clerical Errors
a. Home Market Interest Revenue
b. U.S. Packing Expense
c. Home Market Inland Insurance
[FR Doc. E5-584 Filed 2-10-05; 8:45 am]