[Federal Register: June 10, 2002 (Volume 67, Number 111)]
[Notices]
[Page 39676-39677]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10jn02-35]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-588-702]
Notice of Initiation of Changed Circumstances Antidumping Duty
Administrative Review: Certain Stainless Steel Butt-Weld Pipe and Tube
Fittings From Japan
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of Initiation of Changed Circumstances Antidumping Duty
Administrative Review.
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SUMMARY: In accordance with 19 CFR 351.216 of the Department of
Commerce (the Department) regulations, Benex Corporation (Benex)
requested a changed circumstances administrative review pursuant to
section 751(b) of the Tariff Act of 1930, as amended (the Act).
The Department finds, in response to this request, that it contains
information sufficient to warrant initiating a changed circumstances
review on stainless steel butt-weld pipe and tube fittings (SSPFs) from
Japan.
EFFECTIVE DATE : June 10, 2002.
FOR FURTHER INFORMATION CONTACT: Jack K. Dulberger or Tom Futtner, AD/
CVD Enforcement, Group II, Office 4, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
and Constitution Avenue, N.W., Washington, D.C. 20230; telephone: (202)
482-5505 or (202) 482-3814, respectively.
SUPPLEMENTARY INFORMATION:
Applicable Statute and Regulations
Unless otherwise stated, all citations to the Tariff Act of 1930,
as amended, are references to the provisions as of January 1, 1995, the
effective date of the amendments made to the Act by the Uruguay Round
Agreements Act (URAA). In addition, unless otherwise indicated, all
references to the regulations of the Department are to 19 CFR Part 351
(2001).
Background
On March 25, 1988, the Department published in the Federal Register
the antidumping order on SSPFs from Japan. See Antidumping Duty Order
of Sales at Less Than Fair Value; Stainless Steel Butt-Weld Pipe and
Tube Fittings from Japan 53 FR 9787. On April 19, 2002, Benex submitted
a letter stating that on November 16, 2001, it had acquired the SSPFs
business of Benkan Corporation (Benkan), which had filed for bankruptcy
in October 2000. Benex further stated that it purchased Benkan's
manufacturing facilities (in Yuki City and Kiryu City, Japan) and
materials inventory. Benex stated that it had no previous experience in
the SSPFs business, and had been formed by Japanese investors for the
specific purpose of bringing Benkan out of bankruptcy and turning
around its SSPFs operations. Benex stated that, in view of the
foregoing, it is the successor-in-interest to Benkan and, as such,
Benex is entitled to receive the same antidumping treatment as is
accorded Benkan. In its April 19, 2002 letter, Benex also requested
that the Department conduct an expedited changed circumstances review,
pursuant to 19 CFR 351.216(e).
Scope of Review
The products covered by this review include certain stainless steel
butt-weld pipe and tube fittings, or SSPFs. These fittings are used in
piping systems for chemical plants, pharmaceutical plants, food
processing facilities, waste treatment facilities, semiconductor
equipment applications, nuclear power plants and other areas. This
merchandise is currently classifiable under the Harmonized Tariff
Schedules (HTS) item number 7307.23.0000. While the HTS item number is
provided for convenience and for Customs purposes, the written product
description remains dispositive as to the scope of the product
coverage.
Initiation of Changed Circumstances Antidumping Duty Review
At the request of Benex, and in accordance with section 751(b) of
the Act and 19 CFR 351.216 of the
[[Page 39677]]
Department's regulations, the Department is initiating a changed
circumstances review of SSPFs from Japan to determine whether Benex is
the successor-in-interest to Benkan for purposes of ascertaining
antidumping duty liability in this proceeding. In making such a
successor-in-interest determination, the Department typically examines
several factors including, but not limited to, changes in: (1)
management; (2) production facilities; (3) supplier relationships; and
(4) customer base. See Brass Sheet and Strip from Canada: Notice of
Final Results of Antidumping Administrative Review, 57 FR 20460, 20462
(May 13, 1992) (Canadian Brass). While no single factor or combination
of factors will necessarily be dispositive, the Department generally
will consider the new company to be the successor to the previous
company if its resulting operation is essentially similar to that of
its predecessor. See, e.g., Industrial Phosphoric Acid from Israel:
Final Results of Changed Circumstances Review, 59 FR 6944, 6945
(February 14, 1994) and Canadian Brass, 57 FR 20460. Thus, if the
record evidence demonstrates that, with respect to the production and
sale of the subject merchandise, the new company operates as the same
business entity as the former company, the Department may assign the
new company the cash deposit rate of its predecessor. See, e.g., Fresh
and Chilled Atlantic Salmon from Norway: Final Results of Changes
Circumstances Antidumping Duty Administrative Review, 64 FR 9979, 9980
(March 1, 1999). Additionally, in the event that the Department
concludes that expedited action is warranted, 19 CFR 351.221(c)(3)(ii)
permits the Department to combine the notices of initiation and
preliminary results.
The Department concludes that it would be inappropriate to expedite
this action pursuant to 19 CFR 351.221(c)(3)(ii) by issuing a
preliminary determination prior to conducting an investigation in the
instant case. The Department has reviewed the information contained in
Benex's April 19, 2002, letter and requires further information
regarding successor-in-interest factors including management (e.g.,
document translations), production (e.g., details of various
facilities), suppliers (e.g., clarifications as to suppliers), and
customer base (e.g., clarifications as to sales channels). The
Department's need for additional information, which we will address in
a future information request to Benex, makes expedited action
impracticable and, therefore, the Department is not issuing preliminary
results of its changed circumstances antidumping duty administrative
review at this time.
The Department will publish in the Federal Register a notice of
preliminary results of antidumping duty changed circumstances review,
in accordance with 19 CFR 351.221(b)(4) and 351.221(c)(3)(i), which
will set forth the factual and legal conclusions upon which our
preliminary results are based and a description of any action proposed
based on those results. Pursuant to 351.221(b)(4), interested parties
will have an opportunity to comment. The Department will issue its
final results of review not later than 270 days after publication of
this notice of initiation. All written comments must be submitted to
the Department and served on all interested parties on the Department's
service list in accordance with 19 CFR 351.303.
During the course of this changed circumstances review, we will not
change any cash deposit instructions on the merchandise subject to this
changed circumstances review, unless a change is determined to be
warranted pursuant to the final results of this review.
This initiation of review notice is in accordance with sections
751(b) and 777(i)(1) of the Act and 19 CFR 351.221(c)(3).
Dated: June 3, 2002
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 02-14514 Filed 6-7-02; 8:45 am]