65 FR 81825, December 27, 2000 

[A-557-809]

 
Notice of Final Determination of Sales at Less Than Fair Value: 
Stainless Steel Butt-Weld Pipe Fittings From Malaysia

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

ACTION: Notice of the final determination in the less than fair value 
investigation of stainless steel butt-weld pipe fittings from Malaysia.

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SUMMARY: On August 2, 2000, the Department of Commerce (``Department'') 
published the preliminary determination in the less than fair value 
(``LTFV'') investigation of stainless steel butt-weld pipe fittings 
from Malaysia. See Notice of Preliminary Determination of Sales at Not 
Less Than Fair Value and Postponement of Final Determination: Stainless 
Steel Butt-Weld Pipe Fittings from Malaysia, 65 FR 47398 (August 2, 
2000) (``Preliminary Determination''). This investigation covers one 
manufacturer/exporter of the subject merchandise. The period of 
investigation (``POI'') is October 1, 1998 through September 30, 1999.
    Based upon our verification of the data and analysis of the 
comments received, we have made changes to our determination. 
Therefore, the final

[[Page 81826]]

determination differs from the preliminary determination of this 
investigation. The final weighted-average dumping margin is listed 
below in the section titled ``Final Determination of the 
Investigation.''

EFFECTIVE DATE: December 27, 2000.

FOR FURTHER INFORMATION CONTACT: Juanita H. Chen or Rick Johnson, 
Enforcement Group III, Office 9, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue, NW., Washington, DC 20230, telephone 202-482-0409 (Chen) or 
202-482-3818 (Johnson), fax 202-482-1388.

SUPPLEMENTARY INFORMATION:

Applicable Statute

    Unless otherwise indicated, all citations to the Tariff Act of 1930 
(``Act'') are references to the provisions effective 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 citations to the Department's regulations are to the 
regulations at 19 CFR Part 351 (1999).

Period of Investigation

    The period of investigation (``POI'') is October 1, 1998 through 
September 30, 1999.

Background

    On January 18, 2000, the Department initiated an antidumping duty 
investigation on stainless steel butt-weld pipe fittings from Malaysia. 
See Initiation of Antidumping Duty Investigations: Stainless Steel 
Butt-Weld Pipe Fittings From Germany, Italy, Malaysia and the 
Philippines, 65 FR 4595 (January 31, 2000). On August 2, 2000, the 
Department published a notice of its preliminary determination in the 
investigation. See Preliminary Determination, 65 FR 47398. On September 
25, 2000 through September 29, 2000, the Department conducted the sales 
verification for Kanzen Tetsu Sdn. Bhd. (``Kanzen''). See Sales 
Verification Report (October 11, 2000). On October 2, 2000 through 
October 6, 2000, the Department conducted the cost verification for 
Kanzen. See Verification Report on the Cost of Production and 
Constructed Value Data (October 31, 2000). We invited parties to 
comment on our Preliminary Determination. Petitioners submitted their 
case brief (``Petitioners'' Brief'') on November 13, 2000. Kanzen did 
not submit a case brief. Kanzen submitted its rebuttal brief (``Kanzen 
Rebuttal'') on November 20, 2000. Pursuant to a September 1, 2000 
request by petitioners, the Department held a public hearing on the 
issues on November 22, 2000. The Department has conducted and completed 
the investigation in accordance with section 735 of the Act.

Scope of the Investigation

    For purposes of this investigation, the product covered is certain 
stainless steel butt-weld pipe fittings (``pipe fittings''). Certain 
pipe fittings are under 14 inches in outside diameter (based on nominal 
pipe size), whether finished or unfinished. The product encompasses all 
grades of stainless steel and ``commodity'' and ``specialty'' fittings. 
Specifically excluded from the definition are threaded, grooved, and 
bolted fittings, and fittings made from any material other than 
stainless steel.
    The pipe fittings subject to this investigation are generally 
designated under specification ASTM A403/A403M, the standard 
specification for Wrought Austenitic Stainless Steel Piping Fittings, 
or its foreign equivalents (e.g., DIN or JIS specifications). This 
specification covers two general classes of fittings, WP and CR, of 
wrought austenitic stainless steel fittings of seamless and welded 
construction covered by the latest revision of ANSI B16.9, ANSI B16.11, 
and ANSI B16.28. Pipe fittings manufactured to specification ASTM A774, 
or its foreign equivalents, are also covered by this investigation.
    This investigation does not apply to cast fittings. Cast austenitic 
stainless steel pipe fittings are covered by specifications A351/A351M, 
A743/743M, and A744/A744M.
    The pipe fittings subject to this investigation are currently 
classifiable under subheading 7307.23.0000 of the Harmonized Tariff 
Schedule of the United States (``HTSUS''). Although the HTSUS 
subheadings are provided for convenience and Customs purposes, the 
written description of the scope of this investigation is dispositive.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs to this 
investigation are addressed in the December 15, 2000 Issues and 
Decision Memorandum (``Decision Memo'') from Joseph A. Spetrini, Deputy 
Assistant Secretary, Import Administration, to Troy H. Cribb, Assistant 
Secretary for Import Administration, which is hereby adopted by this 
notice. A list of the issues which parties have raised and to which we 
have responded, and other issues addressed, all of which are in the 
Decision Memo, is attached to this notice as an Appendix. Parties can 
find a complete discussion of all issues raised in this investigation 
and the corresponding recommendations in the Decision Memo, a public 
memorandum which is on file at the U.S. Department of Commerce, in the 
Central Records Unit, in room B-099. In addition, a complete version of 
the Decision Memo can be accessed directly on the Web at http://
ia.ita.doc.gov. The paper copy and electronic version of the Decision 
Memorandum are identical in content.

Use of Facts Available

    In accordance with section 776 of the Act, we have determined that 
the use of facts available is appropriate for certain portions of our 
analysis of Kanzen. For a discussion of our determination with respect 
to this matter, see the Decision Memo.

Fair Value Comparisons

    To determine whether sales of pipe fittings from Malaysia to the 
United States were made at LTFV, we compared the export price (``EP'') 
to the normal value (``NV''), as described in the ``Export Price'' and 
``Normal Value'' sections of our Preliminary Determination, except as 
noted below, and as set forth in the Decision Memo, and the Analysis 
Memorandum for Kanzen Tetsu Sdn. Bhd.: Final Determination in the Less 
Than Fair Value Investigation of Stainless Steel Butt-Weld Pipe 
Fittings from Malaysia (December 15, 2000) (``Final Analysis Memo'').

Export Price

    We are calculating and applying an average unit bank charge per ton 
on U.S. sales, applying facts available from Kanzen's U.S. sales to 
calculate marine insurance expense on certain sales, correcting the 
marine insurance denomination in our margin analysis program, applying 
facts available on Kanzen's returns during the POI, allocating a 
percentage of miscellaneous unreported bank charges to Kanzen's U.S. 
sales, applying partial adverse facts available to Kanzen's unreported 
U.S. sale, and including the quantity for the unshipped sale reported 
by Kanzen, applying facts available for certain variables. See Decision 
Memo and Final Analysis Memo.

Normal Value

    We are applying invoice date as the date of sale for U.K. sales, 
rather than contract date as in the Preliminary Determination. We are 
disallowing direct selling expenses on Kanzen's U.K. sales, adjusting 
domestic inland freight on certain invoices, correcting the reported 
payment date for certain sales observations, and allocating a

[[Page 81827]]

percentage of miscellaneous unreported bank charges to Kanzen's U.K. 
sales. See Decision Memo and Final Analysis Memo.

Cost of Production

    We have revised the calculations for the variance ratios, scrap, 
adjustment for differences in merchandise, and the general and 
administrative expense factors. See Decision Memo and Final Analysis 
Memo.

Sales Below Cost in the Comparison Market

    The Department disregarded comparison market below-cost sales that 
failed the cost test in the final results of the investigation.

Changes Since the Preliminary Determination

    Based on our verification and analysis of the comments received, 
including ministerial error comments, we have made certain changes in 
the model match and margin calculation programs, as discussed in the 
Decision Memo, the Final Analysis Memo, and the Ministerial Error 
Memorandum for the Preliminary Determination of Sales at Not Less Than 
Fair Value (August 17, 2000) (``Ministerial Error Memo'').

Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we are 
directing the U.S. Customs Service (``Customs'') to suspend liquidation 
of all entries of subject merchandise from Malaysia that are entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of this Final Determination in the Federal Register, as 
provided by section 735(c)(1)(C) of the Act. We will instruct Customs 
to require a cash deposit or the posting of a bond equal to the 
weighted-average amount by which the normal value exceeds the U.S. 
price, as indicated in the chart below. These suspension of liquidation 
instructions will remain in effect until further notice.

                 Stainless Steel Butt-Weld Pipe Fittings
------------------------------------------------------------------------
                                                              Weighted-
                                                               average
               Producer/manufacturer/exporter                   margin
                                                              (percent)
------------------------------------------------------------------------
Kanzen.....................................................         7.51
All others.................................................         7.51
------------------------------------------------------------------------

ITC Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (``ITC'') of our final determination. As 
our final determination is affirmative, the ITC will, within 75 days, 
determine whether these imports are materially injuring, or threaten 
material injury to, the U.S. industry. If the ITC determines that 
material injury or threat of material injury does not exist, the 
proceeding will be terminated and all securities posted will be 
refunded or canceled. If the ITC determines that such injury does 
exist, the Department will issue an antidumping duty order directing 
Customs to assess antidumping duties on all imports of the subject 
merchandise entered or withdrawn from warehouse for consumption on or 
after the effective date of the suspension of liquidation.
    This determination is issued and published pursuant to sections 
735(d) and 777(i)(1) of the Act.

    Dated: December 15, 2000.
Troy H. Cribb,
Assistant Secretary for Import Administration.

Appendix--Issues in the Decision Memo

General Issues:

     Ministerial Errors From the Preliminary Determination

General Sales Issues:

     Date of Sale/Market Viability
     Bank Charges

U.K. Sales Issues:

     Domestic Inland Freight
     Credit Period
     FOB v. CIF
     Early Payment Discount

U.S. Sales Issues:

     Marine Insurance Expense
     Marine Insurance Expense Discount and Denomination
     Returns
     Miscellaneous Bank Charges
     Unreported U.S. Sales
     Unshipped Sale
     Inland Freight

Cost Issues:

     Total Adverse Facts Available
     Allocation of Cost Variances
     Standard Cost Reduction Factor for Pipes Used for 
Fittings
     Cost of Fittings Made of Finished Pipes
     G&A Expense Ratio

[FR Doc. 00-32979 Filed 12-26-00; 8:45 am]
BILLING CODE 3510-DS-P