[Federal Register Volume 65, Number 123 (Monday, June 26, 2000)]
[Notices]
[Pages 39358-39359]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16102]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-827]


Notice of Final Determination of Sales at Less Than Fair Value: 
Certain Large Diameter Carbon and Alloy Seamless Standard, Line and 
Pressure Pipe From Mexico

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

ACTION: Notice of Sales at Less than Fair Value.

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SUMMARY: On February 4, 2000, the Department of Commerce (``the 
Department'') published its preliminary determination of sales at less 
than fair value of certain large diameter carbon and alloy seamless 
standard, line and pressure pipe (``large diameter seamless pipe'') 
from Mexico. The investigation covers one manufacturer/exporter, Tubos 
de Acero de Mexico, S.A. (``TAMSA''). The period of investigation 
(``POI'') is April 1, 1998, through March 31, 1999.
    Based on our analysis of comments received, we have made changes in 
the margin calculations. Therefore, the final determination differs 
from the preliminary determination. The final weighted-average dumping 
margin for the investigated company is listed below in the 
``Continuation of Suspension of Liquidation'' section of this notice.

EFFECTIVE DATE: June 26, 2000.

FOR FURTHER INFORMATION CONTACT: Russell Morris or Geoffrey Craig, AD/
CVD Enforcement, Office 6, Group II, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230; telephone: 
(202) 482-1775 or (202) 482-4161, respectively.

SUPPLEMENTARY INFORMATION:

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as amended (``the 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 regulations 
refer to the regulations codified at 19 CFR part 351 (April 1999).

Case History

    Since the preliminary determination (see 65 FR 5587 (February 4, 
2000) (``Preliminary Determination'')), the following events have 
occurred:
    <bullet> On February 11, 2000, the petitioners \1\ submitted 
ministerial error allegations. The Department accepted the clerical 
errors and corrected the margin calculation program where it deemed 
necessary and published a Notice of Amended Preliminary Determination 
of Sales at Less Than Fair Value: Certain Large Diameter Carbon and 
Alloy Seamless Standard, Line, and Pressure Pipe From Mexico, 65 FR 
13715 (March 14, 2000).
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    \1\ The petitioners in this investigation are: U.S. Steel Group, 
Lorain Tubular Co. LLC (both units of USX Corp.), and the United 
Steel Workers of America.
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    <bullet> The Department verified the responses of TAMSA, in 
Veracruz, Mexico from February 21 through February 25, 2000, and in 
Houston, Texas from March 1 through March 3, 2000. (see the 
``Verification'' section below).
    <bullet> On April 26, 2000, the petitioners requested that the 
Department amend the scope to exclude certain line and riser pipe for 
use exclusively in deepwater applications and the Department accepted 
the revised scope language. See Notice of Final Determination of Sales 
at Less Than Fair Value: Certain Large Diameter Carbon and Alloy 
Seamless Standard, Line and Pressure Pipe from Japan; and Certain Small 
Diameter Carbon and Alloy Seamless Standard, Line and Pressure Pipe 
from Japan and the Republic of South Africa, 65 FR 25907 (May 4, 2000).
    <bullet> TAMSA and the petitioners filed case and rebuttal briefs 
on May 1, 2000 and May 8, 2000, respectively.
    <bullet> On May 15, 2000, we rejected portions of TAMSA's rebuttal 
brief on the grounds that it contained new factual information. On May 
16, 2000, TAMSA resubmitted its rebuttal brief in accordance with the 
Department's instructions.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation, as well as certain other findings by the Department 
which are summarized in this notice, are addressed in the ``Issues and 
Decision Memorandum for the Final Determination in the Antidumping Duty 
Investigation of Certain Large Diameter Carbon and Alloy Seamless 
Standard, Line and Pressure Pipe from Mexico'April 1, 1998, through 
March 31, 1999'' (``Decision Memorandum''), from Holly A. Kuga, Acting 
Deputy Assistant Secretary, Import

[[Page 39359]]

Administration, to Richard W. Moreland, Acting Assistant Secretary for 
Import Administration, dated June 19, 2000, which is hereby adopted by 
this notice. A list of issues which parties have raised and to which we 
have responded, all of which are in the Decision Memorandum, 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 this public Decision Memorandum which 
is on file in the Central Records Unit, of the main Department building 
(``Room B-099''). In addition, a complete version of the Decision 
Memorandum can be accessed directly on the World Wide Web at: 
www.ita.doc.gov/import_admin/records/frn. The paper copy and electronic 
version of the Decision Memorandum are identical in content.

Scope of Investigation

    The products covered by the investigation are large diameter 
seamless carbon and alloy (other than stainless) steel standard, line, 
and pressure pipes.
    For a complete description of the scope of this investigation, see 
the ``Scope of Investigation'' section of the Decision Memorandum. The 
scope of the investigation has been amended since the Preliminary 
Determination.

Product Comparisons

    We compared the products sold by the respondent in the comparison 
market during the POI to the products sold in the United States during 
the POI using the methodology described in the Preliminary 
Determination.

Fair Value Comparisons

    To determine whether sales of large diameter seamless pipe from 
Mexico were made in the United States at less than fair value, we 
compared constructed export price (``CEP'') to the normal value 
(``NV''). Our calculations followed the methodologies described in the 
Preliminary Determination, except as noted below and in the ``Final 
Determination Calculation Memorandum for the Investigation of Certain 
Large Diameter Carbon and Alloy Seamless Standard, Line and Pressure 
Pipe from Mexico (``Calculation Memorandum''), from Russell Morris, 
Case Analyst, to John Brinkmann, Program Manager, dated June 16, 2000, 
which has been placed in the file in Room B-099.

1. CEP

    For the price to the United States, we used CEP as defined in 
section 772 of the Act. We calculated CEP based on the same methodology 
as in the Preliminary Determination, with the following exceptions:
    The petitioners, in their case brief, alleged certain errors 
concerning the merchandise processing fee and inland freight expenses. 
See Comments 5 and 6, respectively, of the Decision Memorandum for a 
further discussion. We accepted their allegations and made the 
respective adjustments in the CEP calculation.

2. NV

    We used the same methodology to calculate NV as that described in 
the Preliminary Determination, with the following exception:
    The petitioners, in their case brief, alleged an error concerning 
the variable cost of manufacturing. See Comment 3 of the Decision 
Memorandum for a further discussion. We accepted their allegation and 
made the adjustment in the NV calculation.

3. Level of Trade Analysis

    We made the same level of trade determinations described in the 
Preliminary Determination.

Currency Conversion

    We made currency conversions in accordance with section 773A of the 
Act in the same manner as in the Preliminary Determination.

Verification

    As provided in section 782(i) of the Act, we verified the 
information submitted by the respondent for use in our final 
determination. We used standard verification procedures, including 
examination of relevant accounting and production records, as well as 
original source documents provided by the respondents.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we are 
directing the Customs Service to continue to suspend the liquidation of 
all entries of large diameter seamless pipe from Mexico that are 
entered, or withdrawn from warehouse, for consumption on or after 
February 4, 2000, the date of publication of the Preliminary 
Determination in the Federal Register. The Customs Service shall 
continue to require a cash deposit or the posting of a bond equal to 
the weighted-average dumping margin, as indicated in the chart below. 
These suspension of liquidation instructions will remain in effect 
until further notice.

------------------------------------------------------------------------
                                                                Margin
                   Manufacturer/exporter                      (percent)
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Tubos de Acero de Mexico...................................        19.65
All Others.................................................        19.65
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ITC Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (``ITC'') of our determination. As our 
final determination is affirmative, the ITC will, within 45 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 
the Customs Service 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: June 19, 2000.
Richard W. Moreland,
Acting Assistant Secretary for Import Administration.

Appendix--List of Comments and Issues in the Decision Memorandum

Comment 1: Coding of U.S. Market Products
Comment 2: Date of Sale Methodology
Comment 3: Variable Cost of Manufacture
Comment 4: Direct Selling Expenses
Comment 5: Merchandise Processing Fee
Comment 6: U.S. Inland Freight Expenses
Comment 7: Unreported U.S. Sales
Comment 8: Short-Term Borrowing Rate
Comment 9: Calculation of Credit Expense
Comment 10: Export Price (``EP'')/Constructed Export Price (``CEP'') 
Sales Classification
Comment 11: CEP Profit Calculation

[FR Doc. 00-16102 Filed 6-23-00; 8:45 am]
BILLING CODE 3510-DS-P