[Federal Register Volume 77, Number 43 (Monday, March 5, 2012)]
[Notices]
[Pages 13079-13082]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-5261]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-850]


Certain Large Diameter Carbon and Alloy Seamless Standard, Line, 
and Pressure Pipe (Over 4\1/2\ Inches) From Japan: Preliminary Results 
of the Antidumping Duty Administrative Review

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

SUMMARY: The Department of Commerce (``Department'') preliminarily 
determines that JFE Steel Corporation (``JFE''); Nippon Steel 
Corporation (``Nippon''); NKK Tubes (``NKK''); and Sumitomo Metal 
Industries, Ltd. (``SMI'') made no shipments of merchandise subject to 
the antidumping duty order on certain large diameter carbon and alloy 
seamless standard, line, and pressure pipe (over 4\1/2\ inches) from 
Japan during the period June 1, 2010, through May 31, 2011. Interested 
parties are invited to comment on the preliminary results.

DATES: Effective Date: March 5, 2012.

FOR FURTHER INFORMATION CONTACT: Sergio Balbontin, AD/CVD Operations, 
Office 1, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230; telephone: (202) 482-6478.

SUPPLEMENTARY INFORMATION: 

Background

    On June 1, 2011, the Department published a notice of opportunity 
to request an administrative review of the antidumping duty order on 
carbon and alloy seamless standard, line, and pressure pipe (over 4\1/
2\ inches) from Japan for the period June 1, 2010, through May 31, 
2011. See Antidumping or Countervailing Duty Order, Finding, or 
Suspended Investigation; Opportunity To Request Administrative Review, 
76 FR 31586 (June 1, 2011). On June 30, 2011, United States Steel 
Corporation (``U.S. Steel''), a domestic producer of the subject 
merchandise, made a timely request that the Department conduct an 
administrative review of JFE, Nippon, NKK, and SMI. On July 28, 2011, 
in accordance with section 751(a) of the Tariff Act of 1930, as amended 
(``the Act''), the Department published in the Federal Register a 
notice of initiation of this antidumping duty administrative review. 
See Initiation of Antidumping and Countervailing Duty Administrative 
Reviews, Requests for Revocations in Part and Deferral of 
Administrative Reviews, 76 FR 45227 (July 28, 2011).
    On August 4, 2011, Nippon submitted a letter to the Department 
certifying that it made no shipments or entries for consumption in the 
United States of subject merchandise during the period of review 
(``POR''). On August 31, 2011, the Department issued its antidumping 
duty questionnaire to JFE, NKK, and SMI. On September 1, 2011, 
September 9, 2011 and September 19, 2011, SMI, NKK, and JFE, 
respectively, submitted letters to the Department certifying that each 
company made no shipments or entries for consumption in the United 
States of subject merchandise during the POR.

Scope of the Order

    The products covered by the order are large diameter seamless 
carbon and alloy (other than stainless) steel standard, line, and 
pressure pipes produced, or equivalent, to the American Society for 
Testing and Materials (``ASTM'') A-53, ASTM A-106, ASTM A-333, ASTM A-
334, ASTM A-589, ASTM A-795, and the American Petroleum Institute 
(``API'') 5L specifications and meeting the physical parameters 
described below, regardless of application. The scope of the order also 
includes all other products used in standard, line, or pressure pipe 
applications and meeting the physical parameters described

[[Page 13080]]

below, regardless of specification, with the exception of the 
exclusions discussed below. Specifically included within the scope of 
the order are seamless pipes greater than 4.5 inches (114.3 mm) up to 
and including 16 inches (406.4 mm) 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.
    The seamless pipes subject to the order are currently classifiable 
under the subheadings 7304.10.10.30, 7304.10.10.45, 7304.10.10.60, 
7304.10.50.50, 7304.19.10.30, 7304.19.10.45, 7304.19.10.60, 
7304.19.50.50, 7304.31.60.10, 7304.31.60.50, 7304.39.00.04, 
7304.39.00.06, 7304.39.00.08, 7304.39.00.36, 7304.39.00.40, 
7304.39.00.44, 7304.39.00.48, 7304.39.00.52, 7304.39.00.56, 
7304.39.00.62, 7304.39.00.68, 7304.39.00.72, 7304.51.50.15, 
7304.51.50.45, 7304.51.50.60, 7304.59.20.30, 7304.59.20.55, 
7304.59.20.60, 7304.59.20.70, 7304.59.60.00, 7304.59.80.30, 
7304.59.80.35, 7304.59.80.40, 7304.59.80.45, 7304.59.80.50, 
7304.59.80.55, 7304.59.80.60, 7304.59.80.65, and 7304.59.80.70 of the 
Harmonized Tariff Schedule of the United States (``HTSUS'').
    Specifications, Characteristics, and Uses: Large diameter seamless 
pipe is used primarily for line applications such as oil, gas, or water 
pipeline, or utility distribution systems. 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 A-106 
standard 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 A-335 standard must be used if 
temperatures and stress levels exceed those allowed for ASTM A-106. 
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. If exceptionally 
low temperature uses or conditions are anticipated, standard pipe may 
be manufactured to ASTM A-333 or ASTM A-334 specifications.
    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 water well pipe (ASTM A-
589) and seamless galvanized pipe for fire protection uses (ASTM A-795) 
are used for the conveyance of water.
    Seamless pipes are commonly produced and certified to meet ASTM A-
106, ASTM A-53, API 5L-B, and API 5L-X42 specifications. To avoid 
maintaining separate production runs and separate inventories, 
manufacturers typically triple or quadruple certify the pipes by 
meeting the metallurgical requirements and performing the required 
tests pursuant to the respective specifications. 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 or 
quadruple certified pipes in large diameters is for use as oil and gas 
distribution lines for commercial applications. A more minor 
application for large diameter seamless pipes is for use in pressure 
piping systems by refineries, petrochemical plants, and chemical 
plants, as well as in power generation plants and in some oil field 
uses (on shore and off shore) such as for separator lines, gathering 
lines and metering runs. These applications constitute the majority of 
the market for the subject seamless pipes. However, ASTM 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, with the 
exception of the exclusions discussed below, 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 ASTM A-
53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-589, ASTM A-795, and API 
5L specifications shall be covered if used in a standard, line, or 
pressure application, with the exception of the specific exclusions 
discussed below.
    For example, there are certain other ASTM specifications of pipe 
which, because of overlapping characteristics, could potentially be 
used in ASTM A-106 applications. These specifications generally include 
ASTM A-161, ASTM A-192, ASTM A-210, ASTM A-252, ASTM A-501, ASTM A-523, 
ASTM A-524, and ASTM A-618. 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 scope of the order are: A. Boiler 
tubing and mechanical tubing, if such products are not produced to ASTM 
A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-589, ASTM A-795, and 
API 5L specifications and are not used in standard, line, or pressure 
pipe applications. B. Finished and unfinished oil country tubular goods 
(``OCTG''), 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. C. Products produced to the A-335 
specification unless they are used in an application that would 
normally utilize ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-
589, ASTM A-795, and API 5L specifications. D. Line and riser pipe for 
deepwater application, i.e., line and riser pipe that is: (1) Used in a 
deepwater application, which means for use in water depths of 1,500 
feet or more; (2) intended for use in and is actually used for a 
specific deepwater project; (3) rated for a specified minimum yield 
strength of not less than 60,000 psi; and (4) not identified or 
certified through the use of a monogram, stencil, or otherwise marked 
with an API specification (e.g., ``API 5L'').
    With regard to the excluded products listed above, the Department 
will not instruct U.S. Customs and Border Protection (``CBP'') to 
require end-use certification until such time as petitioner or other 
interested parties provide to the Department a reasonable basis to 
believe or suspect that the products are being utilized in a covered 
application. If such information is provided, we will require end-use 
certification only for the product(s) (or specification(s)) for which 
evidence is provided that such products are being used in a covered 
application as described above. For example, if, based

[[Page 13081]]

on evidence provided by petitioner, the Department finds a reasonable 
basis to believe or suspect that seamless pipe produced to the A-335 
specification is being used in an A-106 application, we will require 
end-use certifications for imports of that specification. Normally we 
will require only the importer of record to certify to the end use of 
the imported merchandise. If it later proves necessary for adequate 
implementation, we may also require producers who export such products 
to the United States to provide such certification on invoices 
accompanying shipments to the United States.
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, our written description of the merchandise subject to 
this scope is dispositive.

Preliminary Determination of No Shipments

    As noted above, all four of the potential respondents submitted 
letters to the Department indicating that they did not make any 
shipments or entries of subject merchandise to the United States during 
the POR. In response to the Department's query to CBP, CBP data showed 
subject merchandise manufactured by SMI may have entered for 
consumption into the United States during the POR. On December 14 and 
20, 2011, the Department placed on the record of the review the CBP 
data and copies of the entry documents in question.
    The Department confirmed with CBP the no shipment claims of NKK, 
JFE, and Nippon. Because the evidence on the record indicates NKK, JFE, 
and Nippon did not export subject merchandise to the United States 
during the POR, we preliminarily determine these three companies had no 
reviewable transactions during the POR.
    On December 16, 2011, the Department requested that SMI 
substantiate its claims of no shipments. On January 20, 2012, SMI 
reiterated that it did not make any U.S. sales of subject merchandise 
during the POR and that it did not sell subject merchandise to any end 
users or distributors with knowledge that the subject merchandise would 
be subsequently exported to the United States during the POR. SMI did 
report selling subject merchandise through trading companies, 
distributors, and end users in Japan and third countries. However, SMI 
added that it neither initiated nor was aware of its subject 
merchandise being exported from Japan or third countries to the United 
States during the POR.
    Based on SMI's submissions and our review of CBP documentation, the 
Department preliminarily determines that the record evidence supports 
SMI's explanation that, at the time of the sale, it had no knowledge 
that any of these entries of subject merchandise entered the United 
States during the POR. Accordingly, we preliminarily determine that 
subject merchandise produced by SMI entered the United States during 
the POR under its antidumping case number, but did so by way of 
intermediaries without its knowledge. See Memorandum to the File 
titled, ``Preliminary Determination of No Shipments in the Antidumping 
Duty Administrative Review on Certain Large Diameter Carbon and Alloy 
Seamless Standard, Line, and Pressure Pipe (Over 4 [frac12] Inches) 
from Japan,'' dated concurrently with this notice for a full analysis. 
Thus, the Department finds that SMI's claim of no shipments or entries 
for consumption is substantiated. Based upon the certifications and the 
evidence on the record, we are satisfied that SMI had no shipments of 
subject merchandise to the United States during the POR, and, as such, 
we preliminarily determine that SMI had no reviewable transactions 
during the POR.
    Since the implementation of the 1997 regulations, our practice 
concerning no-shipment respondents had been to rescind the 
administrative review if the respondent certifies that it had no 
shipments and we have confirmed through our examination of CBP data 
that there were no shipments of subject merchandise during the POR. See 
19 CFR 351.213(d)(3); see also Certain Large Diameter Carbon and Alloy 
Seamless Standard, Line, and Pressure Pipe From Japan: Rescission of 
Antidumping Duty Administrative Review, 75 FR 38781 (July 6, 2010). In 
such circumstances, we normally instruct CBP to liquidate any entries 
from the no-shipment company at the deposit rate in effect on the date 
of entry. See 19 CFR 351.212(a)
    In our May 6, 2003, ``automatic assessment'' clarification, we 
explained that, where respondents in an administrative review 
demonstrate that they had no knowledge of sales through resellers to 
the United States, we would instruct CBP to liquidate such entries at 
the all-others rate applicable to the proceeding. See Antidumping and 
Countervailing Duty Proceedings: Assessment of Antidumping Duties, 68 
FR 23954 (May 6, 2003) (``Assessment Policy Notice'').
    Because ``as entered'' liquidation instructions do not alleviate 
the concerns which the Assessment Policy Notice was intended to 
address, we determine that it is appropriate in this case to instruct 
CBP to liquidate any existing entries of merchandise produced by 
Nippon, JFE, SMI, and NKK, and exported by other parties at the all-
others rate, should we continue to find that Nippon, JFE, SMI, and NKK 
had no shipments of subject merchandise in the POR in our final 
results. See, e.g., Magnesium Metal From the Russian Federation: 
Preliminary Results of Antidumping Duty Administrative Review, 75 FR 
26922, 26923 (May 13, 2010), unchanged in Magnesium Metal From the 
Russian Federation: Final Results of Antidumping Duty Administrative 
Review, 75 FR 56989, 56990 (September 17, 2010). In addition, the 
Department finds that it is more consistent with the Assessment Policy 
Notice not to rescind the review in part in these circumstances but, 
rather, to complete the review with respect to Nippon, JFE, SMI, and 
NKK and to issue appropriate instructions to CBP based on the final 
results of the review. See the ``Assessment Rates'' section of this 
notice below.

Public Comment

    Pursuant to 19 CFR 351.309(c), interested parties may submit case 
briefs within 30 days of the date of publication of this notice. 
Rebuttal briefs, which must be limited to issues raised in the case 
briefs, should be filed not later than five days after the time limit 
for filing case briefs. See 19 CFR 351.309(d). Parties submitting 
arguments in this proceeding are requested to submit with each 
argument: (1) A statement of the issue; (2) a brief summary of the 
argument; and (3) a table of authorities, in accordance with 19 CFR 
351.309(d)(2). Further, parties submitting case and/or rebuttal briefs 
are requested to provide the Department with an additional electronic 
copy of the public version of any such comments on a computer diskette. 
Case and rebuttal briefs must be served on interested parties in 
accordance with 19 CFR 351.303(f).
    Pursuant to 19 CFR 351.310(c), any interested party may request a 
hearing within 30 days of publication of this notice in the Federal 
Register. If a hearing is requested, the Department will notify 
interested parties of the hearing schedule. Issues raised in the 
hearing will be limited to those raised in the case briefs.
    The Department will issue the final results of this administrative 
review, which will include the results of its analysis of issues raised 
in any such comments, within 120 days of publication of these 
preliminary results, unless extended. See section

[[Page 13082]]

751(a)(3)(A) of the Act and 19 CFR 351.213(h).

Cash-Deposit Requirements

    If we continue to make a final determination of no shipments, cash 
deposit requirements will not change, and we will not issue cash 
deposit instructions to CBP. The following cash deposit requirements 
are currently in effect: (1) for previously reviewed or investigated 
companies, the cash-deposit rate will continue to be the company-
specific rate published for the most recent period; (2) if the exporter 
is not a firm covered in a prior review or in the less-than-fair-value 
(``LTFV'') investigation but the manufacturer is, the cash-deposit rate 
will be the rate established for the most recent period for the 
manufacturer of the subject merchandise; (3) if neither the exporter 
nor the manufacturer is a firm covered in this or any previous segment 
of the proceeding, the cash-deposit rate will continue to be the all-
others rate established in the LTFV investigation, which is 68.88 
percent. See Notice of Antidumping Duty Orders: 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 39360 
(June 26, 2000). These deposit requirements continue to remain in 
effect until further notice.

Assessment Rates

    Upon completion of the administrative review, the Department shall 
determine, and CBP shall assess, antidumping duties on all appropriate 
entries, in accordance with 19 CFR 351.212. The Department intends to 
issue appraisement instructions directly to CBP 15 days after the date 
of publication of the final results of this review.
    As noted above, the Department clarified its ``automatic 
assessment'' regulation on May 6, 2003. See Assessment Policy Notice. 
This clarification will apply to POR entries by all respondent 
companies if we continue to make a final determination of no shipments 
because they certified that they made no POR shipments of subject 
merchandise for which they had knowledge of U.S. destination. We will 
instruct CBP to liquidate these entries at the all-others rate 
established in the less-than-fair-value investigation, 68.88 per cent, 
if there is no rate for the intermediary involved in the transaction. 
See Assessment Policy Notice for a full discussion of this 
clarification.

Notification to Importers

    This notice also serves as a preliminary 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 the subsequent 
assessment of double antidumping duties.
    These preliminary results of administrative review and notice are 
published in accordance with sections 751(a)(1) and 777(i)(1) of the 
Act and 19 CFR 351.221.

    Dated: February 24, 2012.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.
[FR Doc. 2012-5261 Filed 3-2-12; 8:45 am]
BILLING CODE 3510-DS-P