[Federal Register Volume 65, Number 209 (Friday, October 27, 2000)]
[Notices]
[Pages 64426-64428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-27688]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-475-815]


Seamless Carbon and Alloy Steel Standard, Line and Pressure Pipe 
From Italy; Preliminary Results of Sunset Review of Countervailing Duty 
Order

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

ACTION: Notice of Preliminary Results of Full Sunset Review: Seamless 
Carbon and Alloy Steel Standard, Line and Pressure Pipe from Italy.

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SUMMARY: On July 3, 2000, the Department of Commerce (``the 
Department'') initiated a sunset review of the countervailing duty 
order on seamless carbon and alloy steel standard, line and pressure 
pipe (``seamless pipe'') from Italy (65 FR 41053) pursuant to section 
751(c) of the Tariff Act of 1930, as amended (``the Act''). On the 
basis of substantive responses filed by domestic and respondent 
interested parties, the Department determined to conduct a full review. 
As a result of this review, the Department preliminarily finds that 
revocation of the countervailing duty order would likely lead to 
continuation or recurrence of subsidies at the levels indicated in the 
Preliminary Results of Review section of this notice.

EFFECTIVE DATE: October 27, 2000.

FOR FURTHER INFORMATION CONTACT: Kathryn B. McCormick or James Maeder, 
Office of Policy for Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
1930 or (202) 482-3330, respectively.

SUPPLEMENTARY INFORMATION:

Statute and Regulations

    This review is being conducted pursuant to sections 751(c) and 752 
of the Act. The Department's procedures for the conduct of sunset 
reviews are set forth in Procedures for Conducting Five-year 
(``Sunset'') Reviews of Countervailing and Countervailing Duty Orders, 
63 FR 13516 (March 20, 1998)

[[Page 64427]]

(``Sunset Regulations'') and in 19 CFR part 351 (2000) in general. 
Guidance on methodological or analytical issues relevant to the 
Department's conduct of sunset reviews is set forth in the Department's 
Policy Bulletin 98.3--Policies Regarding the Conduct of Five-year 
(``Sunset'') Reviews of Countervailing and Countervailing Duty Orders; 
Policy Bulletin, 63 FR 18871 (April 16, 1998) (``Sunset Policy 
Bulletin'').

Background

    On July 3, 2000, the Department initiated a sunset review of the 
countervailing duty order on seamless pipe from Italy (65 FR 41053), 
pursuant to section 751(c) of the Tariff Act of 1930, as amended, 
(``the Act''). The Department received a notice of intent to 
participate on behalf of U.S. Steel Group, a unit of USX Corporation, 
and Vision Metals, Inc. (collectively, ``domestic interested 
parties''), within the applicable deadline (July 18, 2000) specified in 
section 351.218(d)(1)(i) of the Sunset Regulations. Domestic interested 
parties claimed interested-party status under section 771(9)(C) of the 
Act, as U.S. manufacturers of the domestic like product. Vision Metals, 
Inc., formerly the Gulf States Tube Division of Quanex Corporation, was 
a petitioner in the investigation and has been involved in this 
proceeding since its inception (see August 2, 2000, Substantive 
Response of domestic interested parties at 3).
    On August 1, 2000, we received a response from the European Union 
Delegation of the European Commission (``EC'') expressing its 
willingness to participate in this review as the authority responsible 
for defending the interest of the Member States of the European Union 
(``EU'') (see August 1, 2000, Response of the EC at 2). On August 2, 
2000, we received a response from the Government of Italy (``GOI'') 
expressing its willingness to participate in this review as the 
government of a country in which subject merchandise is produced and 
exported. The GOI and EC note that they have in the past participated 
in this proceeding (see August 1, 2000, Response of the EC at 2, and 
the August 2, 2000, Response of the GOI at 2).
    On August 2, 2000, we received a complete substantive response from 
domestic interested parties, within the 30-day deadline specified in 
the Sunset Regulations under section 351.218(d)(3)(i), and a complete 
substantive response from Dalmine S.p.A. (``Dalmine''), a foreign 
producer and exporter of the subject merchandise, and a respondent 
interested party under section 771(9)(A) of the Act.
    We received rebuttal comments from domestic interested parties and 
Dalmine, on August 8, 2000, and August 7, 2000, respectively. Pursuant 
to 19 CFR 351.218(e)(2)(i), the Department determined to conduct a full 
(240-day) sunset review of this order.\1\
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    \1\ See August 22, 2000, Memorandum for Jeffrey A. May, Re: 
Seamless Pipe from Italy; Adequacy of Respondent Interested Party 
Response to the Notice of Initiation.
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Scope of Review

    See Appendix.

Analysis of Comments Received

    All issues raised in the substantive responses and rebuttals by 
parties to this sunset review are addressed in the ``Issues and 
Decision Memorandum'' (``Decision Memorandum'') from Jeffrey A. May, 
Director, Office of Policy, Import Administration, to Troy H. Cribb, 
Acting Assistant Secretary for Import Administration, dated October 23, 
2000, which is hereby adopted by this notice. The issues discussed in 
the attached Decision Memorandum include the likelihood of continuation 
or recurrence of countervailable subsidies and the net subsidy likely 
to prevail were the order revoked. Parties can find a complete 
discussion of all issues raised in this review and the corresponding 
recommendations in this public memorandum which is on file in the 
Central Records Unit, room B-099, of the main Commerce building.
    In addition, a complete version of the Decision Memorandum can be 
accessed directly on the Web at http://ia.ita.doc.gov/frn, under the 
heading ``Italy.'' The paper copy and electronic version of the 
Decision Memorandum are identical in content.

Preliminary Results of Review

    We preliminarily determine that revocation of the countervailing 
duty order on seamless pipe from Italy would be likely to lead to 
continuation or recurrence of countervailable subsidy at the rate 
listed below:

------------------------------------------------------------------------
                                                               Net
                                                         countervailable
                  Producers/exporters                        subsidy
                                                            (percent)
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All producers/exporters from Italy.....................           1.47
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    Any interested party may request a hearing within 30 days of 
publication of this notice in accordance with 19 CFR 351.310(c). Any 
hearing, if requested, will be held on December 17, 2000, in accordance 
with 19 CFR 351.310(d). Interested parties may submit case briefs no 
later than December 11, 2000, in accordance with 19 CFR 
351.309(c)(1)(i). Rebuttal briefs, which must be limited to issues 
raised in the case briefs, may be filed not later than December 18, 
2000. The Department will issue a notice of final results of this 
sunset review, which will include the results of its analysis of issues 
raised in any such briefs, no later than February 28, 2001.
    This five-year (``sunset'') review and notice are in accordance 
with sections 751(c), 752, and 777(i)(1) of the Act.

    Dated: October 23, 2000.
Troy H. Cribb,
Acting Assistant Secretary for Import Administration.

Appendix

    The scope of this order includes small diameter seamless carbon 
and alloy standard, line and pressure pipes (``seamless pipes'') 
produced to the American Society for Testing and Materials 
(``ASTM'') standards A-335, A-106, A-53, and American Petroleum 
Institute (``API'') standard API 5L specifications and meeting the 
physical parameters described below, regardless of application. The 
scope of this review 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 
review, 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 thicknesses are commonly referred to 
as tubes. The seamless pipes subject to this review 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 
review, 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

[[Page 64428]]

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 pipe lines. 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 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 review 
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 review. 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 review. Specifically excluded from this review 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 review, 
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 
review 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.

[FR Doc. 00-27688 Filed 10-26-00; 8:45 am]
BILLING CODE 3510-DS-P