[Federal Register Volume 62, Number 7 (Friday, January 10, 1997)]
[Notices]
[Pages 1429-1430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-632]


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DEPARTMENT OF COMMERCE

International Trade Administration
[A-201-805]


Certain Circular Welded Non-Alloy Steel Pipe From Mexico; 
Initiation of Anticircumvention Inquiry on Antidumping Duty Order

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

ACTION: Notice of initiation of anticircumvention inquiry.

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SUMMARY: In response to a request from petitioners in this case <SUP>1, 
the Department of Commerce (the Department) is initiating an 
anticircumvention inquiry to determine whether imports of (i) pipe 
certified to the American Petroleum Institute (API) 5L line pipe 
specifications (API 5L or line pipe) and (ii) pipe certified to both 
the API 5L line pipe specifications and the less stringent American 
Society for Testing and Materials (ASTM) A-53 standard pipe 
specifications (dual certified pipe <SUP>2), falling within the 
physical dimensions outlined in the scope of the order, are 
circumventing the antidumping duty order on certain welded non-alloy 
carbon steel pipe from Mexico (57 FR 49453, November 2, 1992).
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    \1\  Petitioners are: Allied Tube & Conduit Corp., Sawhill 
Tubular Division of Tex-Tube Co., Century Tube Corp., Laclede Steel 
Co., LTV Tubular Products Co.; Sharon Tube Co., Western Tube & 
Conduit Co., Wheatland Tube Co., and CSI Tubular Products, Inc.
    \2\  This merchandise, sometimes referred to as ``dual-
stenciled,'' may also include ``multiple-stenciled'' pipe.

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EFFECTIVE DATE: January 10, 1997.

FOR FURTHER INFORMATION CONTACT: Robert M. James at (202) 482-5222 or 
John Kugelman at (202) 482-0649, Antidumping and Countervailing Duty 
Enforcement Group III, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC, 20230.

APPLICABLE STATUTE AND REGULATIONS: Unless otherwise indicated, all 
citations to the Tariff Act of 1930, as amended (the Tariff Act), and 
to the Department's regulations are references to the provisions as 
they existed on December 31, 1994.

SUPPLEMENTARY INFORMATION:

Background

    On April 23, 1993, petitioners requested that the Department 
conduct an anticircumvention inquiry pursuant to section 781(c) of the 
Tariff Act covering imports of API 5L line pipe and dual-certified pipe 
from Mexico. Petitioners alleged that, following publication of the 
antidumping duty order, exporters of standard pipe from Mexico began 
circumventing the order by having pipe intended for use as standard 
pipe certified as line pipe or certified for use as both line and 
standard pipe. Petitioners further alleged that pipe distributors were 
substituting pipe certified to the more stringent line and dual-
certified specifications for the standard pipe subject to the order, 
and that end users of standard pipe began using imported line and dual-
certified pipe in ``standard pipe applications.'' According to 
petitioners, the ``transformation of standard pipe into * * * pipe 
which also meets the line pipe standard is a ``minor alteration of 
merchandise'' within the meaning of section 781(c) of the [Tariff] 
Act.'' See Anticircumvention Petition, April 23, 1993 at 1.
    After examining petitioners' allegations, we instead initiated a 
scope inquiry under 19 CFR 353.29(i) on June 7, 1993, to determine 
whether both API 5L line pipe and dual-certified pipe, when actually 
used in standard pipe applications, are within the scope of the orders. 
On March 21, 1996, we determined that both line and dual-certified pipe 
were explicitly excluded from the orders. Final Negative Scope 
Determination (61 FR 11608).
    On April 12, 1996, Wheatland Tube Company (Wheatland), one of the 
original petitioners, filed a lawsuit before the Court of International 
Trade (the Court) challenging the final scope determination and the 
fact that the Department did not initiate an anticircumvention inquiry, 
as petitioners originally requested. On July 12, 1996, we requested a 
remand from the Court in order to provide a full explanation on the 
record as to why we did not initiate an anticircumvention inquiry or, 
if appropriate, to initiate such a proceeding. On October 9, 1996, the 
Court denied our motion for a voluntary remand and, in response to a 
separate motion filed by Wheatland, also dismissed all counts of the 
original complaint as to Mexico. <SUP>3
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    \3\ Based on the Court's denial of our request for voluntary 
remand, the Department is not initiating an anticircumvention 
inquiry with respect to pipe imports from Brazil and Korea.
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Initiation of Anticircumvention Proceeding

    Section 353.29(b) of our regulations provides that applications for 
anticircumvention determinations contain (1) a detailed description of 
the product, including technical characteristics and uses of the 
product, and its current U.S. Tariff Classification number; (2) a 
statement of the interested party's position as to whether the product 
is within the scope of an antidumping order, including (i) a summary of 
the reasons for this conclusion, (ii) citations to any applicable 
statutory authority, and (iii) attachment of any factual support for 
this position, including applicable portions of the Secretary's or the 
Commission's investigation. Where all of these conditions are met, our 
regulations state we will evaluate the application to determine whether 
an inquiry is warranted.
    Upon review of petitioners' application, we find that it contains a 
detailed description of the products and

[[Page 1430]]

a statement of the petitioners' position as to whether the product is 
included within the order, as required by 19 CFR 353.29(b). Based on 
our evaluation of the petition (see Memorandum, Joseph A. Spetrini to 
Robert S. LaRussa, December 19, 1996, on file in Room B-099 of the Main 
Commerce Building), we determine that a formal inquiry is warranted.
    Accordingly, we are initiating a circumvention inquiry concerning 
the antidumping duty order on standard pipe from Mexico, pursuant to 
section 781(c) of the Tariff Act. In accordance with 19 CFR 353.29(j), 
we will not instruct the Customs Service to suspend liquidation and 
require a cash deposit of estimated duties on the merchandise which is 
the subject of this inquiry unless and until we issue an affirmative 
preliminary determination.
    The Department will, following consultation with the interested 
parties, establish a schedule for questionnaires and comments on the 
issues. The Department intends to issue its final determination within 
300 days of the date of publication of this initiation.
    This notice is published in accordance with section 781(c) of the 
Tariff Act (19 U.S.C. 1677j(c)) and 19 CFR 353.29.

    Dated: December 20, 1996.
Robert S. LaRussa,
Acting Assistant Secretary for Import Administration.
[FR Doc. 97-632 Filed 1-9-97; 8:45 am]
BILLING CODE 3510-DS-P