[Federal Register Volume 74, Number 124 (Tuesday, June 30, 2009)]
[Notices]
[Pages 31249-31251]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-15493]


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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 From Japan: Rescission of Antidumping Duty 
Administrative Review

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

SUMMARY: On July 30, 2008, the U.S. Department of Commerce (the 
Department) published a notice of initiation of an administrative 
review of the antidumping duty order on certain large diameter carbon 
and alloy seamless standard, line, and pressure pipe from Japan. The 
review covers four manufacturers/exporters: JFE Steel Corporation; 
Nippon Steel Corporation; NKK Tubes; and Sumitomo Metal Industries, 
Ltd. (SMI). The period of review (POR) is June 1, 2007, through May 31, 
2008. Following the receipt of a certification of no shipments from all 
four respondents, we notified the domestic interested party of the 
Department's intent to rescind this review and provided an opportunity 
to comment on the rescission. We received no comments. Therefore, we 
are rescinding this administrative review.

DATES: Effective Date: Insert date of publication in the Federal 
Register.

FOR FURTHER INFORMATION CONTACT: Alexander Montoro, 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) 482-0238.

SUPPLEMENTARY INFORMATION: 

Background

    On June 30, 2007, 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 Steel 
Corporation, Nippon Steel Corporation, NKK Tubes, and SMI. On July 30, 
2008, in accordance with section 751(a) of the Tariff Act of 1930, as 
amended (the Act), the Department published in the Federal Register a

[[Page 31250]]

notice initiating this 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, 2007, through May 31, 2008. 
See Initiation of Antidumping and Countervailing Duty Administrative 
Reviews, Request for Revocation in Part, and Deferral of Administrative 
Review, 73 FR 44220 (July 30, 2008). On August 22, 2008, the Department 
issued its antidumping duty questionnaire to these four companies. On 
September 2, 2008, NKK Tubes submitted a letter to the Department 
certifying that the company made no shipments or entries for 
consumption in the United States of the subject merchandise during the 
POR. On September 8, 2008, JFE Steel Corporation also submitted a 
letter to the Department, certifying that the company made no shipments 
or entries for consumption in the United States of the subject 
merchandise during the POR. Finally, Nippon Steel Corporation and SMI 
submitted letters to the Department on September 9, 2008, and September 
12, 2008, respectively, certifying that the companies made no shipments 
or entries for consumption in the United States of the subject 
merchandise during the POR.

Scope of the Order

    The products covered by this review 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 this review also includes all 
other products used in standard, line, or pressure pipe applications 
and meeting the physical parameters described below, regardless of 
specification, with the exception of the exclusions discussed below. 
Specifically included within the scope of this review 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 this review 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 this review 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 this review. 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

[[Page 31251]]

products are covered by the scope of this review.
    Specifically excluded from the scope of this review 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 this 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 on evidence provided by the 
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.

Rescission of the Administrative Review

    As noted above, all four 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 one of the respondent companies, SMI, was entered for 
consumption into the United States during the POR from third countries. 
On February 19, 2009, the Department placed, on the record of this 
review, copies of the entry documents in question.
    Additionally, on February 19, and April 29, 2009, the Department 
sent questionnaires to SMI and requested that SMI further substantiate 
its claim of no shipments. On March 27, and May 13, 2009, SMI provided 
the Department with responses, and explained in detail that it had no 
knowledge of the entries in question. On the basis of these documents 
and submissions, the Department has concluded that there is no evidence 
on the record that, at the time of sale, SMI had knowledge that these 
entries were destined for the United States, nor is there evidence that 
SMI had knowledge that any of these entries of subject merchandise 
entered the United States during the POR. See Memorandum to the File, 
from Alexander Montoro, International Trade Compliance Analyst, through 
Nancy Decker, Program Manager, AD/CVD Operations Office 1, entitled 
``Intent to Rescind the Antidumping Duty Administrative Review on 
Certain Large Diameter Carbon and Alloy Seamless Standard, Line, and 
Pressure Pipe from Japan,'' May 28, 2009 (Intent to Rescind Memo). 
Specifically, subject merchandise produced by SMI entered the United 
States during the POR under its antidumping case number, but this 
occurred without the company's knowledge by way of intermediaries. See 
Intent to Rescind Memo. For JFE Steel Corporation, Nippon Steel 
Corporation, and NKK Tubes, the CBP data showed no entries of subject 
merchandise into the United States during the POR. Thus, the Department 
found that the respondents' claims of no shipments or entries for 
consumption to be substantiated. On May 28, 2009, the Department 
notified interested parties of its intent to rescind this 
administrative review and gave parties until June 8, 2009, to provide 
comments. See Intent to Rescind Memo. No comments were received.
    Based upon the certifications and the evidence on the record, we 
are satisfied that none of the respondents had shipments of subject 
merchandise to the United States during the POR. Pursuant to 19 CFR 
351.213(d)(3), the Department may rescind an administrative review, in 
whole or with respect to a particular exporter or producer, if the 
Secretary concludes that, during the period covered by the review, 
there were no entries, exports, or sales of the subject merchandise. 
Therefore, the Department is rescinding this review in accordance with 
19 CFR 351.213(d)(3).
    The Department clarified its ``automatic assessment'' regulation on 
May 6, 2003. See Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) (Assessment 
of Dumping Duties). This clarification will apply to entries of subject 
merchandise during the POR produced by the respondent company for which 
it did not know that the merchandise it sold to the intermediary (e.g., 
a reseller, trading company, or exporter) was destined for the United 
States. In such instances, we will instruct CBP to liquidate un-
reviewed entries at the ``All Others'' rate if there is no rate for the 
intermediary involved in the transaction. See Assessment of Dumping 
Duties for a full discussion of this clarification. The Department will 
issue liquidation instructions to CBP 15 days after the publication of 
this notice of rescission of review.
    We are issuing and publishing this notice in accordance with 
sections 751(a)(1) and 777 (i)(1) of the Act.

    Dated: June 18, 2009.
John M. Andersen,
Acting Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations.
[FR Doc. E9-15493 Filed 6-29-09; 8:45 am]
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