[Federal Register Volume 66, Number 39 (Tuesday, February 27, 2001)]
[Notices]
[Pages 12465-12466]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-4771]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-428-820]


Small Diameter Circular Seamless Carbon and Alloy Steel Standard 
Line and Pressure Pipes From Germany; Notice of Amended Final Results 
of Antidumping Duty Administrative Review in Accordance With Final 
Court Decision

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

ACTION: Notice of Amended Final Results of Administrative Review in 
Accordance with Final Court Decision on Small Diameter Circular 
Seamless Carbon and Alloy Steel Standard Line and Pressure Pipes from 
Germany.

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EFFECTIVE DATE: February 27, 2001.

FOR FURTHER INFORMATION CONTACT: Nancy Decker or Phyllis Hall, AD/CVD 
Enforcement Group III, Office VII, Room 7866, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW., Washington, DC 20230; telephone: 
(202) 482-0196 or (202) 482-1398, respectively.
SUMMARY: On October 5, 2000, the U.S. Court of International Trade (the 
Court) affirmed the Department of Commerce's (the Department) remand 
determination of the final results of the antidumping duty 
administrative review of Small Diameter Circular Seamless Carbon and 
Alloy Steel Standard Line and Pressure Pipes from Germany. As no 
further appeals have been filed and there is now a final and conclusive 
court decision in this action, we are amending our final results.

SUPPLEMENTARY INFORMATION:

Background

    On March 18, 1998, the Department published the final results of 
the administrative review in small diameter circular seamless carbon 
and alloy steel standard line and pressure pipes from Germany (63 FR 
13217) (Final Results), covering the period January 27, 1995 through 
July 31, 1996. On April 27, 1998, the Department published the amended 
final results of the administrative review in small diameter circular 
seamless carbon and alloy steel standard line and pressure pipes from 
Germany (63 FR 20579) (Amended Final Results).
    Respondent Mannesmann challenged the Department's final results on 
three issues: (1) the Department's interpretation of sections 773(f)(2) 
and (3) of the Act; (2) the Department's use of adverse facts available 
to value Mannesmann's purchases of steel billets from an affiliated 
supplier; and (3) the use of adverse facts available to value the 
amount of U.S. customs duties paid by Mannesmann. In the Final Results, 
the Department, pursuant to sections 773(f)(2) and (3) of the Act, used 
the highest of the transfer price, cost of production or market value 
to value the billets purchased from an affiliated supplier. The 
Department concluded that because Mannesmann had not acted to the best 
of its ability to comply with the Department's information requests, 
the application of the higher market value to value the billets 
purchased from its affiliated supplier as adverse facts available was 
warranted. The Department determined adverse facts available was 
warranted because of Mannesmann's lack of response to the Department's 
request for market price information for any purchases of the identical 
input from unaffiliated suppliers, and the discovery at verification 
that Mannesmann did make such a purchase of an identical input from 
both its affiliated supplier and an unaffiliated supplier. The 
Department utilized the purchase price of the purchase discovered at 
verification as market value and used this information as facts 
available to determine market value for the other types of billets 
because there was no other market value information on the record for 
the other types of billets. In addition, the Department found that the 
use of adverse facts available was appropriate for the final results. 
Therefore, the Department applied this market value adjustment to all 
purchases from affiliated suppliers. To value the customs duties 
Mannesmann paid on its U.S. sales in the Final Results, the Department 
used as adverse facts available, the highest U.S. duty amounts reported 
by Mannesmann for those instances where it was unable to exactly verify 
Mannesmann's duty rates. The Department applied adverse facts available 
because it discovered at verification that Mannesmann had under-
reported its U.S. duties paid on a number of entries, and because 
Mannesmann could not recreate or explain the allocation methodologies 
it used to derive its figures. Thus, for the Final Results, the 
Department determined a dumping margin of 22.12 percent for the period 
of review (POR), based on adverse facts available. On October 29, 1999, 
the court remanded these final results. See Mannesmannrohren-Werke AG 
v. United States, 77 F.Supp.2d 1302 (CIT 1999).
    The court upheld the Department's interpretation of sections 
773(f)(2) and (3) of the Act as allowing the Department to use the 
highest of the transfer price, cost of production or market price to 
value an input from an affiliated supplier and affirmed the 
Department's practice. However, the Court also found that the evidence 
cited by the Department was insufficient to justify the use of adverse 
facts available to value Mannesmann's billet purchases from its 
affiliated suppliers. Similarly, the Court also found that the record 
evidence identified by the Department did not support the use of 
adverse facts available to value the U.S. duties paid by Mannesmann. 
Therefore, the Court ordered the Department to reevaluate its use of 
adverse facts available and either identify substantial evidence in 
support of its conclusion that Mannesmann failed to cooperate by not 
acting to the best of its ability in providing information about input 
purchases from both affiliated and non-affiliated parties, or otherwise 
apply non-adverse facts available. The Court also ordered the 
Department to identify other record evidence to support the use of 
adverse facts available to value the U.S. duties paid by Mannesmann or 
otherwise use non-adverse facts available. The Department issued its 
remand determination on January 27, 2000. See Remand Determination: 
Mannesmannrohren-Werke AG v. United States, Court No. 98-04-00886 
(hereinafter ``Remand Results'' or RR). In this remand determination, 
the Department citing additional record evidence, continues to 
calculate a dumping margin based on adverse facts available for the 
value of Mannesmann's purchases of steel billets from an affiliated 
supplier. However, the Department used non-adverse facts available to 
value the customs duties Mannesmann paid on its U.S. sales.
    On October 5, 2000 the Court affirmed the Department's remand 
results, upholding the use of adverse facts available in valuing 
Mannesmann's billet purchases, and the application of non-adverse facts 
available in determining the value of U.S. duties paid. See 
Mannesmannrohren-Werke

[[Page 12466]]

AG vs. United States, Slip Op. 00-126 (CIT, October 5, 2000). Pursuant 
to the Court's order, we have placed on the record in this case the 
margin calculation program using adverse facts available for billet 
purchases and non-adverse facts available for duties paid by 
Mannesmann.

Amendment to Final Results of Review

    Because no further appeals have been filed and there is now a final 
and conclusive decision in the court proceeding, effective as of the 
publication date of this notice, we are amending the Final Results, and 
establishing the following revised dumping margin:

  Small Diameter Circular Seamless Carbon and Alloy Steel Standard and
               Pressure Pipe From Germany (POR 1995-1996)
------------------------------------------------------------------------
                                                              Weighted-
               Producer/manufacturer/exporter                  average
                                                                margin
------------------------------------------------------------------------
Mannesmann.................................................       20.08%
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    The ``All Others Rate'' was not affected by the Remand 
Determination, and remains at 57.72 percent. See Final Results (FR 63 
13217).
    The Department will instruct the Customs Service to assess these 
revised antidumping duties on all appropriate entries. The Department 
will issue appraisement instructions directly to the Customs Service.
    This notice is published in accordance with section 751(a) of the 
Act. Effective January 20, 2001, Bernard T. Carreau is fulfilling the 
duties of the Assistance Secretary for Import Administration.

    Dated: February 16, 2001.
Bernard T. Carreau,
Deputy Assistant Secretary, Import Administration.
[FR Doc. 01-4771 Filed 2-26-01; 8:45 am]
BILLING CODE 3510-DS-P