Certain Circular Welded Non-Alloy Steel Pipe From the Republic of Korea; Preliminary Results of Changed Circumstances Review

DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-809]

Certain Circular Welded Non-Alloy Steel Pipe From the Republic of

Korea; Preliminary Results of Changed Circumstances Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of preliminary results of changed circumstances

antidumping duty administrative review.

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SUMMARY: On June 16, 2002, the Department of Commerce published a

notice of initiation in the changed circumstances review of the

antidumping duty order on circular welded non-alloy steel pipe from the

Republic of Korea. As a result of this review, the Department of

Commerce preliminarily finds, for the purposes of this proceeding, that

Husteel Company, Ltd. is the successor-in-interest to Shinho Steel

Company, Ltd.

EFFECTIVE DATE: October 1, 2002.

FOR FURTHER INFORMATION CONTACT: Suresh Maniam or Scott Holland, Import

Administration, International Trade Administration, U.S. Department of

Commerce, 14th Street and Constitution Avenue, NW., Washington, DC

20230; telephone (202) 482-0176 and (202) 482-1279, respectively.

Applicable Statute

Unless otherwise indicated, all citations to the Tariff Act of

1930, as amended (the ``Act''), are references to the provisions

effective January 1, 1995, the effective date of the amendments made to

the Act by the Uruguay Round Agreements Act. In addition, unless

otherwise indicated, all citations to the Department of Commerce's

(``the Department's'') regulations are to 19 CFR part 351 (2002).

SUPPLEMENTARY INFORMATION:

Background:

Since the initiation of this changed circumstances review (Notice

of Initiation of Changed Circumstances Antidumping Duty Administrative

Review (``Initiation''), 67 FR 41394, June 16, 2002) the following

events have occurred:

On July 12, 2002, we issued a changed circumstances questionnaire

to Husteel requesting additional information regarding successorship.

We received a response to the questionnaire from Husteel on August 9,

2002.

Scope of the Review

The merchandise subject to this review is circular welded non-alloy

steel pipe and tube, of circular cross-section, not more than 406.4mm

(16 inches) in outside diameter, regardless of wall thickness, surface

finish (black, galvanized, or painted), or end finish (plain end,

beveled end, threaded, or threaded and coupled). These pipes and tubes

are generally known as standard pipes and tubes and are intended for

the low-pressure conveyance of water, steam, natural gas, air, and

other liquids and gases in plumbing and heating systems, air-

conditioning units, automatic sprinkler systems, and other related

uses. Standard pipe may also be used for light load-bearing

applications, such as for fence tubing, and as structural pipe tubing

used for framing and as support members for reconstruction or load-

bearing purposes in the construction, shipbuilding, trucking, farm

equipment, and other

[[Page 61579]]

related industries. Unfinished conduit pipe is also included in this

order.

All carbon-steel pipes and tubes within the physical description

outlined above are included within the scope of this review except line

pipe, oil country tubular goods, boiler tubing, mechanical tubing, pipe

and tube hollows for redraws, finished scaffolding, and finished

conduit. In accordance with the Department's Final Negative

Determination of Scope Inquiry on Certain Circular Welded Non-Alloy

Steel Pipe and Tube from Brazil, the Republic of Korea, Mexico, and

Venezuela, 61 FR 11608, (March 21, 1996), pipe certified to the API 5L

line-pipe specification and pipe certified to both the API 5L line-pipe

specifications and the less-stringent ASTM A-53 standard-pipe

specifications, which falls within the physical parameters as outlined

above, and entered as line pipe of a kind used for oil and gas

pipelines is outside of the scope of the antidumping duty order.

Imports of these products are currently classifiable under the

following Harmonized Tariff Schedule of the United States (``HTSUS'')

subheadings: 7306.30.10.00, 7306.30.50.25, 7306.30.50.32,

7306.30.50.40, 7306.30.50.55, 7306.30.50.85, and 7306.30.50.90.

Although the HTSUS subheadings are provided for convenience and Customs

Service purposes, the written description of the scope of this

proceeding is dispositive.

Preliminary Results

In making successor-in-interest determinations, the Department

examines several factors including, but not limited to, changes in: (1)

Management; (2) production facilities; (3) supplier relationships; and

(4) customer base. See, e.g., Brass Sheet and Strip from Canada; Final

Results of Antidumping Duty Administrative Review, 57 FR 20460-61 (May

13, 1992). While no single factor, or combination of factors, will

necessarily prove dispositive, the Department will generally consider

the new company to be the successor to its predecessor company if the

resulting operations are essentially the same as those of the

predecessor company. See, e.g., Id. and Industrial Phosphoric Acid from

Israel: Final Results of Changed Circumstances Review, 59 FR 6944, 6945

(February 14, 1994). Thus, if the evidence demonstrates that, with

respect to the production and sale of the subject merchandise, the new

company operates as the same business entity as its predecessor, the

Department will assign the new company the cash-deposit rate of its

predecessor.

Based on the information submitted by Husteel in its August 9,

2002, questionnaire response (``questionnaire response''), we

preliminarily determine that Husteel is the successor-in-interest to

Shinho.

Husteel previously provided documentation to support the name

change, including the minutes of the shareholders' meeting where the

name change was approved, the corporate articles before and after the

name change, court certification of the name change, and the new

business registration certificate issued by tax authorities. See

Initiation.

Subsequent to initiation, Husteel provided further documentation to

support its statement that the company's management structure,

production facilities, supplier relationships and customer base remain

unchanged. The Company organizational charts and Board of Directors did

not change. The company continues to operate two production facilities,

one at Inchon and in Daebul, Korea. Furthermore, we noted that the

product code lists for each facility, the monthly purchase transactions

by vendor, the monthly home market sales transactions by customer, for

the period of January 2002, through June 2002, were unchanged.

Based on the evidence on the record, we preliminarily find that

Husteel operates as the same business entity as Shinho. Consequently,

we preliminarily determine that Husteel should receive the same

antidumping duty cash-deposit rate (i.e., a 2.99 percent antidumping

duty cash-deposit rate) with respect to the subject merchandise as the

predecessor company, Shinho. See Circular Welded Non-Alloy Steel Pipe

from the Republic of Korea; Amended Final Results of Antidumping

Administrative Review, 66 FR 28422, (May 23, 2001).

Public Comment

Any interested party may request a hearing within 30 days of

publication of this notice. See 19 CFR 351.310(c). Any hearing, if

requested, will be held 44 days after the date of publication of this

notice, or the first working day thereafter. Interested parties may

submit case briefs and/or written comments not later than 30 days after

the date of publication of this notice. Rebuttal briefs and rebuttals

to written comments, which must be limited to issues raised in such

briefs or comments, may be filed not later than 37 days after the date

of publication. Parties who submit arguments are requested to submit

with the argument (1) a statement of the issue, (2) a brief summary of

the argument, and (3) a table of authorities.

Consistent with section 351.216(e) of the Department's regulations,

we will issue the final results of this changed circumstances review no

later than 270 days after the date on which this review was initiated,

or within 45 days if all parties agree to our preliminary finding.

This notice is in accordance with section 751(b) of the Act.

Dated: September 25, 2002.

Faryar Shirzad,

Assistant Secretary for Import Administration.

[FR Doc. 02-24927 Filed 9-30-02; 8:45 am]

BILLING CODE 3510-DS-P