Initiation of Antidumping Duty Investigations: Certain Carbon Steel Butt-Weld Pipe Fittings From France, et al.

DEPARTMENT OF COMMERCE

[A-427-813, A-533-811, A-508-807, A-557-808, A-580-824, A-549-809, A-

412-816, A-307-812]

Initiation of Antidumping Duty Investigations: Certain Carbon

Steel Butt-Weld Pipe Fittings From France, et al.

AGENCY: Import Administration, International Trade Administration,

Commerce.

EFFECTIVE DATE: March 25, 1994.

FOR FURTHER INFORMATION CONTACT: Steve Alley or Louis Apple, Office of

Antidumping Investigations, Import Administration, International Trade

Administration, U.S. Department of Commerce, 14th Street and

Constitution Avenue, NW., Washington, DC 20230; telephone (202) 482-

5288 and 482-1769, respectively.

INITIATION OF INVESTIGATIONS:

The Petition

On February 28, 1994, we received petitions filed on behalf of the

domestic industry in proper form from the U.S. Fittings Group, an ad

hoc trade association, a majority of whose members produce the subject

merchandise. Petitioner filed supplements to the petition on March 14

and 15, 1994. In accordance with 19 CFR 353.12, petitioner alleges that

certain carbon steel butt-weld pipe fittings (pipe fittings) from

France, India, Israel, Malaysia, South Korea, Thailand (manufacturer:

Awaji Sangyo (Thailand) Co., Ltd. (AST)), the United Kingdom, and

Venezuela are being, or are likely to be, sold in the United States at

less than fair value within the meaning of section 731 of the Tariff

Act of 1930, as amended (the Act), and that these imports are

materially injuring, or threaten material injury to, a U.S. industry.

(Note: On July 6, 1992, the Commerce Department published in the

Federal Register (57 FR 29702) an antidumping duty order on pipe

fittings from Thailand. However, AST was excluded from the antidumping

order because its exports were found to have a de minimis dumping

margin. However, based on petitioner's recent allegation, we have

determined that it is appropriate to initiate a new investigation of

AST.)

Petitioner stated that it has standing to file the petition because

it represents interested parties as defined under section 771(9)(E) of

the Act, and because the petition was filed on behalf of the U.S.

industry producing the product subject to these investigations. If any

interested party, as described under paragraphs (C), (D), (E) or (F) of

section 771(9) of the Act, wishes to register support for, or

opposition to, this petition, such party should file a written

notification with the Assistant Secretary for Import Administration.

Scope of Investigations

The products covered by these investigations are certain carbon

steel butt-weld pipe fittings having an inside diameter of less than

fourteen inches (355 millimeters), imported in either finished or

unfinished condition. Pipe fittings are forged steel products used to

join pipe sections in piping systems where conditions require

permanent, welded connections, as distinguished from fittings based on

other methods of fastening (e.g., threaded, grooved, or bolted

fittings). Pipe fittings come in several basic shapes: ``elbows'',

``tees'', ``caps'', and ``reducers''. The edges of finished pipe

fittings are beveled, so that when a fitting is placed against the end

of a pipe (the ends of which have also been beveled), a shallow channel

is created to accommodate the ``bead'' of the weld which joins the

fitting to the pipe. These pipe fittings are currently classifiable

under subheading 7307.93.3000 of the Harmonized Tariff Schedule of the

United States (HTSUS). Although the HTSUS subheading is provided for

convenience and customs purposes, our written descriptions of the scope

of these proceedings are dispositive.

United States Price and Foreign Market Value

For all countries except Venezuela, petitioner based United States

Price (USP) on price quotes obtained through the business activity of

one of its members. Such price quotes show delivered prices of butt-

weld pipe fittings to unrelated U.S. customers. Petitioner calculated

USP by subtracting movement charges and U.S. customs duties.

For Venezuela, petitioner based U.S. price on average unit values

derived from U.S. Customs import statistics.

Petitioner was unable to obtain home market or third country prices

for any of the eight countries. Therefore, in accordance with 19 CFR

353.12(b)(7), constructed value (CV) was used to calculate foreign

market value (FMV). Petitioner based the CV on the costs of one of its

members, adjusted for known differences in each country. Petitioner

then added selling, general and administrative expenses, and profit to

compute the CV.

Fair Value Comparisons

Based on the data provided by the petitioner, there is reason to

believe that the merchandise is being, or is likely to be, sold at less

than fair value. The margins alleged by petitioners are listed below.

If it becomes necessary at a later date to consider the petitions as a

source of best information available (BIA) in any of the

investigations, we may review more thoroughly all of the bases for USP

and FMV in determining BIA.

------------------------------------------------------------------------

Alleged margins

Country (percent)

------------------------------------------------------------------------

France.............................................. 72.86 to 117.24

India............................................... 143.35 to 188.09

Israel.............................................. 63.19 to 87.05

Malaysia............................................ 140.41 to 194.70

South Korea......................................... 72.36 to 207.89

Thailand............................................ 77.67 to 175.30

United Kingdom...................................... 50.29 to 92.31

Venezuela........................................... 188.58 to 595.66

------------------------------------------------------------------------

Initiation of Investigations

We have examined the petition on pipe fittings from France, India,

Israel, Malaysia, South Korea, Thailand (manufacturer: AST), the United

Kingdom, and Venezuela and have found that it meets the requirements of

section 732(b) of the Act. Therefore, we are initiating antidumping

duty investigations to determine whether imports of pipe fittings from

France, India, Israel, Malaysia, South Korea, Thailand (manufacturer:

AST), the United Kingdom, and Venezuela are being, or are likely to be,

sold in the United States at less than fair value.

ITC Notification

Section 732(d) of the Act requires us to notify the International

Trade Commission (ITC) of this action and we have done so.

Preliminary Determination by the ITC

The ITC will determine by April 14, 1994, pursuant to section

733(a)(1) of the Act, whether there is a reasonable indication that

imports of pipe fittings from France, India, Israel, Malaysia, South

Korea, Thailand (manufacturer: AST), the United Kingdom, and Venezuela

are materially injuring, or threaten material injury to, a U.S.

industry. Pursuant to section 733(a)(2) of the Act, a negative ITC

determination will result in the respective investigation being

terminated; otherwise, the investigations will proceed according to

statutory and regulatory time limits.

This notice is published pursuant to section 732(c)(2) of the Act

and 19 CFR 353.13(b).

Dated: March 21, 1994.

Paul L. Joffe,

Acting Assistant Secretary for Import Administration.

[FR Doc. 94-7123 Filed 3-24-94; 8:45 am]

BILLING CODE 3510-DS-P