Notice of Antidumping Duty Order and Amended Final Determination: Certain Small Diameter Seamless Carbon and Alloy Steel Standard, Line and Pressure Pipe From Brazil

[[Page 39707]]

DEPARTMENT OF COMMERCE

[A-351-826]

Notice of Antidumping Duty Order and Amended Final Determination:

Certain Small Diameter Seamless Carbon and Alloy Steel Standard, Line

and Pressure Pipe From Brazil

Agency: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: August 3, 1995.

FOR FURTHER INFORMATION CONTACT: Irene Darzenta or Fabian Rivelis,

Office of Antidumping Duty Investigations, Import Administration, U.S.

Department of Commerce, 14th Street and Constitution Avenue, NW.,

Washington, DC 20230; telephone (202) 482-6320 or (202) 482-3853,

respectively.

Applicable Statute and Regulations

Unless otherwise indicated, all citations to the statute and to the

Department's regulations are in reference to the provisions as they

existed on December 31, 1994.

Amended Final Determination

In accordance with section 735(a) of the Tariff Act of 1930, as

amended (the Act), on June 12, 1995, the Department made its final

determination that certain small diameter seamless carbon and alloy

steel standard, line and pressure pipe (seamless pipe) from Brazil is

being, or is likely to be, sold in the United States at less than fair

value (60 FR 31960, June 19, 1995). After publication of this

determination, we received a submission, timely filed pursuant to 19

CFR 353.28(b)(1994), from Mannesmann S.A. (MSA), alleging certain

ministerial errors in the Department's determination. We also received

a timely rebuttal of respondent's ministerial error allegations from

the petitioner. We determined, in accordance with 19 CFR 353.28(d),

that a ministerial error was made with respect to the figures used as

best information available for home market and U.S. packing expenses.

We determined that we inadvertently used the highest U.S. and lowest

home market packing figures on the record without regard to the month

of shipment. We have corrected that error. Consistent with our

hyperinflationary methodology, we applied the lowest home market

packing expense and the highest U.S. packing expense on the record

based on the month of shipment. With respect to those U.S. sales

shipped after June 1994, for which we did not have information on

packing expenses, we used the highest U.S. packing expense on the

record for June 1994. For a detailed discussion of the alleged

ministerial errors and the Department's analysis, see the Memorandum

from the Team to Gary Taverman dated July 17, 1995. In accordance with

19 CFR 353.28(c), we are amending the final result of the antidumping

duty investigation of seamless pipe from Brazil to correct the above-

cited ministerial error. The revised final weighted-average dumping

margins are as follows:

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

Original Revised

Manufacturer/producer/exporter margin margin

percent percent

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

MSA............................................... 125.00 124.94

All Others........................................ 125.00 124.94

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

Scope of Investigation and Order

The scope of this investigation includes small diameter seamless

carbon and alloy standard, line and pressure pipes (seamless pipes)

produced to the ASTM A-335, ASTM A-106, ASTM A-53 and API 5L

specifications and meeting the physical parameters described below,

regardless of application. The scope of this investigation also

includes all products used in standard, line, or pressure pipe

applications and meeting the physical parameters below, regardless of

specification.

For purposes of this investigation, seamless pipes are seamless

carbon and alloy (other than stainless) steel pipes, of circular cross-

section, not more than 114.3 mm (4.5 inches) in outside diameter,

regardless of wall thickness, manufacturing process (hot-finished or

cold-drawn), end finish (plain end, bevelled end, upset end, threaded,

or threaded and coupled), or surface finish. These pipes are commonly

known as standard pipe, line pipe or pressure pipe, depending upon the

application. They may also be used in structural applications. Pipes

produced in non-standard wall thicknesses are commonly referred to as

tubes.

The seamless pipes subject to these investigations are currently

classifiable under subheadings 7304.10.10.20, 7304.10.50.20,

7304.31.60.50, 7304.39.00.16, 7304.39.00.20, 7304.39.00.24,

7304.39.00.28, 7304.39.00.32, 7304.51.50.05, 7304.51.50.60,

7304.59.60.00, 7304.59.80.10, 7304.59.80.15, 7304.59.80.20, and

7304.59.80.25 of the Harmonized Tariff Schedule of the United States

(HTSUS).

The following information further defines the scope of this

investigation, which covers pipes meeting the physical parameters

described above:

Specifications, Characteristics and Uses: 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 American

Society for Testing and Materials (ASTM) standard A-106 may be used in

temperatures of up to 1,000 degrees fahrenheit, at various American

Society of Mechanical Engineers (ASME) code stress levels. Alloy pipes

made to ASTM standard A-335 must be used if temperatures and stress

levels exceed those allowed for A-106 and the ASME codes. 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.

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 pipes are commonly produced and certified to meet ASTM A-

106, ASTM A-53 and API 5L specifications. Such triple certification of

pipes is common because all pipes meeting the stringent A-106

specification necessarily meet the API 5L and ASTM A-53 specifications.

Pipes meeting the API 5L specification necessarily meet the ASTM A-53

specification. However, pipes meeting the A-53 or API 5L specifications

do not necessarily meet the A-106 specification. To avoid maintaining

separate production runs and separate inventories, manufacturers triple

certify the pipes. 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

certified pipes is in pressure piping systems by refineries,

petrochemical plants and chemical plants. Other applications are in

power generation plants (electrical-fossil fuel or nuclear), and in

some oil field uses (on shore and off shore) such

[[Page 39708]]

as for separator lines, gathering lines and metering runs. A minor

application of this product is for use as oil and gas distribution

lines for commercial applications. These applications constitute the

majority of the market for the subject seamless pipes. However, A-106

pipes may be used in some boiler applications.

The scope of this investigation includes all seamless pipe meeting

the physical parameters described above and produced to one of the

specifications listed above, regardless of application, and 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 investigation. Therefore, seamless

pipes meeting the physical description above, but not produced to the

A-335, A-106, A-53, or API 5L standards shall be covered if used in a

standard, line or pressure application.

For example, there are certain other ASTM specifications of pipe

which, because of overlapping characteristics, could potentially be

used in A-106 applications. These specifications generally include A-

162, A-192, A-210, A-333, and A-524. When such pipes are used in a

standard, line or pressure pipe application, such products are covered

by the scope of this investigation.

Specifically excluded from this investigation are boiler tubing and

mechanical tubing, if such products are not produced to A-335, A-106,

A-53 or API 5L specifications and are not used in standard, line or

pressure applications. In addition, finished and unfinished OCTG are

excluded from the scope of this investigation, 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.

Finally, also excluded from this investigation are redraw hollows for

cold-drawing when used in the production of cold-drawn pipe or tube.

Although the HTSUS subheadings are provided for convenience and

customs purposes, our written description of the scope of this

investigation is dispositive.

Antidumping Duty Order

On July 26, 1995, in accordance with section 735(d) of the Act, the

U.S. International Trade Commission (ITC) notified the Department that

imports of seamless pipe from Brazil materially injure a U.S. industry.

Therefore, in accordance with section 736 of the Act, the Department

will direct United States Customs officers to assess, upon further

advice by the administering authority pursuant to section 736(a)(1) of

the Act, antidumping duties equal to the amount by which the foreign

market value of the merchandise exceeds the United States price for all

entries of seamless pipe from Brazil. These antidumping duties will be

assessed on all unliquidated entries of seamless pipes from Brazil

entered, or withdrawn from warehouse, for consumption on or after

January 27, 1995, the date on which the Department published its

preliminary determination notice in the Federal Register (60 FR 5351).

On or after the date of publication of this notice in the Federal

Register, U.S. Customs officers must require, at the same time as

importers would normally deposit estimated duties, the following cash

deposits for the subject merchandise:

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

Weighted-

average

Manufacturer/producer/exporter margin

percentage

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

Mannesmann S.A.............................................. 124.94

All Others.................................................. 124.94

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

This notice constitutes the antidumping duty order with respect to

seamless pipe from Brazil, pursuant to section 736(a) of the Act.

Interested parties may contact the Central Records Unit, Room B-099 of

the Main Commerce Building, for copies of an updated list of

antidumping duty orders currently in effect.

This order is published in accordance with section 736(a) of the

Act and 19 CFR 353.21.

Dated: July 28, 1995.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 95-19147 Filed 8-2-95; 8:45 am]

BILLING CODE 3510-DS-P