Certain Carbon Steel Butt-Weld Pipe Fittings From Japan; Negative Preliminary Determination of Circumvention of Antidumping Duty Order

SUMMARY: On March 22, 1994, the Department of Commerce (the Department)

received a request for a circumvention inquiry on the antidumping duty

order on certain carbon steel butt-weld pipe fittings (butt-weld pipe

fittings) from Japan, with respect to imports of Awaji Sangyo

(Thailand) Co., Ltd. (AST). Pursuant to that request, the Department

initiated a circumvention inquiry on October 31, 1994 (59 FR 54433).

We preliminarily determine that AST is not circumventing the

antidumping duty order on butt-weld pipe fittings from Japan.

Interested parties are invited to comment on this preliminary

determination.

EFFECTIVE DATE: September 20, 1995.

FOR FURTHER INFORMATION CONTACT: Donald Little or Maureen Flannery,

Office of Antidumping Compliance, Import Administration, International

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

Constitution Avenue, N.W., Washington D.C. 20230; telephone (202) 482-

4733.

Applicable Statute and Regulations: Unless otherwise stated, all

citations to the statute and the Department's regulations are in

reference to the provisions as they existed on December 31, 1994.

SUPPLEMENTARY INFORMATION:

Background

On March 22, 1994, the Department received a petition from the U.S.

Fittings Group (the petitioner) requesting that the Department conduct

a circumvention inquiry on the antidumping duty order on certain carbon

steel butt-weld pipe fittings from Japan (52 FR 4167 (February 10,

1987)). The petitioner is an ad hoc trade association of domestic

producers of butt-weld pipe fittings whose members currently consist of

Hackney, Inc., Ladish Co., Inc., Mill Iron Works, Inc., Steel Forgings,

Inc., and Tube Forgings of America, Inc.

The petitioner alleged that unfinished pipe fittings from Japan are

being finished in Thailand by AST, and thereafter imported into the

United States free of any antidumping duties. The Department initiated

a circumvention inquiry on October 31, 1994 (59 FR 54433).

Scope of the Circumvention Inquiry

The products covered by this inquiry are certain carbon steel butt-

weld type pipe fittings, other than couplings, under 14 inches in

inside diameter, whether finished or unfinished, that have been formed

in the shape of elbows, tees, reducers, caps, etc., and, if forged,

have been advanced after forging. These advancements may include any

one or more of the following: coining, heat treatment, shot blasting,

grinding, die stamping or painting. These fittings are currently

provided for under item 7307.93.30

Induction pipe bends classifiable under item 7307.93.30 which have

at one or both ends tangents that equal or exceed 12 inches in length

are excluded from the scope of this inquiry.

The inquiry covers one manufacturer/exporter of butt-weld pipe

fittings, AST. The period of inquiry is October 1, 1993 through

September 30, 1994.

Case History

The Department sent an anti-circumvention questionnaire to AST on

January 3, 1995. On January 9, 1995, AST replied that it had not sold

or exported any butt-weld pipe fittings to the United States

manufactured from Japanese unfinished butt-weld pipe fittings during

the period for which the Department requested such information, or

subsequent to that period. AST requested that the Department therefore

terminate the inquiry.

In submissions of January 17, 1995, and February 3, 1995,

petitioner argued that the Department should change the period of

inquiry to January 1991 through August 1993, so as to include the time

frame from which the evidence in the anti-circumvention petition was

drawn. Petitioner also claimed that, since the Department did not

initiate the inquiry until approximately seven months after the

petition was filed, AST had ample opportunity to change its business

practices in response to the petition, and the period after the date of

the petition is therefore inherently unrepresentative.

On January 20, 1995, AST submitted additional comments and

additional support for its request to terminate the inquiry. AST stated

that it had not altered its behavior as a result of the anti-

circumvention petition. AST stated that it had not exported any butt-

weld pipe fittings to the United States manufactured from Japanese

unfinished butt-weld pipe fittings since the period the Department

reviewed in the circumvention inquiry regarding the antidumping duty

order on carbon steel butt-weld pipe fittings from the People's

Republic of China (PRC) (which ended August 31, 1993).

Negative Preliminary Determination of Circumvention Inquiry

Because record evidence concerning AST's production capabilities

during the period of inquiry supports AST's assertion that it did not

sell or export any butt-weld pipe fittings to the United States

manufactured from Japanese unfinished butt-weld pipe fittings during

the period of this circumvention inquiry and because evidence indicates

that this fact was not in any way influenced by the filing of a request

to conduct this inquiry, the Department preliminarily determines that

extension of the period of inquiry is unwarranted and that no

circumvention of the antidumping duty order is occurring within the

meaning of section 781(b) of the Tariff Act.

Any interested party may request a hearing within ten days of

publication of this notice. Any hearing, if requested, will be held

approximately 44 days after the publication of this notice. Interested

parties may submit written comments (case brief) within 30 days of the

date of publication of this notice. Rebuttal

[[Page 48687]]

comments (rebuttal briefs), which must be limited to issues raised in

the case briefs, may be filed not later than 37 days after the date of

publication. The Department will publish its final determination of

this circumvention inquiry, including the results of its analysis of

issues raised in any such written comments.

This preliminary negative determination of circumvention is in

accordance with section 781(b) of the Tariff Act (19 U.S.C. 1677j(b))

and 19 C.F.R. 353.29(f).

September 13, 1995.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 95-23335 Filed 9-19-95; 8:45 am]

BILLING CODE 3510-DS-P