Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination: Oil Country Tubular Goods From Japan

DEPARTMENT OF COMMERCE

[A-588-835]

Preliminary Determination of Sales at Less Than Fair Value and

Postponement of Final Determination: Oil Country Tubular Goods From

Japan

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: February 2, 1995.

FOR FURTHER INFORMATION CONTACT: John Beck or Stuart Schaag, Office of

Antidumping Investigations, Import Administration, International Trade

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

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

482-3464 or (202) 482-0192, respectively.

Preliminary Determination

We preliminarily determine that oil country tubular goods (OCTG)

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

less than fair value, as provided in section 733(b) of the Tariff Act

of 1930, as amended (the Act) (19 U.S.C. 1673b).

Case History

Since the initiation of this investigation on July 20, 1994 (59 FR

37962, July 26, 1994), the following events have occurred.

On August 15, 1994, the U.S. International Trade Commission (ITC)

issued an affirmative preliminary determination.

In August 1994, the Department requested information regarding

manufacturers or exporters of the subject merchandise from the Japanese

Ministry of International Trade and Industry (MITI). MITI informed the

Department that Nippon Steel Corporation (Nippon) and Sumitomo Metal

Industries, Ltd. (Sumitomo) were the main exporters of the subject

merchandise, accounting for over 60 percent of Japanese exports to the

United States. On August 30, 1994, the Department selected Nippon and

Sumitomo as the mandatory respondents in this investigation. These two

companies account for at least 60 percent of exports of OCTG from Japan

during the period of investigation.

On August 31, 1994, the Import Administration's attache in Tokyo

informed us that Nippon and Sumitomo requested a questionnaire

presentation. This questionnaire presentation took place in September

1994, at the MITI office in Tokyo.

On September 21, 1994, Nippon and Sumitomo informed the Department

that, due to the complex and burdensome requirements of the

Department's questionnaire, they were withdrawing from the

investigation.

On November 10, 1994, Koppel Steel Corporation and U.S. Steel Group

(a unit of USX Corporation) (the petitioners), timely requested that

the Department postpone the preliminary determination, in accordance

with section 733(c)(1) of the Act (19 U.S.C. 1673b(c)(1)), and 19 CFR

353.15(c). We did so on November 15, 1994 (59 FR 60130, November 22,

1994).

On January 11, 1995, in accordance with 19 CFR 353.20(b), Sumitomo

requested that, due to the complex legal and factual issues in this

investigation, the Department postpone the final determination. Nippon

made a similar request on January 13, 1995.

Scope of Investigation

For purposes of this investigation, OCTG are hollow steel products

of circular cross-section, including oil well casing, tubing, and drill

pipe, of iron (other than cast iron) or steel (both carbon and alloy),

whether seamless or welded, whether or not conforming to American

Petroleum Institute (API) or non-API specifications, whether finished

or unfinished (including green tubes and limited service OCTG

products). This scope does not cover casing, tubing, or drill pipe

containing 10.5 percent or more of chromium. The OCTG subject to this

investigation are currently classified in the Harmonized Tariff

Schedule of the United States (HTSUS) under item numbers:

7304.20.10.00, 7304.20.10.10, 7304.20.10.20, 7304.20.10.30,

7304.20.10.40, 7304.20.10.50, 7304.20.10.60, 7304.20.10.80,

7304.20.20.00, 7304.20.20.10, 7304.20.20.20, 7304.20.20.30,

7304.20.20.40, 7304.20.20.50, 7304.20.20.60, 7304.20.20.80,

7304.20.30.00, 7304.20.30.10, 7304.20.30.20, 7304.20.30.30,

7304.20.30.40, 7304.20.30.50, 7304.20.30.60, 7304.20.30.80,

7304.20.40.00, 7304.20.40.10, 7304.20.40.20, 7304.20.40.30,

7304.20.40.40, 7304.20.40.50, 7304.20.40.60, 7304.20.40.80,

7304.20.50.10, 7304.20.50.15, 7304.20.50.30, 7304.20.50.45,

7304.20.50.50, 7304.20.50.60, 7304.20.50.75, 7304.20.60.10,

7304.20.60.15, 7304.20.60.30, 7304.20.60.45, 7304.20.60.50,

7304.20.60.60, 7304.20.60.75, 7304.20.70.00, 7304.20.80.00,

7304.20.80.30, 7304.20.80.45, 7304.20.80.60, 7305.20.20.00,

7305.20.40.00, 7305.20.60.00, 7305.20.80.00, 7306.20.10.30,

7306.20.10.90, 7306.20.20.00, 7306.20.30.00, 7306.20.40.00,

7306.20.60.10, 7306.20.60.50, 7306.20.80.10, and 7306.20.80.50

Although the HTSUS subheadings are provided for convenience and

customs purposes, our written description of the scope of this

investigation is dispositive.

Period of Investigation

The period of investigation (POI) is January 1, 1994, to June 30,

1994.

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.

[[Page 6507]]

Best Information Available

We have determined, in accordance with section 776(c) of the Act

(19 U.S.C. 1677e(c)), that the use of best information available (BIA)

is appropriate for sales of the subject merchandise in this

investigation. In deciding whether to use BIA, section 776(c) provides

that the Department shall use BIA when a respondent refuses to produce

information requested in a timely manner and in the form required. In

this case, exporters of OCTG from Japan declined to respond to our

requests for information.

In determining what to use as BIA, the Department follows a two-

tiered methodology, whereby the Department normally assigns lower

margins to those respondents who cooperate in an investigation, and

margins based on more adverse assumptions for those respondents who do

not cooperate in an investigation. Given that neither Nippon nor

Sumitomo responded to the Department's questionnaire, we find that they

have not cooperated in this investigation. In accordance with our BIA

methodology for uncooperative respondents, we have assigned these non-

responsive companies the highest margin alleged in the petition (see,

Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts

Thereof From the Federal Republic of Germany: Final Determination of

Sales at Less Than Fair Value (54 FR 18992, 19033, May 3, 1989)).

The Department's two-tier methodology for assigning BIA based on

the degree of the respondents' cooperation has been upheld by the U.S.

Court of Appeals for the Federal Circuit (see Allied-Signal Aerospace

Co. v. the United States, Slip Op. 93-1049 (Fed Cir. June 22, 1993);

see also Krupp Stahl AG. et. al. v. the United States, Slip Op. 93-84

(CIT May 26, 1993)).

Suspension of Liquidation

In accordance with section 733(d)(1) of the Act (19 U.S.C.

1673b(d)(1)), we are directing the Customs Service to suspend

liquidation of all entries of OCTG from Japan, as defined in the

``Scope of Investigation'' section of this notice, that are entered, or

withdrawn from warehouse, for consumption on or after the date of

publication of this notice in the Federal Register. The Customs Service

shall require a cash deposit or posting of a bond equal to the

estimated preliminary dumping margin, as shown below. The suspension of

liquidation will remain in effect until further notice.

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

Manufacturer/

Producer/

Weighted-Average Exporter

Margin

Percent

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

Nippon Steel Corporation................................. 44.20

Sumitomo Metal Industries, Ltd........................... 44.20

All Others............................................... 44.20

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

Postponement of Final Determination

As stated above, both Sumitomo and Nippon requested that the

Department postpone the final determination. We find no compelling

reason to deny these requests. Accordingly, we are postponing the date

of the final determination until not later than 135 days after the date

of publication of this notice in the Federal Register.

ITC Notification

In accordance with section 733(f) of the Act (19 U.S.C. 1673b(f)),

we have notified the ITC of our preliminary determination.

If our final determination is affirmative, the ITC will determine

whether these imports are materially injuring, or threaten material

injury to, the U.S. industry before the later of 120 days after the

date of this preliminary determination or 45 days after our final

determination.

Public Comment

In accordance with 19 CFR 353.38, case briefs or other written

comments in at least ten copies must be submitted to the Assistant

Secretary for Import Administration by no later than April 21, 1995,

and rebuttal briefs by no later that April 28, 1995. We request that

parties in this case provide an executive summary of no more than two

pages in conjunction with case briefs on the major issues to be

addressed. Further, briefs should contain a table of authorities.

Citations to Commerce determinations and court decisions should include

the page number where cited information appears. In preparing the

briefs, please begin each issue on a separate page. In accordance with

19 CFR 353.38(b), we will hold a public hearing, if requested, to give

interested parties an opportunity to comment on arguments raised in

case or rebuttal briefs. Tentatively, the hearing will be held on May

3, 1995, at 10:00 a.m. at the U.S. Department of Commerce, Room 1414,

14th Street and Constitution Avenue, N.W., Washington, D.C. 20230.

Parties should confirm by telephone, the time, date, and place of the

hearing 48 hours before the scheduled time.

Interested parties who wish to request a hearing must submit a

written request to the Assistant Secretary for Import Administration,

U.S. Department of Commerce, Room B-099, within ten days of the

publication of this notice in the Federal Register. Requests should

contain: (1) The party's name, address, and telephone number; (2) the

number of participants; and (3) a list of the issues to be discussed.

In accordance with 19 CFR 353.38(b), oral presentations will be limited

to issues raised in the briefs.

This notice is published pursuant to section 733(f) of the Act (19

U.S.C. 1673b(f)) and 19 CFR 353.15(a)(4).

Dated: January 25, 1995.

Paul L. Joffe,

Deputy Assistant Secretary for Import Administration.

[FR Doc. 95-2613 Filed 2-1-95; 8:45 am]

BILLING CODE 3510-DS-P