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

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URL: https://www.frixlaw.com/law-library/documents/fr%3A95-2613

## Record

- **Collection:** Federal Register
- **Document type:** Notice
- **Published:** February 2, 1995
- **Citation:** 60 FR 6506

## Text

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A95-2613. Public record. Not legal advice.