Notice of Preliminary Determination of Sales at Less Than Fair Value: Oil Country Tubular Goods From Italy

DEPARTMENT OF COMMERCE

[A-475-816]

Notice of Preliminary Determination of Sales at Less Than Fair

Value: Oil Country Tubular Goods From Italy

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: February 2, 1995.

FOR FURTHER INFORMATION CONTACT: Bill Crow or Lisa Girardi, 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)

482-0116 or (202) 482-4105, respectively.

Preliminary Determination

We preliminarily determine that oil country tubular goods (OCTG)

from Italy 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 July 1994, the Department requested information regarding

manufacturers or exporters of the subject merchandise from the U.S.

Embassy in Rome. The Embassy informed the Department that Dalmine

S.p.A. (Dalmine) and Acciaierie Tubificio Arvedi S.p.A. (Arvedi) were

the main exporters of the subject merchandise.

On August 26, 1994, based on statements from the petitioners and

information from Metal Bulletin Books, Ltd., Iron and Steel Works of

the World (10th ed. 1991), the Department issued a full antidumping

questionnaire to Dalmine, and antidumping surveys to five other

potential respondents: Alessio Tubi S.p.A., Tubimar Ancona S.p.A., Seta

Tubi Srl, Arvedi, and General Sider Europa S.p.A. (General Sider). On

September 8, 1994, we received a response from Tubimar Ancona S.p.A.

stating that it did not export the subject merchandise during the POI.

On September 13, 1994, we received a similar response from Alessio Tubi

S.p.A. and a response from Seta Tubi Srl that it is no longer in

existence. On September 22, 1994, we received volume and value

information from Arvedi. We did not receive any response from General

Sider, although we confirmed with the express delivery service that

General Sider had received our survey on August 30, 1994 (see, the

September 30, 1994, memorandum from Krysten Jenci to the file). To

ensure that it understood our request for information, we sent General

Sider another survey, containing additional explanation, on October 7,

1994. We confirmed with the express delivery service that General Sider

received the survey on October 11, 1994 (see, the October 20, 1994,

memorandum from Richard W. Moreland to Barbara R. Stafford).

On October 7, 1994, Arvedi notified the Department that it would

not participate in the investigation. On October 20, 1994, after the

Department had still not received a response from General Sider, we

selected Dalmine, Arvedi, and General Sider as mandatory respondents in

this investigation. Based on information on the record, the Department

believes that these three companies account for at least 60 percent of

exports of OCTG from Italy during the period of investigation (see, the

October 3, 1994, memorandum from David L. Binder to Richard W. Moreland

and the October 20, 1994, memorandum from Richard W. Moreland to

Barbara R. Stafford).

On September 26, 1994, Dalmine submitted its response to section A

of our August 26, 1994, questionnaire. In this response, Dalmine

claimed that its home market was not viable, and that it should report

third country sales data as a basis for foreign market value (FMV). In

October 1994, Dalmine and the petitioners submitted comments on the

home market viability issue.

On November 4, 1994, the Department determined that the home market

was viable, and instructed Dalmine to report home market sales (see

November 4, 1994 memorandum from Richard W. Moreland to Barbara R.

Stafford). As a result of this decision, on November 30, 1994, Dalmine

informed the Department that it would no longer participate in this

investigation.

On November 10, 1994, North Star Steel Ohio (a division of North

Star Steel Company) (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 30,

1994).

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

[[Page 6516]]

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.

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, Dalmine and Arvedi chose not to participate in this

investigation, and General Sider did not 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. If the Department deems a respondent

to be non-cooperative, that respondent's preliminary margin for the

relevant class or kind of merchandise is the higher of either (1) The

highest margin in the petition, or (2) the highest calculated margin of

any respondent (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 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).)

In the present case, the mandatory respondents have refused to

cooperate with the Department's investigation. Therefore, in accordance

with our standard practice, the Department has assigned the highest

margin in the petition to all respondents.

Suspension of Liquidation

In accordance with section 733(d)(1) (19 U.S.C. 1673b(d)(1)) of the

Act, we are directing the Customs Service to suspend liquidation of all

entries of OCTG from Italy, 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.

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

Weighted-

average

Manufacturer/producer/exporter margin

percent

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

Dalmine S.p.A.............................................. 49.78

Acciaierie Tubificio Arvedi S.p.A.......................... 49.78

General Sider Europa S.p.A................................. 49.78

All others................................................. 49.78

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

ITC Notification

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

we have notified the ITC of our preliminary 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 March 1, 1995, and

rebuttal briefs by no later than March 8, 1995. 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 March

10, 1995, at 10:00 a.m. at the U.S. Department of Commerce, Room 3708,

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 26, 1995.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 95-2617 Filed 2-1-95; 8:45 am]

BILLING CODE 3510-DS-P