Notice of Final Determination of Sales at Less Than Fair Value: Certain Carbon Steel Butt-Weld Pipe Fittings From South Korea

DEPARTMENT OF COMMERCE.

International Trade Administration

[A-580-824]

Notice of Final Determination of Sales at Less Than Fair Value:

Certain Carbon Steel Butt-Weld Pipe Fittings From South Korea

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Peter Wilkniss, Office of

Countervailing 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-

0588.

Final Determination

The Department of Commerce (the Department) determines that certain

carbon steel butt-weld pipe fittings (``pipe fittings'') from South

Korea are being, or are likely to be, sold in the United States at less

than fair value, as provided in section 735 of the Tariff Act of 1930,

as amended (the Act) (19 U.S.C. 1673d). The estimated margins are shown

in the ``Suspension of Liquidation'' section of this notice.

Scope of Investigation

The merchandise covered by this investigation are certain carbon

steel butt-weld pipe fittings (``pipe fittings'') having an inside

diameter of less than fourteen inches (355 millimeters), imported in

either finished or unfinished condition. Pipe fittings are formed or

forged steel products used to join pipe sections in piping systems

where conditions require permanent welded connections, as distinguished

from fittings based on other methods of fastening (e.g., threaded,

grooved, or bolted fittings). Butt-Weld fittings come in a variety of

shapes which include ``elbows,'' ``tees,'' ``caps,'' and ``reducers.''

The edges of finished pipe fittings are beveled, so that when a fitting

is placed against the end of a pipe (the ends of which have also been

beveled), a shallow channel is created to accomodate the ``bead'' of

the weld which joins the fitting to the pipe. These pipe fittings are

currently classifiable under subheading 7307.93.3000 of the Harmonized

Tariff Schedule of the United States (``HTSUS'').

Although the HTSUS subheading is provided for convenience and

customs purposes, our written description of the scope of this

proceeding is dispositive.

Period of Investigation

The period of investigation (POI) is September 1, 1994, through

February 28, 1994.

Case History

Since the announcement of the preliminary determination on

September 27, 1994, the following events have occurred.

On October 4, 1994, we published the notice of preliminary

determination in the Federal Register (59 FR 50560).

On October 13, 1994, pursuant to section 353.20(b)(1) of the

Department's regulations, the Embassy of the Republic of Korea, on

behalf of the South Korean producers and exporters of pipe fittings,

requested that the final determination in this case be postponed. On

November 14, 1994, we published the postponement of final determination

in the Federal Register (59 FR 56461).

Petitioner was the only interested party to file a case brief in

this investigation. Petitioner did so on January 23, 1995.

Best Information Available

In accordance with section 776(c) of the Act, we have determined

that the [[Page 10552]] use of best information available (BIA) is

appropriate for Taekwang Bend Ind. Co., Inc. (Taekwang), the South

Korean company which accounts for more than 60 percent of all exports

of the subject merchandise to the U.S. during the POI. Because Taekwang

did not respond to the Department's questionnaire, we find that it did

not cooperate in this investigation.

Our BIA methodology for uncooperative respondents is to assign the

higher of the highest margin alleged in the petition or the highest

rate calculated for another respondent. Accordingly, as BIA, we are

assigning the highest margin among the margins alleged in the petition

and subsequent amendments to the petition, adjusted for methodological

errors as explained in the Department's initiation notice. See Final

Determination of Sales At Less Than Fair Value: Antifriction Bearings

(Other Than Tapered Roller Bearings) and Parts Thereof From the Federal

Republic of Germany (54 FR 18992, 19033, May 3, 1989). The Department's

methodology for assigning BIA has been upheld by the U.S. Court of

Appeals of the Federal Circuit. (see Allied Signal Aerospace Co. v.

United States, 996 F.2d 1185 (Fed. Cir. 1993)); see also Krupp Stahl,

AG et al. v. United States, 822 F. Supp. 789 (CIT 1993)). The assigned

BIA margin is the same margin that was assigned for the preliminary

determination.

Suspension of Liquidation

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

1673b(d)(1)), we are directing the U.S. Customs Service to continue to

suspend liquidation of all entries of pipe fittings from South Korea,

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 amount by which the foreign market value of the

subject merchandise exceeds the United States price as shown below. The

suspension of liquidation will remain in effect until further notice.

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

Weighted

average

Manufacturer/Producer/Exporter margin

percent

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

All Companies................................................ 207.89

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

International Trade Commission (ITC) Notification

In accordance with section 735(d) of the Act, we have notified the

ITC of our determination. As our final determination is affirmative,

the ITC will determine whether imports of the subject merchandise are

materially injuring, or threaten material injury to, the U.S. industry

within 45 days.

If the ITC determines that material injury or threat of material

injury does not exist, the proceedings will be terminated and all

securities posted as a result of the suspension of liquidation will be

refunded or cancelled. However, if the ITC determines that such injury

does exist, we will issue an antidumping duty order directing Customs

officers to assess an antidumping duty on pipe fittings from South

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

the date of suspension of liquidation.

Notification to Interested Parties

This notice serves as the only reminder to parties subject to

administrative protective order (APO) in this investigation of their

responsibility covering the return or destruction of proprietary

information disclosed under APO in accordance with 19 CFR 353.34(d).

Failure to comply is a violation of the APO.

This determination is published pursuant to section 735(d) of the

Act (19 U.S.C. 1673d(d)) and 19 CFR 353.20(a)(4).

Dated: February 16, 1995.

Barbara R. Stafford,

Acting Assistant Secretary for Import Administration.

[FR Doc. 95-4719 Filed 2-24-95; 8:45 am]

BILLING CODE 3510-DS-P