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

DEPARTMENT OF COMMERCE.

[A-307-812]

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

Certain Carbon Steel Butt-Weld Pipe Fittings From Venezuela

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Sue Strumbel, Office of Countervailing

Investigations, Import Administration, International Trade

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

Constitution Avenue, NW., Washington, DC. 20230; telephone (202) 482-

1442.

Final Determination

The Department of Commerce (the Department) determines that certain

carbon steel butt-weld pipe fittings (pipe fittings) are being, or are

likely to be, sold in the United States at less than fair value, as

provided in section 733 of the Tariff Act of 1930, as amended (the Act)

(19 U.S.C. 1673b). The estimated margins are shown in the ``Suspension

of Liquidation'' section of this notice.

Scope of the Investigation

The products covered by this investigation are certain carbon steel

butt-weld 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 accommodate 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

[[Page 10563]] 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 investigation is dispositive.

Period of Investigation

The period of investigation (``POI'') is September 1, 1993, through

February 28, 1994.

Case History

Since our preliminary determination (50 FR 50561, October 4, 1994)

the following events have occurred. On October 14, 1994 the respondents

requested a postponement of the final determination. This request was

granted (59 FR 56461, November 14, 1994), and the final was postponed

by the Department until no later than February 16, 1995. On January 23,

1995, both parties submitted case briefs. On January 23, 1995

petitioner submitted its rebuttal brief.

Best Information Available

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

that the use of best information available (BIA) is appropriate for all

companies. Given that neither of the two named companies responded to

the Department's questionnaire, we find that no respondents have

cooperated in this investigation.

The Department's usual practice under these circumstances would be

to assign respondents the highest margin alleged in the petition as

BIA. 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 19033, May 3,

1989). In this case, however, a fundamental flaw in the petition

calculation methodology has led the Department to reject the use of the

highest margin alleged in the petition as BIA. Unlike the other Certain

Carbon Steel Butt-Weld Pipe Fittings investigations, petitioner was

unable to obtain U.S. price quotes for purposes of the initiation.

Rather, U.S. price was based upon an average of U.S. Customs import

statistics which did not take into account the relationship between the

size of the fitting and its value per pound. Moreover, there is no

record information which would allow us to make this adjustment to USP.

Therefore, we have weight averaged the FMVs of all size fittings in the

petition, and compared that average FMV to the average customs U.S.

import value in the petition. This yields a single margin for use as

BIA of 203.63%. This margin will be assigned to each of the

respondents. (See, Memorandum on File Dated: February 16, 1995).

Suspension of Liquidation

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

Act, we are directing the U.S. Customs Service to continue to suspend

liquidation of all entries of certain carbon butt-weld pipe fittings

from Venezuela, 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 margin 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................................................ 203.63

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

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 certain carbon steel butt-

weld pipe fittings from Venezuela 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. 95-4722 Filed 2-24-95; 8:45 am]

BILLING CODE 3510-DS-P