Oil Country Tubular Goods From Canada; Preliminary Results of Antidumping Duty Administrative Review

DEPARTMENT OF COMMERCE

International Trade Administration

[A-122-506]

Oil Country Tubular Goods From Canada; Preliminary Results of

Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of preliminary results of Antidumping Duty

Administrative Review.

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SUMMARY: In response to a request from the respondent, IPSCO Inc.

(IPSCO), the Department of Commerce (the Department) is conducting an

administrative review of the antidumping duty order on oil country

tubular goods (OCTG) from Canada. The review covers one manufacturer,

IPSCO, and exports of the subject merchandise to the United States

during the period June 1, 1993, through May 31, 1994.

We preliminary determine the dumping margin for IPSCO to be zero

percent during this period. Interested parties are invited to comment

on these preliminary results.

EFFECTIVE DATE: April 21, 1995.

FOR FURTHER INFORMATION CONTACT:

David Genovese or Joseph Hanley, Office of Antidumping Compliance,

Import Administration, International Trade Administration, U.S.

Department of Commerce, 14th Street and Constitution Avenue NW.,

Washington, DC 20230, telephone: (202) 482-5254.

SUPPLEMENTARY INFORMATION:

Background

On June 7, 1994, the Department published a notice of ``Opportunity

to Request an Administrative Review'' (59 FR 29411) of the antidumping

duty order on OCTG from Canada (51 FR 21782; June 16, 1986). On June

24, 1994, IPSCO requested an administrative review. The Department

initiated the review on July 15, 1994 (59 FR 36160), covering the

period June 1, 1993, through May 31, 1994. The Department is conducting

this review in accordance with section 751 of the Tariff Act of 1930,

as amended (the Act).

Scope of the Review

The products covered by this review include shipments of OCTG from

Canada. This includes American Petroleum Institute (API) specification

OCTG and all other pipe with the following characteristics except

entries which the Department determined through its end-use

certification procedure were not used in OCTG

[[Page 19884]] applications: Length of at least 16 feet; outside

diameter of standard sizes published in the API or proprietary

specifications for OCTG with tolerances of plus \1/8\ inch for

diameters less than or equal to 8\5/8\ inches and plus \1/4\ inch for

diameters greater than 8\5/8\ inches, minimum wall thickness as

identified for a given outer diameter as published in the API or

proprietary specifications for OCTG; a minimum of 40,000 PSI yield

strength and a minimum 60,000 PSI tensile strength; and if with seams,

must be electric resistance welded. Furthermore, imports covered by

this review include OCTG with non-standard size wall thickness greater

than the minimum identified for a given outer diameter as published in

the API or proprietary specifications for OCTG, with surface scabs or

slivers, irregularly cut ends, ID or OD weld flash, or open seams; OCTG

may be bent, flattened or oval, and may lack certification because the

pipe has not been mechanically tested or has failed those tests.

This merchandise is currently classifiable under the Harmonized

Tariff Schedules (HTS) item numbers 7304.20, 7305.20, and 7306.20. The

HTS item numbers are provided for convenience and U.S. Customs

purposes. The written description remains dispositive.

United States Price

In calculating United States Price (USP), the Department used

purchase price, as defined in section 772(b) of the Act. The Department

based USP on the packed, delivered price to unrelated purchasers.

The Department made deductions, where appropriate, for foreign

inland freight, U.S. duties, and U.S. brokerage fees. Additionally, in

accordance with the Court of International Trade's decision in Federal-

Mogul Corp. and The Torrington Co. v. United States, 834 F. Supp. 1391

(CIT 1993) (Federal Mogul), we adjusted USP for taxes that would have

been assessed on the merchandise had it been sold in the home market.

Where applicable, we also deducted from the USP the portion of the USP

tax adjustment attributable to expenses included in the U.S. tax base.

No other adjustments were claimed or allowed.

Foreign Market Value

In calculating foreign market value (FMV), we used home market

price, as defined in section 773(a) of the Act, since quantities of

merchandise sufficient to provide a reasonable basis for comparison

were sold in the home market to provide a reasonable basis for

comparison. Home market price was based on the FOB stockyard or FOB

mill price to unrelated purchasers in the home market.

The Department made adjustments, where applicable, for discounts,

rebates, warranty and servicing expenses, royalty fees, fees for

outside inspectors, and for differences in packing material and credit.

The Department also made an adjustment to FMV for imputed consumption

taxes in accordance with the aforementioned Federal-Mogul decision.

No other adjustments were claimed or allowed.

Preliminary Results of Review

As a result of our comparison of USP to FMV, the Department

preliminary determines that no margin exists for IPSCO for the period

June 1, 1993, through May 31, 1994.

Interested parties may request disclosure within 5 days of the date

of publication of this notice and may request a hearing within 10 days

of publication. Any hearing, if requested, will be held 44 days after

the date of publication of this notice, or the first workday

thereafter. Case briefs and written comments from interested parties

may be submitted not later than 30 days after the date of publication.

Rebuttal briefs and rebuttals to written comments, limited to the

issues raised in the case briefs and comments, may be filed not later

than 37 days after the date of publication. The Department will publish

the final results of this administrative review, including the results

of its analysis of any such written comments or hearing.

The Department shall determine, and U.S. Customs shall assess,

antidumping duties on all appropriate entries. The Department will

issue appraisement instructions directly to U.S. Customs.

Furthermore, the following deposit requirements will be effective

for all shipments of the subject merchandise, entered or withdrawn from

warehouse, for consumption on or after the publication date of the

final results of this administrative review, as provided by section

751(a)(1) of the Act: (1) The cash deposit rate for the reviewed

company will be that rate established in the final results of this

administrative review; (2) the cash deposit rate for merchandise

exported by manufacturers or exporters not covered in this review but

covered in a previous review or the original less-than-fair-value

(LTFV) investigation, will continue to be the rate published in the

most recent final results or determination for which the manufacturer

or exporter received a company-specific rate; (3) if the exporter is

not a firm covered in this review, earlier reviews, or the original

investigation, but the manufacturer is, the cash deposit rate will be

that established for the manufacturer of the merchandise in these final

results of review, earlier reviews, or the original investigation,

whichever is the most recent; and (4) the ``all others'' rate, as

determined in the LTFV investigation, will be 16.65 percent.

These deposit requirements, when imposed, shall remain in effect

until publication of the final results of the next administrative

review.

This notice serves as a preliminary reminder to importers of their

responsibility under 19 CFR 353.26 to file a certificate regarding the

reimbursement of antidumping duties prior to liquidation of the

relevant entries during the review period. Failure to comply with this

requirement could result in the Secretary's presumption that

reimbursement of antidumping duties occurred and the subsequent

assessment of double antidumping duties.

This administrative review and notice are in accordance with

section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)) and 19 CFR 353.22.

Dated: April 13, 1995.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 95-9938 Filed 4-20-95; 8:45 am]

BILLING CODE 3510-DS-P