Certain Circular Welded Carbon Steel Pipes and Tubes From Thailand; Preliminary Results of Countervailing Duty Administrative Review

DEPARTMENT OF COMMERCE

[C-549-501]

Certain Circular Welded Carbon Steel Pipes and Tubes From

Thailand; Preliminary Results of Countervailing Duty Administrative

Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of Preliminary Results of Countervailing Duty

Administrative Review.

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

SUMMARY: The countervailing duty order on certain circular welded

carbon steel pipes and tubes from Thailand was revoked effective

January 1, 1995, pursuant to section 753 of the Tariff Act of 1930, as

amended by the Uruguay Round Agreements Act (the Act) (60 FR 40568).

The Department of Commerce (the Department) is conducting an

administrative review of this order to determine the appropriate

assessment rate for entries made during the last review period prior to

the revocation of the order (January 1, 1994, through December 31,

1994). We preliminarily determine the net subsidy to be de minimis or

zero for all companies for the period January 1, 1994 through December

31, 1994 (see ``Preliminary Results of Review'' section). If the final

results of this review remain the same as these preliminary results,

the Department intends to instruct the U.S. Customs Service to

liquidate, without regard to countervailing duties, shipments of the

subject merchandise from all companies exported on or after January 1,

1994 and entered on or before December 31, 1994. Because this order has

been revoked, the Department will not issue further instructions with

respect to cash deposits of estimated countervailing duties.

EFFECTIVE DATE: May 20, 1996.

[[Page 25206]]

FOR FURTHER INFORMATION CONTACT: Cameron Cardozo or Kelly Parkhill,

Office of Countervailing Compliance, Import Administration,

International Trade Administration, U.S. Department of Commerce, Room

B099, 14th Street and Constitution Avenue, N.W., Washington, DC 20230;

telephone (202) 482-1503 or 482-4126, respectively.

SUPPLEMENTARY INFORMATION:

Background

On August 14, 1985, the Department published in the Federal

Register (50 FR 32751) the countervailing duty order on certain

circular welded carbon steel pipes and tubes from Thailand. On August

1, 1995, the Department published a notice of ``Opportunity to Request

an Administrative Review'' (60 FR 39151) of this countervailing duty

order. We received a timely request for review from Saha Thai Steel

Pipe Co., Ltd. (Saha Thai). In accordance with section 355.22 of the

Department's Interim Regulations, this review covers only those

producers or exporters of the subject merchandise for which a review

was specifically requested (see Antidumping and Countervailing Duties:

Interim Regulations; Request for Comments, 60 FR 25130 (May 11, 1995)

(Interim Regulations). A review was requested for Saha Thai. However,

Saha Thai is affiliated with SAF Pipe Export Co., Ltd. (SAF), an export

trading company that began operations in 1993. All pipe exported by SAF

is produced by Saha Thai. Because these two companies are affiliated,

we are treating them as one corporate entity for purposes of our

calculations. Therefore, this review covers the following companies:

Saha Thai/SAF.

On November 22, 1995, we extended the period for completion of the

preliminary and final results pursuant to section 751(a)(3) of the

Tariff Act of 1930, as amended. See Extension of the Time Limit for

Certain Countervailing Duty Administrative Reviews, 60 FR 55699. As

explained in the memoranda from the Assistant Secretary for Import

Administration dated November 22, 1995, and January 11, 1996, all

deadlines were further extended to take into account the partial

shutdowns of the Federal Government from November 15 through November

21, 1995, and December 15, 1995, through January 6, 1996. Therefore,

the deadline for these preliminary results is no later than May 30,

1996, and the deadline for the final results of this review is no later

than 180 days from the publication of these preliminary results.

Applicable Statute and Regulations

Unless otherwise indicated, all citations to the statute are

references to the provisions of the Act in effect as of January 1,

1995. The Department is conducting this administrative review in

accordance with section 751(a) of the Act. References to the

Countervailing Duties; Notice of Proposed Rulemaking and Request for

Public Comments, 54 FR 23366 (May 31, 1989) (Proposed Regulations), are

provided solely for further explanation of the Department's

countervailing duty practice. Although the Department has withdrawn the

particular rulemaking proceeding pursuant to which the Proposed

Regulations were issued, the subject matter of these regulations is

being considered in connection with an ongoing rulemaking proceeding

which, among other things, is intended to conform the Department's

regulations to the Uruguay Round Agreements Act (URAA). See 60 FR 80

(January 3, 1995).

Scope of Review

On March 29, 1994, the Department clarified the Harmonized Tariff

Schedule (HTS) numbers that were applicable to the subject merchandise

(see Memorandum to Susan Esserman from Susan Kuhbach, available in the

Central Records Unit, Room B099, Main Commerce Building). This

clarification was necessary because of annual changes in the HTS. The

scope now reads:

Imports covered in this review are shipments of circular welded

carbon steel pipes and tubes (pipes and tubes) with an outside diameter

of 0.375 inch or more but not over 16 inches, of any wall thickness.

These products, commonly referred to in the industry as standard pipe

or structural tubing, are produced to various ASTM specifications, most

notably A-120, A-53 and A-135. During the review period, this

merchandise was classified under item numbers 7306.30.10 and 7306.30.50

of the HTS. The HTS numbers are provided for convenience and Customs

purposes. The written description remains dispositive.

Analysis of Programs

I. Programs Preliminarily Determined To Be Not Used

We examined the following programs and preliminarily determine

based on the questionnaire responses filed by the government of

Thailand and Saha Thai/SAF that Saha Thai/SAF did not apply for or

receive benefits under these programs during the review period.

A. Export Packing Credit

B. Tax Certificates for Exporters

C. Electricity Discounts for Exporters

D. Tax and Duty Exemptions Under Section 28 of the Investment

Promotion Act

E. Repurchase of Industrial Bills

F. Export Processing Zones

G. International Trade Promotion Fund/Export Promotion Fund

H. Reduced Business Taxes for Producers of Intermediate Goods for

Export Industries

I. Additional Incentives under the IPA.

Preliminary Results of Review

For the period of January 1, 1994, through December 31, 1994, we

preliminarily determine the net subsidy to be zero for Saha Thai/SAF.

In accordance with the Act, any rate less than 0.5 percent ad valorem

in an administrative review is de minimis.

The URAA replaced the general rule in favor of a country-wide rate

with a general rule in favor of individual rates for investigated and

reviewed companies. The procedures for countervailing duty cases are

now essentially the same as those in antidumping cases, except as

provided for in section 777(e)(2)(B) of the Act. Requests for

administrative reviews must now specify the companies to be reviewed.

See 19 CFR Sec. 355.22(a). The requested review will normally cover

only those companies specifically named. Pursuant to 19 CFR

Sec. 355.22(g), for all companies for which a review was not requested,

duties must be assessed at the cash deposit rate previously ordered.

Accordingly, for the period January 1 through December 31, 1994, the

assessment rates applicable to all non-reviewed companies covered by

this order are the cash deposit rates in effect at the time of entry.

If the final results of this review remain the same as these

preliminary results, the Department intends to instruct the Customs to

liquidate, without regard to countervailing duties, all shipments of

the subject merchandise from Saha Thai/SAF exported on or after January

1, 1994, and entered on or before December 31, 1994.

This countervailing duty order was subject to section 753 of the

Act. See, Countervailing Duty Order; Opportunity to Request a Section

753 Injury Investigation, 60 FR 27,963 (May 26, 1995). Because no

domestic interested parties exercised their right under section 753(a)

of the Act to request an injury investigation, the International Trade

Commission made a negative injury determination with respect to this

order, pursuant to section 753(b)(4) of the Act. As a result, the

Department

[[Page 25207]]

revoked this countervailing duty order, effective January 1, 1995,

pursuant to section 753(b)(3)(B) of the Act. Revocation of

Countervailing Duty Orders, 60 FR 40,568 (August 9, 1995). Accordingly,

the Department will not issue further instructions with respect to cash

deposits of estimated countervailing duties.

Public Comment

Interested parties may request a hearing not later than 10 days

after the date of publication of this written notice. Interested

parties may submit written arguments in case briefs on these

preliminary results within 30 days of the date of publication. Rebuttal

briefs, limited to arguments raised in case briefs, may be submitted

seven days after the time limit for filing the case brief. Parties who

submit argument in this proceeding are requested to submit with the

argument (1) a statement of the issue and (2) a brief summary of the

argument. Any hearing, if requested, will be held seven days after the

scheduled date for submission of rebuttal briefs. Copies of case briefs

and rebuttal briefs must be served on interested parties in accordance

with 19 CFR Sec. 355.38(e).

Representatives of parties to the proceeding may request disclosure

of proprietary information under administrative protective order no

later than 10 days after the representative's client or employer

becomes a party to the proceeding, but in no event later than the date

the case briefs, under 19 CFR Sec. 355.38(c), are due. The Department

will publish the final results of this administrative review including

the results of its analysis of issues raised in any case or rebuttal

brief or at a hearing.

This administrative review and notice are in accordance with

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

Dated: May 13, 1996.

Paul L. Joffe,

Acting Assistant Secretary for Import Administration.

[FR Doc. 96-12516 Filed 5-17-96; 8:45 am]

BILLING CODE 3510-DS-P