Oil Country Tubular Goods From Canada; Preliminary Results of Antidumping Duty Administrative Review and Intent To Revoke Order (in Part)

DEPARTMENT OF COMMERCE

International Trade Administration

[A-122-506]

Oil Country Tubular Goods From Canada; Preliminary Results of

Antidumping Duty Administrative Review and Intent To Revoke Order (in

Part)

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of Preliminary Results of Antidumping Duty

Administrative Review and Intent to Revoke Order (in Part).

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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. This review covers one manufacturer/

exporter, IPSCO, and the period June 1, 1994 through May 31, 1995.

We preliminarily determine the dumping margin for IPSCO to be zero

percent during the period June 1, 1994, through May 31, 1995. In

accordance with section 353.25 of the Department's regulations, we

intend to revoke the antidumping duty order with respect to IPSCO

because we have reason to believe that IPSCO has sold the merchandise

at not less than normal value (NV) for a period of at least three

consecutive years and is not likely to sell the subject merchandise at

less than NV in the future. Interested parties are invited to comment

on these preliminary results. 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.

EFFECTIVE DATE: July 19, 1996.

FOR FURTHER INFORMATION CONTACT: David Genovese or Zev Primor, Office

of Antidumping Compliance, Import Administration, International Trade

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

Constitution Avenue, N.W., Washington, D.C. 20230; telephone (202) 482-

5253.

SUPPLEMENTARY INFORMATION:

The Applicable Statute

Unless otherwise indicated, all citations to the statute are

references to the provisions effective January 1, 1995, the effective

date of the amendments made to the Tariff Act of 1930 (the Act) by the

Uruguay Rounds Agreements Act (URAA). In addition, unless otherwise

indicated, all citations to the Department's regulations are to the

current regulations, as amended by the interim regulations published in

the Federal Register on May 11, 1995 (60 FR 25130).

Background

The Department published an antidumping duty order on OCTG from

Canada on June 16, 1986 (51 FR 21782) and an amended order on August

19, 1986 (51 FR 29579). The Department published a notice of

``Opportunity To Request an Administrative Review'' of the antidumping

duty order for the 1994/1995 review period on June 6, 1995 (60 FR

29821). On June 21, 1995, IPSCO requested that the Department conduct

an administrative review of the antidumping duty order on OCTG from

Canada. We initiated the review on July 14, 1995 (60 FR 36260).

Due to the federal government shutdown and the necessity for

verification, the Department extended the time limits for the deadlines

for the preliminary and final results of review. See Antidumping Duty

Administrative Reviews; Time Limits, 61 FR 9676 (March 11, 1996).

The Department is now conducting this administrative review in

accordance with section 751 of the Act.

Intent To Revoke

In its submission of June 21, 1995, IPSCO requested, pursuant to 19

CFR 353.25(b), revocation of the order with respect to its sales of

OCTG. In accordance with 19 CFR 353.25(b), IPSCO submitted: (1) a

certification that it sold the subject merchandise at not less than

normal value (NV) during the relevant review period, and that in the

future it will not sell the subject merchandise at less than NV; and

(2) a statement that it agrees to the immediate reinstatement of the

order, as long as any producer or reseller is subject to the order, if

the Department concludes that IPSCO sold the subject merchandise at

less than NV subsequent to the revocation. Based on the preliminary

results in this review and the final results of the two preceding

reviews, IPSCO has demonstrated three consecutive years of sales at not

less than NV.

If the final results of this review demonstrate that IPSCO sold the

merchandise at not less than NV, and if the Department determines that

it is not likely that IPSCO will sell the subject merchandise at less

than NV in the future, we intend to revoke the order with respect to

merchandise produced and exported by IPSCO.

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 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

[[Page 37721]]

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.

Verification

In accordance with section 353.25(c)(2)(ii) of the Department's

regulations, we verified information provided by IPSCO using standard

verification procedures, including the examination of relevant sales

and financial records, and selection of original documentation

containing relevant information. Our verification results are outlined

in the public version of the verification report.

United States Price

We used export price (EP) as the basis for U.S. price (USP), as

defined in section 772(a) of the Act. IPSCO reported that EP was based

on the delivered price to unaffiliated purchasers in the United States.

We made deductions for freight from the plant to the customer, and U.S.

duty and brokerage charges, in accordance with section 772(c)(2)(A) of

the Act, because these expenses were incident to bringing the subject

merchandise from the original place of shipment in the exporting

country to the place of delivery in the United States. We also made a

deduction for early payment discounts. No other adjustments to the EP

were claimed or allowed.

Normal Value

We based NV on the price which the foreign like product is first

sold for consumption in the exporting country, in the usual commercial

quantities and in the ordinary course of trade, and to the extent

practicable, at the same level of trade as the export price, as defined

by section 773(a)(1)(B)(i) of the Act. The NV price was reported on a

Goods and Services Tax-exclusive basis. We reduced NV for home market

credit expense, in accordance with section 773(a)(6)(C)(iii), due to

differences in circumstances of sale. We also reduced NV by packing and

freight costs incurred in the home market, in accordance with sections

773(a)(6)(B)(i) and 773(a)(6)(B)(ii), respectively. In addition, we

increased NV for U.S. packing costs and U.S. credit expenses, in

accordance with sections 773(a)(6)(A) and 773(a)(6)(C)(iii) of the Act,

respectively. No other adjustments were claimed or allowed.

Preliminary Results

As a result of this review, we preliminarily determine that no

dumping margins exist for IPSCO for the period June 1, 1994, through

May 31, 1995.

Parties to this proceeding may request disclosure within five days

of publication of this notice and any interested party may request a

hearing within 10 days of publication. Any hearing, if requested, will

be held 44 days after the date of publication, or the first working day

thereafter. Interested parties may submit case briefs and/or written

comments no later than 30 days after the date of publication. Rebuttal

briefs and rebuttals to written comments, limited to issues raised in

such briefs or comments, may be filed no later than 37 days after the

date of publication. The Department will publish a notice of the final

results of the administrative review, which will include the results of

its analysis of issues raised in any such written comments or at the

hearing, within 120 days from the issuance of these preliminary

results.

The Department shall determine, and Customs shall assess,

antidumping duties on all appropriate entries. Individual differences

between USP and NV may vary from the percentages stated above. The

Department will issue appraisement instructions directly to Customs.

The final results of this review shall be the basis for the assessment

of antidumping duties on entries of merchandise covered by this review

and for future deposits of estimated duties.

Furthermore, the following deposit requirements will be effective

upon completion of the final results of this administrative review for

all shipments of OCTG from Canada 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 IPSCO will be the rate established

in the final results of this administrative review; (2) for merchandise

exported by manufacturers or exporters not covered in this review but

covered in the original less-than-fair-value (LTFV) investigation or a

previous review, the cash deposit will continue to be the most recent

rate published in the final determination or final results for which

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

the exporter is not a firm covered in this review, or the original

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

that established for the manufacturer of the merchandise in the final

results of this review, or the LTFV investigation; and (4) if neither

the exporter nor the manufacturer is a firm covered in this or any

previous review, the cash deposit rate will be 16.65 percent, the

``all-others'' rate established in the LTFV investigation.

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(b) to file a certificate regarding

the reimbursement of antidumping duties prior to liquidation of the

relevant entries during this 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.

Dated: July 12, 1996.

Robert S. LaRussa,

Acting Assistant Secretary for Import Administration.

[FR Doc. 96-18426 Filed 7-18-96; 8:45 am]

BILLING CODE 3510-DS-P