Carbon Steel Butt-Weld Pipe Fittings From Thailand; Final Results of Countervailing Duty Administrative Review

DEPARTMENT OF COMMERCE

[C-549-804]

Carbon Steel Butt-Weld Pipe Fittings From Thailand; Final Results

of Countervailing Duty Administrative Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

[[Page 4960]]

ACTION: Notice of Final Results of Countervailing Duty Administrative

Review.

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SUMMARY: On November 22, 1995, the Department of Commerce (the

Department) published in the Federal Register its preliminary results

of administrative review of the countervailing duty order on carbon

steel butt-weld pipe fittings from Thailand. The review covers the

period January 1, 1992 through December 31, 1992. We have completed

this review and determine the net subsidy to be de minimis. The

Department will instruct the U.S. Customs Service to liquidate, without

regard to countervailing duties, all shipments of the subject

merchandise from Thailand exported on or after January 1, 1992, and on

or before December 31, 1992.

EFFECTIVE DATE: February 9, 1996.

FOR FURTHER INFORMATION CONTACT: Brian Albright or Cameron Cardozo,

Office of Countervailing Compliance, Import Administration,

International Trade Administration, U.S. Department of Commerce, 14th

Street and Constitution Avenue, N.W., Washington, D.C. 20230;

telephone: (202) 482-2786.

SUPPLEMENTARY INFORMATION:

Background

On November 22, 1995, the Department published in the Federal

Register (60 FR 57849) the preliminary results of its administrative

review of the countervailing duty order on carbon steel butt-weld pipe

fittings from Thailand. The Department has now completed this

administrative review in accordance with section 751 of the Tariff Act

of 1930, as amended (the Act). We invited interested parties to comment

on the preliminary results. We received no comments. The review covers

the period January 1, 1992 through December 31, 1992. The review

involves two companies, Awaji Sangyo (Thailand) Co. (AST), and TTU

Industrial Corp. (TTU), which account for virtually all exports of the

subject merchandise from Thailand, and fifteen programs.

Applicable Statute and Regulations

The Department is conducting this administrative review in

accordance with section 751(a) of the Act. Unless otherwise indicated,

all citations to the statute and to the Department's regulations are in

reference to the provisions as they existed on December 31, 1994.

Scope of the Review

The merchandise subject to this review (hereinafter subject

merchandise) is certain carbon steel butt-weld pipe fittings, having an

inside diameter of less than 360 millimeters (fourteen inches),

imported in either finished or unfinished form. These formed or forged

pipe fittings are used to join sections in piping systems where

conditions require permanent, welded connections, as distinguished from

fittings based on other fastening methods (e.g., threaded, grooved, or

bolted fittings), as currently classifiable under the Harmonized Tariff

Schedule (HTS). The products covered in this review are provided for

under item number 7307.93.30 of the HTS. The HTS subheadings are

provided for convenience and Customs purposes; our written description

of the scope of this proceeding is dispositive.

Calculation Methodology for Assessment and Cash Deposit Purposes

We calculated the net subsidy on a country-wide basis by first

calculating the subsidy rate for each company subject to the

administrative review. We then weight-averaged the rate received by

each company using as the weight its share of total Thai exports to the

United States of subject merchandise, including all companies, even

those with de minimis and zero rates. We then summed the individual

companies' weight-averaged rates to determine the subsidy rate from all

programs benefitting exports of subject merchandise to the United

States.

Since the country-wide rate calculated using this methodology was

de minimis, as defined by 19 CFR Sec. 355.7(1994), no further

calculations were necessary.

Analysis of Programs

Based upon our analysis of the questionnaire response and

verification we determine the following:

I. Programs Conferring Subsidies

Tax Exemptions Under Section 31 of the 1977 Investment Promotions Act

(IPA)

In the preliminary results, we found that this program conferred

countervailable benefits on the subject merchandise. Since we received

no comments on our preliminary results, our findings remain unchanged

in these final results.

II. Programs Not Conferring Subsidies

Duty Drawback

In the preliminary results, we found that this program did not

confer countervailable benefits on the subject merchandise. Since we

received no comments on our preliminary results, our findings remain

unchanged in these final results.

III. Programs Found Not to be Used

In the preliminary results, we found that neither AST nor TTU

applied for or received benefits under the following programs during

the period of review (POR):

A. Tax Certificates for Exporters

B. Export Packing Credits

C. Tax and Duty Exemptions Under Section 28 of the (IPA)

D. Electricity Discounts for Exporters

E. Rediscount of Industrial Bills

F. International Trade Promotion Fund

G. Export Processing Zones

H. Reduced Business Taxes for Producers of Intermediate Goods for

Export Industries

I. Additional Incentives under the IPA

1. Goodwill and Royalties Tax Exemption

2. Tax Deduction of Foreign Marketing Expenses and Foreign Taxes

3. Exemption of Sales Taxes for Promoted Industries

4. Exemption on Export Duties and Business Taxes on Products

Produced or Assembled by Promoted Firms

5. Deduction from Assessable Income of an Amount Equal to 5% of the

Increase over the Previous Year of Income Derived from Exports

Since we received no comments on our preliminary results, our

findings remain unchanged in these final results.

Final Results of Review

For the period January 1, 1992 through December 31, 1992, we

determine the net subsidy to be 0.22 percent ad valorem for all

companies. In accordance with 19 CFR 355.7, any rate less than 0.5

percent ad valorem is de minimis.

The Department will instruct the Customs Service to liquidate,

without regard to countervailing duties, all shipments of the subject

merchandise from Thailand exported on or after January 1, 1992, and on

or before December 31, 1992.

This countervailing duty order was determined to be subject to

section 753 of the Act (as amended by the Uruguay Round Agreements Act

of 1994). 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

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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 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,

this notice assesses duties for the period of review and does not issue

further cash deposit instructions.

This notice serves as a reminder to parties subject to

administrative protective order (APO) of their responsibility

concerning the disposition of proprietary information disclosed under

APO in accordance with 19 C.F.R. 355.34(d). Timely written notification

of return/destruction of APO materials or conversion to judicial

protective order is hereby requested. Failure to comply with the

regulations and the terms of an APO is a sanctionable violation.

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 355.22.

Dated: January 31, 1996.

Susan G. Esserman,

Assistant Secretary for Import Administration

[FR Doc. 96-2912 Filed 2-8-96; 8:45 am]

BILLING CODE 3510-DS-P