Oil Country Tubular Goods From Argentina; Final Results of Countervailing Duty Administrative Review

DEPARTMENT OF COMMERCE

International Trade Administration

[C-357-403]

Oil Country Tubular Goods From Argentina; Final Results of

Countervailing Duty Administrative Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of Final Results of Countervailing Duty Administrative

Review

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SUMMARY: On June 13, 1997, the Department of Commerce (the Department)

published in the Federal Register the preliminary results of its 1991

administrative review of the countervailing duty order on oil country

tubular goods (OCTG) from Argentina. We have now completed this review

and determine the total net subsidy to be 0.49 percent ad valorem,

which is de minimis. For further information, see the Final Results of

Review section of this notice.

EFFECTIVE DATE: October 27, 1997.

FOR FURTHER INFORMATION CONTACT: Richard Herring, Office of CVD/AD

Enforcement VI, Import Administration, International Trade

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

Constitution Avenue, N.W., Washington, D.C. 20230; Telephone: (202)

482-4149.

SUPPLEMENTARY INFORMATION:

Background

On June 13, 1997, the Department published in the Federal Register

(62 FR 32307) the preliminary results of its 1991 administrative review

of the countervailing duty order on OCTG from Argentina (49 FR 46564;

November 27, 1984). The Department has now completed this

administrative review in accordance with section 751 of the Tariff Act

of 1930, as amended (the Act). This review involves one producer/

exporter, Siderca, which accounts for all exports of the subject

merchandise during the review period and 19 programs.

We invited interested parties to comment on the preliminary

results. On July 14, 1997, a case brief was submitted by Siderca.

On August 1, 1997, the Department published in the Federal Register

the final results of changed circumstances countervailing duty reviews

covering the orders on leather, wool, oil country tubular goods, and

cold-rolled steel from Argentina (see Leather From

[[Page 55590]]

Argentina, Wool From Argentina, Oil Country Tubular Goods From

Argentina, and Carbon Steel Cold-Rolled Flat Products From Argentina;

Final Results of Changed Circumstances Countervailing Duty Reviews (62

FR 41361)). In these changed circumstances reviews, the Department

determined that, based upon the ruling of the U.S. Court of Appeals for

the Federal Circuit in Ceramica Regiomontana v. United States, 64 F.3d

1579, 1582 (Fed. Cir. 1995), it does not have the authority to assess

countervailing duties on entries of merchandise covered by this order

occurring on or after September 20, 1991. As a result, the

countervailing duty order on OCTG was revoked effective September 20,

1991. Therefore, the results of this administrative review will only

apply to entries of the subject merchandise made between January 1,

1991 and September 19, 1991. (See Final Results of Review section of

this notice).

Applicable Statute

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 Review

Imports covered by this review are shipments of Argentine oil

country tubular goods. These products include finished and unfinished

oil country tubular goods, which are hollow steel products of circular

cross section intended for use in the drilling of oil or gas, and oil

well casing, tubing and drill pipe of carbon or alloy steel, whether

welded or seamless, manufactured to either American Petroleum Institute

(API) or proprietary specifications. During the review period this

merchandise was classifiable under item numbers 7304.20.20, 7304.20.40,

7304.20.50, 7304.20.60, 7304.20.70, 7304.20.80, 7304.39.00, 7304.51.50,

7304.59.60, 7304.59.80, 7304.90.70, 7305.20.40, 7305.20.60, 7305.20.80,

7305.31.40, 7305.31.60, 7305.39.10, 7305.39.50, 7305.90.10, 7305.90.50,

7306.20.20, 7306.20.30, 7306.20.40, 7306.20.60, 7306.20.80, 7306.30.50,

7306.50.50, 7306.60.70, and 7306.90.10 of the Harmonized Tariff

Schedule (HTS). The HTS numbers are provided for convenience and

Customs purposes. The written description of the scope remains

dispositive.

Calculation Methodology for Assessment and Cash Deposit Purposes

Because Siderca accounted for virtually all exports of OCTG from

Argentina during the period of review, the subsidy calculated for

Siderca constitutes the country-wide rate.

Analysis of Programs

I. Programs Conferring Subsidies

A. Programs Previously Determined To Confer Subsidies

1. Government Counterguarantees. In the preliminary results, we

found that this program conferred countervailable benefits on the

subject merchandise. We did not receive any comments on this program

from the interested parties, and our review of the record has not led

us to change our findings from the preliminary results. Accordingly,

the net subsidy for this program is:

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Rate

Manufacturer/exporter percent

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Program Rate.................................................. 0.05

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2. Pre-shipment Export Financing. In the preliminary results, we

found that this program conferred countervailable benefits on the

subject merchandise. We did not receive any comments on this program

from the interested parties, and our review of the record has not led

us to change our findings from the preliminary results. Accordingly,

the net subsidy for this program is:

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

Rate

Manufacturer/exporter percent

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Program Rate.................................................. 0.18

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3. Rebate of Indirect Taxes (Reembolso/Reintegro). In the

preliminary results, we found that there was no benefit from this

program during the review period. Our analysis of the comments

submitted by the interested parties, summarized below, has not led us

to change our findings from the preliminary results.

B. New Program Found To Confer Subsidies Preferential Electricity

Tariff Rates

In the preliminary results, we found that this program conferred

countervailable benefits on the subject merchandise. We did not receive

any comments on this program from the interested parties, and our

review of the record has not led us to change our findings from the

preliminary results. Accordingly, the net subsidy for this program is:

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

Rate

Manufacturer/exporter percent

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Program rate.................................................. 0.26

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II. Program Found Not To Confer Subsidies

In the preliminary results, we found the following program to be

non-countervailable:

Preferential Natural Gas Tariffs

We did not receive any comments on this program from the interested

parties, and our review of the record has not led us to change our

findings from the preliminary results.

III. Programs Found To Be Not Used

In the preliminary results, we found that the producers and/or

exporters of the subject merchandise did not apply for or receive

benefits under the following programs:

1. Medium-And Long-Term Loans

2. Capital Grants

3. Income and Capital Tax Exemptions

4. Government Trade Promotion Programs

5. Exemption from Stamp Taxes Under Decree 186/74

6. Incentives for Trade (Stamp Tax Exemption Under Decree 716)

7. Incentive for Export

8. Export Financing Under OPRAC 1, Circular RF-21

9. Pre-Financing of Exports Under Circular RF-153

10. Loan Guarantees

11. Post-Export Financing Under OPRAC 1-9

12. Debt Forgiveness

13. Tax Deduction Under Decree 173/85

We did not receive any comments on these programs from the

interested parties, and our review of the record has not led us to

change our findings from the preliminary results.

IV. Program Found Not To Exist

In the preliminary results, we found the following program not to

exist:

Tax Concessions for the Steel Industry

We did not receive any comments on this program from the interested

parties, and our review of the record has not led us to change our

findings from the preliminary results.

Analysis of Comments Received

Comment

The respondent argues that, in calculating the allowable tax rebate

under the Reembolso/Reintegro program, the Department failed to exclude

the taxes on gas used in the direct reduction process. It claims that,

[[Page 55591]]

while the Department correctly recognized in its preliminary

determination and supporting documents that Siderca consumes gas at its

production plant for general use in the plant and for use in the direct

reduction of iron ore, the Commerce Department incorrectly excluded the

taxes on the portion of the gas used for the direct reduction process.

This, according to the respondent, is contrary to the Department's

finding in the previous administrative reviews.

Department's Position

We determined that this program did not provide a countervailable

benefit during this review period. Thus, the issue of whether the

Department should exclude taxes on the portion of gas that Siderca used

for the direct reduction process would have no impact on the

Department's determination. As such, the issue is moot.

Final Results of Review

As discussed above in the Background section , the Department has

revoked this countervailing duty order on OCTG effective September 20,

1991. Therefore, the results of this administrative review will only

apply to entries of the subject merchandise made between January 1,

1991 and September 19, 1991. Since the net subsidy of 0.49 percent ad

valorem for this review is de minimis (see 19 CFR 355.7), the

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

regard to countervailing duties, all entries of subject merchandise

made between January 1, 1991 and September 19, 1991. Separate

instructions regarding entries made on or after September 20, 1991 have

already been sent to Customs. Because this countervailing duty order

has been revoked, no further instructions will be sent to Customs

regarding cash deposits.

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 CFR 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: October 16, 1997.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

[FR Doc. 97-28309 Filed 10-24-97; 8:45 am]

BILLING CODE 3510-DS-P