Certain Circular Welded Non-Alloy Steel Pipe From Mexico; Initiation of Anticircumvention Inquiry on Antidumping Duty Order

DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-805]

Certain Circular Welded Non-Alloy Steel Pipe From Mexico;

Initiation of Anticircumvention Inquiry on Antidumping Duty Order

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of initiation of anticircumvention inquiry.

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SUMMARY: In response to a request from petitioners in this case 1,

the Department of Commerce (the Department) is initiating an

anticircumvention inquiry to determine whether imports of (i) pipe

certified to the American Petroleum Institute (API) 5L line pipe

specifications (API 5L or line pipe) and (ii) pipe certified to both

the API 5L line pipe specifications and the less stringent American

Society for Testing and Materials (ASTM) A-53 standard pipe

specifications (dual certified pipe 2), falling within the

physical dimensions outlined in the scope of the order, are

circumventing the antidumping duty order on certain welded non-alloy

carbon steel pipe from Mexico (57 FR 49453, November 2, 1992).

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\1\ Petitioners are: Allied Tube & Conduit Corp., Sawhill

Tubular Division of Tex-Tube Co., Century Tube Corp., Laclede Steel

Co., LTV Tubular Products Co.; Sharon Tube Co., Western Tube &

Conduit Co., Wheatland Tube Co., and CSI Tubular Products, Inc.

\2\ This merchandise, sometimes referred to as ``dual-

stenciled,'' may also include ``multiple-stenciled'' pipe.

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EFFECTIVE DATE: January 10, 1997.

FOR FURTHER INFORMATION CONTACT: Robert M. James at (202) 482-5222 or

John Kugelman at (202) 482-0649, Antidumping and Countervailing Duty

Enforcement Group III, Import Administration, International Trade

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

Constitution Avenue, NW, Washington, DC, 20230.

APPLICABLE STATUTE AND REGULATIONS: Unless otherwise indicated, all

citations to the Tariff Act of 1930, as amended (the Tariff Act), and

to the Department's regulations are references to the provisions as

they existed on December 31, 1994.

SUPPLEMENTARY INFORMATION:

Background

On April 23, 1993, petitioners requested that the Department

conduct an anticircumvention inquiry pursuant to section 781(c) of the

Tariff Act covering imports of API 5L line pipe and dual-certified pipe

from Mexico. Petitioners alleged that, following publication of the

antidumping duty order, exporters of standard pipe from Mexico began

circumventing the order by having pipe intended for use as standard

pipe certified as line pipe or certified for use as both line and

standard pipe. Petitioners further alleged that pipe distributors were

substituting pipe certified to the more stringent line and dual-

certified specifications for the standard pipe subject to the order,

and that end users of standard pipe began using imported line and dual-

certified pipe in ``standard pipe applications.'' According to

petitioners, the ``transformation of standard pipe into * * * pipe

which also meets the line pipe standard is a ``minor alteration of

merchandise'' within the meaning of section 781(c) of the [Tariff]

Act.'' See Anticircumvention Petition, April 23, 1993 at 1.

After examining petitioners' allegations, we instead initiated a

scope inquiry under 19 CFR 353.29(i) on June 7, 1993, to determine

whether both API 5L line pipe and dual-certified pipe, when actually

used in standard pipe applications, are within the scope of the orders.

On March 21, 1996, we determined that both line and dual-certified pipe

were explicitly excluded from the orders. Final Negative Scope

Determination (61 FR 11608).

On April 12, 1996, Wheatland Tube Company (Wheatland), one of the

original petitioners, filed a lawsuit before the Court of International

Trade (the Court) challenging the final scope determination and the

fact that the Department did not initiate an anticircumvention inquiry,

as petitioners originally requested. On July 12, 1996, we requested a

remand from the Court in order to provide a full explanation on the

record as to why we did not initiate an anticircumvention inquiry or,

if appropriate, to initiate such a proceeding. On October 9, 1996, the

Court denied our motion for a voluntary remand and, in response to a

separate motion filed by Wheatland, also dismissed all counts of the

original complaint as to Mexico. 3

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\3\ Based on the Court's denial of our request for voluntary

remand, the Department is not initiating an anticircumvention

inquiry with respect to pipe imports from Brazil and Korea.

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Initiation of Anticircumvention Proceeding

Section 353.29(b) of our regulations provides that applications for

anticircumvention determinations contain (1) a detailed description of

the product, including technical characteristics and uses of the

product, and its current U.S. Tariff Classification number; (2) a

statement of the interested party's position as to whether the product

is within the scope of an antidumping order, including (i) a summary of

the reasons for this conclusion, (ii) citations to any applicable

statutory authority, and (iii) attachment of any factual support for

this position, including applicable portions of the Secretary's or the

Commission's investigation. Where all of these conditions are met, our

regulations state we will evaluate the application to determine whether

an inquiry is warranted.

Upon review of petitioners' application, we find that it contains a

detailed description of the products and

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a statement of the petitioners' position as to whether the product is

included within the order, as required by 19 CFR 353.29(b). Based on

our evaluation of the petition (see Memorandum, Joseph A. Spetrini to

Robert S. LaRussa, December 19, 1996, on file in Room B-099 of the Main

Commerce Building), we determine that a formal inquiry is warranted.

Accordingly, we are initiating a circumvention inquiry concerning

the antidumping duty order on standard pipe from Mexico, pursuant to

section 781(c) of the Tariff Act. In accordance with 19 CFR 353.29(j),

we will not instruct the Customs Service to suspend liquidation and

require a cash deposit of estimated duties on the merchandise which is

the subject of this inquiry unless and until we issue an affirmative

preliminary determination.

The Department will, following consultation with the interested

parties, establish a schedule for questionnaires and comments on the

issues. The Department intends to issue its final determination within

300 days of the date of publication of this initiation.

This notice is published in accordance with section 781(c) of the

Tariff Act (19 U.S.C. 1677j(c)) and 19 CFR 353.29.

Dated: December 20, 1996.

Robert S. LaRussa,

Acting Assistant Secretary for Import Administration.

[FR Doc. 97-632 Filed 1-9-97; 8:45 am]

BILLING CODE 3510-DS-P