Oil Country Tubular Goods From Mexico; Initiation of Changed Circumstances Antidumping Duty Administrative Review

DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-817]

Oil Country Tubular Goods From Mexico; Initiation of Changed

Circumstances Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of initiation of changed circumstances antidumping duty

administrative review.

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SUMMARY: The Department of Commerce (the Department) is initiating a

changed circumstances antidumping duty administrative review of the

antidumping duty order on oil country tubular goods (``OCTG'') from

Mexico. See Notice of Final Determination; Oil Country Tubular Goods

from Mexico, 60 FR 33567 (June 28, 1995).

Within the past year, the Department has received two requests to

revoke the antidumping duty (AD) order covering OCTG from Mexico as it

pertains to drill pipe with tool joints attached (commonly referred to

as finished drill pipe). One was a request by the International

Association of Drilling

[[Page 25450]]

Contractors that the Department self-initiate a changed circumstances

review. The other request came from the leading producer of finished

drill pipe in the United States, Grant Prideco. The latter request was

withdrawn.

We are initiating an antidumping duty changed circumstances

administrative review to determine the extent of domestic industry

support for continuing the antidumping duty order on OCTG from Mexico

with regard to finished drill pipe.

EFFECTIVE DATE: May 8, 1998.

FOR FURTHER INFORMATION CONTACT: John K. Drury or Richard Weible,

Import Administration, International Trade Administration, U.S.

Department of Commerce, 14th Street and Constitution Avenue, N.W.,

Washington, D.C. 20230; telephone (202) 482-3208 or (202) 482-1103,

respectively.

SUPPLEMENTARY INFORMATION:

Background

On July 8, 1997, the International Association of Drilling

Contractors (IADC) requested that the Department self-initiate a

changed circumstances review with respect to finished drill pipe. On

March 13, 1998, the Department responded to the IADCO request. On

January 28, 1998, Grant Prideco, Inc. requested revocation of the AD

order on Mexican OCTG with respect to finished drill pipe. The

Department received letters in opposition to this second request from

OMSCO Industries and Drill Pipe Industries, Inc. on February 12, 1998,

and February 13, 1998, respectively. On March 16, 1998, Grant Prideco

withdrew its request for a changed circumstances review.

Since the Department's response to IADC on March 13, 1998, parties

have raised questions regarding whether substantially all of the

domestic industry supports continuation of the AD order on OCTG from

Mexico with respect to finished drill pipe. Therefore, in light of the

request originally filed by Grant Prideco and the information available

to the Department, the Department believes a changed circumstances

review is warranted. The Department intends to examine thoroughly the

domestic producers of the like product to determine which companies are

no longer interested in the portion of the order with respect to

finished drill pipe. The Department will conduct this review as

expeditiously as possible, allowing opportunity for all parties to

comment. The Department will not revoke the order, in part, unless

domestic producers accounting for substantially all of the like product

have expressed lack of interest in maintaining the order with respect

to drill pipe. The Department interprets ``substantially all'' to mean

at least 85 percent of domestic production of the like product. This

review is to determine the level of support of domestic producers of

the like product for maintaining this order with respect to finished

drill pipe.

Applicable Statute and Regulations

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 by the Uruguay Round

Agreements Act. In addition, unless otherwise indicated, all citations

to the Department's regulations are to the current regulations.

Scope of the Review

The merchandise subject to this changed circumstances review, is

finished oil well drill pipe with tool joints attached. This

merchandise is currently classifiable in the Harmonized Tariff Schedule

of the United States (HTSUS) under item number 8431.43.8010 as ``Parts

suitable for use solely or principally with the machinery of headings

8425 to 8430, [o]f machinery of heading 8426, 8429 or 8430: [p]arts for

boring or sinking machinery of subheading 8430.41 or 8430.49: [o]ther:

[o]f oil and gas field machinery.'' Although the HTSUS subheadings are

provided for convenience and customs purposes, our written description

of the scope of this review is dispositive.

Initiation of Changed Circumstances Antidumping Duty Order

Administrative Review

Pursuant to section 751(b)(1) of the Tariff Act, the Department

will conduct a changed circumstances administrative review upon receipt

of information concerning, or a request from an interested party for a

review of, an antidumping duty order which shows changed circumstances

sufficient to warrant a review of the order. In accordance with section

751(b) and 19 CFR 351.216(b)(4) and 19 CFR 351.216(d), we are

initiating a changed circumstances administrative review. We invite all

parties to provide comments on whether domestic producers of the like

product no longer have an interest in maintaining the order with

respect to finished drill pipe from Mexico within seven days of

publication of this notice of initiation.

The Department will publish in the Federal Register a notice of

preliminary results of changed circumstances antidumping duty

administrative review, in accordance with 19 CFR 351.216(b)(4) and 19

CFR 351.221(c)(3). The Department will issue its final results of

review in accordance with 19 CFR 351.216(e). All written comments must

be submitted in accordance with 19 CFR 351.303 and must be served on

all interested parties on the Department's service list in accordance

with the same provision.

This notice is in accordance with section 751(b)(1) of the Tariff

Act and section 351.221(b)(1) of the Department's regulations.

Dated: May 1, 1998.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

[FR Doc. 98-12203 Filed 5-7-98; 8:45 am]

BILLING CODE 3510-DS-P