Small Diameter Circular Seamless Carbon and Alloy Steel Standard, Line and Pressure Pipe From Brazil; Notice of Initiation and Preliminary Results of Changed Circumstances Antidumping Duty Administrative Review, and Intent to Revoke Order in Part

DEPARTMENT OF COMMERCE

International Trade Administration

[A-351-826]

Small Diameter Circular Seamless Carbon and Alloy Steel Standard,

Line and Pressure Pipe From Brazil; Notice of Initiation and

Preliminary Results of Changed Circumstances Antidumping Duty

Administrative Review, and Intent to Revoke Order in Part

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of initiation and preliminary results of changed

circumstances antidumping duty administrative review, and intent to

revoke order in part.

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

SUMMARY: In response to a request made on April 27, 1998, by the Gulf

States Tube Division of Vision Metals (``Gulf

[[Page 28358]]

States'') 1, a petitioner in this case, the Department of

Commerce (the Department) is initiating a changed circumstances

antidumping duty administrative review and issuing a preliminary intent

to revoke in part the antidumping duty order on small diameter circular

seamless carbon and alloy steel standard, line and pressure pipe from

Brazil, the scope of which currently includes certain glass-lined

seamless pressure pipe. Gulf States and Koppel Steel Corporation, the

petitioners in this case, have expressed no further interest in the

relief provided by the antidumping duty order with respect to certain

glass-lined seamless pressure pipe imported from Brazil. Accordingly,

we intend to revoke this order in part.

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

\1\ Gulf States was previously a division of Quanex Corporation.

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

Interested parties are invited to comment on these preliminary

results.

EFFECTIVE DATE: May 22, 1998.

FOR FURTHER INFORMATION CONTACT: Helen M. Kramer or Linda Ludwig, AD/

CVD Enforcement Group III, Import Administration, International Trade

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

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

0405 or (202) 482-3833, respectively.

SUPPLEMENTARY INFORMATION:

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 of 1930 (the Act) by the

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

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

regulations at 19 CFR Part 351 (62 FR 27296, May 19, 1997).

Background

On August 3, 1995, the Department published the amended final

determination and antidumping duty order in the less-than-fair-value

(LTFV) investigation of small diameter circular seamless carbon and

alloy steel standard, line and pressure pipe from Brazil (60 FR 39707).

On April 27, 1998, Gulf States, a petitioner, requested partial

revocation of the antidumping duty order due to changed circumstances,

pursuant to 19 U.S.C. 1675(b)(1) and 19 CFR 351.222(g), 62 FR 27,296 at

27,400-01 (May 19, 1997), with respect to imports from Brazil of

certain glass-lined seamless pressure pipe. On May 1, 1998, the second

petitioner, Koppel Steel Corporation, informed the Department by

telephone that it has no interest in continuing the application of the

order to glass-lined seamless pressure pipe. See Memorandum for the

File from Helen M. Kramer, Case Analyst, to Linda Ludwig, Program

Manager (May 1, 1998).

Scope of the Review

Imports covered by this review and partial revocation are shipments

of seamless carbon and alloy (other than stainless) steel pipes, of

circular cross-section, not more than 114.3 mm (4.5 inches) in outside

diameter, regardless of wall thickness or manufacturing process (hot-

finished or cold-drawn) that (1) has been cut into lengths of six to

120 inches, (2) has had the inside bore ground to a smooth surface, (3)

has had multiple layers of specially formulated corrosion resistant

glass permanently baked on at temperatures of 1,440 to 1,700 degrees

Fahrenheit in thicknesses from 0.032 to 0.085 inch (40 to 80 mils), and

(4) has flanges or other forged stub ends welded on both ends of the

pipe. The special corrosion resistant glass referred to in this

definition may be glass containing by weight (1) 70 to 80 percent of an

oxide of silicone, zirconium, titanium or cerium (Oxide Group

RO2), (2) 10 to 15 percent of an oxide of sodium, potassium,

or lithium (Oxide Group RO), (3) from a trace amount to 5 percent of an

oxide of either aluminum, cobalt, iron, vanadium, or boron (Oxide Group

R2O3, or (4) from a trace amount to 5 percent of

a fluorine compound in which fluorine replaces the oxygen in any one of

the previously listed oxide groups. These glass-lined pressure pipes

are commonly manufactured for use in glass-lined equipment systems for

processing corrosive or reactive chemicals, including acrylates,

alkanolamines, herbicides, pesticides, pharmaceuticals and solvents.

The glass-lined pressure pipes subject to this review are currently

classifiable under subheadings 7304.39.0020, 7304.39.0024 and

7304.39.0028 of the Harmonized Tariff Schedule of the United States

(HTSUS). The HTSUS subheadings are provided for convenience and U.S.

Customs' purposes only. The written description of the scope of this

review remains dispositive.

Initiation and Preliminary Results of Changed Circumstances

Antidumping Duty Administrative Review, and Intent to Revoke in

Part

At the request of the petitioner, Gulf States, in accordance with

section 751(b) of the Act and section 351.216 of the Department's

regulations, the Department is initiating a changed circumstances

review of small diameter circular seamless carbon and alloy steel

standard, line and pressure pipe from Brazil to determine whether

partial revocation of the antidumping duty order is warranted with

respect to glass-lined seamless pressure pipe. Section 782(h)(2) of the

Act and section 351.222(g)(1)(i) of the Department's regulations

provide that the Department may revoke an order if it determines that

producers accounting for substantially all of the production of the

domestic like product have no further interest in the order. In

addition, in the event the Department determines that expedited action

is warranted, section 351.221(c)(3)(ii) of the regulations permits the

Department to combine the notices of initiation and preliminary

results.

In accordance with section 751(b) of the Act and sections

351.222(g)(1)(i) and 351.221(c)(3), we are initiating this changed

circumstances administrative review and have determined that expedited

action is warranted. Our decision to expedite this review stems from

the domestic industry's lack of interest in applying the antidumping

duty order to glass-lined seamless pressure pipe.

Based on the expression of no interest by Gulf States and Koppel

Steel and absent any objection by any other domestic interested

parties, we have preliminarily determined that substantially all of the

domestic producers of the like product have no interest in continued

application of the antidumping duty order to glass-lined seamless

pressure pipe from Brazil.

Because we have concluded that expedited action is warranted, we

are combining these notices of initiation and preliminary results.

Therefore, we are hereby notifying the public of our intent to revoke,

in part, the antidumping duty order as it relates to imports of certain

glass-lined seamless pressure pipe from Brazil.

Interested parties may submit case briefs and/or written comments

no later than 30 days after the date of publication of these

preliminary results. 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

issue the final results of this changed circumstances review, which

will include the results of its analysis raised in any such written

comments, no later than 270 days after the date on which this review

was initiated, or within 45 days if all parties agree to our

[[Page 28359]]

preliminary determination. See section 351.216(e) of the Department's

regulations.

If final revocation occurs, we will instruct the U.S. Customs

Service to end the suspension of liquidation and to refund, with

interest, any estimated antidumping duties collected for all

unliquidated entries of glass-lined seamless pressure pipe from Brazil.

The current requirement for a cash deposit of estimated antidumping

duties on all subject merchandise will continue unless and until it is

modified pursuant to the final results of this changed circumstances

review.

This initiation of review and notice are in accordance with

sections 751(b) of the Act, as amended (19 U.S.C. 1675(b)), and 19 CFR

351.216, 351.221, and 351.222 (62 FR 27396, 27398-9, May 19, 1997).

Dated: May 18, 1998.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

[FR Doc. 98-13801 Filed 5-21-98; 8:45 am]

BILLING CODE 3510-DS-P