Circular Welded Non-Alloy Steel Pipe From the Republic of Korea; Preliminary Results of Antidumping Duty Changed Circumstances Review

DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-809]

Circular Welded Non-Alloy Steel Pipe From the Republic of Korea;

Preliminary Results of Antidumping Duty Changed Circumstances Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of preliminary results of antidumping duty changed

circumstances review.

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SUMMARY: In response to a request by SeAH Steel Corporation submitted

on March 27, 1997, the Department of Commerce is conducting a changed

circumstances review to examine whether SeAH Steel Corporation is the

successor to Pusan Steel Pipe. As a result of this review, the

Department of Commerce preliminarily finds that for purposes of this

proceeding, SeAH is the successor to Pusan Steel Pipe and should be

assigned the antidumping deposit rate applicable to Pusan Steel Pipe.

EFFECTIVE DATE: March 26, 1998.

FOR FURTHER INFORMATION CONTACT: Marian Wells or Cynthia Thirumalai,

Import Administration, International Trade Administration, U.S.

Department of Commerce, 14th Street and Constitution Avenue, NW,

Washington, DC 20230; telephone (202) 482-6309 and 482-4087

respectively.

The 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 of Commerce's (the

Department's) regulations refer to the regulations, codified at 19 CFR

part 353, April 1997.

Background

On July 15, 1997, we published a notice of initiation in this

changed circumstances review (see Circular Welded Non-Alloy Steel Pipe

from Korea: Notice of Extension of Time Limit for Preliminary Results,

Partial Termination of Antidumping Duty Administrative Review and

Initiation of Changed Circumstances Review (62 FR 37865)). SeAH Steel

Corporation (SeAH) submitted information on its corporate structure and

production facilities on January 22, 1998 in response to a request by

the Department. We are conducting this review in accordance with 19 CFR

353.22(f).

Scope of Review

The merchandise subject to this review is circular welded non-alloy

steel pipe and tube, of circular cross-section, not more than 406.4 mm

(16 inches) in outside diameter, regardless of wall thickness, surface

finish (black, galvanized, or painted), or end finish (plain end,

beveled end, threaded, or threaded and coupled). These pipes and tubes

are generally known as standard pipes and tubes and are intended for

the low-pressure conveyance of water, steam, natural gas, air, and

other liquids and gases in plumbing and heating systems, air-

conditioning units, automatic sprinkler systems, and other related

uses. Standard pipe may also be used for light load-bearing

applications, such as for fence tubing, and as structural pipe tubing

used for framing and as support members for reconstruction or load-

bearing purposes in the construction, shipbuilding, trucking, farm

equipment, and other related industries. Unfinished conduit pipe is

also included in this order.

All carbon-steel pipes and tubes within the physical description

outlined above are included within the scope of this review except line

pipe, oil-country tubular goods, boiler tubing, mechanical tubing, pipe

and tube hollows for redraws, finished scaffolding, and finished

conduit. In accordance with the Department's Final Negative

Determination of Scope Inquiry on Certain Circular Welded Non-Alloy

Steel Pipe and Tube from Brazil, the Republic of Korea, Mexico, and

Venezuela (61 FR 11608, March 21, 1996), pipe certified to the API 5L

line-pipe specification and pipe certified to both the API 5L line-pipe

specifications and the less-stringent ASTM A-53 standard-pipe

specifications, which falls within the physical parameters as outlined

above, and entered as line pipe of a kind used for oil and gas

pipelines is outside of the scope of the antidumping duty order.

Imports of these products are currently classifiable under the

following Harmonized Tariff Schedule (HTS) subheadings: 7306.30.10.00,

7306.30.50.25, 7306.30.50.32, 7306.30.50.40, 7306.30.50.55,

7306.30.50.85, and 7306.30.50.90. Although the HTS subheadings are

provided for convenience and customs purposes, our written description

of the scope of this proceeding is dispositive.

Successorship

Pusan Steel Pipe (PSP) legally changed its name to SeAH on December

28, 1995, effective as of January 1, 1996. In its request for this

changed circumstances review, SeAH asked that it be found the successor

to PSP insofar as the change was in name only while the legal structure

of the company, its management and ownership were not affected.

In determining whether one company is the successor to another for

purposes of applying the antidumping duty law, the Department examines

a number of factors including, but not limited to, changes in (1)

management, (2) production facilities, (3) suppliers, and (4) customer

base. (See, e.g., Brass Sheet and Strip from Canada; Final Results of

Antidumping Duty Administrative Review (``Brass Sheet and Strip''), (57

FR 7759, March 5, 1990), and Industrial Phosphoric Acid From Israel;

Final Results of Antidumping Duty Changed Circumstances Review, (59

6955, February 14, 1994).) While no one or several of these factors

will necessarily provide a dispositive indication of succession, the

Department will generally consider one company to be a successor to a

second if its resulting operation is essentially the same as that of

its predecessor (see, Brass Sheet and Strip). Thus, if the evidence

demonstrates that, with respect to the production and sale of the

subject merchandise, the new company operates as the same business

entity, the Department will assign the new company the cash deposit

rate of its predecessor.

We have received information from SeAH that demonstrates that no

major changes occurred with respect to PSP's management, plant

facilities, customer base or suppliers. Specifically, we have received

product brochures, promotional materials, organizational charts, and

lists of managers names for 1995 and 1996. Therefore, the change in

name from PSP to SeAH had no material effect on the operation of the

company with respect to the production and sale of subject merchandise

(i.e., standard pipe). Based on the foregoing, we preliminarily find

that SeAH is the successor to PSP and, as such, is entitled to PSP's

cash deposit rate with respect to entries of subject merchandise.

Preliminary Results of the Review

We preliminarily conclude that SeAH is the successor to PSP. Should

our final results remain the same as these preliminary results, we will

instruct the U.S. Customs Service to assign SeAH

[[Page 14680]]

the antidumping duty cash deposit rate applicable to PSP of 6.00

percent ad valorem.

Parties to the proceeding may request disclosure within five days

of the date of publication of this notice. Interested parties may also

request a hearing within ten days of publication.

If requested, a hearing will be held April 6, 1998. Interested

parties may submit case briefs by March 27, 1998. Rebuttal briefs,

which must be limited to issues raised in the case briefs, may be filed

not later than April 1, 1998. The Department will issue a notice of the

final results of the changed circumstance review, which will include

the results of its analysis of issues raised in any such briefs and

hearing. This changed circumstances review and notice are in accordance

with 19 CFR 353.22(f).

Dated: March 18, 1998.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

[FR Doc. 98-7966 Filed 3-25-98; 8:45 am]

BILLING CODE 3510-DS-P