Notice of Preliminary Determinations of Sales at Less Than Fair Value: Certain Large Diameter Carbon and Alloy Seamless Standard, Line and Pressure Pipe From Japan and Certain Small Diameter Carbon and Alloy Seamless Standard, Line and Pressure Pipe From Japan and the Republic of South Africa

DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-850, A-588-851, A-791-808]

Notice of Preliminary Determinations of Sales at Less Than Fair

Value: Certain Large Diameter Carbon and Alloy Seamless Standard, Line

and Pressure Pipe From Japan and Certain Small Diameter Carbon and

Alloy Seamless Standard, Line and Pressure Pipe From Japan and the

Republic of South Africa

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: December 14, 1999.

FOR FURTHER INFORMATION CONTACT: Charles Riggle at (202) 482-5288 or

Constance Handley at (202) 482-0631, Import Administration, Room 1870,

International Trade Administration,

[[Page 69719]]

U.S. Department of Commerce, 14th Street and Constitution Avenue, NW,

Washington, DC 20230.

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 Department of Commerce (Department)

regulations refer to the regulations codified at 19 CFR part 351 (April

1999).

Preliminary Determinations

We preliminarily determine that large diameter carbon and alloy

seamless standard, line and pressure pipe (large diameter seamless

pipe) from Japan, and small diameter carbon and alloy seamless

standard, line and pressure pipe (small diameter seamless pipe) from

Japan and the Republic of South Africa (South Africa), are being sold,

or are likely to be sold, in the United States at less than fair value

(LTFV), as provided in section 733 of the Act. The estimated margins of

sales at LTFV are shown in the Suspension of Liquidation section of

this notice.

Case History

On June 30, 1999, the Department received petitions on large

diameter seamless pipe from Japan and Mexico filed in proper form by

U.S. Steel Group (a unit of USX Corp.--Fairfield Seamless Pipe Mill)

and USS/Kobe Steel Company. Also that day, the Department received

petitions on small diameter seamless pipe from the Czech Republic,

Japan, Romania and South Africa filed in proper form from Koppel Steel

Corporation, Sharon Tube company, U.S. Steel Group, USS/Kobe Steel

Company and Vision Metals, Inc. (Gulf States Tube Division). On June

30, 1999, the United Steel Workers of America joined as co-petitioners

in all of the cases.1

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\1\ The preliminary determinations in the investigations

involving the Czech Republic, Mexico and Romania has been postponed

until January 26, 2000

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

These investigations were initiated on July 20, 1999. See

Initiation of Antidumping Duty Investigations: Certain Large Diameter

Carbon and Alloy Seamless Standard, Line and Pressure Pipe from Japan

and Mexico and Certain Small Diameter Carbon and Alloy Seamless

Standard, Line and Pressure Pipe from the Czech Republic, Japan, the

Republic of South Africa and Romania; (Initiation Notice), 64 FR 40825

(July 28, 1999). Since the initiation of the investigations, the

following events have occurred:

On August 12, 1999, the Department selected the following companies

as mandatory respondents in the investigations: Kawasaki Steel

Corporation (Kawasaki), Nippon Steel Corporation (Nippon) and Sumitomo

Metal Industries (Sumitomo) for both investigations involving Japan;

and Iscor Ltd (Iscor), the sole producer of the subject merchandise for

South Africa. See Respondent Selection, below. On August 12, 1999, the

Department issued the antidumping questionnaires to each of the

selected respondents.

On August 16, 1999, the United States International Trade

Commission (ITC) preliminarily determined that there is a reasonable

indication that imports of the products subject to each of these

antidumping investigations are materially injuring the U.S. industry.

See Certain Seamless Carbon and Alloy Steel Standard, Line, and

Pressure Pipe from the Czech Republic, Japan, Mexico, Romania, and

South Africa, 64 FR 46953 (August 27, 1999).

On September 10, 1999, Iscor notified the Department that it would

not be responding to the Department's questionnaire. Likewise, in the

cases involving Japan, none of the mandatory respondents answered the

Department's questionnaire.

Period of Investigation

The period of investigation (POI) for both the large and small

diameter seamless pipe cases is April 1, 1998, through March 31, 1999.

This period corresponds to the four most recent fiscal quarters prior

to the month of the filing of the petition (i.e., June 1999).

Scope of Investigations 2

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\2\ On September 3, 1999, the petitioners requested that the

scope of the investigations be amended to exclude certain products

made to the A-335 specification. This change is reflected in the

current scope.

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

For purposes of the large diameter seamless pipe investigation, the

products covered are large diameter seamless carbon and alloy (other

than stainless) steel standard, line, and pressure pipes produced, or

equivalent, to the American Society for Testing and Materials (ASTM) A-

53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-335 (grades P1, P2, P11,

P12, P21 and P22 only), ASTM A-589, ASTM A-795, and the American

Petroleum Institute (API) 5L specifications and meeting the physical

parameters described below, regardless of application. The scope of

these investigations also includes all products used in standard, line,

or pressure pipe applications and meeting the physical parameters

described below, regardless of specification. Specifically included

within the scope of these investigations are seamless pipes greater

than 4.5 inches (114.3 mm) up to and including 16 inches (406.4 mm) in

outside diameter, regardless of wall-thickness, manufacturing process

(hot finished or cold-drawn), end finish (plain end, beveled end, upset

end, threaded, or threaded and coupled), or surface finish.

The seamless pipes subject to these investigations are currently

classifiable under the subheadings 7304.10.10.30, 7304.10.10.45,

7304.10.10.60, 7304.10.50.50, 7304.31.60.50, 7304.39.00.36,

7304.39.00.40, 7304.39.00.44, 7304.39.00.48, 7304.39.00.52,

7304.39.00.56, 7304.39.00.62, 7304.39.00.68, 7304.39.00.72,

7304.51.50.60, 7304.59.60.00, 7304.59.80.30, 7304.59.80.35,

7304.59.80.40, 7304.59.80.45, 7304.59.80.50, 7304.59.80.55,

7304.59.80.60, 7304.59.80.65, and 7304.59.80.70 of the Harmonized

Tariff Schedule of the United States (HTSUS).

Specifications, Characteristics, and Uses: Large diameter seamless

pipe is used primarily for line applications such as oil, gas, or water

pipeline, or utility distribution systems. Seamless pressure pipes are

intended for the conveyance of water, steam, petrochemicals, chemicals,

oil products, natural gas and other liquids and gasses in industrial

piping systems. They may carry these substances at elevated pressures

and temperatures and may be subject to the application of external

heat. Seamless carbon steel pressure pipe meeting the ASTM A-106

standard may be used in temperatures of up to 1000 degrees Fahrenheit,

at various American Society of Mechanical Engineers (ASME) code stress

levels. Alloy pipes made to ASTM A-335 standard must be used if

temperatures and stress levels exceed those allowed for ASTM A-106.

Seamless pressure pipes sold in the United States are commonly produced

to the ASTM

A-106 standard.

Seamless standard pipes are most commonly produced to the ASTM A-53

specification and generally are not intended for high temperature

service. They are intended for the low temperature and pressure

conveyance of water, steam, natural gas, air and other liquids and

gasses in plumbing and heating systems, air conditioning units,

automatic sprinkler systems, and other related uses. Standard pipes

(depending on type and code) may carry liquids at elevated temperatures

but must not exceed relevant ASME code

[[Page 69720]]

requirements. If exceptionally low temperature uses or conditions are

anticipated, standard pipe may be manufactured to ASTM A-333 or ASTM A-

334 specifications.

Seamless line pipes are intended for the conveyance of oil and

natural gas or other fluids in pipe lines. Seamless line pipes are

produced to the API 5L specification.

Seamless water well pipe (ASTM A-589) and seamless galvanized

pipe for fire protection uses (ASTM A-795) are used for the conveyance

of water.

Seamless pipes are commonly produced and certified to meet ASTM A-

106, ASTM A-53, API 5L-B, and API 5L-X42 specifications. To avoid

maintaining separate production runs and separate inventories,

manufacturers typically triple or quadruple certify the pipes by

meeting the metallurgical requirements and performing the required

tests pursuant to the respective specifications. Since distributors

sell the vast majority of this product, they can thereby maintain a

single inventory to service all customers.

The primary application of ASTM A-106 pressure pipes and

triple or quadruple certified pipes in large diameters is for use as

oil and gas distribution lines for commercial applications. A more

minor application for large diameter seamless pipes is for use in

pressure piping systems by refineries, petrochemical plants, and

chemical plants, as well as in power generation plants and in some oil

field uses (on shore and off shore) such as for separator lines,

gathering lines and metering runs. These applications constitute the

majority of the market for the subject seamless pipes. However, ASTM A-

106 pipes may be used in some boiler applications.

The scope of these investigations includes all seamless pipe

meeting the physical parameters described above and produced to one of

the specifications listed above, regardless of application, and whether

or not also certified to a non-covered specification. Standard, line,

and pressure applications and the above-listed specifications are

defining characteristics of the scope of these investigations.

Therefore, seamless pipes meeting the physical description above, but

not produced to the ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM

A-335 (grades P1, P2, P11, P12, P21 and P22 only), ASTM A-589, ASTM A-

795, and API 5L specifications shall be covered if used in a standard,

line, or pressure application.

For example, there are certain other ASTM specifications of pipe

which, because of overlapping characteristics, could potentially be

used in ASTM A-106 applications. These specifications generally

include ASTM A-161, ASTM A-192, ASTM A-210, ASTM A-252, ASTM A-501,

ASTM A-523, ASTM A-524, and ASTM A-618. When such pipes are

used in a standard, line, or pressure pipe application, such products

are covered by the scope of these investigations.

Specifically excluded from the scope of these investigations are

boiler tubing and mechanical tubing, if such products are not produced

to ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-335 (grades

P1, P2, P11, P12, P21 and P22 only), ASTM A-589, ASTM A-795, and API 5L

specifications and are not used in standard, line, or pressure pipe

applications. In addition, finished and unfinished oil country tubular

goods (OCTG) are excluded from the scope of these investigations, if

covered by the scope of another antidumping duty order from the same

country. If not covered by such an OCTG order, finished and unfinished

OCTG are included in this scope when used in standard, line or pressure

applications.

For purposes of the small diameter seamless pipe investigations,

the products covered are seamless carbon and alloy (other than

stainless) steel standard, line, and pressure pipes and redraw hollows

produced, or equivalent, to the ASTM A-53, ASTM A-106, ASTM A-333, ASTM

A-334, ASTM A-335, ASTM A-589, ASTM A-795, and the American

Petroleum Institute (API) 5L specifications and meeting the physical

parameters described below, regardless of application. The scope of

these investigations also includes all products used in standard, line,

or pressure pipe applications and meeting the physical parameters

described below, regardless of specification. Specifically included

within the scope of these investigations are seamless pipes and redraw

hollows, less than or equal to 4.5 inches (114.3 mm) in outside

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

finished or cold-drawn), end finish (plain end, beveled end, upset end,

threaded, or threaded and coupled), or surface finish.

The seamless pipes subject to these investigations are currently

classifiable under the subheadings 7304.10.10.20, 7304.10.50.20,

7304.31.30.00, 7304.31.60.50, 7304.39.00.16, 7304.39.00.20,

7304.39.00.24, 7304.39.00.28, 7304.39.00.32, 7304.51.50.05,

7304.51.50.60, 7304.59.60.00, 7304.59.80.10, 7304.59.80.15,

7304.59.80.20, and 7304.59.80.25 of the HTSUS.

Specifications, Characteristics, and Uses: Seamless pressure pipes

are intended for the conveyance of water, steam, petrochemicals,

chemicals, oil products, natural gas and other liquids and gasses in

industrial piping systems. They may carry these substances at elevated

pressures and temperatures and may be subject to the application of

external heat. Seamless carbon steel pressure pipe meeting the ASTM A-

106 standard may be used in temperatures of up to 1000 degrees

Fahrenheit, at various ASME code stress levels. Alloy pipes made to

ASTM A-335 standard must be used if temperatures and stress levels

exceed those allowed for ASTM A-106. Seamless pressure pipes sold in

the United States are commonly produced to the ASTM A-106 standard.

Seamless standard pipes are most commonly produced to the ASTM A-53

specification and generally are not intended for high temperature

service. They are intended for the low temperature and pressure

conveyance of water, steam, natural gas, air and other liquids and

gasses in plumbing and heating systems, air conditioning units,

automatic sprinkler systems, and other related uses. Standard pipes

(depending on type and code) may carry liquids at elevated temperatures

but must not exceed relevant ASME code requirements. If exceptionally

low temperature uses or conditions are anticipated, standard pipe may

be manufactured to ASTM A-333 or ASTM A-334 specifications.

Seamless line pipes are intended for the conveyance of oil and

natural gas or other fluids in pipe lines. Seamless line pipes are

produced to the API 5L specification.

Seamless water well pipe (ASTM A-589) and seamless galvanized pipe

for fire protection uses (ASTM A-795) are used for the conveyance of

water.

Seamless pipes are commonly produced and certified to meet ASTM A-

106, ASTM A-53, API 5L-B, and API 5L-X42 specifications. To avoid

maintaining separate production runs and separate inventories,

manufacturers typically triple or quadruple certify the pipes by

meeting the metallurgical requirements and performing the required

tests pursuant to the respective specifications. Since distributors

sell the vast majority of this product, they can thereby maintain a

single inventory to service all customers.

The primary application of ASTM A-106 pressure pipes and

triple or quadruple certified pipes is in pressure piping systems by

refineries, petrochemical plants, and chemical plants. Other

applications are in power generation plants (electrical-fossil fuel

[[Page 69721]]

or nuclear), and in some oil field uses (on shore and off shore) such

as for separator lines, gathering lines and metering runs. A minor

application of this product is for use as oil and gas distribution

lines for commercial applications. These applications constitute the

majority of the market for the subject seamless pipes. However, ASTM A-

106 pipes may be used in some boiler applications.

Redraw hollows are any unfinished pipe or ``hollow profiles'' of

carbon or alloy steel transformed by hot rolling or cold drawing/

hydrostatic testing or other methods to enable the material to be sold

under ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-335,

ASTM A-589, ASTM A-795, and API 5L specifications.

The scope of these investigations includes all seamless pipe

meeting the physical parameters described above and produced to one of

the specifications listed above, regardless of application, and whether

or not also certified to a non-covered specification. Standard, line,

and pressure applications and the above-listed specifications are

defining characteristics of the scope of these investigations.

Therefore, seamless pipes meeting the physical description above, but

not produced to the ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM

A-335, ASTM A-589, ASTM A-795, and API 5L specifications shall be

covered if used in a standard, line, or pressure application.

For example, there are certain other ASTM specifications of pipe

which, because of overlapping characteristics, could potentially be

used in ASTM A-106 applications. These specifications generally

include ASTM A-161, ASTM A-192, ASTM A-210, ASTM A-252, ASTM A-501,

ASTM A-523, ASTM A-524, and ASTM A-618. When such pipes are

used in a standard, line, or pressure pipe application, such products

are covered by the scope of these investigations.

Specifically excluded from the scope of these investigations are

boiler tubing and mechanical tubing, if such products are not produced

to ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-335, ASTM A-

589, ASTM A-795, and API 5L specifications and are not used in

standard, line, or pressure pipe applications. In addition, finished

and unfinished OCTG are excluded from the scope of these

investigations, if covered by the scope of another antidumping duty

order from the same country. If not covered by such an OCTG order,

finished and unfinished OCTG are included in this scope when used in

standard, line or pressure applications.

Although the HTSUS subheadings are provided for convenience and

customs purposes, our written description of the merchandise under

investigation is dispositive.

The Department set aside a period for all interested parties to

raise issues regarding product coverage. From August through November

1999, the Department received responses from a number of parties

including importers, respondents, consumers, and petitioners.

Class or Kind

We have preliminarily determined that there are only two classes or

kinds of merchandise, one for small diameter pipe and one for large

diameter pipe. Our determination is based on an evaluation of the

criteria set forth in Diversified Products v. United States, 572 F.

Supp. 883, 889 (CIT 1983) (Diversified Products), which look to

differences in: (1) The general physical characteristics of the

merchandise, (2) the expectations of the ultimate purchaser, (3) the

ultimate use of the merchandise, (4) the channels of trade in which the

merchandise moves, and (5) the manner in which the product is

advertised or displayed. In making this preliminary determination, we

have rejected a request by Sumitomo that the Department determine that

there are three separate classes or kinds of merchandise subject to

investigation: (1) Commodity grade standard, line and pressure pipe,

(2) high-strength line pipe produced to proprietary specification for

use in deep sea, arctic or other harsh conditions and (3) alloy

pressure pipe. See letter from Sumitomo to the Department of Commerce

(August 3, 1999). Likewise we have rejected the requests of MC Tubular

Products, Inc., an importer of the subject merchandise, and the

American Boiler Makers Association (ABMA), consumers of the subject

merchandise, that we determine that alloy seamless pipe is a separate

class or kind than carbon seamless pipe. See letter from MC Tubular

Products to the Department of Commerce (August 10, 1999), and letter

from the ABMA to the Assistant Secretary (November 5, 1999). In our

analysis of the Diversified Products criteria, we find that, consistent

with past seamless pipe cases, alloy grade steels, high-strength line

pipe, and pipes made therefrom, represent the upper end of a single

continuum of steel grades and associated attributes. See, e.g., Notice

of Final Determination of Sales at Less Than Fair Value: Small Diameter

Circular Seamless Carbon and Alloy Steel, Standard, Line and Pressure

Pipe From Brazil, 60 FR 31960, 31963 (June 19, 1995); Notice of Final

Determination of Sales at Less Than Fair Value: Small Diameter Circular

Seamless Carbon and Alloy Steel, Standard, Line and Pressure Pipe From

Germany, 60 FR 31974 (June 19, 1995). Information placed on the record

of this proceeding, which does not address all of the Diversified

Products criteria or contain compelling new documented evidence, does

not constitute sufficient justification for deviating from our

established precedent. Id. For further discussion on this topic see

Memorandum from Case Analysts to Holly Kuga, Re: Class or Kind, dated

December 7, 1999. On December 2, 1999, Sumitomo made an additional

submission with regard to class or kind. Due to the statutory deadline

for the preliminary determination in these investigations, we will

consider this information in making the final determination.

Selection of Respondents

Section 777A(c)(1) of the Act directs the Department to calculate

individual dumping margins for each known exporter and producer of the

subject merchandise. However, section 777A(c)(2) of the Act gives the

Department discretion, when faced with a large number of exporters/

producers, to limit its examination to a reasonable number of such

companies if it is not practicable to examine all companies. Where it

is not practicable to examine all known producers/exporters of subject

merchandise, this provision permits the Department to investigate

either: (1) A sample of exporters, producers, or types of products that

is statistically valid based on the information available at the time

of selection, or (2) exporters and producers accounting for the largest

volume of the subject merchandise that can be reasonably examined.

After consideration of the complexities expected to arise in these

proceedings and the resources available to the Department, we

determined that it was not practicable in the Japanese investigations

to examine all known producers/exporters of subject merchandise. This

was not a concern in the investigation involving South Africa, since

there was only one producer/exporter of subject merchandise in that

country during the POI. However, with respect to Japan, which had

multiple producers/exporters of subject merchandise during the POI, we

determined that, given our resources, we would be able to investigate

three such companies. The respondents selected for Japan were

[[Page 69722]]

those with the greatest export volume, that together accounted for more

than 50 percent of all known exports of the subject merchandise during

the POI from Japan. For a more detailed discussion of respondent

selection in these investigations, see Respondent Selection Memorandum,

dated August 12, 1999.

Facts Available

As stated above, none of the respondents answered the Department's

questionnaire. Section 776(a)(2) of the Act provides that, if an

interested party (A) withholds information that has been requested by

the Department; (B) fails to provide such information in a timely

manner or in the form or manner requested subject to section 782(c)(1)

and (e) of the Act; (C) significantly impedes a proceeding under the

antidumping statute; or (D) provides such information but the

information cannot be verified, the Department shall, subject to

subsection 782(d) of the Act, use facts otherwise available in reaching

the applicable determination. Because Iscor, Kawasaki, Nippon and

Sumitomo failed to respond to our questionnaire, pursuant to section

776(a)(2)(A) of the Act, we resorted to facts otherwise available to

determine the dumping margins for these companies.

Section 776(b) of the Act provides that the Department may use an

inference adverse to the interests of a party that has failed to

cooperate by not acting to the best of its ability to comply with the

Department's requests for information. See also Statement of

Administrative Action accompanying the URAA, H.R. Rep. No. 103-316 at

870 (1994) (SAA). Failure by Iscor, Kawasaki, Nippon and Sumitomo to

respond to the Department's antidumping questionnaire constitutes a

failure to act to the best of their ability to comply with a request

for information, within the meaning of section 776 of the Act. Because

Iscor, Kawasaki, Nippon and Sumitomo failed to respond, the Department

has determined that, in selecting among the facts otherwise available,

an adverse inference is warranted in selecting the facts available for

these companies.

Because we were unable to calculate margins for the respondents in

Japan, or South Africa, consistent with Department practice, we

assigned the respondents in these cases the highest margins alleged in

the amendments to the respective petitions. See, e.g., Notice of

Preliminary Determination of Sales at Less Than Fair Value: Stainless

Steel Wire Rod from Germany (Wire Rod from Germany), 63 FR 10847 (March

5, 1998). The highest petition margins are 106.07 percent in the small

diameter seamless pipe investigation for Japan, 107.80 percent in the

large diameter seamless pipe investigation for Japan and 43.51 percent

for South Africa. See Initiation Notice.

Section 776(b) states that an adverse inference may include

reliance on information derived from the petition. See also SAA at 829-

831. Section 776(c) of the Act provides that, when the Department

relies on secondary information (such as the petition) in using the

facts otherwise available, it must, to the extent practicable,

corroborate that information from independent sources that are

reasonably at its disposal.

The SAA clarifies that ``corroborate'' means that the Department

will satisfy itself that the secondary information to be used has

probative value (see SAA at 870). The SAA also states that independent

sources used to corroborate such evidence may include, for example,

published price lists, official import statistics and customs data, and

information obtained from interested parties during the particular

investigation (see SAA at 870).

We reviewed the adequacy and accuracy of the information in the

petitions during our pre-initiation analysis of the petitions, to the

extent appropriate information was available for this purpose. See

Import Administration AD Investigation Initiation Checklist, dated June

21, 1999, for a discussion of the margin calculations in the petitions.

In addition, in order to determine the probative value of the margins

in the petitions for use as adverse facts available for purposes of

this determination, we examined evidence supporting the calculations in

the petitions. In accordance with section 776(c) of the Act, to the

extent practicable, we examined the key elements of the export price

(EP) and normal value (NV) calculations on which the margins in the

petitions were based. Our review of the EP and NV calculations

indicated that the information in the petitions has probative value, as

certain information included in the margin calculations in the

petitions is from public sources concurrent, for the most part, with

the POI (e.g., international freight and insurance, customs duty,

interest rates). However, with respect to certain other data included

in the margin calculations of the petition (e.g., gross United States

and home market unit prices), neither the respondents nor other

interested parties provided the Department with further relevant

information and the Department is aware of no other independent source

of information that would enable it to further corroborate the

remaining components of the margin calculation in the petition. The

implementing regulation for section 776 of the Act, codified at 19 CFR

351.308(c) states, ``[t]he fact that corroboration may not be

practicable in a given circumstance will not prevent the Secretary from

applying an adverse inference as appropriate and using the secondary

information in question.'' Additionally, we note that the SAA at 870

specifically states that, where ``corroboration may not be practicable

in a given circumstance,'' the Department may nevertheless apply an

adverse inference. Accordingly, we find, for purposes of this

preliminary determination, that this information is corroborated to the

extent practicable.

All Others Rate

Section 735(c)(5)(B) of the Act provides that, where the estimated

weighted-averaged dumping margins established for all exporters and

producers individually investigated are zero or de minimis or are

determined entirely under section 776 of the Act, the Department may

use any reasonable method to establish the estimated all-others rate

for exporters and producers not individually investigated. Our recent

practice under these circumstances has been to assign, as the ``all

others'' rate, the simple average of the margins in the petition. We

have done so in these cases. See, e.g., Notice of Final Determination

of Sales at Less Than Fair Value: Stainless Steel Plate in Coil from

Canada, 64 FR 15457 (March 31, 1999); see also Notice of Final

Determination of Sales at Less Than Fair Value: Stainless Steel Plate

in Coil from Italy, 64 FR 15458, 15459 (March 21, 1999).

Suspension of Liquidation

For entries of large and small diameter seamless pipe from Japan,

and entries of small diameter seamless pipe from South Africa, we are

directing the U.S. Customs Service to suspend liquidation of those

entries that are entered, or withdrawn from warehouse, for consumption

on or after the date of publication of this notice in the Federal

Register. We are also instructing the Customs Service to require a cash

deposit or the posting of a bond equal to the dumping margin, as

indicated in the chart below. These instructions suspending liquidation

will remain in effect until further notice.

The dumping margins are provided below.

[[Page 69723]]

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

Margin

Manufacturer/exporter (percent)

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

Japan--large diameter:

Nippon Steel Corporation................................. 107.80

Kawasaki Steel Corporation............................... 107.80

Sumitomo Metal Industries................................ 107.80

All Others............................................... 68.88

Japan--small diameter:

Nippon Steel Corporation................................. 106.07

Kawasaki Steel Corporation............................... 106.07

Sumitomo Metal Industries................................ 106.07

All Others............................................... 70.43

South Africa--small diameter:

Iscor Ltd................................................ 43.51

All Others............................................... 40.17

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

ITC Notification

In accordance with section 733(f) of the Act, we have notified the

ITC of our determinations. If our final antidumping determinations are

affirmative, the ITC will determine whether these imports are

materially injuring, or threaten material injury to, the U.S. industry.

The deadline for that ITC determination would be the later of 120 days

after the date of these preliminary determinations or 45 days after the

date of our final determinations.

Public Comment

For the investigations of large and small diameter seamless pipe

from Japan and small diameter seamless pipe from South Africa, case

briefs must be submitted no later than 30 days after the publication of

this notice in the Federal Register. Rebuttal briefs must be filed

within five business days after the deadline for submission of case

briefs. A list of authorities used, a table of contents, and an

executive summary of issues should accompany any briefs submitted to

the Department. Executive summaries should be limited to five pages

total, including footnotes.

Section 774 of the Act provides that the Department will hold a

hearing to afford interested parties an opportunity to comment on

arguments raised in case or rebuttal briefs, provided that such a

hearing is requested by any interested party. If a request for a

hearing is made in an investigation, the hearing will tentatively be

held two days after the deadline for submission of the rebuttal briefs,

at the U.S. Department of Commerce, 14th Street and Constitution

Avenue, NW, Washington, D.C. 20230. In the event that the Department

receives requests for hearings from parties to several seamless pipe

cases, the Department may schedule a single hearing to encompass all

those cases. Parties should confirm by telephone the time, date, and

place of the hearing 48 hours before the scheduled time.

Interested parties who wish to request a hearing, or to participate

if one is requested, must submit a written request within 30 days of

the publication of this notice. Requests should specify the number of

participants and provide a list of the issues to be discussed. Oral

presentations will be limited to issues raised in the briefs.

If these investigations proceed normally, we will make our final

determinations no later than 75 days after the date of issuance of this

notice.

These determinations are published pursuant to sections 733(f) and

777(i)(1) of the Act.

Dated: December 7, 1999.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

[FR Doc. 99-32393 Filed 12-13-99; 8:45 am]

BILLING CODE 3510-DS-P