65 FR 64426 October 27, 2000
[C-475-815]
Seamless Carbon and Alloy Steel Standard, Line and Pressure Pipe
From Italy; Preliminary Results of Sunset Review of Countervailing Duty
Order
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of Preliminary Results of Full Sunset Review: Seamless
Carbon and Alloy Steel Standard, Line and Pressure Pipe from Italy.
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SUMMARY: On July 3, 2000, the Department of Commerce (``the
Department'') initiated a sunset review of the countervailing duty
order on seamless carbon and alloy steel standard, line and pressure
pipe (``seamless pipe'') from Italy (65 FR 41053) pursuant to section
751(c) of the Tariff Act of 1930, as amended (``the Act''). On the
basis of substantive responses filed by domestic and respondent
interested parties, the Department determined to conduct a full review.
As a result of this review, the Department preliminarily finds that
revocation of the countervailing duty order would likely lead to
continuation or recurrence of subsidies at the levels indicated in the
Preliminary Results of Review section of this notice.
EFFECTIVE DATE: October 27, 2000.
FOR FURTHER INFORMATION CONTACT: Kathryn B. McCormick or James Maeder,
Office of Policy for Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
1930 or (202) 482-3330, respectively.
SUPPLEMENTARY INFORMATION:
Statute and Regulations
This review is being conducted pursuant to sections 751(c) and 752
of the Act. The Department's procedures for the conduct of sunset
reviews are set forth in Procedures for Conducting Five-year
(``Sunset'') Reviews of Countervailing and Countervailing Duty Orders,
63 FR 13516 (March 20, 1998)
[[Page 64427]]
(``Sunset Regulations'') and in 19 CFR part 351 (2000) in general.
Guidance on methodological or analytical issues relevant to the
Department's conduct of sunset reviews is set forth in the Department's
Policy Bulletin 98.3--Policies Regarding the Conduct of Five-year
(``Sunset'') Reviews of Countervailing and Countervailing Duty Orders;
Policy Bulletin, 63 FR 18871 (April 16, 1998) (``Sunset Policy
Bulletin'').
Background
On July 3, 2000, the Department initiated a sunset review of the
countervailing duty order on seamless pipe from Italy (65 FR 41053),
pursuant to section 751(c) of the Tariff Act of 1930, as amended,
(``the Act''). The Department received a notice of intent to
participate on behalf of U.S. Steel Group, a unit of USX Corporation,
and Vision Metals, Inc. (collectively, ``domestic interested
parties''), within the applicable deadline (July 18, 2000) specified in
section 351.218(d)(1)(i) of the Sunset Regulations. Domestic interested
parties claimed interested-party status under section 771(9)(C) of the
Act, as U.S. manufacturers of the domestic like product. Vision Metals,
Inc., formerly the Gulf States Tube Division of Quanex Corporation, was
a petitioner in the investigation and has been involved in this
proceeding since its inception (see August 2, 2000, Substantive
Response of domestic interested parties at 3).
On August 1, 2000, we received a response from the European Union
Delegation of the European Commission (``EC'') expressing its
willingness to participate in this review as the authority responsible
for defending the interest of the Member States of the European Union
(``EU'') (see August 1, 2000, Response of the EC at 2). On August 2,
2000, we received a response from the Government of Italy (``GOI'')
expressing its willingness to participate in this review as the
government of a country in which subject merchandise is produced and
exported. The GOI and EC note that they have in the past participated
in this proceeding (see August 1, 2000, Response of the EC at 2, and
the August 2, 2000, Response of the GOI at 2).
On August 2, 2000, we received a complete substantive response from
domestic interested parties, within the 30-day deadline specified in
the Sunset Regulations under section 351.218(d)(3)(i), and a complete
substantive response from Dalmine S.p.A. (``Dalmine''), a foreign
producer and exporter of the subject merchandise, and a respondent
interested party under section 771(9)(A) of the Act.
We received rebuttal comments from domestic interested parties and
Dalmine, on August 8, 2000, and August 7, 2000, respectively. Pursuant
to 19 CFR 351.218(e)(2)(i), the Department determined to conduct a full
(240-day) sunset review of this order.\1\
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\1\ See August 22, 2000, Memorandum for Jeffrey A. May, Re:
Seamless Pipe from Italy; Adequacy of Respondent Interested Party
Response to the Notice of Initiation.
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Scope of Review
See Appendix.
Analysis of Comments Received
All issues raised in the substantive responses and rebuttals by
parties to this sunset review are addressed in the ``Issues and
Decision Memorandum'' (``Decision Memorandum'') from Jeffrey A. May,
Director, Office of Policy, Import Administration, to Troy H. Cribb,
Acting Assistant Secretary for Import Administration, dated October 23,
2000, which is hereby adopted by this notice. The issues discussed in
the attached Decision Memorandum include the likelihood of continuation
or recurrence of countervailable subsidies and the net subsidy likely
to prevail were the order revoked. Parties can find a complete
discussion of all issues raised in this review and the corresponding
recommendations in this public memorandum which is on file in the
Central Records Unit, room B-099, of the main Commerce building.
In addition, a complete version of the Decision Memorandum can be
accessed directly on the Web at https://enforcement.trade.gov/frn, under the
heading ``Italy.'' The paper copy and electronic version of the
Decision Memorandum are identical in content.
Preliminary Results of Review
We preliminarily determine that revocation of the countervailing
duty order on seamless pipe from Italy would be likely to lead to
continuation or recurrence of countervailable subsidy at the rate
listed below:
------------------------------------------------------------------------
Net
countervailable
Producers/exporters subsidy
(percent)
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All producers/exporters from Italy..................... 1.47
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Any interested party may request a hearing within 30 days of
publication of this notice in accordance with 19 CFR 351.310(c). Any
hearing, if requested, will be held on December 17, 2000, in accordance
with 19 CFR 351.310(d). Interested parties may submit case briefs no
later than December 11, 2000, in accordance with 19 CFR
351.309(c)(1)(i). Rebuttal briefs, which must be limited to issues
raised in the case briefs, may be filed not later than December 18,
2000. The Department will issue a notice of final results of this
sunset review, which will include the results of its analysis of issues
raised in any such briefs, no later than February 28, 2001.
This five-year (``sunset'') review and notice are in accordance
with sections 751(c), 752, and 777(i)(1) of the Act.
Dated: October 23, 2000.
Troy H. Cribb,
Acting Assistant Secretary for Import Administration.
Appendix
The scope of this order includes small diameter seamless carbon
and alloy standard, line and pressure pipes (``seamless pipes'')
produced to the American Society for Testing and Materials
(``ASTM'') standards A-335, A-106, A-53, and American Petroleum
Institute (``API'') standard API 5L specifications and meeting the
physical parameters described below, regardless of application. The
scope of this review also includes all products used in standard,
line, or pressure pipe applications and meeting the physical
parameters below, regardless of specification. For purposes of this
review, seamless pipes are 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, manufacturing process (hot-finished or cold-drawn), end
finish (plain end, beveled end, upset end, threaded, or threaded and
coupled), or surface finish. These pipes are commonly known as
standard pipe, line pipe, or pressure pipe, depending upon the
application. They may also be used in structural applications. Pipes
produced in non-standard wall thicknesses are commonly referred to
as tubes. The seamless pipes subject to this review are currently
classifiable under subheadings 7304.10.10.20, 7304.10.50.20,
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 Harmonized Tariff Schedule of the United States
(``HTSUS'').
The following information further defines the scope of this
review, which covers pipes meeting the physical parameters described
above: 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 standard A-106 may be used in
temperatures of up to 1000 degrees Fahrenheit, at various
[[Page 64428]]
American Society of Mechanical Engineers (``ASME'') code stress
levels. Alloy pipes made to ASTM standard A-335 must be used if
temperatures and stress levels exceed those allowed for A-106 and
the ASME codes. 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. 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 pipes are commonly produced and certified to
meet ASTM A-106, ASTM A-53 and API 5L specifications. Such triple
certification of pipes is common because all pipes meeting the
stringent ASTM A-106 specification necessarily meet the API 5L and
ASTM A-53 specifications. Pipes meeting the API 5L specification
necessarily meet the ASTM A-53 specification. However, pipes meeting
the A-53 or API 5L specifications do not necessarily meet the A-106
specification. To avoid maintaining separate production runs and
separate inventories, manufacturers triple-certify the pipes. 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-
certified pipes is in pressure piping systems by refineries,
petrochemical plants and chemical plants. Other applications are in
power generation plants (electrical-fossil fuel 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, A-106 pipes
may be used in some boiler applications. The scope of this review
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 this review. Therefore, seamless pipes meeting the
physical description above, but not produced to the ASTM A-335, ASTM
A-106, ASTM A-53, or API 5L standards 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 A-106
applications. These specifications generally include A-162, A-192,
A-210, A-333, and A-524. When such pipes are used in a standard,
line or pressure pipe application, such products are covered by the
scope of this review. Specifically excluded from this review are
boiler tubing and mechanical tubing, if such products are not
produced to ASTM A-335, ASTM A-106, ASTM A-53 or API 5L
specifications and are not used in standard, line or pressure
applications. In addition, finished and unfinished oil country
tubular goods (``OCTG'') are excluded from the scope of this review,
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. Finally, also excluded from this
review are redraw hollows for cold-drawing when used in the
production of cold-drawn pipe or tube. Although the HTSUS
subheadings are provided for convenience and customs purposes, our
written description of the scope of this order is dispositive.
[FR Doc. 00-27688 Filed 10-26-00; 8:45 am]
BILLING CODE 3510-DS-P