NOTICES

                   DEPARTMENT OF COMMERCE

             International Trade Administration

                           [C-475-817]

     Oil Country Tubular Goods From Italy; Preliminary Results of
                         Sunset Review of
                   Countervailing Duty Order

                    Monday, October 30, 2000

  AGENCY: Import Administration, International Trade
  Administration, Department of Commerce.

  ACTION: Notice of preliminary results of full Sunset Review: oil
  country tubular goods from Italy.

  SUMMARY: On July 3, 2000, the Department of Commerce ("the
  Department") initiated a sunset review of the countervailing duty
  order on oil country tubular goods ("OCTG") 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 30, 2000.

  FOR FURTHER INFORMATION CONTACT: John P. Maloney, Jr. 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) 482-1503 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 Antidumping and Countervailing Duty
  Orders, 63 FR 13516 (March 20, 1998) ("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
  Antidumping 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 oil country tubular goods 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, IPSCO Tubulars, Inc., Lone Star Steel Company,
  Maverick Tube Corporation, Newport Steel and Koppel Steel
  Divisions of NS Group, Grant-Prideco, and North Star Steel Ohio
  (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. U.S. Steel Group, IPSCO
  Steel, Inc., Maverick Tube Corporation, Koppel Steel Corporation,
  and North Star Steel Ohio were petitioners in the investigation and
  have been involved in this proceeding since its inception.
  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 3). On
  August 1, 2000, we received a response from the Government of
  Italy ("GOI") expressing its willingness to participate in this review
  as the authority 

*64669

  responsible for defending the interests of
  the Italian steel industry. The GOI and EC note that they have in the
  past participated in this proceeding (see August 1, 2000, Response
  of the EC at 3, and the August 1, 2000, Response of the GOI at 2).
  On August 2, 2000, we received complete substantive responses
  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 7, 2000. Pursuant to 19 CFR 351.218
  (e)(2)(i), the Department determined to conduct a full (240-day)
  sunset review of this order. [FN1]

  FN1 See August 22, 2000, Memorandum for Jeffrey A. May, Re: Oil
  Country Tubular Goods from Italy; Adequacy of Respondent
  Interested Parties' Response to the Notice of Initiation.

  Scope of Review

  The merchandise covered by this review is OCTG, hollow steel
  products of circular cross-section, including only oil well casing and
  tubing pipe, of iron (other than cast iron) or steel (both carbon and
  alloy), whether seamless or welded, whether or not conforming to
  American Petroleum Institute (API) or non-API specifications,
  whether finished or unfinished (including green tubes and limited
  service OCTG products). This scope does not cover casing or tubing
  pipe containing 10.5 percent or more of chromium, or drill pipe. The
  OCTG subject to this order are currently classified in the Harmonized
  Tariff Schedule of the United States (HTSUS) under item numbers:
  7304.20.10.10, 7304.20.10.20, 7304.20.10.30, 7304.20.10.40,
  7304.20.10.50, 7304.20.10.60, 7304.20.10.80, 7304.20.20.10,
  7304.20.20.20, 7304.20.20.30, 7304.20.20.40, 7304.20.20.50,
  7304.20.20.60, 7304.20.20.80, 7304.20.30.10, 7304.20.30.20,
  7304.20.30.30, 7304.20.30.40, 7304.20.30.50, 7304.20.30.60,
  7304.20.30.80, 7304.20.40.10, 7304.20.40.20, 7304.20.40.30,
  7304.20.40.40, 7304.20.40.50, 7304.20.40.60, 7304.20.40.80,
  7304.20.50.15, 7304.20.50.30, 7304.20.50.45, 7304.20.50.60,
  7304.20.50.75, 7304.20.60.15, 7304.20.60.30, 7304.20.60.45,
  7304.20.60.60, 7304.20.60.75, 7305.20.20.00, 7305.20.40.00,
  7305.20.60.00, 7305.20.80.00, 7306.20.10.30, 7306.20.10.90,
  7306.20.20.00, 7306.20.30.00, 7306.20.40.00, 7306.20.60.10,
  7306.20.60.50, 7306.20.80.10, and 7306.20.80.50. Although the
  HTSUS subheadings are provided for convenience and customs
  purposes, our written description of the scope of this proceeding is
  dispositive.

  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 Memo") 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 Memo 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 Memo can be
  accessed directly on the Web at www.enforcement.trade.gov/frn, under the
  heading "Italy." The paper copy and electronic version of the
  Decision Memo are identical in content.

  Preliminary Results of Review

  We preliminarily determine that revocation of the countervailing
  duty order on oil country tubular goods from Italy would be likely
  to lead to continuation or recurrence of countervailable subsidies at
  the rate listed below:
   
  ------------------------------------------------------------------ 
          Producers/exporters           Net countervailable subsidy 
  ------------------------------------------------------------------ 
                              (percent) 
  All Producers/exporters from Italy .......................... 1.47 
  ------------------------------------------------------------------ 
   
  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 18, 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 15,
  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.

  [FR Doc. 00-27809 Filed 10-27-00; 8:45 am]

  BILLING CODE 3510-DS-P