[Federal Register: March 8, 2001 (Volume 66, Number 46)]
[Notices]               
[Page 13909-13910]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08mr01-49]                         


[[Page 13909]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-475-815]

 
Small Diameter Circular Seamless Carbon and Alloy Steel Standard, 
Line and Pressure Pipe From Italy; Final Results of Full Sunset Review 
of Countervailing Duty Order

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

ACTION: Notice of final results of full sunset review: Small diameter 
circular seamless carbon and alloy steel standard, line and pressure 
pipe from Italy.

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SUMMARY: On October 27, 2000, the Department of Commerce (``the 
Department'') published in the Federal Register (65 FR 64426) the 
preliminary results of the full sunset review of the countervailing 
duty order on small diameter circular seamless carbon and alloy steel 
standard, line and pressure pipe (``seamless pipe'') from Italy, 
pursuant to section 751(c) of the Tariff Act of 1930, as amended (``the 
Act''). We provided interested parties an opportunity to comment on our 
preliminary results and received comments from domestic and respondent 
interested parties. As a result of this review, the Department finds 
that revocation of the countervailing duty order would be likely to 
lead to continuation or recurrence of a countervailable subsidy. The 
net countervailable subsidy and the nature of the subsidy are 
identified in the Final Results of Review section of this notice.

For Further Information Contact: Becky J. Hagen or James Maeder, Office 
of Policy for Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th & Constitution, NW., 
Washington, DC 20230; telephone: (202) 482-1277 or (202) 482-3330, 
respectively.

Effective Date: March 8, 2001.

Statute and Regulations

    These reviews were 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 (1999) 
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'').

Scope of Review

    The merchandise subject to this review includes 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 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

[[Page 13910]]

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.

Background

    On October 27, 2000, the Department of Commerce (``the 
Department'') published in the Federal Register a notice of preliminary 
results of the full sunset review of the countervailing duty order on 
seamless pipe from Italy (65 FR 64426), pursuant to section 751(c) of 
the Tariff Act of 1930, as amended (``the Act''). In our preliminary 
results, we found that revocation of the order would likely result in 
continuation or recurrence of a net countervailable subsidy at the rate 
of 1.47 percent for all Italian seamless pipe producers/exporters.
    On November 27, 2000, U.S. Steel Group, a unit of USX Corporation, 
and Vision Metals, Inc. (``domestic interested parties'') requested a 
hearing in the sunset review. On December 11, 2000, within the deadline 
specified in 19 CFR 351.309(c)(1)(i), we received a case brief on 
behalf of Dalmine S.p.A (``Dalmine''). On December 18, 2000, domestic 
interested parties submitted a rebuttal brief. On December 19, 2000, 
domestic interested parties withdrew their request for a hearing and 
the Department canceled the hearing.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs 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 Bernard T. Carreau, Deputy 
Assistant Secretary, Import Administration, dated February 28, 2001, 
which is hereby adopted by this notice. The issues discussed in the 
Decision Memorandum include the automatic initiation of this sunset 
review, the likelihood of continuation or recurrence of countervailable 
subsidies, and the net countervailable 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. The paper copy 
and electronic version of the Decision Memorandum are identical in 
content.

Final Results of Review

    As a result of this review, the Department finds that revocation of 
the countervailing duty order on seamless pipe from Italy would be 
likely to lead to continuation or recurrence of a countervailable 
subsidy at the rates listed below:


------------------------------------------------------------------------
                                                                Margin
                      Producer/exporter                       (percent):
------------------------------------------------------------------------
All Italian producers/exporters.............................        1.47
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    This notice serves as the only reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305 of the Department's regulations. 
Timely notification of return/destruction of APO material or conversion 
to judicial protective order is hereby requested. Failure to comply 
with the regulations and the terms of an APO is a sanctionable 
violation.
    This five-year (``sunset'') review and notice are in accordance 
with sections 751(c), 752, and 777(i)(1) of the Act. This notice is 
published pursuant to section 703(c)(2) of the Act.

    Dated: February 28, 2001.
Timothy J. Hauser,
Acting Under Secretary for International Trade.
[FR Doc. 01-5630 Filed 3-7-01; 8:45 am]
BILLING CODE 3510-DS-P