71 FR 77383, December 26, 2006

DEPARTMENT OF COMMERCE

International Trade Administration

[C-475-817]

Oil Country Tubular Goods from Italy: Final Results of Five-year 
(Sunset) Review and Revocation of the Countervailing Duty Order

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

SUMMARY: On June 1, 2006, the Department of Commerce (the Department) 
published in the Federal Register the notice of initiation of the 
second five-year sunset review of the countervailing duty order on oil 
country tubular goods (OCTG) from Italy, pursuant to section 751(c) of 
the Tariff Act of 1930, as amended (the Act). See Initiation of Five-
year (``Sunset'') Reviews, 71 FR 31153 (June 1, 2006) (Second Sunset 
Review). The Department has conducted an expedited sunset review as 
provided for in section 751(c)(3)(B) of the Act and 19 CFR 
351.218(e)(1)(ii)(C). As a result of this sunset review, the Department 
finds that revocation of the countervailing duty order would not be 
likely to lead to continuation or recurrence of a countervailable 
subsidy. Therefore, the Department is revoking this countervailing duty 
order.

EFFECTIVE DATE: July 25, 2006

FOR FURTHER INFORMATION CONTACT: Jun Jack Zhao or Sean Carey, AD/CVD 
Operations, Office 6, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street & Constitution 
Avenue, N.W., Washington, D.C. 20230; telephone: (202) 482-1396 or 
(202) 482-3964, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The countervailing duty order on OCTG from Italy was published in 
the Federal Register on August 10, 1995. See Notice of Countervailing 
Duty Order: Oil Country Tubular Goods (``OCTG'') From Italy, 60 FR 
40822 (August 10, 1995). On March 8, 2001, the Department published in 
the Federal Register the final results of the first sunset review of 
the countervailing duty order on OCTG from Italy, pursuant to the Act. 
See Oil Country Tubular Goods (``OCTG'') From Italy; Final Results of 
Sunset Review of Countervailing Duty Order, 66 FR 13910 (March 8, 
2001). In that review, the Department determined that the revocation of 
the CVD order would likely to lead to continuation or recurrence of 
countervailable subsidies at the same rate as found in the final 
determination. Following the affirmative injury determination by the 
International Trade Commission (ITC) and pursuant to 19 CFR 
351.218(e)(4), the Department published a notice of continuation of the 
order. See Continuation of Countervailing and Antidumping Duty Orders 
on Oil Country Tubular Goods From Argentina, Italy, Japan, Korea and 
Mexico, and Partial Revocation of Those Orders From Argentina and 
Mexico With Respect to Drill Pipe, 66 FR 38630 (July 25, 2001) 
(Continuation of Orders).
    On June 1, 2006, pursuant to section 751(c) of the Act, the 
Department initiated the second sunset review of the countervailing 
duty order on OCTG from Italy. See Second Sunset Review. The Department 
received notices of intent to participate from United States Steel 
Corporation, IPSCO Tubulars, Inc., Lone Star Steel Company, Koppel 
Steel (NS Group), Maverick Tube Corporation, Newport Steel (NS Group), 
V&M Star LP (collectively, ``domestic interested parties''), within the 
deadline specified in 19 CFR 351.218(d)(1)(i). Domestic interested 
parties claimed interested party status under section 771(9)(C) of the 
Act, as U.S. manufacturers of the domestic like product. Moreover, 
certain domestic interested parties were petitioners in the original 
investigation and have participated in subsequent reviews before the 
Department.
    The Department received substantive responses within the deadline 
specified in section 19 CFR 351.218(d)(3)(i) from domestic interested 
parties, the Government of Italy (GOI), the European Union/Delegation 
of the European Commission (EU), Dalmine S.p.A. (Dalmine), and Arvedi 
Tubi Acciaio S.p.A. (Arvedi).\1\ The Department also received timely 
filed rebuttal comments from the domestic interested parties.\2\
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    \1\ Dalmine is a manufacturer and exporter of the subject 
merchandise. Arvedi indicated in its substantive response that it no 
longer produces the merchandise subject to this order. Therefore, 
Arvedi is not an interested party in accordance with 771(9)(A) of 
the Act.
    \2\ On June 29 and July 5, 2006, the Department received a 
substantive response and rebuttal comments, respectively, from IPSCO 
Tubulars, Inc., Lone Star Steel Company, Koppel Steel (NS Group), 
Maverick Tube Corporation, Newport Steel (NS Group), V&M Star LP. On 
July 3 and July 14, 2006, the Department received a substantive 
response and rebuttal comments, respectively, from United States 
Steel Corporation.

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[[Page 77384]]

    In addition to meeting the other requirements of section 
351.218(d)(3) of the Department's regulations, the GOI provided 
information on the volume and value of exports of subject merchandise 
to the United States. Further, Dalmine reported exports of zero during 
the period of this sunset review (January 2001 through December 2005). 
The Department's regulations provide that the Secretary ``normally will 
conclude that respondent interested parties have provided adequate 
response to a notice of initiation where it receives complete 
substantive responses . . . from respondent interested parties 
accounting on average for more than 50 percent, on a volume basis (or 
value, if appropriate), of the total exports of subject merchandise to 
the United States over the five calender years preceding the year of 
publication of the notice of initiation.'' (See 19 CFR 
351.218(e)(1)(ii)(A)). Dalmine's exports of subject merchandise to the 
United States during the period 2001 - 2005 did not account for more 
than 50 percent of total exports of subject merchandise. As such, the 
Department found the respondents' responses to be inadequate and 
therefore, has conducted an expedited sunset review of the 
countervailing duty order,\3\ pursuant to 19 CFR 351.218(e)(1)(ii)(A) 
and 351.218(e)(1)(ii)(C). In accordance with 19 CFR 
351.218(e)(1)(ii)(C)(2), the Department notified the ITC that 
respondent interested parties provided inadequate response to the 
notice of Initiation of Five-year (``Sunset'') Review.\4\
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    \3\ See July 21, 2006 Memorandum from the sunset team to Stephen 
J. Claeys, Deputy Assistant Secretary for Import Administration, 
through Barbara E. Tillman, Director, AD/CVD Operations, Office 6, 
Adequacy Determination: Sunset Review of the Countervailing Duty 
Order on Oil Country Tubular Goods from Italy (Second Review)
    \4\ See July 25, 2006 letter to Robert Carpenter, Director, 
Office of Investigations, ITC, from Edward C. Yang, Senior 
Enforcement Coordinator, AD/CVD Operations, Office of China/NME 
Compliance, Import Administration.
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    On October 2, 2006, the Department extended the deadline to issue 
the final results to December 19, 2006, in accordance with sections 
751(c)(5)(B) and 751(c)(5)(C) of the Act. See Oil Country Tubular Goods 
from Italy: Extension of Time Limit for Final Results of Expedited 
Five-year (Sunset) Review of Countervailing Duty Order, 71 FR 57922 
(October 2, 2006). On November 8 and 10, 2006, the Department conducted 
verification in Italy of the GOI's and Dalmine's substantive responses. 
On November 17, 2006, the Department issued verification reports on GOI 
and Dalmine. See November 17, 2006 memoranda to the file Countervailing 
Duty Sunset Review of Oil Country Tubular Goods from Italy: 
Verification of the Government of Italy's (GOI) Substantive 
Questionnaire Response and Countervailing Duty Sunset Review of Oil 
Country Tubular Goods from Italy: Verification of Dalmine's Sales and 
Substantive Questionnaire Response. On November 27, 2006, the 
Department received comments from the GOI regarding the verification 
report. The Department did not receive comments from other interested 
parties.

Scope of the Order

    Imports covered by this order are oil country tubular goods, hollow 
steel products of circular cross-section, including oil well casing, 
tubing, and drill 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, 
tubing, or drill pipe containing 10.5 percent or more of chromium. The 
OCTG subject to this order are currently classified in the Harmonized 
Tariff Schedule of the United States (HTSUS) under item numbers: 
7304.21.30.00, 7403.21.60.00, 7304.29.10.10, 7304.29.10.20, 
7304.29.10.30, 7304.29.10.40, 7304.29.10.50, 7304.29.10.60, 
7304.29.10.80, 7304.29.20.10, 7304.29.20.20, 7304.29.20.30, 
7304.29.20.40, 7304.29.20.50, 7304.29.20.60, 7304.29.20.80, 
7304.29.30.10, 7304.29.30.20, 7304.29.30.30, 7304.29.30.40, 
7304.29.30.50, 7304.29.30.60, 7304.29.30.80, 7304.29.40.10, 
7304.29.40.20, 7304.29.40.30, 7304.29.40.40, 7304.29.40.50, 
7304.29.40.60, 7304.29.40.80, 7304.29.50.15, 7304.29.50.30, 
7304.29.50.45, 7304.29.50.60, 7304.29.50.75, 7304.29.60.15, 
7304.29.60.30, 7304.29.60.45, 7304.29.60.60, 7304.29.60.75, 
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 substantive responses and in comments on the 
verification reports by parties in this sunset review are addressed in 
the Issues and Decision Memorandum for Final Results of Expedited Five-
year (Sunset) Review of the Countervailing Duty Order on Oil Country 
Tubular Goods from Italy, from Stephen J. Claeys, Deputy Assistant 
Secretary for Import Administration, to David M. Spooner, Assistant 
Secretary for Import Administration, dated September 29, 2006 (Decision 
Memo), which is hereby adopted by this notice.
    Parties can find a complete discussion of all issues raised in this 
sunset review and the corresponding recommendation in this public 
memorandum which is on file in Room B-099, the Central Records Unit, of 
the main Commerce building. In addition, a complete version of the 
Decision Memo can be accessed directly on the Department's Web page at 
https://enforcement.trade.gov/frn. The paper copy and electronic version of the 
Decision Memo are identical in content.

Final Results of Review

    The Department determines that revocation of the countervailing 
duty order on OCTG from Italy would not be likely to lead to 
continuation or recurrence of a countervailable subsidy. As a result, 
we are revoking this order effective July 25, 2006, the fifth 
anniversary of the date of publication in the Federal Register of the 
notice of continuation of the CVD order on OCTG from Italy. See 
Continuation of Orders. We will notify the ITC of these results. 
Furthermore, we intend to instruct U.S. Customs and Border Protection, 
15 days after the publication of this notice, to terminate suspension 
of liquidation, effective July 25, 2006.

Notification Regarding Administrative Protective Order

    This notice also serves as the only reminder to parties subject to 
administrative protective orders (APO) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with section 351.305 of the 
Department's regulations. Timely notification of the return or 
destruction of APO materials or conversion to judicial protective order 
is hereby requested. Failure to comply with the regulations and terms 
of an APO is a violation which is subject to sanction.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(c), 752, and 777(i) of the Act.

    Dated: December 18, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.

[FR Doc. E6-22077 Filed 12-22-06; 8:45 am]

BILLING CODE 3510-DS-S