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