Certain Large Diameter Carbon and Alloy Seamless Standard, Line, and Pressure Pipe (Over 41/2, 39852-39854 [2011-17065]
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39852
Federal Register / Vol. 76, No. 130 / Thursday, July 7, 2011 / Notices
protective order is hereby requested.
Failure to comply with the regulations
and terms of an APO is a violation
which is subject to sanction.
This notice is issued and published in
accordance with section 777(i)(1) of the
Tariff Act of 1930, as amended, and 19
CFR 351.213(d)(4).
Dated: June 30, 2011.
Christian Marsh,
Deputy Assistant Secretary for Antidumping
and Countervailing Duty Operations.
[FR Doc. 2011–17069 Filed 7–6–11; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–588–850]
Certain Large Diameter Carbon and
Alloy Seamless Standard, Line, and
Pressure Pipe (Over 41⁄2 Inches) From
Japan: Preliminary Results of the
Antidumping Duty Administrative
Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: On July 28, 2010, the U.S.
Department of Commerce (‘‘the
Department’’) published a notice of
initiation of an administrative review of
the antidumping duty order on certain
large diameter carbon and alloy
seamless standard, line, and pressure
pipe (over 41⁄2 inches) from Japan. The
review covers four manufacturers/
exporters: JFE Steel Corporation (‘‘JFE’’);
Nippon Steel Corporation (‘‘Nippon’’);
NKK Tubes (‘‘NKK’’); and Sumitomo
Metal Industries, Ltd. (‘‘SMI’’). The
period of review (‘‘POR’’) is June 1,
2009, through May 31, 2010. Following
the receipt of certifications of no
shipments from all four of the potential
respondents, we sought further
clarification of specific entries indicated
by U.S. Customs and Border Protection
(‘‘CBP’’) data. After analyzing parties’
explanations of these entries, we have
reached a preliminary determination of
no shipments in this administrative
review. If the preliminary results are
adopted in our final results of this
administrative review, we will instruct
CBP to assess antidumping duties on all
appropriate entries. Interested parties
are invited to comment on the
preliminary results.
DATES: Effective Date: Insert date of
publication in the Federal Register.
FOR FURTHER INFORMATION CONTACT:
Joshua Morris, AD/CVD Operations,
Office 1, Import Administration,
International Trade Administration,
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AGENCY:
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U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW.,
Washington, DC 20230; telephone: (202)
482–1779.
SUPPLEMENTARY INFORMATION:
Background
On June 1, 2010, the Department
published a notice of opportunity to
request an administrative review of the
antidumping duty order on carbon and
alloy seamless standard, line, and
pressure pipe (over 4c inches) from
Japan for the period June 1, 2009,
through May 31, 2010. See Antidumping
or Countervailing Duty Order, Finding
or Suspended Investigation;
Opportunity To Request Administrative
Review, 75 FR 30383 (June 1, 2010). On
June 30, 2010, United States Steel
Corporation (‘‘U.S. Steel’’), a domestic
producer of the subject merchandise,
made a timely request that the
Department conduct an administrative
review of JFE, Nippon, NKK, and SMI.
On July 28, 2010, in accordance with
section 751(a) of the Tariff Act of 1930,
as amended (‘‘the Act’’), the Department
published in the Federal Register a
notice of initiation of this antidumping
duty administrative review. See
Initiation of Antidumping and
Countervailing Duty Administrative
Reviews and Requests for Revocations in
Part, 75 FR 44224 (July 28, 2010). On
August 18, and 31, 2010, Nippon and
SMI, respectively, submitted letters to
the Department certifying that each
company made no shipments or entries
for consumption in the United States of
subject merchandise during the POR.
On August 31, 2010, the Department
issued its antidumping duty
questionnaire to JFE and NKK. On
September 8, and 21, 2010, JFE and
NKK, respectively, submitted letters to
the Department certifying that each
company made no shipments or entries
for consumption in the United States of
subject merchandise during the POR.
Scope of the Order
The products covered by the order are
large diameter seamless carbon and
alloy (other than stainless) steel
standard, line, and pressure pipes
produced, or equivalent, to the
American Society for Testing and
Materials (‘‘ASTM’’) A–53, ASTM A–
106, ASTM A–333, ASTM A–334,
ASTM A–589, ASTM A–795, and the
American Petroleum Institute (‘‘API’’)
5L specifications and meeting the
physical parameters described below,
regardless of application. The scope of
the order also includes all other
products used in standard, line, or
pressure pipe applications and meeting
the physical parameters described
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below, regardless of specification, with
the exception of the exclusions
discussed below. Specifically included
within the scope of the order are
seamless pipes greater than 4.5 inches
(114.3 mm) up to and including 16
inches (406.4 mm) 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.
The seamless pipes subject to the
order are currently classifiable under
the subheadings 7304.10.10.30,
7304.10.10.45, 7304.10.10.60,
7304.10.50.50, 7304.19.10.30,
7304.19.10.45, 7304.19.10.60,
7304.19.50.50, 7304.31.60.10,
7304.31.60.50, 7304.39.00.04,
7304.39.00.06, 7304.39.00.08,
7304.39.00.36, 7304.39.00.40,
7304.39.00.44, 7304.39.00.48,
7304.39.00.52, 7304.39.00.56,
7304.39.00.62, 7304.39.00.68,
7304.39.00.72, 7304.51.50.15,
7304.51.50.45, 7304.51.50.60,
7304.59.20.30, 7304.59.20.55,
7304.59.20.60, 7304.59.20.70,
7304.59.60.00, 7304.59.80.30,
7304.59.80.35, 7304.59.80.40,
7304.59.80.45, 7304.59.80.50,
7304.59.80.55, 7304.59.80.60,
7304.59.80.65, and 7304.59.80.70 of the
Harmonized Tariff Schedule of the
United States (‘‘HTSUS’’).
Specifications, Characteristics, and
Uses: Large diameter seamless pipe is
used primarily for line applications
such as oil, gas, or water pipeline, or
utility distribution systems. 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 A–106 standard
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 A–335
standard must be used if temperatures
and stress levels exceed those allowed
for ASTM A–106. 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
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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. If exceptionally low
temperature uses or conditions are
anticipated, standard pipe may be
manufactured to ASTM A–333 or ASTM
A–334 specifications.
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 water well pipe
(ASTM A–589) and seamless galvanized
pipe for fire protection uses (ASTM A–
795) are used for the conveyance of
water.
Seamless pipes are commonly
produced and certified to meet ASTM
A–106, ASTM A–53, API 5L–B, and API
5L–X42 specifications. To avoid
maintaining separate production runs
and separate inventories, manufacturers
typically triple or quadruple certify the
pipes by meeting the metallurgical
requirements and performing the
required tests pursuant to the respective
specifications. 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 or
quadruple certified pipes in large
diameters is for use as oil and gas
distribution lines for commercial
applications. A more minor application
for large diameter seamless pipes is for
use in pressure piping systems by
refineries, petrochemical plants, and
chemical plants, as well as in power
generation plants and in some oil field
uses (on shore and off shore) such as for
separator lines, gathering lines and
metering runs. These applications
constitute the majority of the market for
the subject seamless pipes. However,
ASTM A–106 pipes may be used in
some boiler applications.
The scope of the order includes all
seamless pipe meeting the physical
parameters described above and
produced to one of the specifications
listed above, regardless of application,
with the exception of the exclusions
discussed below, 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 the order.
Therefore, seamless pipes meeting the
physical description above, but not
produced to the ASTM A–53, ASTM A–
106, ASTM A–333, ASTM A–334,
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ASTM A–589, ASTM A–795, and API
5L specifications shall be covered if
used in a standard, line, or pressure
application, with the exception of the
specific exclusions discussed below.
For example, there are certain other
ASTM specifications of pipe which,
because of overlapping characteristics,
could potentially be used in ASTM A–
106 applications. These specifications
generally include ASTM A–161, ASTM
A–192, ASTM A–210, ASTM A–252,
ASTM A–501, ASTM A–523, ASTM A–
524, and ASTM A–618. When such
pipes are used in a standard, line, or
pressure pipe application, such
products are covered by the scope of the
order.
Specifically excluded from the scope
of the order are: A. Boiler tubing and
mechanical tubing, if such products are
not produced to ASTM A–53, ASTM A–
106, ASTM A–333, ASTM A–334,
ASTM A–589, ASTM A–795, and API
5L specifications and are not used in
standard, line, or pressure pipe
applications. B. Finished and
unfinished oil country tubular goods
(‘‘OCTG’’), 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 the scope when
used in standard, line or pressure
applications. C. Products produced to
the A–335 specification unless they are
used in an application that would
normally utilize ASTM A–53, ASTM A–
106, ASTM A–333, ASTM A–334,
ASTM A–589, ASTM A–795, and API
5L specifications. D. Line and riser pipe
for deepwater application, i.e., line and
riser pipe that is: (1) Used in a
deepwater application, which means for
use in water depths of 1,500 feet or
more; (2) intended for use in and is
actually used for a specific deepwater
project; (3) rated for a specified
minimum yield strength of not less than
60,000 psi; and (4) not identified or
certified through the use of a monogram,
stencil, or otherwise marked with an
API specification (e.g., ‘‘API 5L’’).
With regard to the excluded products
listed above, the Department will not
instruct CBP to require end-use
certification until such time as
petitioner or other interested parties
provide to the Department a reasonable
basis to believe or suspect that the
products are being utilized in a covered
application. If such information is
provided, we will require end-use
certification only for the product(s) (or
specification(s)) for which evidence is
provided that such products are being
used in a covered application as
described above. For example, if, based
on evidence provided by petitioner, the
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39853
Department finds a reasonable basis to
believe or suspect that seamless pipe
produced to the A–335 specification is
being used in an A–106 application, we
will require end-use certifications for
imports of that specification. Normally
we will require only the importer of
record to certify to the end use of the
imported merchandise. If it later proves
necessary for adequate implementation,
we may also require producers who
export such products to the United
States to provide such certification on
invoices accompanying shipments to
the United States.
Although the HTSUS subheadings are
provided for convenience and customs
purposes, our written description of the
merchandise subject to this scope is
dispositive.
Preliminary Determination of No
Shipments
As noted above, all four of the
potential respondents submitted letters
to the Department indicating that they
did not make any shipments or entries
of subject merchandise to the United
States during the POR. In response to
the Department’s query to CBP, CBP
data showed subject merchandise
manufactured by three of the
respondent companies, JFE, NKK, and
SMI, may have entered for consumption
into the United States during the POR.
On December 27, 2010, and January 7,
2011, the Department placed on the
record of this review, copies of the entry
documents in question.
The Department subsequently
confirmed with CBP the no shipment
claim made by Nippon. Because the
evidence on the record indicates that
Nippon did not export subject
merchandise to the United States during
the POR, we preliminarily determine
that Nippon had no reviewable
transactions during the POR.
On January 3, 2011, the Department
sent letters to JFE, NKK, and SMI,
requesting that they further substantiate
their claims of no shipments. On
February 1, 2011, JFE submitted that it
did not make any U.S. sales of subject
merchandise during the POR, nor did it
sell any subject merchandise to any
trading company with the knowledge
that the trading company would export
the subject merchandise to the United
States during the POR, nor did it
initiate, and was not aware of, any
exports from Japan to the United States
of subject merchandise produced by JFE
during the POR. In its response, JFE
explained in detail how its claim of no
knowledge is supported by the record
evidence, and that some of the entries
which entered the United States under
its antidumping case number were non-
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subject merchandise. See Memorandum
to the File, from Joshua Morris,
International Trade Analyst,
‘‘Preliminary Determination of No
Shipments in the Antidumping Duty
Administrative Review on Certain Large
Diameter Carbon and Alloy Seamless
Standard, Line, and Pressure Pipe (Over
41⁄2 Inches) from Japan,’’ June 29, 2011
(‘‘No Shipments Memo’’).
On February 8, 2011, NKK responded
that its statement to the Department on
September 21, 2010, remains accurate,
and reiterated that NKK did not have
shipments of subject merchandise to the
United States during the POR. NKK
explained in detail how its claim of no
knowledge is supported by the record
evidence, and that entries which
entered into the United States during
the POR under its antidumping case
number were non-subject merchandise.
See No Shipments Memo.
On February 15, 2011, SMI submitted
that SMI did not export subject
merchandise to the United States during
the POR. SMI explained that it did sell,
through trading companies, subject
merchandise to distributors and endusers in Japan and third countries. SMI
emphasized that as stated in its August
31, 2010, submission, it did not make
any U.S. sales of subject merchandise
during the POR, nor did it sell any
subject merchandise to any end-users or
distributors with the knowledge that
such end-users or distributors would
export the subject merchandise to the
United States during the POR.
Furthermore, SMI stated that it did not
initiate, and was not aware of, any
exports from Japan or any third
countries to the United States of subject
merchandise produced by SMI during
the POR. In its response, SMI explained
in detail how its claim of no knowledge
is supported by the record evidence. See
No Shipments Memo.
Based on JFE’s and SMI’s submissions
and our review of CBP documentation,
the Department finds that the record
evidence supports JFE’s and SMI’s
claims that, at the time of the sale, JFE
or SMI had no knowledge that any of
these entries of subject merchandise
entered the United States during the
POR. On this basis, we find that subject
merchandise produced by JFE and SMI
entered the United States during the
POR under their antidumping case
number, but did so by way of
intermediaries without the knowledge
of either company.1
Based on NKK’s and JFE’s
submissions and our review of CBP
1 As our decision is based largely on proprietary
information, a full analysis and explanation is
contained in our No Shipments Memo.
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documentation, the Department finds
that the merchandise produced by NKK
and certain of the merchandise
produced by JFE which entered the
United States during the POR under
their respective antidumping case
numbers appears to be non-subject
merchandise. See No Shipments Memo
for full analysis.
Thus, the Department finds that the
respondents’ claims of no shipments or
entries for consumption to be
substantiated. Based upon the
certifications and the evidence on the
record, we are satisfied that no
respondent had shipments of subject
merchandise to the United States during
the POR and, as such, we preliminarily
determine that JFE, SMI, and NKK had
no reviewable transactions during the
POR.
Since the implementation of the 1997
regulations, our practice concerning noshipment respondents had been to
rescind the administrative review if the
respondent certifies that it had no
shipments and we have confirmed
through our examination of CBP data
that there were no shipments of subject
merchandise during the POR. See
Antidumping Duties; Countervailing
Duties, 62 FR 27296, 27393 (May 19,
1997); see also Oil Country Tubular
Goods from Japan: Preliminary Results
of Antidumping Duty Administrative
Review and Partial Rescission of
Review, 70 FR 53161, 53162 (September
5, 2007), unchanged in Oil Country
Tubular Goods from Japan: Final
Results and Partial Rescission of
Antidumping Duty Administrative
Review, 71 FR 95 (January 3, 2006). In
such circumstances, we normally
instructed CBP to liquidate any entries
from the no-shipment company at the
deposit rate in effect on the date of
entry.
In our May 6, 2003, ‘‘automatic
assessment’’ clarification, we explained
that, where respondents in an
administrative review demonstrate that
they had no knowledge of sales through
resellers to the United States, we would
instruct CBP to liquidate such entries at
the all-others rate applicable to the
proceeding. See Antidumping and
Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68
FR 23954 (May 6, 2003) (‘‘Assessment
Policy Notice’’).
Because ‘‘as entered’’ liquidation
instructions do not alleviate the
concerns which the May 2003
clarification was intended to address,
we find it appropriate in this case to
instruct CBP to liquidate any existing
entries of merchandise produced by
Nippon, JFE, SMI, and NKK, and
exported by other parties at the all-
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others rate, should we continue to find
that Nippon, JFE, SMI, and NKK had no
shipments of subject merchandise in the
POR in our final results. See, e.g.,
Magnesium Metal From the Russian
Federation: Preliminary Results of
Antidumping Duty Administrative
Review, 75 FR 26922, 26923 (May 13,
2010), unchanged in Magnesium Metal
From the Russian Federation: Final
Results of Antidumping Duty
Administrative Review, 75 FR 56989,
56990 (September 17, 2010). In
addition, the Department finds that it is
more consistent with the May 2003
clarification not to rescind the review in
part in these circumstances but, rather,
to complete the review with respect to
Nippon, JFE, SMI, and NKK, and issue
appropriate instructions to CBP based
on the final results of the review. See
the ‘‘Assessment Rates’’ section of this
notice below.
Assessment Rates
Upon completion of the
administrative review, the Department
shall determine, and CBP shall assess,
antidumping duties on all appropriate
entries, in accordance with 19 CFR
351.212. The Department intends to
issue appraisement instructions directly
to CBP 15 days after the date of
publication of the final results of this
review.
As noted above, the Department
clarified its ‘‘automatic assessment’’
regulation on May 6, 2003. See
Assessment Policy Notice. This
clarification will apply to POR entries
by all respondent companies if we
continue to make a final determination
of no shipments because they certified
that they made no POR shipments of
subject merchandise for which they had
knowledge of U.S. destination. We will
instruct CBP to liquidate these entries at
the all-others rate established in the
less-than-fair-value investigation (68.88
percent) if there is no rate for the
intermediary involved in the
transaction. See Assessment Policy
Notice for a full discussion of this
clarification.
These preliminary results of
administrative review and notice are
issued and published in accordance
with sections 751(a)(1) and 777(i)(1) of
the Act and 19 CFR 351.221.
Dated: June 29, 2011.
Paul Piquado,
Acting Deputy Assistant Secretary for Import
Administration.
[FR Doc. 2011–17065 Filed 7–6–11; 8:45 am]
BILLING CODE 3510–DS–P
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Agencies
[Federal Register Volume 76, Number 130 (Thursday, July 7, 2011)]
[Notices]
[Pages 39852-39854]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-17065]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-588-850]
Certain Large Diameter Carbon and Alloy Seamless Standard, Line,
and Pressure Pipe (Over 4\1/2\ Inches) From Japan: Preliminary Results
of the Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On July 28, 2010, the U.S. Department of Commerce (``the
Department'') published a notice of initiation of an administrative
review of the antidumping duty order on certain large diameter carbon
and alloy seamless standard, line, and pressure pipe (over 4\1/2\
inches) from Japan. The review covers four manufacturers/exporters: JFE
Steel Corporation (``JFE''); Nippon Steel Corporation (``Nippon''); NKK
Tubes (``NKK''); and Sumitomo Metal Industries, Ltd. (``SMI''). The
period of review (``POR'') is June 1, 2009, through May 31, 2010.
Following the receipt of certifications of no shipments from all four
of the potential respondents, we sought further clarification of
specific entries indicated by U.S. Customs and Border Protection
(``CBP'') data. After analyzing parties' explanations of these entries,
we have reached a preliminary determination of no shipments in this
administrative review. If the preliminary results are adopted in our
final results of this administrative review, we will instruct CBP to
assess antidumping duties on all appropriate entries. Interested
parties are invited to comment on the preliminary results.
DATES: Effective Date: Insert date of publication in the Federal
Register.
FOR FURTHER INFORMATION CONTACT: Joshua Morris, AD/CVD Operations,
Office 1, Import Administration, International Trade Administration,
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW.,
Washington, DC 20230; telephone: (202) 482-1779.
SUPPLEMENTARY INFORMATION:
Background
On June 1, 2010, the Department published a notice of opportunity
to request an administrative review of the antidumping duty order on
carbon and alloy seamless standard, line, and pressure pipe (over
4[frac12] inches) from Japan for the period June 1, 2009, through May
31, 2010. See Antidumping or Countervailing Duty Order, Finding or
Suspended Investigation; Opportunity To Request Administrative Review,
75 FR 30383 (June 1, 2010). On June 30, 2010, United States Steel
Corporation (``U.S. Steel''), a domestic producer of the subject
merchandise, made a timely request that the Department conduct an
administrative review of JFE, Nippon, NKK, and SMI. On July 28, 2010,
in accordance with section 751(a) of the Tariff Act of 1930, as amended
(``the Act''), the Department published in the Federal Register a
notice of initiation of this antidumping duty administrative review.
See Initiation of Antidumping and Countervailing Duty Administrative
Reviews and Requests for Revocations in Part, 75 FR 44224 (July 28,
2010). On August 18, and 31, 2010, Nippon and SMI, respectively,
submitted letters to the Department certifying that each company made
no shipments or entries for consumption in the United States of subject
merchandise during the POR. On August 31, 2010, the Department issued
its antidumping duty questionnaire to JFE and NKK. On September 8, and
21, 2010, JFE and NKK, respectively, submitted letters to the
Department certifying that each company made no shipments or entries
for consumption in the United States of subject merchandise during the
POR.
Scope of the Order
The products covered by the order are large diameter seamless
carbon and alloy (other than stainless) steel standard, line, and
pressure pipes produced, or equivalent, to the American Society for
Testing and Materials (``ASTM'') A-53, ASTM A-106, ASTM A-333, ASTM A-
334, ASTM A-589, ASTM A-795, and the American Petroleum Institute
(``API'') 5L specifications and meeting the physical parameters
described below, regardless of application. The scope of the order also
includes all other products used in standard, line, or pressure pipe
applications and meeting the physical parameters described below,
regardless of specification, with the exception of the exclusions
discussed below. Specifically included within the scope of the order
are seamless pipes greater than 4.5 inches (114.3 mm) up to and
including 16 inches (406.4 mm) 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.
The seamless pipes subject to the order are currently classifiable
under the subheadings 7304.10.10.30, 7304.10.10.45, 7304.10.10.60,
7304.10.50.50, 7304.19.10.30, 7304.19.10.45, 7304.19.10.60,
7304.19.50.50, 7304.31.60.10, 7304.31.60.50, 7304.39.00.04,
7304.39.00.06, 7304.39.00.08, 7304.39.00.36, 7304.39.00.40,
7304.39.00.44, 7304.39.00.48, 7304.39.00.52, 7304.39.00.56,
7304.39.00.62, 7304.39.00.68, 7304.39.00.72, 7304.51.50.15,
7304.51.50.45, 7304.51.50.60, 7304.59.20.30, 7304.59.20.55,
7304.59.20.60, 7304.59.20.70, 7304.59.60.00, 7304.59.80.30,
7304.59.80.35, 7304.59.80.40, 7304.59.80.45, 7304.59.80.50,
7304.59.80.55, 7304.59.80.60, 7304.59.80.65, and 7304.59.80.70 of the
Harmonized Tariff Schedule of the United States (``HTSUS'').
Specifications, Characteristics, and Uses: Large diameter seamless
pipe is used primarily for line applications such as oil, gas, or water
pipeline, or utility distribution systems. 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 A-106
standard 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 A-335 standard must be used if
temperatures and stress levels exceed those allowed for ASTM A-106.
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
[[Page 39853]]
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. If
exceptionally low temperature uses or conditions are anticipated,
standard pipe may be manufactured to ASTM A-333 or ASTM A-334
specifications.
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 water well pipe (ASTM A-
589) and seamless galvanized pipe for fire protection uses (ASTM A-795)
are used for the conveyance of water.
Seamless pipes are commonly produced and certified to meet ASTM A-
106, ASTM A-53, API 5L-B, and API 5L-X42 specifications. To avoid
maintaining separate production runs and separate inventories,
manufacturers typically triple or quadruple certify the pipes by
meeting the metallurgical requirements and performing the required
tests pursuant to the respective specifications. 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 or
quadruple certified pipes in large diameters is for use as oil and gas
distribution lines for commercial applications. A more minor
application for large diameter seamless pipes is for use in pressure
piping systems by refineries, petrochemical plants, and chemical
plants, as well as in power generation plants and in some oil field
uses (on shore and off shore) such as for separator lines, gathering
lines and metering runs. These applications constitute the majority of
the market for the subject seamless pipes. However, ASTM A-106 pipes
may be used in some boiler applications.
The scope of the order includes all seamless pipe meeting the
physical parameters described above and produced to one of the
specifications listed above, regardless of application, with the
exception of the exclusions discussed below, 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 the order. Therefore, seamless pipes
meeting the physical description above, but not produced to the ASTM A-
53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-589, ASTM A-795, and API
5L specifications shall be covered if used in a standard, line, or
pressure application, with the exception of the specific exclusions
discussed below.
For example, there are certain other ASTM specifications of pipe
which, because of overlapping characteristics, could potentially be
used in ASTM A-106 applications. These specifications generally include
ASTM A-161, ASTM A-192, ASTM A-210, ASTM A-252, ASTM A-501, ASTM A-523,
ASTM A-524, and ASTM A-618. When such pipes are used in a standard,
line, or pressure pipe application, such products are covered by the
scope of the order.
Specifically excluded from the scope of the order are: A. Boiler
tubing and mechanical tubing, if such products are not produced to ASTM
A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-589, ASTM A-795, and
API 5L specifications and are not used in standard, line, or pressure
pipe applications. B. Finished and unfinished oil country tubular goods
(``OCTG''), 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 the scope when used in standard,
line or pressure applications. C. Products produced to the A-335
specification unless they are used in an application that would
normally utilize ASTM A-53, ASTM A-106, ASTM A-333, ASTM A-334, ASTM A-
589, ASTM A-795, and API 5L specifications. D. Line and riser pipe for
deepwater application, i.e., line and riser pipe that is: (1) Used in a
deepwater application, which means for use in water depths of 1,500
feet or more; (2) intended for use in and is actually used for a
specific deepwater project; (3) rated for a specified minimum yield
strength of not less than 60,000 psi; and (4) not identified or
certified through the use of a monogram, stencil, or otherwise marked
with an API specification (e.g., ``API 5L'').
With regard to the excluded products listed above, the Department
will not instruct CBP to require end-use certification until such time
as petitioner or other interested parties provide to the Department a
reasonable basis to believe or suspect that the products are being
utilized in a covered application. If such information is provided, we
will require end-use certification only for the product(s) (or
specification(s)) for which evidence is provided that such products are
being used in a covered application as described above. For example,
if, based on evidence provided by petitioner, the Department finds a
reasonable basis to believe or suspect that seamless pipe produced to
the A-335 specification is being used in an A-106 application, we will
require end-use certifications for imports of that specification.
Normally we will require only the importer of record to certify to the
end use of the imported merchandise. If it later proves necessary for
adequate implementation, we may also require producers who export such
products to the United States to provide such certification on invoices
accompanying shipments to the United States.
Although the HTSUS subheadings are provided for convenience and
customs purposes, our written description of the merchandise subject to
this scope is dispositive.
Preliminary Determination of No Shipments
As noted above, all four of the potential respondents submitted
letters to the Department indicating that they did not make any
shipments or entries of subject merchandise to the United States during
the POR. In response to the Department's query to CBP, CBP data showed
subject merchandise manufactured by three of the respondent companies,
JFE, NKK, and SMI, may have entered for consumption into the United
States during the POR. On December 27, 2010, and January 7, 2011, the
Department placed on the record of this review, copies of the entry
documents in question.
The Department subsequently confirmed with CBP the no shipment
claim made by Nippon. Because the evidence on the record indicates that
Nippon did not export subject merchandise to the United States during
the POR, we preliminarily determine that Nippon had no reviewable
transactions during the POR.
On January 3, 2011, the Department sent letters to JFE, NKK, and
SMI, requesting that they further substantiate their claims of no
shipments. On February 1, 2011, JFE submitted that it did not make any
U.S. sales of subject merchandise during the POR, nor did it sell any
subject merchandise to any trading company with the knowledge that the
trading company would export the subject merchandise to the United
States during the POR, nor did it initiate, and was not aware of, any
exports from Japan to the United States of subject merchandise produced
by JFE during the POR. In its response, JFE explained in detail how its
claim of no knowledge is supported by the record evidence, and that
some of the entries which entered the United States under its
antidumping case number were non-
[[Page 39854]]
subject merchandise. See Memorandum to the File, from Joshua Morris,
International Trade Analyst, ``Preliminary Determination of No
Shipments in the Antidumping Duty Administrative Review on Certain
Large Diameter Carbon and Alloy Seamless Standard, Line, and Pressure
Pipe (Over 4\1/2\ Inches) from Japan,'' June 29, 2011 (``No Shipments
Memo'').
On February 8, 2011, NKK responded that its statement to the
Department on September 21, 2010, remains accurate, and reiterated that
NKK did not have shipments of subject merchandise to the United States
during the POR. NKK explained in detail how its claim of no knowledge
is supported by the record evidence, and that entries which entered
into the United States during the POR under its antidumping case number
were non-subject merchandise. See No Shipments Memo.
On February 15, 2011, SMI submitted that SMI did not export subject
merchandise to the United States during the POR. SMI explained that it
did sell, through trading companies, subject merchandise to
distributors and end-users in Japan and third countries. SMI emphasized
that as stated in its August 31, 2010, submission, it did not make any
U.S. sales of subject merchandise during the POR, nor did it sell any
subject merchandise to any end-users or distributors with the knowledge
that such end-users or distributors would export the subject
merchandise to the United States during the POR. Furthermore, SMI
stated that it did not initiate, and was not aware of, any exports from
Japan or any third countries to the United States of subject
merchandise produced by SMI during the POR. In its response, SMI
explained in detail how its claim of no knowledge is supported by the
record evidence. See No Shipments Memo.
Based on JFE's and SMI's submissions and our review of CBP
documentation, the Department finds that the record evidence supports
JFE's and SMI's claims that, at the time of the sale, JFE or SMI had no
knowledge that any of these entries of subject merchandise entered the
United States during the POR. On this basis, we find that subject
merchandise produced by JFE and SMI entered the United States during
the POR under their antidumping case number, but did so by way of
intermediaries without the knowledge of either company.\1\
---------------------------------------------------------------------------
\1\ As our decision is based largely on proprietary information,
a full analysis and explanation is contained in our No Shipments
Memo.
---------------------------------------------------------------------------
Based on NKK's and JFE's submissions and our review of CBP
documentation, the Department finds that the merchandise produced by
NKK and certain of the merchandise produced by JFE which entered the
United States during the POR under their respective antidumping case
numbers appears to be non-subject merchandise. See No Shipments Memo
for full analysis.
Thus, the Department finds that the respondents' claims of no
shipments or entries for consumption to be substantiated. Based upon
the certifications and the evidence on the record, we are satisfied
that no respondent had shipments of subject merchandise to the United
States during the POR and, as such, we preliminarily determine that
JFE, SMI, and NKK had no reviewable transactions during the POR.
Since the implementation of the 1997 regulations, our practice
concerning no-shipment respondents had been to rescind the
administrative review if the respondent certifies that it had no
shipments and we have confirmed through our examination of CBP data
that there were no shipments of subject merchandise during the POR. See
Antidumping Duties; Countervailing Duties, 62 FR 27296, 27393 (May 19,
1997); see also Oil Country Tubular Goods from Japan: Preliminary
Results of Antidumping Duty Administrative Review and Partial
Rescission of Review, 70 FR 53161, 53162 (September 5, 2007), unchanged
in Oil Country Tubular Goods from Japan: Final Results and Partial
Rescission of Antidumping Duty Administrative Review, 71 FR 95 (January
3, 2006). In such circumstances, we normally instructed CBP to
liquidate any entries from the no-shipment company at the deposit rate
in effect on the date of entry.
In our May 6, 2003, ``automatic assessment'' clarification, we
explained that, where respondents in an administrative review
demonstrate that they had no knowledge of sales through resellers to
the United States, we would instruct CBP to liquidate such entries at
the all-others rate applicable to the proceeding. See Antidumping and
Countervailing Duty Proceedings: Assessment of Antidumping Duties, 68
FR 23954 (May 6, 2003) (``Assessment Policy Notice'').
Because ``as entered'' liquidation instructions do not alleviate
the concerns which the May 2003 clarification was intended to address,
we find it appropriate in this case to instruct CBP to liquidate any
existing entries of merchandise produced by Nippon, JFE, SMI, and NKK,
and exported by other parties at the all-others rate, should we
continue to find that Nippon, JFE, SMI, and NKK had no shipments of
subject merchandise in the POR in our final results. See, e.g.,
Magnesium Metal From the Russian Federation: Preliminary Results of
Antidumping Duty Administrative Review, 75 FR 26922, 26923 (May 13,
2010), unchanged in Magnesium Metal From the Russian Federation: Final
Results of Antidumping Duty Administrative Review, 75 FR 56989, 56990
(September 17, 2010). In addition, the Department finds that it is more
consistent with the May 2003 clarification not to rescind the review in
part in these circumstances but, rather, to complete the review with
respect to Nippon, JFE, SMI, and NKK, and issue appropriate
instructions to CBP based on the final results of the review. See the
``Assessment Rates'' section of this notice below.
Assessment Rates
Upon completion of the administrative review, the Department shall
determine, and CBP shall assess, antidumping duties on all appropriate
entries, in accordance with 19 CFR 351.212. The Department intends to
issue appraisement instructions directly to CBP 15 days after the date
of publication of the final results of this review.
As noted above, the Department clarified its ``automatic
assessment'' regulation on May 6, 2003. See Assessment Policy Notice.
This clarification will apply to POR entries by all respondent
companies if we continue to make a final determination of no shipments
because they certified that they made no POR shipments of subject
merchandise for which they had knowledge of U.S. destination. We will
instruct CBP to liquidate these entries at the all-others rate
established in the less-than-fair-value investigation (68.88 percent)
if there is no rate for the intermediary involved in the transaction.
See Assessment Policy Notice for a full discussion of this
clarification.
These preliminary results of administrative review and notice are
issued and published in accordance with sections 751(a)(1) and
777(i)(1) of the Act and 19 CFR 351.221.
Dated: June 29, 2011.
Paul Piquado,
Acting Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-17065 Filed 7-6-11; 8:45 am]
BILLING CODE 3510-DS-P