[Federal Register Volume 75, Number 111 (Thursday, June 10, 2010)]
[Notices]
[Pages 32911-32914]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-13974]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-583-008]
Preliminary Results of Antidumping Duty Administrative Review:
Circular Welded Carbon Steel Pipes and Tubes From Taiwan
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) is conducting an
administrative review of the antidumping duty order on circular welded
carbon steel pipes and tubes from Taiwan for the period May 1, 2008, to
April 30, 2009 (the POR). We preliminarily determine that sales of
subject merchandise by Yieh Phui Enterprise Co., Ltd. (Yieh Phui) have
been made below normal value (NV). If these preliminary results are
adopted in our final results, we will instruct U.S. Customs and Border
Protection (CBP) to assess antidumping duties on appropriate entries.
Interested parties are invited to comment on these preliminary results.
We will issue the final results no later than 120 days from the
publication of this notice.
DATES: Effective Date: June 10, 2010.
FOR FURTHER INFORMATION CONTACT: Steve Bezirganian or Robert James, AD/
CVD Operations, Office 7, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street & Constitution
[[Page 32912]]
Avenue, NW., Washington, DC 20230; telephone: (202) 482-1131 or (202)
482-0649, respectively.
SUPPLEMENTARY INFORMATION:
Background
On October 29, 2002, the Department published in the Federal
Register an antidumping duty order on circular welded carbon steel
pipes and tubes from Taiwan. See Certain Circular Welded Carbon Steel
Pipes and Tubes From Taiwan: Antidumping Duty Order, 49 FR 19369 (May
7, 1984) (Antidumping Duty Order). On May 1, 2009, the Department
issued a notice of opportunity to request an administrative review of
this order for the POR. See Antidumping or Countervailing Duty Order,
Finding, or Suspended Investigation; Opportunity To Request
Administrative Review, 74 FR 20278 (May 1, 2009). On June 1, 2009, a
domestic producer, Wheatland Tube Company (petitioner), requested an
administrative review of Yieh Phui Enterprise Co., Ltd. On June 24,
2009, the Department published the notice of initiation of this
antidumping duty administrative review. See Initiation of Antidumping
and Countervailing Duty Administrative Reviews and Requests for
Revocation in Part, 74 FR 30052 (June 24, 2009).
Yieh Phui submitted a response to Section A of the Department's
questionnaire on July 31, 2009, and a response to Sections B, C, and D
of the Department's questionnaire on August 31, 2009. In response to
the Department's August 25, 2009, supplemental questionnaire pertaining
to Yieh Phui's Section A response, Yieh Phui submitted a response on
September 18, 2009. In response to the Department's November 6, 2009,
supplemental questionnaire covering Yieh Phui's Sections A-D responses,
Yieh Phui submitted a response for Section A on November 30, 2009, and
a response for Sections B-D on December 8, 2009. On December 15, 2009,
the Department issued a supplemental questionnaire covering product
characteristic issues, to which Yieh Phui responded on December 22,
2009. In response to the Department's January 29, 2010, supplemental
questionnaire covering Yieh Phui's earlier Section A-D and product
characteristic questionnaire responses, Yieh Phui submitted responses
on February 16, 2010 (Section A) and March 10, 2010 (Sections B-D). On
April 22, 2010, the Department issued a supplemental questionnaire
relating to information from various Yieh Phui submissions. Yieh Phui
submitted a response (including its final sales and cost databases) on
May 14, 2010.
On January 11, 2010, the Department published an extension of the
preliminary results of the administrative review. See Circular Welded
Carbon Steel Pipes and Tubes from Taiwan; Extension of Time Limit for
Preliminary Results of Antidumping Duty Administrative Review, 75 FR
1335 (January 11, 2010). On February 12, 2010, the Department tolled
administrative deadlines, including in the instant review, by one
calendar week. See ``Tolling of Administrative Deadlines As a Result of
the Government Closure During the Recent Snowstorm,'' dated February
12, 2010. As a result, the deadline for the issuance of the preliminary
results of the instant review is June 7, 2010.
Scope of the Order
The merchandise covered by this order is certain circular welded
carbon steel pipes and tubes from Taiwan, which are defined as: Welded
carbon steel pipes and tubes, of circular cross section, with walls not
thinner than 0.065 inch, and 0.375 inch or more but not over 4.5 inches
in outside diameter, currently classified under Harmonized Tariff
Schedule of the United States (HTSUS) item numbers 7306.30.5025,
7306.30.5032, 7306.30.5040, and 7306.30.5055. Although the HTSUS
subheading is provided for convenience and customs purposes, the
written description of the merchandise subject to this order is
dispositive.
Export Price
For the price to the United States, we used export price (EP), as
defined in section 772(a) of the Tariff Act of 1930, as amended (the
Act). Section 772(a) of the Act defines EP as the price at which the
subject merchandise is first sold before the date of importation by the
producer or exporter outside of the United States to an unaffiliated
purchaser in the United States or to an unaffiliated purchaser for
exportation to the United States, as adjusted under section 772(c) of
the Act. We calculated an EP for Yieh Phui's U.S. sales because they
were made directly to the first unaffiliated purchaser in the United
States prior to importation and constructed export price (CEP) was not
otherwise warranted based on the facts on the record.
For EP sales, we made deductions from the starting price (gross
unit price), where appropriate, for movement expenses in accordance
with section 772(c)(2)(A) of the Act. Movement expenses included inland
freight, warehousing expenses, brokerage fees, trade promotion fees,
harbor maintenance fees, and international freight.
Normal Value
A. Selection of Comparison Market
Section 773(a)(1) of the Act directs that NV be based on the price
at which the foreign like product is sold in the home market, provided
the merchandise is sold in sufficient quantities (or value, if quantity
is inappropriate) and that there is not a particular market situation
that prevents a proper comparison with sales to the United States. The
statute contemplates that quantities (or value) will normally be
considered insufficient if they are less than five percent of the
aggregate quantity (or value) of sales of the subject merchandise to
the United States. See section 773(a)(1) of the Act.
We found that Yieh Phui had a viable home market for circular
welded carbon steel pipes and tubes because its home market sales, by
quantity, exceeded the five percent threshold. See ``Analysis
Memorandum for Yieh Phui Enterprise Co., Ltd. (Yieh Phui): Circular
Welded Carbon Steel Pipes and Tubes from Taiwan (A-583-008), May 1,
2008--April 30, 2009'' (Yieh Phui Preliminary Analysis Memorandum) at
2. Yieh Phui submitted home market sales data for purposes of the
calculation of NV. In deriving NV, we made adjustments as detailed in
the ``Calculation of Normal Value Based on Comparison Market Prices''
section below.
B. Arm's-Length Sales
The respondent reported sales of the foreign like product to
affiliated customers, which, according to Yieh Phui, consumed the
merchandise. To test whether these sales to affiliated customers were
made at arm's length, where possible, we compared the prices of sales
to affiliated and unaffiliated customers, net of all movement charges,
direct selling expenses, and packing. Where the price to that
affiliated party was, on average, within a range of 98 to 102 percent
of the price of the same or comparable merchandise sold to the
unaffiliated parties at the same level of trade, we determined that the
sales made to the affiliated party were at arm's length. See
Modification Concerning Affiliated Party Sales in the Comparison
Market, 67 FR 69186 (November 15, 2002). Yieh Phui's sales to
affiliated parties that were determined not to be at arm's length were
disregarded in the cost test and in the comparison to U.S. sales.
[[Page 32913]]
C. Cost of Production Analysis
Because we disregarded below-cost sales in the most recently
completed segment of the proceeding, we had reasonable grounds to
believe or suspect that home market sales of the foreign like product
by the respondent were made at prices below the cost of production
(COP) during the POR, in accordance with section 773(b)(2)(A)(ii) of
the Act. See ``Yieh Phui Preliminary Analysis Memorandum'' at 7.
Therefore, we required Yieh Phui to submit a response to Section D of
the Department's Questionnaire.
1. Calculation of Cost of Production
In accordance with section 773(b)(3) of the Act, we calculated the
weighted-average COP by model based on the sum of materials,
fabrication, general and administrative (G&A), and interest expenses.
For more details, see ``Yieh Phui Preliminary Analysis Memorandum'' at
7-8.
2. Test of Comparison Market Sales Prices
We compared the weighted-average COPs for the respondent to its
home market sales prices of the foreign like product, as required under
section 773(b) of the Act, to determine whether these sales had been
made at prices below the COP within an extended period of time (i.e.,
normally a period of one year) in substantial quantities and whether
such prices were sufficient to permit the recovery of all costs within
a reasonable period of time. On a model-specific basis, we compared the
COP to the home market prices, less any applicable movement charges,
discounts, rebates, and direct and indirect selling expenses.
3. Results of the COP Test
We disregard below-cost sales where: (1) 20 percent or more of the
respondent's sales of a given product during the POR were made at
prices below the COP in accordance with sections 773(b)(2)(B) and (C)
of the Act; and (2) based on comparisons of price to weighted-average
COPs for the POR, we determine that the below-cost sales of the product
were at prices that would not permit recovery of all costs within a
reasonable time period, in accordance with section 773(b)(2)(D) of the
Act. We found Yieh Phui made sales below cost and we disregarded such
sales where appropriate. See ``Yieh Phui Preliminary Analysis
Memorandum'' at 8.
D. Calculation of Normal Value Based on Comparison-Market Prices
We determined NV for Yieh Phui as follows. We made deductions from
the gross price to account for discounts and rebates. We deducted home
market packing costs and added U.S. packing costs, in accordance with
sections 773(a)(6)(A) and (B) of the Act. We also deducted home market
movement expenses pursuant to section 773(a)(6)(B) of the Act. In
addition, we made adjustments for differences in circumstances of sale
(COS) pursuant to section 773(a)(6)(C)(iii) of the Act. Specifically,
we made adjustments to normal value for comparison to Yieh Phui's EP
transactions by deducting direct selling expenses incurred for home
market sales (i.e., credit expenses) and adding U.S. direct selling
expenses (i.e., credit expenses, bank charges, and cargo certification
fees) and U.S. commissions. See section 773(a)(6)(C)(iii) of the Act,
and 19 CFR 351.410(c). Where we compared Yieh Phui's U.S. sales to home
market sales of merchandise, we made adjustments, where appropriate,
for physical differences in the merchandise in accordance with section
773(a)(6)(C)(ii) of the Act.
E. Calculation of Normal Value Based on Constructed Value
Section 773(a)(4) of the Act provides that, where NV cannot be
based on comparison-market sales, NV may be based on constructed value
(CV). Accordingly, for those models of circular welded carbon steel
pipes and tubes for which we could not determine the NV based on
comparison-market sales, either because there were no sales of a
comparable product or all sales of the comparison products failed the
COP test, we based NV on CV.
Section 773(e)(1) of the Act provides that CV shall be based on the
sum of the cost of materials and fabrication for the imported
merchandise plus amounts for selling, general, and administrative
expenses (SG&A), interest expenses, profit, and U.S. packing expenses.
We calculated the cost of materials and fabrication based on the
methodology described in the COP section of this notice. We based SG&A
and profit on the actual amounts incurred and realized by the
respondent in connection with the production and sale of the foreign
like product in the ordinary course of trade, for consumption in the
comparison market, in accordance with section 773(e)(2)(A) of the Act.
We made adjustments to CV for differences in COS in accordance with
section 773(a)(8) of the Act and 19 CFR 351.410. We deducted direct
selling expenses incurred for home market sales (i.e., credit
expenses). See section 773(a)(6)(C)(iii) of the Act and 19 CFR
351.410(c). We added U.S. direct selling expenses (i.e., credit
expenses, bank charges, and cargo certification fees) and U.S.
commissions to the NV.
F. Level of Trade/Constructed Export Price Offset
In accordance with section 773(a)(1)(B) of the Act, we determine NV
based on sales in the comparison market at the same level of trade
(LOT) as the EP and CEP sales, to the extent practicable. When there
are no sales at the same LOT, we compare U.S. sales to comparison
market sales at a different LOT. When NV is based on CV, the NV LOT is
that of the sales from which we derive SG&A expenses and profit.
Pursuant to 19 CFR 351.412(c)(2), to determine whether comparison
market sales were at a different LOT, we examine stages in the
marketing process and selling functions along the chain of distribution
between the producer and the unaffiliated (or arm's-length) customers.
The Department identifies the LOT based on: The starting price or
constructed value (for normal value); the starting price (for EP
sales); and the starting price, as adjusted under section 772(d) of the
Act (for CEP sales). If the comparison-market sales were at a different
LOT and the differences affect price comparability, as manifested in a
pattern of consistent price differences between the sales on which NV
is based and comparison-market sales at the LOT of the export
transaction, we will make an LOT adjustment under section 773(a)(7)(A)
of the Act.
Finally, if the NV LOT is more remote from the factory than the CEP
LOT and there is no basis for determining whether the differences in
LOT between NV and CEP affected price comparability, we will grant a
CEP offset, as provided in section 773(a)(7)(B) of the Act.
Yieh Phui indicated there was a single level of trade for all sales
in both markets, and petitioner has not claimed that multiple levels of
trade existed for Yieh Phui. Yieh Phui provided responses to the
Department's questions regarding channels of distribution and selling
activities performed for different categories of customers. See Yieh
Phui's July 31, 2009 Section A response, at 12-14. Yieh Phui's chart of
numerous specific selling functions indicates the selling functions
performed for sales in both markets are virtually identical, with no
significant variation across the broader categories of sales process/
marketing support, freight and delivery, inventory and warehousing, and
quality assurance/warranty services. For more details, see ``Yieh Phui
Preliminary Analysis Memorandum.'' We have
[[Page 32914]]
preliminarily determined there is one single level of trade for all
sales in both the home market and the U.S. market, and, therefore, that
no basis exists for a level of trade adjustment.
Currency Conversion
We made currency conversions into U.S. dollars in accordance with
section 773A of the Act, based on exchange rates in effect on the date
of the U.S. sale, as provided by the Federal Reserve Bank. See also 19
CFR 351.415.
Preliminary Results of Review
As a result of this review, we preliminarily determine the
following weighted-average margin exists for the period May 1, 2008,
through April 30, 2009:
------------------------------------------------------------------------
Weighted-
average
Producer/exporter margin
(percentage)
------------------------------------------------------------------------
Yieh Phui Enterprise Co., Ltd............................. 5.04
------------------------------------------------------------------------
Disclosure and Public Comment
In accordance with 19 CFR 351.224(b), the Department will disclose
calculations performed within five days of publication of this notice.
Interested parties may submit case briefs and/or written comments no
later than 30 days after the date of publication of these preliminary
results. See 19 CFR 351.309(c)(ii). Rebuttal briefs and rebuttals to
written comments, limited to issues raised in such briefs or comments,
may be filed no later than five days after submission of case briefs.
See 19 CFR 351.309(d). Parties who submit arguments are requested to
submit with the argument: (1) A statement of the issues; (2) a brief
summary of the arguments; and (3) a table of authorities. Further,
parties submitting written comments should provide the Department with
an additional copy of the public version of any such comments on
diskette. An interested party may request a hearing within 30 days of
publication of these preliminary results. See 19 CFR 351.310(c). Any
hearing, if requested, will be held two days after the date for
submission of rebuttal briefs, or the first working day thereafter. The
Department will issue the final results of this administrative review,
which will include the results of its analysis of issues raised in any
such comments, within 120 days of publication of these preliminary
results, pursuant to section 751(a)(3) of the Act.
Assessment
Upon completion of the administrative review, pursuant to 19 CFR
351.212(b), the Department will calculate an assessment rate on all
appropriate entries. The Department will issue appropriate appraisement
instructions for the company subject to this review directly to CBP 15
days after the date of publication of the final results of this review.
Because Yieh Phui did not report the entered value of its sales, we
will calculate importer-specific (or customer-specific) per-unit duty
assessment rates by aggregating the total amount of antidumping duties
calculated for the examined sales of each importer (or customer) and
dividing each of these amounts by the respective quantities (by weight)
associated with those sales. To determine whether the duty assessment
rates are de minimis, in accordance with the requirement set forth in
19 CFR 351.106(c)(2), we will calculate importer-specific (or customer-
specific) ad valorem ratios based on estimated entered values.
We will instruct CBP to assess antidumping duties on all
appropriate entries covered by this review for each importer (or
customer) for which the importer-specific (or customer-specific) ad
valorem ratio is above de minimis (i.e., at or above 0.50 percent).
Pursuant to 19 CFR 351.106(c)(2), we will instruct CBP to liquidate
without regard to antidumping duties any entries for which the
importer-specific (or customer-specific) ad valorem ratio is de minimis
(i.e., less than 0.50 percent).
The Department clarified its ``automatic assessment'' regulation on
May 6, 2003. See Antidumping and Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) (Assessment
Policy Notice). This clarification will apply to entries of subject
merchandise during the POR produced by the company included in the
final results where the reviewed companies did not know the merchandise
it sold to the intermediary (e.g., a reseller, trading company, or
exporter) was destined for the United States. In such instances, we
will instruct CBP to liquidate unreviewed entries at the all-others
rate if there was no rate calculated in this review for the
intermediary involved in the transaction. See id., 68 FR at 23954.
Cash Deposit Requirements
The following deposit rates will be effective upon publication of
the final results of this administrative review for all shipments of
circular welded carbon steel pipes and tubes from Taiwan entered, or
withdrawn from warehouse, for consumption on or after the publication
date, as provided by section 751(a)(1) of the Act: (1) The cash deposit
rate for Yieh Phui will be the rate established in the final results of
this review, except if a rate is less than 0.50 percent, and therefore
de minimis, the cash deposit will be zero; (2) for previously reviewed
or investigated companies not listed above, the cash deposit rate will
continue to be the company-specific rate published for the most recent
period; (3) if the exporter is not a firm covered in this review, a
prior review, or the less-than-fair-value (LTFV) investigation, but the
manufacturer is, the cash deposit rate will be the rate established for
the most recent period for the manufacturer of the merchandise; and (4)
if neither the exporter nor the manufacturer is a firm covered in this
or any previous review conducted by the Department, the cash deposit
rate will be 9.70 percent, the all-others rate established in the LTFV
investigation. See Antidumping Duty Order.
These cash deposit requirements, when imposed, shall remain in
effect until publication of the final results of the next
administrative review.
Notification to Importers
This notice serves as a preliminary reminder to importers of their
responsibility under 19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this review period. Failure to comply
with this requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
These preliminary results are issued and published in accordance
with sections 751(a)(1) and 777(i)(1) of the Act.
Dated: June 4, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-13974 Filed 6-9-10; 8:45 am]
BILLING CODE 3510-DS-P