[Federal Register Volume 75, Number 118 (Monday, June 21, 2010)]
[Notices]
[Pages 34980-34982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-14945]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-809]


Circular Welded Non-Alloy Steel Pipe from the Republic of Korea: 
Final Results of the Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY:  On December 8, 2009, the Department of Commerce (the 
``Department'') published the preliminary results of the administrative 
review of the antidumping duty order on circular welded non-alloy steel 
pipe (``CWP'') from the Republic of Korea (``Korea''), covering the 
period November 1, 2007, through October 31, 2008. See Circular Welded 
Non-Alloy Steel Pipe from the Republic of Korea: Preliminary Results 
and Rescission in Part of the Antidumping Duty Administrative Review, 
74 FR 64670 (December 8, 2009) (``Preliminary Results''). This review 
covers six producers/exporters of the subject merchandise to the United 
States: SeAH Steel Corporation (``SeAH''), Dongbu Steel Co., Ltd., 
Korea Iron & Steel Co., Ltd., Union Steel Co., Ltd., Nexteel Co. Ltd., 
and A-JU Besteel Co., Ltd. SeAH is the only mandatory respondent. We 
gave the interested parties an opportunity to comment on the 
Preliminary Results. Based on our analysis of the comments received and 
the results of verification, we have made changes to the margin 
calculation. The

[[Page 34981]]

final weighted-average dumping margins for the reviewed firms are 
listed below in the section entitled ``Final Results of Review.''

EFFECTIVE DATE: June 21, 2010.

FOR FURTHER INFORMATION CONTACT: Alexander Montoro or Nancy Decker, AD/
CVD Operations, Office 1, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, N.W., Washington, DC 20230; telephone (202) 482-
0238 or (202) 482-0196, respectively.

SUPPLEMENTARY INFORMATION:

Background

    Following the Preliminary Results, the Department issued an 
additional supplemental questionnaire to SeAH on December 11, 2009, and 
SeAH responded on December 29, 2009.
    From January 18 through January 22, 2010, we conducted the home 
market sales verification of the questionnaire responses of SeAH, and 
from February 8 through February 10, 2010, we conducted the U.S. sales 
verification of the questionnaire responses of SeAH at Pusan Pipe 
America (``PPA''). The Department released its verification reports for 
SeAH and PPA to interested parties on April 12, 2010.
    As explained in the memorandum from the Deputy Assistant Secretary 
for Import Administration, the Department exercised its discretion to 
toll deadlines for the duration of the closure of the Federal 
Government from February 5, through February 12, 2010. Thus, all 
deadlines in this segment of the proceeding were extended by seven 
days. The revised deadline for the final results of this administrative 
review was thus extended to April 14, 2010. See Memorandum to the 
Record from Ronald Lorentzen, DAS for Import Administration, regarding 
``Tolling of Administrative Deadlines As a Result of the Government 
Closure During the Recent Snowstorms,'' dated February 12, 2010.
    On March 23, 2010, the Department published in the Federal Register 
an extension of the time limit for the completion of the final results 
of this review until no later than June 14, 2010, in accordance with 
section 751(a)(3)(A) of the Tariff Act of 1930, as amended (`` the 
Act''), and 19 CFR 351.213(h)(2). See Circular Welded Non-Alloy Steel 
Pipe from the Republic of Korea: Extension of Time Limit for the Final 
Results and Rescission in Part of the Antidumping Duty Administrative 
Review, 75 FR 13729 (March 23, 2010).
    We invited parties to comment on the Preliminary Results. We 
received case briefs on April 26, 2010, from SeAH and the petitioners, 
United States Steel Corporation (``U.S. Steel''), Allied Tube and 
Conduit Corporation and TMK IPSCO Tubulars. On May 3, 2010, SeAH and 
U.S. Steel submitted rebuttal briefs. None of the parties requested a 
hearing.

Scope of the Order

    The merchandise subject to this review is circular welded non-alloy 
steel pipe and tube, of circular cross-section, not more than 406.4mm 
(16 inches) in outside diameter, regardless of wall thickness, surface 
finish (black, galvanized, or painted), or end finish (plain end, 
beveled end, threaded, or threaded and coupled). These pipes and tubes 
are generally known as standard pipes and tubes and are intended for 
the low-pressure conveyance of water, steam, natural gas, air, and 
other liquids and gases in plumbing and heating systems, air-
conditioning units, automatic sprinkler systems, and other related 
uses. Standard pipe may also be used for light load-bearing 
applications, such as for fence tubing, and as structural pipe tubing 
used for framing and as support members for reconstruction or load-
bearing purposes in the construction, shipbuilding, trucking, farm 
equipment, and other related industries. Unfinished conduit pipe is 
also included in this review.
    All carbon-steel pipes and tubes within the physical description 
outlined above are included within the scope of this review except line 
pipe, oil-country tubular goods, boiler tubing, mechanical tubing, pipe 
and tube hollows for redraws, finished scaffolding, and finished 
conduit. In accordance with the Department's Final Negative 
Determination of Scope Inquiry on Certain Circular Welded Non-Alloy 
Steel Pipe and Tube From Brazil, the Republic of Korea, Mexico, and 
Venezuela, 61 FR 11608 (March 21, 1996), pipe certified to the API 5L 
line-pipe specification and pipe certified to both the API 5L line-pipe 
specifications and the less-stringent ASTM A-53 standard-pipe 
specifications, which falls within the physical parameters as outlined 
above, and entered as line pipe of a kind used for oil and gas 
pipelines is outside of the scope of the antidumping duty order.
    Imports of these products are currently classifiable under the 
following Harmonized Tariff Schedule (``HTS'') subheadings: 
7306.30.10.00, 7306.30.50.25, 7306.30.50.32, 7306.30.50.40, 
7306.30.50.55, 7306.30.50.85, and 7306.30.50.90. Although the HTS 
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 the case briefs are addressed in the ``Issues 
and Decision Memorandum for the 2007-2008 Administrative Review of 
Circular Welded Non-Alloy Steel Pipe from the Republic of Korea'' 
(``Issues and Decision Memorandum''), which is dated concurrently with 
and hereby adopted by this notice. A list of the issues which parties 
raised and to which we responded in the Issues and Decision Memorandum 
is attached to this notice as an Appendix. The Issues and Decision 
Memorandum is a public document which is on file in the Central Records 
Unit in room 1117 in the main Department building, and is accessible on 
the web at http://www.ia.ita.doc.gov/frn. The paper copy and electronic 
version of the memorandum are identical in content.

Changes Since the Preliminary Results

    Based on our analysis of the comments received, we made the 
following changes in calculating dumping margins: (1) we revised the 
calculations from the Preliminary Results to account for minor 
corrections that SeAH submitted during the home market and constructed 
export price (``CEP'') sales verifications; (2) we included SeAH's 
allowance for doubtful accounts in the indirect selling expense 
calculation; (3) we reclassified the reported grades of certain pipes 
for product comparison purposes; (4) we treated all of SeAH's letter of 
credit charges related to its U.S. sales as direct selling expenses; 
(5) we corrected the margin program by calculating SeAH's dumping 
margin by comparing monthly weighted-average normal values to 
individual U.S. prices; and (6) excluded inventory valuation losses 
from SeAH's cost calculations. For further details, see ``Cost of 
Production and Constructed Value Calculation Adjustments for the Final 
Results - SeAH Steel Corporation,'' and ``Final Results Calculation 
Memorandum for SeAH Steel Corporation,'' and see also Issues and 
Decision Memorandum, all dated June 14, 2010.

Cost of Production

    Consistent with the Preliminary Results, we disregarded home market 
sales by SeAH that failed the cost-of-production test.

Final Results of the Review

    We determine that a weighted-average dumping margin exists for the 
mandatory respondent, SeAH, for the

[[Page 34982]]

period November 1, 2007, through October 31, 2008. Respondents other 
than mandatory respondents normally receive the weighted-average of the 
margins calculated for those companies selected for individual review 
(i.e., mandatory respondents), excluding de minimis margins or margins 
based entirely on adverse facts available. In this case, respondents 
other than SeAH are receiving SeAH's calculated margin as SeAH is the 
only remaining mandatory respondent.

------------------------------------------------------------------------
                                                       Weighted-average
                Manufacturer/exporter                   margin percent
------------------------------------------------------------------------
SeAH Steel Corporation..............................                3.28
Dongbu Steel Co., Ltd...............................                3.28
Korea Iron & Steel Co., Ltd.........................                3.28
Union Steel Co., Ltd................................                3.28
Nexteel Co., Ltd....................................                3.28
A-JU Besteel Co., Ltd...............................                3.28
------------------------------------------------------------------------

Public Comment

    The Department will disclose calculations performed within five 
days of the date of publication of this notice to the parties to this 
proceeding in accordance with 19 CFR 351.224(b).

Assessment Rates

    The Department shall determine, and U.S. Customs and Border 
Protection (``CBP'') shall assess, antidumping duties on all 
appropriate entries, in accordance with 19 CFR 351.212(b)(1). The 
Department will issue appropriate appraisement instructions for the 
companies subject to this review directly to CBP 15 days after the date 
of publication of these final results of this review.
    For SeAH, we will calculate importer-specific ad valorem duty 
assessment rates based on the ratio of the total amount of antidumping 
duties calculated for the examined sales to the total entered value of 
the sales, as reported by SeAH. See 19 CFR 351.212(b)(1). For the 
companies which were not selected for individual review, we will use 
SeAH's cash deposit rate as the assessment rate. Pursuant to 19 CFR 
351.106(c)(2), we will instruct CBP to liquidate without regard to 
antidumping duties any entries for which the assessment rate 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 period of review (``POR'') 
produced by companies included in these final results of review for 
which the reviewed companies did not know that the merchandise they 
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 is no rate for the intermediary involved in the 
transaction. See Assessment Policy Notice for a full discussion of this 
clarification.

Cash Deposit Requirements

    The following deposit rates will be effective upon publication of 
the final results of this administrative review for all shipments of 
CWP from Korea entered, or withdrawn from warehouse, for consumption on 
or after the publication date, as provided by section 751(a)(2)(C) of 
the Act: (1) The cash deposit rates for the companies listed above will 
be the rates established in the final results of this review, except if 
the rate is less than 0.5 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 final results 
in which that manufacturer or exporter participated; (3) if the 
exporter is not a firm covered in this review, a prior review, or the 
original less-than-fair-value (``LTFV'') investigation, but the 
manufacturer is, the cash deposit rate will be the rate established for 
the most recent final results 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 4.80 percent, the ``all others'' rate established 
in the LTFV investigation. See Notice of Antidumping Duty Orders: 
Certain Circular Welded Non-Alloy Steel Pipe from Brazil, the Republic 
of Korea, Mexico, and Venezuela, and Amendment to Final Determination 
of Sales at Less Than Fair Value: Certain Circular Welded Non-Alloy 
Steel Pipe from Korea, 57 FR 49453 (November 2, 1992). These cash 
deposit requirements, when imposed, shall remain in effect until 
further notice.

Notification to Importers

    This notice serves as a final 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.

Notification to Interested Parties

    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(a)(3). Timely written 
notification of return/destruction of APO materials 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.
    These final results of review are issued and published in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: June 14, 2010.
Paul Piquado,
Acting Deputy Assistant Secretary for Import Administration.

Appendix Issues in Decision Memorandum

Comment 1: Application of Quarterly Costs
Comment 2: Inventory Valuation Loss
Comment 3: Application of the Major Input Rule
Comment 4: Allowance for Doubtful Accounts/Bad Debts
Comment 5: Ordinary Pipe versus Pressure Pipe Classification
Comment 6: Bank Charges Incurred: Letter of Credit Charges
Comment 7: Recalculating SeAH's Dumping Margin by Comparing Monthly 
Weighted-Average Normal Values to Individual U.S. Prices
Comment 8: Zeroing-Out Negative Dumping Margins
[FR Doc. 2010-14945 Filed 6-18-10; 8:45 am]
BILLING CODE 3510-DS-S