[Federal Register Volume 65, Number 249 (Wednesday, December 27, 2000)]
[Notices]
[Pages 81825-81827]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32979]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-557-809]
Notice of Final Determination of Sales at Less Than Fair Value:
Stainless Steel Butt-Weld Pipe Fittings From Malaysia
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of the final determination in the less than fair value
investigation of stainless steel butt-weld pipe fittings from Malaysia.
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SUMMARY: On August 2, 2000, the Department of Commerce (``Department'')
published the preliminary determination in the less than fair value
(``LTFV'') investigation of stainless steel butt-weld pipe fittings
from Malaysia. See Notice of Preliminary Determination of Sales at Not
Less Than Fair Value and Postponement of Final Determination: Stainless
Steel Butt-Weld Pipe Fittings from Malaysia, 65 FR 47398 (August 2,
2000) (``Preliminary Determination''). This investigation covers one
manufacturer/exporter of the subject merchandise. The period of
investigation (``POI'') is October 1, 1998 through September 30, 1999.
Based upon our verification of the data and analysis of the
comments received, we have made changes to our determination.
Therefore, the final
[[Page 81826]]
determination differs from the preliminary determination of this
investigation. The final weighted-average dumping margin is listed
below in the section titled ``Final Determination of the
Investigation.''
EFFECTIVE DATE: December 27, 2000.
FOR FURTHER INFORMATION CONTACT: Juanita H. Chen or Rick Johnson,
Enforcement Group III, Office 9, Import Administration, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue, NW., Washington, DC 20230, telephone 202-482-0409 (Chen) or
202-482-3818 (Johnson), fax 202-482-1388.
SUPPLEMENTARY INFORMATION:
Applicable Statute
Unless otherwise indicated, all citations to the Tariff Act of 1930
(``Act'') are references to the provisions effective January 1, 1995,
the effective date of the amendments made to the Act by the Uruguay
Round Agreements Act (``URAA''). In addition, unless otherwise
indicated, all citations to the Department's regulations are to the
regulations at 19 CFR Part 351 (1999).
Period of Investigation
The period of investigation (``POI'') is October 1, 1998 through
September 30, 1999.
Background
On January 18, 2000, the Department initiated an antidumping duty
investigation on stainless steel butt-weld pipe fittings from Malaysia.
See Initiation of Antidumping Duty Investigations: Stainless Steel
Butt-Weld Pipe Fittings From Germany, Italy, Malaysia and the
Philippines, 65 FR 4595 (January 31, 2000). On August 2, 2000, the
Department published a notice of its preliminary determination in the
investigation. See Preliminary Determination, 65 FR 47398. On September
25, 2000 through September 29, 2000, the Department conducted the sales
verification for Kanzen Tetsu Sdn. Bhd. (``Kanzen''). See Sales
Verification Report (October 11, 2000). On October 2, 2000 through
October 6, 2000, the Department conducted the cost verification for
Kanzen. See Verification Report on the Cost of Production and
Constructed Value Data (October 31, 2000). We invited parties to
comment on our Preliminary Determination. Petitioners submitted their
case brief (``Petitioners'' Brief'') on November 13, 2000. Kanzen did
not submit a case brief. Kanzen submitted its rebuttal brief (``Kanzen
Rebuttal'') on November 20, 2000. Pursuant to a September 1, 2000
request by petitioners, the Department held a public hearing on the
issues on November 22, 2000. The Department has conducted and completed
the investigation in accordance with section 735 of the Act.
Scope of the Investigation
For purposes of this investigation, the product covered is certain
stainless steel butt-weld pipe fittings (``pipe fittings''). Certain
pipe fittings are under 14 inches in outside diameter (based on nominal
pipe size), whether finished or unfinished. The product encompasses all
grades of stainless steel and ``commodity'' and ``specialty'' fittings.
Specifically excluded from the definition are threaded, grooved, and
bolted fittings, and fittings made from any material other than
stainless steel.
The pipe fittings subject to this investigation are generally
designated under specification ASTM A403/A403M, the standard
specification for Wrought Austenitic Stainless Steel Piping Fittings,
or its foreign equivalents (e.g., DIN or JIS specifications). This
specification covers two general classes of fittings, WP and CR, of
wrought austenitic stainless steel fittings of seamless and welded
construction covered by the latest revision of ANSI B16.9, ANSI B16.11,
and ANSI B16.28. Pipe fittings manufactured to specification ASTM A774,
or its foreign equivalents, are also covered by this investigation.
This investigation does not apply to cast fittings. Cast austenitic
stainless steel pipe fittings are covered by specifications A351/A351M,
A743/743M, and A744/A744M.
The pipe fittings subject to this investigation are currently
classifiable under subheading 7307.23.0000 of the Harmonized Tariff
Schedule of the United States (``HTSUS''). Although the HTSUS
subheadings are provided for convenience and Customs purposes, the
written description of the scope of this investigation is dispositive.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs to this
investigation are addressed in the December 15, 2000 Issues and
Decision Memorandum (``Decision Memo'') from Joseph A. Spetrini, Deputy
Assistant Secretary, Import Administration, to Troy H. Cribb, Assistant
Secretary for Import Administration, which is hereby adopted by this
notice. A list of the issues which parties have raised and to which we
have responded, and other issues addressed, all of which are in the
Decision Memo, is attached to this notice as an Appendix. Parties can
find a complete discussion of all issues raised in this investigation
and the corresponding recommendations in the Decision Memo, a public
memorandum which is on file at the U.S. Department of Commerce, in the
Central Records Unit, in room B-099. In addition, a complete version of
the Decision Memo can be accessed directly on the Web at http://ia.ita.doc.gov. The paper copy and electronic version of the Decision
Memorandum are identical in content.
Use of Facts Available
In accordance with section 776 of the Act, we have determined that
the use of facts available is appropriate for certain portions of our
analysis of Kanzen. For a discussion of our determination with respect
to this matter, see the Decision Memo.
Fair Value Comparisons
To determine whether sales of pipe fittings from Malaysia to the
United States were made at LTFV, we compared the export price (``EP'')
to the normal value (``NV''), as described in the ``Export Price'' and
``Normal Value'' sections of our Preliminary Determination, except as
noted below, and as set forth in the Decision Memo, and the Analysis
Memorandum for Kanzen Tetsu Sdn. Bhd.: Final Determination in the Less
Than Fair Value Investigation of Stainless Steel Butt-Weld Pipe
Fittings from Malaysia (December 15, 2000) (``Final Analysis Memo'').
Export Price
We are calculating and applying an average unit bank charge per ton
on U.S. sales, applying facts available from Kanzen's U.S. sales to
calculate marine insurance expense on certain sales, correcting the
marine insurance denomination in our margin analysis program, applying
facts available on Kanzen's returns during the POI, allocating a
percentage of miscellaneous unreported bank charges to Kanzen's U.S.
sales, applying partial adverse facts available to Kanzen's unreported
U.S. sale, and including the quantity for the unshipped sale reported
by Kanzen, applying facts available for certain variables. See Decision
Memo and Final Analysis Memo.
Normal Value
We are applying invoice date as the date of sale for U.K. sales,
rather than contract date as in the Preliminary Determination. We are
disallowing direct selling expenses on Kanzen's U.K. sales, adjusting
domestic inland freight on certain invoices, correcting the reported
payment date for certain sales observations, and allocating a
[[Page 81827]]
percentage of miscellaneous unreported bank charges to Kanzen's U.K.
sales. See Decision Memo and Final Analysis Memo.
Cost of Production
We have revised the calculations for the variance ratios, scrap,
adjustment for differences in merchandise, and the general and
administrative expense factors. See Decision Memo and Final Analysis
Memo.
Sales Below Cost in the Comparison Market
The Department disregarded comparison market below-cost sales that
failed the cost test in the final results of the investigation.
Changes Since the Preliminary Determination
Based on our verification and analysis of the comments received,
including ministerial error comments, we have made certain changes in
the model match and margin calculation programs, as discussed in the
Decision Memo, the Final Analysis Memo, and the Ministerial Error
Memorandum for the Preliminary Determination of Sales at Not Less Than
Fair Value (August 17, 2000) (``Ministerial Error Memo'').
Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, we are
directing the U.S. Customs Service (``Customs'') to suspend liquidation
of all entries of subject merchandise from Malaysia that are entered,
or withdrawn from warehouse, for consumption on or after the date of
publication of this Final Determination in the Federal Register, as
provided by section 735(c)(1)(C) of the Act. We will instruct Customs
to require a cash deposit or the posting of a bond equal to the
weighted-average amount by which the normal value exceeds the U.S.
price, as indicated in the chart below. These suspension of liquidation
instructions will remain in effect until further notice.
Stainless Steel Butt-Weld Pipe Fittings
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Weighted-
average
Producer/manufacturer/exporter margin
(percent)
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Kanzen..................................................... 7.51
All others................................................. 7.51
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ITC Notification
In accordance with section 735(d) of the Act, we have notified the
International Trade Commission (``ITC'') of our final determination. As
our final determination is affirmative, the ITC will, within 75 days,
determine whether these imports are materially injuring, or threaten
material injury to, the U.S. industry. If the ITC determines that
material injury or threat of material injury does not exist, the
proceeding will be terminated and all securities posted will be
refunded or canceled. If the ITC determines that such injury does
exist, the Department will issue an antidumping duty order directing
Customs to assess antidumping duties on all imports of the subject
merchandise entered or withdrawn from warehouse for consumption on or
after the effective date of the suspension of liquidation.
This determination is issued and published pursuant to sections
735(d) and 777(i)(1) of the Act.
Dated: December 15, 2000.
Troy H. Cribb,
Assistant Secretary for Import Administration.
Appendix--Issues in the Decision Memo
General Issues:
Ministerial Errors From the Preliminary Determination
General Sales Issues:
Date of Sale/Market Viability
Bank Charges
U.K. Sales Issues:
Domestic Inland Freight
Credit Period
FOB v. CIF
Early Payment Discount
U.S. Sales Issues:
Marine Insurance Expense
Marine Insurance Expense Discount and Denomination
Returns
Miscellaneous Bank Charges
Unreported U.S. Sales
Unshipped Sale
Inland Freight
Cost Issues:
Total Adverse Facts Available
Allocation of Cost Variances
Standard Cost Reduction Factor for Pipes Used for
Fittings
Cost of Fittings Made of Finished Pipes
G&A Expense Ratio
[FR Doc. 00-32979 Filed 12-26-00; 8:45 am]
BILLING CODE 3510-DS-P