Antidumping: alloy steel pipe from— Korea,

[Federal Register: March 26, 1998 (Volume 63, Number 58)]

[Notices]

[Page 14679-14680]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr26mr98-45]

[[Page 14679]]

DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-809]

Circular Welded Non-Alloy Steel Pipe From the Republic of Korea; Preliminary Results of Antidumping Duty Changed Circumstances Review

AGENCY: Import Administration, International Trade Administration, Department of Commerce.

ACTION: Notice of preliminary results of antidumping duty changed circumstances review.

SUMMARY: In response to a request by SeAH Steel Corporation submitted on March 27, 1997, the Department of Commerce is conducting a changed circumstances review to examine whether SeAH Steel Corporation is the successor to Pusan Steel Pipe. As a result of this review, the Department of Commerce preliminarily finds that for purposes of this proceeding, SeAH is the successor to Pusan Steel Pipe and should be assigned the antidumping deposit rate applicable to Pusan Steel Pipe.

EFFECTIVE DATE: March 26, 1998.

FOR FURTHER INFORMATION CONTACT: Marian Wells or Cynthia Thirumalai, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 20230; telephone (202) 482-6309 and 482-4087 respectively.

The Applicable Statute and Regulations

Unless otherwise indicated, all citations to the statute are references to the provisions effective January 1, 1995, the effective date of the amendments made to the Tariff Act of 1930 (the Act) by the Uruguay Round Agreements Act (URAA). In addition, unless otherwise indicated, all citations to the Department of Commerce's (the Department's) regulations refer to the regulations, codified at 19 CFR part 353, April 1997.

Background

On July 15, 1997, we published a notice of initiation in this changed circumstances review (see Circular Welded Non-Alloy Steel Pipe from Korea: Notice of Extension of Time Limit for Preliminary Results, Partial Termination of Antidumping Duty Administrative Review and Initiation of Changed Circumstances Review (62 FR 37865)). SeAH Steel Corporation (SeAH) submitted information on its corporate structure and production facilities on January 22, 1998 in response to a request by the Department. We are conducting this review in accordance with 19 CFR 353.22(f).

Scope of Review

The merchandise subject to this review is circular welded non-alloy steel pipe and tube, of circular cross-section, not more than 406.4 mm (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 order.

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.

Successorship

Pusan Steel Pipe (PSP) legally changed its name to SeAH on December 28, 1995, effective as of January 1, 1996. In its request for this changed circumstances review, SeAH asked that it be found the successor to PSP insofar as the change was in name only while the legal structure of the company, its management and ownership were not affected.

In determining whether one company is the successor to another for purposes of applying the antidumping duty law, the Department examines a number of factors including, but not limited to, changes in (1) management, (2) production facilities, (3) suppliers, and (4) customer base. (See, e.g., Brass Sheet and Strip from Canada; Final Results of Antidumping Duty Administrative Review (``Brass Sheet and Strip''), (57 FR 7759, March 5, 1990), and Industrial Phosphoric Acid From Israel; Final Results of Antidumping Duty Changed Circumstances Review, (59 6955, February 14, 1994).) While no one or several of these factors will necessarily provide a dispositive indication of succession, the Department will generally consider one company to be a successor to a second if its resulting operation is essentially the same as that of its predecessor (see, Brass Sheet and Strip). Thus, if the evidence demonstrates that, with respect to the production and sale of the subject merchandise, the new company operates as the same business entity, the Department will assign the new company the cash deposit rate of its predecessor.

We have received information from SeAH that demonstrates that no major changes occurred with respect to PSP's management, plant facilities, customer base or suppliers. Specifically, we have received product brochures, promotional materials, organizational charts, and lists of managers names for 1995 and 1996. Therefore, the change in name from PSP to SeAH had no material effect on the operation of the company with respect to the production and sale of subject merchandise (i.e., standard pipe). Based on the foregoing, we preliminarily find that SeAH is the successor to PSP and, as such, is entitled to PSP's cash deposit rate with respect to entries of subject merchandise.

Preliminary Results of the Review

We preliminarily conclude that SeAH is the successor to PSP. Should our final results remain the same as these preliminary results, we will instruct the U.S. Customs Service to assign SeAH

[[Page 14680]]

the antidumping duty cash deposit rate applicable to PSP of 6.00 percent ad valorem.

Parties to the proceeding may request disclosure within five days of the date of publication of this notice. Interested parties may also request a hearing within ten days of publication.

If requested, a hearing will be held April 6, 1998. Interested parties may submit case briefs by March 27, 1998. Rebuttal briefs, which must be limited to issues raised in the case briefs, may be filed not later than April 1, 1998. The Department will issue a notice of the final results of the changed circumstance review, which will include the results of its analysis of issues raised in any such briefs and hearing. This changed circumstances review and notice are in accordance with 19 CFR 353.22(f).

Dated: March 18, 1998. Robert S. LaRussa, Assistant Secretary for Import Administration.

[FR Doc. 98-7966Filed3-25-98; 8:45 am]

BILLING CODE 3510-DS-P