[Federal Register: September 2, 2004 (Volume 69, Number 170)]
[Page 53675-53677]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]



International Trade Administration


Light-Walled Rectangular Pipe and Tube From Turkey: Notice of 
Final Determination of Sales at Less Than Fair Value

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

ACTION: Notice of final determination of sales at less than fair value.


EFFECTIVE DATE: September 2, 2004.

FOR FURTHER INFORMATION CONTACT: Paige Rivas (Guven) at (202) 482-0651; 
Drew Jackson (MMZ) at (202) 482-4406; and Mark Manning (Ozborsan/Onur 
and Ozdemir) at (202) 482-5253; Office of AD/CVD Enforcement, Office 
IV, Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW. 
Washington, DC 20230.


Final Determination

    The Department of Commerce (the Department) has determined that 
light-walled rectangular pipe and tube (LWRPT) from Turkey is being 
sold, or is likely to be sold, in the United States at less than fair 
value (LTFV), as provided in section 735 of the Tariff Act of 1930, as 
amended (the Act). The estimated margins of sales at LTFV are shown in 
the Final Determination of Investigation section of this notice.

Case History

    On April 13, 2004, the Department published the preliminary 
determination of sales at LTFV in the antidumping duty investigation of 
LWRPT from Turkey. See Light-Walled Rectangular Pipe and Tube from 
Turkey; Notice of Preliminary Determination of Sales at Less Than Fair 
Value and Postponement of Final Determination, 69 FR 19390 (April 13, 
2004) (Preliminary Determination). Since the preliminary determination, 
the following events have occurred.
    The Department received a timely supplemental section D 
questionnaire response from MMZ Onur Boru Profil Uretim Sanayi Ve. 
Ticaret A.S. (MMZ) on April 15, 2004. On April 15 and April 19, 2004, 
the Department returned untimely filed supplemental section D 
questionnaire responses to Guven Boru Ve. Profil San. Ve. Ticaret Ltd. 
Sti. (Guven). We conducted a verification of the sales and cost 
questionnaire responses of MMZ from April 19, 2004, through April 30, 
2004. MMZ timely filed its supplemental section C questionnaire 
response on May 7, 2004. On June 22, 2004, the Department returned an 
untimely filed, and improperly served, supplemental section A 
questionnaire response to Ozdemir Boru Profil Sanayi Ve. Ticaret Ltd. 
Sti. (Ozdemir). We gave interested parties an opportunity to comment on 
our Preliminary Determination and our findings at verification. On July 
7, 2004, the petitioners,\1\ MMZ, and Ozborsan Boru Sanayi Ve. Ticaret 
and its affiliated sister company Onur Metal (collectively, Ozborsan/
Onur) submitted case briefs. On July 12, 2004, these parties submitted 
rebuttal briefs. The Department did not receive a request for a public 
hearing; consequently, no public hearing was held.

    \1\ The petitioners in this investigation are California Steel 
and Tube, Hannibal Industries, Inc., Leavitt Tube Company, LLC, 
Maruichi American Corporation, Northwest Pipe Company, Searing 
Industries, Inc., Vest Inc., and Western Tube and Conduit 
Corporation (collectively, the petitioners).

Period of Investigation

    The period of investigation (POI) is July 1, 2002, through June 30, 
2003. See 19 CFR 351.204(b)(1).

Scope of Investigation

    The merchandise covered by this investigation is LWRPT from Turkey, 
which are welded carbon-quality pipe and tube of rectangular (including 
square) cross-section, having a wall thickness of less than 0.156 inch. 
These LWRPT have rectangular cross sections ranging from 0.375 x 0.625 
inches to 2 x 6 inches, or square cross sections ranging from 0.375 to 
4 inches, regardless of specification. LWRPT are currently classifiable 
under item number 7306.60.5000 of the Harmonized Tariff System of the 
United States (HTSUS). The HTSUS item number is provided for 
convenience and customs purposes only. The written product description 
of the scope is dispositive.
    The term ``carbon-quality'' applies to products in which (i) iron 
predominates, by weight, over each of the other contained elements, 
(ii) the carbon content is 2 percent or less, by weight, and (iii) none 
of the elements listed below exceeds the quantity, by weight, 
respectively indicated: 1.80 percent of manganese, or 2.25 percent of 
silicon, or 1.00 percent of copper, or 0.50 percent of aluminum, or 
1.25 percent of chromium, or 0.30 percent of cobalt, or 0.40 percent of 
lead, or 1.25 percent of nickle, or 0.30 percent of tungsten, or 0.10 
percent of molybdenum, or 0.10 percent of

[[Page 53676]]

niobium (also called columbium), or 0.15 percent of vanadium, or 0.15 
percent of zirconium.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this proceeding and to which we have responded are listed in the 
Appendix to this notice and addressed in the Memorandum from Jeffrey A. 
May, Deputy Assistant Secretary Import Administration, to James J. 
Jochum, Assistant Secretary for Import Administration, ``Issues and 
Decision Memorandum,'' (Decision Memorandum) dated concurrently with 
this notice, which is hereby adopted by this notice. Parties can find a 
complete discussion of the issues raised in this investigation and the 
corresponding recommendations in this public memorandum which is on 
file in the Central Records Unit, room B-099, of the main Department of 
Commerce building. In addition, a complete version of the Decision 
Memorandum can be accessed directly on the Internet at: http://ia.ita.doc.gov/frn/index.html.
 The paper copy and electronic version of 

the Decision Memorandum are identical in content.

Facts Available

    In the Preliminary Determination, we based the dumping margin for 
the respondents Guven, Ozborsan/Onur, and Ozdemir on total adverse 
facts available (AFA) pursuant to sections 776(a) and 776(b) of the 
Act. The use of AFA was warranted in this investigation because Guven, 
Ozborsan/Onur, and Ozdemir failed to timely provide complete and 
useable responses to the Department's antidumping questionnaire and 
supplemental questionnaires. See Preliminary Determination, 69 FR at 
19393-96. The failure to provide the requested information 
significantly impeded this proceeding because the Department cannot 
determine a margin without complete and accurate responses to our 
questionnaires. As AFA, we assigned Guven, Ozborsan/Onur, and Ozdemir 
the rate of 34.89 percent, the highest margin listed in the notice of 
initiation. See Notice of Initiation of Antidumping Investigations: 
Light-Walled Rectangular Pipe and Tube from Mexico and Turkey, 68 FR 
57667 (October 6, 2003). A complete explanation of the selection, 
corroboration, and application of AFA can be found in the Preliminary 
Determination. See Preliminary Determination, 69 FR at 19393-96. The 
Department received comments and rebuttal from Ozborsan/Onur and the 
petitioner regarding this issue. See Decision Memorandum at Comment 11. 
Nothing has changed since the Preliminary Determination was issued that 
would affect the Department's selection and application of facts 
available. Accordingly, for the final determination, we continue apply 
as AFA the rate of 34.89 percent to Guven, Ozborsan/Onur, and Ozdemir.


    As provided in section 782(i) of the Act, we verified the 
information submitted by MMZ for use in our final determination. We 
used standard verification procedures including examination of relevant 
accounting and production records, and original source documents 
provided by the respondent.

Changes Since the Preliminary Determination

    Based on our findings at verification, and analysis of comments 
received, we have made certain adjustments to the margin calculations 
used in the Preliminary Determination. These adjustments are discussed 
in detail in the Decision Memorandum and are listed below:

1. Duty Drawback Adjustment

    The Department disregarded the amount of duty drawback reported by 
MMZ under the yield rate for coils established by the government of 
Turkey (GOT) and instead calculated the duty drawback using MMZ's own 
yield rate for steel coils. However, since MMZ does not separately 
track its consumption of zinc, the Department relied upon the yield 
rate established by the GOT for the duty drawback on zinc. See 
Memorandum to the File from Drew Jackson, International Trade 
Compliance Analyst, ``Calculation Memorandum for the Final 
Determination,'' dated August 26, 2004 (Final Sales Calculation 

2. Reclassification of Certain Selling Expenses

    Based on comments made by petitioners, we have reclassified the 
bank commissions and letter of credit fees as direct selling expenses, 
rather than indirect selling expenses, for the final determination. See 
Final Sales Calculation Memorandum.

3. Revised Production Quantity for Non-Prime Products

    Pursuant to a minor error reported on the first day of 
verification, we have revised the production quantity for non-prime 
products. See Final Sales Calculation Memorandum.

4. Adjustment to MMZ's Raw Material Costs

    Based on comments made by MMZ, we have made an adjustment to MMZ's 
raw material costs to account for an overstatement in these raw 
material costs discovered during verification. See Memorandum from 
Margaret M. Pusey, Case Accountant, to Neal M. Halper, ``Cost of 
Production and Constructed Value Calculation Adjustments for the Final 
Determination--MMZ Onur Boru Profil Uretim Sanayi ve Ticaret A.S.,'' 
dated August 26, 2004 (Final Cost Calculation Memorandum).

5. Adjustment to MMZ's Calculated Financial Expenses

    Based on comments made by MMZ, we have made an adjustment to MMZ's 
calculated financial expense. Specifically, we have granted an 
adjustment to allow the income on certain investments to offset 
financial expenses because this income was found to be interest on 
short-term bank accounts. See Final Cost Calculation Memorandum.

6. Adjustment to MMZ's Calculated General and Administrative Expenses

    Based upon verification findings, we have adjusted MMZ's calculated 
general and administrative expenses. See Final Cost Calculation 

Continuation of Suspension of Liquidation

    Pursuant to section 735(c)(1)(B) of the Act, we will instruct U.S. 
Customs and Border Protection (CBP) to continue to suspend liquidation 
of all entries of LWRPT from Turkey that are entered, or withdrawn from 
warehouse, for consumption on or after April 13, 2004, the date of 
publication of the Preliminary Determination in the Federal Register. 
We will instruct CBP to continue to require a cash deposit or the 
posting of a bond for each entry equal to the weighted-average amount 
by which the normal value exceeds the export price, as indicated in the 
chart below. These instructions suspending liquidation will remain in 
effect until further notice.

Final Determination of Investigation

    We determine that the following weighted-average dumping margins 
exist for the period July 1, 2002, through June 30, 2003:

[[Page 53677]]

                   Manufacturer/exporter                        margin
Guven Boru Ve. Profil San. Ve. Ticaret Ltd. Sti/Ozborsan           34.89
 Boru Sanayi Ve. Ticaret and Onur Metal/Ozdemir Boru Profil
 Sanayi Ve. Ticaret Ltd. Sti...............................
MMZ Onur Boru Profil Uretim Sanayi Ve. Ticaret A.S.........         6.12
All Others.................................................         6.12

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (ITC) of our determination. As our final 
determination is affirmative, the ITC will determine, within 45 days, 
whether these imports are causing material injury, or threat of 
material injury, to an industry in the United States. If the ITC 
determines that material injury, or threat of 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 order directing CBP 
officials 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.

Notification Regarding Administrative Protective Order

    This notice also serves as a 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 the 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 
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    August 26, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.

Appendix--Issues in Decision Memorandum

Part I--MMZ

    Comment 1: Whether the Department Should Deny MMZ's Duty 
Drawback Claim Because MMZ Did Not Use Imported Inputs to Produce 
Finished Merchandise Sold in the Home Market.
    Comment 2: Whether the Department Should Add Duty Drawback to 
MMZ's Cost of Production and Constructed Value.
    Comment 3: Whether the Department Should Classify Certain Bank 
Commissions and Letter of Credit Fees as Direct Selling Expenses 
Instead of Indirect Selling Expenses.
    Comment 4: Whether the Department Should Classify Sales Made 
Through the U.S. Commissioned Selling Agent as CEP Transactions.
    Comment 5: Whether the Department Should Collapse MMZ and 
Company A for Purposes of Calculating MMZ's Coil Cost.
    Comment 6: Whether the Department Should Find that the Transfer 
Price Between Company A and MMZ Was Above the Market Price.
    Comment 7: Whether the Upward Adjustment for Imported Coil 
Purchased Through Company A to the Price Paid to Home Market 
Suppliers in Effect Double-Counts the Duty-Drawback Adjustment to 
Cost of Production and Constructed Value.
    Comment 8: Whether the Department Should Exclude Foreign 
Exchange Losses Incurred on Payables from MMZ's Computed Financial 
    Comment 9: Whether the Department Should Adjust MMZ's Reported 
Costs to Correct for the Overstatement in MMZ's Raw Material Cost 
Discovered During Verification.

Part II--Ozborsan/Onur, Guven, and Ozdemir

    Comment 10: Whether the Department Erred in its Decision to 
Collapse Ozborsan/Onur, Guven, and Ozdemir Into a Single Entity.
    Comment 11: Whether the Department Erred in Finding that 
Ozborsan/Onur Metal Failed to Provide Requested Information to the 
Department and in its Application of Total Adverse Facts Available.

 [FR Doc. E4-2044 Filed 9-1-04; 8:45 am]