[Federal Register Volume 64, Number 56 (Wednesday, March 24, 1999)] [Notices] [Pages 14213-14214] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 99-7215] ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE International Trade Administration [A-201-817] Oil Country Tubular Goods From Mexico; Preliminary Results of Changed Circumstances Antidumping Duty Administrative Review
Agency
Import Administration, International Trade Administration, Department of Commerce.
Action
Notice of preliminary results of changed circumstances antidumping duty administrative review.
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Summary
Since 1997, the Department of Commerce (``the Department'') has received two requests to revoke the antidumping duty (AD) order covering Oil Country Tubular Goods (``OCTG'') from Mexico as it pertains to drill pipe with tool joints attached (commonly referred to as finished drill pipe). One request came from the International Association of Drilling Contractors (``IADC''), requesting that the Department self-initiate a changed circumstances review for the antidumping duty orders covering OCTG from Mexico, Japan, and Argentina. The other request came from Grant Prideco Inc., the leading producer of finished drill pipe in the United States. The latter request, covering only the antidumping duty order on OCTG from Mexico, was withdrawn. Because of the unusual circumstances surrounding this product, we initiated an antidumping duty changed circumstances administrative review to determine the extent of domestic industry support for continuing the antidumping duty order on OCTG from Mexico with regard to both unfinished and finished drill pipe. We included both finished and unfinished drill pipe in the review because the International Trade Commission determined, in its injury test, that both finished and unfinished drill pipe constituted a ``like product'' with respect to the antidumping duty orders on OCTG from Argentina, Japan, and Mexico. We solicited comments from parties regarding this review, and also requested production figures for 1997 and the first quarter of 1998 for all identified domestic producers of the like product (i.e. finished and unfinished drill pipe). We conducted verifications of the submitted data between September 29 and October 2, 1998. Based on the information submitted by producers, and our findings at verification, we preliminarily determine that there is insufficient domestic industry support for proceeding to revoke the antidumping duty order on oil country tubular goods with respect to finished drill pipe. Interested parties are invited to comment on these preliminary results. Parties who submit argument in this proceeding are requested to submit with the argument (1) a statement of the issue and (2) a brief summary of the argument (no longer than five pages, including footnotes).
EFFECTIVE DATE: March 24, 1999.
For Further Information Contact
John K. Drury or Richard Weible, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, N.W., Washington, D.C. 20230; telephone (202) 482-3208 or (202) 482-1103, respectively.
Supplementary Information
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 by the Uruguay Round Agreements Act. In addition, unless otherwise indicated, all citations to the Department's regulations are to the current regulations.
Scope of the Review
The merchandise subject to this changed circumstances review is finished oil well drill pipe with tool joints attached. This merchandise is currently classifiable in the Harmonized Tariff Schedule of the United States (HTSUS) under item number 8431.43.8010 as ``Parts suitable for use solely or principally with the machinery of headings 8425 to 8430, [o]f machinery of heading 8426, 8429 or 8430: [p]arts for boring or sinking machinery of subheading 8430.41 or 8430.49: [o]ther: [o]f oil and gas field machinery.'' Although the HTSUS subheadings are provided for convenience and customs purposes, our written description of the scope of this review is dispositive.
Background
On July 8, 1997, the IADC requested that the Department self- initiate a changed circumstances review with respect to finished drill pipe for all countries with finished drill pipe included in the OCTG antidumping duty order. On March 13, 1998, the Department responded to the IADC request. On January 28, 1998, Grant Prideco, Inc. requested revocation of the AD order on Mexican OCTG with respect to finished drill pipe. The Department received letters in opposition to this second request from OMSCO Industries and Drill Pipe Industries, Inc. on February 12, 1998, and February 13, 1998, respectively. On March 16, 1998, Grant Prideco withdrew its request for a changed circumstances review. Subsequent to the Department's response to IADC on March 13, 1998, parties raised questions regarding whether ``substantially all'' of the domestic industry supports continuation of the AD order on OCTG from Mexico with respect to finished drill pipe. In light of the request originally filed by Grant Prideco and the information available to the Department, the Department believed that Grant Prideco's affirmative statement of no interest constituted good cause for conducting a changed circumstances review solely to determine if ``substantially all'' of the domestic producers of the like product supported partial revocation of the antidumping duty order with respect to finished drill pipe.
Analysis
Section 351.222(g)(i) of the Department's regulations provides that the Secretary may revoke an order in part based on changed circumstances if ``producers accounting for substantially all of the production of the domestic like product to which * * * the part of the order to be revoked * * * have expressed a lack of interest'' in the continued existence of the order, in whole or in part. The Department interprets ``substantially all'' production to mean at least 85 percent of domestic production of the domestic like product. The Department thus conducted the review solely to determine the level of support of domestic producers of the domestic like product for maintaining this order with respect to finished drill pipe. In order to determine whether ``substantially all'' of the domestic producers supported revocation in part of the order, the Department solicited comments from all parties with an interest in this review. In addition, the Department requested production information from producers of both finished and unfinished drill pipe. The Department received numerous comments regarding interest in the order, including comments on the supply and production lead times of finished drill pipe in the United States. Additionally, the Department received production information from producers of finished drill pipe, as well as producers of unfinished drill pipe. To verify this information, the Department conducted verifications of three of the domestic producers of the like product (Grant Prideco, OMSCO, and Drill Pipe Inc.) in September and October of 1998. Copies of the public versions of the verification reports for all three companies are available in the Import Administration's Central Records Unit. Based on the responses by domestic producers, and the results of our verification, we have determined that less than 85 percent of the domestic industry of the like product supports the partial revocation of the order. Parties wishing to comment on these results must submit briefs to the Department within 30 days after the publication of this notice in the Federal Register. Parties will have five days subsequent to this date to submit rebuttal briefs. Any requests for hearing must be filed within 30 days of the publication of this notice in the Federal Register.
Preliminary Results of Review
Based on the submissions by the producers, the Department has preliminarily determined that producers supporting a partial revocation of the order account for less than 85 percent of domestic production of the like product. Under the definition given above, ``substantially all'' of the domestic producers of the like product do not support partial revocation of the order with respect to finished drill pipe. As a result, we preliminarily determine that there is no basis to revoke, in part, the antidumping duty order on oil country tubular goods from Mexico with respect to finished drill pipe.
Dated: March 11, 1999. Robert S. LaRussa, Assistant Secretary for Import Administration. [FR Doc. 99-7215 Filed 3-23-99; 8:45 am] BILLING CODE 3510-DS-P