MESSAGE NO: 7021113 DATE: 01 21 1997
CATEGORY: ADA TYPE: PRE
REFERENCE: REFERENCE DATE:
CASES: A - 588 - 840 - -
- - - -
- - - -

PERIOD COVERED: 12 10 1996 TO

LIQ SUSPENSION DATE:

TO: CMC DIRECTORS,
PORT DIRECTORS

FROM: DIRECTOR, IMPORT OPERATIONS

RE: PRELIMINARY DETERMINATION OF ENGINEERED PROCESS GAS TURBO
COMPRESSOR SYSTEMS, WHETHER ASSEMBLED OR UNASSEMNBLED,
WHETHER COMPLETE OF IMCOMPLETE FROM JAPAN(A-588-840)

1. ON DECEMBER 10, 1996, THE DEPARTMENT OF COMMERCE PUBLISHEDIN
THE FEDERAL REGISTER ITS PRELIMINARY DETERMINATION OF SALES AT
LESS THAN FAIR VALUE AND THE POSTPONEMENT OF THE FINAL
DETERMINATION OF ENGINEERED PROCESS GAS TURBO-COMPRESSOR SYSTEMS
(EPGTS), WHETHER ASSEMBLED OR UNASSEMBLED, AND WHETHER COMPLETE
OR INCOMPLETE FROM JAPAN (A-588-840).

2. WE HAVE CLARIFIED THE SCOPE SINCE THE INITIATION OF THIS
INVESTIGATION WITH RESPECT TO THE END USES OF EPGTS, REPAIR AND
REVAMP PARTS AND THE DEFINITION OF "INCOMPLETE" EPGTS, AS STATED
BELOW.

THE PRODUCTS COVERED BY THIS INVESTIGATION ARE TURBO-COMPRESSOR
SYSTEMS (I.E., ONE OR MORE "ASSEMBLIES: OR "TRAINS") WHICH ARE
COMPRISED OF VARIOUS CONFIGURATIONS OF PROCESS GAS COMPRESSORS,
DRIVERS (I.E., STEAM TURBINES OR MOTOR-GEAR SYSTEMS DESIGNED TO
DRIVE SUCH COMPRESSORS), AND AUXILIARY CONTROL SYSTEMS AND
LUBRICATION SYSTEMS FOR USE WITH SUCH COMPRESSOR AND COMPRESSOR
DRIVERS, WHETHER ASSEMBLED OR UNASSEMBLED. ONE OR MORE OF THESE
TURBO-COMPRESSOR ASSEMBLIES OR TRAINS, MAY BE COMBINED. THE
SYSTEMS COVERED ARE ONLY THOSE USED IN THE PETROCHEMICAL AND
FERTILIZER INDUSTRIES, IN THE PRODUCTION OF ETHYLENE, PROPYLENE,
AMMONIA, UREA, METHANOL, REFINERY AND OTHER PETROCHEMICAL
PRODUCTS. THIS INVESTIGATION DOES NOT ENCOMPASS TURBO-COMPRESSOR
SYSTEMS INCORPORATING GAS TURBINE DRIVERS, WHICH ARE TYPICALLY
USED IN PIPELINE TRANSMISSION, INJECTION, GAS PROCESSING, AND
LIQUID NATURAL GAS SERVICE.

THE SCOPE OF THIS INVESTIGATION EXCLUDES SPARE PARTS THAT
ARE SOLD SEPARATELY FROM A CONTRACT FOR AN EPGTS. PARTS OR
COMPONENTS IMPORTED FOR THE REVAMP OR REPAIR OF AN EXISTING
EPGTS, OR OTHERWISE NOT INCLUDED IN THE ORIGINAL CONTRACT OF SALE
FOR THE EPGTS OF WHICH THEY ARE INTENDED TO BE A PART, ARE
EXPRESSLY EXCLUDED FROM THE SCOPE.

COMPRESSORS ARE MACHINES USED TO INCREASE THE PRESSURE OF A
GAS OR VAPOR, OR MIXTURE OF GASES AND VAPORS. COMPRESSORS ARE
COMMONLY CLASSIFIED AS RECIPROCATING, ROTARY, JET, CENTRIFUGAL,
OR AXIAL (CLASSIFIED BY THE MECHANICAL MEANS OF COMPRESSING THE
FLUID), OR AS POSITIVE-DISPLACEMENT OR DYNAMIC-TYPE (CLASSIFIED
BY THE MANNER IN WHICH THE MECHANICAL ELEMENTS ACT ON THE FLUID
TO BE COMPRESSED). SUBJECT COMPRESSORS INCLUDE ONLY CENTRIFUGAL
COMPRESSORS ENGINEERED FOR PROCESS GAS COMPRESSION, E.G.,
AMMONIA, UREA, METHANOL, PROPYLENE, OR ETHYLENE SERVICE.

TURBINES ARE CLASSIFIED (1) AS STEAM OR GAS; (2) BY
MECHANICAL ARRANGEMENT AS SINGLE-CASING, MULTIPLE SHAFT, OR
TANDEM-COMPOUND (MORE THAN ONE CASING WITH A SINGLE SHAFT); (3)
BY FLOW DIRECTION (AXIAL OR RADIAL); (4) BY STEAM CYCLE, WHETHER
CONDENSING, NON-CONDENSING, AUTOMATIC EXTRACTION, OR REHEAT; AND
(5) BY NUMBER OF EXHAUST FLOWS OF A CONDENSING UNIT. STEAM AND
GAS TURBINES ARE USED IN VARIOUS APPLICATIONS. ONLY STEAM
TURBINES DEDICATED FOR A TURBO-COMPRESSOR SYSTEM ARE SUBJECT TO
THIS INVESTIGATION.

A MOTOR AND GEAR BOX IS USED AS A COMPRESSOR DRIVER IN LIEU
OF A STEAM TURBINE. A CONTROL SYSTEM IS USED TO MONITOR AND
CONTROL THE OPERATION OF A TURBO-COMPRESSOR SYSTEM. A
LUBRICATION SYSTEM IS ENGINEERED TO SUPPORT A SUBJECT COMPRESSOR
DRIVEN BY A TURBINE (OR MOTOR/GEAR BOX).

A TYPICAL EPGTS CONSISTS OF ONE OR MORE COMPRESSORS DRIVEN
BY A TURBINE (OR IN SOME CASES A MOTOR DRIVE). A COMPRESSOR IS
USUALLY INSTALLED ON A BASE PLATE AND THE DRIVE IS INSTALLED ON A
SEPARATE BASE PLATE. THE TURBINE (OR MOTOR DRIVE) BASE PLATE
WILL TYPICALLY ALSO INCLUDE ANY GOVERNING OR SAFETY SYSTEMS,
COUPLINGS, AND A GEARBOX, IF ANY. THE LUBE AND OIL SEAL SYSTEMS
FOR THE TURBINE AND COMPRESSOR(S) ARE USUALLY MOUNTED ON A
SEPARATE SKID.
THE SCOPE OF THIS INVESTIGATION COVERS BOTH "ASSEMBLED AND
UNASSEMBLED" EPGTS FROM JAPAN. BECAUSE OF THEIR LARGE SIZE,
EPGTS AND THEIR CONSTITUENT PARTS ARE TYPICALLY SHIPPED PARTIALLY
ASSEMBLED (OR UNASSEMBLED) TO THEIR DESTINATION WHERE THEY ARE
ASSEMBLED AND/OR COMPLETED PRIOR TO THEIR COMMISSIONING.

THE SCOPE OF THIS INVESTIGATION ALSO COVERS "COMPLETE AND
INCOMPLETE" EPGTS FROM JAPAN. A "COMPLETE" EPGTS COVERED BY THE
SCOPE CONSISTS OF ALL OF THE COMPONENTS OF AN EPGTS (I.E. PROCESS
GAS COMPRESSOR(S), DRIVER(S), AUXILIARY CONTROL SYSTEM(S) AND
LUBRICATION SYSTEM(S) AND THEIR CONSTITUENT PARTS, WHICH ARE
IMPORTED FROM JAPAN IN ASSEMBLED OR UNASSEMBLED FORM,
INDIVIDUALLY OR IN COMBINATION, PURSUANT TO A CONTRACT FOR A
COMPLETE EPGTS IN THE UNITED STATES. AN "INCOMPLETE" EPGTS
COVERED BY THE SCOPE OF THIS INVESTIGATION CONSISTS OF PARTS OF
AN EPGTS IMPORTED FROM JAPAN PURSUANT TO A CONTRACT FOR A
COMPLETE EPGTS IN THE UNITED STATES, WHICH TAKEN ALTOGETHER,
CONSTITUTE AT LEAST 50 PERCENT OF THE COST OF MANUFACTURE OF THE
COMPLETE EPGTS OF WHICH THEY ARE A PART.

EPGTS IMPORTED FROM JAPAN AS AN ASSEMBLY OR TRAIN (I.E.,
INCLUDING TURBINES, COMPRESSORS, MOTOR GEAR BOXES, CONTROL
SYSTEMS AND LUBRICATION SYSTEMS, AND AUXILIARY EQUIPMENT) MAY BE
CLASSIFIED UNDER HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES
("HTSUS") SUBHEADING 8414.80.2015, WHICH PROVIDES FOR CENTRIFUGAL
AND AXIAL COMPRESSORS. THE U.S. CUSTOMS SERVICE MAY VIEW THE
COMBINATION OF TURBINE DRIVER AND COMPRESSOR AS "MORE THAN" A
COMPRESSOR AND, AS A RESULT, CLASSIFY THE COMBINATION UNDER HTSUS
SUBHEADING 8419.60.5000.

COMPRESSORS FOR USE IN EPGTS, IF IMPORTED SEPARATELY, MAY
ALSO BE CLASSIFIED UNDER HTSUS SUBHEADING 8414.80.2015. PARTS
FOR SUCH COMPRESSORS, INCLUDING ROTOR OR IMPELLERS AND HOUSING,
ARE CLASSIFIED UNDER HTSUS SUBHEADING 8414.90.4045 AND
8414.90.4055.

STEAM TURBINES FOR USE IN EPGTS, IF IMPORTED SEPARATELY, MAY
BE CLASSIFIED UNDER THE FOLLOWING HTSUS SUBHEADINGS:
8406.81.1020: STEAM TURBINES, OTHER THAN MARINE TURBINES,
STATIONARY, CONDENSING TYPE, OF AN OUTPUT EXCEEDING 40 MW;
8406.82.1010: STEAM TURBINES OTHER THAN MARINE TURBINES,
STATIONARY, CONDENSING TYPE, EXCEEDING 7,460 KW; 8406.82.1020:
STEAM TURBINES, OTHER THAN MARINE TURBINES, STATIONARY,
CONDENSING TYPE, EXCEEDING 7,460 KW, BUT NOT EXCEEDING 40 MW;
8406.82.1050: STEAM TURBINES, OTHER THAN MARINE TURBINES,
STATIONARY, OTHER THAN CONDENSING TYPE, NOT EXCEEDING 7,460 KW;
8406.82.1070: STEAM TURBINES, OTHER THAN MARINE TURBINES,
STATIONARY, OTHER THAN CONDENSING TYPE, EXCEEDING 7,460 KW, BUT
NOT EXCEEDING 40 MW. PARTS FOR SUCH TURBINES ARE CLASSIFIED
UNDER HTSUS SUBHEADING 8406.90.2000 THROUGH 8406.90.4580.

CONTROL AND OTHER AUXILIARY SYSTEMS MAY BE CLASSIFIED UNDER
HTSUS 9032.89.6030, "AUTOMATIC REGULATING OR CONTROLLING
INSTRUMENTS AND APPARATUS: COMPLETE PROCESS CONTROL SYSTEMS."

MOTOR AND GEAR BOX ENTRIES MAY BE CLASSIFIED UNDER HTSUS
SUBHEADING 8501.53.4080, 8501.53.6000, 8501.53.8040, OR
8501.53.8060. GEAR SPEED CHANGERS USED TO MATCH THE SPEED OF AN
ELECTRIC MOTOR TO THE SHAFT SPEED OF A DRIVEN COMPRESSOR, WOULD
BE CLASSIFIED UNDER HTSUS SUBHEADING 8483.40.5010.

LUBRICATION SYSTEMS MAY BE CLASSIFIED UNDER HTSUS SUBHEADING
8414.90.4075.

ALTHOUGH THE HTSUS SUBHEADINGS ARE PROVIDED FOR CONVENIENCE
AND CUSTOMS' OUR WRITTEN DESCRIPTION OF THE SCOPE OF THIS
INVESTIGATION IS DISPOSITIVE.

3. EFFECTIVE DECEMBER 10, 1996, THE CUSTOMS SERVICE SHALL
REQUIRE, FOR SUCH ENTRY SUMMARIES, A CASH DEPOSIT OR THE POSTING
OF A BOND EQUAL TO THE MARGINS SHOWN BELOW:

EXPORTER/MANUFACTURER & WEIGHTED AVERAGE
AFFILIATED US IMPORTER ID NUMBER MARGINE PERCENTAGE

MITSUBISHI HEAVY
INDUSTRIES A-588-837-001 34.37%

ALL OTHERS A-588-837-000 34.37%

4. THE CUSTOMS SERVICE SHALL REQUIRE THAT JAPANESE
PRODUCERS/FOREIGN EXPORTERS IN THE EPGTS INDUSTRY STIPULATE ON
THE SHIPMENT INVOICES THE EPGTS CONTRACT NUMBER PURSUANT TO WHICH
THE SUBJECT MERCHANDISE IS IMPORTED. IN ORDER TO ENSURE THAT THE
SUSPENSION OF LIQUIDATION INSTRUCTIONS ARE NOT SO BROAD AS TO
COVER MERCHANDISE IMPORTED FOR NON-SUBJECT USES, THE CUSTOMS
SERVICE SHALL REQUIRE THAT THE JAPANESE PRODUCERS/FOREIGN
EXPORTERS IN THE EPGTS INDUSTRY PROVIDE CERTIFICATION THAT THE
IMPORTED MERCHANDISE IS NOT SUBJECT. AN APPROPRIATE CERIFICATION
BY THESE PARTIES READS AS FOLLOWS:

"I, {NAME AND TITLE}, HEREBY CERTIFY THAT THIS ENTRY/SHIPMENT
DOES NOT CONTAIN MERCHANDISE THAT IS IMPORTED FROM JAPAN PURSUANT
TO A CONTRACT FOR AN ENGINEERED PROCESS GAS TURBO-COMPRESSOR
SYSTEM AND IS, THEREFORE, NOT SUBJECT TO PRELIMINARY ANTIDUMPING
DUTIES."

5. FOR THOSE ENTRIES OF EPGTS PARTS IMPORTED PURSUANT TO AN
EPGTS CONTRACT, WHEN TAKEN ALTOGETHER, CONSTITUTE LESS THAN 50
PERCENT OF THE COST OF MANUFACTURE OF THE COMPLETE EPGTS OF WHICH
THEY ARE A PART, THE CUSTOMS SERVICE SHALL SUSPEND LIQUIDATION AT
A ZERO DUTY RATE, PROVIDED THAT THESE ENTRIES ARE ACCOMPANIED BY
A CERTIFICATION FROM THE JAPANESE PRODUCER/FOREIGN EXPORTER WHICH
READS AS FOLLOWS:

"I,{NAME AND TITLE}, HEREBY CERTIFY THAT THE COST OF THE
ENGINEERED PROCESS GAS TURBO-COMPRESSOR SYSTEM PARTS CONTAINED IN
THIS AND ALL OTHER ENTRIES/SHIPMENTS FROM JAPAN PURSUANT TO
CONTRACT NUMBER ---, CONSTITUTES LESS THAN 50 PERCENT OF THE COST
OF MANUFACTURE OF THE COMPLETE ENGINEERED PROCESS GAS
TURBO-COMPRESSOR SYSTEM OF WHICH THEY ARE A PART. I ALSO CERTIFY
THAT THE REQUIRED DOCUMENTATION SUBSTANTIATING THIS CERTIFICATION
HAS ALREADY BEEN SENT TO THE DEPARTMENT OF COMMERCE.

NOTE: IT IS NOT THE RESPONSIBILITY OF CUSTOMS FIELD OFFICERS TO
VERIFY THE ACCURACY OF THE CERITIFICATION.

THESE INSTRUCTIONS WILL REMAIN IN EFFECT UNTIL FURTHER NOTICE.

6. WITH RESPECT TO ENTRIES OF SPARE AND REVAMP/REPAIR PARTS FROM
JAPAN, THE CUSTOMS SERVICE SHALL NOT SUSPEND LIQUIDATION OF THESE
ENTRIES IF THEY ARE NOT INCLUDED IN THE ORIGINAL CONTRACT OF SALE
FOR THE EPGTS OF WHICH THEY ARE INTENDED TO BE A PART.

7. IF THERE ARE ANY QUESTIONS REGARDING THIS MATTER BY CUSTOMS
OFFICERS, PLEASE CONTACT VIA E-MAIL THROUGH THE APPROPRIATE
SUPERVISORY CHANNELS, IMPORT OPERATIONS,
ANTIDUMPING/COUNTERVAILING DUTY, USING ATTRIBUTE "HQ OAB". ALL
OTHER INTERESTED PARTIES SHOULD CONTACT IRENE DARZENTA OR HOWARD
SMITH, OFFICE OF AD/CVD ENFORCEMENT, IMPORT ADMINISTRATION,
INTERNATIONAL TRADE ADMINISTRATION, U.S. DEPARTMENT OF COMMERCE
AT (202) 482-6320 OR (202) 482-5193, RESPECTIVELY.


PAUL SCHWARTZ
(ACTING)