MESSAGE NO: 7178112 DATE: 06 27 1997
CATEGORY: ADA TYPE: ORD
REFERENCE: REFERENCE DATE:
CASES: A - 588 - 840 - -
- - - -
- - - -

PERIOD COVERED: 06 16 1997 TO

LIQ SUSPENSION DATE:

TO: CMC DIRECTORS,
PORT DIRECTORS

FROM: DIRECTOR, IMPORT OPERATIONS

RE: ANTIDUMPING DUTY ORDER ON ENGINEERED GAS TURBON-COMPRESSOR
SYSTMS (EPGTS), FROM JAPAN (A-588-840)


1. ON JUNE 16, 1997, THE DEPARTMENT OF COMMERCE PUBLISHED IN THE
FEDERAL REGISTER ITS ANTIDUMPING DUTY ORDER AND AMENDED FINAL
DETERMINATION IN THE INVESTIGATION OF ENGINEERED PROCESS GAS
TURBO-COMPRESSOR SYSTEMS, WHETHER ASSEMBLED OR UNASSEMBLED, AND
WHETHER COMPLETE OR INCOMPLETE FROM JAPAN.

2. THE PRODUCTS COVERED BY THIS ORDER ARE ENGINEERED
PROCESS GAS 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 COMPRESSORS AND COMPRESSOR DRIVERS,
WHETHER ASSEMBLED OR UNASSEMBLED, AND WHETHER COMPLETE OR
INCOMPLETE. 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 ETHLYNE, PROPYLENE, AMMONIA, UREA, METHANOL, REFINERY AND
OTHER PETROCHEMICAL PRODUCTS. THIS ORDER 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 ORDER 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, 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 A 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 COMPRESSIONS, E.G.,
AMMONIA, UREA, METHANOL, PROPYLENE, OR ETHYLENE SERVICE.

TURBINES ARE CLASSIFIED (1) AS STEAM OR GAS; (2) BY
MECHANICAL ARRANGMENT 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 MAY BE USED AS A COMPRESSOR DRIVER IN
LIEU OF A STEAM TURBINE. A CONTROL SYSEM IS USED TO MONITOR AND
CONTROL THE OPERATION OF A TURBO-COMPRESSOR SYSTEM. A
LUBRICATION SYSTEM IS ENGINEERED TO SUPPORT A SUBJECT COMPRESSOR
AND STEAM 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 GEAR BOX, IF ANY. THE LUBE AND OIL SEAL SYSTEMS
FOR THE TURBINE AND COMPRESSOR(S) ARE USUALLY MOUNTED ON A
SEPARATE BASE PLATE.

THE SCOPE OF THIS ORDER COVERS BOTH ASSEMBLED AND
UNASSEMBLED EPGTS FROM JAPAN. BECAUSE OF THEIR LARGE SIZE, EPGTS
AND THEIR CONSTITUENT PARTS ARE TYPICALLY SHIPPED PARTIALLY
ASSMEBLED (OR UNASSEMBLED) TO THEIR DESTINATION WHERE THEY ARE
ASSEMBLED AND/OR COMPLETED PRIOR TO THEIR COMMISSIONING.

THE SCOPE OF THIS ORDER ALSO COVERS "COMPLETE AND
INCOMPLETE" EPGTS FROM JAPAN. A "COMPLETE" EGPTS 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 ORDER 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 MANUFACTURER 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 AND GEAR BOXES, CONTROL
SYSTEMS AND LUBRICATION SYSTEMS, AND AUXIALIARY 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 CUSTOMS SERVICE MAY VIEW THE
COMBINATION OF TURBINE DRIVERS AND COMPRESSOR AS "MORE THAN" A
COMPRESSOR AND, AS A RESULT, CLASSIFY THE COMBINATION OF TURBINE
DRIVER AND COMPRESSOR AS "MORE THAN" A COMPRESSOR AND 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 ROTORS 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,
STATITIONARY, 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, OTHER
THAN 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 PURPOSES, THE WRITTEN DESCRIPTION OF THE SCOPE OF THIS
INVESTIGATION IS DISPOSITIVE.

3. FOR FURTHER REPORTING PURPOSES THIS CASE HAS BEEN ASSIGNED
INVESTIGATION NUMBER A-588-840.

4. FOR IMPORTS OF ENGINEERED PROCESS GAS TURBO-COMPRESSOR
SYSTEMS, THE CUSTOMS SERVICE SHALL SUSPEND LIQUIDATION OF SUCH
SHIPMENTS THAT ARE ENTERED OR WITHDRAWN FROM WAREHOUSE, FOR
CONSUMPTION ON OR AFTER JUNE 16, 1997. EFFECTIVE JUNE 16, 1997,
CUSTOMS SHALL REQUIRE A CASH DEPOSIT EQUAL TO THE MARGIN RATES
SHOWN BELOW:

MFR/PRODUCER CUSTOMS ID MARGIN
EXPORTER NUMBER PERCENTAGE

MITSUBISHI HEAVY INDUSTRIES
MITSUBISHI CORPORATION A-588-840-001 38.32%

ALL OTHERS A-588-840-000 38.32%

5. 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 PRODUCER/FOREIGN SERVICE
SHALL REQUIRE THAT THE JAPANESE PRODUCER/FOREIGN EXPORTERS IN THE
EPGTS INDUSTRY PROVIDE CERTIFICATION THAT THE EXPORTED
MERCHANDISE IS NOT SUBJECT. AN APPROPRIATE CERTIFICATION FROM
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
SYSTEMS AND IS THEREFORE, NOT SUBJECT TO ANTIDUMPING DUTIES."

6. FOR THOSE ENTRIES OF EPGTS PARTS, OTHER THAN SPARE OR
REPLACEMENT PARTS, IMPORTED PURSUANT TO AN EPGTS CONTRACT, THE
CUSTOMS SERVICE SHALL CONTINUE TO SUSPEND LIQUIDATION AT THE
ABOVE-SPECIFIED MARGINS UNITL FURTHER NOTICE FROM THE COMMERCE
DEPARTMENT. THE CUSTOMS SERVICE SHALL NO LONGER ACCEPT ANY
CERTIFICATION PROVIDED BY THE JAPANESE PRODUCER/FOREIGN EXPORTER
CLAIMING THAT THE PARTS, WHEN TAKEN ALTOGETHER CONSTITUTE LESS
THAN 50 PERCENT OF THE COST OF MANUFACTURER OF THE COMPLETE EPGTS
OF WHICH THEY ARE A PART AND THIS IS NOT SUBJECT TO ANTIDUMPING
DUTIES.

THE SUSPENSION OF LIQUIDATION WITH RESPECT TO EPGTS PARTS WILL
REMAIN IN EFFECT PROVIDED THAT THE SUM OF SUCH ENTRIES REPRESENTS
AT LEAST 50 PERCENT OF THE COST OF MANUFACTURE OF THE COMPLETE
EPGTS OF WHICH THEY AREA PART. THIS DETERMINATION WILL BE MADE
BY THE COMMERCE DEPARTMENT ONLY AFTER ALL ENTRIES OF PARTS
IMPORTED PURSUANT TO AN EPGTS CONTRACT ARE MADE AND THE COMPLETE
EPGTS PURSUANT TO THE CONTRACT IS PRODUCED, UNLESS A REQUEST FOR
A SCOPE INQUIRY IS MADE BY AN INTERESTED PARTY AT LEAST 75
CALENDAR DAYS PRIOR TO THE INTENDED DATE OF ENTRY OF THE EPGTS
PARTS IN WHICH THE INTERESTED PARTY CLAIMS THAT THE PARTS TO
BEIMPORTED, WHEN TAKEN ALTOGETHER, CONSTITUTE LESS THAN 50
PERCENT OF THE COST OF MANUFACTURER OF THE COMPLETE EPGTS OF
WHICH THEY ARE A PART. UPON RECEIVING SUCH A REQUEST, THE
COMMERCE DEPARTMENT WILL INITIATE A SCOPE INQUIRY AND PROCEDURES
WITH RESPECT TO THE ENTRIES AT ISSUE AS A RESULT OF ITS SCOPE
RULING.

THESE INSTRUCTIONS WILL REMAIN IN EFFECT UNTIL FURTHER NOTICE.

7. 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.

8. 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." THE
IMPORTING PUBLIC AND OTHER INTERESTED PARTIES SHOULD CONTACT
DAVID GENOVESE OR IRENE DARZENTA, AT 202-482-4697 OR
202-482-6320, OFFICE OF AD/CVD ENFORCEMENT, INTERNATIONAL TRADE
ADMINISTRATION, DEPARTMENT OF COMMERCE.

9. THERE ARE NO RESTRICTIONS ON THE RELEASE OF THIS INFORMATION.

BYLLE PATTTERSON
ACTING