[Federal Register Volume 59, Number 36 (Wednesday, February 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4059]
[[Page Unknown]]
[Federal Register: February 23, 1994]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-351-820]
Notice of Amended Final Determination of Sales at Less Than Fair
Value: Ferrosilicon From Brazil
Agency: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: February 23, 1994.
FOR FURTHER INFORMATION CONTACT: Kimberly Hardin, Office of Antidumping
Investigations, Import Administration, U.S. Department of Commerce,
14th Street and Constitution Avenue, NW., Washington, DC 20230;
telephone (202) 482-0371.
Amendment of Final Determination
In accordance with 19 CFR 353.28(c)(1993), we are amending the
final determination of the antidumping duty investigation of
ferrosilicon from Brazil (59 FR 732, January 6, 1994) to announce the
Department's correction of ministerial errors in the calculations.
Case History
Since publication of the notice of final determination on January
6, 1994 (59 FR 732), the following events have occurred.
On January 21, 1994, petitioners and one of the respondents,
Companhia Ferroligas Minas Gerais (Minasligas), alleged that the
Department made several ministerial errors in its final determination.
On January 24, 1994, respondent Companhia Brasileira Carbureto de
Calcio (CBCC) also alleged that the Department made ministerial errors
in its final determination. On January 31, 1994, petitioners submitted
comments on the ministerial error allegations submitted by CBCC. Also
on January 31, 1994, Minasligas submitted comments on the ministerial
error allegations submitted by petitioners. All allegations and
comments were timely.
Scope of Investigation
The merchandise subject to this investigation is ferrosilicon
(FeSi), a ferroalloy generally containing, by weight, not less than
four percent iron, more than eight percent but not more than 96 percent
silicon, not more than 10 percent chromium, not more than 30 percent
manganese, not more than three percent phosphorous, less than 2.75
percent magnesium, and not more than 10 percent calcium of any other
element. For a complete description of the merchandise covered by this
investigation, see Final Determination of Sales at Less Than Fair
Value: Ferrosilicon from Brazil (59 FR 732, January 6, 1994).
Ministerial Error Allegations
On January 21, 1994, petitioners alleged that the Department made
several ministerial errors in its final determination. First,
petitioners state that the Department improperly included home market
``credit expenses'' reported by two respondents, Minasligas and CBCC,
in the price that was compared to the monthly cost of production (COP)
for purposes of the COP test.
We agree with petitioners that this constitutes a ministerial error
and have recalculated accordingly. In this investigation, we intended
to make contemporaneous comparisons by comparing the price at the time
of shipment to the replacement cost in the month of shipment. However,
our comparisons were not contemporaneous because the COP in one month
was compared to a price charged in the same month which included an
adjustment for anticipated inflation. We thus determine that this
constitutes an unintentional ministerial error as defined at 19 CFR
353.28(d). As a result of our recalculation, U.S. sales for both
companies are now being compared to constructed value (CV). For the one
U.S. sale made by Minasligas for which Minasligas did not report CV
information, we indexed period of investigation (POI) average costs to
February 1993 using International Monetary Fund's Brazilian wholesale
price index. For two U.S. sales made by CBCC shipped outside the POI,
CBCC incorrectly reported direct selling expenses. We calculated the
direct selling expenses for these sales as a percentage of cost of
manufacture based on CBCC's actual experience for each month of the
POI.
Second, petitioners claim the Department erroneously imputed
negative U.S. credit expenses for Minasligas by treating the first date
on which Minasligas borrowed from U.S. advance exchange contracts as
the date of payment by the purchaser (Minasligas received the first
draw from the advance exchange contract prior to the date of shipment).
In addition, petitioners claim we incorrectly used a cruzeiro-
denominated interest rate to calculate Minasligas' negative U.S. credit
figures.
We disagree with petitioners. We note that we accounted for actual
expenses associated with the advance exchange contracts by making a
circumstance of sale adjustment to foreign market value (FMV).
Regarding the use of the first versus the second advance exchange
contract payment date as well as the use of the monthly cruzeiro-
denominated interest rate for calculating U.S. credit, these decisions
are discussed in the final determination concurrence memorandum.
Accordingly, we do not consider these issues to constitute ministerial
errors, as defined in 19 CFR 353.28.
Third, petitioners claim the Department inaccurately imputed home
market credit expenses by assuming Minasligas had reported 30 day
interest rates for each transaction. We agree with petitioners that
this is a ministerial error. We recalculated home market imputed credit
expenses to accurately reflect the actual interest rate for each
transaction.
Finally, petitioners claim we wrongly allowed a monetary correction
offset of loans in our calculation of interest expenses for COP. We
disagree with petitioners. We followed our normal practice of adjusting
financial expenses to compensate for the effects of hyperinflation so
that only the actual interest expenses are reflected. Therefore,
petitioners' claim does not constitute a ministerial error as defined
by 19 CFR 353.28.
On January 21, 1994, respondent Minasligas alleged that the
Department made a ministerial error in its final determination.
Minasligas claims that, because we used incorrect figures in two
instances, we erroneously calculated Minasligas' general and
administrative (G&A) expenses. We agree with Minasligas that this is a
ministerial error and have recalculated Minasligas' G&A expenses
accordingly.
On January 24, 1994, respondent CBCC alleged that the Department
made several ministerial errors in its final determination. First, CBCC
claims that we failed to use the correct interest expense ratio for CV
purposes. We agree with CBCC that the incorrect interest expense ratio
was used for CV purposes, and have changed our calculation accordingly.
Second, CBCC claims that we double-counted inventory holding gain/
loss in our calculation of the CV related to a December U.S. sale. We
disagree with CBCC. Inventory holding gain/loss was appropriately
accounted for in the calculation of CV. However, we have removed
inventory carrying costs from our analysis as it is not our policy to
include this element in purchase price calculations.
Third, CBCC argues that we used an incorrect monthly ``Unidade
Fiscal de Referencia'' figure in our depreciation calculation. CBCC
claims we did not consider the ``special depreciation'' which was
mandated by the Brazilian Government to compensate for the period in
which Brazilian companies were prohibited from recognizing
depreciation. CBCC claims the result is that we used an incorrect
multiplier, thus overstating depreciation expense. We disagree with
CBCC that we used an incorrect multiplier and that our depreciation
expense calculation was overstated. Thus, we find that the calculation
does not contain a ministerial error.
Finally, CBCC alleges that we failed to make proper adjustments to
a U.S. price (USP) converted to cruzeiros because USP is compared to
costs which are expressed in cruzeiros at a later date. CBCC claims the
CV should be adjusted for the lag between the cost calculation and the
conversion of the sales price into cruzeiros. We note that we did not
convert USP into cruzeiros. Moreover, we followed our normal
methodology for hyperinflationary economies of using the CV in the
month of shipment of the U.S. sale. Accordingly, we find that this is
not a ministerial error.
Therefore, pursuant to section 735(e) of the Act, we are correcting
the above ministerial errors made in our final determination of sales
at less than fair value.
See memorandum to Barbara R. Stafford from David L. Binder,
February 8, 1994, for a detailed explanation of the decisions noted
above.
Inclusion of Minasligas
In the final determination, the Department found that Minasligas
had a zero dumping margin. In consequence, the Department excluded
Minasligas from the results of the investigation, and instructed the
Customs Service to terminate suspension of liquidation for all entries
of FeSi from Minasligas and to release any bond or other security and
to refund any cash deposits with respect to these entries in accordance
with section 735(c)(2) of the statute.
However, as noted above, the Department has determined that
ministerial errors exist with respect to the calculation of Minasligas'
dumping margin. The recalculation of Minasligas' margin results in the
finding of sales at less than fair value. Accordingly, we are directing
the Customs Service to reinstitute suspension of liquidation of all
remaining entries of FeSi from Minasligas, entered or withdrawn from
warehouse, for consumption on or after August 16, 1993, which is the
date of the publication of our affirmative preliminary determination in
the Federal Register (58 FR 43323) and before January 6, 1994, which is
the date of publication of our final determination in the Federal
Register. For all unliquidated entries made during the period from
August 16, 1993, to January 6, 1994, the Customs Service shall retain
the cash deposits collected, or bonds posted, as a result of the
preliminary determination.
In addition, as a result of the amended final determination, we are
directing the Customs Service to suspend liquidation of all entries of
FeSi from Minasligas, entered or withdrawn from warehouse, for
consumption on or after the date of the publication of this notice in
the Federal Register. The Customs Service shall require a cash deposit
or posting of a bond equal to the estimated margin amount by which the
FMV of the subject merchandise exceeds the USP as shown in the
``Suspension of Liquidation'' section below.
Suspension of Liquidation
In accordance with section 735(c)(4)(A) of the Act, we are
directing the U.S. Customs Service to continue to retroactively suspend
liquidation of all entries of FeSi from Italmagnesio S.A. Industria e
Comercio. Retroactive suspension applies to entries of FeSi, that are
entered, or withdrawn from warehouse, for consumption on or after May
18, 1993, which is the date 90 days prior to the date of the
publication of our preliminary determination in the Federal Register.
For CBCC and ``All Other Exporters,'' we are directing the Customs
Service to continue to suspend liquidation of all entries of FeSi from
Brazil, that are entered, or withdrawn from warehouse, for consumption
on or after August 16, 1993.
The Customs Service shall require a cash deposit or posting of a
bond equal to the estimated margin amount by which the FMV of the
subject merchandise exceeds the USP as shown below.
------------------------------------------------------------------------
Margin
Manufacturer/producer/exporter percent Critical
circumstances
------------------------------------------------------------------------
Italmagnesio S.A. Industria e Comercio......... 88.86 Yes.
Companhia Brasileira Carbureto de Calcio....... 15.53 No.
Companhia Ferroligas Minas Gerais.............. 3.46 No.
All Others..................................... 35.95 No.
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ITC Notification
In accordance with section 735(d) of the Act, we have notified the
ITC of our determination.
This amended final determination is published pursuant to section
735(d) of the Act (19 U.S.C. 1673d(d)) and 19 CFR 353.28(c).
Dated: February 15, 1994.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 94-4059 Filed 2-22-94; 8:45 am]
BILLING CODE 3510-DS-P