[Federal Register Volume 59, Number 122 (Monday, June 27, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15534]


[[Page Unknown]]

[Federal Register: June 27, 1994]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE
International Trade Administration
[A-821-807]
 

Notice of Initiation of Antidumping Duty Investigation: 
Ferrovanadium and Nitrided Vanadium From the Russian Federation

AGENCY: Import Administration, International Trade Administration, 
Commerce.

EFFECTIVE DATE: June 27, 1994.

FOR FURTHER INFORMATION CONTACT:
Michelle Frederick or David Goldberger, Office of Antidumping 
Investigations, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, N.W., Washington, D.C., 20230; telephone (202) 
482-0186 or 482-4136. 
Initation of Investigation 
The Petition

    On May 31, 1994, we received a petition filed in proper form by 
Shieldalloy Metallurgical Corporation (``Shieldalloy''). In accordance 
with 19 CFR 353.12, petitioner alleges that imports of ferrovanadium 
and nitrided vanadium from the Russian Federation are being, or are 
likely to be, sold in the United States at less than fair value within 
the meaning of section 731 of the Tariff Act of 1930, as amended (``the 
Act''), and that such imports are materially injuring, or threaten 
material injury to, a U.S. industry.
    Petitioner states that it has standing to file the petition because 
it is a domestic industry producing the produce subject to this 
investigation. If any interested party, as described under paragraphs 
(C), (D), (E), or (F) of section 771(9) of the Act, wishes to register 
support for, or opposition to, this petition, it should file a written 
notification with the Assistant Secretary for Import Administration.

Scope of Investigation

    The products covered by this investigation are imports of 
ferrovanadium and nitrided vanadium, regardless of grade, chemistry, 
form, shape, or size, unless expressly excluded from the scope of this 
investigation. Ferrovanadium includes alloys containing vanadium as the 
predominant element, by weight (i.e. more weight than any other 
element, except iron in some instances), and at least 4 percent, by 
weight, of iron. Nitrided vanadium includes alloys containing vanadium 
as the predominant element, by weight, and at least 5 percent, by 
weight, of nitrogen. Excluded from the scope of this investigation are 
vanadium additives other than ferrovanadium and nitrided vanadium, such 
as vanadium-aluminum master alloys, vanadium chemicals, vanadium waste 
and scrap, vanadium-bearing raw materials such as slag, boiler 
residues, and fly ash, and vanadium oxides.
    The products subject to this investigation are classifiable under 
subheadings 7202.92.00 and 2850.00.20 of the Harmonized Tariff Schedule 
of the United States (``HTSUS''). Although the HTSUS subheadings are 
provided for convenience and customs purposes, our written description 
of the scope is dispositive.

United States Price and Foreign Market Value

    Petitoner based United States Price (USP) on price quotes to U.S. 
customers, and made adjustments for distributor mark-ups and movement 
expenses.
    Petitioner contends that the foreign market value (FMV) of Russian-
produced imports subject to this investigation must be determined in 
accordance with section 773(c) of the Act, which concerns non-market 
economy (NME) countries. The Russian Federation is presumed to be an 
NME within the meaning of section 771(18)(C) of the Act, because the 
Department has treated it as such in previous investigations (See, 
e.g., Final Determination of Sales at Less Than Fair Value: 
Ferrosilicon from the Russian Federation, 58 FR 29192 (May 19, 1993)).
    In accordance with section 773(c) of the Act, foreign market value 
(FMV) in NME cases is based on NME producers' factors of production, as 
valued in a market economy country. Absent evidence that a particular 
NME country government determines which of its factories shall produce 
for export to the United States, we intend, for purposes of this 
investigation, to base FMV only on those factories that produced 
ferrovanadium and/or nitrided vanadium sold to the United States during 
the period of investigation (POI).
    In the course of this investigation, parties will have the 
opportunity to address this NME determination and provide relevant 
information and argument on this issue. In addition, parties will have 
the opportunity in this investigation to submit comments on whether FMV 
should be based on prices or costs in the respective NME.
    Petitioner calculated FMV on the basis of the valuation of the 
factors of production. The factors of production used by petitioner 
were based on experience at a German factory, related to the 
petitioner, which uses a production process similar to that used in 
Russia. Petitioner's FMV consisted of the sum of raw materials: labor, 
energy, utilities, overhead, general expenses, profit and packing.
    To value the factors of production, petitioner, citing an August 
11, 1992, memorandum from the Import Administration Office of Policy to 
David L. Binder with regard to Ferrosilicon from Russia, used Brazil as 
the surrogate country and relied on information obtained by a related 
party in Brazil. Where it could not obtain Brazilian data, petitioner 
used information on South Africa, as South Africa was also mentioned as 
a possible surrogate for Russia in the August 11, 1992, memorandum. 
Petitioner relied on the Brazilian related party's labor rate data 
instead of publicly available, published information because it 
contended that the public data were obsolete and/or less accurate. 
Because the Department has a clear preference for the use of publicly 
available, published information, and petitioner did not demonstrate 
conclusively that its reported labor rates were superior to the 
publicly available information, we have recalculated FMV using the 
labor rate submitted in the petition of Pure and Alloy Magnesium from 
the Russian Federation, which is based on a publicly available, 
published cost index for Brazil.

Fair Value Comparisons

    Based on the information contained on the petition and subsequent 
amendments, comparisons of USP and FMV result in alleged dumping 
margins of 92.6 to 108 percent.

Initiation of Investigation

    We have examined the petition on ferrovanadium and nitrided 
vanadium and have found that it meets the requirements of section 
732(b) of the Act. Therefore, we are initiating an antidumping duty 
investigation to determine whether imports of ferrovanadium and 
nitrided vanadium from the Russian Federation are being, or are likely 
to be, sold in the United States at less than fair value.

ITC Notification

    Section 732(d) of the Act requires us to notify the International 
Trade Commission (ITC) of these actions, and we have done so.

Preliminary Determination by the ITC

    The ITC will determine by July 15, 1994, whether there is a 
reasonable indication that imports of ferrovanadium and nitrided 
vanadium from the Russian Federation are materially injuring, or 
threaten material injury to, a U.S. industry. Any ITC determination 
which is negative will result in the termination of the investigation; 
otherwise, this investigation will proceed according to statutory and 
regulatory time limits.
    This notice is published pursuant to section 732(c)(2) of the Act 
and 19 CFR 353.13(b).

    Dated: June 20, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-15534 Filed 6-22-94; 8:45 am]
BILLING CODE 3510-DS-M