[Federal Register Volume 60, Number 133 (Wednesday, July 12, 1995)]
[Notices]
[Pages 35893-35895]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17043]



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DEPARTMENT OF COMMERCE
International Trade Administration
[A-421-803]


Certain Cold-Rolled Carbon Steel Flat Products From The 
Netherlands; Preliminary Results of Antidumping Duty Administrative 
Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

ACTION: Notice of Preliminary Results of Antidumping Duty 
Administrative Review.

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SUMMARY: In response to a request by the respondent, the Department of 
Commerce (the Department) has conducted an administrative review of the 
antidumping duty order on Certain Cold-Rolled Carbon Steel Flat 
Products From the Netherlands (A-421-804). The review covers one 
manufacturer/exporter of the subject merchandise to the United States 
during the period of review (POR) August 18, 1993 through July 31, 
1994.
    We have preliminarily determined that sales have been made below 
the foreign market value (FMV). If these preliminary results are 
adopted in our final results of administrative review, we will instruct 
U.S. Customs to assess antidumping duties equal to the difference 
between the United States price (USP) and the FMV.
    Interested parties are invited to comment on these preliminary 
results.

EFFECTIVE DATE: July 12, 1995.

FOR FURTHER INFORMATION CONTACT: Helen Kramer or Robin Gray, Office of 

[[Page 35894]]
Agreements Compliance, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230, telephone: (202) 482-
0405 or (202) 482-0196, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On July 9, 1993, the Department published in the Federal Register 
(58 FR 37199) the final affirmative antidumping duty determination on 
Certain Cold-Rolled Carbon Steel Flat Products from the Netherlands, 
for which we published an antidumping duty order on August 19, 1993 (58 
FR 44172). On August 3, 1994, the Department published the notice of 
``Opportunity to Request an Administrative Review'' of this order for 
the period August 18, 1993 through July 31, 1994 (59 FR 39543). One 
respondent, Hoogovens Groep BV (Hoogovens), requested an administrative 
review (59 FR 39543). We initiated the administrative review for the 
period August 18, 1993 through July 31, 1994, on September 8, 1994 (59 
FR 46391). The Department is now conducting this review in accordance 
with section 751 of the Tariff Act of 1930, as amended (the Tariff 
Act).

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute and to the 
Department's regulations are references to the provisions as they 
existed on December 31, 1994.
Scope of the Review

    The products covered by this review include cold-rolled (cold-
reduced) carbon steel flat-rolled products, of rectangular shape, 
neither clad, plated nor coated with metal, whether or not painted, 
varnished or coated with plastics or other nonmetallic substances, in 
coils (whether or not in successively superimposed layers) and of a 
width of 0.5 inch or greater, or in straight lengths which, if of a 
thickness less than 4.75 millimeters, are of a width of 0.5 inch or 
greater and which measures at least 10 times the thickness or if of a 
thickness of 4.75 millimeters or more are of a width which exceeds 150 
millimeters and measures at least twice the thickness, as currently 
classifiable in the Harmonized Tariff Schedule (HTS) under item numbers 
7209.11.0000, 7209.12.0030, 7209.12.0090, 7209.13.0030, 7209.13.0090, 
7209.14.0030, 7209.14.0090, 7209.21.0000, 7209.22.0000, 7209.23.0000, 
7209.24.1000, 7209.24.5000, 7209.31.0000, 7209.32.0000, 7209.33.0000, 
7209.34.0000, 7209.41.0000, 7209.42.0000, 7209.43.0000, 7209.44.0000, 
7209.90.0000, 7210.70.3000, 7210.90.9000, 7211.30.1030, 7211.30.1090, 
7211.30.3000, 7211.30.5000, 7211.41.1000, 7211.41.3030, 7211.41.3090, 
7211.41.5000, 7211.41.7030, 7211.41.7060, 7211.41.7090, 7211.49.1030, 
7211.49.1090, 7211.49.3000, 7211.49.5030, 7211.49.5060, 7211.49.5090, 
7211.90.0000, 7212.40.1000, 7212.40.5000, 7212.50.0000, 7217.11.1000, 
7217.11.2000, 7217.11.3000, 7217.19.1000, 7217.19.5000, 7217.21.1000, 
7217.29.1000, 7217.29.5000, 7217.31.1000, 7217.39.1000, and 
7217.39.5000. Included in this review are flat-rolled products of 
nonrectangular cross-section where such cross-section is achieved 
subsequent to the rolling process (i.e., products which have been 
``worked after rolling'')--for example, products which have been 
bevelled or rounded at the edges. Excluded from this review is certain 
shadow mask steel, i.e., aluminum-killed, cold-rolled steel coil that 
is open-coil annealed, has a carbon content of less than 0.002 percent, 
is of 0.003 to 0.012 inch in thickness, 15 to 30 inches in width, and 
has an ultra flat, isotropic surface. These HTS item numbers are 
provided for convenience and Customs purposes. The written description 
remains dispositive.
    The POR is August 18, 1993, through July 31, 1994. This review 
covers sales of cold-rolled carbon steel by Hoogovens.

United States Price

    The Department used exporter's sales price (ESP) and purchase 
price, as defined in section 772 of the Tariff Act. ESP was based on 
the packed, delivered price to unrelated purchasers in the United 
States after further manufacturing. We made adjustments, where 
applicable, for foreign inland freight, ocean freight, marine 
insurance, brokerage and handling, U.S. inland freight, U.S. duty, 
commissions to unrelated parties, U.S. credit, discounts, billing 
adjustments, warranties and technical service expenses and packing 
expenses incurred in the United States, and indirect selling expenses 
(which include inventory carrying costs, other U.S.-incurred selling 
expenses, and export selling expenses). We also adjusted ESP for value 
added in further manufacturing, including an allocation of profit 
earned on U.S. sales. On April 28, 1995, Hoogovens submitted, at the 
Department's request, minor corrections to the ESP sales listing and 
further manufacturing cost data. However, this submission also included 
the breakout of two new model numbers. Further manufacturing costs were 
not provided for these two new models. To calculate further 
manufacturing costs for these models, we are using for purposes of the 
preliminary determination, as the best information available (``BIA'') 
(pursuant to section 776(c) of the Act) the maximum further 
manufacturing costs provided by Hoogovens for secondary merchandise. 
See Analysis Memorandum to the File, May 26, 1995.
    The purchase price sales were based on the sales price to the first 
unrelated purchaser in the United States. We made adjustments to 
purchase price, where appropriate, for foreign post-sale inland 
freight, foreign inland freight, ocean freight, marine insurance, 
brokerage and handling, U.S. duty, U.S. inland freight, discounts and 
billing adjustments.
    We also adjusted USP (purchase price and ESP) for value-added taxes 
(VAT) in accordance with our practice as outlined in Silicomanganese 
from Venezuela, Final Determination of Sales at Less Than Fair Value, 
59 FR 55439, November 7, 1994.
    No other adjustments were claimed or allowed.

Foreign Market Value

    Based on a comparison of the volume of home market and third 
country sales, we determined that the home market was viable. 
Therefore, in accordance with section 773(a)(1)(A) of the Tariff Act, 
we based FMV on the packed, delivered price to unrelated purchasers and 
related purchasers (where an arm's-length relationship was 
demonstrated) in the home market.
    Based on a review of Hoogoven's submissions, the Department 
determined that Hoogovens need not report its home market sales made by 
related parties to the first unrelated party (downstream sales), 
because Hoogovens' downstream sales were only a small portion of the 
company's reported home market sales.
    Hoogovens sold a small quantity of secondary subject merchandise in 
both the United States and home markets. In this review, the Department 
compared prime merchandise sold in the United States to prime 
merchandise sold in the home market, and secondary merchandise to 
secondary merchandise. In cases where a contemporaneous match for U.S. 
sales of secondary merchandise could not be found in the home market, 
the Department used the constructed value for prime merchandise to 
calculate FMV.

[[Page 35895]]

    We made adjustments, where applicable, for post-sale inland 
freight, inland insurance and for home market direct expenses for 
credit, warranties and technical services. We also made adjustments for 
discounts and rebates. We adjusted for VAT in accordance with our 
practice as outlined in various determinations, including 
Silicomanganese from Venezuela; Final Determination of Sales at Less 
Than Fair Value, 59 FR 55435, 55439 (November 7, 1994).
    In addition, for comparison to ESP sales, we adjusted FMV for 
indirect selling expenses (which include inventory carrying costs and 
other selling expenses) in the home market, limiting the home market 
indirect selling expense deductions by the amount of indirect selling 
expenses incurred in the United States. The deduction from FMV for home 
market indirect selling expenses was limited by the amount of the 
enhanced U.S. indirect selling expense, in accordance with section 
353.56 (b)(2) of the Department's regulations. In cases where a 
commission was granted on the U.S. sale only, we increased the amount 
classified as U.S. indirect selling expenses by the amount of the U.S. 
commission for comparison to home market indirect selling expenses. 
Also, after deducting home market packing, we added to FMV packing 
expenses incurred in the Netherlands for U.S. sales.
    We also adjusted for differences in physical characteristics. In 
calculating these differences, we adjusted the costs that Hoogovens had 
reduced for secondary merchandise so that they equalled those of prime 
merchandise. See IPSCO v. United States, 965 F.2d 1056, 1060 (Fed. Cir. 
1992).
    For comparison to purchase price sales, pursuant to section 773 of 
the Tariff Act, we added to FMV, where applicable, U.S. packing, 
credit, and warranty expenses.
    No other adjustments were claimed or allowed.

Preliminary Results of Review

    As a result of our comparison of USP to FMV we preliminarily 
determine that the following margin exists for the period August 18, 
1993 through July 31, 1994:

------------------------------------------------------------------------
                                                                Margin  
                        Manufacturer                          (percent) 
------------------------------------------------------------------------
Hoogovens..................................................         3.81
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    Interested parties may request disclosure within 5 days of the date 
of publication of this notice and may request a hearing within 10 days 
of publication. Any hearing, if requested, will be held 44 days after 
the date of publication or the first business day thereafter. Case 
briefs and/or written comments from interested parties may be submitted 
no later than 30 days after the date of publication. Rebuttal briefs 
and rebuttals to written comments, limited to issues raised in those 
comments, may be filed not later than 37 days after the date of 
publication of this notice. The Department will publish the final 
results of these administrative reviews including the results of its 
analysis of issues raised in any such written comments or at a hearing.
    The Department shall determine, and the Customs Service shall 
assess, antidumping duties on all appropriate entries. Individual 
differences between the USP and FMV may vary from the percentages 
stated above.
    Furthermore, the following deposit requirements will be effective 
for all shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of this administrative review, as provided for by section 
751(a)(1) of the Tariff Act. A cash deposit of estimated antidumping 
duties shall be required on shipments of Certain Cold-Rolled Carbon 
Steel Flat Products from the Netherlands as follows: (1) The cash 
deposit rates for the reviewed company will be those rates established 
in the final results of this review; (2) If the exporter is not a firm 
covered in this review, or the original less-than-fair-value (LTFV) 
investigation, but the manufacturer is, the cash deposit rate will be 
the rate established for the most recent period for the manufacturer of 
the merchandise; and (3) If neither the exporter nor the manufacturer 
is a firm covered in this review, the cash deposit rate will be 20.19 
percent. This is the ``all others'' rate from the LTFV investigation. 
See Antidumping Duty Order and Amendments to Final Determinations of 
Sales at Less Than Fair Value: Certain Hot-Rolled Carbon Steel Flat 
Products and Certain Cold-Rolled Carbon Steel Flat Products from the 
Netherlands, 58 FR 44172 (August 19, 1993).
    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 353.26 to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Department's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    This administrative review and this notice are in accordance with 
section 751(a)(1) of the Tariff Act (19 U.S.C. 1675(a)(1)) and 19 CFR 
353.22.

    Dated: July 5, 1995.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 95-17043 Filed 7-11-95; 8:45 am]
BILLING CODE 3510-DS-P