[Federal Register Volume 60, Number 137 (Tuesday, July 18, 1995)]
[Notices]
[Pages 36776-36779]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17499]



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DEPARTMENT OF COMMERCE
[A-405-802]


Certain Cut-To-Length Carbon Steel Plate From Finland; 
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 one respondent, the Department of 
Commerce (the Department) is conducting an administrative review of the 
antidumping duty order on Certain Cut-To-Length Carbon Steel Plate from 
Finland (A-405-802). This review covers one manufacturer/exporter of 
the subject merchandise to the United States during the period of 
review (POR) February 4, 1993, through July 31, 1994.
    We have preliminarily determined that sales have not 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 not to assess antidumping duties.
    Interested parties are invited to comment on these preliminary 
results.

EFFECTIVE DATE: July 18, 1995.

FOR FURTHER INFORMATION CONTACT: Jeanene Lairo or Stephen Jacques, 
Office of Agreements Compliance, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, N.W., Washington, D.C. 20230, telephone: (202) 
482-3793.

SUPPLEMENTARY INFORMATION:

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.

Background

    On July 9, 1993, the Department published in the Federal Register 
(58 FR 37136) the final affirmative antidumping duty determination on 
certain cut-to-length carbon steel plate 

[[Page 36777]]
from Finland, 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 February 4, 1993, through July 
31, 1994 (59 FR 39543). The respondent, Rautaruukki Oy, requested an 
administrative review. We initiated the review on September 8, 1994 (59 
FR 46391). The Department is conducting this review in accordance with 
section 751 of the Tariff Act of 1930, as amended (the Tariff Act).

Scope of the Review

    The products covered by this administrative review constitute one 
``class or kind'' of merchandise: certain cut-to-length carbon steel 
plate. These products include hot-rolled carbon steel universal mill 
plates (i.e., flat-rolled products rolled on four faces or in a closed 
box pass, of a width exceeding 150 millimeters but not exceeding 1,250 
millimeters and of a thickness of not less than 4 millimeters, not in 
coils and without patterns in relief), of rectangular shape, neither 
clad, plated nor coated with metal, whether or not painted, varnished, 
or coated with plastics or other nonmetallic substances; and certain 
hot-rolled carbon steel flat-rolled products in straight lengths, of 
rectangular shape, hot rolled, neither clad, plated, nor coated with 
metal, whether or not painted, varnished, or coated with plastics or 
other nonmetallic substances, 4.75 millimeters or more in thickness and 
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 7208.31.0000, 7208.32.0000, 
7208.33.1000, 7208.33.5000, 7208.41.0000, 7208.42.0000, 7208.43.0000, 
7208.90.0000, 7210.70.3000, 7210.90.9000, 7211.11.0000, 7211.12.0000, 
7211.21.0000, 7211.22.0045, 7211.90.0000, 7212.40.1000, 7212.40.5000, 
and 7212.50.0000. Included 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 is grade X-70 plate. These HTS item numbers are 
provided for convenience and Customs purposes. The written description 
remains dispositive.
    The POR is February 4, 1993, through July 31, 1994, and covers 
entries made of certain cut-to-length carbon steel plate by one 
manufacturer/exporter (Rautaruukki Oy).
United States Price

    All of Rautaruukki Oy's U.S. sales were based on the price to the 
first unrelated purchaser in the United States. The Department 
determined that purchase price, as defined in section 772 of the Tariff 
Act, was the appropriate basis for calculating United States price 
(USP).
    Before making adjustments to purchase price, we modified the U.S. 
sales database based on findings made at the sales and cost 
verifications. We revised technical service and ocean freight expenses, 
and reclassified the level of trade. Subsequently, we made adjustments 
to purchase price, where appropriate, for foreign brokerage and 
handling, and ocean freight. We disallowed advertising and technical 
services as U.S. direct selling expenses. These expenses were 
disallowed because Rautaruukki Oy failed to provide sufficient 
information supporting the claim that these were direct selling 
expenses. We also adjusted USP for taxes 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).
    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 related and unrelated 
purchasers in the home market.
    Based on the Department's previous determination of sales made at 
below the cost of production (COP) in the original less-than-fair-value 
(LTFV) investigation, in accordance with section 773(b) of the Tariff 
Act, we determined that there were reasonable grounds to believe or 
suspect that, for this review period, Rautaruukki Oy made sales of 
subject merchandise in the home market at prices less than the COP. As 
a result, we investigated whether Rautaruukki Oy sold such or similar 
merchandise in the home market at prices below the COP. In accordance 
with 19 CFR 353.51(c), to determine whether home market prices were 
below COP, we calculated COP for Rautaruukki Oy as the sum of reported 
materials, fabrication, labor, general, and packing expenses.
    We made the following adjustments to Rautaruukki Oy's reported 
costs. Certain expenses incurred during the POR (e.g., a cancelled coal 
contract, the cost of byproducts, and an unrealized exchange gain) that 
were not included in Rautaruukki Oy's cost management system, but were 
included in the company's financial accounting system, were added to 
the COP. We adjusted COP for an extraordinary expense reported in 
Rautaruukki Oy's profit and loss statements, but not recorded in the 
cost management systems which were used to prepare the response. We 
also adjusted for changes made to interest expenses in 1993.
    We compared home market selling prices, net of inland freight, 
discounts and rebates, credit expenses and warranty expenses as direct 
selling expenses, and packing expenses, to each product's COP.
    In accordance with section 773(b) of the Tariff Act, in determining 
whether to disregard home market sales made at prices below the COP, we 
examined whether such sales were made in substantial quantities over an 
extended period of time, and whether such sales were made at prices 
which permitted recovery of all costs within a reasonable period of 
time in the normal course of trade.
    In accordance with our normal practice, for each model for which 
less than 10 percent, by quantity, of the home market sales during the 
POR were made at prices below COP, we included all sales of that model 
in the computation of FMV. For each model for which 10 percent or more, 
but less than 90 percent, of the home market sales during the POR were 
priced below COP, we excluded those sales priced below COP, provided 
that they were made over an extended period of time. For each model for 
which 90 percent or more of the home market sales during the POR were 
priced below COP and were made over an extended period of time, we 
disregarded all sales of that model in our calculation and, in 
accordance with section 773(b) of the Tariff Act, we used the 
constructed value (CV) of those models, as described below. See, e.g., 
Mechanical Transfer Presses from Japan, Final Results of Antidumping 
Duty Administrative Review, 59 FR 9958 (March 2, 1994).
    In accordance with section 773(b)(1) of the Tariff Act, to 
determine whether sales below cost had been made over an extended 
period of time, we compared the number of months in which sales below 
cost occurred for a particular model to the number of months in which 
that model was sold. If the model was sold in fewer than three months, 
we 

[[Page 36778]]
did not disregard below-cost sales unless there were below-cost sales 
of that model in each month sold. If a model was sold in three or more 
months, we did not disregard below-cost sales unless there were sales 
below cost in at least three of the months in which the model was sold. 
We used CV as the basis for FMV when an insufficient number of home 
market sales were made at prices above COP. See Tapered Roller Bearings 
and Parts Thereof, Finished and Unfinished, From Japan and Tapered 
Roller Bearings, Four Inches or Less in Outside Diameter, and 
Components Thereof, From Japan; Final Results of Antidumping Duty 
Administrative Reviews, 58 FR 64720, 64729 (December 8, 1993).
    In accordance with section 773 of the Tariff Act, for those models 
for which there was an adequate number of sales at prices above the 
COP, we calculated FMV based on home market prices to related and 
unrelated purchasers. We used prices to related purchasers only if such 
prices were at arm's length. In order to determine whether sales to 
Rautaruukki Oy's customers were at arms length, the Department compared 
prices to related parties and prices to unrelated parties, on a model-
by-model basis and, when possible, at the same level of trade.
    We reclassified the levels of trade in the home market sales 
database by collapsing (1) sales to and (2) sales through wholesalers 
together into one level of trade. The Department has preliminarily 
determined that this collapsed level of trade matches the level of 
trade reported in the U.S. market. In accordance with 19 CFR 353.58, we 
compared U.S. sales to home market sales made at the same level of 
trade, where possible. Furthermore, the Department made adjustments to 
the home market sales database, based on findings made at the sales and 
cost verifications. We revised technical service and ocean freight 
expenses, created a modified product control number for secondary 
merchandise, and made adjustments to several observations to correct 
minor clerical errors.
    Pursuant to 19 CFR 353.56, we made circumstance-of-sale adjustments 
for differences in credit expenses. Furthermore, we adjusted the FMV 
for the Finnish value-added tax (i.e., ``turn-over tax'').
    In Appendix V of the Department's questionnaire, issued on 
September 15, 1995, the Department established a hierarchy of product 
characteristics that would be used to identify individual plate 
products. This hierarchy was based on a draft which had been released 
for comment prior to issuance of the questionnaire. Each unique 
combination of these product characteristics is treated as a distinct 
product, identified by a unique control number. Likewise, all products 
with the same combination of these product characteristics are 
considered to be identical and are to be assigned the same control 
number. Upon review of Rautaruukki Oy's computer database, we 
discovered some instances of multiple control numbers being assigned to 
the same set of product characteristics. Consequently, we determined to 
collapse two control numbers in the home market sales and COP databases 
which had identical product characteristics and which were matched to 
U.S. sales in the margin calculation program.
    We calculated FMV based on a weighted average of actual and 
theoretical weight because Rautaruukki Oy failed to provide adequate 
conversion data at verification. We reclassified technical services in 
the home market as indirect selling expenses because Rautaruukki Oy was 
unable to tie these expenses to specific sales. We also disallowed 
selling expenses for advertising and promotion costs, a claimed 
quantity adjustment, and another claimed adjustment because Rautaruukki 
Oy failed to provide sufficient information regarding these expenses to 
support its claims.
    No other adjustments were claimed or allowed.

Currency Conversion

    No certified rates of exchange, as furnished by the Federal Reserve 
Bank of New York, were available for the POR. In place of the official 
certified rates, we used the average monthly exchange rates published 
by the International Monetary Fund.
Preliminary Results of Review

    As a result of our comparison of USP to FMV, we preliminarily 
determine that no margin exists for Rautaruukki Oy for the period 
February 4, 1993, through July 31, 1994.
    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. The Department 
will issue appraisement instructions directly to U.S. Customs. 
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 these administrative reviews, 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 cut-to-
length carbon steel plate from Finland as follows: (1) The cash deposit 
rate for the reviewed company will be the rate established in the final 
results of this review; (2) If the exporter is not a firm covered in 
this review, or the original LTFV investigation, but the manufacturer 
is, the cash deposit rate will be the rate established for the 
manufacturer of the merchandise for the most recent period examined; 
and (3) If neither the exporter nor the manufacturer is a firm covered 
in this review, the cash deposit rate will be 32.25 percent. This is 
the ``all other rate'' established in the LTFV investigation. See Final 
Determination of Sales at Less Than Fair Value: Certain Cut-To-Length 
Carbon Steel Plate from Finland, 58 FR 37122 (July 9, 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 Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    These administrative reviews 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.


[[Page 36779]]

    Dated: July 11, 1995.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 95-17499 Filed 7-17-95; 8:45 am]
BILLING CODE 3510-DS-P