[Federal Register Volume 60, Number 206 (Wednesday, October 25, 1995)]
[Notices]
[Pages 54666-54667]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26482]



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DEPARTMENT OF COMMERCE
International Trade Administration
[A-588-838]


Initiation of Antidumping Duty Investigation: Clad Steel Plate 
From Japan

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

EFFECTIVE DATE: October 25, 1995.

FOR FURTHER INFORMATION CONTACT: Ellen Grebasch at (202) 482-3773, 
Dorothy Tomaszewski at (202) 482-0631 or Erik Warga at (202) 482-0922, 
Office of Antidumping Investigations, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW., Washington, DC 20230.

INITIATION OF INVESTIGATION:

The Applicable Statute

    Unless otherwise indicated, all citations to the statute are 
references to the provisions effective January 1, 1995, the effective 
date of the amendments made to the Tariff Act of 1930 (``the Act'') by 
the Uruguay Round Agreements Act (``URAA'').

The Petition

    On September 29, 1995, the Department of Commerce (``the 
Department'') received a petition filed in proper form by Lukens Steel 
Company (``petitioner''), a domestic producer of clad steel plate.
    In accordance with section 732(b) of the Act, petitioner alleges 
that imports of clad steel plate from Japan 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 Act, and that such imports are materially 
injuring, or threatening material injury to, a U.S. industry.
    Petitioner claims that it has standing to file the petition because 
it is an interested party, as defined under section 771(9)(C) of the 
Act.

Determination of Industry Support for the Petition

    Section 732(c)(4)(A) of the Act requires the Department to 
determine, prior to the initiation of an investigation, that a minimum 
percentage of the domestic industry supports an antidumping petition. A 
petition meets these minimum requirements if the domestic producers 

[[Page 54667]]
or workers who support the petition account for (1) At least 25 percent 
of the total production of the domestic like product; and (2) more than 
50 percent of the production of the domestic like product produced by 
that portion of the industry expressing support for, or opposition to, 
the petition.
    A review of the production data provided in the petition and other 
information readily available to the Department indicates that the 
petitioner accounts for more than 25 percent of the total production of 
the domestic like product and for more than 50 percent of that produced 
by companies expressing support for, or opposition to, the petition. 
The Department received no expressions of opposition to the petition 
from any domestic producer or workers. Accordingly, the Department 
determines that the petition is supported by the domestic industry.

Scope of the Investigation

    The scope of this investigation is all clad1 steel plate of a 
width of 600 millimeters (``mm'') or more and a composite thickness of 
4.5mm or more. Clad steel plate is a rectangular finished steel mill 
product consisting of a layer of cladding material (usually stainless 
steel or nickel) which is metallurgically bonded to a base or backing 
of ferrous metal (usually carbon or low alloy steel) where the latter 
predominates by weight.

    \1\Cladding is the association of layers of metals of different 
colors or natures by molecular interpenetration of the surfaces in 
contact. This limited diffusion is characteristic of clad products 
and differentiates them from products metalized in other manners 
(e.g., by normal electroplating). The various cladding processes 
include pouring molten cladding metal onto the basic metal, followed 
by rolling; simple hot-rolling of the cladding metal to ensure 
efficient welding to the basic metal; any other method of deposition 
or superimposing of the cladding metal followed by any mechanical or 
thermal process to ensure welding (e.g., electro-cladding), in which 
the cladding metal (nickel, chromium, etc.) is applied to the basic 
metal by electroplating, molecular interpenetration of the surfaces 
in contact then being obtained by heat treatment at the appropriate 
temperature with subsequent cold-rolling. See Harmonized Commodity 
Description and Coding System Explanatory Notes, Chapter 72, General 
Note (IV)(C)(2)(e).
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    Stainless clad steel plate is manufactured to American Society for 
Testing and Materials (``ASTM'') specifications A263 (400 series 
stainless types) and A264 (300 series stainless types). Nickel and 
nickel-base alloy clad steel plate is manufactured to ASTM 
specification A265. These specifications are illustrative but not 
necessarily all-inclusive with respect to the domestic like product.
    Clad steel plate within the scope of this investigation is 
classifiable under the Harmonized Tariff Schedule of the United States 
(``HTSUS'') 7210.90.10.00. Although the HTSUS subheading is provided 
for convenience and customs purposes, our written description of the 
scope of this investigation is dispositive.

Export Price and Normal Value

    Export price was based on petitioner's sale order, with the terms 
of sale as delivered, which was ``lost'' to a producer in Japan. 
Petitioner reduced the price based on the ``lost'' sale order for ocean 
freight, marine insurance, U.S. duties, inland freight and credit 
expense. For purposes of initiation, we disallowed petitioner's 
adjustment for credit expenses because the Act does not provide for 
deduction of such expenses from export price.
    Petitioner based normal value on constructed value (``CV'') in 
accordance with section 773(a)(4) of the Act because it could not 
obtain price quotations for subject merchandise in the home market. 
Petitioner computed CV using its own production experience adjusting 
for known differences in Japanese labor, electricity and natural gas 
rates. The adjusted Japanese labor rate was based on 1994 published 
compensation cost from the Bureau of Labor Statistics. The adjusted 
electricity and natural gas rates were based on 1993 published OECD 
energy prices. For SG&A excluding interest costs, the petitioner relied 
on the Japanese producer's March 1995 consolidated summary financial 
data that it obtained from a public source. We note that in the 
calculation of CV, petitioner did not include an amount for interest 
costs. Because the 1995 financial data showed the Japanese producer to 
be operating at a loss, profit was figured as zero in the CV 
calculation.
    Based on comparisons of export price to normal value, the 
calculated dumping margin for clad steel plate from Japan, as revised 
by the Department, is 118.53 percent ad valorem.

Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of clad steel plate from Japan are being, or are 
likely to be, sold at less than fair value.

Initiation of Investigation

    We have examined the petition on clad steel plate and have found 
that it meets the requirements of section 732 of the Act, including the 
requirements concerning allegations of the material injury or threat of 
material injury to the domestic producers of a domestic like product by 
reason of the complained-of imports, allegedly sold at less than fair 
value. Therefore, we are initiating an antidumping duty investigation 
to determine whether imports of clad steel plate from Japan are being, 
or are likely to be, sold in the United States at less than fair value. 
Unless extended, we will make our preliminary determination by February 
15, 1996.

Distribution of Copies of the Petition

    In accordance with section 732(b)(3)(A) of the Act, a copy of the 
public version of the petition has been provided to the representatives 
of the government of Japan. We will attempt to provide a copy of the 
public version of the petition to each exporter named in the petition.

International Trade Commission (ITC) Notification

    We have notified the ITC of our initiation, as required by section 
732(d) of the Act.

Preliminary Determination by the ITC

    The ITC will determine by November 13, 1995, whether there is a 
reasonable indication that imports of clad steel plate from Japan are 
causing material injury, or threatening to cause material injury, to a 
U.S. industry. A negative ITC determination will result in the 
investigation being terminated; otherwise, the investigation will 
proceed according to statutory and regulatory time limits.

    Dated: October 19, 1995.
Susan G. Esserman,
Assistant Secretary for Import Administration
[FR Doc. 95-26482 Filed 10-24-95; 8:45 am]
BILLING CODE 3510-DS-P