[Federal Register Volume 62, Number 42 (Tuesday, March 4, 1997)]
[Notices]
[Pages 9737-9750]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-5228]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
INTERNATIONAL TRADE ADMINISTRATION
[A-489-807]
Notice of Final Determination of Sales at Less Than Fair Value:
Certain Steel Concrete Reinforcing Bars From Turkey
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: March 4, 1997.
FOR FURTHER INFORMATION CONTACT: Shawn Thompson, Cameron Werker, or
Fabian Rivelis, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, N.W., Washington, D.C. 20230; telephone: (202)
482-1776, (202) 482-3874, or (202) 482-3853, respectively.
The Applicable Statute
Unless otherwise indicated, all citations to the Tariff Act of
1930, as amended (the Act) are references to the provisions effective
January 1, 1995, the effective date of the amendments made to the Act
by the Uruguay Round Agreements Act (URAA).
Final Determination
We determine that certain steel concrete reinforcing bars (rebar)
from Turkey are being, or are likely to be, sold in the United States
at less than fair value (LTFV), as provided in Sec. 735 of the Act.
Case History
Since the preliminary determination in this investigation (Notice
of Preliminary Determination and Postponement of Final Determination:
Certain Steel Concrete Reinforcing Bars from Turkey, 61 FR 53203, (Oct.
10, 1996)), the following events have occurred:
In October 1996, we issued supplemental sales and cost
questionnaires to Colakoglu Metalurji A.S. (Colakoglu), Ekinciler Demir
Celik A.S. (Ekinciler), and Habas Sinai Ve Tibbi Gazlar Istihsal
Endustrisi A.S. (Habas), and a supplemental cost questionnaire to Izmir
Metalurji Fabrikasi Turk A. S. (Metas). Responses to these
questionnaires were also received in October 1996.
From October through December 1996, we verified the questionnaire
responses of Colakoglu, Ekinciler, Habas, and Metas. We also verified
that the following companies had no shipments of subject merchandise to
the United States during the period of investigation (POI): Cebitas
Demir Celik Endustrisi A.S., Cukurova Celik Endustrisi A.S., Icdas
Istanbul Celik ve Demir Izabe Sanayii A.S., Diler Demir Celik
Endustrisi ve Ticaret A.S., Diler Dis Ticaret A.S., and Yazici Demir
Celik Sanayi ve Ticaret A.S.
On January 14 and 27, 1997, the Department requested that Colakoglu
and Habas submit new computer tapes to include data corrections
identified through verification. This information was submitted on
January 17 and 29, 1997, respectively.
Petitioners (i.e., AmeriSteel Corporation and New Jersey Steel
Corporation) and three of the respondents (i.e., Colakoglu, Ekinciler,
and Habas) submitted case briefs on January 22, 1997, and rebuttal
briefs on January 27, 1997. No case or rebuttal briefs were received
from any other interested party.
Scope of Investigation
The product covered by this investigation is all stock deformed
steel concrete reinforcing bars sold in straight lengths and coils.
This includes all hot-rolled deformed rebar rolled from billet steel,
rail steel, axle steel, or low-alloy steel. It excludes (i) plain round
rebar, (ii) rebar that a processor has further worked or fabricated,
and (iii) all coated rebar. Deformed rebar is currently classifiable in
the Harmonized Tariff Schedule of the United States (HTSUS) under item
numbers 7213.10.000 and 7214.20.000. The HTSUS subheadings are provided
for convenience and customs purposes. The written description of the
scope of this investigation is dispositive.
Period of Investigation
The POI is January 1, 1995, through December 31, 1995.
Facts Available
One of the respondents in this case, Izmir Demir Celik Sanayi A.S.
(IDC), failed to respond completely to the Department's requests for
information. Specifically, IDC submitted a response to Sections A, B,
and C of the May 9 questionnaire, but did not provide any subsequent
information, including a response to the supplemental sales
questionnaire and the cost of production (COP) questionnaire.
On August 12, 1996, IDC informed the Department that it would not
be able to provide any additional information in a timely manner and
requested that the Department use the information already on the record
in its analysis. However, we were unable to perform any analysis for
IDC without a COP response because COP data is an essential component
in our margin calculations. We afforded IDC an opportunity to request
additional time for completion of its responses. However, IDC neither
requested an extension nor submitted any additional data.
Section 776(a)(2) of the Act provides that if an interested party:
(1) Withholds information that has been requested by the Department;
(2) fails to provide such information in a timely manner or in the form
or manner requested; (3) significantly impedes a determination under
the antidumping statute; or (4) provides such information but the
information cannot be verified, the Department shall, subject to
subsections 782(c)(1) and (e) of the Act, use facts otherwise available
in reaching the applicable determination. Because IDC
[[Page 9738]]
failed to respond to the Department's supplemental and COP
questionnaires and because that failure is not overcome by the
application of subsections 782(c)(1) and (e) of the Act, we must use
facts otherwise available with regard to IDC.
Section 776(b) of the Act provides that adverse inferences may be
used against a party that has failed to cooperate by not acting to the
best of its ability to comply with requests for information. See also
Statement of Administrative Action (SAA) accompanying the URAA, H.R.
Doc. No. 316, 103d Cong., 2d Sess. 870. IDC's failure to reply to the
Department's requests for information demonstrates that IDC has failed
to act to the best of its ability in this investigation. Thus, the
Department has determined that, in selecting among the facts otherwise
available, an adverse inference is warranted with regard to IDC. As
facts otherwise available, we are assigning to IDC the highest margin
stated in the notice of initiation, 41.8 percent.
Section 776(c) of the Act provides that, when the Department relies
on secondary information (such as the petition) in using the facts
otherwise available, it must, to the extent practicable, corroborate
that information from independent sources that are reasonably at its
disposal. Corroborative means that the secondary information to be used
has probative value. See SAA at 870. In analyzing the petition, the
Department reviewed all of the data the petitioners relied upon in
calculating the estimated dumping margins, and adjusted those
calculations where necessary. See Memorandum to the File from Case
Analysts, dated March 26, 1996. These estimated dumping margins were
based on a comparison of a home market price list to: (1) A contracted
price to a U.S. customer; and (2) an offer of sale to a U.S. customer.
The estimated dumping margins, as recalculated by the Department,
ranged from 27.4 to 41.8 percent. The Department corroborated all of
the secondary information from which the margin was calculated during
our pre-initiation analysis of the petition to the extent appropriate
information was available for this purpose at that time. For purposes
of this determination, the Department re-examined the price information
provided in the petition in light of information developed during the
investigation and found that it continued to be of probative value.
Fair Value Comparisons
Petitioners have requested that the Department and the ITC find
that there is a regional industry 1 and perform the requisite
analysis, in accordance with Sec. 771(4)(C) of the Act. Section
736(d)(1) of the Act directs the Department to assess duties only on
the subject merchandise of the specific exporters and producers that
exported the subject merchandise for sale into the region concerned
during the POI. In our notice of initiation we indicated that the
petition had met the requirements of Sec. 771(4)(C) and
Sec. 732(c)(4)(C) of the Act. However, because respondents were not
able to provide requested information on sales which were ultimately
made in the region, we have not limited our analysis in the LTFV
investigation to only shipments entering ports located in the region.
We will again attempt to collect this information during any subsequent
administrative reviews, in the event that an antidumping duty order is
issued in this case.
---------------------------------------------------------------------------
1 The region identified by the petitioners includes
Maine, New Hampshire, Connecticut, Massachusetts, Rhode Island,
Vermont, New Jersey, New York, Pennsylvania, Delaware, Florida,
Georgia, Louisiana, Maryland, North Carolina, South Carolina,
Virginia, West Virginia, Alabama, Kentucky, Mississippi, Tennessee,
the District of Columbia, and Puerto Rico.
---------------------------------------------------------------------------
To determine whether sales of the subject merchandise by Colakoglu,
Ekinciler, Habas, and Metas to the United States were made at less than
fair value, we compared the Export Price (EP) to the Normal Value (NV),
as described in the ``Export Price'' and ``Normal Value'' sections of
this notice.
Regarding Habas, we calculated NV based on constructed value (CV)
in accordance with Sec. 773(a)(4) of the Act because Habas's home
market sales did not provide an appropriate basis for calculating NV.
See the ``Normal Value'' section of this notice, below, for further
discussion.
Regarding Metas, we calculated NV on the basis of CV because we
found no home market sales at prices above COP. See the ``Normal
Value'' section of this notice, below, for further discussion.
Regarding Colakoglu and Ekinciler, as set forth in
Sec. 773(a)(1)(B)(i) of the Act, we calculated NV based on sales at the
same level of trade as the U.S. sale. In accordance with
Sec. 777A(d)(1)(A)(i) of the Act, we compared weighted-average EPs to
weighted-average NVs. In determining averaging groups for comparison
purposes, we considered the appropriateness of such factors as physical
characteristics, level of trade, and significant inflation.
(i) Physical Characteristics
In accordance with Sec. 771(16) of the Act, we considered all
products covered by the description in the Scope of Investigation
section, above, produced in Turkey and sold in the home market during
the POI, to be foreign like products for purposes of determining
appropriate product comparisons to U.S. sales. Regarding Colakoglu and
Ekinciler, where there were no sales of identical merchandise in the
home market pursuant to Sec. 771(16)(B) of the Act, to compare to U.S.
sales, we compared U.S. sales to the next most similar foreign like
product on the basis of the physical characteristics listed in Appendix
III of the Department's antidumping questionnaire.
(ii) Level of Trade
In its preliminary determination, the Department found that no
differences in level of trade existed between home market and U.S.
sales for any participating respondent. Our findings at verification
confirmed that the respondents performed essentially the same selling
activities for each reported home market and U.S. marketing stage.
Accordingly, we determine that all price comparisons are at the same
level of trade and that an adjustment pursuant to Sec. 773(a)(7)(A) of
the Act is unwarranted.
(iii) Significant Inflation
Turkey experienced significant inflation during the POI, as
measured by the Wholesale Price Index (WPI) published by the
International Monetary Fund (IMF) in the International Financial
Statistics. Accordingly, to avoid the distortions caused by the effects
of significant inflation on prices, we calculated EPs and NVs on a
monthly-average basis, rather than on a POI-average basis. See, e.g.,
Notice of Final Determination of Sales at Less Than Fair Value: Certain
Pasta from Turkey, 61 FR 30309, 30315 (June 14, 1996) (Pasta).
Export Price
We calculated EP, in accordance with subsections 772 (a) and (c) of
the Act, where the subject merchandise was sold directly to the first
unaffiliated purchaser in the United States prior to importation and
where constructed export price was not otherwise warranted based on the
facts of record.
A. Colakoglu
We based EP on packed prices to the first unaffiliated purchaser in
the United States. We made deductions to EP for foreign inland freight,
dunnage expenses, lashing expenses, loading charges, despatch expenses
(which included an adjustment for revenue that was realized on a
contractual agreement between Colakoglu and its ocean freight
[[Page 9739]]
carrier), demurrage expenses, and ocean freight, where appropriate, in
accordance with Sec. 772(c)(2)(A) of the Act. We disallowed an
adjustment to EP for wharfage revenue and freight commissions earned by
an affiliated party because we were unable to make a corresponding
deduction for the affiliate's costs (see Comment 8).
We based our calculations on the revised U.S. sales database
submitted by Colakoglu after verification. We revised the amount of
despatch revenue received on one U.S. sale based on our findings at
verification because this correction was not incorporated into the
revised sales listing.
B. Ekinciler
We based EP on packed prices to the first unaffiliated purchaser in
the United States. We made deductions for foreign inland freight,
warehousing expenses, loading charges, tallying expenses, forklift
expenses, dunnage expenses, demurrage expenses (which included an
adjustment for despatch revenues), ramneck tape expenses, customs fees,
detention expenses, stevedoring expenses, wharfage expenses, overage
insurance, and ocean freight, where appropriate, in accordance with
Sec. 772(c)(2)(A) of the Act. We disallowed an adjustment to EP for
agency fee revenue and freight commissions earned by an affiliated
party because we were unable to make a corresponding deduction for the
affiliate's costs (see Comment 8).
We made the following corrections to the data reported by
Ekinciler, based on our findings at verification: a) we revised the
price and quantity for two U.S. sales; b) we revised the control number
used for matching purposes for certain U.S. sales; c) we revised the
following movement expenses for certain U.S. sales: international
freight, forklift expenses, inland freight from plant to port, overage
insurance, and pre-sale warehouse expenses; and d) we revised bank fees
for two U.S. sales. In addition, we disallowed Ekinciler's claim for
dunnage revenue on certain U.S. sales (see Comment 13).
C. Habas
We based EP on packed prices to the first unaffiliated purchaser in
the United States. We made deductions to EP for foreign inland freight,
dunnage expenses, despatch expenses (which included an adjustment for
revenue that was realized on a contractual agreement between Habas and
its customer), brokerage and handling, demurrage expenses, customs
fees, ocean freight, and marine insurance, where appropriate, in
accordance with Sec. 772(c)(2)(A) of the Act. We disallowed an
adjustment to EP for freight revenue earned by an affiliated party
because we were unable to make a corresponding deduction for the
affiliate's costs (see Comment 8). We revised the amounts reported for
demurrage, brokerage, international freight, marine insurance, and
export fees for certain vessels based on our findings at verification.
D. Metas
We based EP on packed prices to the first unaffiliated purchaser in
the United States. We made deductions for foreign inland freight,
lashing expenses, brokerage and handling, demurrage expenses (which
included an upward adjustment for revenue that was realized on a
contractual agreement between Metas and its ocean freight carrier), and
ocean freight, where appropriate, in accordance with Sec. 772(c)(2)(A)
of the Act.
Normal Value
In order to determine whether there was a sufficient volume of
sales in the home market to serve as a viable basis for calculating NV,
we compared each respondent's volume of home market sales of the
foreign like product to the volume of U.S. sales of the subject
merchandise, in accordance with Sec. 773(a)(1)(C) of the Act. Because
each respondent's aggregate volume of home market sales of the foreign
like product was greater than five percent of its aggregate volume of
U.S. sales for the subject merchandise, we determined that the home
market was viable for each respondent.
Regarding Habas, however, we did not use home market sales as the
basis for NV. Rather, we based NV on CV in accordance with
Sec. 773(a)(4) of the Act. In its questionnaire responses, Habas
notified the Department that its home market was a residual market and
that it did not maintain the records necessary to accurately report the
unique physical characteristics of its home market products. We
examined Habas's record-keeping practices at verification and confirmed
that Habas was unable to report specific product characteristics for
its home market database. Consequently, we are unable to use these
products to make price-to-price comparisons according to the matching
criteria listed in Appendix III of the Department's questionnaire.
Regarding Ekinciler and Metas, these respondents made sales of
subject merchandise to affiliated parties in the home market during the
POI. Consequently, we tested these sales to ensure that, on average,
they were made at ``arm's-length'' prices, in accordance with 19 CFR
353.45. To conduct this test, we compared the gross unit prices of
sales to affiliated and unaffiliated customers net of all movement
charges, rebates, and packing. Based on the results of that test, we
discarded from each respondent's home market database all sales made to
an affiliated party that failed the ``arm's-length'' test.
Based on the cost allegation submitted by petitioners, the
Department determined, pursuant to Sec. 773(b) of the Act, that there
were reasonable grounds to believe or suspect that sales in the home
market were made at prices below the cost of producing the merchandise.
Consequently, the Department initiated an investigation to determine
whether the respondents made home market sales during the POI at prices
below their respective COPs.
We calculated the COP based on the sum of each respondent's cost of
materials and fabrication for the foreign like product, plus amounts
for home market selling, general, and administrative expenses (SG&A),
in accordance with Sec. 773(b)(3) of the Act. As noted above, we
determined that the Turkish economy experienced significant inflation
during the POI. Therefore, in order to avoid the distortive effect of
inflation on our comparison of costs and prices, we requested that
respondents submit monthly COP figures based on the current production
costs incurred during each month of the POI. See Pasta.
We used the respondents' monthly COP amounts, adjusted as discussed
below, and the WPI from the IMF (see Comment 2) to compute an annual
weighted-average COP for each respondent during the POI. We compared
the weighted-average COP figures to home market sales of the foreign
like product, as required under Sec. 773(b) of the Act, in order to
determine whether these sales had been made at prices below their COP.
On a product-specific basis, we compared the COP to the home market
prices, less any applicable movement charges, rebates, and packing
expenses. We did not deduct selling expenses from the home market price
because these expenses were included in the SG&A portion of COP.
In determining whether to disregard home market sales made at
prices below the COP, we examined: 1) whether, within an extended
period of time, such sales were made in substantial quantities; and 2)
whether such sales were made at prices which permitted the recovery of
all costs within a reasonable period of time.
[[Page 9740]]
Where 20 percent or more of a respondent's sales of a given product
during the POI were at prices below the COP, we found that sales of
that model were made in ``substantial quantities,'' and within an
extended period of time, in accordance with Sec. 773(b)(2) (B) and (C)
of the Act. To determine whether prices were such as to provide for
recovery of costs within a reasonable period of time, we tested whether
the prices which were below the per-unit COP at the time of the sale
were above the weighted-average per-unit COP for the POI, in accordance
with Sec. 773(b)(2)(D) of the Act. If prices that were below cost at
the time of sale were above the weighted-average cost for the POI, we
included such prices in determining NV (for all respondents except
Habas). Otherwise, we disregarded them.
In accordance with Sec. 773(e) of the Act, we calculated CV based
on the sum of each respondent's cost of materials, fabrication, SG&A,
profit, and U.S. packing costs, except as noted in the company-specific
sections below. In accordance with Sec. 773(e)(2)(A) of the Act, where
possible, we based SG&A expenses and profit on the amounts incurred and
realized by each of these companies in connection with the production
and sale of the foreign like product in the ordinary course of trade,
for consumption in the foreign country. In addition, to account for the
effects of inflation on costs, we calculated each respondent's CV based
on the methodology described in the calculation of COP above. Company-
specific calculations are discussed below.
A. Colakoglu
We relied on the respondent's COP and CV amounts except in the
following instances:
(1) We adjusted Colakoglu's submitted scrap cost to include the
transfer prices it paid to an affiliated company for freight service
because the transfer prices were made at arm's length and represent the
actual cost to Colakoglu (see Comment 11).
(2) Colakoglu based its reported SG&A and financing expense rates
on amounts contained in the company's tax return. However, because the
Department prefers to use figures from audited financial statements, we
revised the SG&A and financing expense rates for COP and CV using
amounts reported in Colakoglu's 1995 audited financial statements.
(3) We indexed the submitted monthly SG&A and financing expenses
using the IMF's WPI (see Comment 2).
(4) We included translation losses in financing expense (see
Comment 3).
(5) Because Colakoglu did not report costs for products which were
once-folded, we assigned to these products the COP and CV amounts
calculated for the same products sold in straight lengths, based on our
findings at verification confirming that there were no appreciable cost
differences associated with folding.
For those comparison products for which there were sales at prices
above the COP, we based NV on ex-factory prices to home market
customers. In accordance with Sec. 773(a)(6) of the Act, we deducted
home market packing costs and added U.S. packing costs. In addition, we
adjusted for differences in the circumstances of sale, in accordance
with Sec. 773(a)(6)(C)(iii) of the Act. These adjustments included
differences in imputed credit expenses (offset by the interest revenue
actually received by the respondent), bank charges, testing and
inspection fees, and Exporters'' Association fees. We revised the
interest revenue amounts received on certain home market sales based on
our findings at verification. In addition, we recalculated credit
expenses using the interest rates associated with Colakoglu's actual
borrowings in the home market (see Comment 7). Where appropriate, we
made adjustments to NV to account for differences in physical
characteristics of the merchandise, in accordance with
Sec. 773(a)(6)(C)(ii) of the Act and 19 CFR 353.57.
Where we compared CV to export prices, we deducted from CV the
weighted-average home market direct selling expenses and added the
weighted-average U.S. product-specific direct selling expenses.
B. Ekinciler
We relied on the respondent's COP and CV amounts except in the
following instances:
(1) We revised the reported COP and CV amounts to account for the
costs of rebar produced by subcontractors.
(2) We used the IMF's WPI to inflate the idle asset revalued
depreciation expense adjustment, SG&A and financing expense (see
Comment 2).
(3) We included translation losses in financing expense and
amortized them over the remaining life of the loans (see Comment 3).
(4) We disallowed Ekinciler's offset to financing expenses for
foreign exchange gains related to accounts receivable because they
occurred after the sale date and therefore are not relevant to the
Department's margin calculations.
(5) We added intra-factory freight expense to the cost of billets
(see Comment 19).
(6) We reduced G&A expenses by non-operating revenue and increased
G&A expenses by non-operating expenses (see Comment 17).
For those comparison products for which there were sales at prices
above the COP, we based NV on ex-factory, ex-warehouse or delivered
prices to home market customers. We excluded from our analysis home
market sales by Ekinciler of non-subject merchandise because this
merchandise was not within the class or kind of merchandise subject to
investigation (see Comment 12 and Sec. 731 and Sec. 771(16) of the
Act). Where appropriate, we made deductions from the starting price for
foreign inland freight, inland insurance, and direct warehousing
expenses. We revised certain foreign inland freight expenses based on
our findings at verification. In accordance with Sec. 773(a)(6) of the
Act, we deducted home market packing costs and added U.S. packing
costs. As facts available for a portion of Ekinciler's total packing
expenses, we used the highest verified packing expense for one of
Ekinciler's mills (see Comment 15). In addition, we adjusted for
differences in the circumstances of sale, in accordance with
Sec. 773(a)(6)(C)(iii) of the Act. These adjustments included
differences in imputed credit expenses, bank charges, warranty
expenses, testing and inspection fees, and Exporters'' Association
fees. Where appropriate, we made adjustments to NV to account for
differences in physical characteristics of the merchandise, in
accordance with Sec. 773(a)(6)(C)(ii) of the Act and 19 CFR
Sec. 353.57.
Where we compared CV to export prices, we deducted from CV the
weighted-average home market direct selling expenses and added the
weighted-average U.S. product-specific direct selling expenses.
C. Habas
As noted in the ``Fair Value Comparisons'' section above, we
determined NV for Habas on the basis of CV. We relied on the
respondent's CV amounts except in the following instances:
(1) We revised the reported CV amounts to account for the cost of
billets and rebar produced by subcontractors.
(2) Because Habas could not accurately report the unique physical
characteristics of its home market products, we were unable to
determine whether Habas made home market sales in the ordinary course
of trade (e.g., perform the cost test). Consequently, we based Habas's
SG&A expenses and
[[Page 9741]]
profit on the weighted average of the profit and SG&A data computed for
those respondents with home market sales of the foreign like product in
the ordinary course of trade (i.e., Colakoglu and Ekinciler) in
accordance with Sec. 773(e)(2)(B)(ii) of the Act.
Because we were unable to use Habas's home market sales data for
purposes of making price-to-price comparisons, we compared export
prices to CV. We deducted from CV the weighted-average home market
direct selling expenses and added the weighted-average U.S. product-
specific direct selling expenses. Home market direct selling expenses
were based on the weighted average of the selling expense data computed
for Colakoglu and Ekinciler (the respondents for whom we found home
market sales of the foreign like product in the ordinary course of
trade after performing the cost test) in accordance with
Sec. 773(e)(2)(B)(ii) of the Act. U.S. direct selling expenses included
imputed credit expenses, bank charges, testing and inspection fees, and
Exporters' Association fees. We revised the total bank fee amount to
account for unreported bank fees based on our findings at verification.
Regarding Habas's U.S. packing expenses, we revised the monthly
reported figures based on corrections found at verification.
D. Metas
We relied on the respondent's COP and CV amounts except in the
following instances:
(1) We used the IMF's WPI to recalculate the company's SG&A and
financing expenses (see Comment 2).
(2) We adjusted material costs by using the actual mix of scrap
purchased during 1995 (see Comment 23).
(3) We adjusted SG&A expenses to exclude expenses associated with
the movement of finished goods because COP is calculated on an ex-
factory basis, in accordance with Sec. 773 of the Act.
(4) Because Metas made no home market sales in the ordinary course
of trade (i.e., all sales were found to be below cost), we based the
profit and SG&A expenses used in CV on the weighted average of the
profit and SG&A data computed for Colakoglu and Ekinciler, in
accordance with Sec. 773(e)(2)(B)(ii) of the Act.
Because all of Metas's home market sales were sold below their COP,
we compared export prices to CV. We deducted from CV the weighted-
average home market direct selling expenses and added the weighted-
average U.S. product-specific direct selling expenses. Home market
direct selling expenses were based on the weighted average of the
selling expense data computed for Colakoglu and Ekinciler (those
respondents with home market sales of the foreign like product in the
ordinary course of trade after performing the cost test), in accordance
with Sec. 773(e)(2)(B)(ii) of the Act. U.S. direct selling expenses
included imputed credit expenses (offset by the interest revenue
actually received by the respondent), bank charges, testing and
inspection fees, and Exporters' Association fees.
Currency Conversion
The Department's preferred source for daily exchange rates is the
Federal Reserve Bank. However, the Federal Reserve Bank does not track
or publish exchange rates for Turkish Lira. Therefore, we made currency
conversions based on the daily exchange rates from the Dow Jones News/
Retrieval Service. See 19 CFR Sec. 353.60. See e.g., Pasta.
Critical Circumstances
In the petition, petitioners made a timely allegation that there is
a reasonable basis to believe or suspect that critical circumstances
exist with respect to imports of subject merchandise.
According to Sec. 733(e)(1) of the Act, if critical circumstances
were alleged under Sec. 733(e) of the Act, the Department will
determine whether:
(A)(i) there is a history of dumping and material injury by reason
of dumped imports in the United States or elsewhere of the subject
merchandise, or
(ii) the person by whom, or for whose account, the merchandise was
imported knows or should have known that the exporter was selling the
subject merchandise at less than its fair value and that there was
likely to be material injury by reason of such sales, and
(B) there have been massive imports of the subject merchandise over
a relatively short period.
In this investigation, the first criterion is satisfied because the
Republic of Singapore began imposing antidumping measures against rebar
from Turkey in 1995. Therefore, we determine that there is a history of
dumping of rebar by Turkish producers/exporters. Because there is a
history of dumping, it is not necessary to address whether the importer
had knowledge that dumping was occurring and material injury was
likely.
Because we have found that the first statutory criterion is met, we
must consider the second statutory criterion: whether imports of the
merchandise have been massive over a relatively short period. Pursuant
to 19 CFR 353.16(f) and 353.16(g), we consider the following to
determine whether imports have been massive over a relatively short
period of time: (1) Volume and value of the imports; (2) seasonal
trends (if applicable); and (3) the share of domestic consumption
accounted for by the imports.
When examining volume and value data, the Department typically
compares the export volume for equal periods immediately preceding and
following the filing of the petition. Under 19 CFR 353.16(f)(2), unless
the imports in the comparison period have increased by at least 15
percent over the imports during the base period, we will not consider
the imports to have been ``massive.''
To determine whether or not imports of subject merchandise have
been massive over a relatively short period for all respondents, except
IDC, we compared each respondent's export volume for the seven months
subsequent to and including the filing of the petition to that during
the comparable period prior to the filing of the petition. Based on our
analysis, we find that imports of the subject merchandise from
Ekinciler, Habas, and Metas increased by more than 15 percent over a
relatively short period, whereas the imports of subject merchandise
from Colakoglu did not increase by more than 15 percent. Moreover,
regarding IDC, as facts available, we are making the adverse assumption
that imports have been massive over a relatively short period of time
in accordance with Sec. 735(a)(3)(B) of the Act.
Therefore, because there is a history of dumping of such or similar
merchandise, and because we find that imports of rebar from all
respondents except Colakoglu have been massive over a relatively short
period of time, we determine that critical circumstances exist with
respect to exports of rebar from Turkey by Ekinciler, Habas, IDC, and
Metas. Regarding Colakoglu, because we find that imports of rebar from
this company have not been massive over a relatively short period of
time, we determine that critical circumstances do not exist with
respect to exports of rebar from Turkey by Colakoglu. For further
discussion, see Comment 10.
Regarding all other exporters, because we find that critical
circumstances exist for three of the four investigated companies, we
also determine that critical circumstances exist for companies covered
by the ``All Others'' rate.
[[Page 9742]]
Verification
As provided in Sec. 782(i) of the Act, we verified the information
submitted by the respondents for use in our final determination. We
used standard verification procedures, including examination of
relevant accounting and production records and original source
documents provided by respondents.
Interested Party Comments
A. General
Comment 1: Use of Total Facts Available for the Final Determination
Petitioners assert that the Department should base its final
determination with regard to Ekinciler on total facts available due to
the numerous errors discovered by the Department at verification.
Petitioners contend that these errors are so numerous and substantial
that they call into question the propriety of using Ekinciler's
response as the basis for calculating a dumping margin. Petitioners
cite the following examples: (1) Ekinciler included non-subject
merchandise in its home market sales database; (2) Ekinciler's packing
expenses contained errors; (3) Ekinciler did not report the cost of old
stocks (i.e., fuel oil) and certain service production costs; and (4)
Ekinciler was unable to provide the Department with heat sheets for
grade 60 billets as requested.
In support of their position, petitioners cite to Circular Welded
Non-Alloy Steel Pipe from South Africa: Notice of Final Determination
of Sales at Less Than Fair Value, 61 FR 24274 (May 14, 1996) (Steel
Pipe), where the Department used facts available because ``the number
of errors discovered draw into question the completeness and
accurateness of respondent's remaining sales (i.e., sales not
specifically reviewed at verification).'' Petitioners state that the
antidumping law and the Department's practice require that the
Department strive to calculate accurate margins, but that an accurate
and fair comparison is not possible in view of the errors in
Ekinciler's responses. Therefore, according to petitioners, the final
determination for Ekinciler should be based on total facts available.
Moreover, petitioners urge the Department to consider applying total
facts available to Colakoglu and/or Habas on the same basis, even
though their errors were not as egregious or numerous as those of
Ekinciler.
Ekinciler argues that its reported sales and cost data were
substantially verified by the Department and, as a result, the use of
total facts available for the final determination is not supported by
evidence on the record. Respondent cites to Certain Cut-To-Length
Carbon Steel Plate from Germany: Final Results of Antidumping Duty
Administrative Review, 61 FR 13834 (March 28, 1996), where the
Department rejected petitioner's request to base the final results of
the review on total best information available because respondent had
been cooperative throughout the proceeding and the errors found at
verification were not so large as to render the respondent's reported
information unusable. Ekinciler maintains that, pursuant to
Sec. 776(a)(2) of the Act, when errors or gaps appear in otherwise
timely and verified information and the respondent has been
cooperative, the Department will simply revise the information or fill
the gaps using non-adverse facts available. Accordingly, Ekinciler
asserts that the Department should, consistent with this practice, fill
the gaps in its reported data found at verification with non-adverse
facts available.
Colakoglu and Habas argue that the information they have submitted
on the record was also substantially verified, and, thus, the use of
total facts available is not supported by evidence on the record.
DOC Position
We agree with respondents. Although our verifications uncovered
certain errors in the responses of these companies, those errors are
not so egregious as to resort to total facts available for purposes of
the final determination. The errors found at Ekinciler consisted
primarily of minor variations in the reported movement expenses due to
clerical errors and inadvertent omissions--errors that the Department
routinely corrects in making its final determination. Regarding the
inclusion of non-subject merchandise, the Department normally excludes
sales from its analysis which were found at verification to have been
incorrectly included. See Final Results of Antidumping Duty
Administrative Review: Certain Welded Carbon Steel Pipe and Tube from
Turkey, 61 FR 69067, 69068 (Dec. 31, 1996), Final Results of
Antidumping Duty Administrative Review: Extruded Rubber Thread from
Malaysia, 61 FR 54767 (Oct. 22, 1996), and Final Determination of Sales
at Less Than Fair Value: Small Diameter Circular Seamless Carbon and
Alloy Steel Standard, Line and Pressure Pipe from Brazil, 60 FR 31960,
31965 (June 19, 1995).
Contrary to petitioners' assertion, the errors found at Ekinciler
were not of the same magnitude as the errors described in Steel Pipe.
The errors encountered at verification in Steel Pipe undermined the
fundamental components of the respondent's submitted data and included
most notably quantity and value reconciliation errors, unreported
sales, and incorrect prices for a majority of sales. Such errors led
the Department to determine that respondent's questionnaire responses
were unverifiable. In the instant case, the discrepancies found in
Ekinciler's responses are not so material and pervasive as to warrant
use of total facts available. Consequently, in accordance with our
practice, we have used facts available only for certain aspects of
Ekinciler's response, as discussed in other comments below.
Comment 2: Selection of Inflation Index
Respondents argue that monthly costs should be inflated to year-end
values using the WPI published by the IMF rather than the primary
metals index (PMI) published by the Turkish Institute of Statistics.
Respondents note that the WPI was used to determine that Turkey was
experiencing hyperinflation and, thus, this index should be used to
account for distortions caused by hyperinflation. Additionally,
respondents argue that they paid for major material inputs using U.S.
dollars. For this reason, respondents argue that the Department should
use the WPI--which is a general indicator of the price levels of the
whole economy--because it provides a reliable, macroeconomic indicator
of the relative values of the Turkish lira and the U.S. dollar.
Respondents assert that the PMI does not reflect macroeconomic
considerations.
Petitioners counter that PMI should be used to inflate monthly
costs to year-end values because this index is industry-specific and,
unlike the WPI, it is not subject to influences which are irrelevant to
the merchandise under investigation. Petitioners argue that the test of
whether an economy is experiencing hyperinflation is a threshold test
and the use of a particular index to determine whether the threshold
has been met does not imply that the same index should be used to
measure the impact of inflation. Petitioners also claim that it is
irrelevant whether the index used is a reliable indicator of the
relative values of the Turkish lira and the U.S. dollar because the
index is being used for a different purpose--to inflate Turkish lira-
denominated monthly expenses and cost of sales to year-end amounts.
DOC Position
We agree with petitioners that it is irrelevant whether the index
used is a
[[Page 9743]]
macroeconomic indicator of the relative value of the Turkish lira and
the U.S. dollar since inflation adjustments concern only the Turkish
lira. However, we have reconsidered our use of the PMI in the
preliminary determination and, for the reasons set forth below, have
used instead the WPI published by the IMF to account for inflation in
the final determination.
There are no financial reporting requirements prescribed by Turkish
authorities that require the financial statements of Turkish companies
to be restated to account for the effects of inflation. Consequently,
in the absence of this requirement, none of the respondents restated
their financial statements to correct for the effects of inflation.
Accordingly, in this instance, we relied on International Accounting
Standard (IAS) 29 entitled ``Financial Reporting in Hyper-inflationary
Economies'' for guidance on an appropriate methodology. (See Memorandum
to the File from Paul McEnrue, dated February 12, 1997.) According to
IAS 29, financial statements prepared in the currency of a highly
inflationary economy must be restated to account for the effects of
inflation. The statement requires the use of a general price index that
reflects changes in general purchasing power to restate financial
statements. The IAS statement also notes that the same index should be
used for all enterprises that report in the currency of the same
economy. Because the WPI measures changes in the general price index,
while the PMI does not, we find that it is more appropriate to use the
WPI to account for inflation for purposes of the final determination.
Comment 3: Translation Losses 2
Respondents contend that translation losses from their foreign
currency borrowings (which were principally U.S. dollar-denominated)
should be excluded from the submitted costs. Respondents reason that,
since the translation losses are not a result of cash transactions, the
losses are fictional. Respondents explain that the translation losses
result from converting dollar-denominated loans into their Turkish lira
equivalents as of the balance sheet date. Respondents argue that the
translation losses are equivalent to monetary corrections on domestic
loans and the Department's practice is to exclude monetary corrections
from reported costs. Respondents note that, where the indexation (i.e.,
adjustment for inflation) of domestic loan balances is required by the
generally accepted accounting principles (GAAP) of a hyperinflationary
economy, the Department's practice has been to exclude the monetary
corrections on such loan balances and to treat the indexation of those
loan balances as an adjustment which is not relevant to the
determination of cost (see Final Determination of Sales at Less Than
Fair Value: Tubeless Disc Wheels From Brazil, 52 FR 8947, 8949 (March
20, 1987) and Notice of Amended Final Determination of Sales at Less
Than Fair Value: Ferrosilicon From Brazil, 59 FR 8598, 8598 (Feb. 23,
1994)). Respondents maintain that their adjustment of foreign currency
loan balances for translation losses is equivalent to the indexation of
domestic loans and, thus, the Department should not include
respondents'' translation losses in COP and CV. Additionally, because
costs included in CV are eventually converted into dollars, respondents
argue that the Department should base loan costs on the U.S. dollar-
denominated loan balances and avoid the conversion from dollars to
Turkish lira and back to dollars which creates a loss that does not
exist in dollar terms.
---------------------------------------------------------------------------
2 Foreign currency translation is the process of
expressing amounts denominated in one currency in terms of a second
currency, by using the exchange rate between the currencies. Assets
and liabilities are translated at the current exchange rate on the
balance sheet date. The Department typically includes foreign
exchange translation gains and losses in a respondent's financial
expenses if such gains and losses are related to the cost of
acquiring debt for purposes of financing the production of the
subject merchandise.
---------------------------------------------------------------------------
Petitioners argue that translation losses are ``real costs'' that
should be included in COP and CV. To support their position,
petitioners cite the decision of the Court of International Trade (CIT)
in Micron Tech. v. United States, 993 F. Supp. 21, 29-30 (CIT 1995). In
that case, the CIT held that ``increased liability for borrowed funds
caused by fluctuations in the exchange rate . . . are akin to an
increased cost of borrowing funds that should be included in any
reasonable measure of the cost climate faced by the company during the
period of investigation. . .'' Moreover, petitioners maintain that it
is the Department's practice to include foreign exchange translation
losses in the cost of manufacturing (see Final Determination of Sales
at Less Than Fair Value: Certain Hot-Rolled Carbon Steel Products,
Certain Cold-Rolled Carbon Steel Products, Certain Corrosion-Resistant
Carbon Steel Products and Certain Cut-to-Length Carbon Steel Plate from
Korea, 58 FR 37176, 37187 (July 9, 1993)).
Petitioners contend that respondents'' argument for excluding
translation costs from COP and CV fails for the following reasons.
First, CV is the cost of producing merchandise in the exporting country
and not the cost of producing merchandise in the United States or in
U.S. dollars. Therefore, the fact that a translation loss does not
exist in dollars is irrelevant. Second, the Department's practice of
excluding from costs monetary adjustments from the indexation of
domestic loan balances does not apply in this case because respondents
do not index their foreign currency or domestic loans and Turkish GAAP
does not call for such indexation. Third, respondents did not cite any
precedent which establishes the Department's position regarding the
treatment of monetary corrections for foreign currency loans. Thus,
petitioners urge the Department to include respondents'' translation
losses in COP and CV.
DOC Position
We agree with petitioners. The cases cited by respondents are not
specifically related to the Department's treatment of monetary
corrections for foreign currency loans. The Department does not agree
with respondents' supposition that their translation losses are
fictional. The translation losses are recorded in respondents''
financial statements in the ordinary course of business. In the past,
the Department has found that translation losses represent an increase
in the actual amount of cash needed by respondents to retire their
foreign currency-denominated loan balances. See Notice of Final
Determination of Sales at Less Than Fair Value: Fresh Cut Roses from
Ecuador, 24 FR 7019, 7039, (Feb. 6, 1995). We have therefore included
the translation losses in our calculation of COP and CV and have
amortized these expenses over the remaining life of the companies''
loans.
Comment 4: Waste and Discarded Material
Petitioners note that the accounting method used by each respondent
to record the value of scrap (either generated from or recycled back
into rebar production) can result in a significant understatement of
costs. Petitioners reason, therefore, that the Department should
closely scrutinize the quantity, value and accounting treatment of
scrap reported by each respondent.
Respondents maintain that each company's treatment of scrap is
reasonable and does not result in a significant understatement of
costs.
DOC Position
We reviewed and verified the respondents' accounting treatment of
[[Page 9744]]
scrap. We found respondents' treatment accurately reflects the value of
scrap. See Colakoglu Cost Verification Report at 6 and 7; Ekinciler
Cost Verification Report at 10 and 18; Habas Cost Verification Report
at 9 and 17; and Metas Cost Verification Report at 10 and 18.
Comment 5: Treatment of Defective Bar and ``Out-of-form'' Billets
Petitioners assert that Colakoglu and Habas improperly treated
defective bar and ``out-of-form'' billets, respectively, as co-
products. Petitioners argue that both respondents should have treated
these products as by-products. Petitioners state that by-products are:
(1) products that have low sales value compared to the sales value of
the main product; and (2) produced unintentionally as part of the
manufacturing process from the intended product. Petitioners assert
that Colakoglu's defective bar and Habas's out-of-form billet satisfy
all the by-product criteria and, therefore, should be treated as such.
Colakoglu maintains that its co-product accounting treatment of
defective bar is proper, stating that a co-product accounting
methodology is consistent with the manner in which defective bar is
treated in its books and records in the normal course of business.
Colakoglu argues that during verification the Department did not find
its co-product methodology distortive.
Habas argues that it properly treated ``out-of-form'' billet as a
co-product because billets are a finished good and are treated as such
in Habas's books. Furthermore, Habas contends that it accounts for such
billets in the same manner as it accounts for plain billets in the
ordinary course of business. Habas also states that the only difference
between billet and rebar production processes is the additional rolling
time required for rebar.
DOC Position
We agree with respondents. We believe that the methods used by
Colakoglu and Habas to account for defective bar and ``out of form''
billet, respectively, are reasonable because we found that they do not
distort the cost of producing rebar. Consequently, we have relied on
them for purposes of the final determination.
According to Sec. 773(f)(1)(A) of the Act, ``costs shall normally
be calculated based on the records of the exporter or producer of the
merchandise, if such records are kept in accordance with the generally
accepted accounting principles of the exporting country (or the
producing country, when appropriate) and reasonably reflect the costs
associated with the production and sale of the merchandise.'' See also
H.R. Doc. No. 316 (SAA) at 834 and 835. The CIT has upheld the
Department's use of expenses recorded in the company's financial
statements, when those statements are prepared in accordance with the
home country's GAAP and do not significantly distort the company's
actual costs. See e.g., Laclede Steel Co. v. United States, Slip Op.
94-160 at 22 (CIT 1994).
Accordingly, our practice is to adhere to an individual firm's
recording of costs, if we are satisfied that such principles reasonably
reflect the costs of producing the subject merchandise and are in
accordance with the GAAP of its home country. See, e.g., Final
Determination of Sales at Less Than Fair Value: Canned Pineapple Fruit
from Thailand, 60 FR 29553, 29559 (June 5, 1995); Final Determination
of Sales at Less Than Fair Value: Certain Stainless Steel Welded Pipe
from the Republic of Korea, 57 FR 53693, 53705 (Nov. 12, 1992); and
Final Determination of Sales at Less Than Fair Value: Furfuryl Alcohol
from South Africa, 60 FR 22550, 22556 (May 8, 1995). Normal accounting
practices provide an objective standard by which to measure costs,
while allowing respondents a predictable basis on which to compute
those costs. However, in those instances where it is determined that
normal accounting practices result in an unreasonable allocation of
production costs, the Department will make certain adjustments or may
use alternative methodologies that more accurately capture the costs
incurred. See, e.g., Final Determination of Sales at Less Than Fair
Value: New Minivans from Japan, 57 FR 21937, 21952 (May 26, 1992).
In the instant proceeding, therefore, the Department examined
whether respondents' accounting methodology for defective bar and ``out
of form'' billet reasonably reflects the cost of producing the subject
merchandise. We found that the quantity of defective bar and ``out of
form'' billet produced by these companies, in relation to total
production of all bar products, is so small as to not significantly
affect the per-unit cost for rebar. See Colakoglu Cost Verification
Report at 12 and Habas Cost Verification Report at 11. As such, we have
determined that respondents' methods of accounting for defective bar
and ``out of form'' billet do not distort the cost of producing rebar.
Moreover, these methods are used in the normal course of business.
Accordingly, we have accepted these methods for purposes of the final
determination.
Comment 6: Revised Cost Databases Submitted by Colakoglu and Habas
Petitioners argue that several fields in the cost databases
submitted after verification were revised without explanation from
those used for the preliminary determination. Therefore, petitioners
argue that the Department should use facts available instead of the
unexplained values contained in the altered fields. If the Department
has the information at its disposal, petitioners ask that the
Department explain why certain fields were omitted from the revised
cost databases.
In addition, petitioners state that Habas reported costs for
certain products for months during which there was no production of
those products. Petitioners maintain that the Department should ensure
that Habas did not fail to account for all costs actually incurred and
that the method Habas used to calculate monthly costs appropriately
allocated all costs. Petitioners argue that the Department should use
total facts available if Habas's submissions do not account for all
costs actually incurred, or if all costs are accounted for but
inappropriately allocated.
Colakoglu maintains that certain fields in its cost database were
altered due to changes that were requested by the Department.
Furthermore, Colakoglu states that certain fields were omitted because
the Department did not use those fields for the preliminary
determination, and, in fact, never requested that such data be
reported.
DOC Position
We disagree with petitioners. We analyzed respondents' revised
databases and found that all revisions were the direct result of
changes requested by the Department. Moreover, regarding the omitted
fields, we agree with Colakoglu that these fields were unnecessary and
were not used in our analysis. Therefore, we have accepted respondents'
revised databases for purposes of the final determination.
Company-Specific Issues
B. Colakoglu
Comment 7: Interest Rate Used to Calculate Home Market Credit Expenses
Colakoglu argues that the Department should not use loans issued by
the Turkish Eximbank in calculating its home market imputed credit
expenses. Colakoglu asserts that its Eximbank loans were related to
export-oriented activities and, as such, were not used to
[[Page 9745]]
finance home market sales. As precedent for its position, Colakoglu
cites Porcelain-on-Steel Cooking Ware From Mexico; Final Results of
Antidumping Duty Administrative Review, 58 FR 43327 (Aug. 16, 1993)
(Porcelain-on-Steel Cooking Ware), where the Department excluded short-
term export loans from the information used to calculate the home
market interest rate.
Petitioners disagree, stating that the Department should use
Colakoglu's Eximbank loans in calculating credit because Colakoglu had
no other source of borrowings denominated in Turkish lira during the
POI. Petitioners maintain that Colakoglu's actual borrowings are more
indicative of the company's short-term borrowing experience than are
the rates published by the IMF. Moreover, petitioners claim that the
facts in this case are distinguishable from those in Porcelain-on-Steel
Cooking Ware because the respondent in Porcelain-on-Steel Cooking Ware
had other short-term loans denominated in the home market currency.
DOC Position
We agree with petitioners. In general, the Department's practice
with regard to the interest rate used to calculate home market imputed
credit expenses is to base the rate on a company's actual borrowings in
the home market currency. The Department makes exceptions to this
practice either when there are no loans in the home market currency or
when a company is able to prove that its loans in that currency do not
form an appropriate basis for the home market interest rate (e.g., when
they are tied to specific export transactions).
In Porcelain-on-Steel Cooking Ware, it was demonstrated to the
Department's satisfaction that the loans at issue were tied directly to
exports of subject merchandise. In this case, however, not only is
there no evidence on the record showing that these loans are tied to
U.S. sales of rebar, but there is also no evidence that they are tied
to exports at all. Moreover, these loans are based on Turkish lira-
denominated borrowings and bear interest rates into which inflation has
been factored. Consequently, we find that the interest rates paid on
these loans are more indicative of Colakoglu's actual borrowing
experience than are the interest rates published by the IMF.
Accordingly, we have used them in our calculation of home market credit
for purposes of the final determination.
Comment 8: SG&A Expenses Incurred by Affiliated Parties at the Port
Colakoglu argues that the Department should not include in its U.S.
movement expenses those SG&A expenses incurred by Denak, an affiliated
party, in connection with export-related activities at the port.
According to Colakoglu, the administrative services performed by Denak
consist of securing vessels and communicating with vessel owners, not
running the port or moving goods. As such, Colakoglu asserts that these
circumstances are analogous to the circumstances in which a respondent
itself secures the services of an unaffiliated ocean freight company.
Colakoglu notes that, in such an instance, the Department does not add
a respondent's overhead expenses to the amount reported for ocean
freight.
Colakoglu also contends that in the event that the Department
decides that it must make an adjustment for Denak's SG&A expenses, the
Department should exclude those expenses which were unrelated to
services provided on behalf of Colakoglu.
Petitioners assert that the Department should make an adjustment
for Denak's SG&A expenses in order to ensure that all U.S. movement
expenses are captured in the margin calculation.
DOC Position
We disagree with petitioners and have made no adjustment for
Denak's SG&A expenses for the reasons explained below.
Regarding services provided by affiliated parties, the Department's
practice is to value the services at an arm's-length price. In order to
determine whether the price between the parties is at arm's length, the
Department generally looks at prices charged by the affiliate to
unaffiliated parties or at prices paid by the respondent to an
unaffiliated party. See, e.g., Final Determination of Sales at Less
Than Fair Value: Coated Groundwood Paper from Finland, 56 FR 56363
(Nov. 4, 1991). When there is no transaction with an unaffiliated
party, the Department must find another way to value the services in
question.
In this case, we examined Denak's role in the export process at
verification. We noted that Denak performed several services for
Colakoglu related to the shipment of the subject merchandise to the
United States. However, we were unable to determine the arm's-length
value of these services because we found that Denak did not charge
Colakoglu for such services, nor did Colakoglu secure the same services
from an outside party. As an alternative, we examined Denak's total
SG&A expenses at verification. However, we are unable to use these
expenses in our margin calculations because they relate to Denak's
operations as a whole, and not just to the shipment of rebar to the
United States.
Under these circumstances, the Department would normally base the
per-unit amount of the expense on facts available. Given the particular
facts of this case, however, we find that this is not appropriate for
Colakoglu. Specifically, we find that there is no net cost associated
with Denak's activities because: (1) Denak received revenue from
unaffiliated parties which was directly related to Colakoglu's export
of subject merchandise to the United States; and (2) Denak's revenues
exceeded its aggregate costs during the POI. As such, we determine that
no adjustment for Denak's SG&A expenses (or the directly-related
revenues) is warranted in this case.
We note that two of the other respondents, Ekinciler and Habas, had
similar arrangements with affiliated parties during the POI and similar
problems in determining the amount of per-ton SG&A expenses. Consistent
with our treatment of Colakoglu's situation, we have made no
adjustments for either the expenses or revenues associated with these
transactions.
Comment 9: Use of Data Contained in Revised Sales Database
At verification, the Department found that in certain instances
Colakoglu had reported average home market price and interest revenue
data. Colakoglu argues that the Department should accept its revised
database correcting these data for purposes of the final determination.
Colakoglu maintains that the averaging affected only a limited portion
of the home market database. Moreover, Colakoglu notes that the
corrected information was verified by the Department.
Petitioners contend that the Department should not use the data in
question. According to petitioners, this information is untimely
because it was submitted after the deadline for submission of factual
information (i.e., seven days prior to the start of verification).
Petitioners cite Elemental Sulfur from Canada: Preliminary Results of
Antidumping Duty Administrative Review, 62 FR 969 (Jan. 7, 1997)
(Elemental Sulfur), which outlines the conditions under which the
Department will accept new information
[[Page 9746]]
at verification.3 Petitioners claim that the conditions set forth
in Elemental Sulfur do not apply here.
---------------------------------------------------------------------------
\3\ These conditions are: (1) the need for the information was
not evident previously, (2) the information makes minor corrections
to information already on the record, or (3) the information
corroborates, supports, or clarifies information already on the
record.
---------------------------------------------------------------------------
DOC Position
We disagree with petitioners. The information in question was not
new information within the meaning of 19 CFR Sec. 353.31 because it
consisted of minor corrections to data which were already on the record
and affected only a limited portion of Colakoglu's home market
database. Accordingly, consistent with our practice outlined in
Elemental Sulfur, we used Colakoglu's revised home market database for
purposes of the final determination.
Comment 10: Critical Circumstances
Colakoglu maintains that the Department should determine that
critical circumstances do not exist with respect to its shipments based
on the fact that the increase in its imports has not been massive prior
to the preliminary determination. According to Colakoglu, it is the
Department's practice to use in its analysis the longest period for
which information is available from the month of the filing of the
petition until the effective date of the preliminary determination. In
this case, the appropriate period would be seven months.
Petitioners contend, however, that the Department should define the
period used in its analysis as the five-month period between the filing
of the petition and the date of the preliminary determination as
originally scheduled (i.e., August 1996). Petitioners argue that, had
it not been for the Department's decision to conduct a below-cost
investigation, the Department would have issued the preliminary
determination in August and Colakoglu would have been effectively
precluded from making its argument on critical circumstances. Moreover,
petitioners assert that a finding in Colakoglu's favor would have a
chilling effect on petitioners' use of either the below-cost provisions
or the critical circumstances provisions of the antidumping law, by
forcing petitioners to choose between alleging the existence of sales
below cost or critical circumstances.
DOC Position
We agree with Colakoglu. In determining whether imports have been
massive within the meaning of Sec. 735(a)(3)(B) of the Act, it is the
Department's practice to base its analysis on the longest period for
which information is available, normally beginning with the month of
filing of the petition 4 and ending with the date of the
preliminary determination. See Notice of Final Determinations of Sales
at Less Than Fair Value: Brake Drums and Brake Rotors from the People's
Republic of China (issued on Feb. 24, 1997), where the Department used
a seven-month period; Notice of Preliminary Determination of Sales at
Less Than Fair Value: Bicycles from the People's Republic of China, 60
FR 56567, 56574 (Nov. 9, 1995), where the Department used periods
ranging from three to six months, based on ``the Department's practice
of using the longest period for which information is available from the
month that the petition was submitted through the effective date of the
preliminary determination,'' affirmed in Notice of Final Determination
of Sales at Less Than Fair Value: Bicycles from the People's Republic
of China, 61 FR 19026, 19031 (April 30, 1996)); and Notice of
Preliminary Determination of Critical Circumstances: Disposable Pocket
Lighters from the People's Republic of China, 60 FR 436, 437 (Jan. 4,
1995), where the Department used a period of seven months, affirmed in
Notice of Final Determination of Sales at Less Than Fair Value:
Disposable Pocket Lighters from the People's Republic of China, 60 FR
22359, 22363 (May 5, 1995).
---------------------------------------------------------------------------
\4\ The date on which a petition is filed will determine
whether the month of filing will be included in the base or
comparison period.
---------------------------------------------------------------------------
Consequently, we have based our analysis on the seven-month period
between the filing of the petition and the date of the preliminary
determination. Using these data, we find that imports by Colakoglu have
not been massive over a relatively short period of time. Accordingly,
we find that critical circumstances do not exist for Colakoglu.
Comment 11: Affiliated Party Freight Services
Colakoglu argues that the transfer prices that it pays to its
affiliate Denak for transporting imported scrap are not equivalent to
market prices and, therefore, should not be used in the Department's
final determination. Respondent notes that, in the past, the Department
has included transfer prices only when it was demonstrated that they
were equivalent to market prices. See Final Determination at Less Than
Fair Value: High Information Content Flat Panel Displays and Display
Glass from Japan, 56 FR 32376, 32376 (July 16, 1991). Respondent
reasons that, in order for the Department to conclude that the transfer
price between Colakoglu and its affiliate is at arm's length, the
Department must conclude that prices charged by the affiliate are
comparable to those charged by an unaffiliated freight supplier.
Respondent argues that the discrepancy between Denak's price and the
unaffiliated price demonstrates that the amount charged by Denak is not
an arm's-length price and should be disregarded. Respondent notes that
the statute does not specify that only transfer prices that are lower
than market prices may be disregarded. Rather, respondent points out
that in the past the Department has also disregarded transfer prices
which are higher than arm's-length prices. See Final Results of
Antidumping Duty Administrative Review: Color Picture Tubes from Japan,
55 FR 37915, 37922 (Sept. 14, 1990).
Petitioners argue that the Department should continue to use the
price Colakoglu paid to Denak for freight services because it is an
arm's-length price. Petitioners note that the Department has recently
found that ``in the case of a transaction between affiliated persons
involving a major input, we will use the highest of the transfer price
between the affiliated parties, the market price between unaffiliated
parties, and the affiliated supplier's cost of producing the major
input.'' See Final Results of Antidumping Administrative Review:
Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts
Thereof from France, Germany, Italy, Japan, Singapore, and the United
Kingdom, 62 FR 2081, 2115 (Jan. 15, 1997) (AFB's).
DOC Position
We agree with petitioners. In determining whether a transaction
occurred at an arm's-length price for a major input, as stated in
AFB's, the Department will use the highest of the transfer price
between the affiliated parties, the market price between unaffiliated
parties, and the affiliated supplier's cost of producing a major input.
In the normal course of business Colakoglu records the transfer
price in its books to account for freight costs from its affiliate.
However, Colakoglu submitted its affiliate's cost of providing freight
service, the transfer price paid by Colakoglu, and prices from
unaffiliated freight companies. In accordance with the practice
outlined in AFB's, we
[[Page 9747]]
compared these data and found that the price paid to Denak was an
arm's-length price for freight services pursuant to Sec. 773(f) (2) or
(3) of the Act. Accordingly, we have used the affiliated company's
transfer price to value freight services.
C. Ekinciler
Comment 12: Non-Subject Merchandise Ekinciler argues that the inclusion
of de minimis quantities of non-subject merchandise in its home market
database is not material to the calculation of dumping and that the
Department should not adjust its reported home market sales database
with regard to non-subject merchandise. Ekinciler states that the
number of sales of fabricated rebar inadvertently included in its home
market sales database is so small as to be insignificant. Ekinciler
maintains that a comparison of the relative prices of the non-subject
rebar to the subject rebar demonstrates that the inclusion of the non-
subject merchandise is of no consequence and may work to its
disadvantage. Thus, Ekinciler asserts that the Department should
continue to use Ekinciler's submitted home market database without
making adjustments for fabricated rebar for purposes of the final
determination.
Petitioners contend that, if the Department does not base
Ekinciler's margin on total facts available (see Comment 1), it should
use the most adverse facts available for this aspect of Ekinciler's
margin.
DOC Position
We disagree with respondent, in part. We agree with respondent that
the Department should continue to use its home market sales listing
because the quantity of non-subject merchandise included is small.
However, according to Sec. 773(a)(1)(B)(i) of the Act, the price on
which normal value is based is ``the price at which the foreign like
product is first sold (or, in the absence of a sale, offered for sale)
for consumption in the exporting country * * *'' Therefore, we are
required by the statute to exclude non-subject merchandise from our
calculation of normal value.
Petitioners point to the inclusion of non-subject merchandise as
evidence that Ekinciler's entire response is unreliable and propose the
use of the most adverse facts available for this aspect of Ekinciler's
response. We find, however, that adverse facts available is not
warranted in this instance because we were able to verify Ekinciler's
home market sales of subject merchandise. Accordingly, we have excluded
all sales of non-subject merchandise discovered at verification.
Comment 13: Dunnage Revenue
Petitioners argue that the Department should omit dunnage revenue
from the calculation of U.S. price for Ekinciler because dunnage
revenue could not be verified. Specifically, petitioners cite to the
verification report which stated that Ekinciler was ``unable to provide
bills of lading for third country sales that would have confirmed which
shipment was more appropriately associated with the dunnage sales.''
Ekinciler contends that, although it was not possible to directly
tie the reported dunnage revenue to a specific U.S. sale, its
methodology is reasonable, and the Department should make an adjustment
for the reported revenue. Ekinciler maintains that, as stated in the
verification report, no more than one vessel may dock at the port for
loading at any one time. Therefore, since Ekinciler matched dunnage
sales to shipments that left the port on approximately the same date as
the date of the dunnage sale, it claims that it is reasonable to assume
that the reported dunnage revenues were earned in connection with the
identified U.S. shipments.
DOC Position
We agree with petitioners. At verification, we noted that Ekinciler
did not receive revenue from the sale of dunnage materials on every
export shipment. Consequently, we were unable to verify that the
reported dunnage revenue actually corresponded to shipments of U.S.-
bound rebar and not to shipments to other export markets. Therefore we
did not include dunnage revenue in our final margin calculation for
Ekinciler.
Comment 14: Home Market Credit Expense
Ekinciler asserts that the Department should make no adjustment for
imputed home market credit expense for the final determination because
this adjustment is de minimis. Ekinciler claims that the imputed credit
expense resulting from the use of its verified average number days
outstanding is insignificant, and that the Department should disregard
this insignificant adjustment to NV in accordance with Sec. 777A(a)(2)
of the Act and 19 CFR 353.59(a). Alternatively, Ekinciler contends that
the Department should correct its calculation of credit to reflect that
the interest rate reported is an annual rate.
DOC Position
We agree with respondent, in part. According to Sec. 773A(a)(2) of
the Act, the Secretary may disregard adjustments that are
insignificant. However, there is no requirement that adjustments which
may be insignificant must be disregarded. We have made the adjustment
to NV for imputed credit expenses because this adjustment can be easily
made and the information on which it is based has been verified and is
reliable. However, we agree with respondent that this expense was
calculated incorrectly for the preliminary determination. Accordingly,
we have corrected our calculation for the final determination to
reflect that the interest rate was reported on an annual basis.
Comment 15: Packing Expenses
Ekinciler argues that the Department should accept its packing
expenses as reported. Ekinciler maintains that, although the
Department's verification report indicates that there was a variation
in the reported packing expenses for one of its mills as well as a
difference in home market and U.S. packing, it was unaware that there
was any significant discrepancy between the reported packing costs and
those found at verification. Ekinciler states that, if the Department
should find that the packing expenses with respect to the mill in
question need to be corrected, the Department may use any of the
reported monthly packing expenses from its other mills. According to
Ekinciler, these sources provide accurate, verified data reasonable for
use as facts available, particularly since Ekinciler can be assumed to
have sourced all of its packing materials for all of its mills from the
same sources at the same prices.
Petitioners argue that, if the Department does not base Ekinciler's
margin on total facts available (see Comment 1), it should use the most
adverse facts available for this aspect of Ekinciler's margin
calculation.
DOC Position
We disagree with Ekinciler that the Department should accept its
submitted packing expenses. At verification, Ekinciler was unable to
demonstrate that the packing expenses associated with one of its mills
were reported correctly. Consequently, we have based the packing
expenses for the mill in question on facts available. As facts
available, we used the highest verified monthly packing expense
reported by Ekinciler for any of its other mills.
[[Page 9748]]
Comment 16: Depreciation
Petitioners claim that Ekinciler failed to allocate the year-end
inflation adjustment for depreciation expense to each month of the
year. Thus, petitioners maintain that Ekinciler's monthly depreciation
costs are understated.
According to Ekinciler, its cost submissions clearly show that the
year-end inflation adjustment to depreciation expense was included in
the monthly costs used to derive COP and CV. Also, Ekinciler asserts
that, if the Department inflates its monthly production costs as it did
in the preliminary determination, it will overstate its depreciation
expense because this expense was already adjusted to account for
inflation. Ekinciler notes that the Department verified its reported
depreciation expense included a monthly adjustment. This adjustment was
calculated at year-end using the revaluation index published by the
Turkish Ministry of Finance and applied to each month's costs.
Therefore, Ekinciler contends that in the final determination the
Department should either: (1) Not inflate reported monthly depreciation
expenses; or (2) deflate the reported monthly depreciation expenses to
remove the effects of the revaluation before depreciation expenses are
inflated.
DOC Position
We agree with Ekinciler. Ekinciler expressed the year-end inflation
adjustment to depreciation expense as a percentage of cost of sales and
applied this percentage to reported monthly manufacturing costs to
derive the monthly depreciation expense reported for COP and CV. Thus,
contrary to petitioners'' claim, the adjustment to inflate depreciation
expense was applied to each month of the POI.
Additionally, the Department found at verification that the
reported depreciation expense was calculated using asset costs that had
been revalued with the revaluation index published by the Turkish
Ministry of Finance. Moreover, Ekinciler provided a translation of the
Ministry of Finance's regulations concerning asset revaluation which
indicated that the revaluation index is based on an inflation index.
Thus, revaluation using this index means that the depreciation expense
was already adjusted for inflation. Accordingly, for the final
determination we have subtracted depreciation expense from total
manufacturing costs before inflating those costs to year-end values. We
added inflated manufacturing costs to the reported depreciation expense
to derive the total cost of manufacturing.
Comment 17: Other Revenue and Expenses
Petitioners maintain that Ekinciler should include non-operating
and other expenses in general and administrative (G&A) expenses because
these expenses are related to the production of subject merchandise.
However, petitioners argue that non-operating and other revenue should
not be used to offset G&A expenses because this revenue is either from
activities unrelated to the sale or manufacture of rebar or from
accounting adjustments.
Ekinciler maintains that both non-operating and other expenses and
revenue should be included as reported because these are components of
G&A expenses. Unless G&A expenses are reported on a divisional or
product-line basis, Ekinciler contends that it is irrelevant that an
element of G&A does not relate to the subject merchandise.
DOC Position
We agree with Ekinciler that both non-operating and other revenue
and expenses should be included in G&A. At verification, we identified
each item included in non-operating and other revenue and expenses.
After examining these items we determined that, except for one revenue
item, Ekinciler's non-operating and other revenue and expenses relate
to the subject merchandise. We reached this conclusion because these
items are generated from resources associated with the production of
subject merchandise. The Department's practice is to adjust G&A
expenses for miscellaneous revenue and expenses related to the
production of subject merchandise (see Final Determination of Sales at
Less Than Fair Value: Oil Country Tubular Goods From Argentina, 60 FR
33539, 33550, (June 28, 1995)). Therefore, we have increased G&A by
non-operating and other expenses and reduced G&A expenses by non-
operating and other revenue except for the one revenue item unrelated
to the production of subject merchandise.
Comment 18: G&A Rate
Petitioners note that Ekinciler included certain non-manufacturing
costs (i.e., costs associated with operating Ekinciler's port and
cafeteria) in the denominator of its G&A ratio, but did not report
these costs elsewhere in its response. Petitioners argue that, because
these non-manufacturing costs were not included in COP and CV, the
Department should base both Ekinciler's G&A rate and COP on adverse
facts available. Petitioners claim that Ekinciler's failure to report
the costs in question demonstrates that the company's response contains
other inaccuracies. At a minimum, however, petitioners argue that, if
the Department does not apply adverse facts available, it should treat
the non-manufacturing costs consistently (i.e., either exclude or
include such costs from both the G&A rate and the reported costs).
Ekinciler maintains that the Department should accept its G&A rate
as reported (i.e., by including the non-manufacturing costs in question
as part of the denominator of the calculation of the G&A rate).
Ekinciler notes that the Department defined G&A expenses in its cost
questionnaire as ``those period expenses which relate to the activities
of the company as a whole rather than to the production process
alone.''
DOC Position
We agree with Ekinciler. Because the G&A expenses used to derive
the G&A rate relate to the activities of the company as a whole,
including non-manufacturing activities, we have determined that the
methodology Ekinciler used to compute the G&A rate is appropriate.
Furthermore, the non-manufacturing costs are related to a separate line
of business and, thus, they are unrelated to the manufacture of the
subject merchandise. Therefore, these costs were properly excluded from
the COP and CV.
Comment 19: Billet Transportation Costs
At verification, the Department found that Ekinciler failed to
include the cost of transporting billets within the factory in its
reported billet cost. Ekinciler urges the Department to accept the
reported billet costs because the omission found at verification is
insignificant.
Petitioners claim Ekinciler's failure to include intra-factory
transportation costs in reported billet costs indicates Ekinciler's
responses are unreliable and therefore, the Department should base
Ekinciler's billet cost on adverse facts available.
DOC Position
We disagree with petitioners. For the reasons stated in Comment 1,
we do not find that Ekinciler's omission of intra-factory
transportation costs satisfies the statutory requirements for using
facts available or making adverse inferences in reaching a
determination. Therefore, consistent with the Department's practice of
correcting minor errors where the use of adverse facts available is
unwarranted, we adjusted the
[[Page 9749]]
reported billet cost to include intra-factory transportation costs (see
Notice of Final Determination of Sales at Less Than Fair Value:
Beryllium Metal and High Beryllium Alloys From the Republic of
Kazakstan, 62 FR 2648, 2650 (Jan. 17, 1997)).
D. Habas
Comment 20: Packing Expenses
Habas acknowledges that the Department was unable to verify the
monthly production quantities of exported billet, which together with
monthly rebar production quantities serve as the denominator for
monthly per-unit strap expense. However, Habas maintains that the
Department was able to successfully verify all other components of its
packing calculation. Habas, therefore, argues that the Department
should continue to use Habas's reported packing costs in the margin
calculation.
Petitioners argue that, because the Department found Habas's
packing expense to be erroneous at verification, the Department should
either base Habas's packing expense on adverse facts available or
recalculate Habas's packing expense taking into account the information
discovered at verification. Petitioners maintain that using adverse
facts available with respect to calculating Habas's packing expense is
appropriate because: 1) the respondent has an obligation to provide
accurate data; 2) the Department has a practice of not accepting new
information submitted at verification; and 3) the Department's
resorting to the use of facts available constitutes a significant
incentive for the submission of accurate data.
DOC Position
To calculate the per unit strap expense in its overall packing
calculation, Habas used billets produced for export along with total
rebar production as part of the calculation's denominator. At
verification, Habas was unable to provide supporting documentation for
billets produced for export. We agree with respondent that, other than
this one element, the Department was able to successfully verify all
other packing material and labor expenses. Therefore, we disagree with
petitioners that adverse facts available is warranted in this instance.
We do, however, agree with petitioners that the Department should
recalculate Habas's packing expense taking into account the information
discovered at verification. Therefore, rather than billets produced for
export, we used the total verified 1995 exports of billets and total
rebar production as the denominator for the per-unit strap calculation.
Comment 21: Home Market Credit
Habas states that, as reported to the Department, its books do not
accurately reflect the date of receipt of payment for home market
sales. However, Habas contends that its methodology for reporting
payment dates and amounts of payment is consistent with the records
kept by Habas in the ordinary course of business. Therefore, Habas
argues that the Department should continue to use its reported home
market credit expenses in the final determination.
DOC Position
Because we did not use Habas's selling expense data for purposes of
the final determination, this issue is moot.
Comment 22: G&A Expenses
Petitioners assert that, as facts available, the Department should
base Habas's G&A expenses on Habas's annual corporate-wide G&A expenses
for 1995, adjusted for inflation, rather than the G&A expenses for the
iron and steel division. As support for this position, petitioners cite
the Department's practice in the following determinations: Final
Determination of Sales at Less than Fair Value: Certain Hot-Rolled
Carbon Steel Flat Products, Certain Cold-Rolled Carbon Steel Flat
Products, Certain Corrosion-Resistant Carbon Steel Flat Products,
Certain Cut-to-Length Carbon Steel Plate from Canada, 58 FR 37099,
37114 (July 9, 1993).
Habas maintains that the Department verified all of its SG&A
expenses. Habas states that, although the Department frequently uses a
corporate-wide G&A rate, the Department's practice is to use selling
expenses which are based on the expenses of the relevant division
within a company. Therefore, Habas maintains that the correct ratio to
use for the sales portion of the SG&A is the indirect selling expenses
of the iron and steel division divided by the iron and steel division's
cost of sales.
DOC Position
Insofar as we did not use Habas's G&A expenses in the calculations
for the final determination, this issue is moot.
E. Metas
Comment 23: Material Costs
Petitioners argue that Metas's submitted cost of materials is not
based on the actual quantities of scrap used in the production of
rebar. Petitioners note that Metas calculated its submitted cost of
scrap inputs based on the company's policy regarding the preferred
mixture of different scrap types. Petitioners maintain that the
Department was unable to verify that Metas's policy of preferred scrap
usage is indicative of the actual scrap used to produce rebar during
the POI. Petitioners believe that Metas's schedule of scrap purchases
during the POI is the best evidence on the record of actual scrap used
and argue that the Department should adjust Metas's material costs so
that the average usage of scrap reflects the ratio of scrap purchased
during 1995.
DOC Position
We agree with petitioners. In order to provide the Department with
product-specific material costs, Metas calculated the cost of materials
using the average scrap quantities it believes are typical of the
mixtures required to make rebar. During verification, we found that
Metas does not specifically track the quantity of the types of scrap
used in the production of rebar. As a result, Metas was unable to
provide us with documentation to substantiate the ratio of scrap types
used in its calculations. Therefore, we recalculated Metas's material
costs using the actual mix of scrap purchased during 1995.
Continuation of Suspension of Liquidation
In accordance with Sec. 735(c) of the Act, we are directing the
Customs Service to continue to suspend liquidation of all entries of
rebar from all companies except Colakoglu that are entered, or
withdrawn from warehouse, for consumption on or after July 12, 1996,
which is 90 days prior to the date of publication of the notice of the
preliminary determination in the Federal Register. Regarding Colakoglu,
we are directing the Customs Service to continue to suspend liquidation
of all entries of rebar from Colakoglu that are entered, or withdrawn
from warehouse, for consumption on or after October 10, 1996, the date
of publication of our preliminary determination in the Federal
Register. We will instruct the Customs Service to require a cash
deposit or the posting of a bond equal to the weighted-average amount
by which NV exceeds export price, as indicated in the chart below. This
suspension of liquidation will remain in effect until further notice.
------------------------------------------------------------------------
Weighted-
average Critical
Exporter/manufacturer margin circumstances
percentage
------------------------------------------------------------------------
Colakoglu........................... 9.84 No.
Ekinciler........................... 18.68 Yes.
Habas............................... 19.15 Yes.
[[Page 9750]]
IDC................................. 41.80 Yes.
Metas............................... 30.16 Yes.
All Others.......................... 16.25 Yes.
------------------------------------------------------------------------
ITC Notification
In accordance with Sec. 735(d) of the Act, we have notified the ITC
of our determination. As our final determination is affirmative, the
ITC will determine, within 45 days, whether these imports are causing
material injury, or threat of material injury, to an industry in the
United States. If the ITC determines that material injury, or threat of
material injury, does not exist, the proceeding will be terminated and
all securities posted will be refunded or canceled. If the ITC
determines that such injury does exist, the Department will issue an
antidumping duty order directing Customs officials to assess
antidumping duties on all imports of the subject merchandise entered,
or withdrawn from warehouse, for consumption on or after the effective
date of the suspension of liquidation.
This determination is published pursuant to Sec. 735(d) of the Act.
Dated: February 24, 1997.
Robert S. LaRussa,
Acting Assistant Secretary for Import Administration.
[FR Doc. 97-5228 Filed 3-3-97; 8:45 am]
BILLING CODE 3510-DS-P