[Federal Register Volume 62, Number 223 (Wednesday, November 19, 1997)]
[Notices]
[Pages 61773-61780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30394]


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DEPARTMENT OF COMMERCE

International Trade Administration
[A-570-849]


Suspension of Antidumping Duty Investigation: Certain Cut-to-
Length Carbon Steel Plate From the People's Republic of China

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

SUMMARY: The Department of Commerce (the Department) has suspended the 
antidumping investigation on cut-to-length carbon steel plate from the 
People's Republic of China (PRC). The basis for the suspension is an 
agreement by the Government of the PRC to restrict the volume of direct 
and indirect exports to the United States of cut-to-length carbon steel 
plate from all PRC producers/exporters and to revise its prices to 
eliminate completely sales of this merchandise to the United States at 
less than fair value.

EFFECTIVE DATE: October 24, 1997.

FOR FURTHER INFORMATION CONTACT: Edward Yang, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, N.W., Washington, D.C. 20230; 
telephone: (202) 482-3910.

SUPPLEMENTARY INFORMATION:

Background

    On December 3, 1996, the Department initiated an antidumping 
investigation under section 732 of the Tariff Act of 1930, (the Act), 
as amended, to determine whether imports of CTL plate from the People's 
Republic of China are being or are likely to be sold in the United 
States at less than fair value (61 FR 64051 (December 3, 1996)). On 
December 19, 1996, the United States International Trade Commission 
(ITC) notified the Department of its affirmative preliminary threat of 
injury determination (see ITC Investigation Nos. 731-TA-756). On June 
11, 1997, the Department preliminarily determined that CTL plate is 
being, or is likely to be, sold in the United States at less than fair 
value (LTFV), as provided in section 733 of the Tariff Act of 1930, as 
amended by the Uruguay Round Agreements Act (62 FR 31958, (June 11, 
1997)).
    The Department and the People's Republic of China initialed a 
proposed agreement suspending this investigation on September 24, 1997. 
On September 25, 1997, we invited interested parties to provide written 
comments on the agreement and received comments from Geneva Steel, Gulf 
States Steel, Bethlehem Steel Corp., U.S. Steel Group, United Steel 
Workers of America, Liaoning, Anshan, Bao Steel, Shanghai Pudong and 
WISCO.
    The Department and the Government of the People's Republic of China 
signed the final suspension agreement on October 24, 1997.

Scope of the Investigation

    See Notice of Final Determination of Sales at Less than Fair Value: 
Certain Cut-to-Length Carbon Steel Plate from the People's Republic of 
China, signed on October 24, 1997.

Suspension of Investigation

    The Department consulted with the parties to the proceeding and has 
considered the comments submitted with respect to the proposed 
suspension agreement. In accordance with Section 734 (l) of the Act, we 
have determined that the agreement will prevent the suppression or 
undercutting of price levels of domestic products by imports of the 
merchandise under investigation, that the agreement is in the public 
interest, and that the agreement can be monitored effectively. See 
Public Interest Memorandum, dated October 24, 1997. We find, therefore, 
that the criteria for suspension of an investigation pursuant to 
section 734(l) of the Act have been met. The terms and conditions of 
this Agreement, signed October 24, 1997, are set forth in Annex 1 to 
this notice.
    Pursuant to section 734(f)(2)(A) of the Act, the suspension of 
liquidation of all entries of cut-to-length carbon steel plate from the 
People's Republic of China entered or withdrawn from warehouse, for 
consumption, as directed in our notice of ``Preliminary Determination 
of Sales at Less Than Fair Value: Cut-to-Length Carbon Steel Plate from 
the People's Republic of China'' and ``Postponement of the Final 
Determination: Cut-to-Length Carbon Steel Plate from the People's 
Republic of China'' is hereby terminated. Any cash deposits on entries 
of cut-to-length carbon steel plate from the People's Republic of China 
pursuant to that suspension of liquidation shall be refunded and any 
bonds shall be released.
    On October 14, 1997, we received a request from petitioners 
requesting that we continue the investigation. We received separate 
requests for continuation from Bethlehem Steel Corp., U.S. Steel Corp. 
(A Unit of USX Corporation), and the United Steelworkers of America, 
interested parties under section 771(9)(D) of the Act. Pursuant to 
these requests, we have

[[Page 61774]]

completed the investigation in accordance with section 734(g) of the 
Act, and have notified the International Trade Commission (ITC) of our 
determination. If the ITC's injury determination is negative, the 
agreement will have no force or effect, and the investigation will be 
terminated (See section 734(f)(3)(A) of the Act). If the ITC's 
determination is affirmative, the Department will not issue an 
antidumping duty order as long as the suspension agreement remains in 
force (See section 734(f)(3)(B) of the Act).
    This notice is published pursuant to section 734(f)(1)(A) of the 
Act.

    Dated: November 7, 1997.
Robert S. LaRussa,
Assistant Secretary for Import Administration.

Annex 1--Agreement Suspending the Antidumping Investigation on Certain 
Cut-to-Length Carbon Steel Plate From the People's Republic of China

    For purposes of encouraging free and fair trade in certain cut-to-
length carbon steel plate (CTL plate), establishing more normal market 
relations, and preventing the suppression or undercutting of price 
levels of the domestic products by imports of the merchandise subject 
to this Agreement, the United States Department of Commerce (``the 
Department'') and the Government of the People's Republic of China 
enter into this suspension agreement (``the Agreement'').
    Pursuant to this Agreement, the Government of the People's Republic 
of China will restrict the volume of direct and indirect exports to the 
United States of CTL plate from all Chinese producers/exporters, 
subject to the terms and provisions set forth below. For any of the 
deadlines mentioned in this Agreement, the Ministry of Foreign Trade 
and Economic Cooperation (``MOFTEC'') may request an extension which 
will be considered by the Department if it is received in writing prior 
to the deadline in question and includes reasons for the extension.
    On the basis of this Agreement, pursuant to the provisions of 
Section 734(1) of the Tariff Act of 1930, as amended, by the Uruguay 
Round Agreements Act, as effective on January 1, 1995 (``the Act'') (19 
U.S.C. 1673c(1)), the Department shall suspend its antidumping 
investigation with respect to CTL plate produced in the People's 
Republic of China, subject to the terms and provisions set forth below. 
Further, the Department will instruct the U.S. Customs Service 
(``Customs'') to terminate the suspension of liquidation of, and 
release any cash deposit or bond posted on, CTL plate covered by this 
Agreement as of the effective date of this Agreement.

I. Definitions

    For purposes of this Agreement, the following definitions apply:
    A. ``Date of Export'' for imports of CTL plate into the United 
States shall be considered the date the export license was issued.
    B. ``Parties to the Proceeding'' means any interested party, within 
the meaning of section 353.2(k) of the Department's Regulations, which 
actively participates through written submissions of factual 
information or written argument.
    C. ``Indirect Exports'' means arrangements as defined in Section 
III.E of this Agreement and exports from the People's Republic of China 
through one or more third countries, whether or not such exports are 
further processed, insofar as they remain within the scope of the 
Agreement, and includes further processing which results in minor 
alterations, or under certain limited circumstances, as described in 
Section VII. G., further processing which results in substantial 
transformation as a result of an attempt to circumvent the Agreement, 
whether or not such exports are sold in one or more third countries 
prior to importation into the United States and whether or not the 
Chinese producer knew the product was destined to enter the United 
States.
    D. For purposes of this Agreement, ``United States'' shall comprise 
the customs territory of the United States of America (the 50 States, 
the District of Colombia and Puerto Rico) and foreign trade zones 
located in the territory of the United States of America.
    E. ``For Consumption'' means all CTL plate sold to customers, such 
as, trading companies, distributors, resellers, end-users, or service 
centers.
    F. Customer means an entity, such as a steel service center, 
reseller, trading company, end-user, etc., which consumes CTL plate as 
defined in Section I.E.
    G. ``Date of Sale'' is defined as the date on which price and 
quantity become firm, e.g., the specification date or, in the case of a 
long-term contract, the date of contract, as recorded in the company's 
records kept in the ordinary course of business.
    H. ``Export License'' is the document issued by the Ministry of 
Foreign Trade and Economic Cooperation (``MOFTEC'') which must 
accompany all shipments of CTL plate from the People's Republic of 
China to the United States, and must contain all of the information 
enumerated in the Appendix to this Agreement, except that the 
categories Date of Entry, Importer of Record, Final Destination, and 
Other may be omitted if unknown to the MOFTEC and the licensee. An 
export license shall be required for customs clearance into the United 
States.
    I. ``Reference Price'' means the price calculated by the 
Department, as described in Section IV, on a quarterly basis to be used 
as a floor price for sales of Chinese CTL plate into the United States.
    J. ``Relevant Period'' for the export limits of the Agreement means 
the period November 1, through October 31 of each year that the 
Agreement is in effect.

II. Product Coverage

    The products covered by this Agreement include hot-rolled iron and 
non-alloy steel universal mill plates (i.e., flat-rolled products 
rolled on four faces or in a closed box pass, of a width exceeding 150 
mm but not exceeding 1250 mm and of a thickness of not less than 4 mm, 
not in coils and without patterns in relief), of rectangular shape, 
neither clad, plated nor coated with metal, whether or not painted, 
varnished, or coated with plastics or other nonmetallic substances; and 
certain iron and non-alloy steel flat-rolled products not in coils, of 
rectangular shape, hot-rolled, neither clad, plated, nor coated with 
metal, whether or not painted, varnished, or coated with plastics or 
other nonmetallic substances, 4.75 mm or more in thickness and of a 
width which exceeds 150 mm and measures at least twice the thickness. 
Included as subject merchandise in this Agreement are flat-rolled 
products of nonrectangular cross-section where such cross-section is 
achieved subsequent to the rolling process (i.e., products which have 
been ``worked after rolling'')--for example, products which have been 
bevelled or rounded at the edges. This merchandise is currently 
classified in the Harmonized Tariff Schedule of the United States (HTS) 
under item numbers 7208.40.3030, 7208.40.3060, 7208.51.0030, 
7208.51.0045, 7208.51.0060, 7208.52.0000, 7208.53.0000, 7208.90.0000, 
7210.70.3000, 7210.90.9000, 7211.13.0000, 7211.14.0030, 7211.14.0045, 
7211.90.0000, 7212.40.1000, 7212.40.5000, 7212.50.0000. Although the 
HTS subheadings are provided for convenience and customs purposes, the 
written description of the scope of this Agreement is dispositive.

[[Page 61775]]

    Specifically excluded from subject merchandise within the scope of 
this Agreement is grade X-70 steel plate.

III. Export Limit

    A. The export limit for CTL plate for the first Relevant Period 
shall be 150,000 metric tons. Until such time as reference prices are 
agreed to for other grades, only grade A36 may be exported. Of this 
export limit, not more than 25,000 metric tons may be utilized in 
selling CTL plate which is 0.375 inches or less in actual or nominal 
thickness, and not more than 25,000 metric tons may be utilized in 
selling CTL plate which is three inches or more in actual or nominal 
thickness. No later than 60 days prior to the end of the first Relevant 
Period, the Department shall calculate an upward or downward adjustment 
to the next Relevant Period's quota based upon changes in U.S. apparent 
consumption for steel plate. U.S. apparent consumption will be 
calculated using official statistics from the U.S. Census Bureau and 
data from the American Iron and Steel Institute regarding domestic 
shipments. The maximum adjustment will be plus or minus no more than 6 
percent per Relevant Period, and will be calculated by comparing the 
most recent twelve months of data for U.S. apparent consumption 
available to the Department at the time of the calculation to the level 
of the previous corresponding twelve months of data. The Department 
will then apply the adjustment to the Relevant Period's export limit. 
The Department will similarly adjust the export limit every Relevant 
Period, and the effects of the adjustment will be cumulative. 
Deductions from the export limits shall be made based on the ``Date of 
Export'', as defined in Section I. No more than sixty percent of the 
export limit for any Relevant Period may be licensed during each half 
(six-month period) within a given Relevant Period.
    B. On and after the effective date of this Agreement, the 
Government of the People's Republic of China will restrict the volume 
of direct and indirect exports of CTL plate to the United States, and 
the transfer and withdrawal from inventory of CTL plate (consistent 
with the provisions of Section III.D), in accordance with the export 
limits then in effect.
    C. Export licenses may not be issued for more than the entire 
amount of quota allocated in any given Relevant Period. Any CTL plate 
exported during a Relevant Period shall not when cumulated with all 
prior exports in such Relevant Period exceed the export limit for that 
Relevant Period.
    D. Any inventories of CTL plate currently held in the United States 
by a Chinese legal entity and imported into the United States between 
November 5, 1996 and the effective date of this Agreement will be 
subject to the following conditions:
    1. Such inventories will not be transferred or withdrawn from 
inventory for consumption in the United States without an Export 
License issued by MOFTEC. Any such transfers or withdrawals from 
inventory shall be deducted from the export limits in effect at the 
time the Export License is issued.
    2. A request for an Export License under this provision shall be 
accompanied by a report containing the information set forth in the 
Appendix to this Agreement.
    E. Any arrangement involving the exchange, sale, or delivery of CTL 
plate products from the People's Republic of China, whether or not 
further processed, to the degree it results in the sale or delivery in 
the United States of CTL plate from a country other than the People's 
Republic of China, is subject to the requirements of Section V and will 
be counted toward the export limits. Any such transaction that does not 
comply with the requirements of Section V will be deducted from the 
export limits pursuant to Section VII.
    F. Where CTL plate is imported into the United States and is 
subsequently re-exported or re-packaged and re-exported, the export 
limits shall be increased by the quantity of product re-exported. Such 
increase will be applicable to the Relevant Period corresponding to the 
time of such re-export. Such increase will be applied only after the 
Department receives, and has the opportunity to verify, evidence 
demonstrating original importation, any re-packaging, and subsequent 
exportation. The re-exported material must be identical to the imported 
material.
    G. Export Licenses for a given Relevant Period may not be issued 
after the expiration of the Relevant Period, except that Export 
Licenses not so issued may be issued during the first three months of 
the following Relevant Period, up to a maximum of 15 percent of the 
export limit for that following Relevant Period. Such ``carried-over'' 
quota shall be counted against the export limits applicable to the 
previous Relevant Period.
    Export Licenses for up to 15 percent of the export limits for a 
subsequent Relevant Period may be issued as early as 45 days prior to 
the beginning of the subsequent Relevant Period. Such ``carried-back'' 
quota shall be counted against the export limits applicable to the 
following Relevant Period.
    H. For the first 90 days after the effective date of this 
Agreement, CTL plate shall be admitted into the United States with a 
temporary Export License.
    The volume of any such imports will be deducted from the export 
limits applicable to the first Relevant Period. A full reporting of any 
such imports, which must correspond to the United States sales 
information detailed in the Appendix to this Agreement, must be 
submitted to the Department no later than 30 days after the conclusion 
of the 90 day period. This data must be sorted on the basis of date of 
export and must be set forth on a transaction-specific basis.

IV. Reference Price

    A. CTL plate will not be sold below the reference price on the date 
of sale. Each grade of CTL plate shall have its own reference price, 
and all such reference prices shall be calculated in the same manner.
    B. The reference price issued quarterly by the Department shall be 
released by October 1, January 1, April 1, and July 1 of each year and 
shall be effective on November 1, February 1, May 1, and August 1, 
respectively. The reference price for the first Relevant Period is set 
forth in Section IV.C. of this Agreement and shall remain effective 
until revised by the Department pursuant to this paragraph IV.B. Either 
party is entitled to request consultations regarding the calculation of 
reference prices.
    C. The reference price for the first Relevant Period shall be as 
follows:

------------------------------------------------------------------------
        Grade of CTL plate                    Reference price           
------------------------------------------------------------------------
A36..............................  $350.00 per metric ton.              
------------------------------------------------------------------------

    D. For each subsequent Relevant Period, the reference price will be 
adjusted on a quarterly basis to reflect the change in the BLS Producer 
Price Index for carbon steel plate for the most recent three months for 
which data is available preceding the date on which the reference price 
is issued. If the last month of the BLS PPI for carbon steel plate for 
the three-month period preceding the date on which the reference price 
is issued has fallen by more than 2.6 percent from the average of the 
first two months of the quarter, the reference price will be adjusted 
on the basis of the BLS PPI for carbon steel plate for the last month 
of the three-month period.
    E. MOFTEC will ensure that, with respect to merchandise covered by 
each

[[Page 61776]]

Export License, the Chinese unit values of imports of CTL plate into 
the United States will equal or exceed the reference price at 
equivalent points in the transaction chain. The reference price will be 
at a level in the transaction chain as far upstream as possible (i.e., 
F.O.B Chinese ocean port, (excluding Hong Kong)). MOFTEC will ensure 
that contracts and all relevant documentation will be available to the 
Department and will be subject to verification.
    F. CTL plate imported after the effective date of the Agreement, 
exported from the People's Republic of China prior to October 24, 1997 
and sold pursuant to a contract in effect on or before August 31, 1997, 
in which the price to the first unrelated purchaser in the United 
States is fixed at a specific and definite amount with respect to the 
import at issue, shall not be subject to reference price restrictions. 
Consistent with Section III.H, the volume of such imports shall be 
deducted from the export limits.

V. Export License

    A. MOFTEC will restrict the volume of direct and indirect exports 
of CTL plate to the United States by means of annual quota allocations 
and Export Licenses. Export Licenses shall be issued by MOFTEC for all 
direct and indirect exports of CTL plate to the United States in 
accordance with the export limits in section III and the reference 
price in section IV.
    B. Thirty days following the annual allocation of quota rights for 
any Relevant Period, MOFTEC shall provide to the Department a written 
report identifying each quota recipient and the volume of quota which 
each recipient has been accorded (``report of quota allocation 
results''). MOFTEC may reallocate the volume of quota among quota 
recipients without prior approval from the Department, but must inform 
the Department in writing within thirty days of such reallocation.
    C. Before it issues an Export License, MOFTEC will ensure that the 
Relevant Period's export limit is not exceeded and that the price for 
the CTL plate is at or above the reference price on the date of sale. 
The quantity specified on each export license may vary up to ten 
percent above or below the quantity actually shipped under that 
license. MOFTEC, however, will ensure that the total amount of CTL 
plate shipped under such licenses does not exceed the export limit for 
the Relevant Period.
    D. MOFTEC shall take action, including the imposition of penalties, 
as may be necessary to make effective the obligations resulting from 
the price restrictions, export limits, and Export Licenses. MOFTEC will 
inform the Department, in writing, of any violations concerning the 
price restrictions, export limits, or Export Licenses which come to its 
attention and the action taken with respect thereto.
    The Department will inform MOFTEC in writing of violations 
concerning the price restrictions, export limits, and/or Export 
Licenses which come to its attention and the action taken with respect 
thereto.
    E. Export Licenses will be issued sequentially, endorsed against 
the export limit for the Relevant Period, and will reference the report 
of quota allocation results for the appropriate Relevant Period.
    F. Export Licenses must be issued no earlier than 90 days before 
the day on which the merchandise is accepted by a transportation 
company, as indicated in the bill-of-lading or a comparable 
transportation document, for export. Export Licenses must contain an 
English language translation.
    G. On and after the effective date of this Agreement, the United 
States shall require presentation of an Export License as a condition 
for entry of CTL plate into the United States. The United States will 
prohibit the entry of any CTL plate not accompanied by an Export 
License.
    H. For purposes of this Agreement, the duration of the validity of 
the Export License will be a period of 180 days.

VI. Implementation

    In order to effectively restrict the volume of exports of CTL plate 
to the United States, MOFTEC agrees to implement the following 
procedures no later than 90 days after the effective date of this 
Agreement.
    A. Establish, through MOFTEC, an export licensing program for all 
exports of CTL plate to, or destined directly or indirectly for 
consumption in, the United States.
    B. Ensure compliance by any official Chinese institution, chamber, 
or other entities authorized by the Government of the People's Republic 
of China, all producers, exporters, brokers, and traders of CTL plate, 
and their affiliated parties, as well as independent trading companies/
resellers utilized by the Chinese producer to make sales to the United 
States, with all procedures established in order to effectuate this 
Agreement.
    C. Collect information from all producers, exporters, brokers, and 
traders of the CTL plate to the United States, and their affiliated 
parties; as well as independent trading companies/resellers utilized by 
the Chinese producer, on the sale of the CTL plate, and report such 
information pursuant to Section VIII(A) of this Agreement.
    D. Prohibit, by law, direct and indirect exports to the United 
States of CTL plate except under Export Licenses issued pursuant to 
Section V.A and impose strict sanctions, such as penalties or 
prohibition from participation in the export limits allowed by the 
Agreement, in the event that any Chinese or Chinese-affiliated party 
does not comply in full with all terms of the Agreement.
    E. Require that purchasers agree: not to circumvent this Agreement; 
to report to MOFTEC any subsequent arrangement(s) entered into for the 
sale, exchange, or loan to a person or entity in the United States of 
CTL plate purchased from the People's Republic of China; and to ensure 
that these same provisions are included in any subsequent contracts 
involving CTL plate purchased from the People's Republic of China.
    F. Prohibit direct and indirect exports to the United States of CTL 
plate which is not die-stamped with the mark of the producing mill and 
which is not marked with the People's Republic of China as the country 
of origin.

VII. Anticircumvention

    A. MOFTEC will take all appropriate measures under Chinese law to 
prevent circumvention of this Agreement. It shall respond promptly to 
conduct an inquiry into any and all allegations of circumvention, 
including allegations raised by the Department, and shall complete such 
inquiries in a timely manner (normally within 45 days). MOFTEC shall 
notify the Department, in writing, of the results of its inquiries 
within ten days of the conclusion of such inquiries. Within 15 days of 
a request from the Department, MOFTEC shall share with the Department 
all information received or collected by MOFTEC regarding its 
inquiries, its analysis of such information and the results of such 
inquiries. MOFTEC will require all exporters of CTL plate to include a 
provision in their contracts for sales to countries other than the 
United States that the CTL plate sold through such contracts cannot be 
re-exported, transhipped, or swapped to the United States, or otherwise 
used to circumvent the export limits of this Agreement. MOFTEC will 
also establish appropriate mechanisms to enforce this requirement.
    B. MOFTEC shall advise within one month after the effective date of 
this Agreement that all contracts for sales of CTL plate to third 
countries by Chinese

[[Page 61777]]

producers/exporters shall include a clause which stipulates the 
following: that in the event that their customer sells the merchandise 
to another trading company it must provide the identity of the 
subsequent trading company to the Government of the People's Republic 
of China.
    Given the critical need to prevent circumvention, both Governments 
agree to share information to the greatest extent their national 
legislation will allow. Therefore, MOFTEC agrees to use its maximum 
efforts to provide transaction specific data for all third country 
sales to the final end-user.
    C. If, in an inquiry pursuant to paragraph A, MOFTEC determines 
that a Chinese company has participated in a transaction that resulted 
in circumvention of the export limits of this Agreement, then MOFTEC 
shall impose penalties on such company including, but not limited to, 
denial of access to the CTL plate quota. Additionally, MOFTEC shall 
deduct an amount of CTL plate equivalent to the amount involved in such 
circumvention from the export limit and shall immediately notify the 
Department, in writing, of the amount deducted. If sufficient tonnage 
is not available in the current Relevant Period, then the remaining 
amount necessary shall be deducted from the subsequent Relevant Period.
    D. If MOFTEC determines that a company from a third country has 
circumvented the Agreement and the parties agree that no Chinese entity 
participated in or had knowledge of such activities, then the parties 
shall hold consultations for the purpose of sharing evidence regarding 
such circumvention and reaching mutual agreement on the appropriate 
steps to be taken to eliminate such circumvention, such as MOFTEC 
prohibiting sales of Chinese CTL plate to the company responsible or 
reducing CTL plate exports to the country in question. If the parties 
are unable to reach a mutual agreement within 45 days, then the 
Department may take appropriate action, such as deducting the amount of 
CTL plate involved in such circumvention from the export limit, or 
instructing Customs to deny entry to any CTL plate sold by the entity 
found to be circumventing the Agreement, taking into account all 
relevant factors. Before taking such action, the Department will notify 
MOFTEC of the facts and the reasons constituting the basis for the 
Department's intended action and will afford MOFTEC ten days in which 
to comment.
    E. If the Department determines that a Chinese or third country 
entity participated in circumvention, the parties shall hold 
consultations for the purpose of sharing evidence regarding such 
circumvention and reaching mutual agreement on an appropriate 
resolution of the problem. If the parties are unable to reach mutual 
agreement within 45 days, the Department may take appropriate action, 
such as deducting the amount of CTL plate involved in such 
circumvention from the export limit, or instructing Customs to deny 
entry to any CTL plate sold by the entity found to be circumventing the 
Agreement. Before taking such action, the Department will notify MOFTEC 
of the facts and reasons constituting the basis for the Department's 
intended action and will afford MOFTEC ten days in which to comment.
    F. The Department shall direct the U.S. Customs Service to require 
all importers of CTL plate into the United States, regardless of stated 
country of origin, to submit at the time of entry a written statement 
certifying that the CTL plate being imported was not obtained under any 
arrangement, swap, or other exchange which would result in the 
circumvention of the export limits established by this Agreement. Where 
the Department has reason to believe that such a certification has been 
made falsely, the Department will refer the matter to Customs or the 
Department of Justice for further action.
    G. Given the fungibility of the world steel market, the Department 
will take the following factors into account in distinguishing normal 
steel market arrangements, swaps, or other exchanges from arrangements, 
swaps, or other exchanges which would result in the circumvention of 
the export limits established by this Agreement:
    1. Existence of any verbal or written arrangements which would 
result in the circumvention of the export limits established by this 
Agreement;
    2. Existence of any arrangement as defined in Section III.E that 
was not reported to the Department pursuant to Section VIII.A;
    3. Existence and function of any subsidiaries or affiliates of the 
parties involved;
    4. Existence and function of any historical and/or traditional 
trading patterns among the parties involved;
    5. Deviations (and reasons for deviation) from the above patterns, 
including physical conditions of relevant steel producing facilities;
    6. Existence of any payments unaccounted for by previous or 
subsequent deliveries, or any payments to one party for merchandise 
delivered or swapped by another party;
    7. Sequence and timing of the arrangements; and
    8. Any other information relevant to the transaction or 
circumstances.
    H. ``Swaps'' include, but are not limited to:
    Ownership swaps--involve the exchange of ownership of any type of 
CTL plate product(s), without physical transfer. These may include 
exchange of ownership of CTL plate products in different countries, so 
that the parties obtain ownership of products located in different 
countries; or exchange of ownership of CTL plate products produced in 
different countries, so that the parties obtain ownership of products 
of different national origin.
    Flag swaps--involve the exchange of indicia of national origin of 
CTL plate products, without any exchange of ownership.
    Displacement swaps--involve the sale or delivery of any type of 
steel product(s) from the People's Republic of China to an intermediary 
country (or countries) which can be shown to have resulted in the 
ultimate delivery or sale into the United States of displaced CTL plate 
products of any type, regardless of the sequence of the transaction. 
Two years after the effective date of this Agreement, this provision 
with regard to displacement swaps will cease to exist unless the 
Department determines that there has been evidence of displacement 
swaps during the preceding two years.
    I. The Department will enter its determinations regarding 
circumvention into the record of the Agreement.

VIII. Monitoring

    MOFTEC will provide to the Department such information as is 
necessary and appropriate to monitor the implementation of and 
compliance with the terms of this Agreement. The Department shall 
provide semi-annual reports to MOFTEC indicating the volume of imports 
of the CTL plate to the United States, together with such additional 
information as is necessary and appropriate to monitor the 
implementation of this Agreement.

A. Reporting of Data

    Beginning on the effective date of this Agreement, MOFTEC shall 
collect and provide to the Department the information set forth, in the 
agreed format, in the Appendix to this Agreement. All such information 
will be provided to the Department by May 30 of each year for exports 
and aggregate home market sales during the period November 1 through 
April 30, and by November 30 of each year for exports during the period 
May 1 through October 31, or within 90 days of a

[[Page 61778]]

request made by the Department. MOFTEC agrees to provide transaction-
specific information for home market sales upon demand, within 30 days 
of a request made by the Department. Such information will be subject 
to the verification provision identified in Section VIII.C of this 
Agreement. MOFTEC agrees to allow sales of CTL plate only through those 
brokers and trading companies which permit verification and full 
reporting of data. The Department may disregard any information 
submitted after the deadlines set forth in this Section or any 
information which it is unable to verify to its satisfaction.
    Aggregate quantity and value of exports by HTS category to each 
third country will be provided to the Department by July 30 of each 
year for exports during the period November 1 through April 30 and by 
January 31 of each year for exports during period May 1 through October 
31.
    Transaction-specific data for all third country sales will also be 
reported on the schedule provided above in the format provided in the 
Appendix. However, if the Department concludes that transaction-
specific data is not necessary for a given period, it will notify 
MOFTEC at least 90 days before the reporting deadline that transaction-
specific sales data need not be reported. If the Department determines 
that such data is relevant in connection with Section VII and requests 
information on transactions for one or more third countries during a 
period for which the Department waived complete reporting, MOFTEC will 
provide the data listed in the Appendix for those specific transactions 
within 90 days of the request.
    Both governments recognize that effective monitoring of this 
Agreement may require that MOFTEC provide information additional to 
that which is identified above. Accordingly, the Department may 
establish additional reporting requirements, as appropriate, during the 
course of this Agreement. The Department shall provide notice to MOFTEC 
of any additional reporting requirements no later than 45 days prior to 
the period covered by such reporting requirements unless a shorter 
notice period is mutually agreed.

B. Other Sources for Monitoring

    The Department will review publicly-available data as well as 
Customs Form 7501 entry summaries and other official import data from 
the Bureau of the Census, on a monthly basis, to determine whether 
there have been imports that are inconsistent with the provisions of 
this Agreement.
    The Department will monitor Bureau of the Census IM-115 
computerized records, which include the quantity and value of each 
entry. Because these records do not provide other specific entry 
information, such as the identity of the producer/exporter which may be 
responsible for such sales, the Department may request the U.S. Customs 
Service to provide such information. The Department may request other 
additional documentation from the U.S. Customs Service.
    The Department may also request the U.S. Customs Service to direct 
ports of entry to forward an Antidumping Report of Importations for 
entries of the CTL plate during the period this Agreement is in effect.

C. Verification

    MOFTEC will permit full verification of all information affiliated 
to the administration of this Agreement, including verification of the 
Chinese producer and the trading companies/brokers utilized in making 
sales/shipments to the United States, on an annual basis or more 
frequently, as the Department deems necessary to ensure that the 
Government of the People's Republic of China is in full compliance with 
the terms of the Agreement. Such verifications may take place in 
association with scheduled consultations whenever possible.

IX. Disclosure and Comment

    A. The Department shall make available to representatives of each 
party to the proceeding, under appropriately-drawn administrative 
protective orders consistent with the Department's Regulations, 
business proprietary information submitted to the Department semi-
annually or upon request, and in any administrative review of this 
Agreement.
    B. Not later than 30 days after the date of disclosure under 
Section VII.A, the parties to the proceeding may submit written 
comments to the Department, not to exceed 30 pages.
    C. During the anniversary month of this Agreement, each party to 
the proceeding may request a hearing on issues raised during the 
preceding Relevant Period. If such a hearing is requested, it will be 
conducted in accordance with Section 751 of the Act (19 U.S.C. 1675) 
and applicable regulations.

X. Consultations

    MOFTEC and the Department shall hold consultations regarding 
matters concerning the implementation, operation, including the 
calculation of reference prices, and/or enforcement of this Agreement. 
Such consultations will be held each year during the anniversary month 
of this Agreement. Additional consultations may be held at any other 
time upon request of either MOFTEC or the Department.

XI. Violations of the Agreement

A. Violation

    ``Violation'' means noncompliance with the terms of this Agreement 
caused by an act or omission, in accordance with Section 353.19 of the 
Department's Regulations.
    Each party will inform the other party of any violations of the 
Agreement which come to their attention and the action taken with 
respect thereto.
    Exports in excess of the export limits set out in this Agreement 
shall not be considered a violation of the Agreement or an indication 
that the Agreement no longer meets the requirements of U.S. laws and 
regulations where such exports are inconsequential, inadvertent, and 
are applied against the export limits of the following Relevant Period.
    Prior to making a determination of an alleged violation, the 
Department will engage in emergency consultations. Such consultations 
shall begin no later than 14 days from the day of request and shall 
provide for full review, but in no event will exceed 30 days. After 
consultations, the Department will provide MOFTEC 20 days within which 
to provide comments. The Department will make a determination within 30 
days of the date established for submission of comments by MOFTEC.

B. Appropriate Action

    If the Department determines that this Agreement is being or has 
been violated, the Department will take such action as it determines is 
appropriate under 734(i) of the Act and Section 353.19 of the 
Department's Regulations.

XII. Duration

    The export limits provided for in Section III of this Agreement 
shall remain in force from the effective date of this Agreement through 
November 1, 2002.
    The Department will, upon receiving a proper request no later than 
November 1, 2001, conduct an administrative review under Section 751 of 
the Act. The Department expects to terminate this Agreement and the 
underlying investigation no later than November 1, 2002, provided that 
the People's Republic of China has not been found to have violated the 
Agreement in any substantive manner. Such review and termination shall 
be conducted

[[Page 61779]]

consistent with section 353.25 of the Department's Regulations.
    The Government of the People's Republic of China may terminate this 
Agreement at any time upon notice to the Department. Termination shall 
be effective 60 days after such notice is given to the Department. Upon 
termination at the request of MOFTEC, the provisions of Section 734(i) 
of the Act shall apply.

XIII. Conditions

    The Department recognizes that it may determine during the life of 
this Agreement that the Chinese CTL plate industry is a market-oriented 
industry, or that the People's Republic of China is a market economy 
country. In either event, the Department may:
    (a) Enter into a new suspension agreement under Section 734(b) or 
734(c) of the Act; or
    (b) If the investigation was not completed under section 353.18(i) 
of the Department's regulations, afford MOFTEC a full opportunity to 
submit new information, and take such information into account in 
reaching its final determination--provided that all parties to the 
proceeding are given a full opportunity to submit factual information 
and argument in rebuttal; or
    (c) If the investigation was completed under section 353.18(i), 
consider a request made no later than 30 days after termination of the 
Agreement to conduct a changed circumstances review under Section 
751(b).

XIV. Other Provisions

    A. In entering into this Agreement, MOFTEC does not admit that any 
sales of CTL plate subject to this Agreement have been made at less 
than fair value or that such sales have materially injured, or 
threatened material injury to, an industry or industries in the United 
States.
    B. The Department finds that this Agreement is in the public 
interest; that effective monitoring of this Agreement by the United 
States is practicable; and that this Agreement will prevent the 
suppression or undercutting of price levels of United States domestic 
CTL plate products by imports of the merchandise subject to this 
Agreement.
    C. The Department does not consider any of the obligations 
concerning exports of CTL plate to the United States undertaken by 
MOFTEC pursuant to this Agreement relevant to the question of whether 
firms in the underlying investigation would be entitled to separate 
rates, should the investigation be resumed for any reason.
    D. The English language version of this Agreement shall be 
controlling.
    E. For all purposes hereunder, the Department and the signatory 
Government of the People's Republic of China shall be represented by, 
and all communications and notices shall be given and addressed to:

U.S. Department of Commerce, Assistant Secretary for Import 
Administration, International Trade Administration, Washington, D.C. 
20230
Government of the People's Republic of China, Ministry of Foreign Trade 
and Economic Cooperation of the People's Republic of China, Beijing 
100731

XV. Effective Date

    The effective date of this Agreement suspending the antidumping 
investigation on CTL plate from the People's Republic of China shall be 
October 24, 1997.

    Signed on this 24th day of October, 1997.

    For the U.S. Department of Commerce.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
    For the Government of the People's Republic of China.
Shi Jianxin,
Minister Counsellor, Embassy of the People's Republic of China.

Appendix

    In accordance with the established format, MOFTEC shall collect 
and provide to the Department all information necessary to ensure 
compliance with this Agreement. This information will be provided to 
the Department on a semi-annual basis, or upon request.
    MOFTEC will collect and maintain data on exports to the United 
States, and to countries other than the United States, on a 
continuous basis and provide the prescribed information to the 
Department.
    MOFTEC will report the aggregate volume and value of home market 
sales of CTL plate for those companies which exported to the United 
States in the same reporting period as specified in Section VIII.A. 
For these companies, MOFTEC will report the aggregate home market 
sales of CTL plate for the grade listed in Section IV. C. of the 
Agreement. Upon demand, MOFTEC will provide the information 
requested in the ``Home Market Sales'' section.
    MOFTEC will provide a narrative explanation to substantiate all 
data collected in accordance with the following formats.

Report of Inventories

    Report, by location, the inventories of CTL plate held by a 
Chinese legal entity in the United States and imported into the 
United States during the period November 5, 1996, through the 
effective date of the Agreement.
    1. Quantity: Indicate original units of measure (metric tons).
    2. Location: Identify where the inventory is currently being 
held. Provide the name and address for the location.
    3. Titled Party: Name and address of party who legally has 
beneficial title to the merchandise.
    4. Contract Registration Number: Indicate the number(s) relating 
to each entry now being held in inventory.
    5. Export License Number: Indicate the number(s) relating to 
each sale or entry.
    6. Date of Original Export: Date the Export License is issued.
    7. Date of Entry: Date the merchandise entered the United States 
or the date book transfer took place.
    8. Original Importer: Name and address.
    9. Original Exporter: Name and address.
    10. Complete Description of Merchandise: Include heat numbers, 
HTS number, physical description, ASTM specification, and other 
available information.

Exports to the United States

    MOFTEC will provide all Export Licenses issued to Chinese 
entities which shall contain the following information with the 
exception that information requested in item #9, date of entry, item 
#10, Importer of Record; item #16, final destination, item #17, 
other, may be omitted if unknown to MOFTEC and the licensee.
    1. Export License number(s): Indicate the number(s) relating to 
each sale and/or entry.
    2. Complete Description of Merchandise: Include the 10 digit HTS 
category, and the ASTM or equivalent grade.
    3. Quantity: Indicate in metric tons.
    4. F.O.B. Sales Value: Indicate currency used.
    5. Unit Price: Indicate per metric ton.
    6. Date of Sale: The date all essential terms of order (i.e., 
price and quantity) become fixed.
    7. Sales Order Number (s): Indicate the specification number/
order number relating to each sale and/or shipment.
    8. Date of Export: Date the export license is issued.
    9. Date of Entry: Date the merchandise entered the United States 
or the date book transfer took place.
    10. Importer of Record: Name and address.
    11. Trading Company: Name and address of trading company 
involved in sale.
    12. Customer: Name and address of the first unaffiliated party 
purchasing from the Chinese producer/exporter.
    13. Customer Relationship: Indicate whether the customer is 
affiliated or unaffiliated with the Chinese producer/exporter.
    14. Quota Allocated to Exporter: Indicate the total amount of 
quota allocated to the individual Chinese producer/exporter during 
the Relevant Period.
    15. Quota Remaining: Indicate the remaining quota available to 
the individual Chinese producer/exporter during the Relevant Period.
    16. Final Destination: Indicate the complete name and address of 
the end-user.
    17. Other: Indicate the identity of any party(ies) in the 
transaction chain between the customer and the final destination/end 
user.

Customer Certification

    MOFTEC shall ensure that all customers of the CTL plate shall 
certify that the

[[Page 61780]]

merchandise imported into the United States pursuant to this 
Agreement shall not be loaned or swapped.

Mill Certification

    MOFTEC shall ensure that all shipments of CTL plate exported to 
the United States pursuant to this Agreement shall be accompanied by 
a copy of the original mill certification, which includes the heat 
number(s).

Sales to Countries Other Than the United States

    Pursuant to Section VIII, paragraph A, MOFTEC will provide 
country-specific volume and value information for all exports of CTL 
plate to third countries. The following information shall be 
provided except that information requested in item #6, importer of 
record, and item #10, other, may be omitted if unknown to MOFTEC and 
the licensee.
    1. Customs Export Declaration Number: Indicate the number(s) 
related to each shipment.
    2. Quantity: Indicate in original units of measure sold and/or 
entered in metric tons.
    3. Date of Sale: The date all essential terms of the order 
(i.e., price and quantity) become fixed.
    4. Sales Order Number(s): Indicate the number(s) relating to 
each sale and/or entry.
    5. Date of Export: Date of Export Certification is issued.
    6. Importer of Record: Name and address.
    7. Customer: Name and address of the first unaffiliated party 
purchasing from the Chinese producer/exporter.
    8. Customer Relationship: Indicate whether the customer is 
affiliated or unaffiliated.
    9. Name of Vessel: Identify the name of vessel for each shipment 
to third countries.
    10. Other: The identity of any subsequent trading company in the 
transaction chain pursuant to Section VII.B.
    11. Estimated Date of Entry: Date the merchandise entered the 
third country or the date a book transfer took place.

Home Market Sales

    Pursuant to Section VIII.A., MOFTEC will provide transaction-
specific home market information for sales of subject merchandise, 
upon demand. The following information shall be provided, except 
that information requested in item #6 may be omitted if unknown to 
MOFTEC and the licensee.
    1. Quantity: Indicate in original units of measure sold and/or 
entered in metric tons.
    2. Date of Sale: The date all essential terms of the order 
(i.e., price and quantity become fixed.
    3. Sales Order Number(s): Indicate the number(s) relating to 
each sale and/or entry.
    4. Customer: Name and address of the first affiliated party 
purchasing from the Chinese exporter.
    5. Customer Relationship: Indicate whether the customer is 
affiliated or unaffiliated.
    6. Other: The identity of any party(ies) in the transaction 
chain between the customer and the final destination.

[FR Doc. 97-30394 Filed 11-18-97; 8:45 am]
BILLING CODE 3510-DS-P