[Federal Register Volume 64, Number 79 (Monday, April 26, 1999)]
[Notices]
[Pages 20251-20253]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-10418]


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DEPARTMENT OF COMMERCE

International Trade Administration
[A-588-847]


Preliminary Determination of Critical Circumstances: Certain Cut-
To-Length Carbon-Quality Steel Plate From Japan

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

EFFECTIVE DATE: April 26, 1999.

FOR FURTHER INFORMATION CONTACT: Wendy J. Frankel at (202) 482-5849 
(Japan), Irene Darzenta Tzafolias at (202) 482-0922 (Indonesia and the 
Former Yugoslav Republic of Macedonia ( FYR Macedonia)), and James 
Maeder at (202) 482-3330 (Czech Republic), Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230.

PRELIMINARY DETERMINATION OF CRITICAL CIRCUMSTANCES:

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions effective January 1, 1995, the effective 
date of the amendments made to the Tariff Act of 1930 (the Act) by the 
Uruguay Round Agreements Act (URAA). In addition, unless otherwise 
indicated, all citations to the Department's regulations are references 
to the provisions codified at 19 CFR Part 351 (1998).

Critical Circumstances

    In antidumping (AD) petitions filed on February 16, 1999, 
petitioners alleged that certain cut-to-length plate from eight 
countries (the Czech Republic, Indonesia, Japan, FYR Macedonia, France, 
India, Indonesia, and the Republic of Korea) is being dumped in the 
United States and that there is a reasonable basis to believe or 
suspect that critical circumstances exist with respect to imports from 
the Czech Republic, Indonesia, Japan, and FYR Macedonia. On March 8, 
1999, the Department of Commerce (the Department) initiated 
investigations to determine whether imports of certain cut-to-length 
carbon-quality steel plate (CTL plate) from the eight countries subject 
to AD petitions are being, or are likely to be, sold in the United 
States at less than fair value (LTFV) (64 FR 12959, March 16, 1999). At 
that time we also initiated investigations to determine whether 
critical circumstances exist with respect to imports of CTL plate from 
the Czech Republic, Indonesia, Japan, and FYR Macedonia.
    On April 2, 1999, the International Trade Commission (ITC) 
determined that imports of CTL plate from the Czech Republic and FYR 
Macedonia are negligible and, therefore, terminated the investigations 
regarding these countries. Thus, the issue of critical circumstances 
with regard to imports from these countries is moot. With respect to 
imports from Indonesia and Japan, however, the ITC determined that 
there is a reasonable indication of material injury to the domestic 
industry from imports of CTL plate from Japan.
    In accordance with 19 CFR 351.206(c)(2)(i), because petitioners 
submitted a critical circumstances allegation at least 20 days before 
the scheduled date of the preliminary determination, the Department 
must issue a preliminary critical circumstances determination not later 
than the date of the preliminary determination. In a policy bulletin 
issued on October 8, 1998, the Department stated that it may issue a 
preliminary critical circumstances determination prior to the date of 
the preliminary determination of dumping, assuming adequate evidence of 
critical circumstances is available (See Change in Policy Regarding 
Timing of Issuance of Critical Circumstances Determinations, 63 FR 
55364). In accordance with this policy, at this time we are issuing a 
preliminary critical circumstances decision in the investigation of 
imports of CTL plate from Japan for the reasons discussed below and in 
the April 8,

[[Page 20252]]

1999, Memorandum from Holly A. Kuga to Bernard Carreau regarding: 
Antidumping Duty Investigation of Certain Cut-To-Length Carbon Quality 
Steel Plate from Japan--Preliminary Determination of Critical 
Circumstances (Critical Circumstances Preliminary Determination Memo). 
However, with respect to imports of CTL plate from Indonesia, at this 
time, there is insufficient evidence on the record that importers, 
exporters, or producers knew or should have known, at some time prior 
to the filing of the petition, that a proceeding concerning Indonesia 
was likely. Consequently, the appropriate comparison period for 
determining whether imports have been massive would begin at the time 
of filing of the petition. Because data for this period are not yet 
available, the Department will make its preliminary critical 
circumstances finding by the date of its preliminary determination 
regarding dumping.
    Section 733(e)(1) of the Act provides that the Department will 
determine that critical circumstances exist if there is a reasonable 
basis to believe or suspect that: (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 knew 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.

History of Dumping and Importer Knowledge

    We are not aware of any existing antidumping order in any country 
on CTL plate from Japan. However, on May 30, 1978, the Department of 
the Treasury published in the Federal Register (T.D. 78-150, 43 FR 
22937) a dumping finding on carbon steel plate from Japan, which was 
revoked based on changed circumstances on April 17, 1986 (51 FR 13039). 
Thus there has been a history dumping of carbon steel plate from Japan.
    Moreover, we examined whether there was importer knowledge. In 
determining whether there is a reasonable basis to believe or suspect 
that an importer knew or should have known that the exporter was 
selling CTL plate at LTFV and thereby causing material injury, the 
Department must rely on the facts before it at the time the 
determination is made. The Department normally considers margins of 25 
percent or more and a preliminary ITC determination of material injury 
sufficient to impute knowledge of dumping and the likelihood of 
resultant material injury.
    In the present case, since we have not yet made a preliminary 
finding of dumping, the most reasonable source of information 
concerning knowledge of dumping is the petition itself. In the 
petition, petitioners calculated estimated dumping margins for several 
Japanese producers, the levels of which ranged from 55 to 59 percent, 
all exceeding the 25 percent threshold. Therefore, we preliminarily 
determine that importers knew or should have known that the exporters 
were dumping the subject merchandise.
    As to the knowledge of likely injury from such dumped imports, the 
ITC preliminarily found material injury to the domestic industry due to 
imports of CTL plate from Japan. Therefore, with respect to Japan, we 
preliminarily find that there is a reasonable basis to believe or 
suspect that importers knew or should have known that material injury 
from the dumped merchandise was likely.

Massive Imports

    In determining whether there are ``massive imports'' over a 
``relatively short time period,'' the Department ordinarily bases its 
analysis on import data for at least the three months preceding (the 
``base period'') and following (the ``comparison period'') the filing 
of the petition. Imports normally will be considered massive when 
imports during the comparison period have increased by 15 percent or 
more compared to imports during the base period. However, as stated in 
the Department's regulations, at section 351.206(i), if the Secretary 
finds that importers, exporters, or producers had reason to believe, at 
some time prior to the beginning of the proceeding, that a proceeding 
was likely, then the Secretary may consider a time period of not less 
than three months from that earlier time.
    In this case, petitioners argue that importers, exporters, or 
producers of Japanese CTL plate had reason to believe that an 
antidumping proceeding was likely before the filing of the petition. 
The Department examined whether conditions in the industry and 
published reports and statements provide a basis for inferring 
knowledge that a proceeding was likely. For Japan, we found that such 
press reports, particularly throughout the summer of 1998, were 
sufficient to establish that by the end of August 1998, importers, 
exporters, or producers knew or should have known that a proceeding was 
likely concerning CTL plate from Japan. (See discussion in the Critical 
Circumstances Preliminary Determination Memo). Accordingly, we examined 
the increase in import volumes from September 1998 through January 1999 
as compared to April 1998 through August 1998 and found that imports of 
CTL plate from Japan increased by more than 175 percent (see Attachment 
II to the Critical Circumstances Preliminary Determination Memo). 
Therefore, pursuant to section 733(e) of the Act and section 351.206(h) 
of the Department's regulations, we preliminarily determine that there 
have been massive imports of CTL plate from Japan over a relatively 
short time.

Conclusion

    We preliminarily determine that there is a reasonable basis to 
believe or suspect that critical circumstances exist for imports of CTL 
plate from Japan.

Suspension of Liquidation

    In accordance with section 733(e)(2) of the Act, upon issuance of 
an affirmative preliminary determination of sales at LTFV in the Japan 
investigation, the Department will direct the U.S. Customs Service to 
suspend liquidation of all entries of CTL plate from Japan, that are 
entered, or withdrawn from warehouse, for consumption on or after 90 
days prior to the date of publication in the Federal Register of our 
preliminary determination of sales at LTFV. The Customs Service shall 
require a cash deposit or posting of a bond equal to the estimated 
preliminary dumping margins reflected in the preliminary determination 
of sales at LTFV published in the Federal Register. This suspension of 
liquidation will remain in effect until further notice.

Final Critical Circumstances Determination

    We will make a final determination concerning critical 
circumstances for Japan when we make our final determination regarding 
sales at LTFV in that investigation, which will be 75 days (unless 
extended) after the preliminary determination regarding sales at LTFV.

ITC Notification

    In accordance with section 733(f) of the Act, we have notified the 
ITC of our determination. This notice is published pursuant to section 
777(i) of the Act.


[[Page 20253]]


    Dated: April 9, 1999.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 99-10418 Filed 4-23-99; 8:45 am]
BILLING CODE 3510-DS-P