[Federal Register Volume 64, Number 214 (Friday, November 5, 1999)]
[Notices]
[Pages 60410-60417]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29064]



[[Page 60410]]

-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration
[A-357-811, A-588-849, A-549-814]


Notice of Preliminary Determinations of Sales at Less Than Fair 
Value: Certain Cold-Rolled Flat-Rolled Carbon-Quality Steel Products 
From Argentina, Japan and Thailand

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

EFFECTIVE DATE: November 5, 1999.

FOR FURTHER INFORMATION CONTACT: LaVonne Jackson at (202) 482-3003 or 
Gabriel Adler at (202) 482-1442, Import Administration, Room 1870, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230.

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 Department of Commerce (Department) 
regulations refer to the regulations codified at 19 CFR part 351 (April 
1999).

Preliminary Determinations

    We preliminarily determine that cold-rolled flat-rolled carbon-
quality steel products (``cold-rolled steel products'') from Argentina, 
Japan, and Thailand are being sold, or are likely to be sold, in the 
United States at less than fair value (``LTFV''), as provided in 
section 733 of the Act. The estimated margins of sales at LTFV are 
shown in the Suspension of Liquidation section of this notice.

Case History

    These investigations were initiated on June 21, 1999. See 
Initiation of Antidumping Duty Investigations: Certain Cold-Rolled 
Flat-Rolled Carbon-Quality Steel Products from Argentina, Brazil, the 
People's Republic of China, Indonesia, Japan, the Russian Federation, 
Slovakia, South Africa, Taiwan, Thailand, Turkey, and Venezuela 
(``Initiation Notice''), 64 FR 34194 (June 25, 1999). Since the 
initiation of the investigations, the following events occurred:
    On June 22, 1999, the Department issued Section A antidumping 
questionnaires to all known producers/exporters of subject merchandise, 
including those named in the petitions. The Department received 
responses to this questionnaire from Siderar Limited (``Siderar''), in 
the Argentina proceeding, and Nippon Steel Corporation (``NSC''), 
Kawasaki Steel Corporation (``KSC''), NKK Corporation (``NKK'') and 
Sumitomo Metals Industries, Ltd. (``Sumitomo'') in the Japan 
proceeding. The Department did not receive responses to the 
questionnaire from the following companies: Kobe Steel Ltd. (``Kobe''), 
and Nisshin Steel Co., Ltd. (``Nisshin) in the Japan proceeding, or 
TCRSSC/Sahaviriya (the sole producer and exporter of subject 
merchandise from Thailand during the POI 1), in the Thailand 
proceeding.
---------------------------------------------------------------------------

    \1\ On July 8, 1999, the Royal Thai Embassy in Washington, DC 
confirmed that Thai Cold Rolled Steel and Sheet Company 
(``TCRSSC''), an affiliate of Sahaviriya Steel Industries Public 
Co., Ltd., collectively ``TCRSSC/Sahaviriya'', was the only Thai 
exporter of subject merchandise to the United States during the POI. 
See Memorandum to the File: Conversation with Royal Thai Embassy 
(``Conversation with Thai Embassy''), (July 8, 1999).
---------------------------------------------------------------------------

    On July 9, 1999, the Department selected the following companies as 
mandatory respondents in these investigations: Siderar (the sole 
Argentine producer of subject merchandise) in the Argentina proceeding; 
NSC and KSC in the Japan proceeding; and TCRSSC/Sahaviriya in the 
Thailand proceeding. See Respondent Selection, below. On July 9, 1999, 
the Department issued Section B, C, and D antidumping questionnaires to 
each of the selected respondents.
    On July 16, 1999, the United States International Trade Commission 
(ITC) preliminarily determined that there is a reasonable indication 
that imports of the products subject to each of these antidumping 
investigations are materially injuring the United States industry. See 
Certain Cold-Rolled Steel Products from Argentina, Brazil, China, 
Indonesia, Japan, Russia, Slovakia, South Africa, Taiwan, Thailand, 
Turkey and Venezuela, 64 FR 41458 (July 30, 1999).
    In August 1999, the mandatory respondent in the Thailand case 
notified the Department that it would not be responding at all to the 
Department's questionnaire, and all the mandatory respondents in the 
Argentina and Japan proceedings notified the Department that they would 
not be responding to the Section B, C, and D questionnaires.

Period of Investigations

    The period of the investigations (POI) is April 1, 1998, through 
March 31, 1999. This period corresponds to the four most recent fiscal 
quarters prior to the month of the filing of the petition (i.e., June 
1999).

Scope of Investigations

    For purposes of this investigation, the products covered are 
certain cold-rolled (cold-reduced) flat-rolled carbon-quality steel 
products, neither clad, plated, nor coated with metal, but whether or 
not annealed, painted, varnished, or coated with plastics or other non-
metallic substances, both in coils, 0.5 inch wide or wider, (whether or 
not in successively superimposed layers and/or otherwise coiled, such 
as spirally oscillated coils), and also in straight lengths, which, if 
less than 4.75 mm in thickness having a width that is 0.5 inch or 
greater and that measures at least 10 times the thickness; or, if of a 
thickness of 4.75 mm or more, having a width exceeding 150 mm and 
measuring at least twice the thickness. The products described above 
may be rectangular, square, circular or other shape and include 
products of either rectangular or non-rectangular 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 beveled or rounded at the edges.
    Specifically included in this scope are vacuum degassed, fully 
stabilized (commonly referred to as interstitial-free (``IF'')) steels, 
high strength low alloy (``HSLA'') steels, and motor lamination steels. 
IF steels are recognized as low carbon steels with micro-alloying 
levels of elements such as titanium and/or niobium added to stabilize 
carbon and nitrogen elements. HSLA steels are recognized as steels with 
micro-alloying levels of elements such as chromium, copper, niobium, 
titanium, vanadium, and molybdenum. Motor lamination steels contain 
micro-alloying levels of elements such as silicon and aluminum.
    Steel products included in the scope of this investigation, 
regardless of definitions in the Harmonized Tariff Schedules of the 
United States (``HTSUS''), are products in which: (1) Iron 
predominates, by weight, over each of the other contained elements; (2) 
the carbon content is 2 percent or less, by weight, and; (3) none of 
the elements listed below exceeds the quantity, by weight, respectively 
indicated:

1.80 percent of manganese, or
2.25 percent of silicon, or
1.00 percent of copper, or
0.50 percent of aluminum, or
1.25 percent of chromium, or
0.30 percent of cobalt, or
0.40 percent of lead, or
1.25 percent of nickel, or
0.30 percent of tungsten, or
0.10 percent of molybdenum, or
0.10 percent of niobium (also called columbium), or

[[Page 60411]]

0.15 percent of vanadium, or
0.15 percent of zirconium.

    All products that meet the written physical description, and in 
which the chemistry quantities do not exceed any one of the noted 
element levels listed above, are within the scope of this investigation 
unless specifically excluded. The following products, by way of 
example, are outside and/or specifically excluded from the scope of 
this investigation:
     SAE grades (formerly also called AISI grades) above 2300;
     Ball bearing steels, as defined in the HTSUS;
     Tool steels, as defined in the HTSUS;
     Silico-manganese steel, as defined in the HTSUS;
     Silicon-electrical steels, as defined in the HTSUS, that 
are grain-oriented;
     Silicon-electrical steels, as defined in the HTSUS, that 
are not grain-oriented and that have a silicon level exceeding 2.25 
percent;
     All products (proprietary or otherwise) based on an alloy 
ASTM specification (sample specifications: ASTM A506, A507);
     Silicon-electrical steels, as defined in the HTSUS, that 
are not grain-oriented and that have a silicon level less than 2.25 
percent, and
    (a) Fully-processed, with a core loss of less than 0.14 watts/pound 
per mil (.001 inches), or
    (b) Semi-processed, with core loss of less than 0.085 watts/pound 
per mil (.001 inches);
     Certain shadow mask steel, which is aluminum killed cold-
rolled steel coil that is open coil annealed, has an ultra-flat, 
isotropic surface, and which meets the following characteristics:

Thickness: 0.001 to 0.010 inches
Width: 15 to 32 inches

                          Chemical Composition
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Element..........................................  C
Weight %.........................................  < 0.002%
------------------------------------------------------------------------

     Certain flapper valve steel, which is hardened and 
tempered, surface polished, and which meets the following 
characteristics:

Thickness: 1.0 mm
Width:  152.4 mm

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
      Element               C                  Si                 Mn                 P                  S
----------------------------------------------------------------------------------------------------------------
Element            C                  Si                 Mn                 P                  S
Weight %           0.90-1.05          0.15-0.35          0.30-0.50           0.03    0.006
----------------------------------------------------------------------------------------------------------------


                          Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Tensile Strength.............   162 Kgf/mm2
Hardness.....................   475 Vickers hardness number
------------------------------------------------------------------------


                           Physical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Flatness.....................  < 0.2% of nominal strip width
------------------------------------------------------------------------

    Microstructure: Completely free from decarburization. Carbides are 
spheroidal and fine within 1% to 4% (area percentage) and are 
undissolved in the uniform tempered martensite.

                         Non-Metallic Inclusion
------------------------------------------------------------------------
                                                               Area
                                                            percentage
------------------------------------------------------------------------
Sulfide Inclusion.......................................     
                                                                    0.04
Oxide Inclusion.........................................     
                                                                    0.05
------------------------------------------------------------------------

    Compressive Stress: 10 to 40 Kgf/mm2.

                            Surface Roughness
------------------------------------------------------------------------
             Thickness (mm)                   Roughness (m)
------------------------------------------------------------------------
t  0.209.....................  Rz  0.5
0.209 < t  0.310.............  Rz  0.6
0.310 < t  0.440.............  Rz  0.7
0.440 < t  0.560.............  Rz  0.8
0.560 < t...............................  Rz  1.0
------------------------------------------------------------------------

     Certain ultra thin gauge steel strip, which meets the 
following characteristics:

Thickness:  0.100 mm 7%
Width: 100 to 600 mm

[[Page 60412]]



                                                                  Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Element               C                     Mn                    P                     S                     Al                    Fe
Weight %               0.07      0.2--0.5               0.05       0.05       0.07      Balance
--------------------------------------------------------------------------------------------------------------------------------------------------------


                          Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Hardness.......................  Full Hard (Hv 180 minimum)
Total Elongation...............  < 3%
Tensile Strength...............  600 to 850 N/mm \2\
------------------------------------------------------------------------


                           Physical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Surface Finish.................   0.3 micron
Camber (in 2.0 m)..............  < 3.0 mm
Flatness (in 2.0 m)............   0.5 mm
Edge Burr......................  < 0.01 mm greater than thickness
Coil Set (in 1.0 m)............  < 75.0 mm
------------------------------------------------------------------------

     Certain silicon steel, which meets the following 
characteristics:

Thickness: 0.024 inches .0015 inches
Width: 33 to 45.5 inches

                                              Chemical Composition:
----------------------------------------------------------------------------------------------------------------
              Element                     C            Mn           P            S            Si           Al
----------------------------------------------------------------------------------------------------------------
Min. Weight %.....................  ...........  ...........  ...........  ...........         0.65  ...........
Max. Weight %.....................        0.004          0.4         0.09        0.009  ...........          0.4
----------------------------------------------------------------------------------------------------------------


                                              Mechanical Properties
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Hardness                             B 60-75 (AIM 65)
----------------------------------------------------------------------------------------------------------------


                           Physical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Finish......................................  Smooth (30-60 microinches)
Gamma Crown (in 5 inches)...................  0.0005 inches, start
                                               measuring \1/4\ inch from
                                               slit edge
Flatness....................................  20 I-UNIT max.
Coating.....................................  C3A-.08A max. (A2 coating
                                               acceptable)
Camber (in any 10 feet).....................  \1/16\ inch
Coil Size I.D...............................  20 inches
------------------------------------------------------------------------


                                               Magnetic Properties
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Core Loss (1.5T/60 Hz) NAAS................  3.8 Watts/Pound max.
Permeability (1.5T/60 Hz) NAAS.............  1700 gauss/oersted typical 1500 minimum
----------------------------------------------------------------------------------------------------------------

     Certain aperture mask steel, which has an ultra-flat 
surface flatness and which meets the following characteristics:

Thickness: 0.025 to 0.245 mm
Width: 381--1000 mm

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
                Element                           C                         N                         Al
----------------------------------------------------------------------------------------------------------------
Weight %..............................  <0.01                 0.004 to 0.007                 <0.007
----------------------------------------------------------------------------------------------------------------

      Certain tin mill black plate, annealed and temper-rolled, 
continuously cast, which meets the following characteristics:

[[Page 60413]]



                                                                  Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
                  Element                       C          Mn         P          S          Si         Al         As         Cu         B          N
--------------------------------------------------------------------------------------------------------------------------------------------------------
Min. Weight %.............................       0.02       0.20  .........  .........  .........       0.03  .........  .........  .........      0.003
Max. Weight %.............................       0.06       0.40       0.02  \1\ 0.023       0.03       0.08       0.02       0.08  .........  \2\ 0.008
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Aiming 0.018 Max.
\2\ Aiming 0.05
\3\ Aiming 0.005.

    Non-metallic Inclusions: Examination with the S.E.M. shall not 
reveal individual oxides > 1 micron (0.000039 inches) and inclusion 
groups or clusters shall not exceed 5 microns (0.000197 inches) in 
length.
    Surface Treatment as follows: The surface finish shall be free of 
defects (digs, scratches, pits, gouges, slivers, etc.) and suitable for 
nickel plating.

                             Surface Finish
------------------------------------------------------------------------
                                         Roughness, RA Microinches
                                               (Micrometers)
                                  --------------------------------------
                                       Aim          Min.         Max.
------------------------------------------------------------------------
Extra Bright.....................       5(0.1)         0(0)       7(0.2)
------------------------------------------------------------------------

     Certain full hard tin mill black plate, continuously cast, 
which meets the following characteristics:

                                                                  Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
                  Element                       C          Mn         P          S          Si         Al         As         Cu         B          N
--------------------------------------------------------------------------------------------------------------------------------------------------------
Min. Weight %.............................       0.02       0.20  .........  .........  .........       0.03  .........  .........  .........      0.003
Max. Weight %.............................       0.06       0.40       0.02  \1\ 0.023       0.03       0.08       0.02       0.08  .........  \3\ 0.008
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Aiming 0.018 Max.
\2\ Aiming 0.005
\3\ Aiming 0.005.

    Non-metallic Inclusions: Examination with the S.E.M. shall not 
reveal individual oxides > 1 micron (0.000039 inches) and inclusion 
groups or clusters shall not exceed 5 microns (0.000197 inches) in 
length.
    Surface Treatment as follows: The surface finish shall be free of 
defects (digs, scratches, pits, gouges, slivers, etc.) and suitable for 
nickel plating.

                             Surface Finish
------------------------------------------------------------------------
                                         Roughness, RA Microinches
                                               (Micrometers)
                                  --------------------------------------
                                       Aim          Min.         Max.
------------------------------------------------------------------------
Stone Finish.....................      16(0.4)       8(0.2)      24(0.6)
------------------------------------------------------------------------

     Certain ``blued steel'' coil (also know as ``steamed blue 
steel'' or ``blue oxide'') with a thickness and size of 0.38 mm  x  940 
mm  x  coil, and with a bright finish;
     Certain cold-rolled steel sheet, which meets the following 
characteristics:

Thickness (nominal):  0.019 inches
Width: 35 to 60 inches

                          Chemical Composition
------------------------------------------------------------------------
             Element                    C            O            B
------------------------------------------------------------------------
Max. Weight %....................        0.004  ...........  ...........
Min. Weight %....................  ...........        0.010        0.012
------------------------------------------------------------------------

     Certain band saw steel, which meets the following 
characteristics:

Thickness:  1.31 mm
Width:  80 mm

                                                                                      Chemical Composition
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
             Element                         C                      Si                     Mn                     P                      S                     Cr                    Ni
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Weight %.........................  1.2 to 1.3             0.15 to 0.35           0.20 to 0.35           0.03        0.007       0.3 to 0.5            0.25
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 60414]]

    Other properties:

Carbide: fully spheroidized having <80% of carbides, which are 
0.003 mm and uniformly dispersed
Surface finish: bright finish free from pits, scratches, rust, cracks, 
or seams Smooth edges
Edge camber (in each 300 mm of length): 7 mm arc height 
Cross bow (per inch of width): 0.015 mm max.

    The merchandise subject to this investigation is typically 
classified in the HTSUS at subheadings: 7209.15.0000, 7209.16.0030, 
7209.16.0060, 7209.16.0090, 7209.17.0030, 7209.17.0060, 7209.17.0090, 
7209.18.1530, 7209.18.1560, 7209.18.2550, 7209.18.6000. 7209.25.0000, 
7209.26.0000, 7209.27.0000, 7209.28.0000, 7209.90.0000, 7210.70.3000, 
7210.90.9000, 7211.23.1500, 7211.23.2000, 7211.23.3000, 7211.23.4500, 
7211.23.6030, 7211.23.6060, 7211.23.6085, 7211.29.2030, 7211.29.2090, 
7211.29.4500, 7211.29.6030, 7211.29.6080, 7211.90.0000, 7212.40.1000, 
7212.40.5000, 7212.50.0000, 7225.19.0000, 7225.50.6000, 7225.50.7000, 
7225.50.8010, 7225.50.8085, 7225.99.0090, 7226.19.1000, 7226.19.9000, 
7226.92.5000, 7226.92.7050, 7226.92.8050, and 7226.99.0000.
    Although the HTSUS subheadings are provided for convenience and 
U.S. Customs Service (``U.S. Customs'') purposes, the written 
description of the merchandise under investigation is dispositive.
    The Department set aside a period for all interested parties to 
raise issues regarding product coverage. From July through October 
1999, the Department received responses from a number of parties 
including importers, respondents, consumers, and petitioners, aimed at 
clarifying the scope of the investigation. See Memorandum to Joseph A. 
Spetrini (``Scope Memorandum''), November 1, 1999, for a list of all 
persons submitting comments and a discussion of all scope comments. 
There are several scope exclusion requests for products which are 
currently covered by the scope of this investigation that are still 
under consideration by the Department. These items are considered to be 
within the scope for this preliminary determination; however, these 
requests will be reconsidered for the final determination. See Scope 
Memorandum.

Selection of Respondents

    Section 777A(c)(1) of the Act directs the Department to calculate 
individual dumping margins for each known exporter and producer of the 
subject merchandise. However, section 777A(c)(2) of the Act gives the 
Department discretion, when faced with a large number of exporters/
producers, to limit its examination to a reasonable number of such 
companies if it is not practicable to examine all companies. Where it 
is not practicable to examine all known producers/exporters of subject 
merchandise, this provision permits the Department to investigate 
either: (1) A sample of exporters, producers, or types of products that 
is statistically valid based on the information available at the time 
of selection, or (2) exporters and producers accounting for the largest 
volume of the subject merchandise that can be reasonably examined.
    After consideration of the complexities expected to arise in these 
proceedings and the resources available to the Department, we 
determined that it was not practicable in these investigations to 
examine all known producers/exporters of subject merchandise. This was 
not a concern in the investigations involving Argentina and Thailand, 
since there was only one producer/exporter of subject merchandise in 
each of those countries during the POI. However, with respect to Japan, 
which had multiple producers/exporters of subject merchandise during 
the POI, we determined that, given our resources, we would be able to 
investigate two such companies. The respondents selected for Japan were 
those with the greatest export volume; together they accounted for more 
than 50 percent of all known exports of the subject merchandise during 
the POI from Japan. For a more detailed discussion of respondent 
selection in these investigations, see Respondent Selection Memorandum 
(July 9, 1999).

Facts Available

    The following companies failed to respond to our questionnaires: 
Siderar in the Argentina case; NSC, KSC, Kobe, and Nisshin in the Japan 
case; and TCRSSC/Sahaviriya in the Thailand case. Section 776(a)(2) of 
the Act provides that, if an interested party (A) withholds information 
that has been requested by the Department; (B) fails to provide such 
information in a timely manner or in the form or manner requested 
subject to section 782(c)(1) and (e) of the Act; (C) significantly 
impedes a proceeding under the antidumping statute; or (D) provides 
such information but the information cannot be verified, the Department 
shall, subject to subsection 782(d) of the Act, use facts otherwise 
available in reaching the applicable determination. Because Siderar, 
NSC, KSC, Kobe, Nisshin and TCRSSC/Sahaviriya failed to respond to our 
questionnaire, pursuant to section 776(a)(2)(A) of the act we resorted 
to facts otherwise available to calculate the dumping margins for these 
companies.
    Section 776(b) of the Act provides that the Department may use an 
inference adverse to the interests of a party that has failed to 
cooperate by not acting to the best of its ability to comply with the 
Department's requests for information. See also Statement of 
Administrative Action (``SAA'') accompanying the URAA, H.R. Rep. No. 
103-316 at 870 (1994) (SAA). Failure by Siderar, KSC, NSC, Kobe, 
Nisshin, and TCRRSC/Sahaviriya to respond to the Department's 
antidumping questionnaire constitutes a failure to act to the best of 
their ability to comply with a request for information, within the 
meaning of section 776 of the Act. Because Siderar, KSC, NSC, Kobe, 
Nisshin, and TCRSSC/Sahaviriya failed to respond, the Department has 
determined that, in selecting among the facts otherwise available, an 
adverse inference is warranted in selecting the facts available for 
these companies.
    Because we were unable to calculate margins for the respondents in 
Argentina, Japan, or Thailand, consistent with Department practice, we 
assigned these respondents, in the cases of Argentina and Thailand, the 
highest margins alleged in the amendments to the respective petitions 
and in the case of Japan, the highest margin alleged in the petition. 
See Notice of Preliminary Determination of Sales at Less Than Fair 
Value: Stainless Steel Wire Rod from Germany (``Wire Rod from 
Germany''), 63 FR 10847 (March 5, 1998). The highest petition margins 
are 24.53 percent for Argentina, 53.04 percent for Japan, and 80.67 
percent for Thailand. See Initiation Notice.
    Section 776(b) states that an adverse inference may include 
reliance on information derived from the petition. See also SAA at 829-
831. 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.
    The SAA clarifies that ``corroborate'' means that the Department 
will satisfy itself that the secondary information to

[[Page 60415]]

be used has probative value (see SAA at 870). The SAA also states that 
independent sources used to corroborate such evidence may include, for 
example, published price lists, official import statistics and customs 
data, and information obtained from interested parties during the 
particular investigation (see SAA at 870).
    We reviewed the adequacy and accuracy of the information in the 
petitions during our pre-initiation analysis of the petitions, to the 
extent appropriate information was available for this purpose. See 
Import Administration AD Investigation Initiation Checklist (June 21, 
1999), for a discussion of the margin calculations in the petitions. In 
addition, in order to determine the probative value of the margins in 
the petitions for use as adverse facts available for purposes of this 
determination, we examined evidence supporting the calculations in the 
petitions. In accordance with section 776(c) of the Act, to the extent 
practicable, we examined the key elements of the export price (``EP'') 
and normal value (``NV'') calculations on which the margins in the 
petitions were based. Our review of the EP and NV calculations 
indicated that the information in the petitions has probative value, as 
certain information included in the margin calculations in the 
petitions is from public sources concurrent, for the most part, with 
the POI (e.g., international freight and insurance, customs duty, 
interest rates). For purposes of this preliminary determination, the 
Department compared the export prices alleged by the petitioners for 
sales to unaffiliated first purchasers with contemporaneous, average 
unit values of U.S. imports classified under the appropriate HTS 
number. We noted that the U.S. price quotes of the per unit values of 
the subject merchandise derived by the petitioners were well within the 
range of the average unit values reported by U.S. Customs. U.S. 
official import statistics are sources which we consider to require no 
further corroboration by the Department. See Notice of Final 
Determination of Sales at Less Than Fair Value: Collated Roofing Nails 
From the People's Republic of China, 62 FR 51410, (October 1, 1997).
    However, with respect to certain other data included in the margin 
calculations of the petition (e.g., home market unit prices), neither 
respondents nor other interested parties provided the Department with 
further relevant information and the Department is aware of no other 
independent sources of information that would enable it to further 
corroborate the remaining components of the margin calculation in the 
petition. The implementing regulation for section 776 of the Act, at 19 
CFR 351.308(c), states ``[t]he fact that corroboration may not be 
practicable in a given circumstance will not prevent the Secretary from 
applying an adverse inference as appropriate and using the secondary 
information in question.'' Additionally, we note that the SAA at 870 
specifically states that, where ``corroboration may not be practicable 
in a given circumstance,'' the Department may nevertheless apply an 
adverse inference. Accordingly, we find, for purposes of this 
preliminary determination, that this information is sufficiently 
corroborated.

All Others

    Section 735(c)(5)(B) of the Act provides that, where the estimated 
weighted-averaged dumping margins established for all exporters and 
producers individually investigated are zero or de minimis or are 
determined entirely under section 776 of the Act, the Department may 
use any reasonable method to establish the estimated all-others rate 
for exporters and producers not individually investigated. Our recent 
practice under these circumstances has been to assign, as the ``all 
others'' rate, the simple average of the margins in the petition. See 
Notice of Final Determination of Sales at Less Than Fair Value: 
Stainless Steel Plate in Coil from Canada (``Stainless Steel Plate from 
Canada''), 64 FR 15457 (March 31, 1999); Notice of Final Determination 
of Sales at Less Than Fair Value: Stainless Steel Plate in Coil from 
Italy (``Stainless Steel Plate from Italy''), 64 FR 15458, 15459 (March 
21, 1999).
    With respect to Argentina, because the petition contained only a 
single margin, and there is no other information on the record on which 
to base an ``all others'' rate, we have also based the ``all others'' 
rate on the sole petition margin, i.e., 24.53 percent. See Notice of 
Final Determination of Sales at Less Than Fair Value: Steel Wire Rod 
from Venezuela, 63 FR 8946 (February 23, 1998). With respect to Japan, 
we are basing the ``all others'' rate on the simple average of margins 
in the petition, which is 39.28 percent. Finally, with respect to 
Thailand, we also are basing the ``all others'' rate on the simple 
average of margins in the amendment to the petition, which is 67.97 
percent.

Critical Circumstances

    The petitioners made a timely allegation, in the petitions, that 
there is a reasonable basis to believe or suspect that critical 
circumstances exist with respect to imports of subject merchandise from 
Japan and Thailand. According to section 733(e)(1) of the Act, if 
critical circumstances are alleged under section 733(e) of the Act, the 
Department must examine whether 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 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. Section 351.206(h)(1) of 
the Department's regulations provides that, in determining whether 
imports of the subject merchandise have been ``massive,'' the 
Department normally will examine: (i) The volume and value of the 
imports; (ii) seasonal trends; and (iii) the share of domestic 
consumption accounted for by the imports. In addition, section 
351.206(h)(2) of the Department's regulations provides that an increase 
in imports during the ``relatively short period'' of over 15 percent 
may be considered ``massive.'' Section 351.206(i) of the Department's 
regulations defines ``relatively short period'' normally as the period 
beginning on the date the proceeding begins (i.e., the date the 
petition is filed) and ending at least three months later.
    Because we are not aware of any antidumping order in any country on 
cold-rolled steel products from Japan or Thailand, we do not find that 
a reasonable basis to believe or suspect that there is a history of 
dumping and material injury by reason of dumped imports in the United 
States or elsewhere of the subject merchandise exists. Therefore, we 
must look to whether there was importer knowledge under section 
733(e)(1)(A)(ii) of the Act.
    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 the cold-rolled steel at less than fair value, the 
Department's normal practice is to consider for EP sales margins of 25 
percent or more sufficient to impute knowledge of dumping. See Certain 
Cut-to-Length Carbon Steel Plate From the People's Republic of China, 
62 FR 31972, 31978 (June 11, 1997). As discussed above, we have 
applied, as adverse facts available for NSC, KSC, Kobe and Nisshin in 
the Japan investigation and TCRSSC/Sahaviriya in the Thailand 
investigation, the highest

[[Page 60416]]

of the dumping margins presented in the petitions and corroborated by 
the Department. These margins are in excess of 25 percent. Therefore, 
we impute knowledge of dumping in regard to exports by these companies.
    In determining whether there is a reasonable basis to believe or 
suspect that an importer knew or should have known that there was 
likely to be material injury by reason of dumped imports, the 
Department normally looks to the preliminary injury determination of 
the ITC.
    If the ITC finds a reasonable indication of present material injury 
to the relevant U.S. industry, the Department normally determines that 
a reasonable basis exists to impute importer knowledge that there was 
likely to be material injury by reason of dumped imports. The ITC has 
found that a reasonable indication of present material injury exists in 
regard to both Japan and Thailand. See ITC Preliminary Determination. 
As a result, the Department has determined that there is a reasonable 
basis to believe or suspect that importers knew or should have known 
that there was likely to be material injury by reason of dumped imports 
from NSC, KSC, Kobe, Nisshin and TCRRSC/Sahaviriya.
    In determining whether there are ``massive imports'' over a 
``relatively short period,'' the Department typically compares the 
import volume of the subject merchandise for at least three months 
immediately preceding and following the filing of the petition. Imports 
normally will be considered massive when imports have increased by 15 
percent or more during this ``relatively short period.'' Since there is 
no verifiable information on the record with respect to NSC, KSC, Kobe, 
Nisshin, and TCRRSC/Sahaviriya's import volumes, we must use the facts 
available in accordance with section 776(a) of the Act. Accordingly, we 
examined U.S. Customs data on imports of cold-rolled steel products 
from Japan and Thailand in order to determine whether these data 
reasonably preclude an increase in shipments of 15 percent or more 
within a relatively short period for any of these companies.
    These statistics, in the case of cold-rolled steel from Japan, 
cover numerous HTS categories that include merchandise other than 
subject merchandise. Therefore, we cannot rely on these data in 
determining if massive shipments of cold-rolled steel from Japan 
occurred over a relatively short time. See Notice of Final 
Determination of Sales at Less Than Fair Value: Stainless Steel Sheet 
and Strip in Coils from Japan (``Stainless Steel from Japan''), 64 FR 
30574 (June 8, 1999). Moreover, these data do not permit the Department 
to ascertain the import volumes for any individual company that failed 
to provide verifiable information. As a result, in accordance with 
section 776(b) of the Act, we have used an adverse inference in 
applying facts available, and determine that there were massive imports 
from NSC, KSC, Kobe, and Nisshin during a relatively short period. See, 
e.g., Notice of Final Determination of Sales at Less Than Fair Value: 
Collated Roofing Nails from Taiwan (``Roofing Nails from Taiwan''), 62 
FR 51427 (October 1, 1997) and Notice of Final Determination of Sales 
at Less Than Fair Value and Final Affirmative Finding of Critical 
Circumstances: Elastic Rubber Tape from India (``Elastic Rubber Tape 
from India''), 64 FR 19123 (April 19, 1999). Because all of the 
necessary criteria have been met, in accordance with section 733(e)(1) 
of the Act, the Department preliminarily finds that critical 
circumstances exist with respect to cold-rolled steel products imported 
from NSC, KSC, Kobe, and Nisshin.
    With respect to Thailand, we were able to determine that the U.S. 
Customs data on imports of cold-rolled steel products from Thailand 
covers HTS categories that include only subject merchandise. Based on 
our analysis of these statistics and other information on the record, 
we determined that massive imports of subject merchandise from TCRSSC/
Sahaviriya did not occur over the comparison period (three months 
following the filing of the petition). Because the criterion necessary 
to find critical circumstances, in accordance with section 733(e)(1) of 
the Act, has not been met, the Department preliminarily finds that 
critical circumstances do not exist for imports of cold-rolled steel 
products from Thailand imported from TCRSSC/Sahaviriya.
    It is the Department's normal practice to conduct its critical 
circumstances analysis of companies in the ``all others'' group based 
on the experience of investigated companies. See Notice of Final 
Determination of Sales at Less Than Fair Value: Certain Steel Concrete 
Reinforcing Bars from Turkey (``Rebars from Turkey''), 62 FR 9737, 9741 
(March 4, 1997) (the Department found that critical circumstances 
existed for the majority of the companies investigated, and therefore 
concluded that critical circumstances also existed for companies 
covered by the ``all others'' rate). However, the Department does not 
automatically extend an affirmative critical circumstances 
determination to companies covered by the ``all others'' rate. See 
Stainless Steel from Japan. Instead, the Department considers the 
traditional critical circumstances criteria with respect to the 
companies covered by the ``all others'' rate.
    Consistent with Stainless Steel from Japan, the Department has, in 
this case, applied the traditional critical circumstances criteria to 
the ``all others'' category for the antidumping investigations of cold 
rolled steel from Japan and Thailand. First, the dumping margins for 
the ``all others'' categories, 39.28 percent for Japan and 67.97 
percent for Thailand (see Suspension of Liquidation, below), exceed the 
25 percent threshold necessary to impute knowledge of dumping. Second, 
based on the ITC's preliminary material injury determination, we also 
find that importers knew or should have known that there would be 
material injury from sales of the dumped merchandise by respondents 
other than NSC, KSC, Kobe, Nisshin and TCRSSC/ Sahaviriya.
    However, the Department has not found that there are massive 
imports for the ``all others'' companies in the Japan and Thailand 
investigations. First, we have not used adverse facts available 
concerning massive imports. Unlike the mandatory respondents and other 
companies that refused to provide information upon request at the 
outset of the case, the ``all others'' companies have not failed to act 
to the best of their ability. The Department does not use adverse 
inferences with respect to firms whose individual data have not been 
analyzed due to the Department's own administrative constraints, as is 
the case in the Japan proceeding.\2\ See, e.g., Notice of Preliminary 
Critical Circumstances Determination: Honey from the People's Republic 
of China, 60 FR 29824, (June 6, 1995)). Second, there is no evidence of 
massive imports from ``all others'' companies in the Japan and Thailand 
cases.
---------------------------------------------------------------------------

    \2\ As far as the Department has been able to determine, there 
was only a single producer/exporter of subject merchandise from 
Thailand during the POI.
---------------------------------------------------------------------------

    While we normally rely on our findings for the selected mandatory 
respondents, in the Japan case our determinations with respect to all 
of the mandatory respondents were based on adverse facts available. 
Therefore, we have not used these findings as a basis for our 
determination with respect to all other companies. Further, in 
accordance with Notice of Final Determination of Sales at Less Than 
Fair Value: Hot-Rolled Flat-Rolled Carbon-Quality Steel Products from 
Japan, 64 FR 24239 (May 6, 1999), the Department considered whether 
U.S. Customs data on imports of cold rolled steel products from Japan

[[Page 60417]]

could be used to make a determination regarding the ``all others'' 
category. In the case of Japan, however, these statistics cover 
numerous HTS categories that include merchandise other than subject 
merchandise. Therefore, we cannot rely on these data in determining if 
there were massive imports for the ``all others'' category for Japan. 
See Stainless Steel from Japan. The Department does not have any other 
data indicating massive imports from the companies in question. 
Therefore, the Department does not find massive imports with regard to 
the ``all others'' category in the Japan case.
    In the case of Thailand, we determined that there were not massive 
imports from the one mandatory respondent. Although we made this 
determination on the basis of the facts available, we did not use an 
adverse inference. Therefore, we have considered this as evidence of no 
massive imports from all other companies. Further, we were able to 
analyze the U.S. Customs data on imports of cold rolled steel products 
from Thailand because these statistics did not include HTS categories 
covering merchandise other than subject merchandise. However, our 
analysis showed that massive imports did not occur during the 
``relatively short period''. As a result, the Department does not find 
massive imports in regard to the ``all others'' categories in the 
Thailand case.
    Because the massive imports criterion necessary to find critical 
circumstances has not been met with respect to firms other than NSC, 
KSC, Kobe, and Nisshin, the Department preliminarily finds that 
critical circumstances do not exist for the ``all others'' category in 
the Japan and Thailand investigations.

Suspension of Liquidation

    In accordance with section 733(d) of the Act, we are directing the 
U.S. Customs Service to suspend liquidation of all entries of cold-
rolled steel products exported from Japan by KSC, NSC, Kobe and Nisshin 
that are entered, or withdrawn from warehouse, for consumption on or 
after the date which is 90 days prior to the date of publication of 
this notice in the Federal Register. For entries of cold-rolled steel 
products from Argentina and Thailand, and merchandise exported by all 
other companies in Japan, we are directing the U.S. Customs Service to 
suspend liquidation of those entries that are entered, or withdrawn 
from warehouse, for consumption on or after the date of publication of 
this notice in the Federal Register. We are also instructing the 
Customs Service to require a cash deposit or the posting of a bond 
equal to the dumping margin, as indicated in the chart below. These 
instructions suspending liquidation will remain in effect until further 
notice.
    The dumping margins are provided below.

------------------------------------------------------------------------
                                                                Margin
                   Manufacturer/exporter                      (percent)
------------------------------------------------------------------------
Argentina:
    Siderar Limited........................................        24.53
    All Others.............................................        24.53
Japan:
    Nippon Steel Corporation...............................        53.04
    Kawasaki Steel Corporation.............................        53.04
    Kobe Steel, Ltd........................................        53.04
    Nisshin Steel Co., Ltd.................................        53.04
    All Others.............................................        39.28
Thailand:
    TCRSSC/Sahaviriya......................................        80.67
    All Others.............................................        67.97
------------------------------------------------------------------------

ITC Notification

    In accordance with section 733(f) of the Act, we have notified the 
ITC of our determinations. If our final antidumping determinations are 
affirmative, the ITC will determine whether these imports are 
materially injuring, or threaten material injury to, the U.S. industry. 
The deadline for that ITC determination would be the later of 120 days 
after the date of these preliminary determinations or 45 days after the 
date of our final determinations.

Public Comment

    For the investigations of cold-rolled steel products from 
Argentina, Japan and Thailand, case briefs must be submitted no later 
than 50 days after the publication of this notice in the Federal 
Register. Rebuttal briefs must be filed within five days after the 
deadline for submission of case briefs. A list of authorities used, a 
table of contents, and an executive summary of issues should accompany 
any briefs submitted to the Department. Executive summaries should be 
limited to five pages total, including footnotes.
    Section 774 of the Act provides that the Department will hold a 
hearing to afford interested parties an opportunity to comment on 
arguments raised in case or rebuttal briefs, provided that such a 
hearing is requested by any interested party. If a request for a 
hearing is made in an investigation, the hearing will tentatively be 
held two days after the deadline for submission of the rebuttal briefs, 
at the U.S. Department of Commerce, 14th Street and Constitution 
Avenue, NW, Washington, DC 20230. In the event that the Department 
receives requests for hearings from parties to several cold-rolled 
cases, the Department may schedule a single hearing to encompass all 
those cases. Parties should confirm by telephone the time, date, and 
place of the hearing 48 hours before the scheduled time.
    Interested parties who wish to request a hearing, or to participate 
if one is requested, must submit a written request within 30 days of 
the publication of this notice. Requests should specify the number of 
participants and provide a list of the issues to be discussed. Oral 
presentations will be limited to issues raised in the briefs.
    If these investigations proceed normally, we will make our final 
determinations in the investigations of cold-rolled steel products from 
Argentina, Japan and Thailand no later than 75 days after the date of 
this preliminary determination.
    These determinations are published pursuant to sections 733(d) and 
777(i)(1) of the Act.

    Dated: November 1, 1999.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
[FR Doc. 99-29064 Filed 11-4-99; 8:45 am]
BILLING CODE 3510-DS-P