[Federal Register Volume 64, Number 229 (Tuesday, November 30, 1999)]
[Notices]
[Pages 66892-66894]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-30972]


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

DEPARTMENT OF COMMERCE

International Trade Administration
[A-588-854]


Initiation of Antidumping Duty Investigation: Certain Tin Mill 
Products From Japan

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

EFFECTIVE DATE: November 30, 1999.

FOR FURTHER INFORMATION CONTACT: Samantha Denenberg at (202) 482-1386 
or Linda Ludwig at (202) 482-3833, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230.

Initiation of Investigations

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).

The Petition

    On October 28, 1999, the Department of Commerce (``the 
Department'') received a petition filed in proper form by Weirton Steel 
Corporation, Independent Steelworkers Union, and United Steelworkers of 
America, AFL-CIO (collectively petitioners). The Department received 
supplemental information to the petition on November 8, 1999.
    In accordance with section 732(b) of the Act, petitioners allege 
that imports of certain tin mill products (``TMP'') from Japan are 
being, or are likely to be, sold in the United States at less than fair 
value within the meaning of section 731 of the Act, and that such 
imports are materially injuring an industry in the United States.
    The Department finds that petitioners filed these petitions on 
behalf of the domestic industry because they are interested parties as 
defined in sections 771(9)(C) and (D) of the Act and they have 
demonstrated sufficient industry support with respect to the 
antidumping investigation they are requesting the Department to 
initiate (see Determination of Industry Support for the Petition 
below).

[[Page 66893]]

Scope of Investigation

    The scope of this investigation includes tin mill flat-rolled 
products that are coated or plated with tin, chromium or chromium 
oxides. Flat-rolled steel products coated with tin are known as tin 
plate. Flat-rolled steel products coated with chromium or chromium 
oxides are known as tin-free steel or electrolytic chromium-coated 
steel. The scope includes all the noted tin mill products regardless of 
thickness, width, form (in coils or cut sheets), coating type 
(electrolytic or otherwise), edge (trimmed, untrimmed or further 
processed, such and scroll cut), coating thickness, surface finish, 
temper, coating metal (tin, chromium, chromium oxide), reduction 
(single-or double-reduced), and whether or not coated with a plastic 
material.
    The merchandise subject to this investigation is classified in the 
Harmonized Tariff Schedule of the United States (``HTSUS''), under 
HTSUS subheadings 7210.11.0000, 7210.12.0000, 7210.50.0000, 
7212.10.0000, and 7210.50.0000 if of non-alloy steel and under HTSUS 
subheadings 7225.99.0090, and 7226.99.0000 if of alloy steel. Although 
the subheadings are provided for convenience and Customs purposes, our 
written description of the scope of this investigation is dispositive.

Determination of Industry Support for the Petition

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (1) at least 
25 percent of the total production of the domestic like product; and 
(2) more than 50 percent of the production of the domestic like product 
produced by that portion of the industry expressing support for, or 
opposition to, the petition.
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers of a domestic like product. Thus, to determine whether the 
petition has the requisite industry support, the statute directs the 
Department to look to producers and workers who produce the domestic 
like product. The International Trade Commission (ITC), which is 
responsible for determining whether ``the domestic industry'' has been 
injured, must also determine what constitutes a domestic like product 
in order to define the industry. While both the Department and the ITC 
must apply the same statutory definition regarding the domestic like 
product (section 771(10) of the Act), they do so for different purposes 
and pursuant to separate and distinct authority. In addition, the 
Department's determination is subject to limitations of time and 
information. Although this may result in different definitions of the 
like product, such differences do not render the decision of either 
agency contrary to the law.1
---------------------------------------------------------------------------

    \1\ See Algoma Steel Corp. Ltd., v. United States, 688 F. Supp. 
639, 642-44 (CIT 1988); High Information Content Flat Panel Displays 
and Display Glass Therefore from Japan: Final Determination; 
Rescission of Investigation and Partial Dismissal of Petition, 56 FR 
32376, 32380-81 (July 16, 1991).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation,'' i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition. Moreover, petitioners do not offer a definition of domestic 
like product distinct from the scope of the investigation.
    The domestic like product referred to in the petition is the single 
domestic like product defined in the ``Scope of Investigation'' 
section, above. The Department has no basis on the record to find the 
petition's definition of the domestic like product to be inaccurate. 
The Department has, therefore, adopted the domestic like product 
definition set forth in the petition. In this case, the Department has 
determined that the petition and supplemental information to the 
petition contain adequate evidence of sufficient industry support (see 
Attachment to the Initiation Checklist Re: Industry Support, November 
17, 1999). Producers and workers supporting the petition represent over 
50 percent of total production of the domestic like product. 
Accordingly, both tests under section 732(c)(4)(A) are satisfied, and 
the Department determines that this petition is filed on behalf of the 
domestic industry within the meaning of 732(b)(1) of the Act.

Export Price and Normal Value

    The following are descriptions of the allegations of sales at less 
than fair value upon which our decision to initiate this investigation 
is based. Should the need arise to use any of this information in our 
preliminary or final determinations for purposes of facts available 
under section 776 of the Act, we may re-examine the information and 
revise the margin calculations, if appropriate.
Japan
    Petitioners identified Nippon Steel Corporation, NKK Corporation, 
Kawasaki Steel Corporation, and Toyo Kohan Co. Ltd. as possible 
exporters of TMP from Japan. Petitioners further identified these 
exporters as the primary producers of subject merchandise in Japan. 
Petitioners based export price (``EP'') for imports from Japan on 
import values as recorded in official U.S. Department of Commerce IM-
145 statistics. In calculating import values, petitioners used the 
customs values reported for the HTS categories which represent imports 
of tin plate (e.g., HTSUS 7210.12.0000) and imports of tin free steel 
(e.g., HTSUS 7210.50.0000). Petitioners used average customs values for 
each product (for the month of June 1999) which approximate the FOB 
price of the merchandise, packaged and ready for delivery in the 
exporter's country. Petitioners did not deduct foreign inland freight 
and handling in Japan because they had no information regarding these 
expenses.
    With respect to normal value (``NV''), petitioners stated that the 
volume of Japanese home market sales was sufficient to form a basis for 
normal value, pursuant to section 773(a)(1)(C)(ii) of the Act. 
Petitioners constructed normal values based on the average prices of 
tin mill products sold in Japan by Nippon Steel Corporation 
(``Nippon'') to large end users during June 1999. Petitioners 
determined that, because Nippon is the largest producer of the subject 
merchandise in the Japanese market, Nippon's prices would be 
representative of the normal value in the Japanese tin mill market. The 
Japanese home market prices for five sample models of tin plate 
products and thirteen sample models of tin free steel were obtained by 
foreign market research consultants in Japan. The prices used in the 
calculation of NV were delivered, VAT exclusive prices. Petitioners 
derived NV by deducting a commission from the delivered price, which 
represents payment made to large trading companies. Petitioners also 
deducted expenses for freight, handling, and other movement related 
expenses such as storage during transportation and tolls. For the 
calculation of dumping margins, petitioners compared the average unit 
value for all five sample sales of tin plate to the average customs 
value for the corresponding HTSUS item for the month of June 1999, and 
the average unit value for all thirteen sample sales of tin free steel 
to the

[[Page 66894]]

average customs value for the corresponding HTSUS item for the month of 
June 1999.
    The estimated dumping margins in the petition, based on a 
comparison between Nippon's home market prices and U.S. prices derived 
from IM-145 statistics, range from 0.78 percent to 95.29 percent.

Fair Value Comparisons

    Based on the data provided by petitioners, there is reason to 
believe that imports of certain tin mill products from Japan are being, 
or are likely to be, sold at less than fair value.

Allegations and Evidence of Material Injury and Causation

    The petition alleges that the U.S. industry producing the domestic 
like product is being materially injured, and is threatened with 
material injury, by reason of the imports of the subject merchandise 
sold at less than fair value. Petitioners explained that the industry's 
injured condition is evident in the declining trends in net operating 
profits, net sales volumes, and capacity utilization. The allegations 
of injury and causation are supported by relevant evidence including 
U.S. Customs import data, lost sales, and pricing information. The 
Department assessed the allegations and supporting evidence regarding 
material injury and causation, and determined that these allegations 
are supported by accurate and adequate evidence and meet the statutory 
requirements for initiation (see Attachments to Initiation Checklist, 
Re: Material Injury, November 17, 1999).

Initiation of Antidumping Investigations

    Based upon our examination of the petition on TMP and petitioners' 
supplemental information clarifying the petition, we have found that 
the petition meets the requirements of section 732 of the Act. 
Therefore, we are initiating an antidumping duty investigation to 
determine whether imports of certain tin mill products from Japan are 
being, or are likely to be, sold in the United States at less than fair 
value. Unless the deadline is extended, we will make our preliminary 
determination no later than 140 days after the date of publication of 
this notice.

Distribution of Copies of the Petitions

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

International Trade Commission Notification

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

Preliminary Determinations by the ITC

    The ITC will determine, by December 13, 1999, whether there is a 
reasonable indication that imports of certain tin mill products from 
Japan are causing material injury, or threatening to cause material 
injury, to a U.S. industry. A negative ITC determination will result in 
the investigation being terminated; otherwise, these investigations 
will proceed according to statutory and regulatory time limits.
    This notice is published pursuant to section 777(i) of the Act.

    Dated: November 17, 1999.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 99-30972 Filed 11-29-99; 8:45 am]
BILLING CODE 3510-DS-P