[Federal Register Volume 65, Number 24 (Friday, February 4, 2000)]
[Notices]
[Pages 5510-5520]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-1846]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[A-821-810]


Notice of Final Determination of Sales at Less Than Fair Value: 
Certain Cold-Rolled Flat-Rolled Carbon-Quality Steel Products From the 
Russian Federation

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

EFFECTIVE DATE:  February 4, 2000.

FOR FURTHER INFORMATION CONTACT:  Michael Panfeld or Rick Johnson, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230; telephone: (202) 482-0172 and (202) 482-3818, 
respectively.

The Applicable Statute

    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 references to the Department's regulations are 
to the provisions codified at 19 CFR Part 351 (1998).

Final Determination

    We determine that certain cold-rolled flat-rolled carbon-quality 
steel products (``cold-rolled steel products'') from the Russian 
Federation (``Russia'') are being, or are likely to be, sold in the 
United

[[Page 5511]]

States at less than fair value (``LTFV''), as provided in section 735 
of the Act. The estimated margins of sales at LTFV are shown in the 
``Final LTFV Margin'' section of this notice.

Case History

    Petitioners in this investigation are Bethlehem Steel Corporation, 
Gulf States Steel, Ispat Inland Steel, LTV Steel Company Inc., National 
Steel Corporation, Steel Dynamics, U.S. Steel Group (a unit of USX 
Corporation), Weirton Steel Corporation, United Steelworkers of 
America, and the Independent Steelworkers Union (collectively 
``petitioners'').
    Respondents in this investigation are JSC Severstal (``Severstal'') 
and Novolipetsk Iron & Steel Corporation (``NISCO'').
    The preliminary determination in this investigation was published 
on November 10, 1999. See Notice of Preliminary Determination of Sales 
at Less Than Fair Value: Certain Cold-Rolled Flat-Rolled Carbon-Quality 
Steel Products From the Russian Federation, 64 FR 61261 (November 10, 
1999) (``Preliminary Determination'').
    The Department received comments from a number of parties including 
importers, respondents, consumers, and the petitioners, aimed at 
clarifying the scope of these investigations. See Memorandum to Joseph 
A. Spetrini (``Scope Memorandum''), January 18, 2000, for a list of all 
persons submitting comments and a discussion of all scope comments 
including those exclusion requests under consideration at the time of 
the preliminary determination in these investigations.
    On November 12 and December 1, 1999, respectively, respondents 
NISCO and Severstal submitted letters informing the Department of their 
withdrawal from further participation in the proceeding. On December 
29, 1999, petitioners filed their case brief in this investigation. No 
further comments were received by any party. On November 29, 1999 
petitioners requested a hearing. However, on January 5, 2000, 
petitioners withdrew their hearing request.
    On January 13, 2000, the Department signed an agreement suspending 
this antidumping investigation (``the Suspension Agreement'') with the 
Ministry of Trade of the Russian Federation. On December 22, 1999, we 
received a request from petitioners that, if we concluded a suspension 
agreement in this case, we continue the investigation. Pursuant to this 
request, we have continued and completed the investigation in 
accordance with section 734(g) of the Act. If the United States 
International Trade Commission (``ITC'') determines that material 
injury exists, the Suspension Agreement shall remain in force but the 
Department shall not issue an antidumping order so long as the 
Suspension Agreement remains in force, the Suspension Agreement 
continues to meet the requirements of subsections (d) and (l) of 
section 734 of the Act, and the parties to the Suspension Agreement 
carry out their obligations under the Suspension Agreement in 
accordance with its terms.

Scope of Investigation

    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
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);
     Non-rectangular shapes, not in coils, which are the result 
of having been processed by cutting or stamping and which have assumed 
the character of articles or products classified outside chapter 72 of 
the HTSUS.
     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 inch), or
    (b) semi-processed, with core loss of less than 0.085 watts/pound 
per mil (.001 inch);
     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 inch
    Width: 15 to 32 inches

[[Page 5512]]



                          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
Weight %..........................  0.90-1.05               0.15-0.35               0.30-0.50               0.03        0.006
--------------------------------------------------------------------------------------------------------------------------------------------------------


                          Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Tensile Strength.......................  162 Kgf/mm\2\
Hardness...............................  475 Vickers hardness
                                          number
------------------------------------------------------------------------


                           Physical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Flatness...............................  less than 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.......................................  0.0
                                                                      4%
Oxide Inclusion.........................................  0.0
                                                                      5%
------------------------------------------------------------------------

    Compressive Stress: 10 to 40 Kgf/mm\2\.

                            Surface Roughness
------------------------------------------------------------------------
                 Thickness (mm)                   Roughness (m)
------------------------------------------------------------------------
t 0.209.............................  Rz0.5
0.209t less than 0.310.........................  Rz0.6
0.310t less than 0.440.........................  Rz0.7
0.440t less than 0.560.........................  Rz0.8
0.560 less than................................  Rz1.0
------------------------------------------------------------------------

     Certain ultra thin gauge steel strip, which meets the 
following characteristics:
    Thickness:  0.100 mm 7%
    Width: 100 to 600 mm

                                                                  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.......................  less than 3%
Tensile Strength.......................  600 to 850 N/mm\2\
------------------------------------------------------------------------


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


[[Page 5513]]

     Certain silicon steel, which meets the following 
characteristics:
     Thickness: 0.024 inch .0015 inch
     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 inch, 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 %............................  less than 0.01            0.004 to 0.007           less than 0.007
----------------------------------------------------------------------------------------------------------------

     Certain annealed and temper-rolled cold-rolled 
continuously cast steel, 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        0.023     0.03        0.08      0.02        0.08        ..........  0.008 (Aiming
                                                                      (Aiming               (Aiming                                       0.005)
                                                                      0.018                 0.05)
                                                                      Max.)
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Non-metallic Inclusions: Examination with the S.E.M. shall not 
reveal individual oxides >1 micron (0.000039 inch) and inclusion groups 
or clusters shall not exceed 5 microns (0.000197 inch) 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 annealed and temper-rolled cold-rolled 
continuously cast steel, which meets the following characteristics:

                                                                                      Chemical Composition
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Element........................  C                      Si                     Mn                     P                      S                      Al                     N
Weight %.......................  < 0.08                 < 0.04                 < 0.40                 < 0.03                 < 0.03                 0.010--0.025           < 0.0025
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 5514]]


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Tolerance: Guaranteed inside   +5 percent (aim 4
 of 15 mm from mill edges.                percent)
Width Tolerance........................  -0/+7 mm
Hardness (Hv)..........................  Hv 85-110
Annealing..............................  Annealed
Surface................................  Matte
Tensile Strength.......................  >275N/mm2
Elongation.............................  >36%
------------------------------------------------------------------------

     Certain annealed and temper-rolled cold-rolled 
continuously cast steel, in coils, with a certificate of analysis per 
Cable System International (``CSI'') Specification 96012, with the 
following characteristics:

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element........................  C                    Mn                  P                   S
Max. Weight %..................  0.13                 0.60                0.02                0.05
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Base Weight............................  55 pounds
Theoretical Thickness..................  0.0061 inch (+10 percent of
                                          theoretical thickness)
Width..................................  31 inches
Tensile Strength.......................  45,000--55,000 psi
Elongation.............................  minimum of 15 percent in 2
                                          inches
------------------------------------------------------------------------

     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        0.023     0.03        0.08      0.02        0.08        ..........  0.008 (Aiming
                                                                      (Aiming               (Aiming                                       0.005)
                                                                      0.018                 0.05)
                                                                      Max.)
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Non-metallic Inclusions: Examination with the S.E.M. shall not 
reveal individual oxides > micron (0.000039 inch) and inclusion groups 
or clusters shall not exceed 5 microns (0.000197 inch) 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 ultra-bright tin mill black plate meeting ASTM 7A 
specifications for surface finish and RA of seven micro-inches or 
lower.
     Concast cold-rolled drawing quality sheet steel, ASTM a-
620-97, Type B, or single reduced black plate, ASTM A-625-92, Type D, 
T-1, ASTM A-625-76 and ASTM A-366-96, T1-T2-T3 Commercial bright/luster 
7a both sides, RMS 12 maximum. Thickness range of 0.0088 to 0.038 
inches, width of 23.0 inches to 36.875 inches.
     Certain single reduced black plate, meeting ASTM A-625-98 
specifications, 53 pound base weight (0.0058 inch thick) with a Temper 
classification of T-2 (49-57 hardness using the Rockwell 30 T scale).
     Certain single reduced black plate, meeting ASTM A-625-76 
specifications, 55 pound base weight, MR type matte finish, TH basic 
tolerance as per A263 trimmed.
     Certain single reduced black plate, meeting ASTM A-625-98 
specifications, 65 pound base weight (0.0072 inch thick) with a Temper 
classification of T-3 (53-61 hardness using the Rockwell 30 T scale).
     Certain cold-rolled black plate bare steel strip, meeting 
ASTM A-625 specifications, which meet the following characteristics:

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element........................  C                    Mn                  P                   S
Max. Weight %..................  0.13                 0.60                0.02                0.05
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness..............................  0.0058 inch 0.0003
                                          inch

[[Page 5515]]

 
Hardness...............................  T2/HR 30T 50-60 aiming
Elongation.............................  15%
Tensile Strength.......................  51,000 psi 4.0
                                          aiming
------------------------------------------------------------------------

     Certain cold-rolled black plate bare steel strip, in 
coils, meeting ASTM A-623, Table II, Type MR specifications, which meet 
the following characteristics:

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element........................  C                    Mn                  P                   S
Max. Weight %..................  0.13                 0.60                0.04                0.05
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness..............................  0.0060 inch (0.0005
                                          inch)
Width..................................  10 inches (+1/4 to 3/
                                          8 inch/-0)
Tensile strength.......................  55,000 psi max.
Elongation.............................  minimum of 15 percent in 2
                                          inches
------------------------------------------------------------------------

     Certain ``blued steel'' coil (also know as ``steamed blue 
steel'' or ``blue oxide'') with a thickness of 0.30 mm to 0.42 mm and 
width of 609 mm to 1219 mm, in coil form;
     Certain cold-rolled steel sheet, whether coated or not 
coated with porcelain enameling prior to importation, which meets the 
following characteristics:
    Thickness (nominal): 0.019 inch
    Width: 35 to 60 inches

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

     Certain cold-rolled steel, which meets the following 
characteristics:
    Width: >66 inches

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element........................  C                    Mn                  P                   Si
Max. Weight %..................  0.07                 0.67                0.14                0.03
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Range (mm)...................  0.800-2.000
Min. Yield Point (MPa).................  265
Max. Yield Point (MPa).................  365
Min. Tensile Strength (MPa)............  440
Min. Elongation %......................  26
------------------------------------------------------------------------

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

    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.

 Certain transformation-induced plasticity (TRIP) steel, which 
meets the following characteristics:

[[Page 5516]]

Variety 1

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element.............................  C                         Si                       Mn
Min. Weight %.......................  0.09                      1.0                      0.90
Max. Weight %.......................  0.13                      2.1                      1.7
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Range (mm)...................  1.000-2.300 (inclusive)
Min. Yield Point (MPa).................  320
Max Yield Point (MPa)..................  480
Min. Tensile Strength (MPa)............  590
Min. Elongation %......................  24 (if 1.000-1.199 thickness
                                          range)
                                         25 (if 1.200-1.599 thickness
                                          range)
                                         26 (if 1.600-1.999 thickness
                                          range)
                                         27 (if 2.000-2.300 thickness
                                          range)
------------------------------------------------------------------------

Variety 2

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element.............................  C                         Si                       Mn
Min. Weight %.......................  0.12                      1.5                      1.1
Max. Weight %.......................  0.16                      2.1                      1.9
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Range (mm)...................  1.000-2.300 (inclusive)
Min. Yield Point (MPa).................  340
Max Yield Point (MPa)..................  520
Min. Tensile Strength (MPa)............  690
Min. Elongation %......................  21 (if 1.000-1.199 thickness
                                          range)
                                         22 (if 1.200-1.599 thickness
                                          range)
                                         23 (if 1.600-1.999 thickness
                                          range)
                                         24 (if 2.000-2.300 thickness
                                          range)
------------------------------------------------------------------------

Variety 3

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element.............................  C                         Si                       Mn
Min. Weight %.......................  0.13                      1.3                      1.5
Max. Weight %.......................  0.21                      2.0                      2.0
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Range (mm)...................  1.200-2.300 (inclusive)
Min. Yield Point (MPa).................  370
Max Yield Point (MPa)..................  570
Min. Tensile Strength (MPa)............  780
Min. Elongation %......................  18 (if 1.200-1.599 thickness
                                          range)
                                         19 (if 1.600-1.999 thickness
                                          range)
                                         20 (if 2.000-2.300 thickness
                                          range)
------------------------------------------------------------------------

     Certain corrosion-resistant cold-rolled steel, which meets 
the following characteristics:

Variety 1

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element........................  C                    Mn                  P                   Cu
Min. Weight %..................  ...................  ..................  ..................  0.15
Max. Weight %..................  0.10                 0.40                0.10                0.35
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Range (mm)...................  0.600-0.800

[[Page 5517]]

 
Min. Yield Point (MPa).................  185
Max Yield Point (MPa)..................  285
Min. Tensile Strength (MPa)............  340
Min. Elongation %......................  31 (ASTM standard 31% = JIS
                                          standard 35%)
------------------------------------------------------------------------

Variety 2

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element........................  C                    Mn                  P                   Cu
Min. Weight %..................  ...................  ..................  ..................  0.15
Max. Weight %..................  0.05                 0.40                0.08                0.35
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Range (mm)...................  0.800-1.000
Min. Yield Point (MPa).................  145
Max Yield Point (MPa)..................  245
Min. Tensile Strength (MPa)............  295
Min. Elongation %......................  31 (ASTM standard 31% = JIS
                                          standard 35%)
------------------------------------------------------------------------

Variety 3

                                                                  Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Element......................  C            Si           Mn           P            S            Cu         Ni           Al          Nb, Ti, V,  Mo
                                                                                                                                     B
Max. Weight %................  0.01         0.05         0.40         0.10         0.023        0.15-.35   0.35         0.10        0.10        0.30
--------------------------------------------------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness (mm).........................  0.7
Elongation %...........................  35
------------------------------------------------------------------------

     Porcelain enameling sheet, drawing quality, in coils, 
0.014 inch in thickness, +0.002, -0.000, meeting ASTM A-424-96 Type 1 
specifications, and suitable for two coats.
    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.

Period of Investigation

    The period of investigation is October 1, 1998 through March 31, 
1999.
    Nonmarket Economy Country Status
    The Department has treated Russia as a nonmarket economy (``NME'') 
country in all past antidumping duty investigations and administrative 
reviews (see, e.g., Notice of Final Determination of Sales at Less Than 
Fair Value: Hot-Rolled Flat-Rolled Carbon-Quality Steel Products From 
the Russian Federation, 64 FR 38626 (July 19, 1999) (``Hot-Rolled 
Steel''); Titanium Sponge from the Russian Federation: Final Results of 
Antidumping Administrative Review, 64 FR 1599 (January 11, 1999); 
Notice of Final Determination of Sales at Less Than Fair Value: Certain 
Cut-to-Length Carbon Steel Plate from the Russian Federation, 62 FR 
61787 (November 19, 1997); and Notice of Final Determination of Sale at 
Less Than Fair Value: Pure Magnesium and Alloy Magnesium from the 
Russian Federation, 60 FR 16440 (March 30, 1995)). A designation as an 
NME country remains in effect until it is revoked by the Department 
(see section 771(18)(C) of the Act). Therefore, for this final 
determination, the Department is continuing to treat Russia as an NME 
country.

Separate Rates

    The Department presumes that a single dumping margin is appropriate 
for all exporters in an NME country. See Final Determination of Sales 
at Less Than Fair Value: Silicon Carbide from the People's Republic of 
China, 59 FR 22585 (May 2, 1994). The Department may, however, consider 
requests for a separate rate from individual exporters.

[[Page 5518]]

Severstal and NISCO have each requested a separate, company-specific 
rate. However, because NISCO and Severstal withdrew from this 
proceeding, we were not able to verify information provided by these 
respondents and thus, as adverse facts available, we have not granted 
Severstal's or NISCO's request for a separate rate for this final 
determination. See ``Application of Facts Available'' below.

Russia-Wide Rate

    After sending questionnaires to the nine companies identified as 
potential respondents in the petition, we received complete Section A 
responses from two producers--Severstal and NISCO. However, as noted 
above in the ``Case History'' section, these two companies (Severstal 
and NISCO) subsequently withdrew from the investigation. Accordingly, 
we are applying a single antidumping rate--the Russia-wide rate--to all 
exporters in Russia based on our presumption that those respondents who 
failed to respond to the initial questionnaire or withdrew from the 
investigation (i.e., Severstal and NISCO) constitute a single 
enterprise under common control by the Russian government. See, e.g., 
Final Determination of Sales at Less Than Fair Value: Bicycles from the 
People's Republic of China, 61 FR 19026 (April 30, 1996). As discussed 
below, the Russia-wide rate is based on adverse facts available, and 
applies to all entries of subject merchandise.

Application of Facts Available

    Section 776(a) of the Act provides that, if an interested party 
withholds information that has been requested by the Department, fails 
to provide such information in a timely manner or in the form or manner 
requested, significantly impedes a proceeding under the antidumping 
statute, or provides information which cannot be verified, the 
Department shall use, subject to sections 782(d) and (e) of the Act, 
facts otherwise available in reaching the applicable determination. 
Thus, pursuant to section 776(a) of the Act, the Department is required 
to apply, subject to section 782(d), facts otherwise available. 
Pursuant to section 782(e), the Department shall not decline to 
consider such information if all of the following requirements are met: 
(1) The information is submitted by the established deadline; (2) the 
information can be verified; (3) the information is not so incomplete 
that it cannot serve as a reliable basis for reaching the applicable 
determination; (4) the interested party has demonstrated that it acted 
to the best of its ability; and (5) the information can be used without 
undue difficulties.
Russia-Wide Rate
    Section 776(a)(2)(A) of the Act requires the Department to use 
facts available when a party withholds information which has been 
requested by the Department. Additionally, section 782(i)(1) of the Act 
provides that the Department must rely on verified information for 
making a final determination in an antidumping duty investigation. In 
this case, some exporters of the single enterprise failed to respond to 
the Department's request for information and Severstal and NISCO 
withdrew from the investigation prior to verification of their 
questionnaire responses. Thus, consistent with section 782(e)(2) of the 
Act, we have declined to consider information submitted by either 
Severstal or NISCO (including information regarding their eligibility 
for separate rates) because it could not be verified. As a result, 
pursuant to section 776(a) of the Act, in reaching our final 
determination, we have used total facts available for the Russia-wide 
rate because certain entities did not respond and we could not verify 
Severstal's and NISCO's questionnaire responses.
    Section 776(b) of the Act provides that, in selecting from among 
the facts available, the Department may employ adverse inferences when 
an interested party fails to cooperate by not acting to the best of its 
ability to comply with requests for information. See also ``Statement 
of Administrative Action'' accompanying the URAA, H.R. Rep. No. 103-
316, 870 (``SAA''). The statute and SAA provide that such an adverse 
inference may be based on secondary information, including information 
drawn from the petition.
    Because certain exporters in the single entity did not respond to 
our questionnaire and others (i.e., Severstal and NISCO) withdrew from 
this proceeding, we consider the single entity to be uncooperative. In 
this regard, we note that while Severstal and NISCO did submit 
responses to the Department's information requests, their withdrawal 
from this investigation rendered the submitted information unverifiable 
and, hence, unusable in determining a final Russia-wide rate. 
Therefore, we also conclude that Severstal and NISCO (which, as noted 
above in the ``Russia-wide Rate'' section of this notice, are part of 
the single enterprise) have not cooperated to the best of their ability 
in this investigation. Therefore, the Department has determined that, 
in selecting from among the facts available, an adverse inference is 
appropriate. Consistent with Department practice in cases in which a 
respondent has been uncooperative, as adverse facts available, we have 
applied a margin based on information in the petition (see Comment 
below and Initiation Checklist: Certain Cold-Rolled Flat-Rolled Carbon-
Quality Steel Products from Argentina, Brazil, the People's Republic of 
China (``China''), Indonesia, Japan, the Russian Federation 
(``Russia''), Slovakia, South Africa, Taiwan, Thailand, Turkey, and 
Venezuela, Attachment: Revised NVs and Margins for Russia (July 21, 
1999) (``Initiation Checklist'')).
    Section 776(c) of the Act provides that, when the Department relies 
on secondary information, such as the petition, as facts 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 be used has probative value 
(see SAA at 870). The SAA also states that independent sources used for 
corroboration may include, for example, published price lists, official 
import statistics and customs data, and information obtained from 
interested parties during the particular investigation (see id.).
    In order to determine the probative value of the petition margins 
for use as adverse facts available for the purposes of this 
determination, we have examined evidence supporting the petition 
calculations. In accordance with section 776(c) of the Act, to the 
extent practicable, we examined the key elements of the U.S. price and 
normal value (``NV'') calculations on which the petition margin was 
based. In corroborating U.S. price, we compared the data used in the 
petition and found that the price quote used in calculating the highest 
margin in the petition is within the range of the U.S. Customs' average 
unit value data for imports of cold-rolled steel from Russia. For NV 
information, we note that the surrogate value information used in the 
petition is public information, and therefore does not require further 
corroboration. With regard to the factor utilizations used in the 
petition, which were based on petitioner's own production experience 
(adjusted for known differences), the Department is aware of no other 
independent sources of information that would enable us to further 
corroborate this information. However, we note that the SAA (at 870) 
specifically states that

[[Page 5519]]

where ``corroboration may not be practicable in a given circumstance,'' 
the Department may nonetheless apply an adverse inference. Therefore, 
based on this analysis, and mindful of the legislative history 
discussing facts available and corroboration, we consider the highest 
petition margin to be corroborated to the extent practicable and are 
assigning it to the single enterprise as adverse facts available. See 
Facts Available Corroboration Memorandum, dated January 18, 2000. The 
revised highest petition rate, which we have used as the Russia-wide 
rate, is 73.98 percent.

Interested Party Comment

    Comment: Petitioners contend that, since both Severstal and NISCO 
have withdrawn their participation in this investigation, the 
Department is prevented from verifying their data. Petitioners argue 
that the statute provides for application of total facts available 
under such circumstances. Moreover, because respondents have not fully 
cooperated with the Department, petitioners assert that they should be 
assigned a margin based on an adverse inference, citing Notice of Final 
Determination of Sales at Less Than Fair Value: Steel Wire Rod from 
Venezuela, 63 FR 8946, 8947 (February 23, 1998).
    In selecting an adverse inference, petitioners argue that the 
Department's practice is to use the highest of: The highest margin in 
the petition (or initiation); the highest margin calculated for any 
other respondent; or the estimated margin found in the preliminary 
determination. Petitioners contend that respondents withdrew from 
further participation after realizing that the results of the 
investigation would be more favorable to them if based on something 
other than verification results. Therefore, petitioners argue, the 
Department should select the margin calculated for the Preliminary 
Determination to prevent respondents from benefitting from their own 
lack of cooperation.
    Petitioners contend that the Department has the ability to use, as 
facts otherwise available, a margin based on respondent's data even 
though that data is unverified. Petitioners cite to Notice of Final 
Determination of Sales at Less Than Fair Value: Foam Extruded PVC and 
Polystyrene Framing Stock from the United Kingdom, 61 FR 51411 (October 
2, 1996) (``Foam'') and Notice of Final Determination of Sales at Less 
Than Fair Value: Live Cattle from Canada, 64 FR 56738 (October 21, 
1999) (``Cattle'') as examples of the Department using a respondent's 
calculated margin from the preliminary determination as the basis for 
an adverse inference in selecting facts available when the respondent 
has withdrawn from participation in the investigation subsequent to the 
preliminary determination and the data is therefore unverified. 
Petitioners argue that in the instant case, as was the case in Foam and 
Cattle, the respondent Severstal voluntarily submitted data and 
certified to its accuracy, and there is no evidence on the record to 
suggest that the data is aberrational.
    Department's Position: As discussed in the ``Application of Facts 
Available'' section, we agree that respondents should be assigned a 
margin based on adverse facts available. However, we disagree with 
petitioners that we should select the margin calculated for Severstal 
in the preliminary determination.
    The Act and the SAA allow for wide latitude in choosing among the 
facts available. Moreover, we make the determination of the most 
appropriate facts available on a case-by-case basis. Here, we are 
following our recent practice as articulated in Notice of Final 
Determination of Sales at Less Than Fair Value: Hot-Rolled Flat-Rolled 
Carbon-Quality Steel Products From the Russian Federation, 64 FR 38626 
(July 19, 1999) (``Hot-Rolled Steel''). In that case, as here, 
respondents withdrew from the investigation after the preliminary 
determination, precluding verification of their submitted data pursuant 
to section 782(i)(1) of the Act. We stated:

    Under section 782(i)(1) of the Act, the Department must rely on 
verified information for making a final determination in an 
antidumping duty investigation. MMK's and NISCO's withdrawal prior 
to verification of their questionnaire responses prevents the 
Department from using their information to calculate a weighted-
average margin for our final determination.

Id. at 38630.
    We acknowledge our decisions in Foam and in Cattle to use, as 
adverse facts available, information submitted by respondents that 
subsequently withdrew from the proceedings and refused to authorize on-
site verification. However, the facts of Cattle differ from the present 
case to the extent that the information of the respondents who withdrew 
was found to be consistent with verified information otherwise on the 
record. Moreover, we disagree with petitioners that this indicates that 
our policy is to select unverified information for purposes of facts 
available simply because it is the highest rate on the record.
    Finally, we disagree that Severstal will benefit from the 
Department's use of the highest petition rate as adverse facts 
available. While it is true that the highest petition margin is lower 
than the margin calculated for Severstal in the preliminary 
determination, we note that Severstal in fact submitted a revised 
database which the Department was not able to use in issuing its 
preliminary determination due to time constraints. Thus, it would be 
premature to conclude that Severstal benefitted through its withdrawal 
from this investigation, relative to what its final calculated margin 
may have been. As we stated in Hot-Rolled Steel at 38630, use of a 
company's ``unverified information as the basis for the final margin 
could potentially benefit [it] by assigning a margin lower than what 
would have been calculated using verified information.''
    For these reasons, we find that it is appropriate to apply, as 
adverse facts available, the highest margin alleged in the petition.

Final LTFV Margin

    As stated above, the Department entered into a Suspension Agreement 
in this case on January 13, 2000. Pursuant to that Suspension 
Agreement, we have instructed Customs to terminate the suspension of 
liquidation of all entries of cold-rolled steel from Russia. Any cash 
deposits of entries of cold-rolled steel from Russia shall be refunded 
and any bonds shall be released.
    As noted above, we received a request from petitioners to continue 
the investigation. Pursuant to this request, we have continued and 
completed the investigation in accordance with section 734(g) of the 
Act. We have found the following weighted-average dumping margin:

------------------------------------------------------------------------
                                                              Margin
                  Exporter/manufacturer                     percentage
------------------------------------------------------------------------
Russia-Wide Rate........................................           73.98
------------------------------------------------------------------------

ITC Notification

    In accordance with section 735(d) of the Act, we have notified the 
ITC of our determination. Because our final determination is 
affirmative, the ITC will, within 45 days, determine whether these 
imports are materially injuring, or threatening material injury to, the 
U.S. industry. If the ITC determines that material injury, or threat of 
material injury, does not exist, the Agreement will have no force or 
effect, and the investigation shall be terminated. See section 
734(f)(3)(A) of the Act. If the ITC determines that such injury does 
exist, the Agreement shall remain in force but

[[Page 5520]]

the Department shall not issue an antidumping order so long as: (1) The 
Agreement remains in force, (2) the Agreement continues to meet the 
requirements of subsections (d) and (l) of section 734 of the Act, and 
(3) the parties to the Agreement carry out their obligations under the 
Agreement in accordance with its terms. See section 734(f)(3)(B) of the 
Act.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: January 18, 2000.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
[FR Doc. 00-1846 Filed 2-3-00; 8:45 am]
BILLING CODE 3510-DS-P