[Federal Register Volume 65, Number 49 (Monday, March 13, 2000)]
[Notices]
[Pages 13359-13362]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-6089]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-815 and A-580-816]


Certain Cold-Rolled and Corrosion-Resistant Carbon Steel Flat 
Products From Korea: Final Results of Antidumping Duty Administrative 
Reviews

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

ACTION: Final results of antidumping duty administrative reviews.

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SUMMARY: On September 8, 1999, the Department of Commerce 
(``Department'') published the preliminary results of the 
administrative reviews of the antidumping duty orders on certain cold-
rolled and corrosion-resistant carbon steel flat products from Korea. 
These reviews cover three manufacturers/exporters. The period of review 
(``POR'') is August 1, 1997 through July 31, 1998.
    Based on our analysis of the comments received, we have made 
changes in the margin calculations. Therefore, the final results differ 
from the preliminary results. The final weighted-average dumping 
margins for the reviewed firms are listed below in the section entitled 
``Final Results of the Reviews.''

EFFECTIVE DATE: March 13, 2000.

FOR FURTHER INFORMATION CONTACT: Juanita Chen (Dongbu), Becky Hagen 
(the POSCO Group), Marlene Hewitt (Union), Robert Bolling, or James 
Doyle, Enforcement Group III, Office 9, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue, N.W., Washington, D.C. 20230, telephone 202-482-
0409 (Chen), 202-482-3362 (Hagen), 202-482-1385 (Hewitt), 202-482-3434 
(Bolling), or 202-482-0159 (Doyle), fax 202-482-1388.

SUPPLEMENTARY INFORMATION:   

Applicable Statute

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

Background

    The Department published antidumping duty orders on certain cold-
rolled and corrosion-resistant carbon steel flat products from Korea on 
August 19, 1993. Antidumping Duty Orders on Certain Cold-Rolled Carbon 
Steel Flat Products and Certain Corrosion-Resistant Carbon Steel Flat 
Products from Korea, 58 FR 44159 (August 19, 1993). The Department 
published a notice of Opportunity to Request Administrative Review of 
the antidumping duty orders for the 1997/98 review period on August 11, 
1998. Antidumping or Countervailing Duty Order, Finding, or Suspended 
Investigation; Opportunity to Request Administrative Review, 63 FR 
42821 (August 11, 1998). On August 31, 1998, respondent Union Steel 
Manufacturing Co., Ltd. (``Union'') requested that the Department 
conduct an administrative review of the antidumping duty order on 
corrosion-resistant carbon steel flat products from Korea, and 
respondents Dongbu Steel Co., Ltd. (``Dongbu'') and Pohang Iron and 
Steel Co., Ltd. (``POSCO'') requested that the Department conduct 
administrative reviews of the antidumping duty orders on cold-rolled 
and corrosion-resistant carbon steel flat products from Korea. On 
August 31, 1998, petitioners in the original less-than-fair-value 
(``LTFV'') investigations (AK Steel Corporation; Bethlehem Steel 
Corporation; Inland Steel Industries, Inc.; LTV Steel Company; National 
Steel Corporation; and U.S. Steel Group--a unit of USX Corporation) 
requested that the Department conduct administrative reviews of the 
antidumping duty orders on cold-rolled and corrosion-resistant carbon 
steel flat products from Korea with respect to all three of the 
aforementioned respondents. We initiated these reviews on September 23, 
1998. See 63 FR 51893 (September 29, 1998).
    On August 31, 1999, the Department issued the preliminary results 
of these administrative reviews. See Certain Cold-Rolled and Corrosion-
Resistant Carbon Steel Flat Products From Korea: Preliminary Results of 
Antidumping

[[Page 13360]]

Duty Administrative Reviews, 64 FR 48767 (September 8, 1999) (``Korean 
Flat-Rolled 5th Reviews Prelim.''). The Department has now completed 
these administrative reviews in accordance with section 751 of the Act.

Scope of the Reviews

    The review of ``certain cold-rolled carbon steel flat products'' 
covers cold-rolled (cold-reduced) carbon steel flat-rolled products, of 
rectangular shape, neither clad, plated nor coated with metal, whether 
or not painted, varnished or coated with plastics or other nonmetallic 
substances, in coils (whether or not in successively superimposed 
layers) and of a width of 0.5 inch or greater, or in straight lengths 
which, if of a thickness less than 4.75 millimeters, are of a width of 
0.5 inch or greater and which measures at least 10 times the thickness 
or if of a thickness of 4.75 millimeters or more are of a width which 
exceeds 150 millimeters and measures at least twice the thickness, as 
currently classifiable in the Harmonized Tariff Schedule (``HTS'') 
under item numbers 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, 7215.50.0015, 7215.50.0060, 7215.50.0090, 7215.90.5000, 
7217.10.1000, 7217.10.2000, 7217.10.3000, 7217.10.7000, 7217.90.1000, 
7217.90.5030, 7217.90.5060, 7217.90.5090. Included in this review are 
flat-rolled products of nonrectangular cross-section where such cross-
section is achieved subsequent to the rolling process (i.e., products 
which have been ``worked after rolling'')--for example, products which 
have been beveled or rounded at the edges. Excluded from this review is 
certain shadow mask steel, i.e., aluminum-killed, cold-rolled steel 
coil that is open-coil annealed, has a carbon content of less than 
0.002 percent, is of 0.003 to 0.012 inch in thickness, 15 to 30 inches 
in width, and has an ultra flat, isotropic surface.
    The review of ``certain corrosion-resistant carbon steel flat 
products'' covers flat-rolled carbon steel products, of rectangular 
shape, either clad, plated, or coated with corrosion-resistant metals 
such as zinc, aluminum, or 
zinc-, aluminum-, nickel- or iron-based alloys, whether or not 
corrugated or painted, varnished or coated with plastics or other 
nonmetallic substances in addition to the metallic coating, in coils 
(whether or not in successively superimposed layers) and of a width of 
0.5 inch or greater, or in straight lengths which, if of a thickness 
less than 4.75 millimeters, are of a width of 0.5 inch or greater and 
which measures at least 10 times the thickness or if of a thickness of 
4.75 millimeters or more are of a width which exceeds 150 millimeters 
and measures at least twice the thickness, as currently classifiable in 
the HTS under item numbers 7210.30.0030, 7210.30.0060, 7210.41.0000, 
7210.49.0030, 7210.49.0090, 7210.61.0000, 7210.69.0000, 7210.70.6030, 
7210.70.6060, 7210.70.6090, 7210.90.1000, 7210.90.6000, 7210.90.9000, 
7212.20.0000, 7212.30.1030, 7212.30.1090, 7212.30.3000, 7212.30.5000, 
7212.40.1000, 7212.40.5000, 7212.50.0000, 7212.60.0000, 7215.90.1000, 
7215.90.3000, 7215.90.5000, 7217.20.1500, 7217.30.1530, 7217.30.1560, 
7217.90.1000, 7217.90.5030, 7217.90.5060, 7217.90.5090. Included in 
this review are flat-rolled products of nonrectangular cross-section 
where such cross-section is achieved subsequent to the rolling process 
(i.e., products which have been ``worked after rolling'')--for example, 
products which have been beveled or rounded at the edges. Excluded from 
this review are flat-rolled steel products either plated or coated with 
tin, lead, chromium, chromium oxides, both tin and lead (``terne 
plate''), or both chromium and chromium oxides (``tin-free steel''), 
whether or not painted, varnished or coated with plastics or other 
nonmetallic substances in addition to the metallic coating. Also 
excluded from this review are clad products in straight lengths of 
0.1875 inch or more in composite thickness and of a width which exceeds 
150 millimeters and measures at least twice the thickness. Also 
excluded from this review are certain clad stainless flat-rolled 
products, which are three-layered corrosion-resistant carbon steel 
flat-rolled products less than 4.75 millimeters in composite thickness 
that consist of a carbon steel flat-rolled product clad on both sides 
with stainless steel in a 20%-60%-20% ratio.
    These HTS item numbers are provided for convenience and U.S. 
Customs purposes. The written descriptions remain dispositive.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
these administrative reviews are addressed in the ``Issues and Decision 
Memorandum'' (``Decision Memo'') from Joseph A. Spetrini, Deputy 
Assistant Secretary, Import Administration, to Robert S. LaRussa, 
Assistant Secretary for Import Administration, dated March 6, 2000, 
which is hereby adopted and incorporated by reference into this notice. 
A list of the issues which parties have raised and to which we have 
responded, all of which are in the Decision Memo, is attached to this 
notice as an Appendix. Parties can find a complete discussion of all 
issues raised in these reviews and the corresponding recommendations in 
this public memorandum which is on file at the U.S. Department of 
Commerce, in the Central Records Unit, in room B-099. In addition, a 
complete version of the Decision Memo, accessible in B-099 and on the 
Web at www.ita.doc.gov/import_admin/records/frn. The paper copy and 
electronic version of the Decision Memorandum are identical in content.

Use of Facts Available

    In accordance with section 776 of the Act, we have determined that 
the use of facts available is appropriate for certain portions of our 
analysis of the POSCO Group. For a discussion of our determination with 
respect to this matter, see the POSCO Group's facts available section 
of the Decision Memo, accessible in B-099 and on the Web at 
www.ita.doc.gov/import__admin/records/frn.

Sales Below Cost in the Home Market

    The Department disregarded home market below-cost sales that failed 
the cost test for Dongbu, the POSCO Group, and Union in these final 
results of review.

Duty Absorption

    On October 20, 1998, the petitioners requested that the Department 
determine whether antidumping duties have been absorbed by an exporter 
or producer subject to these administrative reviews, in the event that 
the subject merchandise was sold during this period of review in the 
United States through an importer affiliated with the POSCO Group, 
Dongbu, or Union. Section 751(a)(4) of the Act provides that, if 
requested, the Department will

[[Page 13361]]

determine whether antidumping duties have been absorbed by a foreign 
producer or exporter subject to the order if the subject merchandise is 
sold in the United States through an affiliated importer. Section 
751(a)(4) of the Act authorizes this inquiry during an administrative 
review initiated two years or four years after publication of an order. 
For transition orders as defined in section 751(c)(6)(C) of the Act 
(i.e., antidumping orders in effect as of January 1, 1995), section 
351.213(j)(2) of the Department's regulations provides that the 
Department will make such as determination for any administrative 
review initiated in 1996 or 1998. The orders in these cases are 
transition orders, which went into effect in 1993. See Notice of 
Antidumping Duty Orders: Certain Cold-Rolled Carbon Steel Flat Products 
and Certain Corrosion-Resistant Carbon Steel Flat Products from Korea, 
58 FR 44159 (August 19, 1993). Because this review was initiated in 
1998, and the petitioners made a timely request for a duty absorption 
determination (i.e., within 30 days of the date of publication of the 
notice of initiation of this review), we find that the regulatory 
requirements for a duty absorption determination have been met. See 19 
CFR 351.213(j).
    We have determined that duty absorption has occurred with respect 
to the percentages of sales shown below which were made through the 
respondents' U.S. affiliates and which had positive dumping margins:

------------------------------------------------------------------------
                                                              Percentage
                                                               of U.S.
                                                             affiliate's
               Producer/manufacturer/exporter                 sales with
                                                               dumping
                                                               margins
------------------------------------------------------------------------
             Certain Cold-Rolled Carbon Steel Flat Products
------------------------------------------------------------------------
The POSCO Group............................................        2.70
------------------------------------------------------------------------
         Certain Corrosion-Resistant Carbon Steel Flat Products
------------------------------------------------------------------------
Dongbu.....................................................        20.81
The POSCO Group............................................         6.85
Union......................................................         4.49
------------------------------------------------------------------------

    With respect to the above companies, we presume that the duties 
will be absorbed for those sales which were dumped. This presumption 
can be rebutted with evidence that the unaffiliated purchasers in the 
United States will pay the ultimately assessed duty. However, there is 
no such evidence on the record. Although we afforded interested parties 
the opportunity to submit evidence that unaffiliated purchasers in the 
United States will absorb duties, no party availed itself of this 
opportunity. Therefore, under these circumstances, we have determined 
that antidumping duties have been absorbed by the above-listed firms on 
the percentages of U.S. sales indicated.

Request for Revocation

The POSCO Group

    On August 31, 1998, the POSCO Group submitted a request, in 
accordance with 19 CFR 351.222(e), that the Department revoke the 
orders covering certain cold-rolled carbon steel flat products and 
certain corrosion-resistant carbon steel flat products from Korea with 
respect to its sales of this merchandise.
    In accordance with 19 CFR 351.222(e), these requests were 
accompanied by a certification from POSCO that it had not sold the 
subject merchandise at less than normal value (``NV'') for a three-year 
period, including this review period, and would not do so in the 
future. POSCO also agreed to its immediate reinstatement of the 
relevant antidumping order, as long as any firm is subject to the 
order, if the Department concludes under 19 CFR 351.216 that, 
subsequent to revocation, POSCO sold the subject merchandise at less 
than NV. In the third administrative reviews, we determined that the 
POSCO Group sold both cold-rolled and corrosion-resistant carbon steel 
flat products at less than normal value. See Certain Cold-Rolled and 
Corrosion-Resistant Carbon Steel Flat Products from Korea: Final 
Results of Antidumping Duty Administrative Reviews, 63 FR 13170 (March 
18, 1998), as amended at 63 FR 20572 (April 27, 1998). Although the 
final results of the third reviews are subject to litigation, that 
litigation is not yet complete. In the fourth administrative reviews, 
the POSCO Group had de minimis margins for both products. See Certain 
Cold-Rolled and Corrosion-Resistant Carbon Steel Flat Products from 
Korea: Final Results of Antidumping Duty Administrative Reviews, 64 FR 
10982 (March 8, 1999). Consequently, we have determined that because 
the POSCO Group does not have three consecutive years of zero or de 
minimis margins on cold-rolled carbon steel flat products and 
corrosion-resistant carbon steel flat products, it is not eligible for 
revocation of these orders under 19 CFR 351.222(e).

Dongbu

    On August 31, 1998, Dongbu submitted a request, in accordance with 
19 CFR 351.222(e), that the Department revoke the orders covering 
certain corrosion-resistant carbon steel flat products from Korea with 
respect to its sales of this merchandise.
    In accordance with 19 CFR 351.222(e), the request was accompanied 
by a certification from Dongbu that it had not sold the subject 
merchandise at less than NV for a three-year period, including this 
review period, and would not do so in the future. Dongbu also agreed to 
its immediate reinstatement in the relevant antidumping order, as long 
as any firm is subject to the order, if the Department concludes under 
19 CFR 351.216 that, subsequent to revocation, it sold the subject 
merchandise at less than NV. In the third administrative review, we 
determined that Dongbu sold corrosion-resistant carbon steel flat 
products at less than normal value. See Certain Cold-Rolled and 
Corrosion-Resistant Carbon Steel Flat Products from Korea: Final 
Results of Antidumping Duty Administrative Reviews, 63 FR 13170 (March 
18, 1998), as amended at 63 FR 20572 (April 27, 1998). In the fourth 
administrative review, we determined that Dongbu was selling corrosion-
resistant carbon steel products at less than normal value. See Certain 
Cold-Rolled and Corrosion-Resistant Carbon Steel Flat Products from 
Korea: Final Results of Antidumping Duty Administrative Reviews, 64 FR 
10982 (March 8, 1999). Consequently, we determine that because Dongbu 
does not have three consecutive years of zero or de minimis margins on 
corrosion-resistant steel, it is not eligible for revocation of the 
order on corrosion-resistant steel under 19 CFR 351.222(e).

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made certain 
changes in the margin calculations. We have also corrected certain 
programming and clerical errors in our preliminary results, where 
applicable. Any alleged programming or clerical errors with which we do 
not agree are discussed in the relevant sections of the ``Decision 
Memorandum,'' accessible in B-099 and on the Web at www.ita.doc.gov/import_admin/records/frn.

Final Results of the Reviews

    We determine that the following percentage weighted-average margins 
exist for the period August 1, 1997 through July 31, 1998:

------------------------------------------------------------------------
                                                              Weighted-
               Producer/Manufacturer/Exporter                  average
                                                                margin
------------------------------------------------------------------------
             Certain Cold-Rolled Carbon Steel Flat Products
------------------------------------------------------------------------
Dongbu.....................................................         0.00

[[Page 13362]]

 
The POSCO Group............................................         0.41
Union......................................................        0.00
------------------------------------------------------------------------
         Certain Corrosion-Resistant Carbon Steel Flat Products
------------------------------------------------------------------------
Dongbu.....................................................         1.29
The POSCO Group............................................         0.68
Union......................................................         0.14
------------------------------------------------------------------------

    The Department shall determine, and the U.S. Customs Service 
(``Customs'') shall assess, antidumping duties on all appropriate 
entries. In accordance with 19 CFR 351.212(b), we have calculated 
exporter/importer-specific assessment rates. With respect to both 
export price and constructed export price sales, we divided the total 
dumping margins for the reviewed sales by the total entered value of 
those reviewed sales for each importer. We will direct Customs to 
assess the resulting percentage margins against the entered Customs 
values for the subject merchandise on each of that importer's entries 
under the relevant order during the review period.

Cash Deposit Requirements

    The following deposit requirements will be effective upon 
publication of this notice of final results of administrative reviews 
for all shipments of cold-rolled and corrosion-resistant carbon steel 
flat products from Korea entered, or withdrawn from warehouse, for 
consumption on or after the date of publication, as provided by section 
751(a)(1) of the Act: (1) The cash deposit rates for the reviewed 
companies will be the rates shown above except that, for firms whose 
weighted-average margins are less than 0.5 percent and therefore de 
minimis, the Department shall require no deposit of estimated 
antidumping duties; (2) for previously reviewed or investigated 
companies not listed above, the cash deposit rate will continue to be 
the company-specific rate published for the most recent period; (3) if 
the exporter is not a firm covered in this review, a prior review, or 
the original less than fair value (``LTFV'') investigation, but the 
manufacturer is, the cash deposit rate will be the rate established for 
the most recent period for the manufacturer of the merchandise; and (4) 
the cash deposit rate for all other manufacturers or exporters will 
continue to be 14.44 percent (for certain cold-rolled carbon steel flat 
products) or 17.70 percent (for certain corrosion-resistant carbon 
steel flat products). These rates are the ``all others'' rates from the 
LTFV investigations. See Antidumping Duty Orders on Certain Cold-Rolled 
Carbon Steel Flat Products and Certain Corrosion-Resistant Carbon Steel 
Flat Products from Korea, 58 FR 44159 (August 19, 1993).
    These deposit requirements shall remain in effect until publication 
of the final results of the next administrative review.
    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f) to file a certificate regarding 
the reimbursement of antidumping duties prior to liquidation of the 
relevant entries during this review period. Failure to comply with this 
requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of doubled antidumping duties.
    This notice also serves as the only reminder to parties subject to 
administrative protective orders (``APO'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305 or conversion to 
judicial protective order is hereby requested. Failure to comply with 
the regulations and terms of an APO is a violation which is subject to 
sanction.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(a)(1) and 777(i) of the Act.

    Dated: March 6, 2000.
Robert S. LaRussa,
Assistant Secretary for Import Administration.

Appendix

    Issues in Decision Memo

Comments and Responses

General Comments

    1. Normal Value
    A. Currency Conversions

Company-Specific Comments

Dongbu Steel Co., Ltd.

    1. EP/CEP.
    A. Calculation and Allocation of U.S. Indirect Selling Expense.
    2. COP/CV.
    A. Use of Fourth Administrative Reviews Databases.
    3. Other AD Issues.
    A. U.S. Date of Sale.

Pohang Iron and Steel Co., Ltd. (``POSCO''), Pohang Coated Steel 
Co., Ltd. (``POCOS''), and Pohang Steel Industries Co., Ltd. 
(``PSI'') (collectively, ``POSCO Group'')

    1. Facts Available
    A. Adjustment to Costs for Differences in Coating Weight
    B. Model Match Criteria/Yield Strength
    C. Weighted-Average Costs
    D. Cost Reconciliation
    2. COP/CV
    A. Start-up Costs
    B. Major Input/Transactions Disregarded Rule
    C. Conversion Costs
    3. EP/CEP
    A. CEP v. EP Classification
    4. Other AD Issues
    A. Level-of-Trade
    B. Home Market Credit
    C. Home Market Downstream Sales Credit
    D. Product Characteristics for Downstream Sales
    E. Overrun Sales

Union Steel Manufacturing Co., Ltd. (``Union'')

    1. Other AD Issues
    A. Home Market Credit Days
    B. Prime v. Non-Prime

[FR Doc. 00-6089 Filed 3-10-00; 8:45 am]
BILLING CODE 3510-DS-P