[Federal Register Volume 65, Number 174 (Thursday, September 7, 2000)]
[Notices]
[Pages 54208-54211]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-23004]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[A-485-803]


Certain Cut-to-Length Carbon Steel Plate From Romania: 
Preliminary Results of Antidumping Duty Administrative Review and Final 
Partial Recision of Review

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

ACTION: Notice of preliminary results of antidumping duty 
administrative review and final partial recision of review.

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

SUMMARY: In response to requests from two respondents and the 
petitioners, the Department of Commerce (the Department) is conducting 
an administrative review of the antidumping duty order on certain cut-
to-length carbon steel plate from Romania. This review covers one 
manufacturer/exporter of the subject merchandise. The period of review 
(POR) is August 1, 1998 through July 31, 1999.
    We preliminarily determine that Metalexportimport S.A. made no 
sales of subject merchandise below normal value (NV). If these 
preliminary results are adopted in our final results of administrative 
review, we will instruct the U.S. Customs Service to liquidate all of 
Metalexportimport's entries at an antidumping rate of zero percent. We 
also determine that Windmill International had no shipments during the 
POR. Accordingly, as of the publication of this notice, we are making 
the final rescission of the review with respect to this company.
    Interested parties are invited to comment on these preliminary 
results. Parties who submit argument in this proceeding are requested 
to submit with the argument: (1) A statement of the issue; and (2) a 
brief summary of the argument.

EFFECTIVE DATE: September 7, 2000.

FOR FURTHER INFORMATION CONTACT: Fred Baker or Robert James, 
Enforcement Group III--Office 8, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230;

[[Page 54209]]

telephone (202) 482-2924 (Baker), (202) 482-0649 (James).

SUPPLEMENTARY INFORMATION:

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as amended (the Tariff Act) are references to the provisions 
effective January 1, 1995, the effective date of the amendments made to 
the Tariff Act by the Uruguay Round Agreements Act (URAA). In addition, 
unless otherwise indicated, all references to the Department's 
regulations are to part 351 of 19 CFR (1999).

Background

    The Department published an antidumping duty order on certain cut-
to-length carbon steel plate from Romania on August 19, 1993 (58 FR 
44167). The Department published a notice of ``Opportunity to Request 
an Administrative Review'' of the antidumping duty order for the period 
August 1, 1998 through July 31, 1999 on August 11, 1999 (64 FR 43649). 
On August 30, 1999, respondents Metalexportimport, S.A. (MEI) and Sidex 
S.A. (Sidex) requested that the Department conduct an administrative 
review. On August 31, 1999, Bethlehem Steel Corporation and U.S. Steel 
Group, a Unit of USX Corporation (petitioners) requested an 
administrative review of Windmill International PTE Ltd. of Singapore, 
Windmill International Romania Branch, and Windmill International Ltd. 
(USA) (collectively Windmill). We initiated the review with respect to 
MEI and Sidex on October 1, 1999 (64 FR 53318). We initiated the review 
with respect to Windmill on November 4, 1999 (64 FR 60161).
    In response to our request for information, Windmill reported that 
it had no sales or shipments during the POR. See Windmill's submission 
of November 1, 1999. Our review of Customs import data indicated that 
there were no entries by Windmill during the POR. We gave parties to 
the proceeding the opportunity to present contrary information. We 
received no such information. Accordingly, we are making the final 
rescission of the review with respect to Windmill.
    Under the Tariff Act, the Department may extend the deadline for 
completion of administrative reviews if it determines that it is not 
practicable to complete the review within the statutory time limit of 
245 days. On April 13, 2000, the Department extended the time limit for 
the preliminary results in this case. See Cut-to-Length Carbon Steel 
Plate from Romania; Time Limits, 65 FR 19872.
    The Department is conducting this administrative review in 
accordance with section 751(a) of the Tariff Act.

Scope of the Review

    The products covered in this review include hot-rolled carbon steel 
universal mill plates (i.e., flat-rolled products rolled on four faces 
or in a closed box pass, of a width exceeding 150 millimeters but not 
exceeding 1,250 millimeters and of a thickness of not less than 4 
millimeters, not in coil and without patterns in relief), of 
rectangular shape, neither clad, plated nor coated with metal, whether 
or not painted, varnished, or coated with plastics or other nonmetallic 
substances; and certain hot-rolled carbon steel flat-rolled products in 
straight lengths, of rectangular shape, hot rolled, neither clad, 
plated, nor coated with metal, whether or not painted, varnished, or 
coated with plastics or other nonmetallic substances, 4.75 millimeters 
or more in thickness and of a width which exceeds 150 millimeters and 
measures at least twice the thickness, as currently classifiable in the 
HTS under item numbers 7208.31.0000, 7208.32.0000, 7208.33.1000, 
7208.33.5000, 7208.41.0000, 7208.42.0000, 7208.43.0000, 7208.90.0000, 
7210.70.3000, 7210.90.9000, 7211.11.0000, 7211.12.0000, 7211.21.0000, 
7211.22.0045, 7211.90.0000, 7212.40.1000, 7212.40.5000, and 
7212.50.0000. 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 
bevelled or rounded at the edges. Excluded from this review is grade X-
70 plate.
    These HTS item numbers are provided for convenience and customs 
purposes. The written description remains dispositive.
    The POR is August 1, 1998 through July 31, 1999. This review covers 
sales of certain cut-to-length carbon steel plate by MEI produced by 
Sidex.

Separate Rates Determination

    As discussed in the ``Normal Value'' section, below, we have 
determined that Romania is a non-market economy (NME). It is the 
Department's policy to assign all exporters of the merchandise subject 
to review in NME countries a single rate, unless an exporter can 
demonstrate an absence of government control, both in law (de jure) and 
in fact (de facto), with respect to exports. To establish whether an 
exporter is sufficiently independent of government control to be 
entitled to a separate rate, the Department analyzes the exporter in 
light of the criteria established in Final Determination of Sales at 
Less Than Fair Value: Sparklers from the People's Republic of China, 56 
FR 20588 (May 6, 1991) (Sparklers from China), as amplified in Final 
Determination of Sales at Less Than Fair Value: Silicon Carbide from 
the People's Republic of China, 59 FR 22585 (May 2, 1994) (Silicon 
Carbide from China). Evidence supporting, though not requiring, a 
finding of de jure absence of government control over export activities 
includes: (1) An absence of restrictive stipulations associated with an 
individual exporter's business and export licenses; (2) any legislative 
enactments decentralizing control of companies.
    Evidence relevant to a de facto absence of government control with 
respect to exports is based on four factors, whether the respondent: 
(1) Sets its own export prices independent from the government and 
other exporters; (2) can retain the proceeds from its export sales; (3) 
has the authority to negotiate and sign contracts; and (4) has autonomy 
from the government regarding the selection of management. See Silicon 
Carbide from China at 22585, 22487; see also Sparklers from China at 
20588 and 20589.
    MEI and Sidex both responded to the Department's request for 
information regarding separate rates by providing the requested 
documentation. We have determined that the evidence on the record 
demonstrates an absence of government control, both in law and in fact, 
with respect to MEI's and Sidex's exports, in accordance with the 
criteria identified in Sparklers from China and Silicon Carbide from 
China. For further information, see the memorandum, ``Separate Rates in 
the 1998/1999 Administrative Review of Cut-to-Length Carbon Steel Plate 
from Romania,'' dated the same date as this notice, which is on file in 
our Central Records Unit, room B-099 in the main Commerce building. As 
a result of our analysis, MEI/Sidex is entitled to a separate rate.

Export Price

    We calculated the price of United States sales based on EP, in 
accordance with section 772(a) of the Tariff Act. We based EP on the 
price from MEI to its unaffiliated U.S. customer.
    We calculated EP based on packed prices to unaffiliated customers 
in the United States. Where appropriate, we made deductions from the 
starting price

[[Page 54210]]

for foreign inland freight and domestic brokerage.
    MEI reported the invoice date (as kept in the ordinary course of 
business) as the date of sale. However, that invoice date was after the 
date of shipment, and under the Department's practice the date of sale 
cannot be after the date of shipment. See the October 15, 1999 
questionnaire at I-2. Moreover, we found no evidence suggesting that 
the terms of sale changed after the contract date. Thus, the material 
terms of sale appear to have been established on the contract date. 
Consequently, we used the contract date as the date of sale as 
accordance with Sec. 331.401(i) of the Department's regulations.

Normal Value

    For merchandise exported from an NME country, section 773(c)(1) of 
the Tariff Act provides that the Department shall determine normal 
value (NV) using a factors of production method if (1) the merchandise 
is exported from an NME and (2) available information does not permit 
the calculation of NV using home market or third-country prices under 
section 773(a) of the Tariff Act. The Department has treated Romania as 
an NME country in all previous antidumping cases. See e.g., Tapered 
Roller Bearings and Parts Thereof from Romania: Final Results of 
Antidumping Administrative Review, 63 FR 36390 (July 6, 1998). In 
accordance with section 771(18)(C)(i) of the Tariff Act, any 
determination that a foreign country is an NME shall remain in effect 
until revoked by the administering authority. None of the parties to 
this proceeding has contested such treatment in this review. Moreover, 
parties to this proceeding have not argued that the Romanian steel 
industry is a market-oriented industry. Consequently, we have no basis 
to determine that the available information would permit the 
calculation of NV using Romanian prices or costs. Therefore, with the 
exception of raw material purchases from market-economy suppliers, we 
calculated NV based on factors of production in accordance with 
sections 773(c)(3) and (4) of the Tariff Act and Sec. 351.408(c) of our 
regulations.
    Under the factors of production method, we are required to value 
the NME producer's inputs in a comparable market economy country that 
is a significant producer of comparable merchandise. We determined that 
Indonesia is at a level of economic development comparable to that of 
Romania. We also found that Indonesia is a significant producer of cut-
to-length carbon steel plate. Therefore, for this review, we have used 
Indonesian prices to value the factors of production except where the 
factor was purchased from a market economy supplier and paid for in a 
market economy currency. For a further discussion of the Department's 
selection of a surrogate country, see the memorandum from Jeff May to 
Richard O. Weible: ``Cut-to-Length Carbon Steel Plate (``CLCSP'') from 
Romania: Nonmarket Economy Status and Surrogate Country Selection,'' 
dated April 7, 2000.
    We selected, where possible, publicly available values from 
Indonesia which were: (1) Average non-export values; (2) representative 
of a range of prices within the POR or most contemporaneous with the 
POR; (3) product specific; and (4) tax-exclusive. We valued the factors 
of production as follows:
     Raw Materials: We valued purchases of coal, iron ore 
fines, iron ore lumps, manganese ore, ferromanganese, and ferrovanadium 
using Sidex's purchase prices from market-economy suppliers. We 
included in our calculations Sidex's barter transactions from market-
economy countries because Sidex was able to associate each shipment of 
finished product with a particular barter purchase of raw material 
input. We valued all other raw materials using U.N. Commodity Trade 
Statistics.
     Labor: Section 351.408(c)(3) of our regulations requires 
the use of a regression-based wage rate. We have used the regression-
based wage rate on Import Administration's internet website at 
www.ia.ita.doc.gov/wages. The source for the wage rate is Yearbook of 
Labour Statistics 1999, International Labor Organization, (Geneva: 
1999), Chapter 5B: Wages in Manufacturing.
     Energy: We valued electricity using the International 
Energy Agency's (IEA) Asia Electric Study (1997), and natural gas using 
the IEA's Asia Gas Study (1995). We valued injected coal powder using 
Sidex's purchase prices from market-economy suppliers. We valued all 
other energy inputs using U.N. Commodity Trade Statistics.
     Selling, General and Administrative Expenses (SG&A), 
Overhead, and Profit: We calculated SG&A, overhead, and profit based on 
information obtained from the 1997 annual report of PT Krakatau Steel, 
the largest integrated steel producer in Indonesia. From this statement 
we were able to calculate factory overhead as a percentage of the total 
cost of manufacturing (COM), SG&A as a percentage of the total COM, and 
the profit rate as a percentage of the COM plus SG&A. We made this 
financial statement part of the record in the preliminary results 
analysis memorandum dated the same date as this notice, a public 
version of which is available in the public file. We used this 
statement because it allowed us to calculate a more accurate ratio for 
overhead costs than we could if we used an alternate source suggested 
by petitioners, the financial statement of Jaya Pari PT (see the 
petitioner's May 12, 2000 submission, attachment 7).
    Where any of the factor values were from years other than 1999, we 
applied an inflator or deflator, as appropriate, based on the consumer 
price index so that all factor values would approximate 1999 costs. For 
a complete description of the factor values used, see the preliminary 
results analysis memorandum.
    We also made an offset, where appropriate, for byproducts sold. We 
valued all byproducts using U.N. Commodity Trade Statistics.

Preliminary Results of the Review

    As a result of this review, we preliminarily determine that a 
margin of zero percent exists for sales of subject merchandise by MEI 
for the period August 1, 1998 through July 31, 1999. We are making the 
final rescission in this review with respect to Windmill International 
because we have determined from our review of Customs import data that 
it had no entries during the POR, and no parties presented contrary 
information.
    Within five days of the date of publication of this notice, in 
accordance with 19 CFR 351.224, the Department will disclose its 
calculations. Any interested party may request a hearing within 30 days 
of publication. Any hearing, if requested, will be held 44 days after 
the date of publication, or the first working day thereafter. 
Interested parties may submit written comments (case briefs) no later 
than 30 days after the date of publication. Rebuttal comments (rebuttal 
briefs), which must be limited to issues raised in the case briefs, may 
be filed no later than 37 days after the date of publication of this 
notice. Parties who submit case briefs or rebuttal briefs in this 
proceeding are requested to submit with each argument (1) a statement 
of the issue and (2) a brief summary of the argument, not to exceed 
five pages in length. The Department will publish a notice of the final 
results of the administrative review, which will include the results of 
its analysis of issues raised by the parties, within 120 days of 
publication of these preliminary results.

Cash Deposit

    The Department shall determine, and the U.S. Customs Service shall 
assess,

[[Page 54211]]

antidumping duties on all appropriate entries. The Department will 
issue appraisement instructions directly to the U.S. Customs Service. 
The final results of this review shall be the basis for the assessment 
of antidumping duties on entries covered by this review and for future 
deposits of estimated duties. We will instruct the Customs Service to 
assess antidumping duties on all appropriate entries covered by this 
review if any assessment rate calculated in the final results of this 
review is above de minimis (i.e., at or above 0.5 percent) (see 19 CFR 
351.106(c)(2)). For assessment purposes, if applicable, we intend to 
calculate an importer-specific assessment rate by aggregating the 
dumping margins calculated for all U.S. sales and dividing by the total 
quantity sold.
    Furthermore, the following cash deposit requirements will be 
effective upon publication of the final results of this administrative 
review for all shipments of the subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after the publication 
date, as provided for by section 751(a)(2)(C) of the Tariff Act: (1) 
The cash deposit rate for shipments by the reviewed firms will be the 
rates established in the final results of this administrative review; 
(2) for any previously reviewed Romanian firm and non-Romanian exporter 
with a separate rate, the cash deposit rate will be the company-
specific rate established for the most recent period; (3) for all other 
Romanian exporters, the cash deposit rate will be 75.04 percent, the 
Romania-wide rate made effective by the final determination in the 
less-than-fair-value investigation (see Final Determination of Sales at 
Less Than Fair Value: Certain Cut-to-Length Carbon Steel Plate from 
Romania, 58 FR 37209 (July 9, 1993)); (4) for all other non-Romanian 
exporters of subject merchandise from Romania, the cash deposit rate 
will be the rate applicable to the Romanian supplier of that exporter.
    These deposit requirements, when imposed, shall remain in effect 
until publication of the final results of the next administrative 
review.
    This notice also serves as a preliminary 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 double antidumping duties.
    This administrative review and notice are in accordance with 
sections 751(a)(1) and 777(i)(1) of the Tariff Act.

    Dated: August 30, 2000.
Troy H. Cribb,
Acting Assistant Secretary for Import Administration.
[FR Doc. 00-23004 Filed 9-6-00; 8:45 am]
BILLING CODE 3510-DS-P