[Federal Register Volume 66, Number 10 (Tuesday, January 16, 2001)]
[Notices]
[Pages 3540-3542]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-1223]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-815 & A-580-816]


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

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

ACTION: Notice of Final Results of Antidumping Duty Administrative 
Reviews and Intent Not to Revoke Antidumping Duty Order in Part.

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SUMMARY: On September 7, 2000, the Department of Commerce 
(``Department'') published the preliminary results of the 
administrative reviews of the antidumping duty orders and intent not to 
revoke antidumping duty order in part 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, 1998 through July 31, 1999.
    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: January 16, 2001.

FOR FURTHER INFORMATION CONTACT: Michael Panfeld (the POSCO Group), 
Marlene Hewitt (Dongbu) and (Union), 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 202-482-0172 (Panfeld), 202-
482-1385 (Hewitt), 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).

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,

[[Page 3541]]

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.
    Secretary for Import Administration to Troy H. Cribb, Assistant 
Secretary for Import Administration, dated January 5, 2001, which is 
hereby adopted by 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 http://ia.ita.doc.gov. 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 comments 1 and 2 of the POSCO Group's 
company-specific section of the Decision Memo, accessible in B-099 and 
on the Web at http://ia.ita.doc.gov.

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.

Request for Revocation

The POSCO Group

    On August 31, 1999, POSCO submitted a request, in accordance with 
19 CFR 351.222(e), that the Department revoke the order covering cold-
rolled carbon steel flat products from Korea with respect to its sales 
of this merchandise. In accordance with 19 CFR 351.222(e), this request 
was accompanied by certifications from POSCO that it had sold the 
subject merchandise in commercial quantities, at not less than NV for a 
three-year period, including this review period, and would not sell at 
less than NV in the future. POSCO also agreed to 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, POSCO sold the subject merchandise at 
less than NV.
    The Department conducted verifications of POSCO's responses for 
this period of review. In the two prior reviews of this order we 
determined that POSCO sold cold-rolled carbon steel flat products from 
Korea at not less than NV or at de minimis margins. We have determined 
that POSCO sold cold-rolled carbon steel flat products at not less than 
NV during the instant review period.
    However, in determining whether a requesting party is entitled to a 
revocation inquiry, the Department must be able to determine that the 
company has continued to participate meaningfully in the U.S. market 
during each of the three years at issue. See Pure Magnesium from 
Canada, 63 FR 26147 (May 12, 1998). This practice has been codified by 
Sec. 351.222(e) where a party requesting a revocation review is 
required to certify that it has sold the subject merchandise in 
commercial quantities. See also Sec. 351.222(d)(1) of the Department's 
regulations, which state that, ``before revoking an order or 
terminating a suspended investigation, the Secretary must be satisfied 
that, during each of the three (or five) years, there were exports to 
the United States in commercial quantities of the subject merchandise 
to which a revocation or termination will apply.'' (emphasis added); 
See also, the preamble of the Department's latest revision of the 
revocation regulation stating: ``The threshold requirement for 
revocation continues to be that respondent not sell at less than normal 
value for at least three consecutive years and that, during those 
years, respondent exported subject merchandise to the United States in 
commercial quantities'' (emphasis added). Amended Regulation Concerning 
the Revocation of Antidumping and Countervailing Duty Orders, 64 FR 
51236, 51237 (September 22, 1999).
    For purposes of revocation, the Department must be able to 
determine that past margins reflect a company's normal commercial 
activity. Sales during the POR which, in the aggregate, are an 
abnormally small quantity do not provide a reasonable basis for 
determining that the discipline of the order is no longer necessary to 
offset dumping. As the Department has previously stated, the commercial 
quantities requirement is a threshold matter. See e.g., Pure Magnesium 
from Canada, 64 FR 50489, 50490 (September 17, 1999). Thus, a party 
must have meaningfully participated in the marketplace in order to 
substantiate the need for further inquiry regarding whether continued 
imposition of the order is warranted.
    Based on the current record, we find that POSCO did not sell 
merchandise in the United States in commercial quantities during the 
fourth administrative review (one of the three consecutive reviews 
cited by POSCO to support its request for revocation). During the POR 
covered by that review (August 1996 though July 1997), POSCO appeared 
to have made only one sale in the United States. Moreover, the total 
tonnage of this sale was small. See Preliminary Analysis Memo at 
Appendix II (August 30, 2000) (``Prelim. Analysis Memo''). By contrast, 
during the period covered by the antidumping investigation, which was 
only six months long (January 1992 through June 1992), POSCO made 
several thousand sales whose total quantity is 400 times greater than 
the quantity for the fourth administrative review period. In other 
words, POSCO's sales for the entire year covered by the fourth review 
period were only 0.27% of its sales volume during the six-months 
covered by the investigation. Similarly, during the current POR, POSCO 
sold

[[Page 3542]]

approximately 400 times more subject merchandise in the United States 
than during the fourth administrative review.
    Consequently, although POSCO received a de minimis margin during 
the fourth administrative review, this margin was not based on 
commercial quantities within the meaning of the revocation regulation. 
The number of sales and total sales volume is so small, both in 
absolute terms, and in comparison with the period of investigation and 
other review periods (see Prelim. Analysis Memo), that it does not 
provide any meaningful information of POSCO's normal commercial 
experience. Therefore, we find that POSCO did not meaningfully 
participate in the marketplace for purposes of qualifying for a 
revocation analysis and thus, because it has not sold the subject 
merchandise for three years in commercial quantities within the meaning 
of 351.222(e) does not qualify for a revocation analysis. For a full 
discussion, see Decision Memo at Comment 9.

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 Memo, 
accessible in B-099 and on the Web at http://ia.ita.doc.gov.

Final Results of the Reviews

    We determine that the following percentage weighted-average margins 
exist for the period August 1, 1998 through July 31, 1999:

------------------------------------------------------------------------
                                                              Weighted-
               Producer/manufacturer/exporter                  average
                                                                margin
------------------------------------------------------------------------
Certain Cold-Rolled Carbon Steel Flat Products:
  Dongbu...................................................         1.35
  The POSCO Group..........................................         0.12
  Union....................................................         1.53
Certain Corrosion-Resistant Carbon Steel Flat Products:
  Dongbu...................................................         0.13
  The POSCO Group..........................................         2.24
  Union....................................................         0.21
------------------------------------------------------------------------

    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. Timely written 
notification of the return/destruction of APO materials 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: January 5, 2001.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.

Appendix

Issues in Decision Memo

Comments and Responses

General Comments

    1. The Net Financial Expenses of POSCO, Dongbu and Union's U.S. 
Selling Affiliates Should Be Included As Part of POSCO, Dongbu and 
Union's U.S. Indirect Selling Expenses.
    2. Home Market ``credit adjustment''.

Company-Specific Comments

Dongbu Steel Co., Ltd. (``Dongbu'')

    3. Calculation and Allocation of U.S. Indirect Selling Expenses.
    4. Total Entered Value and the Assessment Rate.
    5. Weighting Factors for Quality in the Model Match.

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

    6. Home Market Imputed Credit Expenses.
    7. Treatment of PSI Rebates.
    8. Ministerial Errors.
    9. Eligibility for Revocation.
    10. Treatment of Sales with Warranty Expenses.
    11. Cost Variances.

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

    12. Value Added Tax (``VAT'').
    13. Obsolete Sales in the Home Market.
    14. Home Market Weights v. U.S. Weights.

[FR Doc. 01-1223 Filed 1-12-01; 8:45 am]
BILLING CODE 3510-DS-P