[Federal Register Volume 66, Number 136 (Monday, July 16, 2001)]
[Notices]
[Pages 37002-37004]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-17718]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-791-809]


Notice of Final Determination of Sales at Less Than Fair Value: 
Certain Hot-Rolled Carbon Steel Flat Products from South Africa

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

EFFECTIVE DATE: July 16, 2001.

FOR FURTHER INFORMATION CONTACT: Doug Campau or Maureen Flannery at 
(202) 482-1395 or (202) 482-3020, respectively; Office of Antidumping/
Countervailing Duty Enforcement VII, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230.

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions effective January 1, 1995, the effective 
date of the amendments made to the Tariff Act of 1930 (the Act) by the 
Uruguay Round Agreements Act (URAA). In addition, unless otherwise 
indicated, all citations to the

[[Page 37003]]

Department of Commerce (Department) regulations are to the regulations 
at 19 CFR part 351 (April 2001).

Final Determination

    We determine that certain hot-rolled carbon steel flat products 
(HR) from South Africa are being, or are likely to be sold, in the 
United States at less than fair value (LFTV), as provided in section 
735 of the Act. The estimated margins are shown in the ``Suspension of 
Liquidation'' section of this notice.

Background

    On May 3, 2001, the Department published its preliminary 
determination in the above-captioned antidumping duty investigation. 
See Notice of Preliminary Determination of Sales at Less Than Fair 
Value: Certain Hot-Rolled Carbon Steel Flat Products from South Africa, 
66 FR 22173 (May 3, 2001) (Preliminary Determination).
    On January 25, 2001, Saldahna Steel Limited (Saldanha), and Iscor 
Limited (Iscor), two of the three mandatory respondents, informed the 
Department that they would not be responding to the Department's 
questionnaire. Just prior to publication of the Preliminary 
Determination, Highveld Steel and Vanadium Corporation Limited 
(Highveld)---the only respondent to have submitted information in 
response to the Department's questionnaires--was afforded an additional 
opportunity to submit information to the record via supplemental cost 
and sales questionnaires issued by the Department on April 10 and April 
17, 2001, respectively. The Department received the responses to its 
April 10 and April 17, 2001 supplemental cost and sales questionnaires 
on April 20 and 27, 2001, respectively. The April 27, 2001 supplemental 
sales questionnaire response was filed on Highveld's behalf by 
Highveld's affiliated U.S. reseller. On May 23, 2001, we rejected the 
submission filed by Highveld's affiliated U.S. reseller. See letters to 
Highveld and Highveld's affiliated U.S. reseller dated May 23, 2001. On 
May 23, 2001, we rejected Highveld's submission(s). See letter to 
Highveld dated May 23, 2001.
    We gave interested parties an opportunity to comment on the 
preliminary determination. No case or rebuttal briefs were submitted. 
On June 4, 2001, the petitioners requested a hearing in this case. On 
June 13, 2001, the petitioners withdrew their request.

Scope of Investigation

    For purposes of this investigation, the products covered are 
certain hot-rolled carbon steel flat products of a rectangular shape, 
of a width of 0.5 inch or greater, neither clad, plated, nor coated 
with metal and whether or not painted, varnished, or coated with 
plastics or other non-metallic substances, in coils (whether or not in 
successively superimposed layers), regardless of thickness, and in 
straight lengths, of a thickness of less than 4.75 mm and of a width 
measuring at least 10 times the thickness. Universal mill plate (i.e., 
flat-rolled products rolled on four faces or in a closed box pass, of a 
width exceeding 150 mm, but not exceeding 1250 mm, and of a thickness 
of not less than 4.0 mm, not in coils and without patterns in relief) 
of a thickness not less than 4.0 mm is not included within the scope of 
this investigation. Specifically included within the scope of this 
investigation are vacuum degassed, fully stabilized (commonly referred 
to as interstitial-free (IF)) steels, high strength low alloy (HSLA) 
steels, and the substrate for motor lamination steels. IF steels are 
recognized as low carbon steels with micro-alloying levels of elements 
such as titanium or niobium (also commonly referred to as columbium), 
or both, added to stabilize carbon and nitrogen elements. HSLA steels 
are recognized as steels with micro-alloying levels of elements such as 
chromium, copper, niobium, vanadium, and molybdenum. The substrate for 
motor lamination steels contains micro-alloying levels of elements such 
as silicon and aluminum.
    Steel products to be included in the scope of these investigations, 
regardless of definitions in the Harmonized Tariff Schedule of the 
United States (HTS), are products in which: (i) Iron predominates, by 
weight, over each of the other contained elements; (ii) the carbon 
content is 2 percent or less, by weight; and (iii) 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, or
    0.15 percent of vanadium, or
    0.15 percent of zirconium.
    All products that meet the physical and chemical description 
provided above are within the scope of this investigation unless 
otherwise excluded. The following products, by way of example, are 
outside or specifically excluded from the scope of this investigation:
     Alloy hot-rolled steel products in which at least one of 
the chemical elements exceeds those listed above (including, e.g., ASTM 
specifications A543, A387, A514, A517, A506).
     Society of Automotive Engineers (SAE)/American Iron and 
Steel Institute (AISI) grades of series 2300 and higher.
     Ball bearings steels, as defined in the HTS.
     Tool steels, as defined in the HTS.
     Silico-manganese (as defined in the HTS) or silicon 
electrical steel with a silicon level exceeding 2.25 percent.
     ASTM specifications A710 and A736.
     USS Abrasion-resistant steels (USS AR 400, USS AR 500).
     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 HTS.
    The merchandise subject to this investigation is classified in the 
HTS at subheadings: 7208.10.15.00, 7208.10.30.00, 7208.10.60.00, 
7208.25.30.00, 7208.25.60.00, 7208.26.00.30, 7208.26.00.60, 
7208.27.00.30, 7208.27.00.60, 7208.36.00.30, 7208.36.00.60, 
7208.37.00.30, 7208.37.00.60, 7208.38.00.15, 7208.38.00.30, 
7208.38.00.90, 7208.39.00.15, 7208.39.00.30, 7208.39.00.90, 
7208.40.60.30, 7208.40.60.60, 7208.53.00.00, 7208.54.00.00, 
7208.90.00.00, 7211.14.00.90, 7211.19.15.00, 7211.19.20.00, 
7211.19.30.00, 7211.19.45.00, 7211.19.60.00, 7211.19.75.30, 
7211.19.75.60, and 7211.19.75.90. Certain hot-rolled flat-rolled carbon 
steel flat products covered by this investigation, including: vacuum 
degassed fully stabilized; high strength low alloy; and the substrate 
for motor lamination steel may also enter under the following tariff 
numbers: 7225.11.00.00, 7225.19.00.00, 7225.30.30.50, 7225.30.70.00, 
7225.40.70.00, 7225.99.00.90, 7226.11.10.00, 7226.11.90.30, 
7226.11.90.60, 7226.19.10.00, 7226.19.90.00, 7226.91.50.00, 
7226.91.70.00, 7226.91.80.00, and 7226.99.00.00. Subject merchandise 
may also enter under 7210.70.30.00, 7210.90.90.00, 7211.14.00.30, 
7212.40.10.00, 7212.40.50.00, and 7212.50.00.00. Although the HTS 
subheadings are provided for

[[Page 37004]]

convenience and U.S. Customs purposes, the written description of the 
merchandise under investigation is dispositive.

Analysis of Comments Received

    As noted above, there were no case or rebuttal briefs submitted in 
this investigation, nor was there a hearing. There were, however, 
further supplemental questionnaire responses supplied by Highveld and 
its U.S. affiliate after the publication of the Preliminary 
Determination. An explanation of the history of this investigation 
following the preliminary determination can be found in the Issues and 
Decision Memorandum for Final Determination (Decision Memorandum), 
dated July 9, 2001, which is hereby adopted by this notice. The 
Decision Memorandum is on file in the Central Records Unit, room B-099 
(``B-099'') of the main Department building. In addition, a complete 
version of the Decision Memorandum can be accessed directly 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 the Preliminary Determination, the Department applied total 
adverse facts available to each mandatory respondent. Specifically, the 
Department assigned the mandatory respondents the rate of 9.28 
percent--the margin calculated from information in the petition and 
information gathered by the Department, and used for initiation. The 
Department also applied the 9.28 percent margin as the ``all others'' 
rate. The interested parties did not object to the use of adverse facts 
available, nor to the Department's choice of facts available.
    Subsequent to the Preliminary Determination, both Highveld and its 
affiliated U.S. reseller submitted additional information to the 
Department, but for reasons discussed in greater detail in the Decision 
Memorandum, we have continued to use facts available for purposes of 
this final determination. As also discussed in the Decision Memorandum, 
notwithstanding these submissions, we have determined that Highveld did 
not cooperate to the best of its ability to comply with the 
Department's requests for information. Therefore, the Department 
continues to find, pursuant to section 776(b) of the Act, that the use 
of adverse facts available is warranted. Consequently, we have 
continued to apply the rate of 9.28 percent for purposes of this final 
determination.

Affiliation

    In the Preliminary Determination, the Department concluded that, in 
accordance with section 771(33)(E) of the Act, Iscor and Saldanha are 
affiliated for purposes of this proceeding. No new facts were 
submitted, or arguments made, which would cause the Department to 
revisit this decision. Therefore, we continue to determine that these 
companies are affiliated for purposes of this proceeding.

Suspension of Liquidation

    Pursuant to section 735(c)(1)(B) of the Act, we are instructing the 
U.S. Customs Service to continue to suspend liquidation of all entries 
of HR from South Africa that are entered, or withdrawn from warehouse, 
for consumption on or after May 3, 2001 (the date of publication of the 
Preliminary Determination in the Federal Register). The Customs Service 
shall continue to require a cash deposit or the posting of a bond equal 
to the estimated amount by which the normal value exceeds the U.S. 
price as shown below. The suspension of liquidation instructions will 
remain in effect until further notice.
    We determine that the following percentage margins exist for the 
period October 1, 1999 through September 30, 2000:

------------------------------------------------------------------------
                                                               Margin
                   Exporter/Manufacturer                      (Percent)
------------------------------------------------------------------------
Highveld Steel and Vanadium Corporation Limited...........         9.28
Iscor Limited/Saldanha Steel Limited......................         9.28
All Others................................................         9.28
------------------------------------------------------------------------

ITC Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (ITC) of our determination. As our final 
determination is affirmative, the ITC will determine, within 45 days, 
whether these imports are causing material injury, or threat of 
material injury, to an industry in the United States. If the ITC 
determines that material injury, or threat of injury does not exist, 
the proceeding will be terminated and all securities posted will be 
refunded or cancelled. If the ITC determines that such injury does 
exist, the Department will issue an antidumping duty order directing 
Customs officials to assess antidumping duties on all imports of the 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation.

Notification Regarding APO

    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305. Timely notification of return/
destruction of APO materials or conversion to judicial protective order 
is hereby requested. Failure to comply with the regulations and the 
terms of an APO is a sanctionable violation.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: July 9, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 01-17718 Filed 7-13-01; 8:45 am]
BILLING CODE 3510-DS-P