[Federal Register Volume 66, Number 171 (Tuesday, September 4, 2001)]
[Notices]
[Pages 46258-46260]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-22147]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-122-823]


Certain Cut-to-Length Carbon Steel Plate From Canada: Preliminary 
Results of Antidumping Duty Administrative Review

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

ACTION: Notice of preliminary results of antidumping duty 
administrative review.

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SUMMARY: In response to a request from Clayson Steel Inc. (Clayson), 
the Department of Commerce (the Department) is conducting an 
administrative review of the antidumping duty order on certain cut-to-
length carbon steel plate (CTL plate) from Canada. This review covers 
one manufacturer/exporter of CTL plate, Clayson, for the period August 
1, 1999 through December 31, 1999.
    We have preliminarily determined that sales have been made below 
normal value (NV) by the company subject to this review. See 
``Preliminary Results of Review'' section below for the company-
specific rate. If these preliminary results are adopted in our final 
results of this administrative review, we will instruct the U.S. 
Customs Service to assess antidumping duties based on the difference 
between the export price (EP) and the NV.

EFFECTIVE DATE: September 4, 2001.

FOR FURTHER INFORMATION CONTACT: Mark Hoadley at (202) 482-0666 or 
Julio Fernandez at (202) 482-0190, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

The Applicable Statute

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

Background

    The Department published in the Federal Register antidumping duty 
orders on certain corrosion-resistant carbon steel flat products (CORE) 
and CTL plate from Canada on August 19, 1993. See Antidumping Duty 
Orders: Certain Corrosion-Resistant Carbon Steel Flat Products and 
Certain Cut-to-Length Carbon Steel Plate from Canada, 58 FR 44162 
(August 19, 1993). The Department received timely requests from 
interested parties to conduct administrative reviews for the August 1, 
1999 through July 31, 2000 period, pursuant to section 351.213(b) of 
the Department's regulations. On September 26, 2000, we initiated an 
administrative review of three manufacturers/exporters of CTL plate: 
Stelco Inc. (Stelco), Clayson, and Gerdau MRM Steel (MRM).
    On December 8, 2000, the Department revoked the antidumping duty 
order on CTL plate from Canada, effective January 1, 2000, pursuant to 
a determination by the U.S. International Trade Commission (ITC) under 
section 751(c) of the Act. See Revocation of Antidumping and 
Countervailing Duty Orders on Certain Carbon Steel Products From 
Canada, Germany, Korea, the Netherlands, and Sweden, 65 FR 78467 
(December 15, 2000) (Revocation Notice). As a result of the revocation 
of this order, the period of review (POR) for the seventh 
administrative review of CTL plate is shortened to the period from 
August 1, 1999 through December 31, 1999.
    Under section 751(a)(3)(A) of the Act, the Department may extend 
the deadline for completion of an administrative review if it 
determines that it is not practicable to complete the review within the 
statutory time limit of 365 days. On March 1, 2001, the Department 
published a notice of extension of the time limit for the preliminary 
results in this review to August 31, 2001. See Certain Corrosion-
Resistant Carbon Steel Flat Products and Certain Cut-to-Length Carbon 
Steel Plate: Extension of Time Limits for Preliminary Results of 
Antidumping Administrative Review, 66 FR 12924 (March 1, 2001).
    On May 8, 2001, MRM withdrew its request for a review of CTL plate. 
The petitioner withdrew its request for an administrative review of CTL 
plate with respect to Stelco and MRM, the only producers of CTL plate 
for which it had requested a review, on December 13, 2000, and on May 
11, 2001, respectively. On July 27, 2001, the Department rescinded, in 
part, the antidumping duty administrative review of CTL plate, due to 
the withdrawal of requests for review by the interested parties. See 
Certain Corrosion-Resistant Carbon Steel Flat Products and Certain Cut-
to-Length Carbon Steel Plate from Canada: Rescission in Part and in 
Whole of Antidumping Duty Administrative Reviews, 66 FR 39145 (July 27, 
2001).
    The Department is conducting this review in accordance with section 
751(a) of the Act.

Scope of Review

    CTL plate includes 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 
coils 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 Harmonized Tariff 
Schedule of the United States (HTSUS) under item numbers 7208.40.3030, 
7208.40.3060, 7208.51.0030, 7208.51.0045, 7208.51.0060, 7208.52.0000, 
7208.53.0000, 7208.90.0000, 7210.70.3000, 7210.90.9000, 7211.13.0000, 
7211.14.0030, 7211.14.0045, 7211.90.0000, 7212.40.1000, 7212.40.5000, 
and 7212.50.0000. Included in this review are flat-rolled products of 
non-

[[Page 46259]]

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. Excluded from this review is grade X-
70 plate. Also excluded is cut-to-length carbon steel plate meeting the 
following criteria: (1) 100% dry steel plates, virgin steel, no scrap 
content (free of Cobalt-60 and other radioactive nuclides); (2) .290 
inches maximum thickness, plus 0.0, minus .030 inches; (3) 48.00 inch 
wide, plus .05, minus 0.0 inches; (4) 10 foot lengths, plus 0.5, minus 
0.0 inches; (5) flatness, plus/minus 0.5 inch over 10 feet; (6) AISI 
1006; (7) tension leveled; (8) pickled and oiled; and (9) carbon 
content, 0.03 to 0.08 (maximum).
    The HTSUS item numbers are provided for convenience and U.S. 
Customs Service (Customs) purposes. The written description remains 
dispositive of the scope of this review.

Product Comparisons

    In accordance with section 771(16) of the Act, we considered all 
products produced by the respondent that are covered by the description 
in the ``Scope of Review'' section above and sold in the home market 
during the POR to be foreign like products for purposes of determining 
appropriate product comparisons to U.S. sales. After conducting a 
sales-below-cost test, we had exact matches remaining between products 
sold in the U.S. and the home market for all U.S. sales, and, 
therefore, did not have to resort to constructed value (CV) or 
difference in merchandise (DIFMER) adjustments.

Normal Value Comparisons

    To determine whether sales of subject merchandise to the United 
States were made at less than NV, we compared the EP to NV, as 
described in the ``United States Price'' and ``Normal Value'' sections 
of this notice. In accordance with section 777A(d)(2) of the Act, we 
calculated monthly weighted-average prices for NV and compared these to 
individual U.S. transaction prices.

United States Price

    Clayson had no constructed export price (CEP) sales. The Department 
calculated EP for Clayson based on packed, delivered prices to 
customers in the United States. Pursuant to section 772(c)(2)(A) of the 
Act, we made deductions from the U.S. gross unit price for U.S. 
movement expenses (i.e., U.S. brokerage and duty expenses, and inland 
freight).
    We determined invoice date was the proper measurement of date of 
sale for Clayson's transactions, pursuant to both the commercial 
realities of Clayson's home market and U.S. sales during the POR and 
the Department's preference for invoice date, as articulated in section 
351.401(i) of the Department's regulations.

Normal Value

    The Department determines the viability of the home market and the 
comparison market by comparing the aggregate quantity of home market 
and U.S. sales. Section 351.404(b)(2) of the Department's regulations 
states that if ``the aggregate quantity * * * of the foreign like 
product sold by an exporter or producer in a country is 5 percent or 
more of the aggregate quantity * * * of its sales of the subject 
merchandise to the United States'' then it has a viable home market for 
the subject merchandise. 19 CFR 351.404(b)(2) (defining ``sufficient 
quantity''). We have determined that Clayson has a viable home market 
pursuant to this provision. Moreover, there is no evidence on the 
record supporting a particular market situation in the exporting 
company's country that would not permit a proper comparison of home 
market and U.S. prices. Therefore, in accordance with section 
773(a)(1)(B)(i) of the Act, we have based NV on the price at which the 
foreign like product was first sold for consumption in the home market, 
in the usual commercial quantities and in the ordinary course of trade 
and, to the extent practicable, at the same level of trade (LOT) as the 
U.S. sale.
    Clayson made no home market sales to affiliated parties. Home 
market prices were based on the packed, delivered prices to purchasers 
in the home market. We made deductions from the home market price for 
an early payment discount, home market direct selling expenses (i.e., 
credit expenses), home market movement expenses (i.e., inland freight), 
and home market packing expenses in accordance with 773(a)(6)(B) of the 
Act. Furthermore, we added to the home market price amounts for U.S. 
direct selling expenses (i.e., credit expenses) and U.S. packing 
expenses in accordance with 773(a)(6)(A) of the Act.
    As discussed above, pursuant to both the commercial realities of 
Clayson's home market and U.S. sales during the POR and the 
Department's regulatory preference for invoice date, the Department 
determined that the date of sale for Clayson's transactions was best 
reflected in the date of invoice.

Level of Trade

    In accordance with section 773(a)(1)(B) of the Act, to the extent 
practicable, we determine NV based on sales in the comparison market at 
the same LOT as U.S. sales. In both the home market and the United 
States, Clayson reported one LOT and one distribution system, with one 
class of customer, original equipment manufacturers (OEMs), in both the 
home and U.S. markets. We compared the selling functions performed at 
the home market LOT with those performed at the U.S. LOT and found them 
to be substantially similar.

Preliminary Results of Review

    As a result of our review, we preliminarily determine the weighted-
average dumping margin for the period August 1, 1999 through December 
31, 1999 to be as follows:
    Manufacturer/Exporter: Clayson.
    Margin Percentage: 1.37%.
    The Department will disclose to the parties to the proceeding 
calculations performed in connection with these preliminary results of 
review within ten days after the date of public announcement, or, if 
there is no public announcement, within five days after the date of 
publication of these preliminary results of review.
    Any interested party may request a hearing within 30 days of 
publication. Any hearing, if requested, will be held 37 days after the 
date of publication or the first business day thereafter. Case briefs 
from interested parties may be submitted not later than 30 days after 
publication. Rebuttal briefs, limited to issues raised in case briefs, 
may be filed not later than five days after the date of filing of case 
briefs. The Department will publish the final results of this 
administrative review, including its analysis of issues raised in the 
case and rebuttal briefs, not later than 120 days after the date of 
publication of this notice.
    Upon issuance of the final results of review, the Department shall 
determine, and Customs shall assess, antidumping duties on all 
appropriate entries. In accordance with 19 CFR 351.212(b), we will 
calculate importer-specific ad valorem duty assessment rates. This rate 
will be assessed uniformly on all entries of each particular importer 
made during the POR.
    As noted above, as a result of a sunset review by the ITC, the 
Department has revoked the antidumping duty order for CTL plate from 
Canada, effective January 1, 2000. See Revocation Notice. Therefore, we 
have instructed Customs to terminate suspension of liquidation

[[Page 46260]]

for all entries of CTL plate made on or after January 1, 2000, and 
further calculation of antidumping cash deposit requirements for this 
merchandise is no longer necessary.
    This notice 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 is being conducted and the notice 
published in accordance with sections 751(a)(1) of the Act (19 U.S.C. 
1675(a)(1)) and 777(i)(1) of the Act (19 U.S.C 1677f(i)(1)).

    Dated: August 24, 2001.
Richard W. Moreland,
Acting Assistant Secretary.
[FR Doc. 01-22147 Filed 8-31-01; 8:45 am]
BILLING CODE 3510-DS-P