[Federal Register Volume 66, Number 189 (Friday, September 28, 2001)]
[Notices]
[Pages 49622-49625]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24411]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-549-817]


Notice of Final Determination of Sales at Less Than Fair Value; 
Certain Hot-Rolled Carbon Steel Flat Products From Thailand

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

EFFECTIVE DATE: September 28, 2001.

[[Page 49623]]


FOR FURTHER INFORMATION CONTACT: Angelica Mendoza or Nancy Decker at 
(202) 482-3019 or (202) 482-0196, respectively; Antidumping and 
Countervailing Duty Enforcement Group III, 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. In addition, unless otherwise indicated, 
all citations to the Department of Commerce (Department) regulations 
are to the regulations at 19 CFR part 351 (April 2000).

Final Determination

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

Case History

    We published in the Federal Register the preliminary determination 
in this investigation on May 3, 2001. See Notice of Preliminary 
Determination of Sales at Less Than Fair Value: Certain Hot-Rolled 
Carbon Steel Flat Products from Thailand, 66 FR 22199 (May 3, 2001) 
(Preliminary Determination). Since the publication of the Preliminary 
Determination the following events have occurred.
    On May 1, 2001, Sahaviriya Steel Industries Public Co., Ltd. (SSI), 
the sole responding company in this investigation, requested that the 
Department postpone its final determination until not later than 135 
days after the date of the publication of the preliminary determination 
in the Federal Register and requested an extension of the provisional 
measures. On June 4, 2001, we extended the final determination until 
not later than 135 days after the publication of the preliminary 
determination in the Federal Register. See Notice of Postponement of 
Final Antidumping Duty Determination: Certain Hot Rolled Carbon Steel 
Flat Products from Thailand and Notice of Postponement of Final 
Countervailing Duty Determinations: Certain Hot Rolled Carbon Steel 
Flat Products from Thailand and South Africa, 66 FR 31888 (June 13, 
2001).
    The Department verified sections A-C of SSI's responses from May 
14, 2001 through May 21, 2001, at SSI's administrative headquarters in 
Bangkok, Thailand and at its production facility in Bangsaphan, 
Thailand. The Department also verified section D of SSI's response from 
May 28, 2001 through June 1, 2001, at SSI's administrative 
headquarters. See Memorandum For the File; ``Sales Verification of 
Sections A-C Questionnaire Responses--SSI'', July 11, 2001 (Sales 
Verification Report) and Memorandum to Neal Halper, Director, Office of 
Accounting; ``Verification of the Cost of Production and Constructed 
Value Data-SSI,'' July 10, 2001 (Cost Verification Report). Public 
versions of these, and all other Departmental memoranda referred to 
herein, are on file in the Central Records Unit, room B-099 of the main 
Commerce building.
    On May 23, 2001, some petitioners (Bethlehem Steel Corporation, LTV 
Steel Company, Inc., National Steel Corporation, and United States 
Steel LLC (formerly known as ``U.S. Steel Group (a Unit of USX 
Corporation)'') requested a public hearing. The remaining petitioners 
(IPSCO Steel Inc., Gallatin Steel Company, Nucor Corporation, Steel 
Dynamics, Inc., Weirton Steel Corporation, and the Independent 
Steelworkers Union) also requested a public hearing on June 1, 2001. In 
addition, on June 4, 2001, SSI requested a public hearing. On July 24, 
2001 the petitioners which first requested a hearing and SSI withdrew 
their requests for a public hearing. On July 26, 2001, the remaining 
petitioners withdrew their request for a public hearing. On July 25, 
2001, we received case briefs from SSI and petitioners. We received 
rebuttal briefs from all parties on July 30, 2001.
    Although the deadline for this determination was originally 
September 17, 2001, in light of the events of September 11, 2001 and 
the subsequent closure of the Federal Government for reasons of 
security, the timeframe for issuing this determination has been 
extended by four days.

Period of Investigation

    The period of investigation (POI) is October 1, 1999 through 
September 30, 2000.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the ``Issues and Decision 
Memorandum'' (Decision Memorandum) from Joseph A. Spetrini, Deputy 
Assistant Secretary, Import Administration, to Faryar Shirzad, 
Assistant Secretary for Import Administration, dated September 21, 
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 Memorandum, is attached to this notice as an 
Appendix. Parties can find a complete discussion of all issues raised 
in this review and the corresponding recommendations in this public 
memorandum which is on file in B-099.
    In addition, a complete version of the Decision Memorandum can be 
accessed directly on the World Wide Web at www.ia.ita.doc.gov/frn. The 
paper copy and electronic version of the Decision Memorandum are 
identical in content.

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 this investigation, 
regardless of definitions in the Harmonized Tariff Schedule of the 
United States (HTS), are products in which: (i) iron

[[Page 49624]]

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

Changes Since the Preliminary Determination

    Based on our analysis of comments received and findings at 
verification, we have made certain changes in the margin calculations. 
These changes are noted in various sections of the Decision Memorandum, 
accessible in B-099 and on the Web at www.ia.ita.doc.gov/frn.

Use of Facts Available

SSM

    In the preliminary determination, the Department determined that 
the application of total adverse facts available (AFA) was appropriate 
with respect to Siam Strip Mill Public Co., Ltd. (SSM), a mandatory 
respondent that failed to respond to the Department's questionnaire. As 
AFA, the Department applied a margin rate of 20.30 percent, the highest 
alleged margin based on our recalculation for Thailand in the petition. 
The interested parties did not object to the use of adverse facts 
available for SSM, or to the Department's choice of facts available, 
and no new facts were submitted which would cause the Department to 
revisit this decision. Therefore, for the reasons set out in the 
preliminary determination, we have continued to use the highest margin 
alleged by the petitioner (as recalculated by the Department at 
initiation) for the purposes of this final determination notice.

SSI

    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 SSI. For a discussion of our determination with respect to 
these matters, see the Decision Memorandum.

Suspension of Liquidation

    Pursuant to section 735(c)(1)(B) of the Act, we are instructing 
Customs to continue to suspend liquidation of all entries of HR 
products from Thailand that are entered, or withdrawn from warehouse, 
for consumption on or after May 3, 2001, the date of publication of the 
Preliminary Determination.
    Article VI.5 of the General Agreement on Tariffs and Trade (GATT 
1994) provides that ``[n]o product * * * shall be subject to both 
antidumping and countervailing duties to compensate for the same 
situation of dumping or export subsidization.'' This provision is 
implemented in section 772(c)(1)(C) of the Tariff Act. Since 
antidumping duties cannot be assessed on the portion of the margin 
attributed to export subsides there is no reason to require a cash 
deposit or bond for that amount. The Department has determined in its 
Final Affirmative Countervailing Duty Determination: Certain Hot-Rolled 
Carbon Steel Flat Products from Thailand that the product under 
investigation benefitted from export subsidies. Normally, where the 
product under investigation is also subject to a concurrent 
countervailing duty investigation, we instruct the Customs Service to 
require a cash deposit or posting of a bond equal to the weighted-
average amount by which the normal value exceeds the export price, as 
indicated below, minus the amount determined to constitute a export 
subsidy. See, e.g., Notice of Antidumping Duty Order: Stainless Steel 
Wire Rod From Italy, 63 FR 49327 (September 15, 1998). Accordingly, for 
cash deposit purposes we are subtracting from SSI's cash deposit rate 
that portion of the rate attributable to the export subsidies found in 
the countervailing duty investigation involving SSI (i.e., 0.58 
percent). We have made the same adjustment to the ``All Others'') and 
SSM cash deposit rate by subtracting the rate attributable to export 
subsidies found in the countervailing duty investigation of SSI.
    We will instruct the Customs Service to require a cash deposit or 
the posting of a bond for each entry equal to the weighted-average 
amount by the normal value exceeds the export price, adjusted for the 
export subsidy rate, as indicated

[[Page 49625]]

below. These suspension of liquidation instructions will remain in 
effect until further notice. We determine that the following weighted-
average dumping margins exist for the period October 1, 1999 through 
September 30, 2000:

------------------------------------------------------------------------
                                                  Bonding/Cash Deposit
                                                          Rate
                                               -------------------------
              Export/manufacturer                Weighted-
                                                  average
                                                   margin     (Percent)
                                                  percent
------------------------------------------------------------------------
SSI...........................................         4.44         3.86
SSM...........................................        20.30        19.72
All Others....................................         4.44         3.86
------------------------------------------------------------------------

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 canceled. If the ITC determines that such injury does 
exist, the Department will issue an antidumping order directing Customs 
officials to assess antidumping duties on all imports on the subject 
merchandise entered, or withdrawn from warehouse for consumption on or 
after the effective date of the suspension of liquidation.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: September 21, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix I--Issues in Decision Memorandum

    1. Depreciation
    2. Refund of Import Duties on Slab
    3. Cutting Costs
    4. Scrap Sales Revenue
    5. Use of Full Year 2000 Audited Financial Statements for G&A 
and Interest Expenses
    6. Use of Exchange Rate Losses in Interest Expenses
    7. Subsidiaries' G&A Expenses
    8. Skin Passing Costs
    9. U.S. Date of Sale
    10. Indirect Selling Expenses (and G&A) of one of SSI's 
Affiliated Resellers
    11. Home Market Credit Expense of one of SSI's Affiliated 
Resellers
    12. Home Market Movement Expenses--Freight Adjustment of one of 
SSI's Affiliated Resellers
    13. Warranty Expenses--Coding Sales as Prime Versus Non-Prime
    14. Weighted Average Margin Calculation--Zeroing Negative 
Margins

[FR Doc. 01-24411 Filed 9-27-01; 8:45 am]
BILLING CODE 3510-DS-M