[Federal Register Volume 66, Number 189 (Friday, September 28, 2001)]
[Notices]
[Pages 49625-49628]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24412]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-485-806]


Notice of Final Determination of Antidumping Duty Investigation: 
Certain Hot-Rolled Carbon Steel Flat Products from Romania

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

SUMMARY: We determine that certain hot-rolled carbon steel flat 
products (HRS) from Romania are being, or are likely to be, sold in the 
United States at less than fair value (LTFV), as provided in section 
735 of the Tariff Act of 1930, as amended. On May 3, 2001, the 
Department of Commerce (the Department) published the preliminary 
determination of its investigation of HRS from Romania, and on June 6, 
2001, the Department published its amended preliminary determination. 
The period of investigation (POI) is April 1, 2000, through September 
30, 2000. This period corresponds to the two most recent fiscal 
quarters prior to the month of the filing of the petition (i.e., 
November 2000). Based on our analysis of comments received, the final 
determination differs from the preliminary determination. The estimated 
margins of sales at LTFV is listed below in the ``Suspension of 
Liquidation'' section.

EFFECTIVE DATE: September 28, 2001.

FOR FURTHER INFORMATION CONTACT: Christopher Riker or Charles Riggle, 
Office 5, Group II, AD/CVD Enforcement, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230; telephone: 
(202) 482-0186 and (202) 482-0650, respectively.

SUPPLEMENTARY INFORMATION:

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 Department of Commerce (the Department) 
regulations are references to the provisions codified at 19 CFR Part 
351 (2000).

Case History

    On May 3, 2001, the Department published its preliminary 
determination of this investigation. See Notice of Preliminary 
Determination of Sales at Less Than Fair Value and Postponement of 
Final Determination: Certain Hot-Rolled Carbon Steel Flat Products from 
Romania, 66 FR 22194 (Preliminary Determination). On June 6, 2001, the 
Department amended its preliminary determination in this investigation. 
See Notice of Amended Preliminary Antidumping Duty Determination of 
Sales at Less Than Fair Value: Certain Hot-Rolled Carbon Steel Flat 
Products from Romania, 66 FR 30411 (Amended Preliminary Determination). 
After the Amended Preliminary Determination, the Department verified 
the information submitted on the record by the respondents. See the 
verification report from the verification of the Questionnaire 
Responses of Sidex S.A. and Sidex Trading SRL (August 2, 2001). See 
also, the verification reports from the verifications of the 
Questionnaire Responses of MEI, Metanef, Metagrimex and Sidex 
International, Plc (August 2, 2001). On August 17, 2001, certain 
petitioners \1\ and the respondents \2\ submitted case briefs. 
Furthermore, on August 24, 2001, we received rebuttal briefs from both 
parties as well as additional petitioners \3\ in this proceeding. The 
department received requests for a public hearing from Bethlehem Steel 
Corporation, LTC Steel Company, Inc., National Steel Corporation, and 
United States Steel LLC as well as the respondents. The hearing was 
held on August 28, 2001.
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    \1\ These petitioners are Bethlehem Steel Corporation, Inc., 
National Steel Corporation, and United States Steel LLC.
    \2\ The respondents are Sidex, S.A. (Sidex), Sidex Trading SRL, 
Sidex International Plc (collectively, the Sidex Exporters), 
Metalexportimport S.A. (MEI), Metanef S.A. (Metanef) and Metagrimex 
Business Group S.A. (Metagrimex).
    \3\ These Petitioners are Gallatin Steel Company, IPSCO Steel 
Inc., Nucor Corporation, Steel Dynamics, Inc., Weirton Steel 
Corporation and the Independent Steelworkers Union.
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    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.

Scope of Investigation

    For purposes of this investigation, the products covered are 
certain hot-rolled carbon steel flat products of a

[[Page 49626]]

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 length, 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 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 (HTSUS), 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, 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:
     Alloy hot-rolled steel products in which at least one of 
the chemical elements exceeds those listed above (including, e.g., 
American Society for Testing and Materials (ASTM) specifications A543, 
A387, A514, A517, A506). Society of Automotive Engineers (SAE)/American 
Iron & Steel Institute (AISI) grades of series 2300 and higher.
     Ball bearing steels, as defined in the HTSUS.
     Tool steels, as defined in the HTSUS.
     Silico-manganese (as defined in the HTSUS) 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 HTSUS.
    The merchandise subject to this investigation is classified in the 
HTSUS 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 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, 7226.10.90.00, 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 HTSUS subheadings are provided for convenience and 
U.S. Customs purposes, the written description of the merchandise 
subject to this proceeding is dispositive.

Non-market Economy Country

    The Department has treated Romania as a non-market-economy (NME) 
country in all past antidumping proceedings (see, e.g., Notice of Final 
Determination of Sales at Less Than Fair Value: Certain Small Diameter 
Carbon and Alloy Seamless Standard, Line and Pressure Pipe from 
Romania, 65 FR 39125 (June 23, 2000)). A designation as a NME remains 
in effect until it is revoked by the Department (see section 771(18)(C) 
of the Act). The respondents in this investigation have not requested a 
revocation of Romania's NME status and no further information has been 
provided that would lead to such a revocation. Therefore, we have 
continued to treat Romania as a NME in this investigation.
    When the Department is investigating imports from a NME, section 
773(c)(1) of the Act directs us to base normal value (NV) on the NME 
producer's factors of production, valued to the extent possible in a 
comparable market economy that is a significant producer of comparable 
merchandise. The sources of individual factor prices are discussed 
under the Normal Value section, below.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this review are addressed in the ``Issues and Decision Memorandum'' 
(Decision Memorandum) from Bernard T. Carreau, 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 investigation and the corresponding 
recommendations in this public memorandum, which is on file in the 
Central Records Unit (CRU), room B-099 of the main Commerce Department 
building.
    In addition, a complete version of the Decision Memorandum can be 
accessed directly on the Internet at http://ia.ita.doc.gov/. The paper 
copy and electronic version of the Decision Memorandum are identical in 
content.

Separate Rates

    It is the Department's policy to assign a single rate to all 
exporters of subject merchandise subject to investigation in a NME 
country unless an exporter can

[[Page 49627]]

demonstrate that it is sufficiently independent so as to be entitled to 
a separate rate. For purposes of this ``separate rates'' inquiry, the 
Department analyzes each exporting entity under the test established in 
the Final Determination of Sales at Less Than Fair Value: Sparklers 
from the People's Republic of China, 56 FR 20588 (May 6, 1991) 
(Sparklers), 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). Under this test, exporters in 
NME countries are entitled to separate, company-specific margins when 
they can demonstrate an absence of government control over exports, 
both in law (de jure) and in fact (de facto).
    In our preliminary determination, we found, according to the 
criteria identified in Sparklers and Silicon Carbide, that the Sidex 
Exporters, MEI, Metanef and Metagrimex had met the criteria for the 
application of separate antidumping duty rates. For a complete 
discussion of the Department's determination that the Sidex Exporters, 
MEI, Metanef and Metagrimex are entitled to separate rates, see the 
April 23, 2001, memoranda, Assignment of Separate Rate for Sidex 
Trading SRL and Sidex International, Plc in the Antidumping Duty 
Investigation of Certain Hot-rolled Carbon Steel Flat Products from 
Romania, as well as Assignment of Separate Rate for Metalexportimport, 
S.A. (MEI), Metanef, S.A. (Metanef) and Metagrimex Business Group, S.A. 
(Metagrimex) in the Antidumping Duty Investigation of Certain Hot-
rolled Carbon Steel Flat Products from Romania, which are on file in 
the CRU. The Petitioners argued in their case briefs that the 
Department should reconsider granting separate rates for the Sidex 
Exporters, MEI, Metanef and Metagrimex. For a more detailed analysis of 
why we continue to find that the responding exporting companies in this 
investigation should be assigned individual dumping margins, see the 
Decision Memorandum.

Romania-Wide Rate

    As in all NME cases, the Department implements a policy whereby 
there is a rebuttable presumption that all exporters comprise a single 
entity under common government control, the ``NME entity.'' Therefore, 
the Department assigns a single NME rate to the NME entity, unless an 
exporter can demonstrate eligibility for a separate rate. If all 
exporters, accounting for all exports of subject merchandise to the 
United States during the POI, demonstrate eligibility for a separate 
rate, the Department will calculate an ``all others'' rate as it does 
in market economy cases. However, if record evidence suggests that 
certain exporters have not responded to at least the Department's 
initial shipment information query, the Department will rely on its 
presumption that there is an additional entity under government control 
and will assign a country-wide rate to the NME entity. Such is the 
situation in this investigation. See Preliminary Determination, see 
also Decision Memorandum. Specifically, we have not been unable to 
confirm through a comparison of the reported data to public sources 
that no other company exported HRS from Romania to the United States 
during the POI.

Changes Since the Amended Preliminary Determination

    Based on our findings at verification, and analysis of comments 
received, we have made adjustments to the calculation methodology in 
calculating the final dumping margin in this proceeding. These 
adjustments are summarized below:
    1. We revised the surrogate values assigned to all of our inputs 
using 1999 United Nations Commodity Trade Statistics (UNCTS) data, 
which is more contemporaneous than the 1998 data used in our 
preliminary determination. For further details see Comment 1 in the 
Decision Memorandum.
    2. Through our analysis of documents at verification, we determined 
that Sidex neglected to report a portion of its labor hours for the 
flat-rolling mill that should have been included in its original 
calculations. Based on our analysis of the information on the record, 
we increased the total labor hours in order to account for these 
unreported activities for not only the flat-rolling mill, but all of 
the production shops. For further details see Comment 2 in the Decision 
Memorandum.
    3. We increased the reported amount of electricity consumed by the 
respondents to account for missing data discovered at verification. For 
further details see Comment 3 in the Decision Memorandum.
    4. We revised the values assigned to limestone, sulphuric acid, 
ferromanganese, iron slag, coke, caustic soda, raw tar and manganese 
ore to more contemporaneous and non-aberrational values. For further 
details see Comments 6, 7, 10-13 and 16 in the Decision Memorandum.
    5. We have revised the value assigned to iron pellets as we have 
determined that iron pellets are similar enough to iron lumps that they 
should be assigned the same value. For further details see Comment 9 in 
the Decision Memorandum.
    6. We have revised the value assigned to coal powder, using an 
actual purchase price. For further details see Comment 14 in the 
Decision Memorandum.
    7. We determined at verification that Sidex provides coke gas and 
furnace gas to an on-site electrical facility in exchange for de-
mineralized water. Therefore, we have not assigned a cost to the de-
mineralized water, nor have we assigned a credit to the sales of coke 
gas and furnace gas. For further details see Comments 15 and 18 in the 
Decision Memorandum.
    8. We have revised our freight calculations for several sales made 
by MEI and Metanef where a cost was calculated for sales whose terms of 
delivery were FOB Galati. For the final determination we have not 
calculated a freight cost for these observation numbers. For further 
details see Comments 21 and 22 in the Decision Memorandum.
    9. We have revised certain surrogate freight distances, assigned to 
imports of raw materials by the producer, in our normal value to 
reflect a surrogate freight cost using the shorter of the distance from 
the seaport to the factory or the reported distance from the domestic 
supplier to the factory pursuant to the Court of Appeals for the 
Federal Circuit's decision in Sigma Corp. v. United States, 117 F. 3d 
1401, 1408-11 (Fed. Cir. 1997).
    10. We have used a surrogate financial ratio for overhead that 
includes both non-depreciation and depreciation for our final 
determination. For further details see Comment 19 in the Decision 
Memorandum.

Suspension of Liquidation

    Pursuant to section 735(c)(1)(B) of the Act, we are instructing the 
Customs Service to continue to suspend liquidation of all entries of 
HRS from Romania that are entered, or withdrawn from warehouse, for 
consumption on or after May 3, 2001, the date of publication of the 
Preliminary Determination. The Customs Service shall continue to 
require a cash deposit or the posting of a bond based on the estimated 
weighted-average dumping margins shown below. The suspension of 
liquidation instructions will remain in effect until further notice.
    We determine that the following weighted-average dumping margins 
exist for the period April 1, 2000 through September 30, 2000: --

[[Page 49628]]



------------------------------------------------------------------------
                                                                Margin
                   Manufacturer/exporter                      (percent)
------------------------------------------------------------------------
Sidex Trading, SRL & Sidex International, Plc..............        16.88
Metanef, S.A...............................................        22.48
Metagrimex, S.A............................................        17.14
Metalexportimport, S.A.....................................        18.63
Romania-Wide...............................................        88.62
------------------------------------------------------------------------

    The Romania-wide rate applies to all entries of the subject 
merchandise except for entries from exporters/producers that are 
identified individually above.

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 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.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Date: September 231, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix

List of Comments in the Issues and Decision Memorandum
    I. Issues Specific to SIDEX
    Comment 1:  Surrogate Statistics
    Comment 2:  Labor Hours
    Comment 3:  Electricity
    Comment 4:  Acuterm and Quartz Sand
    Comment 5:  Water
    Comment 6:  Limestone
    Comment 7:  Sulphuric Acid
    Comment 8:  Ferromanganese
    Comment 9:  Iron Lumps and Pellets
    Comment 10:  Iron Slag
    Comment 11:  Coke
    Comment 12:  Caustic Soda
    Comment 13:  Raw Tar
    Comment 14:  Coal Powder
    Comment 15:  Demineralized Water
    Comment 16:  Manganese Ore
    Comment 17:  Methane
    Comment 18:  Furnace and Coke Gas
    Comment 19:  Overhead, SG&A, Interest and Profit Ratios
I. Issues Specific TO MEI
    Comment 20:  Export Licenses
    Comment 21:  Freight Terms
II. issues Specific to METANEF
    Comment 22:  Freight Terms
III. General Issues
    Comment 23:  Romania-Wide Rate
    Comment 24:  Separate Rates for Metanef, MEI, and Metagrimex
    Comment 25:  Brokerage and Freight
    Comment 26:  Barter Transactions
    Comment 27:  Expenses Incurred from Imported Inputs from Market 
Economy Suppliers

[FR Doc. 01-24412 Filed 9-27-01; 8:45 am]
BILLING CODE 3510-DS-P