[Federal Register Volume 66, Number 189 (Friday, September 28, 2001)]
[Notices]
[Pages 49632-49634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24414]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-865]


Final Determination of Sales at Less Than Fair Value: Certain 
Hot-Rolled Carbon Steel Flat Products From the People's Republic of 
China

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

ACTION: Notice of final determination of sales at less than fair value.

-----------------------------------------------------------------------

EFFECTIVE DATE: September 28, 2001.

FOR FURTHER INFORMATION CONTACT: Carrie Blozy, Catherine Bertrand, 
Doreen Chen, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue N.W., 
Washington, DC 20230; telephone: (202) 482-0165, 482-3207, 482-0193 
respectively.

The Applicable Statute

    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's regulations are to the 
regulations at 19 CFR part 351 (2001).

Final Determination

    We determine that certain hot-rolled carbon steel flat products 
from the People's Republic of China (``PRC'') 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 Act. The estimated margin of dumping is 
shown in the ``Continuation of 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 the People's Republic of China, 66 FR 
22183 (May 3, 2001) (``Preliminary Determination''). Since the 
publication of the Preliminary Determination, the following events have 
occurred.
    On April 30, 2001, Angang Group International Trade Co. Ltd., New 
Iron & Steel Co., Ltd., & Angang Group Hong Kong Co., Ltd., 
(``Angang'') requested that the Department correct ministerial errors 
found in Angang's margin calculation. On May 16, 2001, the Department 
determined that, although there were certain ministerial errors, they 
did not meet the definition of significant ministerial error within the 
meaning of 19 CFR 351.224(g)(1). As a result, at that time we did not 
make the suggested corrections. However, we have made the adjustment 
for these three errors in this final determination.
    On May 22, 2001, petitioners submitted a request for a public 
hearing in accordance with 19 CFR 351.310(c). On August 10, 2001, 
petitioners withdrew their request for a hearing. Because petitioners 
were the only party to request a hearing, and because it was withdrawn 
in a timely manner, the Department did not conduct a hearing. On May 
14-18, 2001, the Department conducted a verification of Shanghai 
Baosteel Group Corporation (``Baosteel Group''). On May 21-25, 2001, 
the Department conducted a verification of Angang. On May 28-31, 2001, 
the Department conducted verification of Benxi Iron & Steel Group 
International Economic & Trade Co.,Ltd., Bengang Steel Plates Co., Ltd. 
and Benxi Iron & Steel Group Co., Ltd., (``Benxi'').
    On June 19, 2001, Angang and Benxi placed on the record public 
information for the purpose of providing the Department with additional 
information that can be used in valuing the factors of production. Also 
on June 19, 2001, petitioners placed on the record public information 
for the purpose of providing the Department with additional information 
that can be used in valuing the factors of production.
    On July 27, 2001, petitioners submitted their case brief with 
respect to the sales and factors of production verification and the 
Department's Preliminary Determination. On July 27, 2001, respondent 
Baosteel Group submitted its case brief with respect to the sales and 
factors of production verification and the Department's preliminary 
determination. On August 6, 2001, Angang and Benxi submitted their case 
briefs with respect to the sales and factors of production verification 
and the Department's preliminary determination. On August 8, 2001, 
petitioners and respondents submitted rebuttal briefs with respect to 
the sales and factors of production verification and the Department's 
Preliminary Determination.
    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 is April 1, 2000 through September 30, 
2000.

Non-Market Economy

    The Department has treated the PRC as a non-market economy (NME) 
country in all its past antidumping investigations. See, e,g., Final 
Determination of Sales at Less Than Fair Value: Bulk Aspirin From the 
People's Republic of China, 65 FR 33805 (May 25, 2000), and Final 
Determination of Sales at Less Than Fair Value: Steel Concrete 
Reinforcing Bars From the People's Republic of China, 66 FR 33522 (June 
22, 2001). A designation as an NME country 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 
the PRC's NME status. We have continued to treat the PRC as an NME in 
this investigation. For further discussion, see Department's 
Preliminary Determination.

Separate Rates

    In our Preliminary Determination, we found that the respondents had 
met the criteria for the application of separate antidumping duty 
rates. On July 10, 2001, the Department placed on the record of this 
case information from the World Steel Forum, 2001, OECD/China Workshop 
on Steel Market, Trade and Structural Adjustment, held in Shanghai, 
China on May 10-11, 2001. We gave parties until July 20, 2001, to 
submit factual information to rebut, support, clarify, or correct the 
new factual information placed on the record by the Department. We 
extended this deadline until July 24, 2001, at the request of 
respondent Baosteel Group. On July 24, 2001, we received responses from 
Angang, Baosteel Group, Benxi, and the petitioners. On July 26 and 
August 3, 2001, Baosteel Group

[[Page 49633]]

submitted additional information to ``rebut, clarify, or correct'' the 
information submitted by petitioners. For a complete discussion of the 
Department's determination that the respondents are entitled to 
separate rates, see Decision Memorandum.

The PRC-Wide Rate

    For the reasons set forth in the Preliminary Determination, we 
continue to find that the use of adverse facts available for the PRC-
wide rate is appropriate. See Preliminary Determination, 66 FR 22183. 
Consistent with our Preliminary Determination, as adverse facts 
available, we have used the highest rate calculated for a respondent, 
i.e., the rate calculated for Benxi. We note that this rate is higher 
than the adjusted margin of dumping calculated from the petition (69.08 
percent). For recalculation of petition margin, see Memorandum to the 
File: Recalculation of Petition Margin in the Antidumping Duty 
Investigation of Hot-Rolled Steel from the People's Republic of China, 
September 21, 2001.

Surrogate Country

    For purposes of the final determination, we continue to find that 
India is the appropriate primary surrogate country. For further 
discussion and analysis regarding the surrogate country selection, see 
Department's Preliminary Determination.

Use of Facts Available

    For the reasons set forth in the Preliminary Determination, we have 
continued to apply facts available to certain aspects of Angang's and 
Benxi's analysis. See Preliminary Determination, 66 FR 22189. For a 
discussion of our application of facts available, see Final Analysis 
Memorandum for Angang at page 3 and Final Analysis Memorandum for Benxi 
at page 4. Specifically, for Angang and Benxi, we used facts available 
for the freight charge for certain inputs because freight distance was 
not provided by the respondents. Id. at 3 and 4.

Analysis of Comments Received

    All issues raised in the case brief by parties to this 
investigation are addressed in the Decision Memorandum, which is hereby 
adopted by this notice. A list of the issues which parties 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 B-099. In addition, a complete version of the Decision 
Memorandum can be accessed directly on the World Wide Web at http://ia.ita.doc.gov/frn/. The paper copy and electronic version of the 
Decision Memorandum are identical in content.

Changes Since the 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. See Final 
Analysis Memorandum for Angang; Final Analysis Memorandum for Baosteel 
Group; and Final Analysis Memorandum for Benxi.

Verification

    As provided in section 782(i) of the Act, we verified the 
information submitted by each respondent for use in our final 
determination. We used standard verification procedures including 
examination of relevant accounting and production records, and original 
source documents provided by the respondents. For changes from the 
Preliminary Determination as a result of verification, see Final 
Analysis Memorandum for Angang; Final Analysis Memorandum for Baosteel 
Group; and Final Analysis Memorandum for Benxi.

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 (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, 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.

    ea \vacuum\All products that meet the physical and chemical 
description provided above are within the scope of this investigation 
unless otherwise excluded. The following products, for 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., 
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

[[Page 49634]]

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, 7226.19.90.00, 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 HTSUS 
subheadings are provided for convenience and U.S. Customs purposes, the 
written description of the merchandise under investigation is 
dispositive.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we are 
directing the Customs Service to continue to suspend liquidation of all 
entries of subject merchandise from the PRC, that are entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of the Preliminary Determination in the Federal Register. 
The Customs Service shall continue to require a cash deposit or posting 
of a bond equal to the estimated amount by which the normal value 
exceeds the U.S. price as shown below. This suspension of liquidation 
instructions will remain in effect until further notice.
    The weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                              Weighted-
                                                               average
                   Manufacturer/exporter                        margin
                                                              (percent)
------------------------------------------------------------------------
Angang Group International Trade Corporation...............        69.85
Shanghai Baosteel Group Corporation........................        64.20
Benxi Iron & Steel Group Co., Ltd..........................        90.83
Panzhihua Iron & Steel (Group) Company.....................        65.59
Wuhan Iron & Steel Group Corporation.......................        65.59
PRC-Wide...................................................        90.83
------------------------------------------------------------------------

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, within 45 days, 
determine whether these imports are materially injuring, or threaten 
material injury to, the U.S. industry. If the ITC determines that 
material injury, or threat of material 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 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

I. Changes from the Preliminary Determination
II. General Issues
    Comment 1: Separate Rates
    Comment 2: Self-Produced Energy and Gas Factors
    Comment 3: By-Products
    Comment 4: Valuation of Financial Ratios
    Comment 5: Calculation of Cost of Materials, Labor, and 
Utilities
    Comment 6: Calculation of Profit
    Comment 7: Application of Financial Ratios
    Comment 8: Brokerage and Handling Valuation
    Comment 9: Domestic Inland Insurance Valuation
    Comment 10: Marine Insurance Valuation
    Comment 11: Lime Valuation
    Comment 12: Coal Valuation
    Comment 13: Steel Scrap Valuation
    Comment 14: Silicon Barium Strontium Aluminum Calcium Valuation
    Comment 15: Iron Ore Valuation
    Comment 16: Issues Arising at Verification
III. Company Specific Issues
    A. Baosteel Group
    Comment 17: Market Economy Price for Iron Ore
    Comment 18: Purchased Slab
    Comment 19: Hot-Rolled Coil Consumption Amounts
    Comment 20: Valuation of Hydrogen
    Comment 21: Clerical Errors
    B. Angang and Benxi
    Comment 22: Recycled and Circle Water
    Comment 23: Sigma Freight
    C. Angang
    Comment 24: International Freight
    Comment 25: Iron Ore Pellets
    Comment 26: Steel Scrap at Steel-Making
    D. Yi Chang
    Comment 27: Suspension of Liquidation

[FR Doc. 01-24414 Filed 9-27-01; 8:45 am]
BILLING CODE 3510-DS-P