[Federal Register Volume 66, Number 208 (Friday, October 26, 2001)]
[Notices]
[Pages 54198-54213]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-26937]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[A-357-816, A-602-804, A-423-811, A-351-834, A-427-822, A-428-834, A-
533-826, A-588-859, A-580-848, A-421-810, A-614-803, A-570-872, A-821-
815, A-791-814, A-469-812, A-401-807, A-583-839, A-549-819, A-489-810, 
A-307-822]


Notice of Initiation of Antidumping Duty Investigations: Certain 
Cold-Rolled Carbon Steel Flat Products From Argentina, Australia, 
Belgium, Brazil, France, Germany, India, Japan, Korea, the Netherlands, 
New Zealand, the People's Republic of China, the Russian Federation, 
South Africa, Spain, Sweden, Taiwan, Thailand, Turkey, and Venezuela

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

ACTION: Initiation of antidumping duty investigations.

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

EFFECTIVE DATE: October 26, 2001.

FOR FURTHER INFORMATION CONTACT: Barbara Wojcik-Betancourt (Argentina, 
Brazil, South Africa, Spain) at (202) 482-0629; Paige Rivas (Australia, 
India, Korea, New Zealand) at (202) 482-0651; Brian Ledgerwood (the 
Netherlands, Sweden) at (202) 482-3836; Fred Baker (France, Germany, 
the People's Republic of China, the Russian Federation) at (202) 482-
2924; Michael Stollo (Japan, Thailand, Turkey, Venezuela) at (202) 482-
5255; and Victoria Schepker (Belgium, Taiwan) at (202) 482-1756; Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 
20230.

Initiation of Investigations

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, as amended (the 
Act), by the Uruguay Round Agreements Act (URAA). In addition, unless 
otherwise indicated, all citations to the Department's regulations are 
references to the provisions codified at 19 CFR Part 351 (2001).

The Petitions

    On September 28, 2001, the Department of Commerce (the Department) 
received petitions filed in proper form by the following parties: 
Bethlehem Steel Corporation, LTV Steel Company, Inc., National Steel

[[Page 54199]]

Corporation,\1\ Nucor Corporation, Steel Dynamics, Inc., United States 
Steel LLC., WCI Steel, Inc., and Weirton Steel Corporation \2\ 
(collectively, the petitioners). The Department received information 
supplementing the petitions on October 12, 2001 and on October 18, 
2001, petitioners submitted additional information concerning industry 
support.
---------------------------------------------------------------------------

    \1\ National Steel Corporation is not a petitioner in the Japan 
case.
    \2\ Weirton Steel Corporation is not a petitioner in the 
Netherlands case.
---------------------------------------------------------------------------

    In accordance with section 732(b) of the Act, the petitioners 
allege that imports of certain cold-rolled carbon steel flat products 
(cold-rolled steel) from Argentina, Australia, Belgium, Brazil, France, 
Germany, India, Japan, Korea, the Netherlands, New Zealand, the 
People's Republic of China, the Russian Federation, South Africa, 
Spain, Sweden, Taiwan, Thailand, Turkey, and Venezuela are being, or 
are likely to be, sold in the United States at less than fair value 
within the meaning of section 731 of the Act, and that such imports are 
materially injuring, or are threatening to materially injure, an 
industry in the United States.
    The Department finds that the petitioners filed these petitions on 
behalf of the domestic industry because they are interested parties as 
defined in sections 771(9)(C) of the Act and have demonstrated 
sufficient industry support with respect to each of the antidumping 
investigations that they are requesting the Department to initiate. 
(See the Determination of Industry Support for the Petitions section 
below.)

Scope of Investigations

    For purposes of these investigations, the products covered are 
certain cold-rolled (cold-reduced) flat-rolled carbon-quality steel 
products, neither clad, plated, nor coated with metal, but whether or 
not annealed, painted, varnished, or coated with plastics or other non-
metallic substances, both in coils, 0.5 inch wide or wider, (whether or 
not in successively superimposed layers and/or otherwise coiled, such 
as spirally oscillated coils), and also in straight lengths, which, if 
less than 4.75 mm in thickness, having a width that is 0.5 inch or 
greater and that measures at least 10 times the thickness; or, if of a 
thickness of 4.75 mm or more, having a width exceeding 150 mm and 
measuring at least twice the thickness. The products described above 
may be rectangular, square, circular or other shape and include 
products of either rectangular or non-rectangular cross-section.
    Specifically included in this scope are vacuum degassed, fully 
stabilized (commonly referred to as interstitial-free (IF)) steels, 
high strength low alloy (HSLA) steels, and motor lamination steels. IF 
steels are recognized as low carbon steels with micro-alloying levels 
of elements such as titanium and/or niobium added to stabilize carbon 
and nitrogen elements. HSLA steels are recognized as steels with micro-
alloying levels of elements such as chromium, copper, niobium, 
titanium, vanadium, and molybdenum. Motor lamination steels contain 
micro-alloying levels of elements such as silicon and aluminum.
    Steel products included in the scope of this investigation, 
regardless of definitions in the Harmonized Tariff Schedules of the 
United States (HTSUS), are products in which: (1) Iron predominates, by 
weight, over each of the other contained elements; (2) the carbon 
content is 2 percent or less, by weight, and; (3) 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 (also called columbium), or 0.15 percent of 
vanadium, or 0.15 percent of zirconium.
    All products that meet the written physical description, and in 
which the chemistry quantities do not exceed any one of the noted 
element levels listed above, are within the scope of this investigation 
unless specifically excluded. The following products, by way of 
example, are outside and/or specifically excluded from the scope of 
this investigation:
     SAE grades (formerly also called AISI grades) above 2300;
     Ball bearing steels, as defined in the HTSUS;
     Tool steels, as defined in the HTSUS;
     Silico-manganese steel, as defined in the HTSUS;
     Silicon-electrical steels, as defined in the HTSUS, that 
are grain-oriented;
     Silicon-electrical steels, as defined in the HTSUS, that 
are not grain-oriented and that have a silicon level exceeding 2.25 
percent;
     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;
     Silicon-electrical steels, as defined in the HTSUS, that 
are not grain-oriented and that have a silicon level less than 2.25 
percent, and (a) fully-processed, with a core loss of less than 0.14 
watts/pound per mil (0.001 inch), or (b) semi-processed, with core loss 
of less than 0.085 watts/pound per mil (0.001 inch);
     Certain shadow mask steel, which is aluminum killed cold-
rolled steel coil that is open coil annealed, has an ultra-flat, 
isotropic surface, and which meets the following characteristics:
Thickness: 0.001 to 0.010 inch
Width: 15 to 32 inches

                          Chemical Composition
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Element.................................  C
Weight%.................................  0.002%
------------------------------------------------------------------------

     Certain flapper valve steel, which is hardened and 
tempered, surface polished, and which meets the following 
characteristics:
Thickness: 1.0 mm
Width: 152.4 mm

                                                                  Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Element.........................  C                       Si                      Mn                      P                       S
Weight %........................  0.90-1.05               0.15-0.35               0.30-0.50               0.03         0.006
--------------------------------------------------------------------------------------------------------------------------------------------------------


                          Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Tensile Strength..........................  162 Kgf/mm \2\.
Hardness..................................  475 Vickers
                                             hardness number.
------------------------------------------------------------------------


                           Physical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Flatness..................................  0.2% of nominal strip width.
------------------------------------------------------------------------


[[Page 54200]]

    Microstructure: Completely free from decarburization. Carbides are 
spheroidal and fine within 1% to 4% (area percentage) and are 
undissolved in the uniform tempered martensite.

                         Non-metallic Inclusion
------------------------------------------------------------------------
                                                 Area  percentage
------------------------------------------------------------------------
Sulfide Inclusion.......................  0.04
Oxide Inclusion.........................  0.05%
------------------------------------------------------------------------


                 Compressive Stress: 10 to 40 Kgf/mm \2\
                            Surface Roughness
------------------------------------------------------------------------
             Thickness  (mm)                  Roughness  (m)
------------------------------------------------------------------------
t0.209.......................  Rz0.5
0.209t0.310..................  Rz0.6
0.310t0.310..................  Rz0.7
0.440t0.560..................  Rz0.8
0.560t..................................  Rz1.0
------------------------------------------------------------------------

 Certain ultra thin gauge steel strip, which meets the 
following characteristics:
Thickness: 0.100 mm 7%
Width 100 to 600 mm

                                                                  Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Element......................  C                    Mn                   P                    S                   Al                  Fe
Weight %.....................  0.07      0.2-0.5              0.05      0.05     0.07     Balance
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                              Mechanical Properties
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Hardness...................................................  Full Hard (Hv 180 minimum)
Total Elongation...........................................  3%
Tensile Strength...........................................  600 to 850 N/mm \2\
----------------------------------------------------------------------------------------------------------------


                                               Physical Properties
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Surface Finish.............................................  0.3 micron
Camber (in 2.0 m)..........................................  3.0 mm.
Flatness (in 2.0 m)........................................  0.5 mm.
Edge Burr..................................................  0.01 mm greater than thickness
Coil Set (in 1.0 m)........................................  75.0 mm.
----------------------------------------------------------------------------------------------------------------

     Certain silicon steel, which meets the following 
characteristics:
    Thickness: 0.024 inch .0015 inch
    Width: 33 to 45.5 inches

                                                                  Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Element...........................................                C              Mn                P                S               Si               Al
Min. Weight %.....................................  ...............  ...............  ...............  ...............            0.65
Max. Weight %.....................................           0.004              0.4             0.09            0.009   ...............             0.4
--------------------------------------------------------------------------------------------------------------------------------------------------------


                          Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Hardness..........................  B 60-75 (AIM 65)
------------------------------------------------------------------------


                           Physical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Finish Smooth..........................  (30-60 microinches).
Gamma Crown (in 5 inches)..............  0.0005 inch, start measuring
                                          one-quarter inch from slit
                                          edge.
Flatness...............................  20 I-UNIT max
Coating................................  C3A-.08A max. (A2 coating
                                          acceptable).
Camber (in any 10 feet)................  1/16 inch.
Coil Size I.D..........................  20 inches.
------------------------------------------------------------------------


                           Magnetic Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Core Loss (1.5T/60 Hz) NAAS............  3.8 Watts/Pound max.
Permeability (1.5T/60 Hz) NAAS.........  1700 gauss/oersted typical,
                                          1500 minimum.
------------------------------------------------------------------------

     Certain aperture mask steel, which has an ultra-flat 
surface flatness and which meets the following characteristics:
Thickness: 0.025 to 0.245 mm
Width: 381-1000 mm

[[Page 54201]]



                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element...........................  C                        N                           Al
Weight %..........................  0.01                     0.004 to 0.007              0.007
----------------------------------------------------------------------------------------------------------------

     Certain annealed and temper-rolled cold-rolled 
continuously cast steel, which meets the following characteristics:

                                                                  Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Element.......................  C           Mn          P           S             Si          Al            As         Cu         B          N
Min. Weight %.................  0.02        0.20        ..........  ............  ..........  0.03          .........  .........  .........  0.003
Max. Weight %.................  0.06        0.40        0.02        0.023         0.03        0.08          0.02       .........  0.08       0.008
                                                                    (Aiming                   (Aiming                                        (Aiming
                                                                    0.018                     0.05)                                          0.005)
                                                                    Max.)
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Non-metallic Inclusions: Examination with the S.E.M. shall not 
reveal individual oxides >1 micron (0.000039 inch) and inclusion groups 
or clusters shall not exceed 5 microns (0.000197 inch) in length.
    Surface Treatment as follows:
    The surface finish shall be free of defects (digs, scratches, pits, 
gouges, slivers, etc.) and suitable for nickel plating.

                                                 Surface Finish
----------------------------------------------------------------------------------------------------------------
                                                       Roughness, RA microinches  (micrometers)
                                     ---------------------------------------------------------------------------
                                                 Aim                      Min.                     Max.
----------------------------------------------------------------------------------------------------------------
Extra Bright........................  5 (0.1)                   0 (0)                    7 (0.2)
----------------------------------------------------------------------------------------------------------------

     Certain annealed and temper-rolled cold-rolled 
continuously cast steel, in coils, with a certificate of analysis per 
Cable System International (``CSI'') Specification 96012, with the 
following characteristics:

                          Chemical Composition
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Element......................  C          Mn         P          S
Max Weight %.................  0.13       0.60       0.02       0.05
------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Base Weight............................  55 pounds.
Theoretical Thickness..................  0.0061 inch (+/-10 percent of
                                          theoretical thickness).
Width..................................  31 inches.
Tensile Strength.......................  45,000-55,000 psi.
Elongation.............................  minimum of 15 percent in 2
                                          inches.
------------------------------------------------------------------------

     Concast cold-rolled drawing quality sheet steel, ASTM a-
620-97, Type B, or single reduced black plate, ASTM A-625-92, Type D, 
T-1, ASTM A-625-76 and ASTM A-366-96, T1-T2-T3 Commercial bright/luster 
7a both sides, RMS 12 maximum. Thickness range of 0.0088 to 0.038 
inches, width of 23.0 inches to 36.875 inches.
     Certain single reduced black plate, meeting ASTM A-625-98 
specifications, 53 pound base weight (0.0058 inch thick) with a Temper 
classification of T-2 (49-57 hardness using the Rockwell 30 T scale).
     Certain single reduced black plate, meeting ASTM A-625-76 
specifications, 55 pound base weight, MR type matte finish, TH basic 
tolerance as per A263 trimmed.
     Certain single reduced black plate, meeting ASTM A-625-98 
specifications, 65 pound base weight (0.0072 inch thick) with a Temper 
classification of T-3 (53-61 hardness using the Rockwell 30 T scale).
     Certain cold-rolled black plate bare steel strip, meeting 
ASTM A-625 specifications, which meet the following characteristics:

                          Chemical Composition
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Element......................  C          Mn         P          S
Max. Weight %................  0.13       0.60       0.02       0.05
------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness..............................  0.0058 inch 0.0003
                                          inch.
Hardness...............................  T2/HR 30T 50-60 aiming.
Elongation.............................  15%.

[[Page 54202]]

 
Tensile Strength.......................  51,000.0 psi 4.0.
------------------------------------------------------------------------

     Certain cold-rolled black plate bare steel strip, in 
coils, meeting ASTM A-623, Table II, Type MR specifications, which meet 
the following characteristics:

                          Chemical Composition
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Element......................  C          Mn         P          S
Max. Weight %................  0.13       0.60       0.04       0.05
------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness..............................  0.0060 inch (0.0005
                                          inch).
Width..................................  10 inches (+\1/4\ to \3/8\ inch/
                                          -0).
Tensile Strength.......................  55,000 psi max.
Elongation.............................  Minimum of 15 percent in 2
                                          inches.
------------------------------------------------------------------------

     Certain ``blued steel'' coil (also known as ``steamed blue 
steel'' or ``blue oxide'') with a thickness of 0.30 mm to 0.42 mm and 
width of 609 mm to 1219 mm, in coil form;
     Certain cold-rolled steel sheet, coated with porcelain 
enameling prior to importation, which meets the following 
characteristics:
    Thickness (nominal): 0.019 inch
    Width: 35 to 60 inches

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element.............................  C                         O                        B
Max. Weight %.......................  0.004
Min. Weight %.......................  ........................  0.010                    0.012
----------------------------------------------------------------------------------------------------------------

     Certain cold-rolled steel, which meets the following 
characteristics:
Width: >66 inches

                          Chemical Composition
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Element......................  C          Mn         P          Si
Max. Weight%.................  0.07       0.67       0.14       0.03
------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Range (mm)....................................     0.800-2.000
Min. Yield Point (MPa)..................................             265
Max Yield Point (MPa)...................................             365
Min. Tensile Strength (MPa).............................             440
Min. Elongation %.......................................              26
------------------------------------------------------------------------

     Certain band saw steel, which meets the following 
characteristics:
    Thickness:  1.31 mm
    Width:  80 mm

                                                                                      Chemical Composition
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Element........................  C                      Si                     Mn                     P                      S                      Cr                     Ni
Weight %.......................  1.2 to 1.3             0.15 to 0.35           0.20 to 0.35           0.03        0.007       0.3 to 0.5             0.25
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Other properties:
Carbide: Fully spheroidized having >80% of carbides, which are 
0.003 mm and uniformly dispersed
Surface finish: Bright finish free from pits, scratches, rust, cracks, 
or seams Smooth edges.
Edge camber (in each 300 mm of length):  7 mm arc height
Cross bow (per inch of width): 0.015 mm max.
     Certain transformation-induced plasticity (TRIP) steel, 
which meets the following characteristics:

Variety 1:

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element...........................  C                         Si                        Mn

[[Page 54203]]

 
Min. Weight %.....................  0.09                      1.0                       0.90
 Max. Weight %....................  0.13                      2.1                       1.7
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Range (mm)...................  1.000-2.300 (inclusive).
Min. Yield Point (MPa).................  320.
Max Yield Point (MPa)..................  480.
Min. Tensile Strength (MPa)............  590.
Min. Elongation %......................  24 (if 1.000-1.199 thickness
                                          range).
                                         25 (if 1.200-1.599 thickness
                                          range).
                                         26 (if 1.600-1.999 thickness
                                          range).
                                         27 (if 2.000-2.300 thickness
                                          range).
------------------------------------------------------------------------

Variety 2:

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element...........................  C                         Si                        Mn
Min. Weight %.....................  0.12                      1.5                       1.1
Max. Weight %.....................  0.16                      2.1                       1.9
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Range (mm)...................  1.000-2.300 (inclusive).
Min. Yield Point (MPa).................  340.
Max Yield Point (MPa)..................  520.
Min. Tensile Strength (MPa)............  690.
Min. Elongation %......................  21 (if 1.000-1.199 thickness
                                          range).
                                         22 (if 1.200-1.599 thickness
                                          range).
                                         23 (if 1.600-1.999 thickness
                                          range).
                                         24 (if 2.000-2.300 thickness
                                          range).
------------------------------------------------------------------------

Variety 3:

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element...........................  C                         Si                        Mn
Min. Weight %.....................  0.13                      1.3                       1.5
Max. Weight %.....................  0.21                      2.0                       2.0
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Range (mm)...................  1.200-2.300 (inclusive).
Min. Yield Point (MPa).................  370.
Max Yield Point (MPa)..................  570.
Min. Tensile Strength (MPa)............  780.
Min. Elongation %......................  18 (if 1.200-1.599 thickness
                                          range).
                                         19 (if 1.600-1.999 thickness
                                          range).
                                         20 (if 2.000-2.300 thickness
                                          range).
------------------------------------------------------------------------

     Certain cold-rolled steel, which meets the following 
characteristics:

Variety 1:

                          Chemical Composition
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Element......................  C          Mn         P          Cu
Min. Weight %................  .........  .........  .........  0.15
Max. Weight %................  0.10       0.40       0.10       0.35
------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Range (mm)...................  0.600-0.800

[[Page 54204]]

 
Min. Yield Point (MPa).................  185
Max Yield Point (MPa)..................  285
Min. Tensile Strength (MPa)............  340
Min. Elongation........................  31 (ASTM standard 31% = JIS
                                          standard 35%)
------------------------------------------------------------------------

Variety 2:

                          Chemical Composition
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Element......................  C          Mn         P          Cu
Min. Weight %................  .........  .........  .........  0.15
Max. Weight %................  0.05       0.40       0.08       0.35
------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Range (mm)...................  0.800-1.000
Min. Yield Point (MPa).................  145
Max Yield Point (MPa)..................  245
Min. Tensile Strength (MPa)............  295
Min. Elongation %......................  31 (ASTM standard 31% = JIS
                                          standard 35%)
------------------------------------------------------------------------

Variety 3:

                                                                                      Chemical Composition
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Element.........................  C               Si              Mn              P               S               Cu              Ni              Al              Nb, Ti,         Mo
                                                                                                                                                                  V, B
Max. Weight %...................  0.01            0.05            0.40            0.10            0.023           0.15-.35        0.35            0.10            0.10            0.30
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness (mm):...........................................          0.7
Elongation %: .................................           35
------------------------------------------------------------------------

     Porcelain enameling sheet, drawing quality, in coils, 
0.014 inch in thickness, +0.002, -0.000, meeting ASTM A-424-96 Type 1 
specifications, and suitable for two coats.
    The merchandise subject to this investigation is typically 
classified in the HTSUS at subheadings: 7209.15.0000, 7209.16.0030, 
7209.16.0060, 7209.16.0090, 7209.17.0030, 7209.17.0060, 7209.17.0090, 
7209.18.1530, 7209.18.1560, 7209.18.2550, 7209.18.6000. 7209.25.0000, 
7209.26.0000, 7209.27.0000, 7209.28.0000, 7209.90.0000, 7210.70.3000, 
7210.90.9000, 7211.23.1500, 7211.23.2000, 7211.23.3000, 7211.23.4500, 
7211.23.6030, 7211.23.6060, 7211.23.6085, 7211.29.2030, 7211.29.2090, 
7211.29.4500, 7211.29.6030, 7211.29.6080, 7211.90.0000, 7212.40.1000, 
7212.40.5000, 7212.50.0000, 7225.19.0000, 7225.50.6000, 7225.50.7000, 
7225.50.8010, 7225.50.8085, 7225.99.0090, 7226.19.1000, 7226.19.9000, 
7226.92.5000, 7226.92.7050, 7226.92.8050, and 7226.99.0000.
    Although the HTSUS subheadings are provided for convenience and 
U.S. Customs Service (U.S. Customs) purposes, the written description 
of the merchandise under investigation is dispositive.
    During our review of the petitions, we discussed the scope with the 
petitioners to ensure that the scope in the petition accurately 
reflects the product for which the domestic industry is seeking relief. 
Moreover, as discussed in the preamble to the Department's regulations 
(Antidumping Duties; Countervailing Duties; Final Rule, 62 FR 27296, 
27323 (May 19, 1997)), we are setting aside a period for parties to 
raise issues regarding product coverage. The Department encourages all 
parties to submit such comments within 20 days of publication of this 
notice. Comments should be addressed to Import Administration's Central 
Records Unit at Room 1870, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, D.C. 20230. The period of scope 
consultations is intended to provide the Department with ample 
opportunity to consider all comments and consult with parties prior to 
the issuance of the preliminary determination.

Determination of Industry Support for the Petitions

    Section 771(4)(A) of the Act defines the ``industry as the 
producers as a whole of a domestic like product. Thus, when determining 
the degree of industry support, the statute directs the Department to 
look to producers and workers who produce the domestic like product. 
The International Trade Commission (ITC), which is responsible for 
determining whether ``the domestic industry has been injured, must also 
determine what constitutes a domestic like product in order to define 
the industry. While both the Department and the ITC must apply the same 
statutory definition regarding the domestic like product (section 
771(10) of the Act), they do so for different purposes and pursuant to 
separate and distinct authority. In addition, the Department's 
determination is subject to limitations of time and information. 
Although this may result in different definitions of the like product, 
such differences do not render the decision of either agency contrary 
to the law.\3\
---------------------------------------------------------------------------

    \3\ See Algoma Steel Corp. Ltd., v. United States, 688 F. Supp. 
639, 642-44 (CIT 1988); High Information Content Flat Panel Displays 
and Display Glass from Japan: Final Determination; Rescission of 
Investigation and Partial Dismissal of Petition, 56 FR 32376, 32380-
81 (July 16, 1991).

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

[[Page 54205]]

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation, i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petitions. Moreover, the petitioners do not offer a definition of 
domestic like product distinct from the scope of the investigation.
    The petitions cover certain cold-rolled steel as defined in the 
Scope of the Investigation section, above, a single class or kind of 
merchandise. The Department has no basis on the record to find the 
petitioners' definition of the domestic like product to be inaccurate. 
The Department, therefore, has adopted the domestic like product 
definition set forth in the petitions.
    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (1) At least 
25 percent of the total production of the domestic like product; and 
(2) more than 50 percent of the production of the domestic like product 
produced by that portion of the industry expressing support for or 
opposition to the petition. Finally, section 732(c)(4)(D) of the Act 
provides that if the petition does not establish support of domestic 
producers or workers accounting for more than 50 percent of the total 
production of the domestic like product, the administering agency 
shall: (i) Poll the industry or rely on other information in order to 
determine if there is support for the petition as required by 
subparagraph (A), or (ii) determine industry support using any 
statistically valid sampling method to poll the industry.
    The Department has determined, pursuant to section 732(c)(4)(D), 
that there is support for the petitions as required by subparagraph 
(A). Specifically, the Department made the following determinations. 
For Argentina, Australia, Belgium, Brazil, France, Germany, India, 
Japan, Korea, the Netherlands, New Zealand, the People's Republic of 
China, the Russian Federation, South Africa, Spain, Sweden, Taiwan, 
Thailand, Turkey, and Venezuela, the petitioners established industry 
support representing over 50 percent of total production of the 
domestic like product. Therefore, the domestic producers or workers who 
support the petitions account for at least 25 percent of the total 
production of the domestic like product, and the requirements of 
section 732(c)(4)(A)(i) are met. Furthermore, because the Department 
received no opposition to the petitions, the domestic producers or 
workers who support the petitions account for more than 50 percent of 
the production of the domestic like product produced by that portion of 
the industry expressing support for or opposition to the petitions. 
Thus, the requirements of section 732(c)(4)(A)(ii) are also met. 
Accordingly, the Department determines that the petitions were filed on 
behalf of the domestic industry within the meaning of section 732(b)(1) 
of the Act. See the Initiation Checklist.

Export Price and Normal Value

    The following are descriptions of the allegations of sales at less 
than fair value upon which the Department has based its decision to 
initiate these investigations. The sources of data for the deductions 
and adjustments relating to home market price, U.S. price, constructed 
value (CV) and factors of production (FOP) are detailed in the 
Initiation Checklist. Where the petitioners obtained data from foreign 
market research, we contacted the researchers to establish their 
credentials and to confirm the validity of the information being 
provided. See e.g., Memorandum to the File from Fred Baker: Contacts 
with Source of Market Research for Antidumping Petitions Regarding 
Imports of Cold-Rolled Steel from Australia, Belgium, France, Germany, 
India, Japan, Korea, the Netherlands, and Thailand (October 18, 2001) 
(Market Research for Australia, Belgium, France, Germany, India, Japan, 
Korea, the Netherlands, and Thailand).
    The margins alleged in the petitions are as follows: Argentina, 
89.89 percent; Australia, 24.06 percent; Belgium, 25.41 percent; 
Brazil, 26.4 percent; France, 7.93 to 22.12 percent; Germany, 17.41 to 
26.03 percent; India, 153.65 percent; Japan, 109.90 to 115.22 percent; 
Korea, 45.77 to 53.72 percent; the Netherlands, 58.50 to 58.61 percent; 
New Zealand, 21.72 percent; the People's Republic of China, 70.68 to 
74.16 percent; the Russian Federation, 130.58 to 137.33 percent; South 
Africa, 54.59 percent; Spain, 45.88 percent; Sweden, 40.54 percent; 
Taiwan, 16.8 percent; Thailand, 112.09 to 142.78 percent; Turkey, 28.23 
to 51.71 percent; and Venezuela, 53.9 percent.
    The Department has analyzed the information in the petitions and 
considers the country-wide import statistics for the anticipated period 
of investigation (POI), price quotes, and market research information 
used to calculate the estimated margins for the subject countries to be 
sufficient for purposes of initiation. Based on the information 
submitted in the petitions, adjusted where appropriate, we are 
initiating these investigations, as discussed below and in the 
Initiation Checklist. Should the need arise to use any of this 
information as facts available under section 776 of the Act in our 
preliminary or final determinations, we may re-examine the information 
and revise the margin calculations, if appropriate.

Period of Investigation

    The anticipated POI for the market economy countries is July 1, 
2000, through June 30, 2001, while the anticipated POI for the People's 
Republic of China and the Russian Federation, the non-market economy 
(NME) countries, is January 1, 2001, through June 30, 2001.

Non-Market Economies

    Regarding an investigation involving an NME, the Department 
presumes, based on the extent of central government control in an NME, 
that a single dumping margin, should there be one, is appropriate for 
all NME exporters in the given country. See, Notice of Final 
Determination of Sales at Less Than Fair Value: Steel Concrete 
Reinforcing Bars from Moldova, 66 FR 33525 (June 22, 2001) and Notice 
of Final Determination of Sales at Less Than Fair Value: Solid 
Agricultural Ammonium Nitrate from Ukraine, 66 FR 38632 (July 25, 
2001). In the course of these investigations, all parties will have the 
opportunity to provide relevant information related to the issues of 
the People's Republic of China's and the Russian Federation's NME 
status and the granting of separate rates to individual exporters.

Argentina

Export Price
    The petitioners based export price (EP) on price quotes from an 
Argentine producer to an unaffiliated U.S. purchaser for grades and 
sizes of subject merchandise comparable with products falling under one 
HTSUS category. In order to obtain ex-factory prices, the petitioners 
deducted international transportation and customs duty, ocean freight, 
U.S. inland freight, and U.S. custom duties from the sales value.
Normal Value
    With respect to normal value (NV), the petitioners provided home 
market prices that were obtained from foreign

[[Page 54206]]

market research for grades and sizes of cold-rolled steel comparable to 
the products exported to the United States which serve as the basis for 
EP. The quoted price was given in U.S. dollars per metric ton. In order 
to obtain ex-factory prices, the petitioners deducted inland freight 
from the sales value.
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to NV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

Australia

Export Price
    The petitioners based EP on import average unit value (AUV) data 
from official U.S. Census Bureau statistics for the POI for one HTSUS 
category. The petitioners did not make any adjustment to the AUV data 
when calculating EP, because they argued that using an unadjusted AUV 
as the export price is a conservative methodology.
Normal Value
    With respect to NV, the petitioners provided home market prices 
that were obtained from foreign market research for grades and sizes of 
cold-rolled steel comparable to the products exported to the United 
States, which serve as the basis for EP. The home market price was in 
effect during the period of the AUV data. The petitioners made an 
adjustment for home market credit expenses.
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to NV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

Belgium

Export Price
    The petitioners based EP on import AUV data from official U.S. 
Census Bureau statistics for the POI for two HTSUS categories. The 
petitioners did not make any adjustment to the AUV data when 
calculating EP, because they argued that using an unadjusted AUV as the 
export price is a conservative methodology.
Normal Value
    With respect to NV, the petitioners obtained home market price 
quotes in effect during the POI from foreign market research, for 
specific products representative of the HTSUS categories which served 
as the basis for EP. These prices were in effect during the period of 
the AUV data. The market researcher provided a table for calculating 
price extras based on the dimensions of the product. The petitioners 
selected products from the middle of the width and thickness ranges for 
the two HTSUS categories used to calculate EP. Based on the selected 
product dimensions, they used the table to calculate the price extras. 
The petitioners made no other adjustments to NV.
Price-to-CV Comparisons
    The petitioners also provided information demonstrating reasonable 
grounds to believe or suspect that sales of cold-rolled steel in the 
home market were made at prices below the fully absorbed cost of 
production (COP), within the meaning of section 773(b) of the Act, and 
requested that the Department conduct a country-wide sales-below-cost 
investigation.
    Pursuant to section 773(b)(3) of the Act, COP consists of cost of 
manufacturing (COM), selling, general and administrative (SG&A) 
expenses, and packing. The petitioners calculated COM based on their 
own production experience, adjusted for known differences between costs 
incurred to produce cold-rolled steel in the United States and Belgium 
using publicly available data. To calculate SG&A and interest expense, 
the petitioners relied upon amounts reported in a Belgian cold-rolled 
producer's 2000 financial statements. Based upon a comparison of the 
prices of the foreign like product in the home market to the calculated 
COP of the product, we find reasonable grounds to believe or suspect 
that sales of the foreign like product were made below the COP, within 
the meaning of section 773(b)(2)(A)(i) of the Act. Accordingly, the 
Department is initiating a country-wide cost investigation.
    Based on the cost data discussed above, petitioners found that the 
Belgian home market selling prices were below the COP. Therefore, 
pursuant to sections 773(a)(4), 773(b) and 773(e) of the Act, the 
petitioners based NV for sales in Belgium on CV. The petitioners 
calculated CV using the same COM, depreciation, SG&A and interest 
expense figures used to compute Belgian home market costs. Consistent 
with section 773(e)(2) of the Act, the petitioners included in CV an 
amount for profit. For profit, the petitioners relied upon amounts 
reported in the Belgian cold-rolled producer's 2000 financial 
statements.
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to CV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

Brazil

Export Price
    The petitioners based EP on import AUV data from official U.S. 
Census Bureau statistics for the POI for one HTSUS number. This HTSUS 
number encompasses the type of merchandise in the price quote used to 
establish NV. The petitioners state that the import statistics are ex-
factory export prices. Petitioners did not make any adjustment to the 
AUV data when calculating EP, because they argued that using an 
unadjusted AUV as the export price is a conservative methodology.
Normal Value
    With respect to NV, the petitioners provided home market prices 
that were obtained from foreign market research for grades and sizes of 
cold-rolled steel encompassed by the HTSUS category in the AUV data 
used to establish EP. The home market price was in effect during the 
period of the AUV data. Because the price quote was ex-works, 
petitioners made no adjustments to the price quote when calculating NV.
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to NV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

France

Export Price
    The petitioners based EP on import AUV data from official U.S. 
Census Bureau statistics for the POI for two HTSUS categories. The 
petitioners did not make any adjustment to the AUV data when 
calculating EP, because they argued that using an unadjusted AUV as the 
export price is a conservative methodology.
Normal Value
    With respect to NV, the petitioners provided home market prices 
that were obtained from foreign market research. The petitioners state 
that the home market price quotations were ex-factory, exclusive of all 
taxes and inclusive of quantity rebates. The market researcher provided 
a table for calculating price extras based on the dimensions of the 
product. Petitioners calculated the price extra for each HTSUS category 
by

[[Page 54207]]

averaging the price extra for each length-width combination on the 
chart that falls within the length-width range of the HTSUS category, 
and adjusted the prices accordingly.
Price-to-CV Comparisons
    The petitioners also provided information demonstrating reasonable 
grounds to believe or suspect that sales of cold-rolled steel in the 
home market were made at prices below the fully absorbed COP, within 
the meaning of section 773(b) of the Act, and requested that the 
Department conduct a country-wide sales-below-cost investigation.
    Pursuant to section 773(b)(3) of the Act, COP consists of COM, SG&A 
expenses, and packing. The petitioners calculated COM based on their 
own experience, adjusted for known differences between costs incurred 
to produce cold-rolled steel in the United States and France using 
publicly available data. To calculate depreciation, SG&A, and interest, 
the petitioners used the consolidated, 2000 financial statements of a 
French cold-rolled steel producer that petitioners believe to be 
representative of cold-rolled steel producers in France. Based upon a 
comparison of the prices of the foreign like product in the home market 
to the calculated COP of the product, we find reasonable grounds to 
believe or suspect that sales of the foreign like product were made 
below the COP, within the meaning of section 773(b)(2)(A)(i) of the 
Act. Accordingly, the Department is initiating a country-wide cost 
investigation.
    Based on the cost data discussed above, petitioners found that the 
French home market selling prices were below the COP. Therefore, 
pursuant to sections 773(a)(4), 773(b) and 773(e) of the Act, the 
petitioners based NV for sales in France on CV. The petitioners 
calculated CV using the same COM, SG&A and interest expense figures 
used to compute French home market costs. Consistent with section 
773(e)(2) of the Act, the petitioners included in CV an amount for 
profit. For profit, the petitioners relied upon amounts reported in the 
same French steel producer's consolidated 2000 financial statements.
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to CV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

Germany

Export Price
    The petitioners based EP on import AUV data from official U.S. 
Census Bureau statistics for the POI for two HTSUS categories. The 
petitioners did not make any adjustment to the AUV data when 
calculating EP, because they argued that using an unadjusted AUV as the 
export price is a conservative methodology.
Normal Value
    With respect to NV, the petitioners provided home market prices 
that were obtained from foreign market research. The petitioners state 
that the home market price quotations were ex-factory, exclusive of all 
taxes and inclusive of quantity rebates. The market researcher provided 
a table for calculating price extras based on the dimensions of the 
product. Petitioners calculated the price extra for each HTSUS category 
by averaging the price extra for each length-width combination on the 
chart that falls within the length-width range of the HTSUS category, 
and adjusted the prices accordingly. No other adjustments to prices 
were made.
Price-to-CV Comparisons
    The petitioners also provided information demonstrating reasonable 
grounds to believe or suspect that sales of cold-rolled steel in the 
home market were made at prices below the fully absorbed COP, within 
the meaning of section 773(b) of the Act, and requested that the 
Department conduct a country-wide sales-below-cost investigation.
    Pursuant to section 773(b)(3) of the Act, COP consists of COM, SG&A 
expenses, and packing. The petitioners calculated COM based on their 
own production experience, adjusted for known differences between costs 
incurred to produce cold-rolled steel in the United States and Germany 
using publicly available data. To determine depreciation, SG&A, and 
interest, the petitioners used the consolidated, 2000 financial 
statements of a German cold-rolled steel producer that petitioners 
believe to be representative of cold-rolled steel producers in Germany. 
Based upon a comparison of the prices of the foreign like product in 
the home market to the calculated COP of the product, we find 
reasonable grounds to believe or suspect that sales of the foreign like 
product were made below the COP, within the meaning of section 
773(b)(2)(A)(i) of the Act. Accordingly, the Department is initiating a 
country-wide cost investigation.
    Based on the cost data discussed above, petitioners found that the 
German home market selling prices were below the COP. Therefore, 
pursuant to sections 773(a)(4), 773(b) and 773(e) of the Act, the 
petitioners based NV for sales in Germany on CV. The petitioners 
calculated CV using the same COM, SG&A and interest expense figures 
used to compute German home market costs. Consistent with section 
773(e)(2) of the Act, the petitioners included in CV an amount for 
profit. The petitioners relied upon amounts reported in the same German 
steel producer's consolidated 2000 financial statements to determine 
the amount for profit.
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to CV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

India

Export Price
    Petitioners obtained an offer which documents the sales terms for 
certain Indian cold-rolled steel in the United States. Petitioners 
calculated a net U.S. price by deducting port charges, freight charges, 
shipping charges, custom duties, and trading company mark-up. No other 
adjustments to prices were made.
Normal Value
    With respect to NV, the petitioners provided home market prices 
that were obtained from foreign market research for grades and sizes of 
cold-rolled steel comparable to the products exported to the United 
States, which serve as the basis for EP. The petitioners made no 
adjustment to NV.
Price-to-CV Comparisons
    The petitioners also provided information demonstrating reasonable 
grounds to believe or suspect that sales of cold-rolled steel in the 
home market were made at prices below the fully absorbed COP, within 
the meaning of section 773(b) of the Act, and requested that the 
Department conduct a country-wide sales-below-cost investigation.
    Pursuant to section 773(b)(3) of the Act, COP consists of COM, SG&A 
expenses, and packing. The petitioners used publicly available data 
from Ispat Industries, Ltd.'s (Ispat's) March 31, 2001 financial 
statements for the cost of the raw material input, hot-rolled coil. The 
cost of transforming the hot-rolled coil into subject merchandise was 
based on petitioners' own experience adjusted for known differences 
between costs

[[Page 54208]]

incurred to produce cold-rolled steel in the United States and India 
using publicly available data. To calculate depreciation, SG&A and 
interest expense, the petitioners relied upon amounts reported in 
Ispat's 2001 financial statements. However, because Ispat does not 
separately report depreciation attributable to the company's cold-
rolling operations, petitioners excluded depreciation relative to the 
cold-rolling operations from the calculation of COP. Based upon a 
comparison of the prices of the foreign like product in the home market 
to the calculated COP of the product, we find reasonable grounds to 
believe or suspect that sales of the foreign like product were made 
below the COP, within the meaning of section 773(b)(2)(A)(i) of the 
Act. Accordingly, the Department is initiating a country-wide cost 
investigation.
    Based on the cost data discussed above, petitioners found that the 
Indian home market selling prices were below the COP. Therefore, 
pursuant to sections 773(a)(4), 773(b) and 773(e) of the Act, the 
petitioners based NV for sales in India on CV. The petitioners 
calculated CV using the same COM, SG&A and interest expense figures 
used to compute Indian home market costs. Consistent with section 
773(e)(2) of the Act, the petitioners included in CV an amount for 
profit. For profit, the petitioners relied upon amounts reported in 
Tata Iron and Steel Company, Ltd.'s 2001 financial statements because 
Ispat reported a net loss for the year. Because the Department prefers 
COM, SG&A and profit to be obtained from the same source, we have 
included a profit rate of zero. However, if we need to rely on the use 
of facts otherwise available in the future, we will then pursue 
alternative methods for computing the profit rate.
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to CV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

Japan

Export Price
    To calculate EP, petitioners obtained two U.S. price quotes for 
merchandise produced in Japan for sale to the United States. 
Petitioners stated that the merchandise quoted would fall under HTSUS 
numbers 7209.16.00.90 and 7209.17.00.90. Because terms of sale were 
cost, insurance, and freight (CIF), petitioners made adjustments to 
these prices for ocean freight, customs duties, port charges (unloading 
and wharfage), and a trading company mark-up to calculate net EP. No 
other adjustments to prices were made.
Normal Value
    With respect to NV, petitioners used foreign market research to 
obtain home market price quotes corresponding to the merchandise for 
which petitioners obtained its U.S. price information. Petitioners made 
no adjustments to the home market price. Although the petitioners 
provided information on home market prices, they also provided 
information demonstrating reasonable grounds to believe or suspect that 
sales of cold-rolled steel in the home market were made at prices below 
the fully absorbed COP, within the meaning of section 773(b) of the 
Act, and requested that the Department conduct a country-wide sales-
below-cost investigation.
Price-to-CV Comparisons
    Pursuant to section 773(b)(3) of the Act, COP consists of COM, SG&A 
expenses, and packing. The petitioners calculated COM based on their 
own production experience, adjusted for known differences between costs 
incurred to produce cold-rolled steel in the United States and Japan 
using publicly available data. To calculate SG&A and interest expense, 
the petitioners relied upon amounts reported in a Japanese cold-rolled 
producer's 2001 financial statements. Based upon a comparison of the 
prices of the foreign like product in the home market to the calculated 
COP of the product, we find reasonable grounds to believe or suspect 
that sales of the foreign like product were made below the COP, within 
the meaning of section 773(b)(2)(A)(i) of the Act. Accordingly, the 
Department is initiating a country-wide cost investigation.
    Based on the cost data discussed above, petitioners found that the 
Japanese home market selling prices were below the COP. Therefore, 
pursuant to sections 773(a)(4), 773(b) and 773(e) of the Act, the 
petitioners based NV for sales in Japan on CV. The petitioners 
calculated CV using the same COM, SG&A and interest expense figures 
used to compute Japanese home market costs. Consistent with section 
773(e)(2) of the Act, the petitioners included in CV an amount for 
profit. For profit, the petitioners relied upon amounts reported in the 
Japanese steel producer's 2001 financial statements.
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to CV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

Korea

Export Price
    The petitioners based EP on import AUV data from official U.S. 
Census Bureau statistics for the POI for two HTSUS categories. The 
petitioners did not make any adjustment to the AUV data when 
calculating EP, because they argued that using an unadjusted AUV as the 
export price is a conservative methodology.
Normal Value
    With respect to NV, the petitioners provided home market prices 
that were obtained from foreign market research for grades and sizes of 
cold-rolled steel comparable to the products exported to the United 
States, which serve as the basis for EP. The home market price employed 
was the average of the range of Korea's transaction prices reported in 
the foreign market research report and are for products comparable to 
the HTSUS categories used for EP. The petitioners state that the price 
is ex-factory and have made no adjustments.
Price-to-CV Comparisons
    The petitioners also provided information demonstrating reasonable 
grounds to believe or suspect that sales of cold-rolled steel in the 
home market were made at prices below the fully absorbed COP, within 
the meaning of section 773(b) of the Act, and requested that the 
Department conduct a country-wide sales-below-cost investigation.
    Pursuant to section 773(b)(3) of the Act, COP consists of COM, SG&A 
expenses, and packing. The petitioners' calculated COM based on their 
own experience, adjusted for known differences between costs incurred 
to produce cold-rolled steel in the United States and Korea using 
publicly available data. To calculate depreciation, SG&A, and interest, 
the petitioners used the consolidated, 2000 financial statements of a 
Korean cold-rolled steel producer that petitioners believe to be 
representative of cold-rolled steel producers in Korea. Based upon a 
comparison of the prices of the foreign like product in the home market 
to the calculated COP of the product, we find reasonable grounds to 
believe or suspect that sales of the foreign like product were made 
below the COP, within the meaning of section 773(b)(2)(A)(i) of the 
Act. Accordingly, the Department is initiating a country-wide cost 
investigation.

[[Page 54209]]

    Based on the cost data discussed above, petitioners found that the 
Korean home market selling prices were below the COP. Therefore, 
pursuant to sections 773(a)(4), 773(b) and 773(e) of the Act, the 
petitioners based NV for sales in Korea on CV. The petitioners 
calculated CV using the same COM, SG&A and interest expense figures 
used to compute Korean home market costs. Consistent with section 
773(e)(2) of the Act, the petitioners calculated an amount for profit. 
For profit, the petitioners relied upon amounts reported in the same 
Korean steel producer's consolidated 2000 financial statements. 
However, this amount was not included in their margin calculations.
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to CV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

The Netherlands

Export Price
    The petitioners based EP on import AUV data from official U.S. 
Census Bureau statistics for the POI for two HTSUS categories. The 
petitioners did not make any adjustment to the AUV data when 
calculating EP, because they argued that using an unadjusted AUV as the 
export price is a conservative methodology.
Normal Value
    With respect to NV, the petitioners provided home market prices 
that were obtained from foreign market research for grades and sizes of 
subject merchandise comparable with products falling under two HTSUS 
categories 7209.16.00.90 and 7209.17.00.90, the products exported to 
the United States which serve as the basis for EP. The petitioners 
state that the home market price quotation excluded delivery charges 
(i.e., FOB plant) and they made an adjustment only for published price 
extras.
Price-to-CV Comparisons
    Petitioners also provided information demonstrating reasonable 
grounds to believe or suspect that sales of cold-rolled steel in the 
home market were made at prices below the fully absorbed COP, within 
the meaning of section 773(b) of the Act, and requested that the 
Department conduct a country-wide sales-below-cost investigation.
    Pursuant to section 773(b)(3) of the Act, COP consists of COM, SG&A 
expenses, and packing. Petitioners calculated COM based on their own 
production experience, adjusted for known differences between costs 
incurred to produce cold-rolled steel in the United States and the 
Netherlands using publicly available data. To calculate SG&A, 
petitioners relied upon amounts reported in a Dutch cold-rolled 
producer's consolidated 2000 financial statements. For interest 
expense, petitioners also used the Dutch company's consolidated 2000 
financial statements. Based upon a comparison of the prices of the 
foreign like product in the home market to the calculated COP of the 
product, we find reasonable grounds to believe or suspect that sales of 
the foreign like product were made below the COP, within the meaning of 
section 773(b)(2)(A)(i) of the Act. Accordingly, the Department is 
initiating a country-wide cost investigation.
    Based on the cost data discussed above, petitioners found that the 
Dutch home market selling prices were below the COP. Therefore, 
pursuant to sections 773(a)(4), 773(b) and 773(e) of the Act, 
petitioners based NV for sales in the Netherlands on CV. The 
petitioners calculated CV using the same COM, SG&A and interest expense 
figures used to compute Dutch home market costs. Consistent with 
section 773(3)(2) of the Act, petitioners included in CV an amount for 
profit. For profit, petitioners relied upon figures reported in the 
financial statements for the cold-rolled producer's parent company, 
because such information was not reported in the Dutch cold-rolled 
producer's financial statements.
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to CV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

New Zealand

Export Price/Contructed Export Price
    The petitioners based U.S. price on import AUV data from official 
U.S. Census Bureau statistics for the POI for one HTSUS category. 
Petitioners state that U.S. price should be based upon CEP because they 
believe that much if not all of the cold-rolled steel produced by New 
Zealand Steel Ltd. (NZS), a subsidiary of BHP Billiton, is sold by BHP 
Steel Americas, which is also owned by BHP Billiton. Therefore, 
petitioners argue that U.S. sales should be classified as CEP sales. 
However, as petitioners have no information regarding the nature or the 
amount of expenses incurred in the United States for BHP Steel 
Americas' sales of cold-rolled steel produced by NZS, they have made no 
adjustments to U.S. price to reflect CEP expenses. Therefore, we have 
used EP as the basis for our comparison.
Normal Value
    With respect to NV, the petitioners provided home market prices 
that were obtained from sales offers for grades and sizes of cold-
rolled steel comparable to the products exported to the United States, 
which serve as the basis for EP. The petitioners made an adjustment for 
home market freight expenses.
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to NV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

The People's Republic of China

Export Price
    The petitioners based EP on import AUV data from official U.S. 
Census Bureau statistics for the POI for two HTSUS categories. The 
petitioners did not make an adjustment to the AUV data for foreign 
inland freight when calculating EP, because they argued that most of 
the PRC producers' mills are close to the port.
Normal Value
    Petitioners assert that the Department has long treated the PRC as 
an NME country. Pursuant to section 771(18)(C)(i) of the Act, because 
the PRC's status as an NME remains in effect, the petitioners 
determined the dumping margin using a FOP analysis.
    The petitioners assert that information regarding the PRC's mills' 
consumption rates is not available. Therefore, petitioners based the 
FOP, as defined by section 773(c)(3) of the Act, on the consumption 
rates of one U.S. producer of the subject merchandise (U.S. surrogate). 
Petitioners assert that both the U.S. surrogate and the Chinese 
producers use basic oxygen converters to make steel.
    Petitioners assert that India is the most appropriate surrogate 
country for the PRC, claiming that India is: (1) A market economy; (2) 
a significant producer of comparable merchandise; and (3) at a level of 
economic development comparable to the PRC in terms of per capita GNP. 
Based on the information provided by the petitioners, we believe that 
the petitioners' use of

[[Page 54210]]

India as a surrogate country is appropriate for purposes of initiating 
this investigation.
    For most raw material inputs, petitioners used the values reported 
in the Monthly Statistics of the Foreign Trade of India (Indian Import 
Statistics) for February 2001. The petitioners excluded the imports 
from NME countries in the calculation of import surrogate values. 
Petitioners believed that the Indian value of slag as given in the 
Indian Import Statistics was aberrational because it was over $1,000/
ton. Therefore, petitioners used the price derived from Mineral 
Commodity Summaries, January 2001. Because this value was for the year 
2000, petitioners inflated the value to June 2001 levels using the U.S. 
Producer's Price Index. Petitioners made a by-product offset to COM for 
coke oven gas, blast furnace gas, and salvageable scrap. They valued 
these by-products using the Indian Import Statistics. Regarding iron 
input costs, petitioners amended their original calculation in their 
amendment to the petitions dated October 12, 2001. Please see the 
proprietary discussion in the Initiation Checklist.
    Petitioners valued direct labor using the labor rates indicated on 
the Import Administration's website (http://ia.ita.doc.gov/wages).
    Petitioners valued electricity using Energy Prices and Taxes, 
Second Quarter 2001, published by the Organization for Economic 
Cooperation and Development's International Energy Agency. Because the 
latest price is for the year 1997, petitioners adjusted this price to 
June 2001 levels using the Indian wholesale price index. Petitioner 
took the surrogate value for natural gas from the 1999 financial report 
of EOG Resources, Inc. Because this figure is denominated in U.S. 
dollars, petitioners inflated this figure to June 2001 levels using the 
U.S. wholesale price index. Petitioners derived the surrogate value for 
blast furnace gas from a ratio the Department calculated and utilized 
in Final Determination of Sales at Less Than Fair Value: Hot-Rolled 
Flat-Rolled Carbon Quality Steel Products from the Russian Federation, 
64 FR 38626 (July 19, 1999) (factor value memorandum). Petitioners took 
the surrogate values for oxygen, argon, and nitrogen from a price quote 
published in 1997 on the website of Bhoruka Gases Limited, an Indian 
gas manufacturer, adjusted for inflation.
    For depreciation, overhead, SG&A expenses, and profit, the 
petitioners applied rates derived from the 2000-2001 financial 
statement of an Indian producer of subject merchandise, Tata Iron & 
Steel Co., Ltd.
    Petitioners did not include packing materials in its computation 
because it was unable to obtain information on this expense. 
Petitioners valued packing labor using the direct labor rate published 
on the Department's website.
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to NV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

The Russian Federation

Export Price
    The petitioners based EP on the import AUV data from official U.S. 
Census Bureau statistics for the POI for two HTSUS categories. 
Petitioners deducted estimated foreign inland freight by applying a 
surrogate freight rate to the average distance from two Russian 
producers' mills to the nearest port. No other adjustments to prices 
were made.
Normal Value
    Petitioners assert that the Department has long treated Russia as a 
NME country. Pursuant to section 771(18)(C)(i) of the Act, because 
Russia's status as an NME remains in effect, the petitioners determined 
the dumping margin using a FOP analysis.
    The petitioners assert that information regarding Russian mills' 
consumption rates is not available. Therefore, petitioners based the 
FOP, as defined by section 773(c)(3) of the Act, on the consumption 
rates of one U.S. producer of the subject merchandise (U.S. surrogate). 
Petitioners assert that both the U.S. surrogate and the Russian 
producers use basic oxygen converters to make steel.
    Petitioners assert that South Africa is the most appropriate 
surrogate country for the PRC, claiming that South Africa is: (1) A 
market economy; (2) a significant producer of comparable merchandise; 
and (3) at a level of economic development comparable to Russia in 
terms of per capita GNP. Based on the information provided by the 
petitioners, we believe that the petitioners' use of South Africa as a 
surrogate country is appropriate for purposes of initiating this 
investigation.
    For most raw material inputs, petitioners used the values reported 
in the United Nations Commodity Trade Statistics (UNCTS) for 1998. The 
petitioners excluded the imports from NME countries in the calculation 
of import surrogate values. They adjusted these prices to June 2001 
levels using the South African consumer price index. Petitioners 
believed that the South African values for slag and limestone as given 
in the UNCTS were too high and were, therefore, aberrational. 
Therefore, petitioners used the prices reported in the World Trade 
Atlas, compiled by Global Trade Information Services, Inc. Regarding 
iron input costs, petitioners amended their original calculation in 
their amendment to the petition dated October 12, 2001. Please see the 
proprietary discussion in the Initiation Checklist. Petitioners made a 
by-product offset to COM for coke oven gas, blast furnace gas, and 
salvageable scrap. They valued these by-products using the UNCTS.
    Petitioners valued direct labor using the labor rates indicated on 
the Import Administration's website (http://ia.ita.doc.gov/wages).
    Petitioners valued electricity using statistics reported in the 
2000 annual financial statement of Eskom, the electricity provider in 
South Africa. Because the latest price is for the year 2000, 
petitioners adjusted this price to June 2001 levels using the South 
African wholesale price index. Petitioners took the surrogate value for 
natural gas from the 1999 edition of Key World Energy Statistics 
published by OECD's International Energy Agency. Petitioners applied an 
inflator based on the Producer's Price Index (PPI) to adjust it to June 
2001 levels. Petitioners derived the surrogate value for blast furnace 
gas, oxygen, argon, and nitrogen from ratios the Department calculated 
and utilized in Final Determination of Sales at Less Than Fair Value: 
Hot-Rolled Flat-Rolled Carbon Quality Steel Products from the Russian 
Federation, 64 FR 38626 (July 19, 1999) (factor value memorandum).
    For depreciation, overhead, SG&A expenses, and profit, the 
petitioners applied rates derived from the 1999-2000 financial 
statement of a South African steel producer.
    Petitioners did not include packing materials in its computation 
because it was unable to obtain information on this expense. 
Petitioners valued packing labor using the direct labor rate published 
on Import Administration's website (http://ia.ita.doc.gov/wages).
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to NV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

[[Page 54211]]

South Africa

Constructed Export Price
    The petitioners identified one company that produces subject 
merchandise in South Africa. The petitioners state that this one 
producer accounts for the majority of all cold-rolled steel production 
in South Africa. Also, the petitioners state that this producer sells 
subject merchandise through its U.S. affiliate, a global trading 
company. The petitioners based CEP on the import AUV data from official 
U.S. Census Bureau statistics for the POI for one HTSUS category. This 
HTSUS category encompasses the type of merchandise in the price quote 
used to establish NV. The petitioners state that the import statistics 
are the ex-factory export prices and they made no adjustments for 
transportation to the AUV data when calculating CEP. The petitioners 
calculated a net U.S. price by subtracting port charges.
Normal Value
    The petitioners based NV on domestic prices of cold-rolled steel 
comparable to the products exported during a month within the POI. The 
petitioners used prices for a recent offer for sale by Iscor, a South 
African company, to unaffiliated customers in South Africa as the 
starting point in calculating NV. The price quote covered the same 
products that were included in the HTSUS category used as the basis to 
establish EP. The petitioners adjusted this price by adding processing 
fees and by subtracting home market movement charges and home market 
credit expenses.
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to NV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

Spain

Export Price
    The petitioners based EP on import AUV data from official U.S. 
Census Bureau statistics for the POI for one HTSUS classification. This 
HTSUS classification encompasses the type of merchandise in the price 
quote used to establish NV. The petitioners did not make any adjustment 
to the AUV data when calculating EP, because they argued that using an 
unadjusted AUV as the export price is a conservative methodology.
Normal Value
    With respect to NV, the petitioners provided home market prices 
that were obtained from foreign market research for grades and sizes of 
cold-rolled steel comparable to the products exported to the United 
States which serve as the basis for EP. The home-market price was in 
effect during the period of the AUV data. The price quote was ex-works 
so petitioners made no adjustments to the price quote when calculating 
NV.
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to NV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

Sweden

Export Price
    The petitioners based EP on import AUV data from official U.S. 
Census Bureau statistics for the POI for one HTSUS category. The 
petitioners did not make any adjustment to the AUV data when 
calculating EP, because they argued that using an unadjusted AUV as the 
export price is a conservative methodology.
Normal Value
    From a market researcher, petitioners obtained an affidavit 
reporting the home market prices based upon a price quote from SSAB 
Svenskt Stal AB to an unaffiliated purchaser in Sweden. The quoted 
price was given in Swedish kroner per metric ton. The terms of sale 
were delivered. The petitioner deducted freight costs from the home 
market prices. Conservatively, the highest freight cost (i.e., maximum 
freight expense for longest distance) were used as stated in the given 
quote. The petitioners price quote did not include credit terms so no 
adjustment was made for credit expense. For comparisons to EP, the 
petitioners converted the net home market prices to U.S. dollars based 
on the average exchange rate in effect during the POI.
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to NV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

Taiwan

Export Price
    The petitioners based EP on import AUV data from official U.S. 
Census Bureau statistics for one HTSUS classification. This HTSUS 
classification encompasses the type of merchandise in the price quote 
used to establish NV. The petitioners did not make any adjustment to 
the AUV data when calculating EP, because they argued that using an 
unadjusted AUV as the export price is a conservative methodology.
Normal Value
    With respect to NV, the petitioner obtained home market prices, 
through market research, for a grade of cold-rolled steel comparable to 
the product exported to the United States (which serves as the basis 
for EP). The home market price was in effect during the period of the 
AUV data. Petitioners made no adjustments to the price quote when 
calculating NV.
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to NV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

Thailand

Export Price
    To calculate EP, petitioners used import AUV data from official 
U.S. Census Bureau statistics for the POI for two HTSUS categories. The 
petitioners did not make any adjustment to the AUV data when 
calculating EP, because they argued that using an unadjusted AUV as the 
export price is a conservative methodology.
Normal Value
    With respect to NV, petitioners provided home market prices 
obtained through foreign market research for various sizes of cold-
rolled steel comparable to the products exported to the United States 
which serve as a basis for EP. As these were ex-factory prices, 
petitioners made no adjustments to the calculated average home market 
prices.
Price-to-CV Comparisons
    The petitioners also provided information demonstrating reasonable 
grounds to believe or suspect that sales of cold-rolled steel in the 
home market were made at prices below the fully absorbed COP, within 
the meaning of section 773(b) of the Act, and requested that the 
Department conduct a country-wide sales-below-cost investigation.
    Pursuant to section 773(b)(3) of the Act, COP consists of COM, SG&A 
expenses, and packing. The petitioners calculated COM based on their 
own production experience, adjusted for known differences between costs

[[Page 54212]]

incurred to produce cold-rolled steel in the United States and Thailand 
using publicly available data. To calculate SG&A and interest, the 
petitioners relied upon amounts reported in a Thai producer of cold-
rolled steel's 1999 financial statements. Based upon a comparison of 
the prices of the foreign like product in the home market to the 
calculated COP of the product, we find reasonable grounds to believe or 
suspect that sales of the foreign like product were made below the COP, 
within the meaning of section 773(b)(2)(A)(i) of the Act. Accordingly, 
the Department is initiating a country-wide cost investigation.
    Based on the cost data discussed above, petitioners found that the 
Thai home market selling prices were below the COP. Therefore, pursuant 
to sections 773(a)(4), 773(b) and 773(e) of the Act, the petitioners 
based NV for sales in Thailand on CV. The petitioners calculated CV 
using the same COM, SG&A and interest expense figures used to compute 
Thai home market costs. Consistent with section 773(e)(2) of the Act, 
the petitioners included in CV an amount for profit. For profit, the 
petitioners relied upon amounts reported in the Thai cold-rolled steel 
producer's 1999 financial statements.
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to CV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

Turkey

Export Price
    To calculate EP for Turkish producers of cold-rolled steel, 
petitioners obtained a U.S. price quote for merchandise produced in 
Turkey for sale to the United States. For this U.S. price quote, 
petitioners made adjustments to net EP for ocean freight and U.S. 
Customs duty. Petitioners also provided import AUV data from official 
U.S. Census Bureau statistics. We based net EP on the price quote 
obtained.
Normal Value
    With respect to NV, petitioners provided home market prices 
obtained through foreign market research for various sizes of cold-
rolled steel comparable to the products exported to the United States 
which serve as a basis for EP. Petitioners adjusted the ex-factory 
normal value to account for a quantity discount, a payment in cash 
discount, and rebates.
Price-to-CV Comparisons
    The petitioners also provided information demonstrating reasonable 
grounds to believe or suspect that sales of cold-rolled steel in the 
home market were made at prices below the fully absorbed COP, within 
the meaning of section 773(b) of the Act, and requested that the 
Department conduct a country-wide sales-below-cost investigation.
    Pursuant to section 773(b)(3) of the Act, COP consists of COM, SG&A 
expenses, and packing. The petitioners calculated COM based on their 
own production experience, adjusted for known differences between costs 
incurred to produce cold-rolled steel in the United States and Turkey 
using publicly available data. To determine depreciation, SG&A, and 
interest, the petitioners used the consolidated, 2000 financial 
statements of a Turkish cold-rolled steel producer that petitioners 
believe to be representative of cold-rolled steel producers in Turkey. 
Based upon a comparison of the prices of the foreign like product in 
the home market to the calculated COP of the product, we find 
reasonable grounds to believe or suspect that sales of the foreign like 
product were made below the COP, within the meaning of section 
773(b)(2)(A)(i) of the Act. Accordingly, the Department is initiating a 
country-wide cost investigation.
    Based on the cost data discussed above, petitioners found that the 
Turkish home market selling prices were below the COP. Therefore, 
pursuant to sections 773(a)(4), 773(b) and 773(e) of the Act, the 
petitioners based NV for sales in Turkey on CV. The petitioners 
calculated CV using the same COM, SG&A, and interest expense figures 
used to compute Turkish home market costs. Consistent with section 
773(e)(2) of the Act, the petitioners included in CV an amount for 
profit. The petitioners relied upon amounts reported in the same 
Turkish steel producer's consolidated 2000 financial statements to 
determine the amount for profit.
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to CV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

Venezuela

Export Price
    To calculate EP, petitioners used import AUV data from official 
U.S. Census Bureau statistics for the POI for one HTSUS category. 
Because the import price represented a free-along-side price, no 
adjustments were made to calculate net EP.
Normal Value
    With respect to NV, petitioners provided home market prices 
obtained through foreign market research for various sizes of cold-
rolled steel comparable to the products exported to the United States 
which serve as a basis for EP. The terms of sale were ex-factory. No 
adjustments were made to normal value.
    Based on an examination of the information submitted in the 
petition, adjusted where appropriate, and comparing EP to NV, we have 
determined that, for purposes of this initiation, there is a reasonable 
basis to believe or suspect that dumping has occurred (see Initiation 
Checklist).

Initiation of Cost Investigations

    As noted above, pursuant to section 773(b) of the Act, the 
petitioners provided information demonstrating reasonable grounds to 
believe or suspect that sales in the home markets of Belgium, France, 
Germany, India, Japan, Korea, the Netherlands, Thailand, and Turkey 
were made at prices below the fully absorbed COP and, accordingly, 
requested that the Department conduct country-wide sales-below-COP 
investigations in connection with the requested antidumping 
investigations for these countries. The Statement of Administrative 
Action (SAA), submitted to the U.S. Congress in connection with the 
interpretation and application of the URAA, states that an allegation 
of sales below COP need not be specific to individual exporters or 
producers. SAA, H. Doc. 103-316, Vol. 1, 103d Cong., 2d Session, at 833 
(1994). The SAA, at 833, states that ``Commerce will consider 
allegations of below-cost sales in the aggregate for a foreign country, 
just as Commerce currently considers allegations of sales at less than 
fair value on a country-wide basis for purposes of initiating an 
antidumping investigation.'' Further, the SAA provides that ``new 
section 773(b)(2)(A) retains the current requirement that Commerce have 
`reasonable grounds to believe or suspect' that below cost sales have 
occurred before initiating such an investigation. `Reasonable grounds' 
exist when an interested party provides specific factual information on 
costs and prices, observed or constructed, indicating that sales in the 
foreign market in question are at below-cost prices.'' Id. Based upon 
the comparison of the adjusted prices from the petition for the 
representative foreign like products to their COPs, we find the

[[Page 54213]]

existence of ``reasonable grounds to believe or suspect'' that sales of 
these foreign like products in the markets of Belgium, France, Germany, 
India, Japan, Korea, the Netherlands, Thailand, and Turkey were made at 
prices below their respective COPs within the meaning of section 
773(b)(2)(A)(i) of the Act. Accordingly, the Department is initiating 
the requested country-wide cost investigations.

Fair Value Comparisons

    The Department has examined the adequacy and accuracy of the 
information the petitioners used in their calculations of U.S. and home 
market prices and has found that it represents information reasonably 
available to petitioners supporting the allegations of dumping (see 
Initiation Checklist).
    Based on the data provided by the petitioners, there is reason to 
believe that imports of certain cold-rolled steel from Argentina, 
Australia, Belgium, Brazil, France, Germany, India, Japan, Korea, the 
Netherlands, New Zealand, the People's Republic of China, the Russian 
Federation, South Africa, Spain, Sweden, Taiwan, Thailand, Turkey, and 
Venezuela are being, or are likely to be, sold at less than fair value.

Allegations and Evidence of Material Injury and Causation

    The petitions allege that the U.S. industry producing the domestic 
like product is being materially injured, or is threatened with 
material injury, by reason of the individual and cumulated imports of 
the subject merchandise sold at less than NV. The petitioners contend 
that the industry's injured condition is evident in the stagnation of 
U.S. producers' sales volumes and profits, the decline of their 
capacity utilization, the increase of U.S. inventories and closures of 
U.S. production facilities. The allegations of injury and causation are 
supported by relevant evidence including U.S. Customs import data, lost 
sales, and pricing information. We have examined the accuracy and 
adequacy of the evidence provided in the petitions and have determined 
that the petitions allege the elements necessary for the imposition of 
a duty under section 731 of the Act and contain information reasonably 
available to the petitioner supporting the allegations (see Initiation 
Checklist, Material Injury section).

Initiation of Antidumping Investigations

    Based upon our examination of the petitions on certain cold-rolled 
steel and the petitioners' responses to our supplemental questionnaires 
clarifying the petitions, as well as our conversations with the foreign 
market researchers who provided information concerning various aspects 
of the petition, we have found that the petitions meet the requirements 
of section 732 of the Act. See Initiation Checklist. Therefore, we are 
initiating antidumping duty investigations to determine whether imports 
of certain cold-rolled steel from Argentina, Australia, Belgium, 
Brazil, France, Germany, India, Japan, Korea, the Netherlands, New 
Zealand, the People's Republic of China, the Russian Federation, South 
Africa, Spain, Sweden, Taiwan, Thailand, Turkey, and Venezuela are 
being, or are likely to be, sold in the United States at less than fair 
value. Unless this deadline is postponed, we will make our preliminary 
determinations no later than 140 days after the date of this 
initiation.

Distribution of Copies of the Petitions

    In accordance with section 732(b)(3)(A) of the Act, a copy of the 
public versions of the petitions have been provided to the 
representatives of the governments of Argentina, Australia, Belgium, 
Brazil, France, Germany, India, Japan, Korea, the Netherlands, New 
Zealand, the People's Republic of China, the Russian Federation, South 
Africa, Spain, Sweden, Taiwan, Thailand, Turkey, and Venezuela. We will 
attempt to provide a copy of the public version of the petitions to 
each exporter named in the petitions, as appropriate.

International Trade Commission Notification

    We have notified the ITC of our initiations, as required by section 
732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will determine, no later than November 13, 2001, whether 
there is a reasonable indication that imports of certain cold-rolled 
steel from Argentina, Australia, Belgium, Brazil, France, Germany, 
India, Japan, Korea, the Netherlands, New Zealand, the People's 
Republic of China, the Russian Federation, South Africa, Spain, Sweden, 
Taiwan, Thailand, Turkey, and Venezuela are causing material injury, or 
threatening to cause material injury, to a U.S. industry. A negative 
ITC determination for any country will result in the investigation 
being terminated with respect to that country; otherwise, these 
investigations will proceed according to statutory and regulatory time 
limits.
    This notice is issued and published pursuant to section 777(i) of 
the Act.

    Dated: October 18, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 01-26937 Filed 10-25-01; 8:45 am]
BILLING CODE 3510-DS-P