[Federal Register Volume 66, Number 235 (Thursday, December 6, 2001)]
[Notices]
[Pages 63365-63368]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-30286]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-852]


Notice of Preliminary Results of Antidumping Duty New Shipper 
Review: Structural Steel Beams From Japan

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

ACTION: Notice of preliminary results in the antidumping duty new 
shipper review of structural steel beams from Japan.

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SUMMARY: In response to a request from Yamato Kogyo Co., Ltd. (``Yamato 
Kogyo''), the Department of Commerce (``Department'') is conducting an 
antidumping duty new shipper review of the antidumping duty order on 
structural steel beams from Japan. This new shipper review covers 
imports of subject merchandise from Yamato Kogyo. The period of review 
is February 11, 2000 through November 30, 2000.
    The Department preliminarily determines that Yamato Kogyo has not 
made sales of structural steel beams from Japan at below normal value 
during the period of review. If these preliminary results are adopted 
in our final results of this new shipper review, we will instruct the 
U.S. Customs Service to liquidate entries during the period of review 
without regard to antidumping duties.
    Interested parties are invited to comment on these preliminary 
results. See ``Preliminary Results of the Review'' section, infra.

EFFECTIVE DATE: December 6, 2001.

FOR FURTHER INFORMATION CONTACT: Juanita H. Chen or James C. Doyle, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 1401 Constitution Avenue, NW., Washington, DC 
20230; telephone: 202-482-0409 or 202-482-0159, respectively.

SUPPLEMENTARY INFORMATION:

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as amended (``Act''), are references to the provisions effective 
January 1, 1995, the effective date of the amendments made to the Act 
by the Uruguay Round Agreements Act (``URAA''). In addition, unless 
otherwise indicated, all citations to the Department's regulations are 
to the regulations codified at 19 CFR part 351 (2000). See Antidumping 
Duties; Countervailing Duties; Final rule, 62 FR 27296 (May 19, 1997) 
(``AD/CVD Final Rule'').

Background

    On June 19, 2000, the Department published in the Federal Register 
a notice of the antidumping duty order on structural steel beams from 
Japan. See Structural Steel Beams from Japan: Notice of Antidumping 
Duty Order, 65 FR 37960 (June 19, 2000). On December 27, 2000, Yamato 
Kogyo, a producer and exporter of subject merchandise during the period 
of review (``POR''), requested that the Department conduct an 
antidumping duty new shipper review of the antidumping duty order. On 
January 24, 2001, the Department requested that Yamato Kogyo provide: 
(1) Certification that it has never been affiliated with any exporter 
or producer who exported the subject merchandise to the United States 
during the period of investigation (``POI''); (2) a list of all of its 
affiliates during the POI; and (3) clarification on whether there were 
shipments of subject merchandise during the review period subsequent to 
the shipment reported. See Letter from James C. Doyle, Program Manager 
to Thomas Rogers, Capital Trade Incorporated (January 24, 2001). The 
Department also conducted an automated customs query on January 24, 
2001, and found no shipments by Yamato Kogyo during the POI. See 
Memorandum to the File from Juanita H. Chen (January 25, 2001). On 
January 29, 2001, Yamato Kogyo submitted the requested certification, 
listing and clarification. See Letter from Thomas Rogers to Secretary 
Evans (January 29, 2001). On January 31, 2001, the Department initiated 
a new shipper review of the antidumping duty order on structural steel 
beams from Japan. See Initiation of New Shipper Antidumping Duty 
Review: Structural Steel Beams From Japan, 66 FR 10668 (February 16, 
2001).
    On February 16, 2001, the Department issued its antidumping duty 
questionnaire. Subsequently, the Department corrected the period of 
review from the requested period of June 1, 2000 through November 30, 
2000, to the current period of February 11, 2000 through November 30, 
2000. See Memorandum to the File from Juanita H. Chen (February 22, 
2001). On February 23, 2001, the Department granted Yamato Kogyo's 
request to limit its reporting period of home market sales to the three 
months preceding and two months following the months of the first and 
last U.S. sales in the POR, noting that such reporting is at Yamato 
Kogyo's own risk. See Memorandum to the file from Juanita H. Chen 
(February 23, 2001).
    On March 21, 2001, the Department received Yamato Kogyo's Section A 
response to the questionnaire (``Section A response''). On April 13, 
2001, the Department received Yamato Kogyo's Sections B and C responses 
to the questionnaire (``Sections B/C response''). On August 20, 2001, 
the Department issued a Sections A-C supplemental questionnaire. On 
September 18, 2001, the Department received Yamato Kogyo's Sections A-C 
supplemental response (``Supplemental Response''), along with revised 
data files.
    Under section 751(a)(2)(B)(iv) of the Act, the Department may 
extend the deadline for completion of a new shipper review if it 
determines that the case is extraordinarily complicated. On June 12, 
2001, the Department fully extended the time limit for the preliminary 
results of this new shipper review by 120 days until November 27, 2001. 
See Notice of Extension of Time for the Preliminary Results of the 
Antidumping Duty New Shipper Review: Structural Steel Beams from Japan, 
66 FR 32790 (June 18, 2001).
    The Department is conducting this new shipper review in accordance 
with section 751 of the Act.

Period of Review

    The POR is February 11, 2000 through November 30, 2000.

[[Page 63366]]

Verification

    Pursuant to section 782(i)(3) of the Act, the Department verified 
the information provided by Yamato Kogyo for use in our preliminary 
results. We used standard verification procedures, including on-site 
inspection of Yamato Kogyo's facilities, as well as of relevant sales 
and financial records. From October 3, 2001 through October 5, 2001, we 
conducted verification of sales information submitted by Yamato Kogyo. 
Our verification results are outlined in the public version of the 
verification report and are on file in the central records unit located 
in room B-099 of the main Department of Commerce Building, 1401 
Constitution Avenue, NW., Washington, DC. See Report on the Sales 
Verification of Yamato Kogyo Co. Ltd. (November 14, 2001) 
(``Verification Report'').

Scope of the Review

    For purposes of this investigation, the products covered are 
doubly-symmetric shapes, whether hot- or cold-rolled, drawn, extruded, 
formed or finished, having at least one dimension of at least 80 mm 
(3.2 inches or more), whether of carbon or alloy (other than stainless) 
steel, and whether or not drilled, punched, notched, painted, coated, 
or clad. These products (``Structural Steel Beams'') include, but are 
not limited to, wide-flange beams (``W'' shapes), bearing piles (``HP'' 
shapes), standard beams (``S'' or ``I'' shapes), and M-shapes.
    All products that meet the physical and metallurgical descriptions 
provided above are within the scope of this investigation unless 
otherwise excluded. The following products, are outside and/or 
specifically excluded from the scope of this investigation:
     Structural steel beams greater than 400 pounds per linear 
foot or with a web or section height (also known as depth) over 40 
inches.
    The merchandise subject to this investigation is classified in the 
Harmonized Tariff Schedule of the United States (``HTSUS'') at 
subheadings: 7216.32.0000, 7216.33.0030, 7216.33.0060, 7216.33.0090, 
7216.50.0000, 7216.61.0000, 7216.69.0000, 7216.91.0000, 7216.99.0000, 
7228.70.3040, 7228.70.6000. Although the HTSUS subheadings are provided 
for convenience and Customs purposes, the written description of the 
merchandise under investigation is dispositive.

Facts Available

    Section 776(a) of the Act provides that, if an interested party 
withholds information that has been requested by the Department, fails 
to provide such information in a timely manner or in the form or manner 
requested, significantly impedes a proceeding under the antidumping 
statute, or provides information which cannot be verified, the 
Department shall use, subject to sections 782(d) and (e) of the Act, 
facts otherwise available in reaching the applicable determination. 
Pursuant to section 782(e), the Department shall not decline to 
consider submitted information if all of the following requirements are 
met: (1) The information is submitted by the established deadline; (2) 
the information can be verified; (3) the information is not so 
incomplete that it cannot serve as a reliable basis for reaching the 
applicable determination; (4) the interested party has demonstrated 
that it acted to the best of its ability; and (5) the information can 
be used without undue difficulties. We have applied facts available for 
the reported payment date pursuant to section 776(a) of the Act because 
Yamato Kogyo did not report payment date, as requested by the 
Department. When asked for an explanation, it stated that it ``cannot 
readily {report} the specific payment date for each transaction'' and 
instead reported the payment due date based on the payment terms. See 
Sections B/C response at B-14. At verification, we noted the actual 
payment date appears on the receipt of payment. See Verification Report 
at 12. These receipts of payments show that payment on the invoice is 
made well in advance of the actual due date. Accordingly, we have used 
facts available for payment date, in order to calculate a more accurate 
credit expense by taking the simple average of the number of days 
between the shipment date and actual payment date, from those home 
market sales reviewed at verification for which actual payment date 
information is available. Additionally, for those home market sales for 
which we have actual payment date information, we have used the actual 
payment date to calculate the credit expense.

Product Comparisons

    In accordance with section 771(16) of the Act, we considered all 
structural steel beam products covered by the ``Scope of the Review'' 
section of this notice, supra, which were produced and sold by Yamato 
Kogyo in the home market during the POR, to be foreign like products 
for the purpose of determining appropriate product comparisons to U.S. 
sales of structural steel beam products. We have relied on four 
characteristics to match U.S. sales of subject merchandise to 
comparison sales of the foreign like product: hot/cold formed, shape/
size, strength/grade, and coating (listed in order of preference).

Export Price/Constructed Export Price

    In accordance with section 772(a) of the Act, export price (``EP'') 
is the price at which the subject merchandise is first sold (or agreed 
to be sold) before the date of importation by the producer or exporter 
of the subject merchandise outside of the United States to an 
unaffiliated purchaser in the United States or to an unaffiliated 
purchaser for exportation to the United States. In accordance with 
section 772(b) of the Act, constructed export price (``CEP'') is the 
price at which the subject merchandise is first sold (or agreed to be 
sold) in the United States before or after the date of importation by 
or for the account of the producer or exporter of such merchandise or 
by a seller affiliated with the producer or exporter, to a purchaser 
not affiliated with the producer or exporter. For purposes of this 
review, Yamato Kogyo has classified its sale(s) as EP sales. See 
Sections B/C response, at C-11. Yamato Kogyo identified one channel of 
distribution (sales to distributors in the U.S. market) for its U.S. 
sale(s) during the POR. Id. at C-13. Based on Yamato Kogyo's 
description of its U.S. sales process, that it sells the merchandise 
directly to unaffiliated distributors in the U.S. market, and did not 
sell in the U.S. through an affiliated U.S. importer, we preliminarily 
determine that Yamato Kogyo's sale(s) were EP sales. See Section A 
response, at A-8. We calculated EP in accordance with section 772(a) of 
the Act. We based EP on packed prices for export to distributors in the 
U.S. market. We made deductions for foreign inland freight, foreign 
brokerage and handling, foreign inland and marine insurance, and credit 
expenses in accordance with section 772(c) of the Act.

Normal Value

    In accordance with section 773(a)(1)(C) of the Act, to determine 
whether there was sufficient volume of sales in the home market to 
serve as a viable basis for calculating NV (i.e., the aggregate volume 
of home market sales of the foreign like product is greater than or 
equal to five percent of the aggregate volume of U.S. sales), we 
compared Yamato Kogyo's volume of home market sales of the foreign like 
product to the volume of U.S. sales of the subject merchandise. Because 
Yamato Kogyo's aggregate volume of home market sales of the foreign 
like

[[Page 63367]]

product was greater than five percent of its aggregate volume of U.S. 
sales for the subject merchandise, we determined that the home market 
was viable. We therefore based NV on home market sales to unaffiliated 
purchasers and to those affiliated customer sales which passed the 
arm's length test, as discussed, infra, made in the usual commercial 
quantities and in the ordinary course of trade. We made adjustments, 
where applicable, for movement expenses (i.e., inland freight, 
warehousing expense, and inland insurance) in accordance with section 
773(a)(6)(B) of the Act. We recalculated credit expenses, where 
appropriate, using actual payment dates or the average of actual 
payment dates reported. See Facts Available section of this notice, 
supra; Verification Report, at 12; Analysis Memorandum for Yamato Kogyo 
Co., Ltd. (November 27, 2001) at 3. Additionally, in accordance with 
section 773(a)(6), we deducted home market packing costs and added U.S. 
packing costs.

Arm's Length Sales

    Yamato Kogyo reported that it made home market sales of subject 
merchandise to affiliates, and also reported that it did not make sales 
of subject merchandise to affiliated parties for consumption. See 
Section A response, at A-3; see also Yamato Kogyo's Supplemental 
Response, at 11-12.
    If any sales to affiliated customers in the home market are not 
made at arm's length prices, we exclude them from our analysis because 
we consider them to be outside the ordinary course of trade. To test 
whether sales were made at arm's length prices, we compare, on a model-
specific basis, the starting prices of sales to affiliated and 
unaffiliated customers, net of all movement charges, direct selling 
expenses, and packing. Where prices to the affiliated party were on 
average 99.5 percent or more of the price to the unaffiliated parties, 
we determine that sales made to the affiliated party were at arms's 
length. See 19 CFR 351.403(c). In instances where no price ratio can be 
constructed for an affiliated customer because identical merchandise 
was not sold to unaffiliated customers, we are unable to determine that 
these sales were made at arm's length prices and, therefore, exclude 
them from our analysis. See Notice of Final Determination of Sales at 
Less Than Fair Value: Certain Cold-Rolled Carbon Steel Flat Products 
from Argentina, 58 FR 37062, 37077 (July 9, 1993). In our home market 
NV calculation, we have included Yamato Kogyo's sales to its affiliated 
customers because those sales pass the Department's arm's length test.

Date of Sale

    Yamato Kogyo stated that it reported its home market sales based on 
the shipment date of such sales. See Verification Report at Exhibit 1. 
Yamato Kogyo explained that ``the terms of the sale may change up to 
the date of shipment.'' See Sections B/C response, at B-13. Yamato 
Kogyo stated that, for the U.S. market, it issues the invoice when it 
ships the merchandise, and for the home market, it issues the invoice 
either: (1) the day of shipment, when the merchandise is loaded onto 
the barge (for sales shipped by barge); or (2) the day following 
shipment, when the merchandise is received by the customer (for sales 
shipped by truck). See Section A response, at 13. Section 351.401(i) of 
the Department's regulations states that the Department will normally 
use the date of invoice, as recorded in the exporter's or producer's 
records kept in the ordinary course of business, as the date of sale, 
but may use a date other than the date of invoice if it better reflects 
the date on which the material terms of sale are established. The 
preamble to these regulations provides an explanation of this policy, 
as well as examples of when the Department may choose to base the date 
of sale on a date other than the date of invoice. See AD/CVD Final 
Rule, 62 FR at 27348-49. From Yamato Kogyo's response, it appears that 
the material terms of sale are established by the date of shipment. 
Accordingly, for these preliminary results, in accordance with 19 CFR 
351.401(i), we based date of sale on the shipment date.

Level of Trade

    In accordance with section 773(a)(1)(B) of the Act, to the extent 
practicable, we determine NV based on sales in the comparison market at 
the same level of trade (``LOT'') as the EP transactions. As noted in 
the ``Export Price/Constructed Export Price'' section, supra, we 
preliminarily determine that Yamato Kogyo's U.S. sale(s) were EP sales. 
The NV LOT is that of the starting-price sales in the comparison market 
or, when NV is based on CV, that of the sales from which we derive SG&A 
expenses and profit. For EP sales, the LOT is also the level of the 
starting-price sale, which is usually from the exporter to the 
unaffiliated U.S. customer.
    To determine whether NV sales are at a different LOT than EP sales, 
we examine stages in the marketing process and selling functions along 
the chain of distribution between the producer and the unaffiliated 
customer. If the comparison-market sales are at a different LOT, and 
the difference affects price comparability, as manifested in a pattern 
of consistent price differences between the sales on which NV is based 
and comparison-market sales at the LOT of the export transaction, we 
make an LOT adjustment under section 773(a)(7)(A) of the Act.
    In the present review, Yamato Kogyo stated that it is not claiming 
a LOT adjustment. However, to determine whether an adjustment is 
nevertheless necessary, in accordance with the principles discussed 
above, we examined information regarding the distribution systems and 
selling functions in both the United States and Japanese markets.
    For the LOT in the home market, Yamato Kogyo stated that all sales 
were shipped directly to the final customer, either to trading 
companies or general contractors, and for the LOT in the U.S. market, 
stated that all sales were made to distributors. Yamato Kogyo reported 
two channels of distribution in the home market: (1) sales to trading 
companies; and (2) direct sales to general contractors. Yamato Kogyo 
reported one channel of distribution in the U.S. market: sales to 
unaffiliated distributors.
    For sales in the home market, Yamato Kogyo asserts the sales are 
``effectively'' through a single sales channel, i.e. from Yamato Kogyo 
to the customer. For sales to trading companies in the home market, 
Yamato Kogyo reported that the trading company issues the purchase 
order and makes payment, however Yamato Kogyo makes shipments directly 
to the trading company's customer (either a distributor or a general 
contractor/construction company). For sales to general contractors in 
the home market, Yamato Kogyo deals directly with the general 
contractor. For sales shipped by barge, Yamato Kogyo issues the invoice 
when the merchandise is loaded, and for sales shipped by truck, Yamato 
Kogyo issues the invoice the day the merchandise is received by the 
customer (usually the day following shipment). In some cases, Yamato 
Shoji issues the invoice to the customer. Yamato Kogyo (and in some 
cases, Yamato Shoji) makes the freight and delivery arrangements, 
provides technical information, and performs sales promotion activities 
such as sales calls. Based on our review of the selling functions 
performed in the channels of distribution in the home market, there do 
not appear to be any substantial differences in selling activity when 
the customer is a trading company versus a general contractor. 
Accordingly, we

[[Page 63368]]

preliminarily determine that there is one LOT in the home market.
    For sales to the U.S. market, Yamato Kogyo sold and shipped 
directly to an unaffiliated distributor. Yamato Kogyo issues the 
invoice when it ships the merchandise. For sales to the U.S. market, 
Yamato Kogyo makes the freight arrangements but stated that it performs 
little other selling activities or services. We preliminarily determine 
there is one LOT in the U.S. market.
    Based on our analysis of the selling functions performed for sales 
in the home market and EP sales in the U.S. market, we preliminarily 
determine that Yamato Kogyo performs significantly more selling 
functions in the home market than for the U.S. market; thus, these 
sales are made at different LOTs. However, because there is only one 
LOT in the home market, we cannot determine if there is a pattern of 
consistent price differences between the sales on which NV is based and 
the comparison market sales at the LOT of the export transaction, and 
do not have the means to calculate a LOT adjustment. Accordingly, we 
have not made a LOT adjustment.

Currency Conversion

    We made currency conversions into U.S. dollars based on the 
exchange rates in effect on the dates of the U.S. sales as certified by 
the Federal Reserve Bank, in accordance with section 773A(a) of the 
Act.

Preliminary Results of Review

    As a result of our review, we preliminarily determine that the 
following weighted-average dumping margin exists for the period 
February 11, 2000 through November 30, 2000:

------------------------------------------------------------------------
                                                              Weighted-
                                                               average
               Producer/Manufacturer/Exporter                   margin
                                                              (percent)
------------------------------------------------------------------------
Yamato Kogyo, Co. Ltd......................................        0.00
------------------------------------------------------------------------

    In accordance with 19 CFR 351.224(b), the Department will disclose 
to parties to this proceeding the calculations performed in connection 
with these preliminary results within five days of the date of 
publication of this notice.
    Pursuant to 19 CFR 351.309, interested parties may submit written 
comments on these preliminary results. Case briefs must be submitted no 
later than 30 days after the date of publication of this notice. 
Rebuttal briefs, which must be limited to issues raised in the case 
briefs, must be submitted no later than five days after the time limit 
for filing case briefs. Parties submitting arguments in this proceeding 
are requested to submit with the argument: (1) A statement of the 
issue, and (2) a brief summary of the argument. Case and rebuttal 
briefs must be served on interested parties in accordance with 19 CFR 
351.303(f). Also, within 30 days of the date of publication of this 
notice, an interested party may request a public hearing on arguments 
to be raised in the case and rebuttal briefs. See 19 CFR 351.310(c). 
Unless the Secretary specifies otherwise, the hearing, if requested, 
will be held two days after the date for submission of rebuttal briefs, 
or the first working day thereafter. The Department will issue the 
final results of this new shipper review, including the results of its 
analysis of issues raised in any case or rebuttal brief, within 120 
days of publication of these preliminary results.

Assessment

    The Department shall determine, and the U.S. Customs Service 
(``Customs'') shall assess, antidumping duties on all appropriate 
entries. In accordance with 19 CFR 351.212(b), we have calculated 
exporter/importer-specific assessment rates. We calculated importer-
specific duty assessment rates on a unit value per metric ton basis by 
summing the dumping margins on U.S. sales, and then dividing this sum 
by the total metric tons of all U.S. sales examined. If these 
preliminary results are adopted in our final results, we will instruct 
Customs not to assess antidumping duties on the merchandise subject to 
review. Upon completion of this review, the Department will issue 
appraisement instructions directly to Customs.

Cash Deposit

    The following cash deposit requirements will be effective upon 
publication of the final results of this new shipper review for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of this new shipper review, as provided by section 
751(a)(1) of the Act: (1) The cash deposit rate for the reviewed 
company will be the rate established in the final results of this new 
shipper review (except that no deposit will be required if the rate is 
zero or de minimis, i.e., less than 0.5 percent); (2) for previously 
investigated companies not listed above, the cash deposit rate will 
continue to be the company-specific rate published for the most recent 
period; (3) if the exporter is not a firm covered in this review or the 
original LTFV investigation, but the manufacturer is, the cash deposit 
rate will be the rate established for the most recent period for the 
manufacturer of the merchandise; and (4) if neither the exporter nor 
the manufacturer is a firm covered in this review or the original LTFV 
investigation, the cash deposit rate will continue to be the ``all 
others'' rate of 37.13 percent established in the LTFV investigation. 
These deposit requirements, when imposed, shall remain in effect until 
publication of the final results of the next review.

Notification to Interested Parties

    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    This new shipper review and notice are issued and published in 
accordance with sections 751(a)(2)(B) and 777(i)(1) of the Act.

    Dated: November 27, 2001.
Richard W. Moreland,
Acting Assistant Secretary for Import Administration.
[FR Doc. 01-30286 Filed 12-5-01; 8:45 am]
BILLING CODE 3510-DS-P