[Federal Register Volume 67, Number 12 (Thursday, January 17, 2002)]
[Notices]
[Pages 2408-2410]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-1268]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-846]


Hot-Rolled Flat-Rolled Carbon-Quality Steel Products from Japan: 
Final Results of Antidumping Duty Administrative Review

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

SUMMARY: On July 10, 2001, the Department of Commerce (the Department) 
published the preliminary results of its administrative review of the 
antidumping duty order on Hot-Rolled Flat-Rolled Carbon-Quality Steel 
Products from Japan. See Hot-Rolled Flat-Rolled Carbon-Quality Steel 
Products from Japan: Preliminary Results of Antidumping Administrative 
Review, 66 FR 35928 (Preliminary Results). The period of review (POR) 
is February 19, 1999 through May 31, 2000. We gave interested parties 
an opportunity to comment on the preliminary results. Based on our 
analysis of the comments received, we have made changes in the margin 
calculations. We have determined that Kawasaki did not make sales to 
the U.S. below normal value during the POR. See Final Results of the 
Review section, below.

EFFECTIVE DATE: January 17, 2002.

FOR FURTHER INFORMATION CONTACT: Doug Campau or Maureen Flannery, AD/
CVD Enforcement, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, N.W., Washington, D.C. 20230; telephone: (202) 
482-1395 or (202) 482-3020, respectively.

Applicable Statute

    Unless otherwise indicated, all citations to the statute are 
references to the provisions effective January 1, 1995, the effective 
date of the amendments made to the Tariff Act of 1930 (the Act) by the 
Uruguay Round Agreements Act. In addition, unless otherwise indicated, 
all citations to the Department's regulations are to the provisions 
codified at 19 CFR part 351 (2000).

Case History

    On June 29, 1999, the Department published in the Federal Register 
an antidumping duty order on certain hot-rolled, flat-rolled, carbon-
quality steel products (hot-rolled steel) from Japan. See Antidumping 
Duty Order; Certain Hot-Rolled Flat-Rolled Carbon-Quality Steel 
Products From Japan, 64 FR 34778. On June 30, 2000, the Department 
received a timely request from Kawasaki Steel Corporation (Kawasaki) to 
conduct an administrative review pursuant to section 351.213(b)(2) of 
the Department's regulations. On July 31, 2000, the Department 
published its notice of initiation of this antidumping duty 
administrative review. See Initiation of Antidumping and Countervailing 
Duty Administrative Reviews and Requests for Revocation in Part, 64 FR 
46687. As noted above, on July 10, 2001, the Department published the 
preliminary results of this antidumping administrative review. See 
Preliminary Results. The Department determined that it was 
impracticable to complete this antidumping administrative review within 
the standard time frame, and extended the due date for the final 
results from November 7, 2001 to January 7, 2002. See Hot-Rolled Flat-
Rolled Carbon-Quality Steel Products from Japan: Extension of Time 
Limit for Final Results of Antidumping Administrative Review, 66 FR 
57423 (November 15, 2001).

Scope of the Antidumping Duty Order

    The products covered by this antidumping duty order are certain 
hot-rolled flat-rolled carbon-quality steel products of a rectangular 
shape, of a width of 0.5 inch or greater, neither clad, plated, nor 
coated with metal and whether or not painted, varnished, or coated with 
plastics or other non-metallic substances, in coils (whether or not in 
successively superimposed layers) regardless of thickness, and in 
straight lengths, of a thickness less than 4.75 mm and of a width 
measuring at least 10 times the thickness. Universal mill plate (i.e., 
flat-rolled products rolled on four faces or in a closed box pass, of a 
width exceeding 150 mm but not exceeding 1250 mm and of a thickness of 
not less than 4 mm, not in coils and without patterns in relief) of a 
thickness not less than 4.0 mm is not included within the scope of this 
order.
    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 the substrate for 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. The substrate for 
motor lamination steels contains micro-alloying levels of elements such 
as silicon and aluminum.
    Steel products to be included in the scope of this investigation, 
regardless of Harmonized Tariff Schedule of the United States (HTSUS) 
definitions, 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
1.50 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
0.012 percent of boron, or
0.10 percent of molybdenum, or
0.10 percent of niobium, or
0.41 percent of titanium, or
0.15 percent of vanadium, or
0.15 percent of zirconium.

    All products that meet the physical and chemical description 
provided above are within the scope of this order unless otherwise 
excluded. The following products, by way of example, are outside and/or 
specifically excluded from the scope of this order:
     Alloy hot-rolled steel products in which at least one of 
the chemical elements exceeds those listed above (including e.g., ASTM 
specifications A543, A387, A514, A517, and A506).
     SAE/AISI grades of series 2300 and higher.
     Ball bearing steels, as defined in the HTSUS.
     Tool steels, as defined in the HTSUS.
     Silico-manganese (as defined in the HTSUS) or silicon 
electrical steel with a silicon level exceeding 1.50 percent.
     ASTM specifications A710 and A736.
     USS abrasion-resistant steels (USS AR 400, USS AR 500).
     Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

[[Page 2409]]



--------------------------------------------------------------------------------------------------------------------------------------------------------
                              C                                     Mn           P            S            Si           Cr           Cu           Ni
--------------------------------------------------------------------------------------------------------------------------------------------------------
0.10-0.14%...................................................    0.90% Max   0.025% Max   0.005% Max   0.30-0.50%   0.50-0.70%   0.20-0.40%    0.20% Max
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Width = 44.80 inches maximum; Thickness = 0.063-0.198 inches; Yield 
Strength = 50,000 ksi minimum; Tensile Strength = 70,000-88,000 psi.
     Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                        C                              Mn           P            S            Si           Cr           Cu           Ni           Mo
--------------------------------------------------------------------------------------------------------------------------------------------------------
0.10-0.16%......................................   0.70-0.90%   0.025% Max   0.006% Max   0.30-0.50%   0.50-0.70%    0.25% Max    0.20% Max    0.21% Max
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Width = 44.80 inches maximum; Thickness = 0.350 inches maximum; 
Yield Strength = 80,000 ksi minimum; Tensile Strength = 105,000 psi 
Aim.
     Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                 C                        Mn           P            S            Si           Cr           Cu           Ni        V (wt.)         Cb
--------------------------------------------------------------------------------------------------------------------------------------------------------
0.10-0.14%.........................   1.30-1.80%   0.025% Max   0.005% Max   0.30-0.50%   0.50-0.70%   0.20-0.40%    0.20% Max     0.10 Max    0.08% Max
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Width = 44.80 inches maximum; Thickness = 0.350 inches maximum; 
Yield Strength = 80,000 ksi minimum; Tensile Strength = 105,000 psi 
Aim.
     Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                     C                           Mn         P          S          Si         Cr         Cu         Ni         Nb        Ca         Al
--------------------------------------------------------------------------------------------------------------------------------------------------------
0.15% Max..................................  1.40% Max     0.025%     0.010%  0.50% Max  1.00% Max  0.50% Max  0.20% Max     0.005%   Treated  0.01-0.07
                                                              Max        Max                                                    Min                    %
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Width = 39.37 inches; Thickness = 0.181 inches maximum; Yield 
Strength = 70,000 psi minimum for thicknesses  0.148 inches 
and 65,000 psi minimum for thicknesses >0.148 inches; Tensile Strength 
= 80,000 psi minimum.
     Hot-rolled dual phase steel, phase-hardened, primarily 
with a ferritic-martensitic microstructure, contains 0.9 percent up to 
and including 1.5 percent silicon by weight, further characterized by 
either (i) tensile strength between 540 N/mm\2\ and 640 N/mm\2\ and an 
elongation percentage  26 percent for thicknesses of 2 mm 
and above, or (ii) a tensile strength between 590 N/mm\2\ and 690 N/
mm\2\ and an elongation percentage  25 percent for 
thicknesses of 2mm and above.
     Hot-rolled bearing quality steel, SAE grade 1050, in 
coils, with an inclusion rating of 1.0 maximum per ASTM E 45, Method A, 
with excellent surface quality and chemistry restrictions as follows: 
0.012 percent maximum phosphorus, 0.015 percent maximum sulfur, and 
0.20 percent maximum residuals including 0.15 percent maximum chromium.
     Grade ASTM A570-50 hot-rolled steel sheet in coils or cut 
lengths, width of 74 inches (nominal, within ASTM tolerances), 
thickness of 11 gauge (0.119 inch nominal), mill edge and skin passed, 
with a minimum copper content of 0.20%.
    The merchandise subject to this order is classified in the HTSUS at 
subheadings: 7208.10.15.00, 7208.10.30.00, 7208.10.60.00, 
7208.25.30.00, 7208.25.60.00, 7208.26.00.30, 7208.26.00.60, 
7208.27.00.30, 7208.27.00.60, 7208.36.00.30, 7208.36.00.60, 
7208.37.00.30, 7208.37.00.60, 7208.38.00.15, 7208.38.00.30, 
7208.38.00.90, 7208.39.00.15, 7208.39.00.30, 7208.39.00.90, 
7208.40.60.30, 7208.40.60.60, 7208.53.00.00, 7208.54.00.00, 
7208.90.00.00, 7210.70.30.00, 7210.90.90.00, 7211.14.00.30, 
7211.14.00.90, 7211.19.15.00, 7211.19.20.00, 7211.19.30.00, 
7211.19.45.00, 7211.19.60.00, 7211.19.75.30, 7211.19.75.60, 
7211.19.75.90, 7212.40.10.00, 7212.40.50.00, and 7212.50.00.00. Certain 
hot-rolled flat-rolled carbon-quality steel covered by this order, 
including: vacuum degassed, fully stabilized; high strength low alloy; 
and the substrate for motor lamination steel may also enter under the 
following tariff numbers: 7225.11.00.00, 7225.19.00.00, 7225.30.30.50, 
7225.30.70.00, 7225.40.70.00, 7225.99.00.90, 7226.11.10.00, 
7226.11.90.30, 7226.11.90.60, 7226.19.10.00, 7226.19.90.00, 
7226.91.50.00, 7226.91.70.00, 7226.91.80.00, and 7226.99.00.00. 
Although the HTSUS subheadings are provided for convenience and Customs 
purposes, the written description of the merchandise is dispositive.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this proceeding are addressed in the Issues and Decision Memorandum 
from Joseph A. Spetrini, Deputy Assistant Secretary, Import 
Administration, Group III, to Faryar Shirzad, Assistant Secretary for 
Import Administration, dated January 7, 2002 (Decision Memorandum), 
which is hereby adopted by this notice. A list of the issues which 
parties have raised and to which we have responded, all of which are 
addressed in the Decision Memorandum, is attached to this notice as an 
Appendix. Parties can find a complete discussion of all issues raised 
in this review and the corresponding recommendations in this public 
memorandum, which is on file in B-099 in the main Department of 
Commerce Building. In addition, a complete version of the Decision 
Memorandum can be accessed directly on the World Wide Web at 
www.ia.ita.doc.gov/frn.

[[Page 2410]]

The paper copy and electronic version of the Decision Memorandum are 
identical in content.

Changes Since the Preliminary Results

    Based on our analysis of the comments received, we have changed our 
approach to the margin calculation for Kawasaki. Below is a list of the 
changes for the final results. See the Decision Memorandum for further 
details.
     The Department treated home market sales made through 
Channel 1 as having been made at one home market level of trade, and 
treated home market sales made through Channels 2 and 3 as having been 
made at a second, more advanced home market level of trade. All U.S. 
sales were matched at the same LOT, i.e., to home market Channel 1 
sales. (See Comment 1 in the Decision Memorandum.)
     The Department matched Home Market sales to U.S. sales 
using CONNUMH rather than CONNUM2H. (See Comment 4 in the Decision 
Memorandum.)
     The Department included lease income and associated lease 
expenses in the G&A rate calculation. (See Comment 9 in the Decision 
Memorandum.)
     The Department included only the current portion of the 
gains and losses from cancellation of interest rate swap agreements for 
the final results. (See Comment 10 in the Decision Memorandum.)
     The Department included the profit on sale of scrap in the 
G&A rate calculation. (See Comment 11 in the Decision Memorandum.)

Currency Conversion

    We made currency conversions 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.

Final Results of the Review

    We determine that the following percentage weighted-average margin 
exists for Kawasaki for the period February 19, 1999 through May 31, 
2000:

------------------------------------------------------------------------
             Manufacturer/exporter              Time period     Margin
------------------------------------------------------------------------
Kawasaki Steel Corporation....................  02/19/1999-       0.00 %
                                                 05/31/2000
------------------------------------------------------------------------

    Because the weighted-average dumping margin is zero, we will 
instruct the U.S. Customs Service to liquidate entries made during this 
review period without regard to antidumping duties for the subject 
merchandise that Kawasaki exported.
    In addition, the following deposit requirements will be effective 
upon publication of this notice for all shipments of hot-rolled steel 
from Japan, entered or withdrawn from warehouse, for consumption on or 
after the date of publication, as provided by section 751(a)(1) of the 
Act: (1) For Kawasaki, the cash deposit rate will be the rate listed 
above; (2) for merchandise exported by manufacturers or exporters not 
covered in this review but covered in a previous segment of this 
proceeding, the cash deposit rate will continue to be the company-
specific rate published in the most recent final determination in which 
that manufacturer or exporter was covered; (3) if the exporter is not a 
firm covered in this review or in any previous segment of this 
proceeding, but the manufacturer is, the cash deposit rate will be that 
established for the most recent period for the manufacturer of the 
subject merchandise; and (4) if neither the exporter nor the 
manufacturer is a firm covered in this review or in any previous 
segment of this proceeding, the cash deposit rate will be 29.30 
percent, the all others rate established in the less-than-fair-value 
investigation. These deposit requirements shall remain in effect until 
publication of the final results of the next administrative review.
    This notice also serves as a final 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 in the subsequent 
assessment of double antidumping duties.
    This notice also serves as the only reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely notification of 
return/destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and the terms of an APO is a sanctionable violation.
    We are issuing and publishing this determination in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.213.

    Dated: January 7, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix--Issues in Decision Memorandum

1. Level of Trade in the Home Market
2. Level of Trade Adjustment
3. Billing Adjustments
4. Matching Home Market Sales to U.S. Sales Using CONNUMH Rather 
than CONNUM2H
5. Zeroing Negative Margins
6. Application of the Department's Arm's Length Test
7. Exclusion of Inter-company Profit and Loss from Production 
Variances
8. Adjustment of Electricity Cost for Affiliated Party Transactions
9. Exclusion of Lease Income and Expenses from G&A Rate Calculation
10. Exclusion of Gain on Cancellation of Interest Rate Swaps from 
Net Financing Expense
11. Inclusion of Gain on Sale of Steel Scrap in the G&A Expense Rate 
Calculation
12. Allowing Kawasaki to Report Sales by Kawasho Instead of 
Downstream Sales

[FR Doc. 02-1268 Filed 1-16-02; 8:45 am]
BILLING CODE 3510-DS-P