[Federal Register Volume 67, Number 52 (Monday, March 18, 2002)]
[Notices]
[Pages 11976-11979]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-6474]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-815 and A-580-816]


Notice of Final Results of Antidumping Duty Administrative 
Reviews: Certain Cold-Rolled and Corrosion-Resistant Carbon Steel Flat 
Products From Korea

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

ACTION: Notice of final results of antidumping duty administrative 
reviews.

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SUMMARY: On September 11, 2001, the Department of Commerce 
(``Department'') published the preliminary results of the 
administrative reviews of the antidumping duty orders on certain cold-
rolled and corrosion-resistant carbon steel flat products from Korea. 
The corrosion-resistant carbon steel flat products review covers four 
manufacturers and exporters of the subject merchandise, while the cold-
rolled carbon steel flat products review covers three. The period of 
review for cold-rolled products is August 1, 1999 through December 31, 
1999, and the period of review for corrosion-resistant products is 
August 1, 1999 through July 31, 2000.
    Based on our analysis of the comments received, we have made 
changes in the margin calculations. Therefore, the final results differ 
from the preliminary results. The final weighted-average dumping 
margins for the reviewed firms are listed below in the section entitled 
``Final Results of the Reviews.''

EFFECTIVE DATE: March 15, 2002.

FOR FURTHER INFORMATION CONTACT: Robert Bolling (POSCO), Marlene Hewitt 
(Dongbu), Sara Ellerman (SeAH) and Mesbah Motamed (Union), or James 
Doyle, Enforcement Group III, Office 9, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue, NW., Washington, DC 20230, telephone 202-482-3434 
(Bolling), 202-482-1385 (Hewitt), 202-482-6134 (Ellerman), 202-482-1382 
(Motamed) or 202-482-0159 (Doyle), fax 202-482-1388.

SUPPLEMENTARY INFORMATION:

Applicable Statute

    Unless otherwise indicated, all citations to the Tariff Act of 1930 
(``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 at 19 CFR part 351 (2001).

Background

    The Department published antidumping duty orders on certain cold-
rolled and corrosion-resistant carbon steel flat products from Korea on 
August 19, 1993. See Antidumping Duty Orders on Certain Cold-Rolled 
Carbon Steel Flat Products and Certain Corrosion-Resistant Carbon Steel 
Flat Products from Korea, 58 FR 44159 (August 19, 1993). On August 16, 
2000, the Department published a notice of ``Opportunity to Request an 
Administrative Review'' of the antidumping duty orders for the 1999-
2000 review period. See Notice of Opportunity to Request Administrative 
Review of Antidumping or Countervailing Duty Order, Finding, or 
Suspended Investigation, 65 FR 49962 (August 16, 2000). On August 31, 
2000, respondents Pohang Coated Steel Co., Ltd. (``POCOS''), and Pohang 
Steel Industries Co., Ltd. (``PSI'')--(collectively, ``the POSCO 
Group''), Dongbu Steel Co., Ltd (``Dongbu''), and Union Steel 
Manufacturing Co., Ltd. (``Union'') requested that the Department 
conduct an administrative review of the antidumping duty orders on 
cold-rolled carbon steel flat products from Korea. In a separate letter 
on August 31, 2000, POSCO also requested partial revocation of the 
antidumping duty order of cold-rolled carbon steel flat products. On 
August 31, 2000,

[[Page 11977]]

respondents Dongbu, Union, POSCO and SeAH Steel Corporation (``SeAH'') 
requested that the Department conduct an administrative review of the 
antidumping duty orders on corrosion-resistant carbon steel flat 
products. On August 31, 2000, petitioners in the original less-than-
fair-value (``LTFV'') investigations (AK Steel Corporation; Bethlehem 
Steel Corporation; Inland Steel Industries, Inc.; LTV Steel Company; 
National Steel Corporation; and U.S. Steel Group, a Unit of USX 
Corporation) requested that the Department conduct administrative 
reviews of the antidumping duty orders on cold-rolled and corrosion-
resistant carbon steel flat products from Korea: the cold-rolled 
respondents; Dongbu, POSCO, and Union; and the corrosion-resistant 
respondents; Dongbu, POSCO, SeAH, and Union. We initiated these reviews 
on September 26, 2000. See Initiation of Antidumping and Countervailing 
Duty Administrative Reviews and Requests for Revocation in Part, 65 FR 
58733 (October 2, 2000).
    The Department revoked the antidumping order on cold-rolled carbon 
steel flat products from Korea pursuant to section 751(d)(2) of the Act 
and 19 CFR 351.222(i) of the Department's regulations, effective 
January 1, 2000. See Revocation of Antidumping and Countervailing Duty 
Orders on Certain Carbon Steel Products From Canada, Germany, Korea, 
the Netherlands, and Sweden, 65 FR 78467 (December 15, 2000). The 
resulting POR for cold-rolled products is August 1, 1999 through 
December 31, 1999. The Department's revocation of the antidumping order 
for cold-rolled products renders POSCO's request for revocation moot.
    On August 31, 2001, the Department issued the preliminary results 
of these administrative reviews. See Certain Cold-Rolled and Corrosion-
Resistant Carbon Steel Flat Products From the Republic of Korea; 
Preliminary Results of Antidumping Duty Administrative Review 66 FR 
47163, (September 11, 2001). The Department has completed these 
administrative reviews in accordance with section 751 of the Act.
    On December 7, 2001 petitioners submitted case briefs for Union and 
Dongbu. Union, Dongbu, and SeAH also submitted case briefs on the same 
day. On December 14, 2001, petitioners submitted rebuttal briefs for 
Union and Dongbu, and Union and Dongbu submitted their own rebuttal 
briefs. On February 8, 2002, petitioners submitted comments for POSCO. 
POSCO submitted case briefs on the same day. On February 13, 2002, 
petitioners submitted rebuttal briefs for POSCO, and POSCO submitted 
its own rebuttal briefs.

Scope of the Reviews

    The review of ``certain cold-rolled carbon steel flat products'' 
covers cold-rolled (cold-reduced) carbon steel flat-rolled products, of 
rectangular shape, neither clad, plated nor coated with metal, whether 
or not painted, varnished or coated with plastics or other nonmetallic 
substances, in coils (whether or not in successively superimposed 
layers) and of a width of 0.5 inch or greater, or in straight lengths 
which, if of a thickness less than 4.75 millimeters, are of a width of 
0.5 inch or greater and which measures at least 10 times the thickness, 
or if of a thickness of 4.75 millimeters or more are of a width which 
exceeds 150 millimeters and measures at least twice the thickness, as 
currently classifiable in the Harmonized Tariff Schedule (``HTS'') 
under item numbers 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, 7215.50.0015, 7215.50.0060, 7215.50.0090, 7215.90.5000, 
7217.10.1000, 7217.10.2000, 7217.10.3000, 7217.10.7000, 7217.90.1000, 
7217.90.5030, 7217.90.5060, 7217.90.5090. Included in this review are 
flat-rolled products of nonrectangular cross-section where such cross-
section is achieved subsequent to the rolling process (i.e., products 
which have been ``worked after rolling'')--for example, products which 
have been beveled or rounded at the edges. Excluded from this review is 
certain shadow mask steel, i.e., aluminum-killed, cold-rolled steel 
coil that is open-coil annealed, has a carbon content of less than 
0.002 percent, is of 0.003 to 0.012 inch in thickness, 15 to 30 inches 
in width, and has an ultra flat, isotropic surface.
    The review of ``certain corrosion-resistant carbon steel flat 
products'' covers flat-rolled carbon steel products, of rectangular 
shape, either clad, plated, or coated with corrosion-resistant metals 
such as zinc, aluminum, or
zinc-, aluminum-, nickel- or iron-based alloys, whether or not 
corrugated or painted, varnished or coated with plastics or other 
nonmetallic substances in addition to the metallic coating, in coils 
(whether or not in successively superimposed layers) and of a width of 
0.5 inch or greater, or in straight lengths which, if of a thickness 
less than 4.75 millimeters, are of a width of 0.5 inch or greater and 
which measures at least 10 times the thickness or if of a thickness of 
4.75 millimeters or more are of a width which exceeds 150 millimeters 
and measures at least twice the thickness, as currently classifiable in 
the HTS under item numbers 7210.30.0030, 7210.30.0060, 7210.41.0000, 
7210.49.0030, 7210.49.0090, 7210.61.0000, 7210.69.0000, 7210.70.6030, 
7210.70.6060, 7210.70.6090, 7210.90.1000, 7210.90.6000, 7210.90.9000, 
7212.20.0000, 7212.30.1030, 7212.30.1090, 7212.30.3000, 7212.30.5000, 
7212.40.1000, 7212.40.5000, 7212.50.0000, 7212.60.0000, 7215.90.1000, 
7215.90.3000, 7215.90.5000, 7217.20.1500, 7217.30.1530, 7217.30.1560, 
7217.90.1000, 7217.90.5030, 7217.90.5060, 7217.90.5090. Included in 
this review are flat-rolled products of non-rectangular cross-section 
where such cross-section is achieved subsequent to the rolling process 
(i.e., products which have been ``worked after rolling'')--for example, 
products which have been beveled or rounded at the edges. Excluded from 
this review are flat-rolled steel products either plated or coated with 
tin, lead, chromium, chromium oxides, both tin and lead (``terne 
plate''), or both chromium and chromium oxides (``tin-free steel''), 
whether or not painted, varnished or coated with plastics or other 
nonmetallic substances in addition to the metallic coating. Also 
excluded from this review are clad products in straight lengths of 
0.1875 inch or more in composite thickness and of a width which exceeds 
150 millimeters and measures at least twice the thickness. Also 
excluded from this review are certain clad stainless flat-rolled 
products, which are three-layered corrosion-resistant carbon steel 
flat-rolled products less than 4.75 millimeters in composite thickness 
that consist of a carbon steel flat-rolled product clad on both sides 
with stainless steel in a 20%-60%-20% ratio.
    These HTS item numbers are provided for convenience and U.S.

[[Page 11978]]

Customs purposes. The written descriptions remain dispositive.

Verification

    From January 23 through January 25, 2002, the Department conducted 
a verification at the offices of POSCO in Pohang, Korea. For a 
description of the Department's findings, see Memorandum from Catherine 
Bertrand to James Doyle, dated February 5, 2002.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
these administrative reviews are addressed in the ``Issues and Decision 
Memorandum'' (``Decision Memo'') from Joseph A. Spetrini, Deputy 
Assistant Secretary for Import Administration to Faryar Shirzad, 
Assistant Secretary for Import Administration, dated March 11, 2002, 
which is hereby adopted by this notice. A list of the issues which 
parties have raised and to which we have responded, all of which are in 
the Decision Memo, is attached to this notice as an Appendix. Parties 
can find a complete discussion of all issues raised in these reviews 
and the corresponding recommendations in this public memorandum which 
is on file at the U.S. Department of Commerce, in the Central Records 
Unit, in room B-099. In addition, a complete version of the Decision 
Memo, accessible in B-099 and on the Web at http://ia.ita.doc.gov. The 
paper copy and electronic version of the Decision Memorandum are 
identical in content.

Sales Below Cost in the Home Market

    As discussed in more detail in the Preliminary Results, the 
Department disregarded home market below-cost sales that failed the 
cost test for POSCO, Dongbu, and Union in these final results of 
review.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made certain 
changes in the margin calculations. We have also corrected certain 
programming and clerical errors in our preliminary results, where 
applicable. Any alleged programming or clerical errors with which we do 
not agree are discussed in the relevant sections of the Decision Memo, 
accessible in B-099 and on the Web at http://ia.ita.doc.gov. A summary 
of these adjustments is discussed below:
    1. We adjusted respondents' indirect selling expense factors with 
respect to the deduction of imputed credit expense. See Comment 1 of 
the Decision Memo.
    2. We additionally adjusted POSCO's indirect selling expense factor 
by disallowing its claimed long-term interest income offset. See 
Comment 2 of the Decision Memorandum.
    3. We are excluding overruns from the calculation of Union's normal 
value. See Comment 7 of the Decision Memorandum.

Final Results of the Reviews

    We determine that the following percentage weighted-average margins 
exist for the reviewed companies during the period August 1, 1999, 
through December 31, 1999 (for cold-rolled products) or August 1, 1999, 
through July 31, 2000 (for corrosion resistant products):

             Certain Cold-Rolled Carbon Steel Flat Products
------------------------------------------------------------------------
                                                              Weighted-
               Producer/Manufacturer/Exporter                  average
                                                                margin
------------------------------------------------------------------------
Dongbu.....................................................         4.09
The POSCO Group............................................         3.06
Union......................................................         1.05
------------------------------------------------------------------------


         Certain Corrosion-Resistant Carbon Steel Flat Products
------------------------------------------------------------------------
                                                              Weighted-
               Producer/Manufacturer/Exporter                  average
                                                                margin
------------------------------------------------------------------------
Dongbu.....................................................         0.26
SeAH.......................................................            0
The POSCO Group............................................         0.64
Union......................................................         1.31
------------------------------------------------------------------------

    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. With respect to both 
export price and constructed export price sales, we divided the total 
dumping margins for the reviewed sales by the total entered value of 
those reviewed sales for each importer. We will direct Customs to 
assess the resulting percentage margins against the entered Customs 
values for the subject merchandise on each of that importer's entries 
under the relevant order during the review period.

Cash Deposit Requirements

    The following deposit requirements will be effective upon 
publication of this notice of final results of administrative reviews 
for all shipments of cold-rolled and corrosion-resistant carbon steel 
flat products from Korea 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) The cash deposit rates for the reviewed 
companies will be the rates shown above except that, for firms whose 
weighted-average margins are less than 0.5 percent and therefore de 
minimis, the Department shall require no deposit of estimated 
antidumping duties; (2) for previously reviewed or 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, a prior review, or 
the original less than fair value (``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) 
the cash deposit rate for all other manufacturers or exporters will 
continue to be 17.70 percent (for certain corrosion-resistant carbon 
steel flat products). This rate is the ``all others'' rates from the 
LTFV investigation. See Antidumping Duty Orders on Certain Cold-Rolled 
Carbon Steel Flat Products and Certain Corrosion-Resistant Carbon Steel 
Flat Products from Korea, 58 FR 44159 (August 19, 1993). As the 
Department revoked the anti-dumping order on cold-rolled carbon steel 
flat products from Korea pursuant to section 751(d)(2) of the Act, 
effective January 1, 2000, there is no longer suspension of liquidation 
or cash deposit requirements for entries of that merchandise.
    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) 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 doubled antidumping duties.
    This notice also serves as the only reminder to parties subject to 
administrative protective orders (``APO'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305. Timely written 
notification of the return/destruction of APO materials or conversion 
to judicial protective order is hereby requested. Failure to comply 
with the regulations and terms of an APO is a violation which is 
subject to sanction.
    We are issuing and publishing this determination and notice in 
accordance

[[Page 11979]]

with sections 751(a)(1) and 777(i) of the Act.

    Dated: March 11, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix

Issues in Decision Memorandum

Comments and Responses

General Comments

    1. Calculation of Indirect Selling Expenses.

Company-Specific Comments

Pohang Iron and Steel Co., Ltd. (``POSCO''), Pohang Coated Steel 
Co., Ltd. (``POCOS''), and Pohang Steel Industries Co., Ltd. 
(``PSI'') (collectively, ``POSCO Group'')

    2. Long-term Interest Income Offset
    3. Calculation of Total Sales in the Indirect Selling Expense 
Ratio Denominator
    4. Home Market Credit
    5. Overruns

Dongbu Steel Co., Ltd. (``Dongbu'')

    6. Allocation of U.S. Indirect Selling Expenses

Union Steel Manufacturing Co., Ltd. (``Union'')

    7. Inclusion of Overruns in the Calculation of Normal Value.

[FR Doc. 02-6474 Filed 3-15-02; 8:45 am]
BILLING CODE 3510-DS-P