[Federal Register Volume 67, Number 63 (Tuesday, April 2, 2002)]
[Notices]
[Pages 15531-15533]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-7952]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-533-823]


Silicomanganese from India: Notice of Final Determination of 
Sales at Less Than Fair Value and Final Negative Critical Circumstances 
Determination

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

EFFECTIVE DATE: April 2, 2002.

FOR FURTHER INFORMATION CONTACT: Javier Barrientos for Nava Bharat 
Ferro Alloys Ltd. at (202) 482-2243 and Mark Hoadley or Brett Royce for 
Universal Ferro & Allied Chemicals, Ltd. at (202) 482-0666 or (202) 
482-4106, respectively; Office of Antidumping and Countervailing Duty 
Enforcement VII, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, N.W., Washington, DC 20230.

Final Determination

    We determine that silicomanganese from India is being sold, or is 
likely to be sold, in the United States at less than fair value (LTFV), 
as provided in section 735 of the Tariff Act of 1930, as amended. On 
November 9, 2001, the Department published its preliminary 
determination of sales at less than fair value of silicomanganese from 
India. See Notice of Preliminary Determination of Sales at Less Than 
Fair Value: Silicomanganese from India, 66 FR 56644 (November 9, 2001). 
Based on the results of verification and our analysis of the comments 
received, we have made changes to the margin calculations. The final 
weighted-average dumping margins of sales at LTFV are shown in the 
``Continuation of Suspension of Liquidation'' section of this notice.

SUPPLEMENTARY INFORMATION:

Applicable Statue

    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 of Commerce (Department) regulations 
are to the regulations at 19 CFR part 351 (April 2001).

Background

    This investigation covers two producers/exporters: Nava Bharat 
Ferro Alloys, Ltd.(Nava Bharat) and Universal Ferro and Allied 
Chemicals, Ltd. (Universal). We published in the Federal Register the 
preliminary determination of critical circumstances in this 
investigation on October 19, 2001. See Notice of Preliminary 
Determination of Critical Circumstances: Silicomanganese from India, 66 
FR 53207 (October 19, 2001) (Preliminary Determination of Critical 
Circumstances). We subsequently published in the Federal Register the 
preliminary determination in this investigation on November 9, 2001. 
See Notice of Preliminary Determination of Sales at Less Than Fair 
Value: Silicomanganese from India, 66 FR 56644 (November 9, 2001) 
(Preliminary Determination).
    On November 20, 2001, Universal requested that the Department 
postpone its final determination until not later than 135 days after 
the date of the publication of the preliminary determination in the 
Federal Register and requested an extension of the provisional 
measures. On December 7, 2001, we extended the final determination 
until no later than 135 days after the publication of the preliminary 
determination in the Federal Register. See Notice of Postponement of 
Final Antidumping Duty Determination: Silicomanganese from Kazakhstan 
and India, 66 FR 63522 (December 7, 2001).
    The Department verified sections A-D of Universal's questionnaire 
responses, from January 7, 2002 through January 16, 2002, at 
Universal's headquarters in Mumbai, India and at its production 
facility in Tumsar, India. See Sales and Cost Verification Report for 
Universal Ferro & Allied Chemicals Ltd., in the Antidumping Duty 
Investigation of Silicomanganese from India, from Abdelali Elouaradia 
and Brett Royce, Case Analysts, through Sally C. Gannon, Program 
Manager, to The File (February 14, 2002). The Department also verified 
sections A-D of the questionnaire responses of Nava Bharat in 
Hyderabad, India and at its production facility in Paloncha, India from 
January 11, 2002 through January 18, 2002. See Verification of Sales in 
the Antidumping Investigation of Silicomanganese from India: Nava 
Bharat Ferro Alloys, Ltd. (Nava Bharat), from Elfi Blum and Javier 
Barrientos, Case Analysts, through Sally Gannon, Program Manager, for 
The File (February 20, 2002); see also Verification of Cost in the 
Antidumping Investigation of Silicomanganese from India: Nava Bharat 
Ferro Alloys, Ltd. (Nava Bharat), from Elfi Blum and Javier Barrientos, 
Case Analysts, through Sally Gannon, Program Manager, for The File 
(February 22, 2002). Public versions of these, and all other Department 
memoranda referred to herein, are on file in the Central Records Unit, 
Room B-099, of the main Commerce Building.
    On December 11, 2001, the petitioners, Eramet Marietta Inc. 
(``Eramet''), and the Paper, Allied-Industrial, Chemical and Energy 
Workers International Union, Local 5-0639, requested a public hearing. 
On February 25, 2002, we received Nava Bharat's case brief. On February 
26, 2002, pursuant to an extension requested by petitioners and granted 
by the Department, we received case briefs from petitioners and 
Universal. We received rebuttal briefs from petitioners and Universal 
on March 4, 2002 and, pursuant to an extension requested by Nava Bharat 
and granted by the Department, from Nava Bharat on March 6, 2002. We 
held a public hearing in this investigation on March 7, 2002.

Period of Investigation

    The period of investigation (POI) is April 1, 2000 through March 
31, 2001.

Critical Circumstances

    In the Department's Preliminary Determination of Critical 
Circumstances, we determined that critical circumstances exist for 
imports of silicomanganese from India produced by Universal and by 
``All Other'' producers, except for Nava Bharat. For Nava Bharat, we 
preliminarily found that critical circumstances do not exist. For this 
final determination, we have found that critical circumstances do not 
exist for imports of silicomanganese from India produced by Universal, 
Nava Bharat or any other producer because one of the required criteria 
for finding critical circumstances has not been met. For a discussion 
of interested party comments, and the Department's position, on this 
issue, see the Decision Memorandum.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the Issues and Decision Memorandum 
in the Final Affirmative Antidumping Duty Determination on 
Silicomanganese from India, from Joseph A. Spetrini, Deputy

[[Page 15532]]

Assistant Secretary for AD/CVD Enforcement III, to Faryar Shirzad, 
Assistant Secretary for Import Administration, dated March 25, 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 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 Room B-099 and accessible 
directly on the World Wide Web at www.ia.ita.doc.gov. The paper copy 
and electronic version of the Decision Memorandum are identical in 
content.

Scope of Investigation

    For purposes of this investigation, the products covered are all 
forms, sizes and compositions of silicomanganese, except low-carbon 
silicomanganese, including silicomanganese briquettes, fines and slag. 
Silicomanganese is a ferro alloy composed principally of manganese, 
silicon and iron, and normally contains much smaller proportions of 
minor elements, such as carbon, phosphorous and sulfur. Silicomanganese 
is sometimes referred to as ferro silicon manganese. Silicomanganese is 
used primarily in steel production as a source of both silicon and 
manganese. Silicomanganese generally contains by weight not less than 4 
percent iron, more than 30 percent manganese, more than 8 percent 
silicon and not more than 3 percent phosphorous. Silicomanganese is 
properly classifiable under subheading 7202.30.0000 of the Harmonized 
Tariff Schedule of the United States (HTSUS). Some silicomanganese may 
also be classified under HTSUS subheading 7202.99.5040. This scope 
covers all silicomanganese, regardless of its tariff classification. 
Although the HTSUS subheadings are provided for convenience and U.S. 
Customs purposes, our written description of the scope remains 
dispositive.
    The low-carbon silicomanganese excluded from this scope is a ferro 
alloy with the following chemical specifications: minimum 55 percent 
manganese, minimum 27 percent silicon, minimum 4 percent iron, maximum 
0.10 percent phosphorus, maximum 0.10 percent carbon and maximum 0.05 
percent sulfur. Low-carbon silicomanganese is used in the manufacture 
of stainless steel and special carbon steel grades, such as motor 
lamination grade steel, requiring a very low carbon content. It is 
sometimes referred to as ferro manganese-silicon. Low-carbon 
silicomanganese is classifiable under HTSUS subheading 7202.99.5040.

Fair Value Comparisons

    To determine whether sales of silicomanganese from India were made 
in the United States at less than fair value, we compared export price 
(EP) to normal value (NV), as described in the ``Export Price and 
``Normal Value'' sections of the Preliminary Determination. In 
accordance with section 777(A)(d)(1)(A)(i) of the Tariff Act, we 
calculated weighted-average EPs for comparison to weighted-average NVs.

Changes Since the Preliminary Determination

    Based on our analysis of comments received and findings at 
verification, we have made certain changes in the margin calculations 
for the final determination. See Decision Memorandum, Final 
Determination in the Antidumping Duty Investigation on Silicomanganese 
from India: Analysis of Universal Ferro & Allied Chemicals Ltd., from 
Mark Hoadley and Brett Royce, through Sally Gannon, for The File (March 
25, 2002) (Universal Analysis Memorandum), and Final Determination in 
the Antidumping Duty Investigation on Silicomanganese from India: 
Analysis of Nava Bharat Ferro Alloys Ltd., from Javier Barrientos, 
through Sally Gannon, for The File (March 25, 2002) (Nava Bharat 
Analysis Memorandum). In addition to the Decision Memorandum, public 
versions of the Universal Analysis Memorandum and Nava Bharat Analysis 
Memorandum are on file in the Central Records Unit, Room B-099, of the 
main Commerce Building. Specifically, we made the following changes.
Regarding Universal:
1. We used revised sales databases provided by Universal reflecting 
minor changes in sales dates, invoice dates, credit expenses, gross 
unit prices, and movement expenses based on verification.
2. We added bank charges discovered at verification to U.S. credit 
expenses.
3. We changed indirect selling expenses in both the U.S. and home 
markets to reflect information discovered at verification.
4. We added an amount to total raw materials cost for the value of slag 
used in production.
5. We removed the quantity of recycled fines from the production 
quantity used in the per unit cost calculation.
6. We reduced electricity costs by an amount found to have been 
forgiven by the electricity authority.
7. We removed refunded taxes from the cost of raw materials.
8. We offset interest expense by revenue earned on bank accounts 
(short-term interest revenue).
Regarding Nava Bharat:
1. We changed shipment date to reflect factory shipment instead of port 
shipment.
2. We recalculated U.S. imputed credit and inventory carrying costs 
using gross unit price.
3. We recalculated credit expense for one home market sale.
4. We removed the quantity of generated fines from the production 
quantity used in the per unit cost calculation.
5. We also changed the cost of electricity by using: a) using a 
weighted-average of the market prices of other electricity suppliers as 
representative of the market price of the power supplied by Nava 
Bharat's affiliated electricity supplier and b) the cost of production 
of Nava Bharat's self-produced power.
6. We subtracted short-term interest income from interest expense to 
arrive at the interest expense ratio.
7. We added Nava Bharat's reported interest revenue to home market 
gross unit price for the final determination.

Use of Partial Facts Available

Nava Bharat

    In accordance with section 776 of the Act, we have determined that 
the use of partial facts available is appropriate for certain portions 
of our analysis for Nava Bharat. We used partial facts available where, 
despite the Department's repeated requests, essential company-specific 
information needed to make certain calculations for the final 
determination was unavailable. For a discussion of our determination 
with respect to these matters. See Decision Memorandum.

Universal

    In accordance with section 776 of the Act, we have determined that 
the use of partial facts available is appropriate for certain portions 
of our analysis for Universal. We used partial facts available where, 
despite the Department's repeated requests, essential company-specific 
information needed to make certain calculations for the final 
determination was unavailable. For a discussion of our determination 
with respect to these matters. See Decision Memorandum.

[[Page 15533]]

Continuation of Suspension of Liquidation

    Pursuant to section 735(c)(1)(B) of the Act, we will instruct the 
U.S. Customs Service (Customs) to continue to suspend liquidation of 
all entries of silicomanganese from India that are entered, or 
withdrawn from warehouse, for consumption on or after November 9, 2001 
(the date of publication of the Preliminary Determination in the 
Federal Register). For Universal and ``all others,'' we will instruct 
Customs to terminate the retroactive suspension of liquidation, between 
August 11, 2001 (90 days prior to the date of publication of the 
Preliminary Determination in the Federal Register) and November 8, 
2001, which was instituted upon publication of the Preliminary 
Determination in the Federal Register due to the preliminary 
affirmative critical circumstances finding. Customs shall also release 
any bond or other security, and refund any cash deposit required, under 
section 733(d)(1)(B) of the Act with respect to entries of the 
merchandise the liquidation of which was suspended retroactively under 
section 733(e)(2). Customs shall continue to require a cash deposit or 
the posting of a bond equal to the estimated amount by which the normal 
value exceeds the U.S. price as shown below. The suspension of 
liquidation instructions will remain in effect until further notice. We 
determine that the following weighted-average percentage dumping 
margins exist for the period April 1, 2000 through March 31, 2001:

------------------------------------------------------------------------
                                                 Weighted-Average Margin
             Exporter/manufacturer                      Percentage
------------------------------------------------------------------------
Nava Bharat Ferro Alloys, Ltd..................                   15.32%
Universal Ferro and Allied Chemicals, Ltd......                   20.42%
All Others.....................................                   17.69%
------------------------------------------------------------------------

ITC Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (ITC) of our determination. The ITC will 
determine, within 45 days, whether these imports are materially 
injuring, or threatening material injury to, an industry in the United 
States. If the ITC determines that material injury or threat of 
material injury does not exist, the proceeding will be terminated and 
all securities posted will be refunded or canceled. If the ITC 
determines that such injury does exist, the Department will issue an 
antidumping duty order directing Customs officials to assess 
antidumping duties on all imports on the subject merchandise entered, 
or withdrawn from warehouse, for consumption on or after the effective 
date of the suspension of liquidation.
    This notice also serves as a 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. Timely notification of return or 
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.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: March 25, 2002
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix I --Issues in Decision Memorandum

Regarding Universal Ferro & Allied Chemicals Ltd. (Universal):
1. Critical Circumstances
2. Clerical Errors in the Verification Report
3. Use of Revised Home Market Sales
4. Use of Revised Indirect Selling Expenses Found at Verification
5. Cost of Slag
6. Cost of Recycled Silicomanganese Fines
7. Inclusion of Losses on Inventory in Raw Materials Costs
8. Slag Handling Expenses
9. Disputed Electricity Charges
10. Refundable Tax Payments
11. Excise Duties on Closing Stock
12. Depreciation on Closed Furnaces and Furnaces Not Used to Produce 
Subject Merchandise
13. Use of Revalued Depreciation Costs
14. Calculation of General and Administrative Expenses
15. Offsetting Interest Expense by Interest Revenue
16. Severance Payments to Former Employees
Regarding Nava Bharat Ferro Alloys Ltd. (Nava Bharat):
17. Duty Drawback
18. Imputed Credit Expense (Home Market)
19. Imputed Credit Expense (U.S. Sales)
20. Tolling Raw Materials
21. Cost of Recycled Silicomanganese Fines
22. Cost of Power
23. Fixed Plant Overhead
24. Calculation of General & Administrative Expenses
25. Calculation of Net Interest Expense
26. Interest Revenue
[FR Doc. 02-7952 Filed 4-1-02; 8:45 am]
BILLING CODE 3510-DS-S