[Federal Register Volume 67, Number 63 (Tuesday, April 2, 2002)]
[Notices]
[Pages 15533-15535]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-7953]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-307-820]


 Notice of Final Determination of Sales at Less Than Fair Value; 
Silicomanganese from Venezuela.

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

DATES: April 2, 2002.

FOR FURTHER INFORMATION CONTACT: FOR FURTHER INFORMATION CONTACT: 
Deborah Scott at (202) 482-2657 or Robert James at (202) 482-0649; AD/
CVD Enforcement, Group III, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, N.W., Washington, D.C. 20230.

SUPPLEMENTARY INFORMATION:

Final Determination

    The Department of Commerce is conducting an antidumping duty 
investigation of silicomanganese from Venezuela. We determine that 
silicomanganese from Venezuela is being sold, or is likely to be sold, 
in the United States at less than fair value (LTFV), as provided in 
section 733 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 Venezuela. See Notice of 
Preliminary Determination of Sales at Less Than Fair Value; 
Silicomanganese from Venezuela, 66 FR

[[Page 15534]]

56635 (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.

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as amended (the Tariff Act) are references to the provisions 
effective January 1, 1995, the effective date of the amendments made to 
the Tariff Act by the Uruguay Rounds Agreements Act. In addition, 
unless otherwise indicated, all citations to the Department's 
regulations are to 19 CFR Part 351 (2001).

Case History

    Since the publication of the preliminary determination in this 
investigation, the following events have occurred:
    From November 28 through December 9, 2001, we conducted a 
verification of the sales and cost questionnaire responses and 
supplemental questionnaire responses submitted by Hornos El#233;ctricos 
de Venezuela, S.A. (Hevensa). We issued the cost verification report 
for Hevensa on January 29, 2002, and the sales verification report on 
January 31, 2002.
    Although the deadline for this determination was originally January 
23, 2002, on December 28, 2001 we published in the Federal Register our 
notice of the extension of time limits (see 66 FR 67185). This 
extension established the deadline for this final determination as 
March 25, 2002.
    On February 14, 2002, we received case briefs from respondent and 
Eramet Marietta, Inc. and the Paper, Allied-Industrial, Chemical and 
Energy Workers International Union, Local 5-0639 (collectively, the 
petitioners). On February 19, 2002, we received rebuttal briefs from 
respondent and petitioners. On March 12, 2002, we held a public hearing 
in response to a request from the petitioners.

Period of Investigation

    The period of investigation (POI) is April 1, 2000 through March 
31, 2001. This period corresponds to the four most recent fiscal 
quarters prior to the month of the filing of the petition (i.e., April 
2001), in accordance with section 19 CFR 351.204(b)(1) of our 
regulations.

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 ferroalloy 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 ferrosilicon 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 ferroalloy 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 ferromanganese-silicon. Low-carbon 
silicomanganese is classifiable under HTSUS subheading 7202.99.5040.

Facts Available

    For the preliminary determination, we used partial facts available 
in accordance with section 776(a)(1) of the Tariff Act because we 
determined certain information was not available on the record. 
Specifically, in its original and supplemental questionnaire responses, 
Hevensa reported that it was owned by three holding companies who 
performed certain activities on its behalf during the POI, such as 
collection of payments from customers and payments to suppliers of 
inputs. Thus, we determined it was necessary to include a portion of 
the parents' financial and general and adminstrative (G&A) expenses in 
calculating HEVENSA's COP. However, despite repeated requests, Hevensa 
did not provide any financial statements or other relevant documents 
allowing us to quantify the G&A and financial expenses incurred by the 
three holding companies in conducting these activities on HEVENSA's 
behalf. Since we did not have the information necessary to include a 
portion of the parents' financial and G&A expenses in HEVENSA's COP in 
making our preliminary determination, we found, pursuant to section 
776(a) of the Tariff Act, it was appropriate to use the facts otherwise 
available in calculating COP. Section 776(a) of the Tariff Act provides 
that the Department will, subject to section 782(d), use the facts 
otherwise available in reaching a determination if ``necessary 
information is not available on the record.'' As facts available for 
the preliminary determination, we used the G&A and financial expense 
ratios contained in the petition for Siderurgica Venezolana SIVENSA, 
S.A. (SIVENSA), a Venezuelan steel producer, to calculate HEVENSA's 
COP.
    At verification, we determined none of the three holding companies 
engaged in any business activities on Hevensa's behalf during the POI. 
For information regarding the nature of the three holding companies, 
see ``Verification of the Sales Information Submitted by Hornos 
Electricos de Venezuela (Hevensa) in the Investigation of 
Silicomanganese from Venezuela (A-307-820),'' dated January 31, 2002, 
at 3 through 5 and ``Silicomanganese from Venezuela-COP/CV Verification 
of Hornos Electricos de Venezuela,'' dated January 29, 2002, at 5 (Cost 
Verification Report). Both documents are on file in the Central Records 
Unit, room B-099, of the main Department building. Additionally, we 
found Hevensa's financial statements fully captured the financial and 
G&A expenses incurred by Hevensa. Therefore, we have not found it 
necessary to use partial facts available for financial and G&A expenses 
for the final determination. However, we have not used Hevensa's 
financial and G&A expense ratios as reported, but rather have revised 
these ratios as discussed in the ``Issues and Decision Memorandum'' 
from Joseph A. Spetrini, Deputy Assistant Secretary, Group III, Import 
Administration, to Faryar Shirzad, Assistant Secretary for Import 
Administration, dated March 25, 2002 (Decision Memorandum), and the 
Department's Final Determination Analysis Memorandum, dated March 25, 
2002.

Currency Conversion

    We made currency conversions in accordance with section 773A of the

[[Page 15535]]

Tariff Act in the same manner as in the Preliminary Determination.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this administrative review are addressed in the Decision Memorandum, 
dated March 25, 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 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 the Central Records Unit, room 
B-099, of the main Department building. In addition, a complete version 
of the Decision Memorandum can be accessed directly on the Web at 
http://ia.ita.doc.gov. The paper copy and electronic version of the 
Decision Memorandum are identical in content.

Changes Since the Preliminary Determination

    Based on our analysis of comments received, we have made certain 
changes in the margin calculations:
 We have revised the G&A expense ratio to include three 
expenses that were excluded from Hevensa's original calculation of G&A. 
Id. at Comment 2.
 We have revised the date of payment for certain of Hevensa's 
U.S. sales, and thus have recalculated imputed credit expenses for 
those sales. Id. at Comment 5.
 We have applied the corrections reported at the opening day of 
the Hevensa sales verification, and amended the indirect selling 
expense ratio (INDIRSH) and financial expense ratio (INTEX) pursuant to 
our findings at verification.
    These changes are discussed in the relevant sections of the 
Decision Memorandum, accessible in room B-099 and on the Web at http://ia.ita.doc.gov.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Tariff Act, we are 
directing the Customs Service to continue to suspend all entries of 
silicomanganese from Venezuela 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. 
The Customs Service shall continue to require a cash deposit or the 
posting of a bond equal to the weighted-average amount by which the NV 
exceeds the EP, as indicated in the chart below. These suspension-of-
liquidation instructions will remain in effect until further notice. 
The weighted-average dumping margins for this LTFV proceeding are as 
follows:

------------------------------------------------------------------------
                                                 Weighted-Average Margin
             Exporter/Manufacturer                      Percentage
------------------------------------------------------------------------
Hornos El#233;ctricos de Venezuela, S.A........                    24.62
All Others.....................................                    24.62
------------------------------------------------------------------------

ITC Notification

    In accordance with section 735(d) of the Tariff Act, we have 
notified the International Trade Commission (ITC) of our final 
determination. As our final determination is affirmative, the ITC will, 
within 45 days, determine whether these imports are materially 
injuring, or threaten material injury to, the U.S. industry. 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.
    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 pursuant to sections 
735(d) and 777(i)(1) of the Tariff Act.

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

Appendix Issues in Decision Memorandum

Cost of Production
Comment 1. Inflation
Comment 2: G&A Expenses
Comment 3: Interest Expenses on Shareholder Loans
Comment 4: Transformer Failures
Adjustments to United States Price
Comment 5: Date of Payment Used to Calculate Credit Expenses
Comment 6: Duty Drawback
Adjustments to Normal Value
Comment 7: Home Market Credit Expenses Miscellaneous Issues
Comment 8: Level of Trade
Comment 9: Date of Sale
[FR Doc. 02-7953 Filed 4-1-02; 8:45 am]
BILLING CODE 3510-DS-S