[Federal Register Volume 67, Number 90 (Thursday, May 9, 2002)]
[Notices]
[Pages 31241-31243]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-11193]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-821-815]


Notice of Preliminary Determination of Sales at Less Than Fair 
Value: Certain Cold-Rolled Carbon Steel Flat Products From the Russian 
Federation

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

ACTION: Notice of preliminary determination of the less-than-fair-value 
investigation of certain cold-rolled carbon steel flat products from 
the Russian Federation.

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SUMMARY: The Department of Commerce (``Commerce'') has preliminarily 
determined that imports of certain cold-rolled carbon steel flat 
products (``cold-rolled steel'') from the Russian Federation 
(``Russia'') are being, or are likely to be, sold in the United States 
at less than fair value (``LTFV'').

EFFECTIVE DATE: May 9, 2002.

FOR FURTHER INFORMATION CONTACT: Juanita H. Chen 202-482-0409 or Aishe 
Allen at 202-482-0172, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue, 
NW., Washington, DC 20230.

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. In addition, unless otherwise 
indicated, all citations to the Department's regulations are to the 
regulations codified at 19 C.F.R. Part 351 (2001).

Background

    On October 18, 2001, the Department initiated antidumping duty 
investigations to determine whether imports of cold-rolled steel from 
Argentina, Australia, Belgium, Brazil, France, Germany, India, Japan, 
Korea, the Netherlands, New Zealand, the People's Republic of China, 
Russia, South Africa, Spain, Sweden, Taiwan, Thailand, Turkey, and 
Venezuela are being, or are likely to be, sold in the United States at 
LTFV. See Notice of Initiation of Antidumping Duty Investigations: 
Certain Cold-Rolled Carbon Steel Flat Products From Argentina, 
Australia, Belgium, Brazil, France, Germany, India, Japan, Korea, the 
Netherlands, New Zealand, the People's Republic of China, the Russian 
Federation, South Africa, Spain, Sweden, Taiwan, Thailand, Turkey, and 
Venezuela, 66 FR 54198 (October 26, 2001) (``Initiation Notice''). The 
petitioners in this investigation are Bethlehem Steel Corporation, LTV 
Steel Company, Inc., National Steel Corporation, Nucor Corporation, 
Steel Dynamics, Inc., United States Steel Corporation, WCI Steel, Inc., 
and Weirton Steel Corporation (``Petitioners'').\1\
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    \1\ Effective January 1, 2002, the party previously known as 
``United States Steel LLC'' changed its name to ``United States 
Steel Corporation.'' See letter from Skadden, Arps, Slate, Meagher & 
Flom LLP (February 1, 2002).
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    On November 13, 2001, the International Trade Commission (``ITC'') 
preliminarily determined that there is a reasonable indication that an 
industry in the United States is materially injured or threatened with 
material injury by reason of imports of cold-rolled steel from all of 
these countries. See Certain Cold-Rolled Carbon Steel Products From 
Argentina, Australia, Belgium, Brazil, China, France, Germany, India, 
Japan, Korea, the Netherlands, New Zealand, Russia, South Africa, 
Spain, Sweden, Taiwan, Thailand, Turkey, and Venezuela, 66 FR 57985 
(November 19, 2001).
    On November 23, 2001, the Department issued its respondent 
selection memorandum, selecting JSC Severstal (``Severstal'') as the 
sole mandatory respondent to be investigated. See Memorandum from James 
C. Doyle to Edward C. Yang: Selection of Respondents, at 2 (November 
23, 2001) (``Respondent Selection Memo''). On November 27, 2001, the 
Department issued its antidumping questionnaire to Severstal and to the 
Government of the Russian Federation (``GOR''). The Department received 
no responses to the questionnaire. See Memorandum to The File from 
Juanita H. Chen: Failure of Respondent JSC Severstal to Respond to 
Questionnaire (February 4, 2002) (``Failure to Respond Memo'').
    On February 7, 2002, three of the petitioners requested that the 
Department postpone the preliminary determination by fifty days. See 
Letter to the Department from Bethlehem Steel Corporation, National 
Steel Corp., and United States Steel Corporation (February 7, 2002). On 
February 22, 2002, the Department postponed the preliminary 
determination in this investigation to April 26, 2002. See Postponement 
of Preliminary Determinations of Antidumping Duty Investigations: 
Certain Cold-Rolled

[[Page 31242]]

Carbon Steel Flat Products from Argentina, et al., 67 FR 8227 (February 
22, 2002).
    On March 15, 2002, petitioners submitted a letter requesting that 
the Department apply a dumping margin based on total adverse facts 
available for Severstal. Petitioners argue that because Severstal 
failed to timely provide the information requested by the Department, 
as adverse facts available, the Department should apply the highest 
calculated dumping margin of 332.59 percent from the antidumping 
petition or, in the alternative, apply the highest dumping margin of 
137.33 percent from the notice of initiation.

Scope of Investigation

    For purposes of this investigation, the products covered are 
certain cold-rolled (cold-reduced) flat-rolled carbon-quality steel 
products. For a full description of the scope of this investigation, as 
well as a complete discussion of all scope exclusion requests submitted 
in the context of the on-going cold-rolled steel investigations, please 
see the ``Scope Appendix'' attached to the Notice of Preliminary 
Determination of Sales at Less Than Fair Value: Certain Cold-Rolled 
Carbon Steel Flat Products from Argentina, published concurrently with 
this preliminary determination.

Period of Investigation

    The period of investigation (``POI'') is January 1, 2001 through 
June 30, 2001. This period corresponds to the two most recent fiscal 
quarters prior to the filing of the petition (i.e., September 2001).

Critical Circumstances

    On November 29, 2001 and December 7, 2001, four of the petitioners 
in the investigation (Nucor Corporation, Steel Dynamics, Inc., WCI 
Steel, Inc., and Weirton Steel Company) submitted an allegation of 
critical circumstances with respect to imports of cold-rolled steel 
from Russia and requested an expedited decision in the matter. On April 
10, 2002, the Department issued its preliminary affirmative 
determination that critical circumstances exist with respect to imports 
of cold-rolled steel from Russia. See Memorandum to Faryar Shirzad from 
Joseph A. Spetrini: Preliminary Affirmative Determinations of Critical 
Circumstances (April 10, 2002); and Notice of Preliminary 
Determinations of Critical Circumstances: Certain Cold-Rolled Carbon 
Steel Flat Products From Australia, the People's Republic of China, 
India, the Republic of Korea, the Netherlands, and the Russian 
Federation, 67 FR 19157 (April 18, 2002) (``Critical Circumstances 
Notice'').

Nonmarket Economy Country Status

    The Department has treated Russia as a nonmarket economy (``NME'') 
country in all past antidumping investigations. See, e.g., Notice of 
Final Determination of Sales at Less Than Fair Value; Solid Fertilizer 
Grade Ammonium Nitrate from the Russian Federation, 65 FR 42669 (July 
11, 2000); Notice of Final Determination of Sales at Less Than Fair 
Value: Hot-Rolled Flat-Rolled Carbon-Quality Steel Products from the 
Russian Federation, 64 FR 38626 (July 19, 1999); Notice of Final 
Determination of Sales at Less Than Fair Value: Certain Cut-to-Length 
Carbon Steel Plate from the Russian Federation, 62 FR 61787. This NME 
designation remains in effect until it is revoked by the Department. 
See section 771(18)(C) of the Act. No party has sought revocation of 
the NME status in this investigation.\2\ Therefore, in accordance with 
section 771(1)(C) of the Act, we will continue to treat Russia as a NME 
country.
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    \2\ We note there is an ongoing inquiry into the status of 
Russia as a NME country, for which a hearing was conducted on March 
27, 2002. Information on this separate proceeding can be found at 
Import Administration's website, at http://ia.ita.doc.gov/
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Russia-Wide Rate

    In a NME proceeding, the Department presumes that all companies 
within the country are subject to governmental control, and assigns 
separate rates only if the respondent demonstrates the absence of both 
de jure and de facto governmental control over export activities. See 
Notice of Final Determination of Sales at Less Than Fair Value: 
Bicycles From the People's Republic of China, 61 FR 19026, 19027 (April 
30, 1996). As no party requested that it be assigned a separate rate in 
this investigation, there was no demonstration of eligibility for a 
separate rate under the separate rates criteria. Accordingly, we 
preliminarily determine all exporters are subject to the Russia-wide 
rate.

Facts Available

    Section 776(a)(2) of the Act provides that, if an interested party 
(A) withholds information requested by the Department, (B) fails to 
provide such information by the deadline for submission of the 
information, or in the form and manner requested, (C) significantly 
impedes a proceeding under the antidumping statute, or (D) provides 
information that cannot be verified, the Department shall use, subject 
to sections 782(d) of the Act, facts otherwise available in reaching 
the applicable determination.
    Pursuant to section 782(e) of the Act, 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.
    Given the extent to which Severstal exported cold-rolled steel from 
Russia during the POI, Severstal was designated as the sole mandatory 
respondent in the investigation. See Respondent Selection Memo, at 4. 
However, both Severstal and the GOR failed to submit any response to 
the Department's questionnaire. As noted in the Failure to Respond 
Memo, Severstal indicated that it did not plan to respond to the 
Department's NME antidumping questionnaire, with the understanding that 
the Department would apply facts available methodology. Without a 
response from Severstal to the Department's antidumping questionnaire, 
we have no foundation for determining a margin. Thus, the Department 
has applied facts available (``FA''), in accordance with section 
776(a)(2) of the Act, in making our preliminary antidumping 
determination.

Selection of Adverse FA

    In selecting from among the facts otherwise available, section 
776(b) of the Act provides that if the Department finds the respondent 
``has failed to cooperate by not acting to the best of its ability to 
comply with a request for information * * * {the Department} may use an 
inference that is adverse to the interests of that party in selecting 
from among the facts otherwise available.'' See, e.g., Certain Welded 
Carbon Steel Pipes and Tubes From Thailand: Final Results of 
Antidumping Duty Administrative Review, 62 FR 53808, 53819-20 (October 
16, 1997). Severstal did not attempt to respond to the Department's 
questionnaire, but stated outright its intention of not responding to 
the questionnaire at all. See Failure to Respond Memo. As a general 
matter, it is reasonable for the Department to assume that Severstal 
possessed the records necessary for this investigation, and that by not 
supplying any information requested by the Department, Severstal failed 
to cooperate to the best of its ability. Because the Department has 
determined Severstal failed to cooperate to the best

[[Page 31243]]

of its ability, we are applying an adverse inference pursuant to 
section 776(b) of the Act. As adverse FA, we have applied the margin 
from initiation (i.e., the highest margin based on the amended 
petition), which is 137.33 percent, as the Russia-wide rate. See AD 
Initiation Checklist (October 18, 2001) (``Initiation Checklist'' ). 
Pursuant to section 776(c) of the Act, the Department has corroborated 
the 137.33 percent margin from initiation to the extent practicable. 
See Total Facts Available Corroboration Memorandum (April 26, 2002). 
This Russia-wide rate applies to all entries of subject merchandise.

Final Critical Circumstances Determination

    We will make a final determination concerning critical 
circumstances for Russia when we make our final determination regarding 
sales at LTFV in this investigation, which will be no later than 75 
days after the publication of this notice in the Federal Register.

Suspension of Liquidation

    Because of our preliminary affirmative critical circumstances 
finding, we are directing Customs to suspend liquidation of all entries 
of cold-rolled steel from Russia entered, or withdrawn from warehouse, 
for consumption on or after 90 days prior to the date on which this 
notice is published in the Federal Register, in accordance with section 
733(e) of the Act. See Critical Circumstances Notice. We are also 
instructing Customs to require a cash deposit or the posting of a bond 
equal to the preliminary dumping margin, as indicated in the chart 
below. These instructions suspending liquidation will remain in effect 
until further notice.
    We determine that the following percentage weighted-average margin 
exists for the POI:

                 Cold-Rolled Carbon Steel Flat Products
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      Producer/manufacturer/exporter          Weighted-average margin
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Russia-Wide Rate.........................                       137.33%
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    The Russia-wide rate applies to all entries of the subject 
merchandise.

ITC Notification

    In accordance with section 733(f) of the Act, we have notified the 
ITC of our preliminary determination. If our final determination is 
affirmative, the ITC will determine before the later of 120 days after 
the date of this preliminary determination or 45 days after the date of 
our final determination whether imports of cold-rolled steel from 
Russia are materially injuring, or threaten material injury to, the 
U.S. industry.

Public Comment

    Case briefs or other written comments must be submitted to the 
Assistant Secretary for Import Administration no later than 50 days 
after the date of publication of this notice, and rebuttal briefs no 
later than five business days after the deadline for submission of case 
briefs. Rebuttal briefs must be limited to the issues raised in the 
case briefs. A list of authorities used and an executive summary of 
issues should accompany any briefs submitted to the Department. Such 
summary should be limited to five pages total, including footnotes. In 
accordance with section 774 of the Act, we will hold a public hearing, 
if requested, to afford interested parties an opportunity to comment on 
arguments raised in case or rebuttal briefs. Tentatively, the hearing 
will be held two days after the deadline for submission of the rebuttal 
briefs, at the U.S. Department of Commerce, 1401 Constitution Avenue, 
NW., Washington, DC 20230, at a time and location to be determined. 
Parties should confirm by telephone the date, time, and location of the 
hearing 48 hours before the scheduled date.
    Interested parties who wish to request a hearing, or to participate 
if one is requested, must submit a written request to the Assistant 
Secretary for Import Administration, U.S. Department of Commerce, Room 
1870, within 30 days of the date of publication of this notice. 
Requests should contain: (1) The party's name, address, and telephone 
number; (2) the number of participants; and (3) a list of the issues to 
be discussed. At the hearing, oral presentations will be limited to 
issues raised in the briefs. See 19 CFR 351.310(c). If this 
investigation proceeds normally, we will make our final determination 
no later than 75 days after this preliminary determination.
    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act.

    Dated: April 26, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 02-11193 Filed 5-8-02; 8:45 am]
BILLING CODE 3510-DS-P