[Federal Register Volume 67, Number 97 (Monday, May 20, 2002)]
[Notices]
[Pages 35485-35487]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-12594]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-791-811]


Notice of Final Determination of Sales at Less Than Fair Value: 
Structural Steel Beams from South Africa

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

[[Page 35486]]


ACTION: Notice of final determination of sales at less than fair value.

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SUMMARY: On December 28, 2001, the Department of Commerce published the 
preliminary determination of sales at less than fair value of 
structural steel beams from South Africa.. The period of investigation 
is April 1, 2000, through March 31, 2001.Based on our analysis of the 
comments received and certain findings from the verification, we have 
made changes in the margin calculations. Therefore, the final 
determination differs from the preliminary determination.We determine 
that structural steel beams from South Africa are being, or are likely 
to be, sold in the United States at less-than-fair-value prices as 
provided in section 735 of the Tariff Act of 1930, as amended. The 
estimated margins of sales at less than fair value are shown in the 
``Continuation of Suspension of Liquidation'' section of this notice.

EFFECTIVE DATE: May 20, 2002.

FOR FURTHER INFORMATION CONTACT: J. David Dirstine, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, N.W., Washington, D.C. 
20230; telephone: (202) 482-4033.

SUPPLEMENTARY INFORMATION:

The Applicable Statute and Regulations

    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 (URAA). In addition, unless otherwise 
indicated, all citations to the Department of Commerce's (the 
Department's) regulations are to the provisions codified at 19 CFR Part 
351 (April 2001).

Final Determination

    We determine that structural steel beams (beams) from South Africa 
are being, or are likely to be, sold in the United States at less than 
fair value (LTFV) as provided in section 735 of the Act. The estimated 
margins of sales at LTFV are shown in the ``Continuation of Suspension 
of Liquidation'' section of this notice.

Scope of Investigation

    The scope of this investigation covers doubly-symmetric shapes, 
whether hot- or cold-rolled, drawn, extruded, formed or finished, 
having at least one dimension of at least 80 mm (3.2 inches or more), 
whether of carbon or alloy (other than stainless) steel, and whether or 
not drilled, punched, notched, painted, coated, or clad. These 
structural steel beams include, but are not limited to, wide-flange 
beams (``W''shapes), bearing piles (``HP'' shapes), standard beams 
(``S'' or ``I'' shapes), and M-shapes. All the products that meet the 
physical and metallurgical descriptions provided above are within the 
scope of this investigation unless otherwise excluded. The following 
products are outside and/or specifically excluded from the scope of 
this investigation: (1) structural steel beams greater than 400 pounds 
per linear foot, (2) structural steel beams that have a web or section 
height (also known as depth) over 40 inches, and (3) structural steel 
beams that have additional weldments, connectors or attachments to I-
sections, H-sections, or pilings; however, if the only additional 
weldment, connector, or attachment on the beam is a shipping brace 
attached to maintain stability during transportation, the beam is not 
removed from the scope definition by reason of such additional 
weldment, connector, or attachment.
    Prior to the preliminary determination in this case, interested 
parties in this and the concurrent structural steel beams 
investigations requested that the following products be excluded from 
the scope of the investigations: (1) beams of grade A913/65 and (2) 
forklift mast profiles. We preliminarily found that both products fell 
within the scope of this investigation. Because we have received no 
further scope comments in this proceeding, we are making a final 
determination that these products fall within the scope of this 
investigation.
    The merchandise subject to this investigation is classified in the 
Harmonized Tariff Schedule of the United States (HTSUS) at subheadings 
7216.32.0000, 7216.33.0030, 7216.33.0060, 7216.33.0090, 7216.50.0000, 
7216.61.0000, 7216.69.0000, 7216.91.0000, 7216.99.0000, 7228.70.3040, 
and 7228.70.6000. Although the HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the 
merchandise under investigation is dispositive.

Case History

    On June 20, 2001, the Department published a notice of initiation 
of the investigation of sales at LTFV of structural steel beams from 
South Africa (66 FR 33048). We published in the Federal Register the 
preliminary determination in this investigation on December 28, 2001. 
See Notice of Preliminary Determination of Sales at Less Than Fair 
Value and Postponement of Final Determination: Structural Steel Beams 
from South Africa, 66 FR 67213 (December 28, 2001) (Preliminary 
Determination). Since the publication of the Preliminary Determination, 
the following events have occurred.
    On January 7, through 11, 2002, the Department conducted 
verification of the home- market sales of Highveld Steel and Vanadium 
Corporation, Ltd. (Highveld), the sole respondent in this 
investigation. See Memorandum from J. David Dirstine and Dunyako Ahmadu 
to the File, dated January 29, 2002, Re: Home-Market Verification of 
Highveld Steel and Vanadium Corporation. On February 11, through 15, 
2002, the Department conducted a cost-of-production (COP) and 
constructed-value (CV) data verification of Highveld. See Memorandum 
from Laurens van Houten and Heidi Norris to Neal Halper, Director, 
Office of Accounting, dated March 18, 2002, Re: Verification Report on 
the Cost of Production and Constructed Value Data Submitted by Highveld 
Steel and Vanadium Corporation, Ltd. (Cost Verification Memorandum). On 
February 25, through 28, 2002, the Department conducted a U.S. sales 
data verification of Newco Steel Trading Co. (Newco), an affiliated 
U.S. reseller of merchandise produced by Highveld. See Memorandum from 
J. David Dirstine and Dunyako Ahmadu to the File, dated March 25, 2002, 
Re: United States Sales Verification of Highveld Steel and Vanadium 
Corporation.
    On April 2, 2002, the petitioners, the Committee for the Fair Beam 
Imports and its individual members, and Highveld submitted their case 
briefs with respect to the verifications and the Preliminary 
Determination. On April 8, 2002, the petitioners and Highveld submitted 
rebuttal briefs with respect to the sales verifications and the 
Preliminary Determination. On April 9, 2002, we conducted a public 
hearing with a closed session with respect to the issues raised in the 
case briefs.
    In a letter dated January 3, 2002, Highveld requested that the 
Department and Highveld enter into a suspension agreement pursuant 
734(b) of the Act. The petitioners objected to Highveld's proposal in 
letters dated April 1, 2002, and February 14, 2002. After careful 
consideration and discussing the proposed agreement with the 
petitioners and Highveld, on April 15, 2002, the Department advised 
Highveld that it could not accept the proposed suspension agreement for 
various reasons.

Period of Investigation

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

[[Page 35487]]

Analysis of Comments Received

    All issues raised in the case briefs by parties to this 
investigation are addressed in a decision memorandum which is hereby 
adopted by this notice. See the Structural Steel Beams from South 
Africa Issues and Decisions Memorandum dated May 13, 2002 (Issues and 
Decision Memorandum). A list of the issues which parties raised, and to 
which we have responded, all of which are in the Issues and Decision 
Memorandum, is attached to this notice as an Appendix. Parties can find 
a complete discussion of all issues raised in this investigation and 
the corresponding recommendations in this public memorandum, which is 
on file in B-099. In addition, a complete version of the Decision 
Memorandum can be accessed directly on the internet at www.ita.doc.gov/import_admin/records/frn/. The paper copy and electronic version of 
the Decision Memorandum are identical in content.

Changes Since the Preliminary Determination

    Based on our findings at verification and analysis of comments we 
received, we have made adjustments to the calculation methodology in 
calculating the final dumping margins for Highveld in this proceeding. 
See Final Analysis Memorandum for Highveld dated May 13, 2001 (Final 
Analysis Memorandum). These revisions are as follows:
1. We adjusted COP and CV with a credit for vanadium slag using a by-
product methodology in the calculation of the total cost of 
manufacture. See Issues and Decision Memorandum at Comment 4 and 
Memorandum to the File from Laurens van Houten, Senior Accountant, 
Office of Accounting, dated May 13, 2002, Re: Cost of Production and 
Constructed Value Calculation Adjustments for the Final Determination 
(Office of Accounting COP and CV Memorandum).
2. We recalculated Highveld's reported fixed cost per ton. See Issues 
and Decision Memorandum at Comment 9 and Office of Accounting COP and 
CV Memorandum.
3. We revised the calculation of the general and administrative expense 
rate for Highveld based on information we obtained at the home-market 
Highveld verification. See Issues and Decision Memorandum at Comment 6 
and Office of Accounting COP and CV Memorandum.
4. In accordance with the Department's long-standing practice, we 
recalculated Highveld's interest-expense ratio based on the net 
financing expenses and cost of sales from the audited fiscal-year 
financial statements of the highest level of consolidation which 
corresponds most closely to the POI, i.e., on the December 31, 2000, 
audited financial statements of Highveld's parent, Anglo American PLC. 
See Issues and Decision Memorandum at Comment 7 and Office of 
Accounting COP and CV Memorandum.5. We eliminated equal angles and 
channels from both the home-market and U.S. sales databases as non-
subject merchandise. See Final Analysis Memorandum.
6. Based on findings at verification at Highveld's offices in South 
Africa, we excluded certain sales reported incorrectly as export-price 
(EP) sales and included one EP sale that had been excluded incorrectly. 
See Highveld home-market sales verification report dated January 29, 
2002 (Highveld home-market sales verification report).
7. Based on findings at the home-market verification, we used revised 
inventory carrying costs for this final determination. See Highveld 
home-market sales verification report.
8. Based on findings at the home-market verification, we used revised 
inland-freight expenses for certain EP sales. See Highveld home-market 
sales verification report.
9. Based on findings at the home-market verification we made a 
deduction from normal value for a per-ton levy paid to the South 
African Iron and Steel Institute applicable to home-market sales of 
structural beams. See Highveld home-market sales verification report.

Verification

    As provided in section 782(i) of the Act, we verified the 
information submitted by Highveld for use in our final determination. 
We used standard verification procedures including examination of 
relevant accounting and production records, as well as original source 
documents provided by the respondents. For changes from the Preliminary 
Determination as a result of verification, see the ``Changes Since the 
Preliminary Determination'' section of this notice, above, and Final 
Analysis Memorandum.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B)(ii) of the Act, we are 
directing the Customs Service to continue to suspend liquidation of all 
entries of subject merchandise from South Africa that are entered, or 
withdrawn from warehouses, for consumption on or after December 28, 
2001, the date of publication of the preliminary determination in the 
Federal Register. The Customs Service shall continue to require a cash 
deposit or posting of a bond equal to the estimated amount by which the 
normal value exceeds the U.S. price as shown below. This suspension-of-
liquidation instruction will remain in effect until further notice.
    The weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                        Weighted-average
                Exporter/manufacturer                    percent margin
------------------------------------------------------------------------
Highveld.............................................               5.17
All Others...........................................               5.17
------------------------------------------------------------------------

ITC Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (ITC) of our 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 directing Customs officials to assess 
antidumping duties on all imports of the subject merchandise entered 
for consumption on or after the effective date of the suspension of 
liquidation.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: May 13, 2002
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix

Comment 1: Affiliation
Comment 2: Indirect Selling Expenses
Comment 3: Understated Cost of Production (COP)
Comment 4: Byproduct Methodology v. Coproduct Methodology
Comment 5: Unallocated Costs
Comment 6: General and Administrative Expenses
Comment 7: Financial Expense Ratio
Comment 8: South African Iron and Steel Institute Domestic Sales Levy
Comment 9: Minor Errors Discovered at the Cost Verification
[FR Doc. 02-12594 Filed 5-17-02; 8:45 am]
BILLING CODE 3510-DS-S