[Federal Register Volume 67, Number 97 (Monday, May 20, 2002)]
[Notices]
[Pages 35490-35492]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-12597]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-821-814]


Notice of Final Determination of Sales at Less Than Fair Value: 
Structural Steel Beams From the Russian Federation

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

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 its 
preliminary determination of sales at less than fair value of 
structural steel beams from the Russian Federation. On January 7 and 9, 
2002, we received timely allegations of ministerial errors from the 
petitioner and the respondent. Because we agreed with the interested 
parties' ministerial-error allegations, we published on January 31, 
2002, the amended preliminary antidumping duty determination of sales 
at less than fair value of structural steel means from the Russian 
Federation.
    Based on our analysis of the comments received and certain findings 
from the verifications, we have made changes in the margin 
calculations. Therefore, the final determination differs from the 
amended preliminary determination.
    We find that structural steel beams from the Russian Federation are 
being, or are likely to be, sold in the United States at less than fair 
value as provided in section 735 of the Tariff Act of 1930, as amended. 
The estimated margin 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: Hermes Pinilla or Richard Rimlinger, 
AD/CVD Enforcement Group I, Office 3, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW., Washington, DC 20230; telephone: 
(202) 482-3477 or (202) 482-4477, respectively.

SUPPLEMENTARY INFORMATION:

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as amended (the 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 regulations of the Department 
of Commerce (the Department) are to 19 CFR Part 351 (April 2001).

Final Determination

    We determine that structural steel beams from the Russian 
Federation 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.

Case History

    The preliminary determination in this investigation was issued 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 the Russian Federation, 66 FR 66217 (Dec. 
28, 2001) (Preliminary Determination). On January 7 and 9, 2002, we 
received timely allegations of ministerial errors from the petitioner 
and the respondent. Because we agreed with the interested parties' 
ministerial-error allegations, we published the amended preliminary 
antidumping duty determination of sales at less than fair value of 
structural steel beams from the Russian Federation. See Notice of 
Amended Preliminary Determination of Sales at Less Than Fair Value: 
Structural Steel Beams From the Russian Federation, 67 FR 4704 (January 
31, 2002).
    In March, we conducted verification of the questionnaires responses 
of the sole respondent in this case, Nizhny Tagil Iron and Steel Works 
(Tagil).
    On April 15, 2002, we received a case brief from the petitioner 
(i.e., the Committee for Fair Beam Imports), and on April 17, 2002, the 
respondent submitted its rebuttal brief.

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.
    The merchandise subject to this investigation is currently 
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.

Scope Comments

    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.

Period of Investigation

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

Analysis of Comments Received

    All issues raised in the case briefs by the petitioner to this 
proceeding and to which we have responded are listed in the Appendix to 
this notice and addressed in the Decision Memorandum, which is adopted 
by this notice. Parties can find a complete discussion of the issues 
raised in this investigation and the corresponding recommendations in 
this public

[[Page 35491]]

memorandum, which is on file in the Central Records Unit, room B-099 of 
the main Commerce Building. In addition, a complete version of the 
Decision Memorandum can be accessed directly on the Web at http://ia.ita.doc.gov/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 certain adjustments to the margin calculations. 
For a discussion of these changes, see the Decision Memorandum. These 
revisions are as follows:
    1. In the Preliminary Determination, we used the 1997 financial 
statements of Eregli Demir ve Celik Fabrikalari TAS (Erdemir), a 
Turkish steel producer, to value overhead selling, general, and 
administrative (SG&A) expenses and profit ratios. For the final 
determination of this investigation, we have used the 2000 financial 
statement of Erdemir to value overhead SG&A expenses and profit ratios. 
For further details see analysis memorandum (analysis memorandum) dated 
May 10, 2002.
    2. During our sales verification we found that Tagil had 
misreported its inventory carrying costs. Therefore, for the final 
determination of this investigation, we revised Tagil's inventory 
carrying costs. See the sales verification report dated March 22, 2002, 
at page 23. See also analysis memorandum.
    3. During our sales verification we found that Tagil's factor for 
indirect selling expenses changed slightly. Therefore, for the final 
determination of this investigation, we have revised Tagil's factor for 
indirect selling expenses. See the sales verification report dated 
March 22, 2002, at page 22. See also analysis memorandum.
    4. During our verification of Tagil's factors-of-production 
information we found that Tagil misreported its labor costs by basing 
its labor costs on a 7.5-hour workday instead of the eight hours for 
which the workers were actually paid. Therefore, for the final 
determination of this investigation, we revised Tagil's labor figures 
to capture total labor hours associated with the production of the 
subject merchandise. See the factors-of-production verification report 
dated April 5, 2002, at page 2. See also analysis memorandum.
    5. During our factors-of-production verification we found that 
Tagil misreported the several distances from the supplier to Tagil's 
factory. Therefore, for the final determination of this investigation, 
we revised, where applicable, Tagil's reported distances from the 
supplier to the factory. See the factors-of-production verification 
report dated April 5, 2002, at page 2. See also analysis memorandum.
    6. Because of numerous corrections which Tagil presented during the 
factors-of-production verification, we requested that it revise its 
factors-of-production database and submit a new factors-of-production 
database for the final determination.
    7. For the final results of this investigation, we are using 
current information regarding South African imports of slag, dross, 
scalings and waste as reported in the Tradstat data service to value 
slag, waste, and vanadium. See the petitioner's February 6, 2002, 
submission at exhibit 3. See also analysis memorandum.
    8. We determined to use the second alternative calculation of 
Tagil's short-term borrowing rate for the final results. See sales 
verification report dated March 22, 2002, at page 19, footnote 5. 
Consequently, we revised Tagil's credit expenses and inventory carrying 
costs to reflect the revised short-term borrowing rate. See analysis 
memorandum.
    9. Upon review of our calculations for the Preliminary 
Determination, we found that the import statistics the respondent 
proposed and which we used to value lime/limestone vary from each other 
significantly. Therefore, we re-evaluated the use of these statistics 
and contacted a lime specialist with the U.S. Geological Survey. The 
lime specialist explained that the lime which is most likely used in 
the steel industry is categorized under HTS numbers 2522.10.0000, 
2522.20.000, and 2522.30.000, not under HTS number 2521000 as proposed 
by the respondent. Therefore, based on this information, we have used 
import statistics for calendar year 2000 pertinent to HTS numbers under 
subcategory 2522 for the final determination. For further detail, see 
analysis memorandum.
    10. For the final results of this investigation, we have accounted 
for the differences in calorific or energy potential and valued by-
product gases according to their proper natural gas equivalents. For 
further details, see analysis memorandum.

Verification

    As provided in section 782(i) of the Act, we verified the 
information submitted by the respondent for use in our final 
determination. We used standard verification procedures, including 
examination of relevant accounting and production records, and original 
source documents, provided by the respondent.

Russia-Wide Rate

    In all non-market economy (NME) cases, the Department implements a 
policy whereby there is a rebuttable presumption that all exporters or 
producers located in the NME comprise a single exporter under common 
government control, the ``NME entity.'' The Department assigns a single 
NME rate to the NME entity unless an exporter can demonstrate 
eligibility for a separate rate.
    Tagil has qualified for a separate rate. Furthermore, the 
information on the record of this investigation indicates that Tagil is 
the only Russian producer and/or exporter of the subject merchandise 
with sales or shipments to the United States during the POI. Based upon 
our examination and clarification of U.S. Customs Service data, we have 
determined that there are no other Russian producers and/or exporters 
of the subject merchandise and consequently none which were required to 
respond to our questionnaire. Because the only known Russian producer 
of steel beams, Tagil, responded to our questionnaire and the evidence 
indicates that there are no other Russian producers or exporters of 
subject merchandise during the POI, we have calculated a Russia-wide 
rate for this investigation based on the weighted-average margin we 
determined for Tagil. This Russia-wide rate applies to all entries of 
subject merchandise except for entries of subject merchandise exported 
by Tagil.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we are 
directing the Customs Service to continue to suspend liquidation of all 
entries of structural steel beams from the Russian Federation that are 
entered, or withdrawn from warehouse, for consumption on or after 
December 28, 2001, the publication date of the preliminary 
determination in the Federal Register. The Customs Service shall 
continue to require a cash deposit or the posting of a bond based on 
the estimated weighted-average dumping margins shown above. The 
suspension-of-liquidation instructions will remain in effect until 
further notice.
    The weighted-average margins are as follows:

[[Page 35492]]



------------------------------------------------------------------------
                                                                Margin
                   Manufacturer/exporter                      (percent)
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Nizhny Tagil Iron and Steel Works..........................       230.66
Russia-Wide Rate...........................................       230.66
------------------------------------------------------------------------

    In accordance with section 735(c)(5)(A) of the Act, we have based 
the Russia-wide rate on the dumping margin found for the sole producer/ 
exporter investigated in this proceeding, Tagil.

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 determine, within 45 days, 
whether these imports are causing material injury, or threat of 
material injury, to an industry in the United States. If the ITC 
determines that material injury or threat of 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, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation.
    This notice serves as the only 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(a)(3). Timely written 
notification of return/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.
    We are issuing and publishing this determination and notice in 
accordance with sections section 735(d) and 777(i) of the Act.

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

Appendix--Issues in the Decision Memorandum

Comments

    Comment 1: Valuation of By-Products
    Comment 2: Sales of ``I'' Beams
    Comment 3: Inventory Carrying Costs
    Comment 4: Labor Costs

[FR Doc. 02-12597 Filed 5-17-02; 8:45 am]
BILLING CODE 3510-DS-P