[Federal Register Volume 67, Number 178 (Friday, September 13, 2002)]
[Notices]
[Pages 58015-58018]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-23388]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-809]


Certain Cut-to-length Carbon Steel Plate from Mexico: Preliminary 
Results of Antidumping Duty Administrative Review

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

ACTION: Notice of Preliminary Results of Antidumping Duty 
Administrative Review.

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SUMMARY: The Department of Commerce (the Department) is conducting an 
administrative review of the antidumping duty order on certain cut-to-
length carbon steel plate (steel plate) from Mexico (A-201-809) 
manufactured by Altos Hornos de Mexico, S.A. de C.V. (AHMSA). The 
period of review (POR) is August 1, 2000 through July 31, 2001. We 
preliminarily determine that AHMSA made no sales of steel plate below 
the normal value (NV). If these preliminary results are adopted in our 
final results of administrative review, we will instruct the U.S. 
Customs Service to assess no antidumping duties on AHMSA's entries. 
Interested parties are invited to comment on these preliminary results. 
Parties who submit argument in these proceedings are requested to 
submit with the argument 1) a statement of the issues and 2) a brief 
summary of the argument.

EFFECTIVE DATE : September 13, 2002.

FOR FURTHER INFORMATION CONTACT: Thomas Killiam, Mike Heaney, or Robert 
James, 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, 
telephone: (202) 482-5222, (202) 482-4475, or (202) 482-0649, 
respectively.

SUPPLEMENTARY INFORMATION:

APPLICABLE STATUTE AND REGULATIONS:

    Unless otherwise indicated, all citations to the 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 Round Agreements Act (URAA). In addition, 
unless otherwise indicated, all citations to the Department's 
regulations are to 19 CFR Part 351 (2001).

Background

    On August 19, 1993, the Department published the antidumping duty 
order on steel plate from Mexico (58 FR 44165). On August 1, 2001, the 
Department published the notice of ``Opportunity to Request 
Administrative Review'' for this order, covering the period August 1, 
2000 through July 31, 2001 (66 FR 39729). In accordance with 19 CFR 
351.213(b)(2), on August 31, 2001, AHMSA requested a review. On October 
26, 2001, the Department published in the Federal Register a notice of 
initiation of this antidumping duty administrative review (66 FR 
54195). On April 25, 2002, we extended the time limit for the 
preliminary results of this administrative review to August 31, 2002 
(67 FR 20487).

Scope of the Review

    The products covered in this review include hot-rolled carbon steel 
universal mill plates (i.e., flat-rolled products rolled on four faces 
or in a closed box pass, of a width exceeding 150 millimeters but not 
exceeding 1,250 millimeters and of a thickness of not less than 4 
millimeters, not in coil and without patterns in relief), of 
rectangular shape, neither clad, plated nor coated with metal, whether 
or not painted, varnished, or coated with plastics or other nonmetallic 
substances; and certain hot-rolled carbon steel flat-rolled products in 
straight lengths, of rectangular shape, hot rolled, neither clad, 
plated, nor coated with metal, whether or not painted, varnished, or 
coated with plastics or other nonmetallic substances, 4.75 millimeters 
or more in thickness and of a width which exceeds 150 millimeters and 
measures at least twice the thickness, as currently classifiable in the 
Harmonized Tariff Schedule (HTS) under item numbers 7208.31.0000, 
7208.32.0000, 7208.33.1000, 7208.33.5000, 7208.41.0000, 7208.42.0000, 
7208.43.0000, 7208.90.0000, 7210.70.3000, 7210.90.9000, 7211.11.0000, 
7211.12.0000, 7211.21.0000, 7211.22.0045, 7211.90.0000, 7212.40.1000, 
7212.40.5000, and 7212.50.0000. Included in this review are flat-rolled 
products of non-rectangular cross-section where such cross-section is 
achieved subsequent to the rolling process products which have been 
``worked after rolling''); for example, products which have been 
beveled or rounded at the edges. Excluded from this review is grade X-
70 plate.
    These HTS item numbers are provided for convenience and U.S. 
Customs purposes. The written descriptions remain dispositive. The POR 
is August 1, 2000, through July 31, 2001. This review covers sales of 
certain cut-to-length carbon steel plate by AHMSA.

Period of Review

    The POR is August 1, 2000 through July 31, 2001.

Fair Value Comparisons

    To determine whether AHMSA made sales of steel plate from Mexico in 
the United States at less than fair value, we compared the export price 
(EP) to the NV, as described in the ``Export Price'' and ``Normal 
Value'' sections of this notice. In accordance with section

[[Page 58016]]

777A(d)(1)(A)(i) of the Tariff Act, we calculated EPs and compared 
these prices to weighted-average NVs or constructed values (CVs).

Export Price

    In accordance with section 772 of the Tariff Act, we calculated an 
EP for each U.S. sale, because all merchandise was sold by AHMSA 
outside the United States to the first unaffiliated purchaser in the 
United States prior to the importation, and constructed export price 
was not otherwise indicated. Section 772(a) of the Tariff Act defines 
EP as the price at which the subject merchandise is first sold before 
the date of importation by the exporter or producer outside the United 
States to an unaffiliated purchaser in the United States, or to an 
unaffiliated purchaser for exportation to the United States, as 
adjusted under subsection (c). We calculated EP based on prices charged 
to the first unaffiliated customer in the United States. We used the 
date of invoice as the date of sale. We based EP on the packed prices 
to the first unaffiliated purchasers in the United States. AHMSA 
reported no duty drawback claim. We made deductions for movement 
expenses in accordance with section 772(c)(2)(A) of the Tariff Act, 
including foreign inland freight, foreign brokerage and handling, and 
shipping insurance. See Memorandum from Thomas Killiam to the file, 
``Analysis of Data Submitted by AHMSA,'' dated August 31, 2002 
(``analysis memo'').

Normal Value

A. Viability
    We determined that AHMSA had a viable home market, pursuant to 19 
CFR 351.404(b)(2), because AHMSA's home market sales were greater than 
5 percent of its U.S. sales based on aggregate volume by weight.
B. Arm's Length Sales
    AHMSA reported that it made sales in the home market to affiliated 
and unaffiliated end users and distributors/retailers. We excluded from 
our analysis sales which AHMSA made to affiliated customers in the home 
market when these sales were not made at arm's length. To test whether 
these sales were made at arm's length, we compared the starting prices 
of sales to affiliated and unaffiliated customers net of all billing 
adjustments, movement charges, direct selling expenses, discounts and 
packing expense. Where prices to the affiliated party were on average 
99.5 percent or more of the price to the unrelated party, we determined 
that sales made to the related party were at arm's length. See 19 CFR 
351.403(c).
    In our home market NV calculation, we included AHMSA's sales to 
those of its affiliated resellers who passed the Department's arm's 
length test criteria.
C. Cost of Production Analysis
    In the preceding review the Department disregarded sales that 
failed the cost test. See Notice of Amended Final Results of 
Antidumping Duty Administrative Review: Certain Cut-to-Length Carbon 
Steel Plate From Mexico, 66 FR 7619 (January 24, 2001). See also 
Certain Cut-to-Length Carbon Steel Plate From Mexico: Preliminary 
Results of Antidumping Duty Administrative Review, 64 FR 48584 
(September 7, 1999). Therefore, pursuant to section 773(b)(1) of the 
Tariff Act, the Department initiated an investigation to determine 
whether AHMSA made home market sales of subject merchandise during the 
POR at prices below its COP.
    In accordance with section 773(b)(3) of the Tariff Act, we 
calculated COP based on the sum of the costs of materials and 
fabrication employed in producing the foreign like product, plus 
selling, general, and administrative expenses (SG&A) and packing. We 
relied on the COP data submitted by AHMSA except we recalculated net 
interest expenses to include the current portion of the gain on 
monetary position and net foreign exchange gains and losses. 
Additionally, in accordance with section 773(f)(3) of the Act, we 
increased AHMSA's reported cost of major inputs obtained from 
affiliates to the highest of transfer price, market price or the 
affililiate's COP. See Memorandum from Trinette L. Ruffin to Neal 
Halper, Director Office of Accounting, dated September 3, 2002, Re: 
Cost Adjustments.
    On a product-specific basis, we compared the adjusted weighted-
average COP to the home market sales of the foreign like product, as 
required under section 773(b) of the Tariff Act, in order to determine 
whether the sale prices were below the COPs. The prices were exclusive 
of any applicable movement charges, rebates, discounts, and direct and 
indirect selling expenses. In determining whether to disregard home 
market sales made at prices less than their COP, we examined whether 
such sales were made (1) within an extended period of time in 
substantial quantities, and (2) at prices which permitted the recovery 
of all costs within a reasonable period of time.
    Pursuant to section 773(b)(2)(C) of the Tariff Act, where less than 
20 percent of a respondent's home market sales for a model are at 
prices less than the COP, we do not disregard any below-cost sales of 
that model because we determine that the below-cost sales were not made 
within an extended period of time in ``substantial quantities.'' Where 
20 percent or more of a respondent's sales of a given product were at 
prices less than the COP, we disregard those sales of that product, 
because we determine that in such instances the below-cost sales 
represented ``substantial quantities'' within the extended period of 
time, in accordance with section 773(b)(1)(A) of the Tariff Act. In 
such cases, we also determine whether such sales were made at prices 
which would not permit recovery of all costs within a reasonable period 
of time, in accordance with section 773(b)(1)(B) of the Tariff Act.
    The results of our cost test for AHMSA indicated that for certain 
comparison market models, less than 20 percent of the sales of the 
model were at prices below COP. We therefore retained all sales of 
these comparison market models in our analysis and used them as the 
basis for determining NV. Our cost test also indicated that within an 
extended period of time (one year, in accordance with section 
773(b)(2)(B) of the Tariff Act), for certain comparison market models, 
AHMSA made more than 20 percent of the comparison market sales at 
prices below COP. Because we compared prices to POR-average costs, we 
also determined that the below-cost prices would not permit the 
recovery of costs within a reasonable time. In accordance with section 
773(b)(1) of the Tariff Act, we therefore excluded these below-cost 
sales from our analysis and used the remaining above-cost sales as the 
basis for determining NV.
D. Product Comparisons
    We compared AHMSA's U.S. sales with contemporaneous sales of the 
foreign like product in the home market. In matching merchandise we 
considered the following physical and manufacturing attributes: overrun 
or normal production lot, steel quality (structural or pressure 
vessel), steel specification, heat treatment used, if appropriate, 
plate thickness, width, surface finish (checkering, paint), and whether 
or not descaled. We used a 20 percent difference-in-merchandise 
(DIFMER) cost deviation cap as the maximum difference in cost allowable 
for similar merchandise, which we calculated as the absolute value of 
the difference between the U.S. and comparison market variable costs of 
manufacturing divided by the total cost of manufacturing of the U.S. 
product.

[[Page 58017]]

E. Level of Trade
    In accordance with section 773(a)(1)(B) of the Tariff Act, to the 
extent practicable, we determine NV based on sales in the comparison 
market at the same level of trade (LOT) as the U.S. transaction. See 
Certain Cut-to-Length Carbon Steel Plate From Mexico: Preliminary 
Results of Antidumping Duty Administrative Review, 64 FR 48584, 48586, 
September 7, 1999. See also Import Administration Policy Bulletin 
Number 92/1, July 29, 1992, ``Matching at Levels of Trade.'' (http://ia.ita.doc.gov/policy/bull92-1.txt). AHMSA reported no differences in 
its selling activities in the U.S. and home markets. Based upon the 
record evidence, we have determined that AHMSA sold at only one LOT for 
its U.S. sales, the same LOT at which its home market sales were made. 
Accordingly, no LOT adjustment under section 773(a)(7)(A) is warranted.
F. Home Market Price
    We based home market prices on the packed, delivered prices to the 
purchasers in the comparison market. We made adjustments for 
differences in packing and movement expenses where applicable, in 
accordance with sections 773(a)(6)(A) and (B) of the Tariff Act. In 
addition, we made adjustments for differences in cost attributable to 
differences in physical characteristics of the merchandise pursuant to 
section 773(a)(6)(C)(ii) of the Tariff Act, and for differences in 
circumstances of sale (COS) in accordance with section 
773(a)(6)(C)(iii) of the Tariff Act and 19 CFR 351.410. For comparison 
to EP we made COS adjustments by deducting comparison market direct 
selling expenses and adding U.S. direct selling expenses. We included 
credit expense and cutting fees, where applicable, in these direct 
selling expenses.
    In accordance with section 773(a)(4) of the Tariff Act, we based NV 
on CV when we were unable to find a contemporaneous comparison market 
match for the U.S. sale. We calculated CV based on the cost of 
materials and fabrication of the subject merchandise, SG&A, and profit. 
We calculated the cost of materials, fabrication, and general and 
administrative expenses based on the methodology described in the 
``Calculation of COP'' section of this notice. In accordance with 
773(e)(2)(A) of the Tariff Act, we based SG&A expenses and profit on 
the amounts incurred and realized by the respondent in connection with 
the production and sale of the foreign like product in the ordinary 
course of trade for consumption in the foreign country. For selling 
expenses, we used the weighted-average comparison market selling 
expenses. Where appropriate, we made COS adjustments to CV in 
accordance with section 773(a)(8) of the Tariff Act and 19 CFR 351.410.

Currency Conversion

    We made currency conversions into U.S. dollars based on the 
exchange rates in effect on the dates of the U.S. sales as certified by 
the Federal Reserve Bank, in accordance with section 773A of the Tariff 
Act.

Preliminary Results of Review

    As a result of our review, we preliminarily determine the weighted-
average dumping margins for the period August 1, 2000 through July 31, 
2001, to be as follows:

------------------------------------------------------------------------
               Manufacturer / Exporter                  Margin (percent)
------------------------------------------------------------------------
AHMSA................................................                  0
------------------------------------------------------------------------

    The Department will disclose calculations performed in connection 
with these preliminary results of review within five days of the date 
of publication of this notice in accordance with 19 CFR 351.224(b). An 
interested party may request a hearing within 30 days of publication. 
See CFR 351.310(c). Any hearing, if requested, will be held 37 days 
after the date of publication, or the first business day thereafter, 
unless the Department alters the date per 19 CFR 351.310(d). Interested 
parties may submit case briefs and/or written comments no later than 30 
days after the date of publication of these preliminary results of 
review. Rebuttal briefs and rebuttals to written comments, limited to 
issues raised in the case briefs and comments, may be filed no later 
than 35 days after the date of publication of this notice. Parties who 
submit argument in these proceedings are requested to submit with the 
argument 1) a statement of the issue, 2) a brief summary of the 
argument and (3) a table of authorities. The Department will issue the 
final results of this administrative review, including the results of 
our analysis of the issues raised in any such written comments or at a 
hearing, within 120 days of publication of these preliminary results.

Assessment Rates

    Upon completion of this administrative review, the Department will 
determine, and the Customs Service shall assess, antidumping duties on 
all appropriate entries. In accordance with 19 CFR 351.212(b)(1), we 
have calculated an exporter-specific assessment rate for merchandise 
subject to this review. The Department will issue appropriate 
assessment instructions directly to the Customs Service within 15 days 
of publication of the final results of review. If these preliminary 
results are adopted in the final results of review, we will direct the 
Customs Service to assess the resulting assessment rates against the 
entered customs values for the subject merchandise on each of the 
importer's/customer's entries during the review period.
    Furthermore, the following deposit requirements will be effective 
upon completion of the final results of this administrative review for 
all shipments of steel plate from Mexico entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of this administrative review, as provided by section 
751(a)(1) of the Tariff Act: (1) the cash deposit rate for the reviewed 
company will be the rate established in the final results of 
administrative review; (2) for merchandise exported by manufacturers or 
exporters not covered in this review but covered in the original less-
than-fair-value (LTFV) investigation or a previous review, the cash 
deposit will continue to be the most recent rate published in the final 
determination or final results for which the manufacturer or exporter 
received a company-specific rate; (3) if the exporter is not a firm 
covered in this review, or the original investigation, but the 
manufacturer is, the cash deposit rate will be that established for the 
manufacturer of the merchandise in the final results of this review, or 
the LTFV investigation; and (4) if neither the exporter nor the 
manufacturer is a firm covered in this review or any previous reviews, 
the cash deposit rate will be 49.25 percent, the ``all others'' rate 
established in the LTFV investigation (58 FR 44165, August 19, 1993).
    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 351.402(f) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    We are issuing and publishing this notice in accordance with 
sections 751(a)(1) and 777(i)(1) of the Tariff Act.


[[Page 58018]]


    Dated: September, 3, 2002.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 02-23388 Filed 9-12-02; 8:45 am]
BILLING CODE 3510-DS-S