[Federal Register Volume 67, Number 182 (Thursday, September 19, 2002)]
[Notices]
[Pages 59050-59051]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-23821]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-791-815]


Notice of Amended Preliminary Determination of Sales at Less Than 
Fair Value; Ferrovanadium from the Republic of South Africa

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

ACTION: Notice of Amended Preliminary Determination of Sales at Less 
Than Fair Value.

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EFFECTIVE DATE: September 19, 2002.

FOR FURTHER INFORMATION CONTACT: Crystal Crittenden or Mark Manning at 
(202) 482-0989 or (202) 482-5253, respectively; AD/CVD Enforcement 
Office IV, Group II, Import Administration, Room 1870, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230.

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 (the Department) 
regulations refer to the regulations codified at 19 CFR part 351 (April 
2002).

Background

    On June 25, 2002, the Department preliminarily determined that 
imports of ferrovanadium from the Republic of South Africa (South 
Africa) are being, or are likely to be, sold in the United States at 
less than fair value (LTFV), as provided in section 733 of the Act. See 
Notice of Preliminary Determination of Sales at Less Than Fair Value 
and Postponement of Final Determination: Ferrovanadium from the 
Republic of South Africa, 67 FR 45083 (July 8, 2002) (Preliminary 
Determination). On July 9, 2002, one of the respondents, Xstrata South 
Africa (Proprietary) Limited (Xstrata), timely filed an allegation that 
the Department made several ministerial errors in its preliminary 
determination. In addition, during July 2002, Xstrata and Highveld 
Steel and Vanadium Corporation, Ltd (Highveld), the other respondent in 
this investigation, separately submitted letters declining the 
Department's request to conduct verification.

Scope of The Investigation

    The scope of this investigation covers all ferrovanadium regardless 
of grade, chemistry, form, shape, or size. Ferrovanadium is an alloy of 
iron and vanadium that is used chiefly as an additive in the 
manufacture of steel. The merchandise is commercially and 
scientifically identified as vanadium. It specifically excludes 
vanadium additives other than ferrovanadium, such as nitride vanadium, 
vanadium-aluminum master alloys, vanadium chemicals, vanadium oxides, 
vanadium waste and scrap, and vanadium-bearing raw materials such as 
slag, boiler residues and fly ash. Merchandise under the following 
Harmonized Tariff Schedule of the United States (HTSUS) item numbers 
2850.00.2000, 8112.40.3000, and 8112.40.6000 are specifically excluded. 
Ferrovanadium is classified under HTSUS item number 7202.92.00. 
Although the HTSUS item number is provided for convenience and Customs 
purposes, the Department's written description of the scope of this 
investigation remains dispositive.

Allegation of Ministerial Errors

    In its July 9, 2002 submission, Xstrata alleged that the Department 
(1) used the wrong currency exchange rates to convert expenses reported 
in foreign currencies in the U.S. sales file into U.S. dollars, (2) 
included the wrong selling expenses in constructed value (CV), (3) 
failed to deduct imputed credit expenses from CV, and (4) erred by not 
granting Xstrata a constructed export price (CEP) offset.
    A ministerial error is defined under 19 CFR 351.224(f) as ``an 
error in addition, subtraction, or other arithmetic function, clerical 
error resulting from inaccurate copying, duplication, or the like, and 
any other similar type of unintentional error which the Secretary 
considers ministerial.'' In addition, 19 CFR 351.224(e) notes that 
``the Secretary will analyze any comments received and, if appropriate, 
correct any significant ministerial error by amending the preliminary 
determination....'' Ministerial errors are considered to be 
``significant'' if, in the aggregate, their correction would result in 
a change of at least five absolute percentage points in, but not less 
than 25 percent of, the weighted-average dumping margin calculated in 
the original (erroneous) preliminary determination; or would result in 
a difference between a weighted-average dumping margin of zero (or de 
minimis) and a weighted-

[[Page 59051]]

average dumping margin of greater than de minimis or vice versa (see 19 
CFR 351.224(e)).
    After reviewing Xstrata's allegations, we have determined, in 
accordance with 19 CFR 351.224(e), that the Preliminary Determination 
was based on several ministerial errors which are considered 
significant under the Department's regulations. First, we agree with 
Xstrata that the Department failed to merge the currency exchange rate 
database and the U.S. sales database by the date of sale. Because of 
this error, we used the wrong currency exchange rates to convert U.S. 
sales adjustments reported in foreign currencies into U.S. dollars. 
Second, we agree, in part, with Xstrata's allegation regarding the 
selling expenses included in CV. Specifically, we agree that we 
included certain movement expenses in CV, rather than selling expenses. 
See the Memorandum from Holly A. Kuga to Bernard T. Carreau regarding 
the ministerial error allegations with respect to our preliminary 
determination in the instant investigation, dated concurrently with 
this notice (Allegation of Ministerial Errors Memorandum), a public 
version of which is on file in room B-099 of the Department of Commerce 
Herbert C. Hoover building.
    The alleged ministerial errors with which we do not agree concern 
Xstrata's assertion that the Department erred by including the wrong 
selling expenses in CV, failing to deduct imputed credit expenses from 
CV and not granting Xstrata a CEP offset. As stated in the Allegation 
of Ministerial Errors Memorandum, the Department determined that these 
allegations are not ministerial in nature, but rather involve 
methodological issues. See the Allegation of Ministerial Errors 
Memorandum for a detailed description of the ministerial error 
allegations and a detailed analysis thereof.
    Therefore, in accordance with 19 CFR 351.224(e), we are amending 
the preliminary determination of the antidumping duty investigation of 
ferrovanadium from South Africa to reflect the correction of 
significant ministerial errors made in the margin calculation for 
Xstrata. Xstrata's revised weighted-average dumping margin is listed in 
the ``Amended Preliminary Determination'' section, below. We have also 
revised the all others rate to reflect the change in Xstrata's margin.

Amended Preliminary Determination

    We are amending the preliminary determination of the antidumping 
duty investigation of ferrovanadium from South Africa to reflect the 
correction of the above-cited ministerial errors. The revised 
preliminary weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                Manufacturer/exporter                   Margin (percent)
------------------------------------------------------------------------
Highveld Steel and [chyph]Vanadium Corporation                     45.58
 [chyph]Ltd..........................................
Xstrata South Africa (Proprietary) Limited...........              19.42
All Others...........................................              33.39
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(d) of the Act, we are directing the 
United States Customs Service (Customs) to continue suspending 
liquidation on all imports of subject merchandise from South Africa. 
Customs shall require a cash deposit or the posting of a bond equal to 
the weighted-average amount by which normal value exceeds the export 
price as indicated in the chart above. These suspension-of-liquidation 
instructions will remain in effect until further notice.

International Trade Commission Notification

    In accordance with section 733(f) of the Act, we have notified the 
International Trade Commission of our amended preliminary 
determination.

Public Comment

    Since Highveld and Xstrata have declined verification, the 
Department has assigned the following schedule for the submission of 
case briefs for this investigation: case briefs must be submitted to 
the Department no later than seven days after the date of the 
publication of this notice. Rebuttal briefs must be filed five days 
from the deadline for case briefs. A list of authorities used, a table 
of contents, an electronic copy of the public version on diskette, and 
an executive summary of issues should accompany any briefs submitted to 
the Department. Executive summaries should be limited to five pages 
total, including footnotes.
    The deadline for requesting a hearing has passed. The Department 
received no requests for a hearing, therefore, no hearing will be held 
in this investigation.
    We will make our final determination no later than November 20, 
2002.
    This determination is issued and published in accordance with 
sections 733(f) and 777(i) of the Act.

    Dated: September 12, 2002.
Richard W. Moreland,
Acting Assistant Secretary for Import Administration.
[FR Doc. 02-23821 Filed 9-18-02; 8:45 am]
BILLING CODE 3510-DS-S