[Federal Register Volume 67, Number 192 (Thursday, October 3, 2002)]
[Notices]
[Pages 62107-62111]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24788]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-872]


Notice of Final Determination of Sales at Less Than Fair Value: 
Certain Cold-Rolled Carbon Steel Flat Products From the People's 
Republic of China

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

ACTION: Notice of the final determination of the less-than-fair-value 
investigation of certain cold-rolled carbon steel flat products from 
the People's Republic of China.

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SUMMARY: The Department of Commerce is issuing its final determination 
of the less-than-fair-value investigation of certain cold-rolled carbon 
steel flat products from the People's Republic of China.

EFFECTIVE DATE: October 3, 2002.

FOR FURTHER INFORMATION CONTACT: Carrie Blozy at (202) 482-0409 or 
James Doyle at (202) 482-0159, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230.

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

[[Page 62108]]

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 (2001).

Final Determination

    We determine that certain cold-rolled carbon steel flat products 
(cold rolled steel) from the People's Republic of China (the PRC) are 
being sold, 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.

Case History

    On May 9, 2002, the Department published its preliminary 
determination in the above-captioned antidumping duty investigation. 
See Notice of Preliminary Determination of Sales at Less Than Fair 
Value: Certain Cold-Rolled Carbon Steel Flat Products From the People's 
Republic of China, 67 FR 31235 (May 9, 2002) (Preliminary 
Determination). This investigation was initiated on October 18, 
2001.\1\ 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).
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    \1\ The petitioners in this investigation are Bethlehem Steel 
Corporation, LTV Steel Company, Inc., National Steel Corp., Nucor 
Corporation, Steel Dynamics, Inc., United States Steel Corporation, 
WCI Steel, Inc., and Weirton Steel Corporation (collectively, the 
petitioners).
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    Since the preliminary determination, the following events have 
occurred. On May 7, 2002, pursuant to 19 CFR 351.224(c)(1) and (2), 
Pangang Economic and Trading Group Corporation (Pangang) requested that 
the Department correct alleged ministerial errors in its preliminary 
calculations of the margin for Pangang. Of the three errors alleged, 
the Department determined that only one of them constituted a 
ministerial error. See Memorandum to Edward Yang: Antidumping Duty 
Investigation of Certain Cold-Rolled Carbon Steel Flat Products from 
the People's Republic of China: Analysis of Allegation of Ministerial 
Errors, dated May 17, 2002 (Ministerial Error Memo). Specifically, the 
Department found that it had overstated selling, general, and 
administrative expenses (SG&A) by including depreciation. See id. at 2. 
However, the Department did not find that the error constituted a 
significant ministerial error as defined under section 351.224(g), and 
stated that the error would be addressed in the final determination. 
See id. at 3.
    On May 13, 2002, we received a joint request from the Chinese 
government and Pangang proposing a suspension agreement in accordance 
with the Department's regulations at 19 CFR 351.208. On June 26, 2002, 
the Department met with representatives of Pangang to discuss the 
proposed suspension agreement.
    On May 20, 2002, Pangang submitted certain corrections and 
clarifications to Pangang's U.S. sales and factors of production data. 
The Department conducted a verification of Pangang's sales and factors 
of production data at Pangang's headquarters in Panzhihua, PRC, from 
May 27, 2002 through May 31, 2002. See Verification of Sales and 
Factors of Production for Pangang Economic and Trading Group 
Corporation (``Pangang'') in the Antidumping Duty Investigation of 
Certain Cold-Rolled Carbon Steel Flat Products from the People's 
Republic of China (``PRC'') (June 26, 2002).
    On May 30, 2002, Pangang requested that the Department postpone its 
final determination in the investigation until 135 days after the date 
of the publication of the preliminary determination in the Federal 
Register. In addition, in accordance with 19 CFR 351.210(e)(2) Pangang 
requested that the Department extend the application of the provisional 
measures prescribed under section 733(d) of the Act to not more than 
six months. On June 20, 2002, the Department postponed the final 
determination until September 23, 2002. See Notice of Postponement of 
Final Antidumping Duty Determination: Certain Cold-Rolled Carbon Steel 
Flat Products From the People's Republic of China, 67 FR 41954 (June 
20, 2002).
    On July 2, 2002, Pangang submitted comments and publicly available 
information from surrogate countries for the Department's consideration 
when valuing factors of production.
    We gave interested parties an opportunity to comment on the 
preliminary determination. On July 12, 2002, petitioners and Pangang 
submitted case briefs with respect to the sales and factors of 
production verification and the Department's Preliminary Determination. 
Petitioners and Pangang submitted rebuttal briefs on July 18, 2002.

Scope of Investigation

    With respect to scope, in the preliminary LTFV determinations in 
all of the cold-rolled steel investigation cases, the Department 
preliminarily excluded certain porcelain enameling steel from the scope 
of these investigations. See Scope Appendix to the Notice of 
Preliminary Determination of Sales at Less Than Fair Value: Certain 
Cold-Rolled Carbon Steel Flat Products from Argentina, 67 FR 31181 (May 
9, 2002) (Scope Appendix--Argentina Preliminary LTFV Determination:). 
On June 13, 2002, we issued a preliminary decision on the remaining 75 
scope exclusion requests filed in a number of the on-going cold-rolled 
steel investigations (see the June 13, 2002, memorandum regarding 
``Preliminary Scope Rulings in the Antidumping Investigations on 
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, and in the Countervailing Duty Investigations of Certain 
Cold-Rolled Carbon Steel Flat Products from Argentina, Brazil, France, 
and Korea'' (Preliminary Scope Rulings), which is on file in the 
Department's Central Records Unit (CRU), room B-099 of the main 
Department building. We gave parties until June 20, 2002, to comment on 
the preliminary scope rulings, and until June 27, 2002, to submit 
rebuttal comments. We received comments and/or rebuttal comments from 
petitioners and respondents from various countries subject to these 
investigations of cold-rolled steel. In addition, on June 13, 2002, 
North American Metals Company (an interested party in the Japanese 
proceeding) filed a request that the Department issue a ``correction'' 
for an already excluded product. On July 8, 2002, the petitioners 
objected to this request.
    At the request of multiple respondents, the Department held a 
public hearing with respect to the Preliminary Scope Rulings on July 1, 
2002. The Department's final decisions on the scope exclusion requests 
are addressed in the following paragraph.
    For purposes of this investigation, the products covered are 
certain cold-rolled (cold-reduced) flat-rolled carbon-quality steel 
products. A full description of the scope of this investigation is 
contained in ``Appendix I'' attached to the Notice of Correction to 
Final Determination of Sales at Less Than Fair Value: Certain

[[Page 62109]]

Cold-Rolled Carbon Steel Flat Products from Australia, 67 FR 52934 
(Aug. 14, 2002). For a complete discussion of the comments received on 
the Preliminary Scope Rulings, see the memorandum regarding ``Issues 
and Decision Memorandum for the Final Scope Rulings in the Antidumping 
Duty Investigations on 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, and in the Countervailing Duty 
Investigations of Certain Cold-Rolled Carbon Steel Flat Products from 
Argentina, Brazil, France, and Korea,'' dated July 10, 2002, which is 
on file in the CRU.

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).

Final Critical Circumstances Determination

    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 the PRC. 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). We received no comments regarding our preliminary finding that 
critical circumstances exist for imports of cold-rolled steel from the 
PRC and the final dumping margins are sufficient to impute importer 
knowledge of dumping. Therefore, we have not changed our determination 
and continue to find that critical circumstances exist for imports of 
cold-rolled steel from the PRC.

Nonmarket Economy Country Status

    The Department has treated the PRC 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: Certain Circular 
Welded Carbon-Quality Steel Pipe from the People's Republic of China, 
67 FR 36570, 36571 (May 24, 2002); Notice of Final Determination of 
Sales at Less Than Fair Value: Structural Steel Beams from the People's 
Republic of China, 67 FR 35479, 35480 (May 20, 2002); Notice of Final 
Determination of Sales at Less Than Fair Value: Folding Metal Tables 
and Chairs from the People's Republic of China, 67 FR 20090, 20091 
(April 24, 2002). 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. 
Therefore, in accordance with section 771(18)(C) of the Act, we will 
continue to treat the PRC as a NME country for purposes of this 
investigation.

Separate Rates

    In our preliminary determination, we found that Pangang had met the 
criteria for the application of a separate antidumping duty rate. For a 
more detailed discussion, see the Department's Preliminary 
Determination.

PRC-Wide Rate and Adverse Facts Available

    In NME cases, it is the Department's policy to assume that all 
exporters located in the NME comprise a single exporter under common 
control, the ``NME entity.'' This presumption can be rebutted. The 
Department assigns a single NME rate to the NME entity unless an 
exporter can demonstrate eligibility for a separate rate. As explained 
above, only Pangang received a separate rate. For the reasons set forth 
in the Preliminary Determination, we continue to find that the use of 
adverse facts available for the calculation of the PRC-wide rate is 
appropriate. See the Preliminary Determination for further discussion 
of this topic.
    In our Preliminary Determination, as adverse facts available, we 
used the highest rate calculated for a respondent, i.e., the rate 
calculated for Pangang. As explained below, in our final determination 
we have applied as adverse facts available for Pangang the calculated 
margin for Pangang from the Preliminary Determination, adjusted for a 
clerical error and certain corrected data (105.35 percent). For our 
final determination, we have also applied this rate to the PRC-wide 
entity.

Verification

    As provided in section 782(i) of the Act, we verified the 
information submitted by Pangang 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 Pangang.

Analysis of Comments Received

    As noted below, the Department has determined to apply total 
adverse facts available for the one participating respondent, Pangang, 
and to the PRC-wide entity. The Department finds it unnecessary to 
address the comments raised by the parties that do not pertain to the 
Department's total adverse facts available decision.
    The Department recognizes that the respondent, Pangang, raised the 
following issues: (1) U.S. Sales through Third Parties; (2) Self-
Produced Energy and Gas Factors; (3) Valuation of Oxygen, Nitrogen, and 
Argon; (4) Valuation of Electricity; (5) Valuation of Iron Ore; (6) 
Valuation of Aluminum; (7) Valuation of Steam Coal; (8) Valuation of 
SG&A, Interest and Profit; (9); Inland Freight Distance; and (10) SG&A 
Ratio Clerical Errors. However, based on our determination to use total 
adverse facts available, the Department finds it unnecessary to address 
these comments.
    The Department recognizes that petitioners raised the following 
issues: (1) U.S. Sales through Third Parties; (2) Valuation of Oxygen, 
Nitrogen, and Argon; (3) Valuation of Hydrogen Gas; (4) Treatment of 
Defective Hot-Rolled Sheets; (5) Valuation of Iron Ore; (6) Valuation 
of Aluminum; (7) Valuation of Electricity; (8) Valuation of Coal Used 
to Produce Coke; (9) Valuation of Water; (10) Valuation of Recycled 
Iron Angle; and (11) Valuation of SG&A, Interest and Profit. However, 
based on our determination to use total adverse facts available, the 
Department finds it unnecessary to address these comments.
    All issues raised in the case and rebuttal briefs to this 
investigation pertaining to total adverse facts available are addressed 
in the Issues and Decision Memorandum from Joseph A. Spetrini, Deputy 
Assistant Secretary, to Faryar Shirzad, Assistant Secretary (September 
23, 2002) (Decision Memorandum), which is hereby adopted by this 
notice. A list of the issues which parties have raised and to which we 
have responded, and other issues addressed, is attached to this notice 
as an Appendix. Parties can find a complete discussion of all issues

[[Page 62110]]

raised in this investigation and the corresponding recommendations in 
the Decision Memorandum, a public memorandum which is on file at the 
U.S. Department of Commerce, in the Central Records Unit, in room B-
099. In addition, a complete version of the Decision Memorandum can be 
accessed directly on the Web at http://ia.ita.doc.gov. The paper copy 
and electronic version of the Decision Memorandum are identical in 
content.

Changes Since the Preliminary Determination

    We have adjusted the calculation methodology used in the 
Preliminary Determination to correct for a clerical error and certain 
corrected data. See Analysis for the Final Determination of Cold-Rolled 
Carbon Steel Flat Products from the People's Republic of China: Pangang 
Group International Economic & Trading Corp., dated September 23, 2002.

Use of 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.
    During verification the Department discovered that Pangang failed 
to report a significant percentage of its U.S. sales volume of subject 
merchandise during the POI. This sales volume accounts for a 
substantial percentage of Pangang's U.S. sales volume of subject 
merchandise during the POI. Thus, we find that Pangang withheld 
information requested by the Department, and have applied facts 
available pursuant to section 776(a)(2) of the Act. Section 776(b) of 
the Act provides that, if the Department finds that an interested party 
``has failed to cooperate by not acting to the best of its ability to 
comply with a request for information,'' the Department may draw an 
inference that is adverse to the interests of that party in selecting 
from among the facts otherwise available. In light of the circumstances 
surrounding Pangang's failure to report a substantial portion of its 
U.S. sales volume, we determine that Pangang has failed to cooperate to 
the best of its ability and have applied adverse facts available to 
Pangang. For a complete discussion of our analysis, see the Decision 
Memorandum and memorandum Determination of Facts Available for Pangang 
Economic and Trading Group Corporation in Certain Cold-Rolled Carbon 
Steel Flat Products from the People's Republic of China, dated 
September 23, 2002.

Suspension Agreement

    As discussed above under ``Background,'' on May 13, 2002, we 
received a joint request from the Chinese government and Pangang 
proposing a suspension agreement in accordance with the Department's 
regulations at 19 CFR 351.208. On June 26, 2002, the Department met 
with representatives of Pangang to discuss the proposed suspension 
agreement. No agreement was concluded.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we are 
directing the U.S. Customs Service (Customs) to continue to suspend 
liquidation of all imports of subject merchandise entered, or withdrawn 
from warehouse, for consumption on or after 90 days prior to the May 9, 
2002 (date the date of publication of the Preliminary Determination in 
the Federal Register). We will instruct Customs to continue to require 
a cash deposit or the posting of a bond equal to the weighted-average 
amount by which the NV exceeds the EP, as indicated below. These 
suspension of liquidation instructions will remain in effect until 
further notice. The weighted-average dumping margins are as follows:

                 Cold-Rolled Carbon Steel Flat Products
------------------------------------------------------------------------
                                                              Weighted-
                                                               average
               Producer/manufacturer/exporter                   margin
                                                              (percent)
------------------------------------------------------------------------
Pangang....................................................       105.35
PRC-Wide Rate..............................................       105.35
------------------------------------------------------------------------

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.

Notification Regarding APO

    This notice also serves as a 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. Timely 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.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: September 23, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix I

Comment 1: Application of Adverse Facts Available
Comment 2: U.S. Sales through Third Parties
Comment 3: Self-Produced Energy and Gas Factors
Comment 4: Valuation of Oxygen, Nitrogen, and Argon
Comment 5: Valuation of Electricity
Comment 6: Valuation of Hydrogen Gas
Comment 7: Treatment of Defective Hot-Rolled Sheets
Comment 8: Valuation of Iron Ore
Comment 9: Valuation of Aluminum
Comment 10: Valuation of Coal Used to Produce Coke
Comment 11: Valuation of Steam Coal
Comment 12: Valuation of Water
Comment 13: Valuation of Recycled Iron Angle
Comment 14: Valuation of SG&A, Interest and Profit
Comment 15: Inland Freight Distance

[[Page 62111]]

Comment 16: SG&A Ratio Clerical Errors

[FR Doc. 02-24788 Filed 10-2-02; 8:45 am]
BILLING CODE 3510-DS-P