[Federal Register Volume 67, Number 192 (Thursday, October 3, 2002)]
[Notices]
[Pages 62116-62119]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24792]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-428-834]


Notice of Final Determination of Sales at Less Than Fair Value: 
Certain Cold Rolled Carbon Steel Flat Products From Germany

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

EFFECTIVE DATE: October 3, 2002.

FOR FURTHER INFORMATION CONTACT: Anya Naschak, Helen Kramer, or 
Abdelali Elouaradia at (202) 482-0405, (202) 482-6375, or (202) 482-
1374, respectively; Antidumping and Countervailing Duty Enforcement 
Group III, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to

[[Page 62117]]

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 (Department) regulations 
are to the regulations at 19 CFR part 351 (April 2001).

Final Determination

    We determine that certain cold-rolled carbon steel flat products 
(cold-rolled steel) from Germany are being, or are likely to be, sold 
in the United States at less than fair value (LFTV), as provided in 
section 735 of the Act. The estimated margins are shown in the 
``Suspension of Liquidation'' section of this notice.

Case History

    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). We published in the Federal Register the 
preliminary determination in this investigation on May 9, 2002. See 
Notice of Preliminary Determination of Sales at Not Less Than Fair 
Value and Postponement of Final Determination: Certain Cold Rolled 
Carbon Steel Flat Products from Germany, 67 FR 31212 (May 9, 2002) 
(Preliminary Determination). We published in the Federal Register the 
amended preliminary determination in this investigation on May 29, 
2002. See Notice of Amended Preliminary Determination of Sales at Less 
Than Fair Value: Certain Cold-Rolled Carbon Steel Flat Products from 
Germany, 67 FR 37385 (May 29, 2002) (Amended Preliminary 
Determination).
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    \1\ The petitioners in this investigation are Bethlehem Steel 
Corporation, LTV Steel Company, Inc., Nucor Corporation, Steel 
Dynamics, Inc., United States Steel Corporation, WCI Steel, Inc., 
and Weirton Steel Corporation (collectively, petitioners).
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    Since the publication of the Preliminary Determination the 
following events have occurred.
    With respect to scope, in the preliminary LTFV determinations in 
these 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 ``Scope of Investigation'' section below.
    On April 26, 2002, we issued additional supplemental questionnaires 
for sections B through E to the respondent, Thyssen Krupp Stahl AG 
(Thyssen). Thyssen submitted its response to the supplemental sections 
B through E questionnaires on May 13, 2002. The Department received 
requests for a public hearing on May 20, 2002, and June 10, 2002, from 
petitioners, and from Thyssen on June 5, 2002. All parties withdrew 
their requests for a public hearing.
    The Department verified sections A and B of Thyssen's responses 
from May 21, 2002, to May 25, 2002, at Thyssen's facilities in 
Duisburg, Germany; at Thyssen's trading company from May 27, 2002, to 
May 29, 2002, in Langenfeld, Germany, and at Thyssen's affiliated 
company on May 31, 2002, in Andernach, Germany. The Department also 
verified section D of Thyssen's response from May 27, 2002, to May 31, 
2002, at Thyssen's facilities. Additionally, the Department verified 
sections E of Thyssen's responses from June 10, 2002, to June 14, 2002, 
at Thyssen's affiliated companies in Detroit, Michigan, and verified 
section C of Thyssen's response from June 17, 2002, to June 21, 2002, 
at Thyssen's affiliated companies in Detroit, Michigan. See Memorandum 
to the File: ``Sales Verification of Sections A and B Questionnaire 
Responses Submitted by Thyssen Krupp Stahl AG,'' July 23, 2002, (Home 
Market Verification Report); Memorandum to the File: ``Sales 
Verification of Sections A and C Questionnaire Responses Submitted by 
Thyssen Krupp Stahl AG,'' July 23, 2002, (U.S. Verification Report); 
Memorandum to Neal Halper, Director, Office of Accounting: 
``Verification Report on the Cost of Production and Constructed 
Value,'' July 22, 2002, (Cost Verification Report); and Memorandum to 
Neal Halper, Director, Office of Accounting: ``Verification Report on 
the Further Manufacturing Cost Data,'' July 31, 2002, (Further 
Manufacturing Cost Verification Report). Public version of these and 
all other departmental memoranda referred to herein are on file in the 
CRU room B-099 of the main Commerce building.
    On August 9, 2002, the Department received case briefs from Thyssen 
and petitioners. On August 14, 2002, the Department received rebuttal 
briefs from Thyssen and petitioners. On August 26, 2002, the Department 
met with counsel for Thyssen. See Memorandum to the File regarding Ex-
Parte Meeting with Counsel for Respondent, dated August 26, 2002.

Period of Investigation

    The POI is July 1, 2000, through June 30, 2001. This period 
corresponds to the four most recent fiscal quarters prior to the filing 
of the petition in September 2001.

Scope of Investigation

    For purposes of this investigation, the products covered are 
certain cold-rolled (cold-reduced) flat-rolled carbon-quality steel 
products. For a full description of the scope of this investigation, as 
well as a complete discussion of all scope exclusion requests submitted 
in the context of the on-going cold-rolled steel investigations, please 
see the ``Scope Appendix'' attached to the Notice of Correction to 
Final Determination of

[[Page 62118]]

Sales at Less Than Fair Value: Certain Cold-Rolled Carbon Steel Flat 
Products from Australia, 67 FR 52934 (August 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.

Analysis of Comments Received

    All issues raised in the case briefs by parties to this proceeding 
and to which we have responded are listed in the Appendix to this 
notice and addressed in the Issues and Decision Memorandum for the 
Antidumping Investigation of Cold Rolled Carbon Steel Flat Products 
from Germany; Notice of Final Determination of Sales at Less Than Fair 
Value (Decision Memo), 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 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 World Wide Web at http://ia.ita.doc.gov/frn/index.html. The paper copy and electronic version of 
the Decision Memorandum are identical in content.

Changes Since the Preliminary Determination

    Based on our analysis of comments received and findings at 
verification, we have made certain changes in the margin calculation. 
These changes are noted in various sections of the Decision Memo, 
accessible in B-099 and on the World Wide Web at http://www.ia.ita.doc.gov/frn.

Use of Facts Available

    In the Preliminary Determination, the Department based the dumping 
margin for Thyssen in part on facts available pursuant to section 
776(b) of the Act. The use of facts available was warranted because 
Thyssen failed to supply the information the Department requested for 
downstream home market sales made by its affiliated trading companies/
service centers. Moreover, the Department found that Thyssen failed to 
cooperate by not acting to the best of its ability. As a result, 
pursuant to section 776(b) of the Act, the Department used an adverse 
inference in selecting from the facts available. Specifically, for the 
Preliminary Determination, the Department assigned Thyssen (by control 
number) the highest gross unit price and the lowest or highest 
adjustments--whichever is adverse--for sales in the home market within 
two widths corresponding to a portion of the widths sold by Thyssen's 
affiliated service centers (see Thyssen's March 19, 2002, supplemental 
section B response), and the revised amounts were used to calculate 
normal value (NV). For a complete explanation of both the selection and 
application of these facts available, see e.g. Preliminary 
Determination and Memorandum to the File, regarding the Preliminary 
Determination Analysis, dated April 26, 2002.
    In accordance with section 776 of the Act, we have determined that, 
due to Thyssen's continued refusal to supply the information requested 
by the Department on its home market downstream sales by its affiliates 
despite its ability to do so, and due to Thyssen's continued failure to 
act to the best of its ability, the use of adverse facts available is 
appropriate in this final determination. Accordingly, we have applied 
the highest gross unit price and the lowest or highest adjustments--
whichever is adverse--by control number to all sales in the home 
market. For a discussion of our determination with respect to these 
matters, see Decision Memo at Comment 1.

Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we are 
directing the Customs Service to continue to suspend all entries of 
cold-rolled steel from Germany, that are entered, or withdrawn from 
warehouse, for consumption on or after May 9, 2002, the date of 
publication of our preliminary determination. The Customs Service shall 
continue to require a cash deposit or the posting of a bond equal to 
the estimated amount by which the normal value exceeds the U.S. price 
as shown below. These instructions suspending liquidation will remain 
in effect until further notice.
    We determine that the following weighted-average dumping margin 
exists for the period July 1, 2000, through June 30, 2001:

------------------------------------------------------------------------
                                                                Margin
                   Exporter/manufacturer                      (percent)
------------------------------------------------------------------------
Thyssen Krupp Stahl AG.....................................        12.56
All Others.................................................        12.56
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International Trade Commission (ITC) Notification

    In accordance with section 735(d) of the Act, we have notified the 
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 cancelled. 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 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: Issues in Decision Memorandum

Comment 1: Use of Adverse Facts Available for Home Market Downstream 
Sales
Comment 2: Home Market Discounts
Comment 3: Inland Freight, Mill to Company Border--Movement Expense
Comment 4: Home Market Indirect Selling Expenses
Comment 5: Home Market Credit Expenses
Comment 6: Date of Sale
Comment 7: Use of Facts Available for Sales by the Budd Company
Comment 8: U.S. Sales Clerical Errors
Comment 9: U.S. Credit and Inventory Carrying Costs
Comment 10: U.S. Indirect Selling Expense
Comment 11: Setting Negative Margins to Zero in the Calculation of 
the Dumping Margin
Comment 12: Clerical Corrections in the Home Market and U.S. Sales 
and Cost Verification Reports
Comment 13: Slabs Supplied by a TKS affiliate
Comment 14: Unreconciled Difference
Comment 15: Mill Edge Credit in the U.S. Market
Comment 16: General and Administrative Expense Ratio
Comment 17: Financial Expense Ratio
Comment 18: G&A Further Manufacturer
Comment 19: Depreciation of Machine Tools

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and Spare Parts

[FR Doc. 02-24792 Filed 10-2-02; 8:45 am]
BILLING CODE 3510-DS-P