[Federal Register Volume 67, Number 192 (Thursday, October 3, 2002)]
[Notices]
[Pages 62121-62123]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24794]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-821-815]


Notice of the Final Determination Sales at Less Than Fair Value 
and Critical Circumstances: Certain Cold-Rolled Carbon Steel Flat 
Products From the Russian Federation

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

ACTION: Notice of the final determination of sales at less than fair 
value.

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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 Russian Federation.

EFFECTIVE DATE: October 3, 2002.

FOR FURTHER INFORMATION CONTACT: Amy Ryan at 202-482-0961 or James C. 
Doyle at 202-482-0159, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue, 
NW., Washington, DC 20230.

The Applicable Statute

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as amended (``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. In addition, unless otherwise 
indicated, all citations to the Department's regulations are 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 Russian Federation (``Russia'') 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.

Background

    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 Russian 
Federation, 67 FR 31241 (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., Nucor Corporation, Steel 
Dynamics, Inc., United States Steel Corporation, WCI Steel, Inc., 
and Weirton Steel Corporation (collectively, the petitioners).
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    We gave interested parties an opportunity to comment on the 
preliminary determination. No case or rebuttal briefs were submitted.

[[Page 62122]]

    On May 13, 2002, the Russian Ministry of Economic Development and 
Trade submitted to the Department a proposed draft of a suspension 
agreement between them and the Department. On May 30, 2002, the Russian 
government requested an extension of the final determination in order 
to have time to negotiate an agreement to suspend this investigation. 
On August 23, 2002, in Washington, DC, representatives from three of 
Russia's cold-rolled producers initialed the agreed upon suspension 
agreement. Please see IA's Web site at http://www.ia.ita.doc.gov/download/russia-cold-rolled/ip-ltr-draft-cold-rolled-susp-agreement for 
the initialed draft agreement and cover letter sent to the interested 
parties. We invited comments on the proposed agreement and received 
them from petitioners on September 16, 2002.
    On September 23, 2002, the final suspension agreement was signed by 
JSC Severstal, Novolipetsk Iron and Steel Corporation and JSC 
Magnitogorsk Iron and Steel Works, (collectively the ``Russian cold-
rolled steel producers'') and the Department, the effective date being 
September 23, 2002. On September 24, 2002, on behalf of the Russian 
cold-rolled steel producers, we received a request for continuation of 
the investigation. Pursuant to this request, we have continued and 
completed the investigation in accordance with section 734(g) of the 
Act.

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 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 Russia. 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 
Russia. Therefore, we have not changed our determination and continue 
to find that critical circumstances exist for imports of cold-rolled 
steel from Russia.

Nonmarket Economy Country Status

    The Department has treated Russia 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; Solid Fertilizer 
Grade Ammonium Nitrate from the Russian Federation, 65 FR 42669 (July 
11, 2000); Notice of Final Determination of Sales at Less Than Fair 
Value: Hot-Rolled Flat-Rolled Carbon-Quality Steel Products from the 
Russian Federation, 64 FR 38626 (July 19, 1999); Notice of Final 
Determination of Sales at Less Than Fair Value: Certain Cut-to-Length 
Carbon Steel Plate from the Russian Federation, 62 FR 61787. No party 
has sought revocation of the NME status in this investigation.\2\ 
Therefore, in accordance with section 771(1)(C) of the Act, we will 
continue to

[[Page 62123]]

treat Russia as a NME country for purposes of this investigation.
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    \2\ We note that effective April 1, 2002, Russia is considered a 
market economy country. However, because the POI took place before 
this date, Russia continues to be considered an NME for this 
investigation. See Memorandum From Albert Hsu, Barbara Mayer and 
Christopher Smith through Jeff May to Faryar Shirzad: Inquiry into 
the Status of the Russian Federation as a Non-Market Economy Country 
Under the U.S. Antidumping Law (June 6, 2002) at Import 
Administration's Web site, http://www.ia.ita.doc.gov/download/russia-nme-status/russia-nme-decision-final.html.
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Russia-Wide Rate

    In a NME proceeding, the Department presumes that all companies 
within the country are subject to governmental control, and assigns 
separate rates only if the respondent demonstrates the absence of both 
de jure and de facto governmental control over export activities. See 
Notice of Final Determination of Sales at Less Than Fair Value: 
Bicycles From the People's Republic of China, 61 FR 19026, 19027 (April 
30, 1996). As no party requested that it be assigned a separate rate in 
this investigation, there was no demonstration of eligibility for a 
separate rate under the separate rates criteria. Accordingly, we 
determine that all exporters are subject to the Russia-wide rate.

Analysis of Comments Received

    As noted above, there were no case or rebuttal briefs submitted in 
this investigation, nor was there a hearing. Additionally, we received 
no comments from interested parties in response to our preliminary 
results.

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.
    As explained in the Preliminary Determination, neither Severstal or 
the Government of Russia (``GOR'') responded to the Department's 
questionnaire. Without a response to the Department's antidumping 
questionnaire, we have no foundation for determining a margin. As done 
in the preliminary determination in this investigation, the Department 
has applied facts available (``FA''), in accordance with section 
776(a)(2) of the Act, in making our final antidumping determination. 
See Preliminary Determination for a further discussion of this issue.

Selection of Adverse FA

    In selecting from among the facts otherwise available, section 
776(b) of the Act provides that if the Department finds the respondent 
``has failed to cooperate by not acting to the best of its ability to 
comply with a request for information * * *{the Department{time}  may 
use an inference that is adverse to the interests of that party in 
selecting from among the facts otherwise available.'' See, e.g., 
Certain Welded Carbon Steel Pipes and Tubes From Thailand: Final 
Results of Antidumping Duty Administrative Review, 62 FR 53808, 53819-
20 (October 16, 1997). Severstal did not attempt to respond to the 
Department's questionnaire, but stated its intention of not responding 
to the questionnaire at all. See Memorandum to The File from Juanita H. 
Chen: Failure of Respondent JSC Severstal to Respond to Questionnaire 
(February 4, 2002). As noted above, the GOR also did not respond at all 
to the Department's questionnaire. Because the Department has 
determined that both Severstal and the GOR failed to cooperate to the 
best of their abilities, we are applying an adverse inference pursuant 
to section 776(b) of the Act. As adverse FA, we have applied the margin 
from initiation (i.e., the highest margin based on the amended 
petition), which is 137.33 percent, as the Russia-wide rate. See AD 
Initiation Checklist (October 18, 2001). Pursuant to section 776(c) of 
the Act, the Department has corroborated the 137.33 percent margin from 
initiation to the extent practicable. See Total Facts Available 
Corroboration Memorandum (April 26, 2002). This Russia-wide rate 
applies to all entries of subject merchandise. See Preliminary 
Determination for a further discussion of this issue.

Termination of Suspension of Liquidation

    On September 23, 2002, the Department signed a suspension agreement 
with the Russian cold-rolled steel producers. Therefore, we will 
instruct Customs to terminate the suspension of liquidation of all 
entries of hot-rolled steel from Russia. Any cash deposits of entries 
of hot-rolled steel from Russia shall be refunded and any bonds shall 
be released.
    On September 24, 2002, on behalf of the Russian cold-rolled steel 
producers, we received a request for continuation of the investigation. 
Pursuant to this request, we have continued and completed the 
investigation in accordance with section 734(g) of the Act. We have 
found the following weight-averaged dumping margin exists for the 
period January 1, 2001 through June 30, 2001:

------------------------------------------------------------------------
                                                                Margin
                   Manufacturer/exporter                      (percent)
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Russia-Wide Rate...........................................       137.33
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ITC Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (``ITC'') of our determination. Because 
our final determination is affirmative, the ITC will, within 45 days, 
determine whether these imports are materially injuring, or threatening 
material injury to, the U.S. industry. If the ITC determines that 
material injury, or threat of material injury does not exist, the 
Agreement will have no force of effect, and the investigation shall be 
terminated. See Section 734(f)(3)(A) of the Act. If the ITC determines 
that such injury does exist, the Agreement shall remain in force but 
the Department shall not issue an antidumping order so long as (1) the 
Agreement remains in force, (2) the Agreement continues to meet the 
requirements of subsections (d) and (l) of the Act, and the parties to 
the Agreement carry out their obligations under the Agreement in 
accordance with its terms. See section 734(f)(3)(B) of the Act.

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 24, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 02-24794 Filed 10-2-02; 8:45 am]
BILLING CODE 3510-DS-P