[Federal Register Volume 68, Number 97 (Tuesday, May 20, 2003)]
[Notices]
[Pages 27529-27530]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-12638]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-122-822]


Certain Corrosion-Resistant Carbon Steel Flat Products from 
Canada; Amended Final Results of Antidumping Duty Administrative Review 
in Accordance with North American Free Trade Agreement Binational Panel 
Decision

AGENCY: Import Administration, International Trade Administration, U.S. 
Department of Commerce.
SUMMARY: On September 13, 1999, the North American Free Trade Agreement 
(NAFTA) Panel affirmed the Department of Commerce's (the Department) 
second remand determination arising from the administrative review of 
the antidumping duty order on certain corrosion-resistant carbon steel 
flat products from Canada. See North American Free Trade Agreement 
Article 1904 Binational Panel Review, USA-97-1904-3, September 13, 
1999. As a result of this final and conclusive Binational Panel Review 
decision, we are amending the final results of review in this matter 
and will instruct the U.S. Bureau of Customs and Border Protection 
(BCBP) to liquidate entries subject to these amended final results.

EFFECTIVE DATE: May 20, 2003.

FOR FURTHER INFORMATION CONTACT: Mark Hoadley or Julio Fernandez, 
Antidumping/Countervailing Duty Enforcement, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, N.W., Washington D.C. 20230; telephone 
(202) 482-3148 and (202) 482-0961, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On August 18, 1993, the Department issued antidumping duty orders 
on certain corrosion-resistant carbon steel flat products and certain 
cut-to-length carbon steel plate from Canada. See Antidumping Duty 
Orders: Certain Corrosion-Resistant Carbon Steel Flat Products and 
Certain Cut-to-Length Carbon Steel Plate From Canada, 58 FR 44162 
(August 19, 1993). On April 15, 1997, the Department issued its final 
results of the second administrative review of certain corrosion-
resistant carbon steel flat products for three exporters, Dofasco, Inc. 
(Dofasco), Continuous Colour Coat (CCC), and Stelco, Inc. (Stelco), and 
certain cut-to-length carbon steel plate for two exporters, Algoma Inc. 
and Stelco, covering the period of August 1, 1994 through July 31, 
1995. See Certain Corrosion-Resistant Carbon Steel Flat Products and 
Certain Cut-to-Length Carbon Steel Plate From Canada; Final Results of 
Antidumping Duty Administrative Reviews, 62 FR 18448 (April 15, 1997) 
(Final Results).
    At the request of Stelco, a NAFTA Binational Panel (the Panel) was 
established, and, on June 4, 1998, the Panel remanded the review of the 
final results on certain corrosion-resistant carbon steel flat products 
to the Department. The Panel remanded the review for the Department to 
reconsider, among other issues, its valuation of coating services 
performed by Stelco's affiliate, Baycoat Partnership (Baycoat). The 
Panel instructed the Department to reconsider Stelco's costs for 
coating services under Sec.  773(f)(1)(A) of the Tariff Act of 1930, as 
amended (the Act), in conjunction with Sec.  351.407(b)of the 
Department's regulations. At the same time, the Panel ruled that 
Sec. Sec.  773(f)(2) and (f)(3) of the Act were inapplicable. See NAFTA 
Binational Panel Decision of June 4, 1998 (Panel Decision I). The other 
two companies subject to the second administrative review of certain 
corrosion-resistant carbon steel flat products from Canada (Dofasco and 
CCC) were not involved in the Second Remand Determination.
    On September 3, 1998, in accordance with the Panel's remand order, 
the Department issued its first remand determination in this matter. 
See Final Remand Determination: NAFTA, Article 1904 Binational Panel 
Review, USA-97-1904-3 (September 3, 1998). Stelco challenged the 
Department's decision not to adjust the transfer price by its 
affiliate's return of profit. On January 29, 1999, the Panel remanded 
the review to the Department for the second time to reconsider the 
calculation of transfer price, and to take into account all evidence on 
the record. See NAFTA Binational Panel Decision of January 20, 1999 
(Panel Decision II). To ensure that the record contained all 
information necessary to make a final determination that would comply 
with the Panel's instructions, the Department reopened the record and 
verified the new information submitted by Stelco.
    On June 14, 1999, in accordance with the Panel's remand order, the 
Department issued its second remand determination in this matter. See 
Final Remand Determination: NAFTA, Article 1904 Binational Panel 
Review, USA-97-1904-3 (June 14, 1999) (Second Remand Determination). In 
this Second Remand Determination, the Department explained that there 
is a difference in Stelco's accounting records regarding Baycoat 
profits recorded and Baycoat profits remitted, as well as Baycoat 
profits on amounts charged to Stelco. Since profits remitted cannot be 
tied to any individual invoices, adjustments to transfer price cannot 
be made by profits remitted on individual sales. Baycoat profits, as 
recorded in Stelco's financial statements, may include profits on job 
orders performed for Baycoat's other owner, as well as other parties. 
Therefore, the Department made adjustments to the transfer price based 
on an allocated amount of the profits earned by Baycoat on Stelco job 
orders. The Department reallocated total per unit profit (Stelco's per-
unit profit, as derived by Stelco, multiplied by two), by multiplying 
it by the ratio of the value charged to Stelco by Baycoat (as it 
appears in Baycoat's records) to the total value produced by Baycoat. 
We allocated interest and general and administrative expenses (G&A) by 
class by multiplying the interest and G&A per net ton times two, and 
then multiplying the product by the ratio of total value of Baycoat 
sales to Stelco to Baycoat's total sales value. We subtracted allocated 
interest and G&A expenses from the cost per net ton, since Baycoat's 
interest and G&A are already included and accounted for in Stelco's 
overall interest and G&A expense calculation. On September 13, 1999, 
the Panel upheld the Department's Second Remand Determination.
    The Department faced a similar issue in the subsequent 
administrative review of certain corrosion-resistant carbon steel flat 
products from Canada, covering the period August 1, 1995 through July 
31, 1996, which was also remanded to the Department by the

[[Page 27530]]

Panel for issues similar to those in the Second Remand Determination. 
See Certain Corrosion-Resistant Carbon Steel Flat Products From Canada; 
Notice of Amended Final Results of Administrative Review in Accordance 
With North American Free Trade Agreement Panel Decision, 66 FR 52095 
(October 12, 2001).
    Therefore, as there is a final and conclusive Binational Panel 
Review decision in this action, we are amending our final results of 
review for the period August 1, 1994 through July 31, 1995. The revised 
weighted average margins are as follows:

------------------------------------------------------------------------
                                                       Weighted-average
               Manufacturer/exporter                    [chyph]margin
                                                           percent
------------------------------------------------------------------------
Stelco.............................................                 0.55
------------------------------------------------------------------------

    The Department shall determine, and the BCBP shall assess, 
antidumping duties on all appropriate entries. The Department will 
issue appraisement instructions directly to the BCBP.
    This notice is published in accordance with section 751(a)(1) of 
the Act (19 U.S.C. 1675(a)(1)), and 19 CFR 353.22.

    Dated: May 14, 2003.
Jeffrey May,
Acting Assistant Secretary for Import Administration.
[FR Doc. 03-12638 Filed 5-19-03; 8:45 am]
BILLING CODE 3510-DS-S