[Federal Register Volume 69, Number 94 (Friday, May 14, 2004)]
[Notices]
[Pages 26807-26808]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-11014]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-852]


Notice of Preliminary Results of Antidumping Duty Changed 
Circumstances Review: Structural Steel Beams from Japan

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

ACTION: Notice of Preliminary Results of Antidumping Duty Changed 
Circumstances Review.

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SUMMARY: On December 30, 2003, the Department of Commerce 
(``Department'') published a notice of initiation of changed 
circumstances review of the antidumping duty order on structural steel 
beams (``SSB'') from Japan to determine whether Yamato Steel Co., Ltd. 
(``Yamato Steel'') is a successor-in-interest company to Yamato Kogyo 
Co., Ltd. (``Yamato Kogyo'') for purposes of determining antidumping 
and countervailing duty liabilities. See Notice of Initiation of 
Antidumping Duty Changed Circumstances Review: Structural Steel Beams 
from Japan, 68 FR 75213 (December 30, 2003) (``Notice of Initiation''). 
We have preliminarily determined that Yamato Steel is the successor-in-
interest to Yamato Kogyo, for purposes of determining antidumping duty 
liability in this proceeding. Interested parties are invited to comment 
on these preliminary results.

EFFECTIVE DATE: May 14, 2004.

FOR FURTHER INFORMATION CONTACT: Melissa Blackledge or Howard Smith, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, N.W., 
Washington, D.C. 20230; telephone (202) 482-3518 or (202) 482-5193, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On June 19, 2000, the Department published in the Federal Register 
an antidumping duty order resulting from the Department's investigation 
of Structural Steel Beams from Japan. See Structural Steel Beams from 
Japan: Notice of Antidumping Duty Order, 65 FR 37960 (June 19, 2000). 
On November 17, 2003, Yamato Kogyo and Yamato Steel submitted a request 
that the Department initiate a changed circumstances review of the 
antidumping duty order on structural steel beams from Japan pursuant to 
Section 751(b)(1) of the Trade Act of 1930, as amended (``the Act''), 
and 19 CFR 351.22(c)(3)(ii) (2003). Yamato Steel claims to be the 
successor-in-interest to Yamato Kogyo, and, as such, claims that it is 
entitled to receive the same antidumping treatment as Yamato Kogyo. On 
December 19, 2003, the Department published a Notice of Initiation of 
Changed Circumstances Review, 68 FR 75213. On February 26, 2004, the 
Department issued a questionnaire requesting further details on the 
successorship of Yamato Steel. Yamato Kogyo's response was received by 
the Department on March 26, 2004.

Scope of the Review

    For purposes of this review, the products covered are doubly-
symmetric shapes, whether hot or cold-rolled, drawn, extruded, formed 
or finished, having at least one dimension of at least 80 mm (3.2 
inches or more), whether of carbon or alloy (other than stainless) 
steel, and whether or not drilled, punched, notched, painted, coated, 
or clad. These products (``Structural Steel Beams'') include, but are 
not limited to, wide-flange beams (``W'' shapes), bearing piles (``HP'' 
shapes), standard beams (``S'' or ``I'' shapes), and M-shapes.
    All products that meet the physical and metallurgical descriptions 
provided above are within the scope of this review unless otherwise 
excluded. The following products, are outside and/or specifically 
excluded from the scope of this review:
    Structural steel beams greater than 400 pounds per linear foot or 
with a web or section height (also known as depth) over 40 inches.
    The merchandise subject to this review is classified in the 
Harmonized Tariff Schedule of the United States (``HTSUS'') at 
subheadings: 7216.32.0000, 7216.33.0030, 7216.33.0060, 7216.33.0090, 
7216.50.0000, 7216.61.0000, 7216.69.0000, 7216.91.0000, 7216.99.0000, 
7228.70.3040, 7228.70.6000. Although the HTSUS subheadings are provided 
for convenience and U.S. Customs and Border Protection (``CBP'') 
purposes, the written description of the merchandise under review is 
dispositive.

Preliminary Results of the Review

    In submissions to the Department dated November 17, 2003 and March 
26, 2004, Yamato Kogyo advised the Department that the firm had 
conducted a corporate reorganization, resulting in the formation of 
Yamato Steel which assumed all steel and heavy industry operations 
formerly held by Yamato Kogyo.
    In antidumping duty changed circumstances reviews involving a 
successor-in- interest determination, the Department typically examines 
several factors including, but not limited to, changes in: (1) 
management; (2) production facilities; (3) supplier relationships; and 
(4) customer base. See Brass Sheet and Strip from Canada: Notice of 
Final Results of Antidumping Administrative Review, 57 FR 20460, 20462 
(May 13, 1992) (``Canada Brass''). While no single factor or 
combination of factors will necessarily be dispositive, the Department 
generally will consider the new company to be the successor to the 
predecessor company if the resulting operations are essentially the 
same as those of the predecessor company. See, e.g., Industrial 
Phosphoric Acid from Israel: Final Results of Changed Circumstances 
Review, 59 FR 6944, 6945 (February 14, 1994), and Canada Brass, 57 FR 
20462. Thus, if the record evidence demonstrates that, with respect to 
the production and sale of the subject merchandise, the new company 
operates as the same business entity as the predecessor company, the 
Department may assign the new company the cash deposit rate of its 
predecessor. See, e.g., Fresh and Chilled

[[Page 26808]]

Atlantic Salmon from Norway: Final Results of Changes Circumstances 
Antidumping Duty Administrative Review, 64 FR 9979, 9980 (March 1, 
1999).
    Our review of the evidence provided by Yamato Kogyo and Yamato 
Steel indicates, preliminarily, that the change in ownership has not 
significantly changed the company's management, production facilities, 
supplier relationships or customer base.
    Yamato Kogyo and Yamato Steel provided detailed organizational 
charts and lists of directors both prior to and following the creation 
of Yamato Steel. See Yamato Kogyo Co., Ltd. and Yamato Stel Co., Ltd. 
submission dated March 26, 2004, at Exhibits A, C, D, E and F. These 
organizational charts and lists of directors establish that the 
management and organizational structure of Yamato Steel is 
substantially the same as that of Yamato Kogyo. Yamato also provided 
the Modification and Transfer Registration that was filed with the 
Himeji City Tax Office, which documented the establishment of Yamato 
Steel, the acquisition by Yamato Steel of all tangible fixed assets, 
and that Yamato Kogyo is the parent of Yamato Steel. See Ibid. at 
Exhibit H. This was further corroborated by the internal Asset Value 
Summary of the assets transferred from Yamato Kogyo to Yamato Steel. 
See Ibid. at Exhibit I. This documentation of the establishment of 
Yamato Steel and transfer of fixed assets provides evidence of Yamato 
Steel's use of the production facilities formerly used by Yamato Kogyo 
in the production of subject merchandise. Yamato Steel's supplier 
relationships are reflective of those of the former Yamato Kogyo, as 
illustrated by the supplier lists, derived from the respective firms' 
accounts payable, provided by Yamato Kogyo and Yamato Steel. See Ibid. 
at Exhibits J and K. Finally, Yamato Kogyo and Yamato Steel provided 
the customer lists of both the former Yamato Kogyo and the new Yamato 
Steel, which, while not identical, are sufficiently similar to show no 
significant change in the customer base. See Ibid. at Exhibits J and K.
    In sum, Yamato Steel has presented evidence to establish a prima 
facie case of its successorship status. Yamato Steel's establishment by 
Yamato Kogyo has precipitated minimal changes to the original Yamato 
Kogyo corporate structure as it applies to the production of subject 
merchandise. Yamato Steel's management, production facilities, supplier 
relationships, sales facilities and customer base are essentially 
unchanged from those of Yamato Kogyo's. Therefore, the record evidence 
demonstrates that the new entity essentially operates in the same 
manner as the predecessor company. Consequently, we preliminarily 
determine that Yamato Steel should be given the same antidumping duty 
treatment as Yamato Kogyo, i.e., zero percent antidumping duty cash 
deposit rate.
    If the above preliminary determination results are affirmed in the 
Department's final results, the cash deposit determination from this 
changed circumstances review will apply to all entries of the subject 
merchandise entered, or withdrawn from warehouse, for consumption on or 
after the date of publication of the final results of this changed 
circumstances review. See Granular Polytetrafluoroethylene Resin from 
Italy; Final Results of Antidumping Duty Changed Circumstances Review, 
68 FR 25327 (May 12, 2003). This deposit rate shall remain in effect 
until publication of the final results of the next administrative 
review in which Yamato Steel participates.

Public Comment

    Any interested party may request a hearing within 30 days of 
publication of this notice. 19 CFR 351.310(c). Any hearing, if 
requested, will be held 44 days after the date of publication of this 
notice, or the first working day thereafter. Interested parties may 
submit case briefs and/or written comments not later than 30 days after 
the date of publication of this notice. 19 CFR 351.309(c)(ii). Rebuttal 
briefs, which must be limited to issues raised in such briefs or 
comments, may be filed not later than 37 days after the date of 
publication of this notice. See 19 CFR 351.309(d). Parties who submit 
arguments are requested to submit with the argument (1) a statement of 
the issue, (2) a brief summary of the argument, and (3) a table of 
authorities. Consistent with section 351.216(e) of the Department's 
regulations, we will issue the final results of this changed 
circumstances review no later than 270 days after the date on which 
this review was initiated.
    This notice is in accordance with sections 751(b) and 777(i)(1) of 
the Act, and section 351.221(c)(3)(i) of the Department's regulations.

    Dated: May 10, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. 04-11014 Filed 5-13-04; 8:45 am]
BILLING CODE 3510-DS-S