[Federal Register Volume 71, Number 29 (Monday, February 13, 2006)]
[Notices]
[Pages 7513-7515]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-1984]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-816]


Notice of Final Results of the Eleventh Administrative Review of 
the Antidumping Duty Order on Certain Corrosion-Resistant Carbon Steel 
Flat Products from the Republic of Korea

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On September 7, 2005, the Department of Commerce (the 
Department) published the Preliminary Results of the antidumping duty 
administrative review for certain corrosion-resistant carbon steel flat 
products (CORE) from the Republic of Korea (Korea). See Certain 
Corrosion-Resistant Carbon Steel Flat Products from Korea: Notice of 
Preliminary Results and Partial Rescission of Antidumping Duty 
Administrative Review, 70 FR 53153 (September 7, 2005) (Preliminary 
Results). This review covers five manufacturers and exporters of the 
subject merchandise: Union Steel Manufacturing Co., Ltd. (Union); 
Pohang Iron & Steel Company, Ltd. (POSCO) and Pohang Coated Steel Co., 
Ltd. (POCOS) (collectively, the POSCO Group); Hyundai HYSCO (HYSCO); 
Dongbu Steel Co., Ltd. (Dongbu) (collectively, respondents); and 
Dongshin Special Steel Co., Ltd. (Dongshin). The period of review (POR) 
is August 1, 2003, through July 31, 2004.
    As a result of our analysis of the comments received, these final 
results differ from the Preliminary Results. For our final results, we 
have found that during the POR, the POSCO Group, Union and Dongbu sold 
subject merchandise at less than normal value (NV). We have also found 
that HYSCO did not make sales of the subject merchandise at less than 
NV (i.e., it has a zero or de minimis dumping margin). Regarding 
Dongshin, because it failed to respond to the Department's 
questionnaire, we have preliminarily determined to resort to adverse 
facts available and assigned to Dongshin the ``All Others'' rate in 
effect for this order (17.70 percent), which is the highest margin 
upheld in this proceeding. See Preliminary Results at 53155-56. Since 
the publication of the Preliminary Results, we have not received any 
comments regarding Dongshin from interested parties that would warrant 
reconsideration of our finding. Therefore, we have continued to assign 
a rate of 17.70 percent to Dongshin. The final results are listed in 
the ``Final Results of Review'' section below. Furthermore, we 
rescinded the request for review of the antidumping order for SeAH 
Steel Corporation (SeAH) because neither SeAH nor its affiliates had 
exports or sales of subject merchandise to the United States during the 
POR. For more information, see Preliminary Results at 53154.

EFFECTIVE DATE: February 13, 2006.

FOR FURTHER INFORMATION CONTACT: Jolanta Lawska (Union), Preeti Tolani 
(Dongbu), Victoria Cho (the POSCO Group), and Joy Zhang (HYSCO), AD/CVD 
Operations, Office 3, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
8362, (202) 482-0395, (202) 482-5075, and (202) 482-1168, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On September 7, 2005, the Department published the Preliminary 
Results. On December 5, 2005, the Department published the notice of 
extension of final results of the antidumping administrative review of 
CORE from Korea, extending the date for these final results to February 
6, 2006. See Corrosion Resistant Carbon Steel Flat Products from Korea: 
Extension of Time Limits for the Final Results of Antidumping 
Administrative Review, 70 FR 72424 (December 5, 2005).

Comments from Interested Parties

    We invited parties to comment on our Preliminary Results. On 
November 15, 2005, Mittal Steel USA ISG, Inc. (Mittal) filed a case 
brief concerning all respondents; United States Steel Corporation (US 
Steel) filed case briefs concerning the POSCO Group, HYSCO, and Union; 
and all respondents filed a case brief.\1\ On November 22, 2005, Mittal 
and US Steel filed rebuttal briefs concerning all respondents, and all 
respondents also filed a rebuttal brief.
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    \1\ The Nucor Corporation, another domestic interested party, 
did not submit a case brief or a rebuttal brief.
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Scope of the Order

    This order covers cold-rolled (cold-reduced) carbon steel flat-
rolled carbon steel products, of rectangular shape, either clad, 
plated, or coated with corrosion-resistant metals such as zinc, 
aluminum, or zinc-, aluminum-, nickel- or iron-based alloys, whether or 
not corrugated or painted, varnished or coated with plastics or other 
nonmetallic substances in addition to the metallic coating, in coils 
(whether or not in successively superimposed layers) and of a width of 
0.5 inch or greater, or in straight lengths which, if of a thickness 
less than 4.75 millimeters, are of a width of 0.5 inch or greater and 
which measures at least 10 times the thickness or if of a thickness of 
4.75 millimeters or more are of a width which exceeds 150 millimeters 
and measures at least twice the thickness, as currently classifiable in 
the Harmonized Tariff Schedule of the United States (HTSUS) under item 
numbers 7210.30.0030, 7210.30.0060, 7210.41.0000, 7210.49.0030, 
7210.49.0090, 7210.61.0000, 7210.69.0000, 7210.70.6030, 7210.70.6060, 
7210.70.6090, 7210.90.1000, 7210.90.6000, 7210.90.9000, 7212.20.0000, 
7212.30.1030, 7212.30.1090, 7212.30.3000, 7212.30.5000, 7212.40.1000, 
7212.40.5000, 7212.50.0000, 7212.60.0000, 7215.90.1000, 7215.90.3000, 
7215.90.5000, 7217.20.1500, 7217.30.1530, 7217.30.1560, 7217.90.1000, 
7217.90.5030,

[[Page 7514]]

7217.90.5060, 7217.90.5090. Included in this order are corrosion-
resistant flat-rolled products of nonrectangular cross-section where 
such cross-section is achieved subsequent to the rolling process (i.e., 
products which have been ``worked after rolling'') for example, 
products which have been beveled or rounded at the edges. Excluded from 
this order are flat-rolled steel products either plated or coated with 
tin, lead, chromium, chromium oxides, both tin and lead (``terne 
plate''), or both chromium and chromium oxides (``tin-free steel''), 
whether or not painted, varnished or coated with plastics or other 
nonmetallic substances in addition to the metallic coating. Also 
excluded from this order are clad products in straight lengths of 
0.1875 inch or more in composite thickness and of a width which exceeds 
150 millimeters and measures at least twice the thickness. Also 
excluded from this order are certain clad stainless flat-rolled 
products, which are three-layered corrosion-resistant carbon steel 
flat-rolled products less than 4.75 millimeters in composite thickness 
that consist of a carbon steel flat-rolled product clad on both sides 
with stainless steel in a 20%-60%-20% ratio.
    These HTSUS item numbers are provided for convenience and customs 
purposes. The written descriptions remain dispositive.

Analysis of Comments Received

    All issues raised in the case and rebuttal brief by parties to this 
administrative review are addressed in the accompanying Issues and 
Decision Memorandum, which is hereby adopted by this notice. A list of 
the issues which parties have raised, and to which we have responded in 
the Issues and Decision Memorandum, is attached to this notice as an 
Appendix. In addition, a complete version of the Issues and Decision 
Memorandum can be accessed directly on the Web at http://ia.ita.doc.gov/frn. The paper copy and electronic version of the Issues 
and Decision Memorandum are identical in content.

Final Results of Review

    We determine that the following weighted-average margins exist:

------------------------------------------------------------------------
                                                       Weighted-Average
                Producer/Manufacturer                       Margin
------------------------------------------------------------------------
Dongbu..............................................              2.26 %
Union...............................................              1.54 %
The POSCO Group.....................................              2.16 %
HYSCO...............................................              0.00 %
Dongshin............................................             17.70 %
------------------------------------------------------------------------

Assessment

    The Department will determine, and Customs and Border Protection 
(CBP) shall assess, antidumping duties on all appropriate entries, 
pursuant to 19 CFR 351.212(b). The Department calculated importer-
specific duty assessment rates on the basis of the ratio of the total 
antidumping duties calculated for the examined sales to the total 
entered value of the examined sales for that importer. Where the 
assessment rate is above de minimis, we will instruct CBP to assess 
duties on all entries of subject merchandise by that importer. The 
Department will issue appropriate assessment instructions directly to 
CBP within 15 days of publication of these final results.

Cash Deposit Requirements

    The following deposit requirements will be effective upon 
publication of the final results of this administrative review for all 
shipments of CORE from Korea entered, or withdrawn from warehouse, for 
consumption on or after the publication date of these final results, as 
provided by section 751(a) of the Tariff Act of 1930, as amended (the 
Act): (1) For companies covered by this review, the cash deposit rate 
will be the rate listed above; (2) for previously reviewed or 
investigated companies other than those covered by this review, the 
cash deposit rate will be the company-specific rate established for the 
most recent period; (3) if the exporter is not a firm covered in this 
review, a prior review, or the less-than-fair-value investigation, but 
the producer is, the cash deposit rate will be the rate established for 
the most recent period for the manufacturer of the subject merchandise; 
and (4) if neither the exporter nor the producer is a firm covered in 
this review, a prior review, or the investigation, the cash deposit 
rate will be 17.70 percent, the ``All Others'' rate established in the 
less-than-fair-value investigation. These deposit requirements shall 
remain in effect until publication of the final results of the next 
administrative review.

Reimbursement of Duties

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402 (f) to file a certificate regarding 
the reimbursement of antidumping and/or countervailing duties prior to 
liquidation of the relevant entries during this review period. Failure 
to comply with this requirement could result in the presumption that 
reimbursement of antidumping and/or countervailing duties occurred and 
the subsequent increase in antidumping duties by the amount of 
antidumping and/or countervailing duties reimbursed.

Administrative Protective Order

    This notice also is the only reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305. Timely written 
notification of the 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.
    We are issuing and publishing these results and notice in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: February 3, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.

APPENDIX I

List of Comments in the Accompanying Issues and Decision Memorandum

A. General Issues

Comment 1: Model-Match Methodology and Laminated Products
Comment 2: Adjustments to U.S. Prices for Duty Drawback Paid in Korea
Comment 3: Section D Costs As Weighted-Average Values for the Entire 
POR
Comment 4: Adjustments to the Difference-In-Merchandise (DIFMER) 
Calculation

B. Company-Specific Issues

Dongbu Steel Co., Ltd.

Comment 5: Treatment of Dongbu's Indirect Selling Expenses Incurred in 
Korea
Comment 6: Treatment of Dongbu's Constructed Export Price (CEP) Offset
Comment 7: Dongbu's Treatment of Short-term Interest Rate

Hyundai HYSCO

Comment 8: CEP Offset for HYSCO
Comment 9: U.S. Sales Reconciliation for HYSCO
Comment 10: U.S. Indirect Selling Expense Ratio for HYSCO
Comment 11: HYSCO's Indirect Selling Expenses Incurred in Korea
Comment 12: Customs Instructions for HYSCO
Comment 13: HYSCO's Home Market Sales of Non-prime Merchandise

[[Page 7515]]

Union Steel Manufacturing Co., Ltd.

Comment 14: Treatment of Union's CEP Offset
Comment 15: Treatment of Union's Indirect Selling Expenses Incurred in 
Korea
Comment 16: Treatment of Union's Indirect Selling Expense Ratio
Comment 17: Union's Treatment of Bad Debt Expenses Incurred by Dongkuk 
International Inc.
Comment 18: Union's Treatment of Factory Warehousing Expenses in Korea 
for its U.S. Sales
Comment 19: Treatment of Union's Warranty Expenses
Comment 20: Treatment of Certain Estimated Shipment Dates and/or 
Estimated Payment Dates for Certain U.S. Warehoused Sales
Comment 21: Treatment of Union Coating Co., Ltd.'s (Unico's) Home 
Market Credit Expense
Comment 22: Union's Treatment of ``Oxidized Steel'' (Rust) in its Cost 
Calculations

Pohang Iron & Steel Company, Ltd. and Pohang Coated Steel Co., Ltd.

Comment 23: Treatment of the POSCO Group's Indirect Selling Expenses 
Incurred in Korea
Comment 24: Treatment of the POSCO Group's CEP Offset
Comment 25: The POSCO Group's Treatment of Advertising Expenses as 
Indirect Selling Expenses
Comment 26: The POSCO Group's Rebates for Home Market Sales
Comment 27: Revision of the POSCO Group's Indirect Selling and 
Commission Expense
Comment 28: Treatment of the POSCO Group's Home Market Sales As Outside 
the Ordinary Course of Trade
Comment 29: Treatment of the POSCO Group's Home Market Credit Expense
Comment 30: The POSCO Group's ``Window Period'' Sales Adjustment
[FR Doc. E6-1984 Filed 2-10-06; 8:45 am]
BILLING CODE 3510-DS-S