[Federal Register Volume 71, Number 91 (Thursday, May 11, 2006)]
[Notices]
[Pages 27450-27458]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-7223]


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DEPARTMENT OF COMMERCE

International Trade Administration

(A-588-824)


Certain Corrosion-Resistant Carbon Steel Flat Products From 
Japan: Preliminary Results of Antidumping Duty Administrative Review, 
and Preliminary Intent to Rescind, In part

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (``Department'') is conducting an 
administrative review of the antidumping duty order on certain 
corrosion-resistant carbon steel flat products (``CORE'') from Japan. 
The period of review (``POR'') is August 1, 2004, through July 31, 
2005. This review covers imports of CORE from Kawasaki Steel 
Corporation (``Kawasaki'') and Nippon Steel Corporation (``Nippon 
Steel''). We have preliminarily found that there were no entries of 
CORE produced by Kawasaki. Therefore, we preliminarily determine to 
rescind this review with respect to Kawasaki. Further, we preliminarily 
determine that sales of subject merchandise sold by Nippon Steel have 
been made at less than normal value.
    If these preliminary results are adopted in our final results of 
this administrative review, we will instruct U.S. Customs and Border 
Protection (``CBP'') to assess antidumping duties on entries of Nippon 
Steel's merchandise during the POR, in accordance with 19 CFR 351.106 
and 351.212(b).
    We invite interested parties to comment on these preliminary 
results. Parties who submit arguments in this segment of the proceeding 
should also submit with each argument: (1) a statement of the issue and 
(2) a brief summary of the argument. We will issue the final results 
not later than 120 days from the date of publication of this notice.

EFFECTIVE DATE: May 11, 2006.

FOR FURTHER INFORMATION CONTACT: Christopher Hargett, George McMahon, 
or James Terpstra, 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) 482-4161, (202) 482-1167, or (202) 482-3965, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published an antidumping duty order on CORE from 
Japan on August 19, 1993. See Antidumping Duty Orders: Certain 
Corrosion-Resistant Carbon Steel Flat Products from Japan, 58 FR 44163 
(Aug. 19, 1993). On August 31, 2005, Nucor Corporation (``Nucor''), a 
domestic producer of the subject merchandise, requested an 
administrative review (``AR'') of the antidumping order referenced 
above with respect to Kawasaki and Nippon Steel. See Letter from Nucor 
Corporation Requesting Administrative Review. On September 28, 2005, 
the Department published a notice of initiation of this antidumping 
duty AR. See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews and Request for Revocation in

[[Page 27451]]

Part, 70 FR 56631 (Sept. 28, 2005). On November 19, 2005, the 
Department issued Sections A, B, C and D questionnaires to JFE Steel 
and its affiliate, Kawasho Corporation (collectively ``JFE Steel''), 
and to Nippon Steel.
    Issuing the questionnaire to JFE Steel was an inadvertent error 
based on a slight difference between the request for initiation in this 
and the previous review. In the previous administrative review, Nucor 
requested an administrative review of ``Kawasaki Steel Corp. (and any 
alleged successor-in-interest including JFE Steel Corp.)'' Based on 
this request, we initiated for Kawasaki /JFE and sent JFE a 
questionnaire. In the present review, Nucor requested a review solely 
for ``Kawasaki Steel Corporation'' and we initiated the review solely 
for ``Kawasaki Steel Corporation.'' Because Nucor did not included a 
review request for ``(any alleged successor-in-interest including 
JFE),'' we did not initiate for Kawasaki/JFE, and should not have sent 
JFE a questionnaire.
    JFE Steel responded to the Department's questionnaire on November 
28, 2006, requesting that the Department withdraw the questionnaire 
because no AR had been initiated with respect to JFE Steel. The 
Department agreed and withdrew the questionnaire. See ``Intent to 
Rescind, in Part'' section of this notice.
    In response to the questionnaire it received, Nippon Steel sent a 
letter to the Department stating it would not participate in the AR. 
See Letter from Nippon Steel Corporation, Dec. 9, 2005. The Department 
issued a letter Nippon Steel advising them that nonparticipation might 
result in the application of adverse faces available (``AFA'') pursuant 
to section 776(a) and (b) of the Tariff Act of 1930, as amended (``the 
Act''). See Letter to Nippon Steel: Nonparticipation in Administrative 
Review (A-588-824), Jan. 17, 2006. See ``Adverse Facts Available'' 
section of this notice.

Intent to Rescind, in Part

    In response to the questionnaire, JFE Steel submitted letters to 
the Department arguing that because JFE Steel was not named in the 
Department's Notice of Initiation, it was not required to respond to 
the November 19, 2005, questionnaire and requesting that the Department 
withdraw its questionnaire. See Letter from JFE Steel, Nov. 28, 2005; 
Letter from JFE Steel, Dec. 9, 2005; and Letter from JFE Steel, Jan. 
26, 2006. Nucor submitted a letter to the Department agreeing with JFE 
Steel that Nucor had not requested a review of JFE Steel and that JFE 
Steel does not need to respond to the questionnaire. Nucor also stated 
that information recently became available on the internet that 
demonstrates that Kawasaki ceased to be a producer and exporter of 
subject merchandise in 2003, and is no longer capable of exporting 
subject merchandise to the United States. See Letter from Nucor: 
Response to Comments by JFE Steel Corporation at 2-3, Dec. 19, 2005.
    As a result of Nucor's statements, the Department conducted a data 
query to determine whether there were any shipments of CORE produced by 
Kawasaki during the POR. The Department found that there were no 
entries by Kawasaki during the POR. Further, we found that there were 
no entries under the Kawasaki-specific 10-digit case number. See Memo 
to the File, Feb. 10, 2006. Additionally, the Department withdrew the 
questionnaire issued to JFE Steel and Kawasho Corporation. See Letter 
to JFE Steel, Feb. 10, 2006. Based on our analysis of the shipment 
data, we are treating Kawasaki as a non-shipper for the purpose of this 
review. Therefore, in accordance with 19 CFR 351.213(d)(3), and 
consistent with our practice, we preliminarily determine to rescind 
this review, in part. See e.g., Stainless Steel Bar from India; 
Preliminary Results of Antidumping Duty Administrative Review and New 
Shipper Review, and Partial Rescission of Administrative Review, 65 FR 
12209 (March 8, 2000); Persulfates From the People's Republic of China; 
Preliminary Results of Antidumping Duty Administrative Review and 
Partial Rescission of Administrative Review, 65 FR 18963 (April 10, 
2000).

Scope of Order

    The products subject to this order include 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 
mm, 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 mm or more, are of 
a width which exceeds 150 mm and measures at least twice the thickness, 
as currently classifiable in the HTS 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, 7217.90.5060, 
and 7217.90.5090.
    Included in the order are 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 the scope of the 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 the scope of the order are clad products in 
straight lengths of 0.1875 inch or more in composite thickness and of a 
width which exceeds 150 mm and measures at least twice the thickness. 
Also excluded from the scope of the order are certain clad stainless 
flat-rolled products, which are three-layered corrosion- resistant 
carbon steel flat-rolled products less than 4.75 mm in composite 
thickness that consist of a carbon steel flat-rolled product clad on 
both sides with stainless steel in a 20[percnt]-60[percnt]-20[percnt] 
ratio. See Antidumping Duty Orders: Certain Corrosion-Resistant Carbon 
Steel Flat Products From Japan, 58 FR 44163 (Aug. 19, 1993).

Exclusions due to Changed Circumstances Reviews

    The Department has issued the following rulings to date:
    Excluded from the scope of this order are imports of certain 
corrosion-resistant carbon steel flat products meeting the following 
specifications: widths ranging from 10 mm (0.394 inches) through 100 mm 
(3.94 inches); thicknesses, including coatings, ranging from 0.11 mm 
(0.004 inches) through 0.60 mm (0.024 inches); and a coating that is 
from 0.003 mm (0.00012 inches) through 0.005 mm (0.000196 inches) in 
thickness and that is comprised of three evenly applied layers, the 
first layer

[[Page 27452]]

consisting of 99[percnt] zinc, 0.5[percnt] cobalt, and 0.5[percnt] 
molybdenum, followed by a layer consisting of chromate, and finally a 
layer consisting of silicate. See Certain Corrosion-Resistant Carbon 
Steel Flat Products From Japan: Final Results of Changed Circumstances 
Antidumping Duty Administrative Review, and Revocation in Part of 
Antidumping Duty Order, 62 FR 66848 (Dec. 22, 1997).
    Also excluded from the scope of this order are imports of subject 
merchandise meeting all of the following criteria: (1) Widths ranging 
from 10 mm (0.394 inches) through 100 mm (3.94 inches); (2) 
thicknesses, including coatings, ranging from 0.11 mm (0.004 inches) 
through 0.60 mm (0.024 inches); and (3) a coating that is from 0.003 mm 
(0.00012 inches) through 0.005 mm (0.000196 inches) in thickness and 
that is comprised of either two evenly applied layers, the first layer 
consisting of 99[percnt] zinc, 0.5[percnt] cobalt, and 0.5[percnt] 
molybdenum, followed by a layer consisting of chromate, or three evenly 
applied layers, the first layer consisting of 99[percnt] zinc, 
0.5[percnt] cobalt, and 0.5[percnt] molybdenum followed by a layer 
consisting of chromate, and finally a layer consisting of silicate. See 
Certain Corrosion-Resistant Carbon Steel Flat Products From Japan: 
Final Results of Changed Circumstances Antidumping Duty Administrative 
Review, and Revocation in Part of Antidumping Duty Order, 64 FR 14862 
(Mar. 29, 1999).
    Also excluded from the scope of this order are: (1) Carbon steel 
flat products measuring 1.84 mm in thickness and 43.6 mm or 16.1 mm in 
width consisting of carbon steel coil (SAE 1008) clad with an aluminum 
alloy that is balance aluminum, 20[percnt] tin, 1[percnt] copper, 
0.3[percnt] silicon, 0.15[percnt] nickel, less than 1[percnt] other 
materials and meeting the requirements of SAE standard 783 for Bearing 
and Bushing Alloys; and (2) carbon steel flat products measuring 0.97 
mm in thickness and 20 mm in width consisting of carbon steel coil (SAE 
1008) with a two-layer lining, the first layer consisting of a copper-
lead alloy powder that is balance copper, 9[percnt] to 11[percnt] tin, 
9[percnt] to 11[percnt] lead, less than 1[percnt] zinc, less than 
1[percnt] other materials and meeting the requirements of SAE standard 
792 for Bearing and Bushing Alloys, the second layer consisting of 
45[percnt] to 55[percnt] lead, 38[percnt] to 50[percnt] 
polytetrafluorethylene (``PTFE''), 3[percnt] to 5[percnt] molybdenum 
disulfide and less than 2[percnt] other materials. See Certain 
Corrosion-Resistant Carbon Steel Flat Products From Japan: Final 
Results of Changed Circumstances Antidumping Duty Review, and 
Revocation in Part of Antidumping Duty Order, 64 FR 57032 (Oct. 22, 
1999).
    Also excluded from the scope of the order are imports of doctor 
blades meeting the following specifications: carbon steel coil or 
strip, plated with nickel phosphorous, having a thickness of 0.1524 mm 
(0.006 inches), a width between 31.75 mm (1.25 inches) and 50.80 mm 
(2.00 inches), a core hardness between 580 to 630 HV, a surface 
hardness between 900--990 HV; the carbon steel coil or strip consists 
of the following elements identified in percentage by weight: 
0.90[percnt] to 1.05[percnt] carbon; 0.15[percnt] to 0.35[percnt] 
silicon; 0.30[percnt] to 0.50[percnt] manganese; less than or equal to 
0.03[percnt] of phosphorous; less than or equal to 0.006[percnt] of 
sulfur; other elements representing 0.24[percnt]; and the remainder of 
iron. See Certain Corrosion-Resistant Carbon Steel Flat Products From 
Japan: Final Results of Changed Circumstances Review, and Revocation in 
Part of Antidumping Duty Order, 65 FR 53983 (Sept. 6, 2000).
    Also excluded from the scope of the order are imports of carbon 
steel flat products meeting the following specifications: carbon steel 
flat products measuring 1.64 mm in thickness and 19.5 mm in width 
consisting of carbon steel coil (SAE 1008) with a lining clad with an 
aluminum alloy that is balance aluminum; 10 to 15[percnt] tin; 1 to 
3[percnt] lead; 0.7 to 1.3[percnt] copper; 1.8 to 3.5[percnt] silicon; 
0.1 to 0.7[percnt] chromium; less than 1[percnt] other materials and 
meeting the requirements of SAE standard 783 for Bearing and Bushing 
Alloys. See Certain Corrosion-Resistant Carbon Steel Flat Products From 
Japan: Final Results of Changed Circumstances Review, and Revocation in 
Part of Antidumping Duty Order, 66 FR 8778 (Feb. 2, 2001).
    Also excluded from the scope of the order are carbon steel flat 
products meeting the following specifications: (1) Carbon steel flat 
products measuring 0.975 mm in thickness and 8.8 mm in width consisting 
of carbon steel coil (SAE 1012) clad with a two-layer lining, the first 
layer consisting of a copper-lead alloy powder that is balance copper, 
9[percnt]-11[percnt] tin, 9[percnt]-11[percnt] lead, maximum 1[percnt] 
other materials and meeting the requirements of SAE standard 792 for 
Bearing and Bushing Alloys, the second layer consisting of 13[percnt]-
17[percnt] carbon, 13[percnt]-17[percnt] aromatic polyester, with a 
balance (approx. 66[percnt]-74[percnt]) of PTFE; and (2) carbon steel 
flat products measuring 1.02 mm in thickness and 10.7 mm in width 
consisting of carbon steel coil (SAE 1008) with a two-layer lining, the 
first layer consisting of a copper-lead alloy powder that is balance 
copper, 9[percnt]-11[percnt] tin, 9[percnt]-11[percnt] lead, less than 
0.35[percnt] iron, and meeting the requirements of SAE standard 792 for 
Bearing and Bushing Alloys, the second layer consisting of 45[percnt]-
55[percnt] lead, 3[percnt]-5[percnt] molybdenum disulfide, with a 
balance (approx. 40[percnt]-52[percnt]) of PTFE. See Certain Corrosion-
Resistant Carbon Steel Flat Products From Japan: Notice of Final 
Results of Changed Circumstances Review, and Revocation in Part of 
Antidumping Duty Order, 66 FR 15075 (Mar. 15, 2001).
    Also excluded from this order are carbon steel flat products 
meeting the following specifications: (1) carbon steel coil or strip, 
measuring 1.93 mm or 2.75 mm (0.076 inches or 0.108 inches) in 
thickness, 87.3 mm or 99 mm (3.437 inches or 3.900 inches) in width, 
with a low carbon steel back comprised of: carbon under 8[percnt], 
manganese under 0.4[percnt], phosphorous under 0.04[percnt], and sulfur 
under 0.05[percnt]; clad with aluminum alloy comprised of: 0.7[percnt] 
copper, 12[percnt] tin, 1.7[percnt] lead, 0.3[percnt] antimony, 
2.5[percnt] silicon, 1[percnt] maximum total other (including iron), 
and remainder aluminum; and (2) carbon steel coil or strip, clad with 
aluminum, measuring 1.75 mm (0.069 inches) in thickness, 89 mm or 94 mm 
(3.500 inches or 3.700 inches) in width, with a low carbon steel back 
comprised of: carbon under 8[percnt], manganese under 0.4[percnt], 
phosphorous under 0.04[percnt], and sulfur under 0.05[percnt]; clad 
with aluminum alloy comprised of: 0.7[percnt] copper, 12[percnt] tin, 
1.7[percnt] lead, 2.5[percnt] silicon, 0.3[percnt] antimony, 1[percnt] 
maximum total other (including iron), and remainder aluminum. See 
Certain Corrosion-Resistant Carbon Steel Flat Products From Japan: 
Notice of Final Results of Changed Circumstances Review, and Revocation 
in Part of Antidumping Duty Order, 66 FR 20967 (Apr. 26, 2001).
    Also excluded from this order are carbon steel flat products 
meeting the following specifications: carbon steel coil or strip, 
measuring a minimum of and including 1.10 mm to a maximum of and 
including 4.90 mm in overall thickness, a minimum of and including 
76.00 mm to a maximum of and including 250.00 mm in overall width, with 
a low carbon steel back comprised of: carbon under 0.10[percnt], 
manganese under 0.40[percnt], phosphorous under 0.04[percnt], sulfur 
under 0.05[percnt], and silicon under 0.05[percnt]; clad with aluminum 
alloy comprised of: under 2.51[percnt] copper, under 15.10[percnt] tin, 
and remainder aluminum as listed on the mill specification sheet. See 
Certain Corrosion-Resistant Carbon Steel Flat Products From Japan: 
Notice of Final Results of Changed Circumstances Review, and Revocation 
in Part of Antidumping Duty Order, 67 FR 7356 (Feb. 19, 2002).

[[Page 27453]]

    Also excluded from this order are products meeting the following 
specifications: (1) Diffusion-annealed, non-alloy nickel-plated carbon 
products, with a substrate of cold-rolled battery grade sheet 
(``CRBG'') with both sides of the CRBG initially electrolytically 
plated with pure, unalloyed nickel and subsequently annealed to create 
a diffusion between the nickel and iron substrate, with the nickel 
plated coating having a thickness of 0-5 microns per side with one side 
equaling at least 2 microns; and with the nickel carbon sheet having a 
thickness of from 0.004'' (0.10 mm) to 0.030'' (0.762 mm) and 
conforming to the following chemical specifications ([percnt]): C <= 
0.08; Mn <= 0.45; P <= 0.02; S <= 0.02; Al <= 0.15; and Si <= 0.10; and 
the following physical specifications: Tensile = 65 KSI maximum; Yield 
= 32 - 55 KSI; Elongation = 18[percnt] minimum (aim 34[percnt]); 
Hardness = 85 - 150 Vickers; Grain Type = Equiaxed or Pancake; Grain 
Size (ASTM) = 7-12; Delta r value = aim less than 0.2; Lankford value 
>=1.2.; and (2) next generation diffusion-annealed nickel plate meeting 
the following specifications: (a) Nickel-graphite plated, diffusion-
annealed, tin-nickel plated carbon products, with a natural composition 
mixture of nickel and graphite electrolytically plated to the top side 
of diffusion-annealed tin-nickel plated carbon steel strip with a cold 
rolled or tin mill black plate base metal conforming to chemical 
requirements based on AISI 1006; having both sides of the cold rolled 
substrate electrolytically plated with natural nickel, with the top 
side of the nickel plated strip electrolytically plated with tin and 
then annealed to create a diffusion between the nickel and tin layers 
in which a nickel-tin alloy is created, and an additional layer of 
mixture of natural nickel and graphite then electrolytically plated on 
the top side of the strip of the nickel-tin alloy; having a coating 
thickness: top side: nickel-graphite, tin-nickel layer >= 1.0 
micrometers; tin layer only >= 0.05 micrometers, nickel-graphite layer 
only > 0.2 micrometers, and bottom side: nickel layer >= 1.0 
micrometers; (b) nickel-graphite, diffusion-annealed, nickel plated 
carbon products, having a natural composition mixture of nickel and 
graphite electrolytically plated to the top side of diffusion-annealed 
nickel plated steel strip with a cold rolled or tin mill black plate 
base metal conforming to chemical requirements based on AISI 1006; with 
both sides of the cold rolled base metal initially electrolytically 
plated with natural nickel, and the material then annealed to create a 
diffusion between the nickel and the iron substrate; with an additional 
layer of natural nickel-graphite then electrolytically plated on the 
top side of the strip of the nickel plated steel strip; with the 
nickel-graphite, nickel plated material sufficiently ductile and 
adherent to the substrate to permit forming without cracking, flaking, 
peeling, or any other evidence of separation; having a coating 
thickness: top side: nickel-graphite, tin-nickel layer >= 1.0 
micrometers; nickel-graphite layer >= 0.5 micrometers; bottom side: 
nickel layer >= 1.0 micrometers; (c) diffusion-annealed nickel-graphite 
plated products, which are cold-rolled or tin mill black plate base 
metal conforming to the chemical requirements based on AISI 1006; 
having the bottom side of the base metal first electrolytically plated 
with natural nickel, and the top side of the strip then plated with a 
nickel-graphite composition; with the strip then annealed to create a 
diffusion of the nickel-graphite and the iron substrate on the bottom 
side; with the nickel-graphite and nickel plated material sufficiently 
ductile and adherent to the substrate to permit forming without 
cracking, flaking, peeling, or any other evidence of separation; having 
coating thickness: top side: nickel-graphite layer >= 1.0 micrometers; 
bottom side: nickel layer >= 1.0 micrometers; (d) nickel-phosphorous 
plated diffusion-annealed nickel plated carbon product, having a 
natural composition mixture of nickel and phosphorus electrolytically 
plated to the top side of a diffusion-annealed nickel plated steel 
strip with a cold rolled or tin mill black plate base metal conforming 
to the chemical requirements based on AISI 1006; with both sides of the 
base metal initially electrolytically plated with natural nickel, and 
the material then annealed to create a diffusion of the nickel and iron 
substrate; another layer of the natural nickel-phosphorous then 
electrolytically plated on the top side of the nickel plated steel 
strip; with the nickel-phosphorous, nickel plated material sufficiently 
ductile and adherent to the substrate to permit forming without 
cracking, flaking, peeling or any other evidence of separation; having 
a coating thickness: top side: nickel-phosphorous, nickel layer >= 1.0 
micrometers; nickel-phosphorous layer >= 0.1 micrometers; bottom side: 
nickel layer >= 1.0 micrometers; (e) diffusion-annealed, tin-nickel 
plated products, electrolytically plated with natural nickel to the top 
side of a diffusion-annealed tin-nickel plated cold rolled or tin mill 
black plate base metal conforming to the chemical requirements based on 
AISI 1006; with both sides of the cold rolled strip initially 
electrolytically plated with natural nickel, with the top side of the 
nickel plated strip electrolytically plated with tin and then annealed 
to create a diffusion between the nickel and tin layers in which a 
nickel-tin alloy is created, and an additional layer of natural nickel 
then electrolytically plated on the top side of the strip of the 
nickel-tin alloy; sufficiently ductile and adherent to the substrate to 
permit forming without cracking, flaking, peeling or any other evidence 
of separation; having coating thickness: top side: nickel-tin-nickel 
combination layer >= 1.0 micrometers; tin layer only >= 0.05 
micrometers; bottom side: nickel layer >= 1.0 micrometers; and (f) tin 
mill products for battery containers, tin and nickel plated on a cold 
rolled or tin mill black plate base metal conforming to chemical 
requirements based on AISI 1006; having both sides of the cold rolled 
substrate electrolytically plated with natural nickel; then annealed to 
create a diffusion of the nickel and iron substrate; then an additional 
layer of natural tin electrolytically plated on the top side; and again 
annealed to create a diffusion of the tin and nickel alloys; with the 
tin-nickel, nickel plated material sufficiently ductile and adherent to 
the substrate to permit forming without cracking, flaking, peeling or 
any other evidence of separation; having a coating thickness: top side: 
nickel-tin layer >=1 micrometer; tin layer alone >=0.05 micrometers; 
bottom side: nickel layer >=1.0 micrometer. See Certain Corrosion-
Resistant Carbon Steel Flat Products From Japan: Notice of Final 
Results of Changed Circumstances Review, and Revocation in Part of 
Antidumping Duty Order, 67 FR 47768 (Jul. 22, 2002).
    Also excluded from this order are products meeting the following 
specifications: (1) Widths ranging from 10 mm (0.394 inches) through 
100 mm (3.94 inches); (2) thicknesses, including coatings, ranging from 
0.11 mm (0.004 inches) through 0.60 mm (0.024 inches); and (3) a 
coating that is from 0.003 mm (0.00012 inches) through 0.005 mm 
(0.000196 inches) in thickness and that is comprised of either two 
evenly applied layers, the first layer consisting of 99[percnt] zinc, 
0.5[percnt] cobalt, and 0.5[percnt] molybdenum, followed by a layer 
consisting of phosphate, or three evenly applied layers, the first 
layer consisting of 99[percnt] zinc, 0.5[percnt] cobalt, and 
0.5[percnt] molybdenum followed by a layer consisting of phosphate, and 
finally a

[[Page 27454]]

layer consisting of silicate. See Certain Corrosion-Resistant Carbon 
Steel Flat Products From Japan: Notice of Final Results of Changed 
Circumstances Review, and Revocation in Part of Antidumping Duty Order, 
67 FR 57208 (Sept. 9, 2002).
    Also excluded from this order are products meeting the following 
specifications: (1) Flat-rolled products (provided for in HTSUS 
subheading 7210.49.00), other than of high-strength steel, known as 
``ASE Iron Flash'' and either: (A) having a base layer of zinc-based 
zinc-iron alloy applied by hot-dipping and a surface layer of iron-zinc 
alloy applied by electrolytic process, the weight of the coating and 
plating not over 40[percnt] by weight of zinc; or (B) two-layer-coated 
corrosion-resistant steel with a coating composed of (a) a base coating 
layer of zinc-based zinc-iron alloy by hot-dip galvanizing process, and 
(b) a surface coating layer of iron-zinc alloy by electro-galvanizing 
process, having an effective amount of zinc up to 40[percnt] by weight, 
and (2) corrosion resistant continuously annealed flat-rolled products, 
continuous cast, the foregoing with chemical composition (percent by 
weight): carbon not over 0.06[percnt] by weight, manganese 0.20 or more 
but not over 0.40, phosphorus not over 0.02, sulfur not over 0.023, 
silicon not over 0.03, aluminum 0.03 or more but not over 0.08, arsenic 
not over 0.02, copper not over 0.08 and nitrogen 0.003 or more but not 
over 0.008; and meeting the characteristics described below: (A) 
Products with one side coated with a nickel-iron-diffused layer which 
is less than 1 micrometer in thickness and the other side coated with a 
two-layer coating composed of a base nickel-iron-diffused coating layer 
and a surface coating layer of annealed and softened pure nickel, with 
total coating thickness for both layers of more than 2 micrometers; 
surface roughness (RA-microns) 0.18 or less; with scanning electron 
microscope (SEM) not revealing oxides greater than 1 micron; and 
inclusion groups or clusters shall not exceed 5 microns in length; (B) 
products having one side coated with a nickel-iron-diffused layer which 
is less than 1 micrometer in thickness and the other side coated with a 
four-layer coating composed of a base nickel-iron-diffused coating 
layer; with an inner middle coating layer of annealed and softened pure 
nickel, an outer middle surface coating layer of hard nickel and a 
topmost nickel-phosphorus-plated layer; with combined coating thickness 
for the four layers of more than 2 micrometers; surface roughness (RA-
microns) 0.18 or less; with SEM not revealing oxides greater than 1 
micron; and inclusion groups or clusters shall not exceed 5 microns in 
length; (C) products having one side coated with a nickel-iron-diffused 
layer which is less than 1 micrometer in thickness and the other side 
coated with a three-layer coating composed of a base nickel-iron-
diffused coating layer, with a middle coating layer of annealed and 
softened pure nickel and a surface coating layer of hard, luster-agent-
added nickel which is not heat-treated; with combined coating thickness 
for all three layers of more than 2 micrometers; surface roughness (RA-
microns) 0.18 or less; with SEM not revealing oxides greater than 1 
micron; and inclusion groups or clusters shall not exceed 5 microns in 
length; or (D) products having one side coated with a nickel-iron-
diffused layer which is less than 1 micrometer in thickness and the 
other side coated with a three-layer coating composed of a base nickel-
iron-diffused coating layer, with a middle coating layer of annealed 
and softened pure nickel and a surface coating layer of hard, pure 
nickel which is not heat-treated; with combined coating thickness for 
all three layers of more than 2 micrometers; surface roughness (RA-
microns) 0.18 or less; SEM not revealing oxides greater than 1 micron; 
and inclusion groups or clusters shall not exceed 5 microns in length. 
See Certain Corrosion-Resistant Carbon Steel Flat Products From Japan: 
Notice of Final Results of Changed Circumstances Review, and Revocation 
in Part of Antidumping Duty Order, 68 FR 19970 (Apr. 23, 2003).
    Also excluded from the scope of this order is merchandise meeting 
the following specifications: (1) Base metal: Aluminum Killed, 
Continuous Cast, Carbon Steel SAE 1008, (2) Chemical Composition: 
Carbon 0.08[percnt] max. Silicon, 0.03[percnt] max., Manganese 
0.40[percnt] max., Phosphorus, 0.020[percnt] max., Sulfur 0.020[percnt] 
max., (3) Nominal thickness of 0.054 mm, (4) Thickness tolerance 
minimum 0.0513 mm, maximum 0.0567 mm, (5) Width of 600 mm or greater, 
and (7) Nickel plate min. 2.45 microns per side. See Notice of Final 
Results of Antidumping Duty Changed Circumstances Review and 
Revocation, In Part: Certain Corrosion-Resistant Carbon Steel Flat 
Products From Japan, 70 FR 2608 (Jan. 14, 2005).
    Also excluded from the scope of this order are the following 24 
separate corrosion-resistant carbon steel coil products meeting the 
following specifications:
Product 1 Products described in industry usage as of carbon steel, 
measuring 1.625 mm to 1.655 mm in thickness and 19.3 mm to 19.7 mm in 
width, consisting of carbon steel coil (SAE 1010) with a lining clad 
with an aluminum alloy containing by weight 10[percnt] or more but not 
more than 15[percnt] of tin, 1[percnt] or more but not more than 
3[percnt] of lead, 0.7[percnt] or more but not more than 1.3[percnt] of 
copper, 1.8[percnt] or more but not more than 3.5[percnt] of silicon, 
0.1[percnt] or more but not more than 0.7[percnt] of chromium and less 
than or equal to 1[percnt] of other materials, and meeting the 
requirements of SAE standard 788 for Bearing and Bushing Alloys.
Product 2 Products described in industry usage as of carbon steel, 
measuring 0.955 mm to 0.985 mm in thickness and 8.6 mm to 9.0 mm in 
width, consisting of carbon steel coil (SAE 1012) clad with a two-layer 
lining, the first layer consisting of a copper-lead alloy powder that 
contains by weight 9[percnt] or more but not more than 11[percnt] of 
tin, 9[percnt] or more but not more than 11[percnt] of lead, less than 
0.05[percnt] phosphorus, less than 0.35[percnt] iron and less than or 
equal to 1[percnt] other materials, and meeting the requirements of SAE 
standard 797 for Bearing and Bushing Alloys, with the second layer 
containing by weight 13[percnt] or more but not more than 17[percnt] of 
carbon, 13[percnt] or more but not more than 17[percnt] of aromatic 
polyester, and the remainder (approx. 66-74[percnt]) of PTFE.
Product 3 Products described in industry usage as of carbon steel, 
measuring 1.01 mm to 1.03 mm in thickness and 10.5 mm to 10.9 mm in 
width, consisting of carbon steel coil (SAE 1010) with a two-layer 
lining, the first layer consisting of a copper-lead alloy powder that 
contains by weight 9[percnt] or more but not more than 11[percnt] of 
tin, 9[percnt] or more but not more than 11[percnt] of lead, less than 
1[percnt] zinc and less than or equal to 1[percnt] other materials, and 
meeting the requirements of SAE standard 797 for Bearing and Bushing 
Alloys, with the second layer containing by weight 45[percnt] or more 
but not more than 55[percnt] of lead, 3[percnt] or more but not more 
than 5[percnt] of molybdenum disulfide, and the remainder made up of 
PTFE (approximately 38[percnt] to 52[percnt]) and less than 2[percnt] 
in the aggregate of other materials.
Product 4 Products described in industry usage as of carbon steel, 
measuring 1.8 mm to 1.88 mm in thickness and 43.4 mm to 43.8 mm or 16.1 
mm to 1.65 mm in width, consisting of carbon steel coil (SAE 1010) clad 
with an aluminum alloy that contains by weight 19[percnt] to 20[percnt] 
tin, 1[percnt] to 1.2[percnt] copper, less than 0.3[percnt] silicon, 
0.15[percnt] nickel and less than 1[percnt] in the aggregate other 
materials and meeting

[[Page 27455]]

the requirements of SAE standard 783 for Bearing and Bushing Alloys.
Product 5 Products described in industry usage as of carbon steel, 
measuring 0.95 mm to 0.98 mm in thickness and 19.95 mm to 20 mm in 
width, consisting of carbon steel coil (SAE 1010) with a two-layer 
lining, the first layer consisting of a copper-lead alloy powder that 
contains by weight 9[percnt] or more but not more than 11[percnt] of 
tin, 9[percnt] or more but not more than 11[percnt] of lead, less than 
1[percnt] of zinc and less than or equal to 1[percnt] in the aggregate 
of other materials and meeting the requirements of SAE standard 797 for 
Bearing and Bushing Alloys, with the second layer consisting by weight 
of 45[percnt] or more but not more than 55[percnt] of lead, 3[percnt] 
or more but not more than 5[percnt] of molybdenum disulfide and with 
the remainder made up of PTFE (approximately 38[percnt] to 52[percnt]) 
and up to 2[percnt] in the aggregate of other materials.
Product 6 Products described in industry usage as of carbon steel, 
measuring 0.96 mm to 0.98 mm in thickness and 18.75 mm to 18.95 mm in 
width; base of SAE 1010 steel with a two-layer lining, the first layer 
consisting of copper-base alloy powder with chemical composition 
(percent by weight): tin 9 to 11, lead 9 to 11, phosphorus less than 
0.05, ferrous group less than 0.35, and other materials less than 
1[percnt]; meeting the requirements of SAE standard 797 for bearing and 
bushing alloys; the second layer consisting of lead 33 to 37[percnt], 
aromatic polyester 28 to 32[percnt], and other materials less than 
2[percnt] with a balance of PTFE.
Product 7 Products described in industry usage as of carbon steel, 
measuring 1.21 mm to 1.25 mm in thickness and 19.4 mm to 19.6 mm in 
width; base of SAE 1012 steel with lining of copper base alloy with 
chemical composition (percent by weight): tin 9 to 11, lead 9 to 11, 
phosphorus less than 0.05, ferrous group less than 0.35 and other 
materials less than 1[percnt]; meeting the requirements of SAE standard 
797 for bearing and bushing alloys.
Product 8 Products described in industry usage as of carbon steel, 
measuring 0.96 mm to 0.98 mm in thickness and 21.5 mm to 21.7 mm in 
width; base of SAE 1010 steel with a two-layer lining, the first layer 
consisting of copper-base alloy powder with chemical composition 
(percent by weight): tin 9 to 11, lead 9 to 11, phosphorus less than 
0.05[percnt], ferrous group less than 0.35 and other materials less 
than 1; meeting the requirements of SAE standard 797 for bearing and 
bushing alloys; the second layer consisting of (percent by weight) lead 
33 to 37, aromatic polyester 28 to 32 and other materials less than 2 
with a balance of PTFE.
Product 9 Products described in industry usage as of carbon steel, 
measuring 0.96 mm to 0.99 mm in thickness and 7.65 mm to 7.85 mm in 
width; base of SAE 1012 steel with a two-layer lining, the first layer 
consisting of copper-based alloy powder with chemical composition 
(percent by weight): tin 9 to 11, lead 9 to 11, phosphorus less than 
0.05, ferrous group less than 0.35 and other materials less than 1; 
meeting the requirements of SAE standard 797 for bearing and bushing 
alloys; the second layer consisting of (percent by weight) carbon 13 to 
17 and aromatic polyester 13 to 17, with a balance of PTFE.
Product 10 Products described in industry usage as of carbon steel, 
measuring 0.955 mm to 0.985 mm in thickness and 13.6 mm to 14 mm in 
width; base of SAE 1012 steel with a two-layer lining, the first layer 
consisting of copper-based alloy powder with chemical composition 
(percent by weight): tin 9 to 11, lead 9 to 11, phosphorus less than 
0.05, ferrous group less than 0.35 and other materials less than 1; 
meeting the requirements of SAE standard 797 for bearing and bushing 
alloys; the second layer consisting of (percent by weight) carbon 13 to 
17, aromatic polyester 13 to 17, with a balance (approximately 66 to 
74) of PTFE.
Product 11 Products described in industry usage as of carbon steel, 
measuring 1.2 mm to 1.24 mm in thickness; 20 mm to 20.4 mm in width; 
consisting of carbon steel coils (SAE 1012) with a lining of sintered 
phosphorus bronze alloy with chemical composition (percent by weight): 
tin 5.5 to 7; phosphorus 0.03 to 0.35; lead less than 1 and other non-
copper materials less than 1.
Product 12 Products described in industry usage as of carbon steel, 
measuring 1.8 mm to 1.88 mm in thickness and 43.3 mm to 43.7 mm in 
width; base of SAE 1010 steel with a lining of aluminum based alloy 
with chemical composition (percent by weight: tin 10 to 15, lead 1 to 
3, copper 0.7 to 1.3, silicon 1.8 to 3.5, chromium 0.1 to 0.7 and other 
materials less than 1; meeting the requirements of SAE standard 788 for 
bearing and bushing alloys.
Product 13 Products described in industry usage as of carbon steel, 
measuring 1.8 mm to 1.88 mm in thickness and 24.2 mm to 24.6 mm in 
width; base of SAE 1010 steel with a lining of aluminum alloy with 
chemical composition (percent by weight): tin 10 to 15, lead 1 to 3, 
copper 0.7 to 1.3, silicon 1.8 to 3.5, chromium 0.1 to 0.7 and other 
materials less than 1; meeting the requirements of SAE standard 788 for 
bearing and bushing alloys.
Product 14 Flat-rolled coated SAE 1009 steel in coils, with thickness 
not less than 0.915 mm but not over 0.965 mm, width not less than 19.75 
mm or more but not over 20.35 mm; with a two-layer coating; the first 
layer consisting of tin 9 to 11[percnt], lead 9 to 11[percnt], zinc 
less than 1[percnt], other materials (other than copper) not over 
1[percnt] and balance copper; the second layer consisting of lead 45 to 
55[percnt], molybdenum disulfide (MoS2) 3 to 5[percnt], other materials 
not over 2[percnt], balance PTFE.
Product 15 Flat-rolled coated SAE 1009 steel in coils with thickness 
not less than 0.915 mm or more but not over 0.965 mm; width not less 
than 18.65 mm or more but not over19.25 mm; with a two-layer coating; 
the first layer consisting of tin 9 to 11[percnt], lead 9 to 
11[percnt], zinc less than 1[percnt], other materials (other than 
copper) not over 1[percnt], balance copper; the second layer consisting 
of lead 33 to 37[percnt], aromatic polyester 13 to 17[percnt], other 
materials other than PTFE less than 2[percnt], balance PTFE.
Product 16 Flat-rolled coated SAE 1009 steel in coils with thickness 
not less than 0.920 mm or more but not over 0.970 mm; width not less 
than 21.35 mm or more but not over 21.95 mm; with a two-layer coating; 
the first layer consisting of tin 9 to 11[percnt], lead 9 to 
11[percnt], zinc less than 1[percnt], other materials (other than 
copper) not over 1[percnt], balance copper; the second layer consisting 
of lead 33 to 37[percnt], aromatic polyester 13 to 17[percnt], other 
materials (other than PTFE) less than 2[percnt], balance PTFE.
Product 17 Flat-rolled coated SAE 1009 steel in coils with thickness 
not less than 1.80 mm or more but not over 1.85 mm, width not less than 
14.7 mm or more but not over 15.3 mm; with a lining consisting of tin 
2.5 to 4.5[percnt], lead 21.0 to 25.0[percnt], zinc less than 
3[percnt], iron less than 0.35[percnt], other materials (other than 
copper) less than 1[percnt], balance copper.
Product 18 Flat-rolled coated SAE 1009 steel in coils with thickness 
1.59 mm or more but not over 1.64 mm; width 14.5 mm or more but not 
over 15.1 mm; with a lining consisting of tin 2.3 to 4.2[percnt], lead 
20 to 25[percnt], iron 1.5 to 4.5[percnt], phosphorus 0.2 to 
2.0[percnt], other materials (other than copper) less than 1[percnt], 
balance copper.
Product 19 Flat-rolled coated SAE 1009 steel in coils with thickness 
not less than 1.75 mm or more but not over 1.8 mm; width not less than 
18.0 mm or

[[Page 27456]]

more but not over 18.6 mm; with a lining consisting of tin 2.3 to 
4.2[percnt], lead 20 to 25[percnt], iron 1.5 to 4.5[percnt], phosphorus 
0.2 to 2.0[percnt], other materials (other than copper) less than 
1[percnt], balance copper.
Product 20 Flat-rolled coated SAE 1009 steel in coils with thickness 
1.59 mm or more but not over 1.64 mm; width 13.6 mm or more but not 
over 14.2 mm; with a lining consisting of tin 2.3 to 4.2[percnt], lead 
20 to 25[percnt], iron 1.5 to 4.5[percnt], phosphorus 0.2 to 
2.0[percnt], other materials (other than copper) less than 1[percnt], 
with a balance copper.
Product 21 Flat-rolled coated SAE 1009 steel in coils with thickness 
1.59 mm or more but not over 1.64 mm; width 11.5 mm or more but not 
over 12.1 mm; with a lining consisting of tin 2.3 to 4.2[percnt], lead 
20 to 25[percnt], iron 1.5 to 4.5[percnt], phosphorus 0.2 to 
2.0[percnt], other materials (other than copper) less than 1[percnt], 
balance copper.
Product 22 Flat-rolled coated SAE 1009 steel in coils with thickness 
1.59 mm or more but not over 1.64 mm; width 11.2 mm or more but not 
over 11.8 mm, with a lining consisting of copper 0.7 to 1.3[percnt], 
tin 17.5 to 22.5[percnt], silicon less than 0.3[percnt], nickel less 
than 0.15[percnt], other materials less than 1[percnt], balance 
aluminum.
Product 23 Flat-rolled coated SAE 1009 steel in coils with thickness 
1.59 mm or more but not over 1.64 mm; width 7.2 mm or more but not over 
7.8 mm; with a lining consisting of copper 0.7 to 1.3[percnt], tin 17.5 
to 22.5[percnt], silicon less than 0.3[percnt], nickel less than 
0.15[percnt], other materials (other than copper) less than 1[percnt], 
balance copper.
Product 24 Flat-rolled coated SAE 1009 steel in coils with thickness 
1.72 mm or more but not over 1.77 mm; width 7.7 mm or more but not over 
8.3 mm; with a lining consisting of copper 0.7 to 1.3[percnt], tin 17.5 
to 22.5[percnt], silicon less than 0.3[percnt], nickel less than 
0.15[percnt], other materials (other than copper) less than 1[percnt], 
balance copper. See Notice of Final Results of Antidumping Duty Changed 
Circumstances Review and Revocation, in Part: Certain Corrosion-
Resistant Carbon Steel Flat Products From Japan, 70 FR 5137 (Feb. 1, 
2005).

Adverse Facts Available

    On December 9, 2005, Nippon Steel responded to the Department's 
questionnaire with a letter stating they would not participate in the 
AR. On January 17, 2006, the Department issued a letter to Nippon Steel 
stating that nonparticipation could result in the application of AFA 
pursuant to section 776(a) and (b) of the Act. See Letter to Nippon 
Steel: Nonparticipation in Administrative Review (A-588-824), Jan. 17, 
2006. Since its December 9, 2005, letter, Nippon steel has not 
responded further to the questionnaire nor otherwise participated in 
this review.
    Section 776(a)(2) of the Act provides that the Department shall use 
facts available (``FA'') when a party withholds information that has 
been requested by the Department; does not provide the Department with 
information by the established deadline or in the form and manner 
requested by the Department; significantly impedes a proceeding; or 
provides such information but the information cannot be verified. 
Because of Nippon Steel's refusal to participate in this AR, the 
Department must make its determination based upon FA.
    In addition, section 776(b) of the Act provides that adverse 
inferences may be used in selecting from among facts otherwise 
available when a party has failed to cooperate by not acting to the 
best of its ability to comply with requests for information. See 
Statement of Administrative Action Accompanying the Uruguay Round 
Agreements Act, H.R. Rep. No. 103-316, at 870, (1994) (``SAA''), 
reprinted in 1994 U.S.C.C.A.N. 4040, 4198-4199; Nippon Steel Corp. v. 
United States, 337 F.3d. 1373, 1380-1383 (Fed. Cir. 2003). Nippon 
Steel's refusal to participate demonstrates that Nippon Steel has 
failed to act to the best of its ability, as described in section 
776(b) of the Act. Thus, we have determined to apply an adverse 
inference in the selection of FA.
    When applying an adverse inference, section 776(b) of the Act 
authorizes the Department to use, as AFA, information derived from the 
petition, a final investigation determination, a previous 
administrative review, or any other information placed on the record 
(so-called ``secondary information''). No preference among the four 
alternatives is suggested by section 776(b) of the Act; the only 
requirement is that secondary information relied upon must be 
corroborated ``to the extent practicable'' with information that is 
``reasonably'' at the Department's disposal. In reviews, it is the 
Department's practice to select, as AFA, the highest rate determined 
for any respondent in any segment of the proceeding. See, e.g., Notice 
of Final Results of Antidumping Duty Administrative Review and Final 
Partial Rescission: Certain Cut-to-Length Carbon Steel Plate from 
Romania, 71 FR 7008, 7010-11 (Feb. 10, 2006), and accompanying Issues 
and Decision Memorandum, Issue 1; Freshwater Crawfish Tail Meat from 
the People's Republic of China; Notice of Final Results of Antidumping 
Duty Administrative Review, 68 FR 19504, 19506 (Apr. 21, 2003) (citing 
Freshwater Crawfish Tail Meat from the People's Republic of China; 
Notice of Final Results of Antidumping Duty Administrative Review, and 
Final Partial Rescission of Antidumping Duty Administrative Review, 67 
FR 19546 (Apr. 22, 2002)). The U.S. Court of International Trade 
(``CIT'') and the U.S. Court of Appeals for the Federal Circuit 
(``Federal Circuit'') have consistently upheld this practice. See Ta 
Chen Stainless Steel Pipe, Inc. v. United States, 298 F.3d 1330,1339 
(Fed. Cir. 2002) (citing Rhone Poulenc, Inc. v. United States, 899 F.2d 
1185, 1190 (Fed. Cir. 1990)); NSK Ltd. v. United States, 346 F. Supp. 
2d 1312, 1335 (CIT 2004) (upholding a 73.55 percent total AFA rate, the 
highest available dumping margin from a different respondent in a less-
than-fair-value (``LTFV'') investigation); Kompass Food Trading Int'l 
v. United States, 24 CIT 678, 682-84 (2000) (upholding a 51.16 percent 
total AFA rate, the highest available dumping margin from a different, 
fully cooperative respondent); Shanghai Taoen International Trading 
Co., Ltd. v. United States, 360 F. Supp. 2d. 1339, 1347-48 (CIT 2005) 
(upholding a 223.01percent total AFA rate, the highest available 
dumping margin from a different respondent in a previous administrative 
review).
    The Department's practice, when selecting an AFA rate from among 
the possible sources of information, has been to ensure that the margin 
is sufficiently adverse ``as to effectuate the statutory purposes of 
the adverse facts available rule to induce respondents to provide the 
Department with complete and accurate information in a timely manner.'' 
See, e.g., Carbon and Certain Alloy Steel Wire Rod from Brazil: Notice 
of Final Determination of Sales at Less Than Fair Value and Final 
Negative Critical Circumstances, 67 FR 55792 (Aug. 30, 2002); Static 
Random Access Memory Semiconductors from Taiwan: Final Determination of 
Sales at Less than Fair Value, 63 FR 8909 (Feb. 23, 1998). 
Additionally, the Department's practice has been to assign the highest 
margin determined for any party in the LTFV investigation or in any 
administrative review of a specific order to respondents who have 
failed to cooperate with the Department. See, e.g., Sigma Corp. v. 
United States, 117 F.3d 1401, 1411 (Fed. Cir. 1997).
    In order to ensure that the margin is sufficiently adverse so as to 
induce Nippon Steel's cooperation, the Department is assigning an AFA 
rate of 36.41 percent ad valorem, the highest rate determined in this 
proceeding, and the margin calculated for Nippon in the

[[Page 27457]]

original LTFV investigation using information provided by Nippon. See 
Antidumping Duty Orders: Certain Corrosion-Resistant Carbon Steel Flat 
Products From Japan, 58 FR 44163 (Aug. 19, 1993) (``AD Orders from 
Japan'').
    Section 776(c) of the Act provides that the Department shall, to 
the extent practicable, corroborate ``secondary information'' used for 
FA by reviewing independent sources reasonably at its disposal. 
Secondary information is information derived from the petition that 
gave rise to the investigation or review, the final determination 
concerning the subject merchandise, or any previous review under 
section 751of the Act, concerning the subject merchandise. See SAA at 
870. Thus, information from a prior segment of the proceeding, such as 
that used here, constitutes secondary information. See, e.g., Anhydrous 
Sodium Metasilicate from France: Preliminary Results of Antidumping 
Duty Administrative Review, 68 FR 44283 (July 28, 2003) (``Anhydrous 
Sodium'') (unchanged in final).
    The SAA provides that to ``corroborate'' means that the Department 
will satisfy itself that the secondary information to be used has 
probative value. See SAA at 870. To the extent practicable, the 
Department will examine the reliability and relevance of the 
information to be used. Unlike other types of information, such as 
input costs or selling expenses, there are no independent sources from 
which the Department can derive calculated dumping margins. The only 
source for dumping margins is administrative determinations. In an 
administrative review, if the Department chooses as AFA a calculated 
dumping margin from a prior segment of the proceeding, it is not 
necessary to question the reliability of the margin for that period. 
See, Anhydrous Sodium, 68 FR at 44284. In this case, the Department is 
using a calculated dumping margin from a prior segment of the 
proceeding, namely the investigation. Because this margin is being 
applied to the company for which it was originally calculated, the 
Department finds that using this rate is appropriate.
    In making a determination as to the relevance aspect of 
corroboration, the Department will consider information reasonably at 
its disposal regarding whether circumstances exist that would render 
the chosen margin irrelevant. To do so, the Department conducted 
research in an attempt to find data to corroborate the secondary 
information. We were unable to find any useful information. See 
Memorandum to the File from Christopher Hargett through James Terpstra, 
``Research for Corroboration for Preliminary Results of the 
Administrative Review for Corrosion Resistant Steel Flat Products from 
Japan'' (May 3, 2006).
    Further, there is no evidence indicating that the margin used as 
AFA in this review is not appropriate. See Fresh Cut Flowers from 
Mexico: Final Results of Antidumping Duty Administrative Review, 61 FR 
6812 (Feb. 22, 1996) (discarding the highest margin because it was 
based on another company's uncharacteristic business expenses); D&L 
Supply Co. v. United States, 113 F.3d 1220, 1224 (Fed. Cir. 1997) (the 
Department will not use a margin that has been judicially invalidated). 
Absent any other information, we find the calculated rate from the 
investigation to be appropriate in this case. Therefore, the 
requirements of section 776(c) of the Act are satisfied, and we 
determine that the 36.41 percent margin calculated in the LTFV 
investigation is appropriate as AFA and are assigning it to Nippon 
Steel.
The preliminary dumping margin is as follows:

------------------------------------------------------------------------
                                                        Dumping Margin
           Producer/manufacturer/exporter                  (percent)
------------------------------------------------------------------------
Nippon Steel........................................               36.41
------------------------------------------------------------------------

Public Comment

    Pursuant to 19 CFR 351.309, interested parties may submit written 
comments in response to these preliminary results. Case briefs must be 
submitted within 30 days after the date of publication of this notice, 
and rebuttal briefs, limited to arguments raised in case briefs, must 
be submitted no later than five days after the time limit for filing 
case briefs. Parties who submit argument in this proceeding are 
requested to submit with the argument: (1) a statement of the issue, 
and (2) a brief summary of the argument. Case and rebuttal briefs must 
be served on interested parties in accordance with 19 CFR 351.303(f). 
Also, pursuant to 19 CFR 351.310, within 30 days of the date of 
publication of this notice, interested parties may request a public 
hearing on arguments to be raised in the case and rebuttal briefs. 
Unless the Secretary specifies otherwise, the hearing, if requested, 
will be held two days after the date for submission of rebuttal briefs, 
that is, thirty-seven days after the date of publication of these 
preliminary results. The Department will publish the final results of 
this administrative review, including the results of its analysis of 
issues raised in any case or rebuttal brief or at a hearing not later 
than 120 days after the date of publication of these preliminary 
results.

Duty Assessment

    Upon publication of the final results of this review, the 
Department will instruct CBP to assess antidumping duties on all 
appropriate entries. Because we are applying AFA to all exports of 
subject merchandise produced or exported by Nippon Steel, we will 
instruct CBP to assess the final percentage margin against the entered 
customs values on all applicable entries during the period of review. 
The Department will issue appropriate assessment instructions directly 
to CBP within 15 days of publication of the final results of this 
review.
    The Department clarified its ``automatic assessment'' regulation on 
May 6, 2003 (68 FR 23954). This clarification will apply to entries of 
subject merchandise during the POR produced by companies included in 
these preliminary results of review for which the reviewed companies 
did not know their merchandise was destined for the United States, as 
well as any companies for which we are rescinding the review based on 
claims of no shipments. In such instances, we will instruct CBP to 
liquidate unreviewed entries at the All-Others rate if there is no rate 
for the intermediate company(ies) involved in the transaction. For a 
full discussion of this clarification, see Antidumping and 
Countervailing Duty Proceedings: Assessment of Antidumping Duties, 68 
FR 23954 (May 6, 2003).

Cash Deposit Requirements

    The following cash deposit requirements will be effective for all 
shipments of the subject merchandise from Japan entered, or withdrawn 
from warehouse, for consumption on or after the date of publication of 
the final results of this administrative review, as provided by section 
751(a)(1) of the Act: (1) The cash deposit rate for the reviewed 
company will be the rate established in the final results of this 
review; (2) for previously reviewed or investigated companies not 
listed above, the cash deposit rate will continue to be the company-
specific rate published for the most recent period; (3) if the exporter 
is not a firm covered in this review, a prior review, or the original 
LTFV investigation, but the manufacturer is, the cash deposit rate will 
be the rate established for the most recent period for the manufacturer 
of the merchandise; and (4) the cash deposit rate for all other 
manufacturers or exporters will be 36.41 percent, the

[[Page 27458]]

``All-Others'' rate established in the LTFV investigation.

Notification to Importers

    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 351.402(f) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    This administrative review and notice is in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: May 3, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E6-7223 Filed 5-10-06; 8:45 am]
BILLING CODE 3510-DS-S