[Federal Register Volume 73, Number 109 (Thursday, June 5, 2008)]
[Notices]
[Pages 31961-31964]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-12603]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-533-820]


Certain Hot-Rolled Carbon Steel Flat Products From India: Notice 
of Final Results of Antidumping Duty Administrative Review

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

SUMMARY: On December 31, 2007, the Department of Commerce (the 
Department) published the preliminary results of the antidumping duty 
administrative review for certain hot-rolled carbon steel flat products 
from India. See Certain Hot-Rolled Carbon Steel Flat Products From 
India: Notice of Preliminary Results of Antidumping Duty Administrative 
Review, 72 FR 74267 (December 31, 2007) (Preliminary Results). This 
review covers four \1\ manufacturers and exporters (respondents) of the 
subject merchandise: Ispat, Tata, JSW, and Essar. The period of review 
(POR) is December 1, 2005 through November 30, 2006.
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    \1\ Ispat Industries Limited (Ispat), Essar Steel Limited 
(Essar), JSW Steel Limited (JSW), and Tata Steel Limited (Tata 
Steel) (collectively, respondents).
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    Based on our analysis of the comments received, we have made 
changes to the margin calculations. Therefore, the final results differ 
from the preliminary results. The final weighted-average dumping 
margins for the reviewed firms are listed below in the section entitled 
``Final Results of Review.''

EFFECTIVE DATE: June 5, 2008.

FOR FURTHER INFORMATION CONTACT: Christopher Hargett (Ispat), Joy Zhang 
(Tata Steel), Stephanie Moore (JSW) or

[[Page 31962]]

Victoria Cho (Essar), 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) 482-1168, (202) 482-3692, and 
(202) 482-5075, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On December 31, 2007, the Department published the Preliminary 
Results. Since the Preliminary Results, the following events have 
occurred. From January 28 through February 1, 2008, we verified the 
sales questionnaire responses of Tata, JSW and Ispat. From February 4 
through 8, 2008, we verified Ispat's cost questionnaire response. On 
March 12 and 13, 2008 the Department issued its verification reports. 
We provided the interested parties an opportunity to comment on the 
Preliminary Results and the Department's verification findings.
    On April 4, 2008, United States Steel Corporation (U.S. Steel) and 
Nucor Corporation (Nucor) (collectively, petitioners) filed case 
briefs. On April 4, 2008, Essar and JSW filed case briefs. On April 11, 
2008, petitioners filed rebuttal briefs. Also, on April 11, 2008, 
Ispat, Essar, JSW, and Tata filed rebuttal briefs.
    On April 7, 2008, the Department published the notice of extension 
of final results of the antidumping administrative review of certain 
hot-rolled carbon steel flat products from India, extending the 
deadline for these final results to no later than May 14, 2008. See 
Certain Hot-Rolled Carbon Steel Flat Products From India: Extension of 
Time Limits for the Final Results of Antidumping Duty Administrative 
Review, 73 FR 18753 (April 7, 2008). The Department published a second 
notice extending the deadline for these final results to no later than 
May 30, 2008. See Certain Hot-Rolled Carbon Steel Flat Products From 
India: Extension of Time Limits for the Final Results of Antidumping 
Duty Administrative Review, 73 FR 28100 (May 15, 2008).

Scope of the Order

    The merchandise subject to this order is hot-rolled carbon steel 
products of a rectangular shape, of a width of 0.5 inch or greater, 
neither clad, plated, nor coated with metal and whether or not painted, 
varnished, or coated with plastics or other non-metallic substances, in 
coils (whether or not in successively superimposed layers), regardless 
of thickness, and in straight lengths, of a thickness of less than 4.75 
mm and of a width measuring at least 10 times the thickness. Universal 
mill plate (i.e., flat-rolled products rolled on four faces or in a 
closed box pass, of a width exceeding 150 mm, but not exceeding 1250 
mm, and of a thickness of not less than 4 mm, not in coils and without 
patterns in relief) of a thickness not less than 4.0 mm is not included 
within the scope of this order.
    Specifically included in the scope of this order are vacuum-
degassed, fully stabilized (commonly referred to as interstitial-free 
(IF)) steels, high-strength low-alloy (HSLA) steels, and the substrate 
for motor lamination steels. IF steels are recognized as low-carbon 
steels with micro-alloying levels of elements such as titanium or 
niobium (also commonly referred to as columbium), or both, added to 
stabilize carbon and nitrogen elements. HSLA steels are recognized as 
steels with micro-alloying levels of elements such as chromium, copper, 
niobium, vanadium, and molybdenum. The substrate for motor lamination 
steels contains micro-alloying levels of elements such as silicon and 
aluminum.
    Steel products included in the scope of this order, regardless of 
definitions in the Harmonized Tariff Schedule of the United States 
(HTS), are products in which: (i) iron predominates, by weight, over 
each of the other contained elements; (ii) the carbon content is 2 
percent or less, by weight; and (iii) none of the elements listed below 
exceeds the quantity, by weight, respectively indicated:

1.80 percent of manganese, or
2.25 percent of silicon, or
1.00 percent of copper, or
0.50 percent of aluminum, or
1.25 percent of chromium, or
0.30 percent of cobalt, or
0.40 percent of lead, or
1.25 percent of nickel, or
0.30 percent of tungsten, or
0.10 percent of molybdenum, or
0.10 percent of niobium, or
0.15 percent of vanadium, or
0.15 percent of zirconium.

    All products that meet the physical and chemical description 
provided above are within the scope of this order unless otherwise 
excluded. The following products, by way of example, are outside or 
specifically excluded from the scope of this order:
     Alloy hot-rolled carbon steel products in which at least 
one of the chemical elements exceeds those listed above (including, 
e.g., American Society for Testing and Materials (ASTM) specifications 
A543, A387, A514, A517, A506)).
     Society of Automotive Engineers (SAE)/American Iron & 
Steel Institute (AISI) grades of series 2300 and higher.
     Ball bearings steels, as defined in the HTS.
     Tool steels, as defined in the HTS.
     Silico-manganese (as defined in the HTS) or silicon 
electrical steel with a silicon level exceeding 2.25 percent.
     ASTM specifications A710 and A736.
     United States Steel (USS) Abrasion-resistant steels (USS 
AR 400, USS AR 500).
     All products (proprietary or otherwise) based on an alloy 
ASTM specification (sample specifications: ASTM A506, A507).
     Non-rectangular shapes, not in coils, which are the result 
of having been processed by cutting or stamping and which have assumed 
the character of articles or products classified outside chapter 72 of 
the HTS.
    The merchandise subject to this order is currently classifiable in 
the HTS at subheadings: 7208.10.15.00, 7208.10.30.00, 7208.10.60.00, 
7208.25.30.00, 7208.25.60.00, 7208.26.00.30, 7208.26.00.60, 
7208.27.00.30, 7208.27.00.60, 7208.36.00.30, 7208.36.00.60, 
7208.37.00.30, 7208.37.00.60, 7208.38.00.15, 7208.38.00.30, 
7208.38.00.90, 7208.39.00.15, 7208.39.00.30, 7208.39.00.90, 
7208.40.60.30, 7208.40.60.60, 7208.53.00.00, 7208.54.00.00, 
7208.90.00.00, 7211.14.00.90, 7211.19.15.00, 7211.19.20.00, 
7211.19.30.00, 7211.19.45.00, 7211.19.60.00, 7211.19.75.30, 
7211.19.75.60, and 7211.19.75.90. Certain hot-rolled carbon steel 
covered by this order, including: vacuum-degassed fully stabilized; 
high-strength low-alloy; and the substrate for motor lamination steel 
may also enter under the following tariff numbers: 7225.11.00.00, 
7225.19.00.00, 7225.30.30.50, 7225.30.70.00, 7225.40.70.00, 
7225.99.00.90, 7226.11.10.00, 7226.11.90.30, 7226.11.90.60, 
7226.19.10.00, 7226.19.90.00, 7226.91.50.00, 7226.91.70.00, 
7226.91.80.00, and 7226.99.00.00. Subject merchandise may also enter 
under 7210.70.30.00, 7210.90.90.00, 7211.14.00.30, 7212.40.10.00, 
7212.40.50.00, and 7212.50.00.00. Although the HTS subheadings are 
provided for convenience and customs purposes, the Department's written 
description of the merchandise subject to this order is dispositive.

[[Page 31963]]

Affiliation

    As stated in the Preliminary Results, Nucor alleged that JSW is 
affiliated with the O.P. Jindal Group, pursuant to section 771(33) of 
the Tariff Act of 1930, as amended (the Act), and that they should be 
collapsed. The Department preliminarily determined that JSW is 
affiliated with the O.P. Jindal Group under sections 771(33)(A) and (F) 
of the Act, as they are under the common control of a family group. See 
Preliminary Results, at 74268. However, the evidence on the record did 
not indicate that the other companies in the O.P. Jindal Group have 
production facilities which would not require substantial retooling for 
producing similar or identical products. Thus, we did not find that the 
criteria for collapsing JSW into the O.P. Jindal Group had been 
satisfied.
    We continue to find that JSW is affiliated with the O.P. Jindal 
Group, but there still is no evidence on the record that indicates that 
any of the other companies in the group produces the subject 
merchandise at its own facility or could produce the merchandise 
without substantially retooling their facilities, or that any other 
company in the group besides JSW sells the subject merchandise.
    Regarding JSW's affiliation with another steel company as alleged 
by Nucor, the Department preliminarily determined that the companies 
are not affiliated. See Preliminary Results, at 74269. Although the 
Department finds that there is a long-standing business relationship 
between these entities, the Department does not find that control 
exists where one person is legally or operationally in a position to 
exercise restraint or direction over the other person and the 
relationship has the potential to impact decisions concerning the 
production, pricing, or cost of the subject merchandise or foreign like 
product. See section 771(33) of the Act and 19 CFR 351.102(b). 
Therefore, we continue to find that there is no affiliation between JSW 
and the other steel company.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs 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 Internet 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:

------------------------------------------------------------------------
       Producer/manufacturer               Weighted-average margin
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Ispat..............................  0.00%.
Tata Steel.........................  0.09% (de minimis).
JSW................................  0.24% (de minimis).
Essar..............................  5.22%.
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Assessment Rates

    The Department shall determine, and U.S. Customs and Border 
Protection (CBP) shall assess, antidumping duties on all appropriate 
entries. In accordance with 19 CFR 351.212(b)(1), where the rate is 
above de minimis, we will issue importer-specific assessment 
instructions for entries of subject merchandise during the POR. The 
Department will issue appropriate assessment instructions directly to 
CBP 15 days after publication of the final results of 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 Tata, JSW, Ispat and 
Essar for which they did not know their merchandise was destined for 
the United States. In such instances, we will instruct CBP to liquidate 
any 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 deposit requirements will be effective upon 
publication of this notice of final results of administrative review 
for all shipments of hot-rolled carbon steel flat products from India 
entered, or withdrawn from warehouse, for consumption on or after the 
publication date of the final results, as provided by sections 
751(a)(1) and (a)(2)(C) of 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 
manufacturer has its own rate, the cash deposit rate will be 38.72 
percent, the all-others rate published in the Notice of Amended Final 
Antidumping Duty Determination of Sales at Less Than Fair Value and 
Antidumping Duty Order: Certain Hot-Rolled Carbon Steel Flat Products 
from India, 66 FR 60194 (December 3, 2001).\2\ These deposit 
requirements shall remain in effect until further notice.
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    \2\ The all-others cash deposit rate, applied by CBP, is reduced 
to account for the export subsidy rate found in the countervailing 
duty investigation. The adjusted all-others rate is 23.87 percent.
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Notification to Importers

    This notice 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 period of review. 
Failure to comply with this requirement could result in the 
Department's presumption that reimbursement of antidumping and/or 
countervailing duties occurred and the subsequent assessment of doubled 
antidumping and or countervailing duties.

Notification Regarding APOs

    This notice also serves as a reminder to parties subject to 
administrative protective orders (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO as explained in the APO itself. See 19 CFR 351.305(a)(3). 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 terms of an APO is a sanctionable 
violation.
    We are publishing these final results of administrative review and 
notice in accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: May 30, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.

APPENDIX I

    List of Comments in the Accompanying Issues and Decision 
Memorandum

Tata Steel Limited

Comment 1: Application of Partial Adverse

[[Page 31964]]

Facts Available (AFA) to Tata's Reported Costs
Comment 2: Sales of Overruns in the Home Market
Comment 3: U.S. Credit Expense Calculations
Comment 4: Procurement Expenses
Comment 5: Deduction of DINDIRSU from CEP
Comment 6: Deduction of CEP Profit
Comment 7: Home Market Indirect Selling Expense Calculations

JSW Steel

Comment 8: Home Market Deduction of Taxes
Comment 9: Deduction of Antidumping and Countervailing Duty Deposits
Comment 10: Application of AFA for JSW
Comment 11: Finding Affiliation Based on AFA for JSW
Comment 12: Collapsing of the O.P. Jindal Group

Ispat Steel Limited

Comment 13: Date of Sale
Comment 14: Freight Charges in Home Market Sales
Comment 15: Treatment of Inland Freight
Comment 16: Calculation of Indirect Selling Expense
Comment 17: Calculation of General and Administrative Expenses

Essar Steel Co. Ltd.

Comment 18: Duty Drawback
Comment 19: Level of Trade
Comment 20: Countervailing Duty Offset
Comment 21: Treatment U.S. Date of Sale
Comment 22: Treatment of U.S. Credit Expense
Comment 23: Treatment of Sales Tax
Comment 24: U.S. Indirect Selling Expenses
Comment 25: DINDIRSU for CEP Sales
Comment 26: CEP Offset
Comment 27: Treatment of Rebates
Comment 28: Home Market Indirect Selling Expenses
Comment 29: Treatment of Commission

[FR Doc. E8-12603 Filed 6-4-08; 8:45 am]
BILLING CODE 3510-DS-P