[Federal Register Volume 73, Number 250 (Tuesday, December 30, 2008)]
[Notices]
[Pages 79809-79814]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-30993]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-549-817]


Certain Hot-Rolled Carbon Steel Flat Products from Thailand: 
Preliminary Results of Changed Circumstances Review and Intent To 
Reinstate Sahaviriya Steel Industries Public Company Limited in the 
Antidumping Duty Order

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On May 17, 2006, the Department of Commerce (``the 
Department'') revoked in part the antidumping duty order on certain 
hot-rolled carbon steel flat products (``hot-rolled steel'') from 
Thailand with respect to Sahaviriya Steel Industries Public Company 
Limited (``SSI'') after having determined that SSI sold the merchandise 
at not less than normal value (``NV'') for a period of at least three 
consecutive years. See Certain Hot-Rolled Carbon Steel Flat Products 
from Thailand: Final Results of Antidumping Duty Administrative Review, 
Partial Revocation of Antidumping Duty Order and Partial Rescission of 
Antidumping Duty Administrative Review, 71 FR 28659 (May 17, 2006) 
(``Revocation''). As the result of an adequate allegation from a 
domestic interested party in this proceeding, the Department, pursuant 
to section 751(b)(1) of the Tariff Act of 1930, as amended (``the 
Act''), is now conducting a changed circumstances review to determine 
whether SSI has resumed dumping hot-rolled steel and whether the 
antidumping order should be reinstated for hot-rolled steel from 
Thailand manufactured and exported by SSI. See Initiation of 
Antidumping Duty Changed Circumstances Review: Certain Hot-Rolled 
Carbon Steel Flat Products from Thailand, 73 FR 18766 (April 7, 2008) 
(``Initiation Notice''). We preliminarily determine that SSI has sold 
hot-rolled steel at less than NV and that hot-rolled steel produced and 
exported by SSI should be reinstated in the antidumping duty order on 
hot-rolled steel from Thailand. We will instruct U.S. Customs and 
Border Protection (``CBP'') to suspend liquidation of all entries of 
hot-rolled steel manufactured and exported by SSI and entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register.

FOR FURTHER INFORMATION CONTACT: John Drury or Angelica Mendoza, AD/CVD 
Operations, Office 7, Import

[[Page 79810]]

Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue NW, Washington, DC 20230; 
telephone: (202) 482-0195 or (202) 482-3019, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On November 29, 2001, the Department published the antidumping duty 
order on hot-rolled steel from Thailand. See Antidumping Duty Order: 
Certain Hot-Rolled Carbon Steel Flat Products From Thailand, 66 FR 
59562 (November 29, 2001) (``Hot-Rolled Steel Order''). In November 
2004, in the course of the 2003-2004 administrative review, SSI 
requested revocation of the Hot-Rolled Steel Order with respect to its 
sales of subject merchandise. See Certain Hot-Rolled Carbon Steel Flat 
Products From Thailand; Preliminary Results of Antidumping Duty 
Administrative Review and Intent to Revoke and Rescind in Part, 70 FR 
73197 (December 9, 2005).
    In its revocation request, SSI agreed to immediate reinstatement in 
the Hot-Rolled Steel Order, as long as any producer or reseller is 
subject to the order, should the Department determine that SSI ``sold 
the subject merchandise at less than normal value.'' See SSI's November 
30, 2004, letter to the Department requesting revocation. On May 17, 
2006, the Department revoked the antidumping duty order with respect to 
SSI under 19 C.F.R. 351.222(e)(1) and 351.222(f) after having 
determined that SSI sold merchandise subject to this review at not less 
than NV for a period of at least three consecutive years.\1\ See 
Revocation.
---------------------------------------------------------------------------

    \1\ The three administrative reviews forming the basis of the 
revocation are: 1) the May 3, 2001, through October 31, 2002, 
review, Certain Hot-Rolled Carbon Steel Flat Products From Thailand: 
Final Results and Partial Rescission of Antidumping Duty 
Administrative Review, 69 FR 19388 (April 13, 2004); 2) the November 
1, 2002, through October 31, 2003, review, Certain Hot-Rolled Carbon 
Steel Flat Products from Thailand: Rescission of Antidumping Duty 
Administrative Review, 69 FR 18349 (April 7, 2004); and 3) the 
November 1, 2003, through October 31, 2004, review, Revocation.
---------------------------------------------------------------------------

    On November 8, 2006, United States Steel Corporation 
(``Petitioner'') submitted an allegation arguing that SSI has resumed 
dumping hot-rolled steel in the United States since revocation from the 
Hot-Rolled Steel Order, and requested that the Department initiate a 
changed circumstances review. See Petitioner's November 8, 2006, letter 
to the Department. Petitioner requested that the Department reinstate 
the Hot-Rolled Steel Order with respect to SSI's exports to the United 
States of hot-rolled steel produced by SSI. The Department requested 
additional information from Petitioner on December 1, 2006, December 
22, 2006, February 1, 2007, and December 11, 2007. Petitioner filed 
responses to the Department's request for additional information on 
December 5, 2006, January 12, 2007, February 26, 2007, and January 29, 
2008, respectively.
    In its February 1, 2007, request for additional information, the 
Department requested that Petitioner update its U.S., home market, and 
cost data for SSI for the period October 1, 2005 through September 30, 
2006. See the Department's February 1, 2007, request for additional 
information at question 1. In its February 26, 2007, response, 
Petitioner updated its request by using the time period October 1, 
2005, through September 30, 2006, for its margin analysis as requested 
by the Department. Petitioner also utilized a Kim Eng Live (``Kelive'') 
Market Analysis report dated February 14, 2007, to value slab for use 
in constructed value (``CV'') because it could not find home market or 
third country prices for hot-rolled steel for the period October 1, 
2005, through September 30, 2006, to use as the basis for NV. See 
Exhibit 2, pages 1-4 of Petitioner's February 26, 2007, submission.
    On May 11, 2007, the Department met with Petitioner to discuss its 
request for a changed circumstances review for SSI. See Memorandum to 
the File, dated May 14, 2007. On September 27, 2007, Petitioner 
submitted slab cost data for SSI from two sources independent of the 
Kelive Market Analysis. On November 20, 2007, the Department released 
to parties information regarding its inquiries into Petitioner's use of 
slab cost from the Kelive Market Analysis. See the Department's 
November 20, 2007, Memorandum to the File and accompanying e-mail 
attachments.
    On December 11, 2007, the Department requested that Petitioner 
update its changed circumstances review request to use more 
contemporaneous information for its margin analysis (i.e., July 1, 
2006, through June 30, 2007). Additionally, the Department requested 
that Petitioner update its request for the October 1, 2005, through 
September 30, 2006, period using the two sources of data provided in 
its September 27, 2007, submission to value steel slab. See the 
Department's December 11, 2007, request for additional information at 
question 1. In its January 29, 2008, response, Petitioner updated its 
review request pursuant to the requests of the Department and based its 
amended allegation on sales and cost information for the period of 
review July 1, 2006, through June 30, 2007.
    In its January 29, 2008, submission, Petitioner provided price 
quotes concerning SSI's sales activity in the U.S. and cost information 
for its NV (CV) calculation, and argued that SSI had sold hot-rolled 
steel at less than NV during the period July 1, 2006, through June 30, 
2007. Petitioner stated that it was unable to obtain SSI's home market 
or third country prices for either the proposed 2005-2006 or 2006-2007 
periods of review (``PORs''). See Petitioner's February 26, 2007, and 
March 5, 2008, submissions. Therefore, Petitioner based NV for sales 
made by SSI in the United States on CV and provided a comparison of 
U.S. price to CV. See Exhibit 2 pages 1-4 of Petitioner's February 26, 
2007, submission for the 2005-2006 period and pages 2-5 of Petitioner's 
March 5, 2008, submission for the 2006-2007 period. Petitioner provided 
information showing estimated dumping margins range from 0.60 percent 
to 28.22 percent. See Changed Circumstances Review Initiation 
Checklist, dated March 21, 2008.
    On January 17, 2007, February 22, 2007, and February 5, 2008, SSI 
submitted letters to the Department requesting that it be granted an 
administrative protective order (``APO'') in order to have access to 
proprietary information submitted by Petitioner. On February 16, 2007, 
March 2, 2007, and February 14, 2008, respectively, the Department 
responded to these requests, explaining, in part, that the Department 
could not grant APO access pursuant to 19 C.F.R. 351.104(a) to SSI 
because a changed circumstances review had not been initiated. See the 
Department's February 16, 2007, March 2, 2007, and February 14, 2008, 
letters to SSI.
    On December 12, 2006, January 4, 2007, January 17, 2007, March 7, 
2007, March 28, 2007, April 5, 2007, April 10, 2007, November 28, 2007, 
February 12, 2008, March 21, 2008, and August 25, 2008, SSI filed 
letters contesting Petitioner's request for a changed circumstances 
review. SSI asserted that section 751(b) of the Act, the statutory 
provision governing changed circumstance reviews, does not cover 
reinstatement of a revoked company into an antidumping duty order. SSI 
argued that a changed circumstances review of affirmative dumping or 
injury determinations is allowed, but that the statute does not mention 
the reinstatement of a previously revoked company. SSI maintained that 
once an antidumping duty order is revoked, whether in whole or in part, 
the

[[Page 79811]]

underlying injury and dumping determinations no longer apply to the 
merchandise that has been revoked, and that the Department relinquishes 
jurisdiction over the merchandise covered.
    On December 21, 2006, January 12, 2007, March 23, 2007, April 2, 
2007, and April 9, 2007, Petitioner filed rebuttal comments to SSI's 
comments. Petitioner argued that the Department rejected arguments 
similar to SSI's contentions regarding the Department's legal authority 
to reinstate the order in a previous case. See Sebacic Acid from the 
People's Republic of China: Final Results of Antidumping Duty Changed 
Circumstances Review and Reinstatement of the Antidumping Duty Order, 
70 FR 16218 (March 30, 2005). Petitioner also argued that SSI's 
contention, that the Department imposed a rigorous evidentiary standard 
for initiation for a changed circumstances review, is incorrect. 
Petitioner claimed that the Department should not impose a higher 
standard for a respondent with a prior history of dumping than it would 
for a respondent without a prior history of dumping. Petitioner 
maintained that the standard for initiation of a changed circumstances 
review should be lower than that for an investigation. However, 
regardless of the standard, Petitioner claimed that it has demonstrated 
that SSI has resumed dumping.
    On April 7, 2008, the Department initiated a changed circumstances 
review to determine whether SSI had resumed dumping hot-rolled steel 
and whether to reinstate SSI in the antidumping order for hot-rolled 
steel from Thailand. See Initiation Notice. We issued a questionnaire 
to SSI on April 11, 2008. SSI submitted its responses to sections A, B, 
C, and D of our questionnaire on May 23, 2008, June 6, 2008, June 9, 
2008, and June 16, 2008, respectively. On July 18, 2008, we issued our 
first supplemental questionnaire to SSI covering sections A, B, and C, 
and issued a follow-up supplemental questionnaire on August 7, 2008. 
SSI submitted its response to our July 18, 2008, and August 7, 2008, 
questionnaires on August 15, 2008. On August 6, 2008, we issued a first 
supplemental questionnaire to SSI covering section D of the response to 
which SSI responded on September 5, 2008. On August 25, 2008, SSI 
submitted a request that the Department reconsider and terminate the 
changed circumstances review. On September 18, 2008, we issued a third 
supplemental questionnaire to SSI covering sections A, B, and C. SSI 
submitted its response to this questionnaire on October 2, 2008. On 
October 29, 2008, we extended the due date for the final results of 
this review to April 22, 2009. See Certain Hot-Rolled Carbon Steel Flat 
Products from Thailand: Extension of Time Limit for Final Results of 
Changed Circumstances Review, 73 FR 64303 (October 29, 2008) 
(``Extension Notice''). On November 17, 2008, we issued a second 
supplemental questionnaire to SSI covering section D of the response. 
SSI responded to this supplemental questionnaire on December 1, 2008. 
On December 10, 2008, we published a notice correcting the POR listed 
in the Extension Notice. See Certain Hot-Rolled Carbon Steel Flat 
Products from Thailand: Correction of Notice of Extension of Time Limit 
for Final Results of Changed Circumstances Review, 73 FR 75079 
(December 10, 2008). On December 11, 2008, Petitioner submitted 
comments for consideration in these preliminary results of review. On 
December 17, SSI submitted comments in response to Petitioner's 
December 11, 2008, letter. Based on our analysis of SSI's home market 
and U.S. sales data, we preliminarily determine that SSI sold hot-
rolled steel at issue at less than NV during the July 1, 2006, through 
June 30, 2007, POR.

Verification

    As provided in section 782(i)(3) of the Act and 19 C.F.R. 
351.307(b)(iv), the Department verified the cost of production 
(``COP''), CV, home market sales, and U.S. sales questionnaire 
responses of SSI. We conducted the home market and U.S. sales 
verification from October 27, 2008, through October 31, 2008. We 
conducted the COP/CV verification from December 15, 2008, through 
December 19, 2008. We used standard verification procedures, including 
examination of relevant sales and financial records. Our verification 
results are outlined in the home market and U.S. sales verification 
report for SSI. For a further discussion, see Memorandum to the File 
through Richard O. Weible and Angelica Mendoza, from John K. Drury, 
dated December 19, 2008. The verification report for the COP/CV 
verification will be issued subsequent to these preliminary results of 
review.

Scope of the Order

    For purposes of the order, the products covered are certain hot-
rolled carbon steel flat 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 4.0 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 the 
order.
    Specifically included within the scope of the 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 to be included in the scope of the order, regardless 
of definitions in the Harmonized Tariff Schedule of the United States 
(``HTSUS''), 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 the order unless otherwise 
excluded.
    The following products, by way of example, are outside or 
specifically excluded from the scope of the order:
    -Alloy hot-rolled 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,

[[Page 79812]]

A517, A506).
    -Society of Automotive Engineers (``SAE'')/American Iron & Steel 
Institute (``AISI'') grades of series 2300 and higher.
    -Ball bearing steels, as defined in the HTSUS.
    -Tool steels, as defined in the HTSUS.
    -Silico-manganese (as defined in the HTSUS) or silicon electrical 
steel with a silicon level exceeding 2.25 percent.
    -ASTM specifications A710 and A736.
    -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 
HTSUS.
    The merchandise subject to the order is currently classified in the 
HTSUS 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 flat products covered by the 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 7226.99.01.80. 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 HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the merchandise is dispositive.

Basis for Reinstatement

    In requesting revocation, pursuant to 19 C.F.R. 
351.222(b)(2)(i)(B), SSI agreed to immediate reinstatement of the 
order, so long as any exporter or producer is subject to the order, if 
the Secretary concludes that subsequent to the revocation, SSI sold 
hot-rolled steel at less than NV. See Revocation. Under 19 C.F.R. 
351.222(b)(2)(i)(B) as long as any exporter or producer is subject to 
an antidumping duty order which remains in force, an entity previously 
granted a revocation may be reinstated under that order if it is 
established that the entity has resumed the dumping of subject 
merchandise.
    In this case, because other exporters in Thailand remain subject to 
the Hot-Rolled Steel Order, the order remains in effect, and SSI may be 
reinstated in the order. The Department granted SSI revocation based in 
part upon its agreement to immediate reinstatement in the antidumping 
duty order if the Department were to find that the company resumed 
dumping of hot-rolled steel from Thailand. See Revocation.
    As described in the ``U.S. Price'' and ``Normal Value'' sections, 
below, we have examined SSI's response and have preliminarily found 
that SSI's dumping margin for the review period is greater than de 
minimis. Accordingly, we preliminarily intend to reinstate SSI in the 
antidumping order.

Fair Value Comparisons

    To determine whether sales of hot-rolled steel from Thailand to the 
United States were made at less than NV, we compared SSI's export price 
(``EP'') sales made in the United States to unaffiliated purchasers, to 
NV as described in the ``U.S. Price'' and ``Normal Value'' sections of 
this notice, below. In accordance with section 777A(d)(2) of the Act, 
we compared individual EP sales to monthly weighted-average NVs.

Product Comparisons

    In accordance with section 771(16) of the Act we considered all 
products produced by SSI covered by the description in the ``Scope of 
the Order'' section, above, and sold in the home market during the POR, 
to be foreign like products for purposes of determining appropriate 
product comparisons to U.S. sales. We first attempted to compare 
contemporaneous U.S. and comparison-market sales of products that are 
identical with respect to the following characteristics: 1) whether 
painted or not; 2) quality; 3) carbon content; 4) yield strength; 5) 
thickness; 5) width; 6) whether cut-to-length or coil; 7) whether 
temper rolled or not; 8) whether pickled or not; 9) edge trim; and 10) 
with or without patterns in relief. Where we were unable to compare 
sales of the identical merchandise, we compared U.S. sales to 
comparison-market sales of the most similar merchandise based on the 
above characteristics. Where there were no sales of foreign like 
product to compare to a U.S. sale, we compared the price of the U.S. 
sale to CV.

Level of Trade

    In accordance with section 773(a)(1)(B) of the Act, to the extent 
practicable, we base NV on sales made in the comparison market at the 
same level of trade (``LOT'') as the EP transaction. The NV LOT is 
defined as the starting-price sales in the home market or, when NV is 
based on CV, as the sales from which selling, general, and 
administrative (``SG&A'') expenses and profit are derived. The EP LOT 
is defined as the starting price in the United States to the 
unaffiliated U.S. customer.
    We obtained information from SSI regarding the marketing stages 
involved in making its reported foreign market and U.S. sales to 
unaffiliated customers. SSI provided a description of all selling 
activities performed, along with a flowchart and tables comparing the 
LOTs among each channel of distribution and customer category for both 
markets. See SSI's May 23, 2008, questionnaire response at exhibit A-7 
and its August 15, 2008, supplemental questionnaire response at page 
S1ABC8-11 (page 11).
    For the United States market, SSI stated that it sells through one 
channel and only to trading companies, and that the trading companies 
take title to the subject merchandise in Thailand for all shipments. 
See SSI's May 23, 2008, questionnaire response at A-23 and A-24. We 
reviewed the level at which SSI performed each of the claimed selling 
functions with respect to the claimed customer category. For all of the 
activities listed, the level of performance for both direct shipments 
and warehouse shipments was substantially identical across all types of 
classes of customers. Based on our analysis of all of SSI's selling 
functions for sales to the United States, we find all United States 
sales were made at the same LOT, i.e., the EP LOT.
    For the home market, SSI identified three channels of distribution 
described as follows: 1) direct shipments to unaffiliated end-users/
resellers; 2) sales through affiliated trading companies; and 3) sales 
through affiliated resellers/

[[Page 79813]]

end users. In addition, SSI identified three classes of customers: 1) 
Domestic Sales A-1; 2) Domestic Sales A-2; and 3) Domestic Sales B 
customers. See SSI's May 23, 2008, questionnaire response at pages A-6 
and A-7. We reviewed the level at which SSI performed each of the 
claimed selling functions with respect to each claimed channel of 
distribution and customer category. For all of the activities listed 
(which included sales promotion, technical services, inventory 
management, financing, and arranging freight/delivery), the level of 
performance for both direct shipments and warehouse shipments was 
substantially identical across all types of channels and classes of 
customers. Based on our analysis of all of SSI's home market selling 
functions, we find all home market sales were made at the same LOT, 
i.e., the NV LOT. We also found that SSI provided a similar level of 
selling functions on all of its EP sales, and that the level of these 
EP selling functions was comparable to the level of selling functions 
that SSI performed on its home market sales. Based on the foregoing, we 
determine that there is one LOT on SSI's EP sales and that the EP LOT 
is comparable to the HM LOT. Therefore, we preliminarily determine that 
an LOT adjustment is not warranted.

U.S. Price

    Section 772(a) of the Act defines EP as ``the price at which the 
subject merchandise is first sold (or agreed to be sold) before the 
date of importation by the producer or exporter of subject merchandise 
outside of the United States to an unaffiliated purchaser for 
exportation to the United States.'' For purposes of this changed 
circumstances review, SSI classified all of its U.S. sales shipped 
directly from Thailand to the United States as EP sales. For these 
preliminary results, we have accepted this classification. The 
merchandise shipped directly to unaffiliated customers in the U.S. 
market was not sold through an affiliated U.S. importer, and we find no 
other grounds for treating these transactions as CEP sales. We, 
therefore, preliminarily determine that these transactions were EP 
sales.

Export Price

    We calculated EP in accordance with section 772(a) of the Act. We 
based EP on packed prices to customers in the United States. We made 
adjustments for the following movement expenses: foreign inland 
freight, and foreign brokerage and handling charges.
    We have preliminarily determined to use the date of invoice as the 
date of sale for all sales to the United States, as evidence on the 
record indicates that terms of sale may change up to the issuance of 
the invoice. See Analysis Memorandum, dated concurrently with this 
notice.

Normal Value

A. Selection of Comparison Market

    To determine whether there is a sufficient volume of sales in the 
home market to serve as a viable basis for calculating NV (i.e., the 
aggregate volume of home market sales of the foreign like product is 
greater than five percent of the aggregate volume of U.S. sales), we 
compared SSI's volume of home market sales of the foreign like product 
to the volume of its U.S. sales of the merchandise subject to this 
review, in accordance with section 773(a)(1)(B) of the Act. Because 
SSI's aggregate volume of home market sales of the foreign like product 
was greater than five percent of its aggregate volume of U.S. sales for 
subject merchandise, we determined the home market was viable. See, 
e.g., SSI's May 23, 2008, questionnaire response at Appendix A-1.

B. Cost of Production Analysis

    Because Petitioner's allegation that SSI made sales at less than NV 
was based in part on the allegation that SSI made sales below the COP 
during the POR, we had reasonable grounds to believe or suspect that 
sales of the foreign like product under consideration for the 
determination of NV in this review may have been made at prices below 
the COP, as provided by section 773(b)(2)(A)(ii) of the Act. See 
Changed Circumstances Review Initiation Checklist dated March 28, 2008. 
Pursuant to section 773(b)(1) of the Act, we initiated a COP 
investigation of sales by SSI. See Initiation Notice at 18768-18769.
    In accordance with section 773(b)(3) of the Act, we calculated COP 
based on the sum of SSI's cost of materials and fabrication for the 
foreign like product, plus amounts for general and administrative 
expenses (``G&A''), and interest expenses. We relied on the COP 
information provided by SSI, with modifications. SSI reported its costs 
on the basis of the products' cost of goods sold (``COGS'') rather than 
the cost of manufacturing (``COM''). As it is our normal practice to 
rely on the COM during the POR, we adjusted the reported costs for each 
CONNUM to reflect the difference between the average per-unit COGS and 
the average per-unit COM. SSI purchased slab and certain services from 
affiliates. We analyzed these transactions in accordance with the 
transactions disregarded rule (i.e., section 773(f)(2) of the Act) and 
adjusted the reported costs to reflect the higher of the transfer price 
or market price. We revised the calculation of the G&A expense ratio by 
adding back to the numerator of the calculation the amounts SSI 
reported as offsets for the ``reversal allowance for diminution in 
value of raw materials and finished goods'' and the ``reversal of 
allowance for diminution in value of spare parts and consumable 
goods.'' In order to keep the calculations of the G&A and financial 
expense ratios on the same basis as the reported COM, we subtracted the 
portion of scrap that was taken as an offset in the calculation of COM 
from the denominators of the ratio calculations. See Cost of Production 
and Constructed Value Calculation Memorandum for the Preliminary 
Results, dated concurrently with this notice.
    To determine whether SSI's home market sales had been made at 
prices below the COP, we computed weighted-average COPs during the POR, 
and compared the weighted-average COP figures to home market sales 
prices of the foreign like product as required under section 773(b) of 
the Act. On a product-specific basis, we compared the COP to the home 
market prices net of billing adjustments, any applicable movement 
charges, selling expenses and packing expenses.
    In determining whether to disregard home market sales made at 
prices below the COP, we examined, in accordance with sections 
773(b)(1)(A) and (B) of the Act, whether, within an extended period of 
time, such sales were made in substantial quantities, and whether such 
sales were made at prices which permitted the recovery of all costs 
within a reasonable period of time in the normal course of trade. Where 
less than 20 percent of the respondent's home market sales of a given 
model were at prices below the COP, we did not disregard any below-cost 
sales of that model because we determined that the below-cost sales 
were not made within an extended period of time and in ``substantial 
quantities.'' Where 20 percent or more of the respondent's home market 
sales of a given model were at prices less than the COP, we disregarded 
the below-cost sales because: (1) they were made within an extended 
period of time in ``substantial quantities,'' in accordance with 
sections 773(b)(2)(B) and (C) of the Act; and (2) based on our 
comparison of prices to the weighted-average COPs for the POR, they 
were at prices which would not permit the recovery of all costs within

[[Page 79814]]

a reasonable period of time, in accordance with section 773(b)(2)(D) of 
the Act.
    Our cost test for SSI revealed that, for home market sales of 
certain models, less than 20 percent of the sales of those models were 
at prices below the COP. We therefore retained all such sales in our 
analysis and used them as the basis for determining NV. Our cost test 
also indicated that for home market sales of other models, more than 20 
percent were sold at prices below the COP within an extended period of 
time and were at prices which would not permit the recovery of all 
costs within a reasonable period of time. Thus, in accordance with 
section 773(b)(1) of the Act, we excluded these below-cost sales from 
our analysis and used the remaining above-cost sales as the basis for 
determining NV.

C. Constructed Value

    In accordance with section 773(e) of the Act, we calculated CV 
based on the sum of SSI's material and fabrication costs, SG&A 
expenses, profit, and U.S. packing costs. We calculated the COP 
component of CV as described above in the ``Cost of Production 
Analysis'' section of this notice. In accordance with section 
773(e)(2)(A) of the Act, we based SG&A expenses and profit on the 
amounts incurred and realized by the respondent in connection with the 
production and sale of the foreign like product in the ordinary course 
of trade, for consumption in the foreign country.

D. Price-to-Price Comparisons

    We calculated NV based on prices to unaffiliated customers, as well 
as affiliated customers whose sales passed the arm's-length test, in 
Thailand. We used SSI's adjustments and deductions as reported. We made 
deductions, where appropriate, for foreign inland freight pursuant to 
section 773(a)(6)(B) of the Act. In addition, for comparisons involving 
similar merchandise, we made adjustments for differences in cost 
attributable to differences in physical characteristics of the 
merchandise compared pursuant to section 773(a)(6)(C)(ii) of the Act 
and 19 CFR 351.411. We also made adjustments for differences in 
circumstances of sale (``COS'') in accordance with section 
773(a)(6)(C)(iii) of the Act and 19 CFR 351.410. We made COS 
adjustments for imputed credit expenses. Finally, we deducted home 
market packing costs and added U.S. packing costs in accordance with 
sections 773(a)(6)(A) and (B) of the Act.
    We have preliminarily determined to use the date of invoice as the 
date of sale for all sales in the home market, as evidence on the 
record indicates that terms of sale may change up to the issuance of 
the invoice. See Analysis Memorandum, dated concurrently with this 
notice.

E. Price-to-CV Comparisons

    If we were unable to find a home market match of such or similar 
merchandise, in accordance with section 773(a)(4) of the Act, we based 
NV on CV. Where appropriate, we made adjustments to CV in accordance 
with section 773(a)(8) of the Act.

Currency Conversion

    We made currency conversions into U.S. dollars based on the 
exchange rates in effect on the dates of the U.S. sales, as certified 
by the Federal Reserve Bank, in accordance with section 773A(a) of the 
Act.

Preliminary Results of Review

    As a result of our review, we preliminarily determine the following 
weighted-average dumping margin exists for the period July 1, 2006, 
through June 30, 2007:

------------------------------------------------------------------------
                                                                Margin
                    Manufacturer/Exporter                      (Percent)
------------------------------------------------------------------------
Sahaviriya Steel Industries Public Company Limited..........        9.05
------------------------------------------------------------------------

    The Department will disclose to parties the calculations performed 
in connection with these preliminary results within ten days of the 
date of publication of this notice. Interested parties may request a 
hearing within 30 days of the publication. Any hearing, if requested, 
will be held 39 days after the publication of this notice or the first 
workday thereafter. Interested parties may submit case briefs the later 
of 30 days after the date of publication of this notice or seven days 
after the issuance of the final verification report, whichever date is 
later. Rebuttal briefs, limited to issues raised in the case briefs, 
may be filed not later than seven days after the date on which the case 
briefs were due.

Reinstatement and Suspension of Liquidation

    Since we have preliminarily established that hot-rolled steel from 
Thailand manufactured and exported by SSI is being sold at less than 
NV, SSI is hereby preliminarily reinstated in the antidumping duty 
order. We will instruct CBP to suspend liquidation of all entries of 
subject merchandise manufactured and exported by SSI entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register. Furthermore, a 
cash-deposit requirement of 6.42 percent will be in effect for all 
shipments of the subject merchandise manufactured and exported by SSI 
entered, or withdrawn from warehouse, for consumption on or after the 
publication date of this notice. This requirement shall remain in 
effect until further notice.
    The Department intends to complete this review by April 22, 2009. 
See Extension Notice. In accordance with 19 CFR 351.221(c)(3)(i), the 
final results of the changed circumstance review will set forth the 
factual and legal conclusions upon which our results are based, a 
description of any action proposed based on those results, and our 
analysis of any comments received.
    This notice is published in accordance with sections 751(b) and 
771(i) of the Act.

    Dated: December 19, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E8-30993 Filed 12-29-08; 8:45 am]
BILLING CODE 3510-DS-S