Oil Country Tubular Goods, Other Than Drill Pipe, from Korea: Preliminary Results of Antidumping Duty Administrative Review, 53340-53344 [E5-4890]
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Federal Register / Vol. 70, No. 173 / Thursday, September 8, 2005 / Notices
Scope of the Order
The product covered by this
antidumping order is certain non-frozen
apple juice concentrate (NFAJC). Certain
NFAJC is defined as all non-frozen
concentrated apple juice with a Brix
scale of 40 or greater, whether or not
containing added sugar or other
sweetening matter, and whether or not
fortified with vitamins or minerals.
Excluded from the scope of this order
are: frozen concentrated apple juice;
non-frozen concentrated apple juice that
has been fermented; and non-frozen
concentrated apple juice to which
spirits have been added.
The merchandise subject to this order
is currently classifiable in the
Harmonized Tariff Schedule of the
United States (HTSUS) at subheadings
2106.90.52.00, and 2009.70.00.20 before
January 1, 2002, and 2009.79.00.20 after
January 1, 2002. Although the HTSUS
subheadings are provided for
convenience and customs purposes, the
written description of the scope of the
order is dispositive.
Analysis of Comments Received
All issues raised in these reviews are
addressed in the ‘‘Issues and Decision
Memorandum’’ (Decision
Memorandum) from Barbara E. Tillman,
Acting Deputy Assistant Secretary for
Import Administration, to Joseph A.
Spetrini, Acting Assistant Secretary for
Import Administration, dated August
30, 2005, which is hereby adopted by
this notice. The issues discussed in the
Decision Memorandum include the
likelihood of continuation or recurrence
of dumping and the magnitude of the
margins likely to prevail if the order was
revoked. Parties can find a complete
discussion of all issues raised in this
review and the corresponding
recommendations in this public
memorandum which is on file in room
B–099 of the main Commerce building.
In addition, a complete version of the
Decision Memorandum can be accessed
directly on the Web at https://
ia.ita.doc.gov/frn/, under the
heading ‘‘September 2005.’’ The paper
copy and electronic version of the
Decision Memorandum are identical in
content.
Final Results of Reviews
We determine that revocation of the
antidumping duty orders on NFAJC
from the PRC would be likely to lead to
continuation or recurrence of dumping
at the following weighted-average
percentage margins:
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15:25 Sep 07, 2005
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final results, we will instruct U.S.
Customs and Border Protection (‘‘CBP’’)
to assess antidumping duties based on
Xian Asia ......................
3.83 the difference between the constructed
Xian Yang Fuan ............
3.83 export price (‘‘CEP’’) and the NV.
Changsha .....................
3.83
Shandong Foodstuffs ...
3.83 EFFECTIVE DATE: September 8, 2005.
SAAME .........................
51.74 FOR FURTHER INFORMATION CONTACT:
Yantai Golden ...............
51.74 Scott Lindsay or Nicholas Czajkowski,
PRC-Wide Rate ............
51.74 AD/CVD Operations, Office 6, Import
Administration, International Trade
This notice also serves as the only
Administration, U.S. Department of
reminder to parties subject to
Commerce, 14th Street and Constitution
administrative protective orders (APO)
Avenue, NW, Washington, DC 20230,
of their responsibility concerning the
telephone: (202) 482–0780 or (202) 482–
return or destruction of proprietary
1395, respectively.
information disclosed under APO in
SUPPLEMENTARY INFORMATION:
accordance with 19 CFR 351.305 of the
BACKGROUND
Department’s regulations. Timely
notification of the return or destruction
On August 11, 1995, the Department
of APO materials or conversion to
published in the Federal Register an
judicial protective order is hereby
antidumping duty order on OCTG from
requested. Failure to comply with the
Korea (60 FR 41058). On August 3,
regulations and terms of an APO is a
2004, the Department published a notice
violation which is subject to sanction.
of an opportunity to request an
We are issuing and publishing the
administrative review of the
results and notice in accordance with
antidumping order on OCTG from
sections 751(c), 752, and 777(i)(1) of the Korea. See Antidumping or
Act.
Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity
Dated: August 30, 2005.
To Request Administrative Review, 69
Joseph A. Spetrini,
FR 46496. On August 31, 2004, the
Acting Assistant Secretary for Import
Department received a properly filed,
Administration.
timely request for an administrative
[FR Doc. E5–4894 Filed 9–7–05; 8:45 am]
review from domestic producers, IPSCO
BILLING CODE 3510–DS–S
Tubulars, Inc., Lone Star Steel
Company, and Maverick Tube
Corporations (‘‘petitioners’’). On
DEPARTMENT OF COMMERCE
September 22, 2004, the Department
published a notice of initiation for this
International Trade Administration
antidumping duty administrative
[A–580–825]
review. See Notice of Initiation of
Antidumping and Countervailing Duty
Oil Country Tubular Goods, Other
Administrative Reviews and Request for
Than Drill Pipe, from Korea:
Revocation in Part, 69 FR 56745.
Preliminary Results of Antidumping
On November 12, 2004, the
Duty Administrative Review
Department issued questionnaires to
Husteel and SeAH. Husteel and SeAH
AGENCY: Import Administration,
submitted Section A1 responses on
International Trade Administration,
January 5, 2005 and Section B–D
U.S. Department of Commerce.
responses on January 18, 2005. SeAH
SUMMARY: In response to a request filed
also submitted a Section E response on
by domestic interested parties, the U.S.
January 18, 2005. The Department
Department of Commerce (‘‘the
issued supplemental questionnaires on
Department’’) is conducting an
February 29, 2005, March 24, 2005, and
administrative review under the
June 6, 2005. Husteel and SeAH
antidumping duty order on oil country
tubular goods, other than drill pipe
1 Section A of the questionnaire requests general
(‘‘OCTG’’), from Korea. This review
a company’s corporate
covers the following producers: Husteel information concerningpractices, the merchandise
structure and business
Co., Ltd. (‘‘Husteel’’) and SeAH Steel
under investigation that it sells, and the manner in
Corporation (‘‘SeAH’’). The period of
which it sells that merchandise in all of its markets.
Section B requests a complete listing of all home
review (‘‘POR’’) is August 1, 2003,
market sales, or, if the home market is not viable,
through July 31, 2004. The preliminary
of sales in the most appropriate third-country
results are listed below in the section
market (this section is not applicable to respondents
entitled ‘‘Preliminary Results of
in non-market economy cases). Section C requests
a complete listing of U.S. sales. Section D requests
Review.’’ We preliminarily determine
information on the cost of production of the foreign
that both Husteel and SeAH made sales
like product and the constructed value of the
below normal value (‘‘NV’’). If these
merchandise under investigation. Section E
preliminary results are adopted in our
requests information on further manufacturing.
Manufacturers/Exporters/Producers
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margin (percent)
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Federal Register / Vol. 70, No. 173 / Thursday, September 8, 2005 / Notices
submitted responses on March 7, 2005,
April 22, 2005, and June 24, 2005.
On March 7, 2005, the Department
published a notice extending the
deadline for the preliminary results of
this administrative review from May 3,
2005, until August 31, 2005. See Oil
Country Tubular Goods from Korea:
Extension of Time Limit for Preliminary
Results of Administrative Review, 70 FR
10962.
On November 30, 2004, and December
14, 2004, Husteel and SeAH,
respectively submitted a request to the
Department for a one-month adjustment
to the cost reporting period in this
review. Husteel and SeAH requested to
report costs from July 1, 2003, through
June 30, 2004, rather than for the
established period of review (‘‘POR’’),
August 1, 2003, through July 31, 2004.
Husteel and SeAH claimed that the onemonth shift in the reporting period
would allow them to use their semi–
annual financial information, which
would ease their reporting burden and
simplify accuracy and completeness
tests for the Department. Both
companies stated that the shift in cost
period would not distort their reported
costs. In Husteel’s and SeAH’s
December 22, 2004, submissions, each
company provided further information
regarding their request for the shift in
cost period. In their December 2, 2004,
and December 28, 2004, submissions,
petitioners argued that a shift in the cost
period would materially impact the
antidumping analysis in this review.
On January 5, 2005, the Department
determined that a shift in cost reporting
period would be inappropriate. See
Letter to Husteel and SeAH regarding
adjustment the cost reporting period
dated January 5, 2005. The Department
found that the difference in costs of
primary inputs and in the cost of
manufacturing between the two periods
would have a significant effect on the
results in this review. Therefore, the
Department instructed Husteel and
SeAH to provide cost information for
the POR.
PERIOD OF REVIEW
The POR for this administrative
review is August 1, 2003, through July
31, 2004.
SCOPE OF THE ORDER
The products covered by this order
are OCTG, hollow steel products of
circular cross-section, including only oil
well casing and tubing, of iron (other
than cast iron) or steel (both carbon and
alloy), whether seamless or welded,
whether or not conforming to American
Petroleum Institute (‘‘API’’) or non–API
specifications, whether finished or
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unfinished (including green tubes and
limited service OCTG products). This
scope does not cover casing or tubing
pipe containing 10.5 percent or more of
chromium, or drill pipe. The products
subject to this order are currently
classified in the Harmonized Tariff
Schedule of the United States
(‘‘HTSUS’’) under sub–headings:
7304.29.10.10, 7304.29.10.20,
7304.29.10.30, 7304.29.10.40,
7304.29.10.50, 7304.29.10.60,
7304.29.10.80, 7304.29.20.10,
7304.29.20.20, 7304.29.20.30,
7304.29.20.40, 7304.29.20.50,
7304.29.20.60, 7304.29.20.80,
7304.29.30.10, 7304.29.30.20,
7304.29.30.30, 7304.29.30.40,
7304.29.30.50, 7304.29.30.60,
7304.29.30.80, 7304.29.40.10,
7304.29.40.20, 7304.29.40.30,
7304.29.40.40, 7304.29.40.50,
7304.29.40.60, 7304.29.40.80,
7304.29.50.15, 7304.29.50.30,
7304.29.50.45, 7304.29.50.60,
7304.29.50.75, 7304.29.60.15,
7304.29.60.30, 7304.29.60.45,
7304.29.60.60, 7304.29.60.75,
7305.20.20.00, 7305.20.40.00,
7305.20.60.00, 7305.20.80.00,
7306.20.10.30, 7306.20.10.90,
7306.20.20.00, 7306.20.30.00,
7306.20.40.00, 7306.20.60.10,
7306.20.60.50, 7306.20.80.10, and
7306.20.80.50. The HTSUS sub–
headings are provided for convenience
and customs purposes. The written
description remains dispositive of the
scope of the order.
ANALYSIS
Product Comparisons
In accordance with section 771(16) of
the Tariff Act of 1930, as amended (‘‘the
Act’’), we considered all products
manufactured by the respondents that
are covered by the description
contained in the ‘‘Scope of the Order’’
section above and were sold in the
comparison market during the POR, to
be the foreign like product for purposes
of determining the appropriate product
comparisons to U.S. sales. Where there
were no sales of identical merchandise
in the comparison market to compare to
U.S. sales, we compared U.S. sales to
the most similar foreign like product on
the basis of the characteristics listed in
Appendix V of the Department’s
November 12, 2004, antidumping
questionnaire.
Date of Sale
It is the Department’s practice to use
the invoice date as the date of sale. We
may, however, use a date other than the
invoice date if we are satisfied that a
different date better reflects the date on
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53341
which the exporter or producer first
establishes the material terms of sale.
See 19 CFR section 351.401(i); see also
Antidumping Duties; Countervailing
Duties; Final Rule, 62 FR 27296, 27348–
50 (May 19, 1997).
Husteel
U.S. Sales: For its U.S. sales, Husteel’s
customers contact Husteel USA,
Husteel’s U.S. affiliate, by phone and
negotiate quantity and price. After
production is complete, the
merchandise is shipped from Korea and
Husteel USA issues its invoice to the
U.S. customer. As such, Husteel
reported the date of sale to be the
shipment date from Korea since that
date always precedes Husteel USA’s
invoice date. The Department has found
no information that indicates that
another date better reflects the date on
which the material terms of sale were
established. Therefore, the Department
is preliminarily using shipment date as
date of sale, as reported by Husteel.
SeAH
U.S. Sales: For its U.S. sales, SeAH
reported two channels of distribution: 1
- Inventory sales that were warehoused
and, in most cases, further
manufactured in the United States by
Pusan Pipe America (‘‘PPA’’), SeAH’s
U.S. affiliate (U.S. Channel 1); and 2 Constructed Export Price (CEP) sales
made by PPA and shipped directly to
the customer from Korea (U.S. Channel
2). In its submission, SeAH reported a
different date of sale for each of its two
channels of distribution. For sales in
U.S. channel 1, SeAH reported the date
of sale to be the date of the commercial
invoice issued by PPA to the
unaffiliated customer. For sales in U.S.
channel 2, SeAH reported the date of
sale to be the shipment date from Korea
since this date precedes the date of
PPA’s commercial invoice to its
unaffiliated U.S. customer. The
Department has found no information
that indicates that another date better
reflects the date on which the material
terms of sale were established.
Therefore, the Department is
preliminarily using the commercial
invoice date as date of sale for U.S.
channel 1 and the shipment date as date
of sale for U.S. channel 2, as reported
by SeAH.
Canadian Sales: For sales to Canada,
the comparison market in this review
(see ‘‘Normal Value Comparisons’’
below), PPA receives an inquiry from
the customer by fax or telephone. Once
SeAH and PPA agree on the price, the
customer then sends a written purchase
order to PPA. The merchandise is
shipped and SeAH invoices PPA. PPA
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then invoices the Canadian customer,
pays SeAH, and then receives payment
from the customer. As such, SeAH
reported the shipment date from Korea
since this date precedes the date of
PPA’s commercial invoice to its
unaffiliated Canadian customer. The
Department has found no information
that indicates that another date better
reflects the date on which the material
terms of sale were established.
Therefore, the Department is
preliminarily using shipment date as
date of sale, as reported by SeAH.
Normal Value Comparisons
To determine whether Husteel’s or
SeAH’s sales of subject merchandise to
the United States were made at less than
NV, we compared each company’s CEP
to the NV, as described in the
‘‘Constructed Export Price’’ and
‘‘Normal Value’’ sections of this notice,
in accordance with section 777A(d)(2)
of the Act.
Selection of Comparison Market
The Department determines the
viability of a comparison market by
comparing the aggregate quantity of
comparison–market sales to U.S. sales.
A home market is not considered a
viable comparison market if the
aggregate quantity of sales of the foreign
like product in that market amounts to
less than five percent of the quantity of
sales of subject merchandise into the
United States during the POR. See
section 773(a)(1)(B) of the Act; see also
19 CFR 351.404. Husteel and SeAH each
reported that the aggregate quantity of
sales of the foreign like product in Korea
during the POR amounted to less than
five percent of the quantity of each
company’s sales of subject merchandise
to the United States during the POR.
In Husteel’s and SeAH’s January 18,
2005, questionnaire responses, each
company reported that the aggregate
quantity of their sales of the foreign like
product to the People’s Republic of
China (PRC) amounted to more than five
percent of the total quantity of each
company’s sales of subject merchandise
to the United States during the POR.
However, pursuant to section 771(18) of
Act, the Department has determined
that the PRC is a non–market economy
country (NME). Consequently, the
Department finds that the prices of
Husteel’s and SeAH’s OCTG sales to the
PRC are unrepresentative. As such,
pursuant to section 773(a)(1)(B)(ii)(I) of
the Act, the Department finds that such
prices are inappropriate for use as a
basis to establish normal value.
In its January 5, 2005, questionnaire
response, Husteel reported having no
sales of OCTG to any other countries
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15:25 Sep 07, 2005
Jkt 205001
besides the United States and the PRC
during the POR. Therefore, the
Department has used constructed value
(CV) for Husteel as the basis for NV for
this review based on the cost of
production (COP) (Section D)
questionnaire responses submitted on
January 18, 2005.
In its January 5, 2005, questionnaire
response, SeAH reported sales of OCTG
to Canada and Myanmar during the
POR. Since the quantity of foreign like
product sold by SeAH into Myanmar
was less than five percent of the
quantity of subject merchandise sold in
the United States, the Department
determined that only Canada qualified
as a viable comparison market based on
the criterion established in section
773(a)(1) of the Act. The Department
calculated NV based on the information
on sales to Canada provided in SeAH’s
April 22, 2005, questionnaire response.
For U.S. sales for which a match with
Canadian sales could not be found, the
Department used CV as the basis for
comparison based on the information
provided by SeAH in Section D of its
January 18, 2005, submission.
Normal Value
Price–to-Price Comparisons
SeAH: Where appropriate, we made
adjustments to NV in accordance with
section 773(a)(6) of the Act. We added
duty drawback and deducted movement
expenses, third country packing
expenses and third country direct
selling expenses from the NV. We also
made adjustments for CEP–offset (see
‘‘Level of Trade/CEP–offset’’ section
below), based on the sum of inventory
carrying costs and other indirect selling
expenses. We made further adjustments
for differences in costs attributable to
differences in physical characteristics of
merchandise. Finally, the Department
added U.S. packing expenses to derive
the foreign unit price in dollars
(‘‘FUPDOL’’) to use as the NV.
Constructed Value
Husteel: We used CV as the basis for
NV for all sales because Husteel had no
viable comparison market in accordance
with section 773(a)(4) of the Act. We
calculated CV in accordance with
section 773(e) of the Act. Materials,
labor, and factory overhead were totaled
to derive the cost of manufacturing.
Interest, general and administrative
(G&A) expenses, selling expenses, profit
and U.S. packing expenses were then
added to derive the CV. In accordance
with section 773(e)(2)(B)(iii) of the Act,
we based profit and selling expenses on
amounts derived from SeAH’s financial
statements. Finally, we deducted direct
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selling expenses from the CV price to
derive the FUPDOL to use as the NV.
SeAH: We used CV as the basis for NV
for one sale because there were no
usable contemporaneous sales of the
foreign like product in the comparison
market, in accordance with section
773(a)(4) of the Act. We calculated CV
in accordance with section 773(e) of the
Act. Materials, labor, and factory
overhead were totaled to derive the cost
of manufacturing. Interest, G&A
expenses, selling expenses, profit, and
U.S. packing expenses were then added
to derive the CV. Profit was calculated
based on the total value of sales and
total cost of production provided by
SeAH in its questionnaire response.
Finally, we deducted credit expenses
and U.S. direct selling expenses from
CV to derive the FUPDOL to use as the
NV.
Constructed Export Price
In accordance with section 772(b) of
the Act, CEP is the price at which the
subject merchandise is first sold (or
agreed to be sold) in the United States
before or after the date of importation by
or for the account of the producer or
exporter of such merchandise, or by a
seller affiliated with the producer or
exporter, to a purchaser not affiliated
with the producer or exporter, as
adjusted under sections 772(c) and (d)
of the Act. In Husteel’s and SeAH’s
questionnaire responses, each company
classified all of its export sales of OCTG
to the United States as CEP sales.
All of Husteel’s sales are properly
classified as CEP sales because they
were made for the account of Husteel by
Husteel USA. Husteel reported one
channel of distribution in the U.S.
market: ‘‘produced to order’’ sales,
shipped directly from Korea to the
unaffiliated U.S. customers. All of
SeAH’s sales are properly classified as
CEP sales because they were made for
the account of SeAH by PPA. SeAH
reported two channels of distribution
for its U.S. sales: (1) CEP sales of further
manufactured merchandise from PPA’s
inventory and (2) CEP sales shipped
directly to the U.S. customer from
Korea.
The Department recalculated SeAH’s
starting price taking into account, where
necessary, billing adjustments and early
payment discounts. Where applicable,
the Department made deductions from
the starting price for movement
expenses, including foreign inland
freight, foreign and U.S. brokerage and
handling, international freight, marine
insurance and U.S. customs duties in
accordance with section 772(c)(2) of the
Act. See Memorandum from Nicholas
Czajkowski, Case Analyst, to the File:
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Analysis of Husteel Corporation
(‘‘Husteel’’) for the Preliminary Results
of the Administrative Review of Oil
Country Tubular Goods, Other Than
Drill Pipe from Korea, and
Memorandum from Nicholas
Czajkowski, Case Analyst, to the File:
Analysis of SeaH Steel Corporation
(‘‘SeAH’’) for the Preliminary Results of
the Administrative Review of Oil
Country Tubular Goods, Other Than
Drill Pipe from Korea, dated August 31,
2005, on file in the CRU. In accordance
with section 772(d)(1) of the Act, the
Department also deducted U.S. direct
selling expenses, including credit
expense, packing expense, inventory
carrying costs, profit and indirect selling
expense. We also deducted the cost of
further manufacturing, where
applicable, for SeAH. Finally, we added
duty drawback to the starting price to
derive a net U.S. price to use as the CEP.
Level of Trade/CEP–offset
In accordance with section 773(a)(1)
of the Act, to the extent practicable, we
determined NV based on sales made in
the comparison market at the same level
of trade (‘‘LOT’’) as the U.S. sales. The
NV LOT is that of the starting–price
sales in the comparison market. The
Court of Appeals for the Federal Circuit
has held that the statute unambiguously
requires Commerce to deduct the selling
expenses set forth in section 772(d) of
the Act from the CEP starting price prior
to performing its LOT analysis. See
Micron Technology, Inc. v. United
States, 243 F.3rd 1301, 1315 (Fed. Cir.
2001). Consequently, the Department
will continue to adjust the CEP,
pursuant to section 772(d) of the Act,
prior to performing the LOT analysis, as
articulated by the Department’s
regulations at 19 CFR 351.412. When
NV is based on CV, the NV LOT is that
of the sales from which we derive SG&A
expenses and profit.
To determine whether the
comparison–market sales on which NV
is based are at a different LOT than EP
or CEP sales, we examine stages in the
marketing process and selling functions
along the chain of distribution between
the producer and the first unaffiliated
customer. If the comparison–market
sales are at a different level of trade and
the difference affects price
comparability, as manifested in a
pattern of consistent price differences
between the sales on which NV is based
and comparison–market sales at the
level of trade of the export transaction,
we make a level–of-trade adjustment
under section 773(a)(7) of the Act.
Finally, if the data available is not
sufficient to provide an appropriate
basis to quantify a level–of-trade
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adjustment, we adjust NV under section
773(a)(7) of the Act (the CEP–offset
provision).
In the current review, SeAH reported
one LOT in the Canadian market and
two LOT in the United States. SeAH
claimed that, once adjustments for
PPA’s activities for U.S. sales, pursuant
to section 772(d) of the Act, are made,
the LOT in both U.S. channels would be
less advanced than the Canadian LOT.
SeAH claimed that they cannot quantify
a level–of-trade adjustment, but that a
CEP offset is warranted in this case. For
this review, we obtained information
from SeAH regarding the marketing
stages involved in its selling activities
for its reported U.S. and Canadian sales,
including a description of the selling
activities performed by the respondent
for each channel of distribution it
claimed. (See SeAH’s January 18, 2005,
and April 22, 2005, questionnaire
responses).
Level of Trade in the Canadian Market
SeAH reported one channel of
distribution and one LOT in the
Canadian market. All sales into the
Canadian market were CEP sales made
between PPA and the customer and
shipped directly to the customer from
Korea. As such, we preliminarily find
that all of SeAH’s sales in the Canadian
market were made at one LOT.
Level of Trade in the U.S. Market
As previously stated, SeAH reported
two channels of distribution for its sales
into the U.S. market, U.S. Channel 1 and
U.S. Channel 2. SeAH also reported two
LOT. We examined the selling functions
performed by SeAH and/or PPA for each
U.S. channel of distribution and found
that there were significant differences
with respect to the inventory and
further manufacturing activities which
PPA performed. In SeAH’s U.S. Channel
1 sales, subject merchandise was
inventoried and further manufactured
by PPA in the United States before being
sold to the unaffiliated customer. In
SeAH’s U.S. Channel 2 sales, subject
merchandise was shipped directly from
Korea to the unaffiliated customer.
Therefore, we preliminarily find that
SeAH made its U.S. sales at two
different LOT.
Comparison of Levels of Trade Between
Markets
SeAH reported that PPA is involved
in all aspects of the selling functions for
both of channels of distribution in the
United States. In accordance with
section 772(d) of the Act, we deducted
selling expenses from the CEP prior to
performing the LOT analysis.
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53343
In accordance with section 772(d) of
the Act, we deducted inventory costs,
further manufacturing costs, freight and
movement expenses, and selling and
marketing expenses performed by PPA
for SeAH’s U.S. Channel 1 sales. After
deducting these expenses, we compared
the Canadian LOT to the U.S. Channel
1 LOT. Based on our analysis, we find
that the U.S. Channel 1 sales are at a
less advanced LOT than the Canadian
sales.
In accordance with section 772(d) of
the Act, we deducted freight and
movement expenses, and selling and
marketing expenses performed by PPA
for SeAH’s U.S. Channel 2 sales. After
deducting these expenses, we compared
the Canadian LOT to the U.S. Channel
2 LOT. Based on our analysis, we find
that the U.S. Channel 2 sales are at a
less advanced LOT than the Canadian
sales.
Therefore, since the sales in Canada
are being made at a more advanced LOT
than the sales to the United States, a
LOT adjustment is appropriate for the
Canadian sales in this review. However,
since the data available is not sufficient
to provide an appropriate basis for
making a LOT adjustment, we made a
CEP offset adjustment in accordance
with section 773(a)(7)(B) of the Act and
19 CFR 351.412(f). This offset is equal
to the amount of indirect selling
expenses incurred in the comparison
market not exceeding the amount of
indirect selling expenses and
commissions deducted from the U.S.
price in accordance with section
772(d)(1)(D) of the Act.
Currency Conversion
We made currency conversions in
accordance with section 773A of the Act
based on the exchange rates in effect on
the dates of the U.S. sales as certified by
the Federal Reserve Bank.
PRELIMINARY RESULTS OF REVIEW
We preliminarily determine that the
following dumping margin exists:
Manufacturer/Exporter
SeAH Steel Corporation .............
Husteel Co., Ltd. .........................
Margin
3.91%
12.30%
Verification
As provided in section 782(i) of the
Act, the Department anticipates
conducting a verification of Husteel and
SeAH following the issuance of the
preliminary results.
Duty Assessment and Cash Deposit
Requirements
The Department shall determine, and
CBP shall assess, antidumping duties on
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all appropriate entries. Pursuant to 19
CFR 351.212(b), the Department
calculates an assessment rate for each
importer of the subject merchandise for
each respondent. The Department will
issue appropriate assessment
instructions directly to CBP within 15
days of publication of the final results
of this review.
Furthermore, the following cash
deposit rates will be effective with
respect to all shipments of OCTG from
Korea entered, or withdrawn from
warehouse, for consumption on or after
the publication date of the final results,
as provided for by section 751(a)(1) of
the Act: (1) for Husteel and SeAH, the
cash deposit rate 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 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–thanfair–value (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 subject merchandise; and (4) if
neither the exporter nor the
manufacturer is a firm covered by this
review, a prior review, or the LTFV
investigation, the cash deposit rate shall
be the all others rate established in the
LTFV investigation, which is 12.17
percent. See Final Determination of
Sales at Less Than Fair Value: Oil
Country Tubular Goods from Korea, 60
FR 33561 (June 28, 1995). These deposit
rates, when imposed, shall remain in
effect until publication of the final
results of the next administrative
review.
Public Comment
Pursuant to 19 CFR 351.224(b), the
Department will disclose to parties to
the proceeding any calculations
performed in connection with these
preliminary results within five days
after the date of publication of this
notice. Pursuant to 19 CFR 351.309,
interested parties may submit written
comments in response to these
preliminary results. Unless extended by
the Department, case briefs are to be
submitted within 30 days after the date
of publication of this notice, and
rebuttal briefs, limited to arguments
raised in case briefs, are to be submitted
no later than five days after the time
limit for filing case briefs. Parties who
submit arguments in this proceeding are
requested to submit with the argument:
(1) a statement of the issues, and (2) a
brief summary of the argument. Case
and rebuttal briefs must be served on
VerDate Aug<18>2005
15:25 Sep 07, 2005
Jkt 205001
interested parties in accordance with 19
CFR 351.303(f).
Also, pursuant to 19 CFR 351.310(c),
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. Parties
will be notified of the time and location.
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, no later than 120 days after
publication of these preliminary results,
unless extended. See 19 CFR 351.213(h).
Notification to Importers
This notice 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. These preliminary
results of this administrative review and
notice are issued and published in
accordance with sections 751(a)(1) and
777(i)(1) of the Act.
Dated: August 31, 2005.
Barbara E. Tillman,
Acting Assistant Secretary for Import
Administration.
[FR Doc. E5–4890 Filed 9–7–05; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
A–570–890
Wooden Bedroom Furniture From the
People’s Republic of China; Initiation
of New Shipper Reviews
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: September 8, 2005.
SUMMARY: The Department of Commerce
(the ‘‘Department’’) has determined that
four requests for a new shipper review
of the antidumping duty order on
wooden bedroom furniture from the
People’s Republic of China (‘‘PRC’’),
received before August 1, 2005,1 meet
AGENCY:
1 The Order for wooden bedroom furniture was
published on January 4, 2005. Therefore, a request
PO 00000
Frm 00014
Fmt 4703
Sfmt 4703
the statutory and regulatory
requirements for initiation. The period
of review (‘‘POR’’) of these new shipper
reviews is June 24, 2004, through June
30, 2005.
FOR FURTHER INFORMATION CONTACT:
Eugene Degnan or Robert Bolling at
(202) 482–0414 or (202) 482–3434,
respectively, AD/CVD Operations,
Office 8, Import Administration,
International Trade Administration,
U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW.,
Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
The notice announcing the
antidumping duty order on wooden
bedroom furniture from the PRC was
published on January 4, 2005. On July
8, 2005, we received a new shipper
review request from Shenyang Kunyu
Wood Industry Co., Ltd. (‘‘Kunyu’’); on
July 28, 2005, we received new shipper
review requests from Dongguan
Landmark Furniture Products Ltd.
(‘‘Landmark’’) and Meikangchi
(Nantong) Furniture Company Ltd.
(‘‘Meikangchi’’); on August 1, 2005, we
received a new shipper review request
from WBE Industries (Hui-Yang) Co.,
Ltd. (‘‘WBE’’). All of these companies
certified that they are both the
producers and exporters of the subject
merchandise upon which the respective
requests for a new shipper review are
based.
Pursuant to section 751(a)(2)(B)(i)(I) of
the Tariff Act of 1930 (the ‘‘Act’’) and
19 CFR 351.214(b)(2)(i), Kunyu,
Landmark, Meikangchi, and WBE
certified that they did not export
wooden bedroom furniture to the
United States during the period of
investigation (‘‘POI’’). In addition,
pursuant to section 751(a)(2)(B)(i)(II) of
the Act and 19 CFR 351.214(b)(2)(iii)(A),
Kunyu, Landmark, Meikangchi, and
WBE certified that, since the initiation
of the investigation, they have never
been affiliated with any exporter or
producer who exported wooden
bedroom furniture to the United States
during the POI, including those not
individually examined during the
investigation. As required by 19 CFR
351.214(b)(2)(iii)(B), each of the abovementioned companies also certified that
their export activities were not
controlled by the central government of
the PRC.
for a new shipper review based on the semi-annual
anniversary month, July, would be due to the
Department by the final day of July 2005. See 19
CFR 351.214(d)(1). However, because the final day
of July 2005 fell on a Sunday, the Department has
accepted requests filed on the next business day:
Monday, August 1, 2005.
E:\FR\FM\08SEN1.SGM
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[Federal Register Volume 70, Number 173 (Thursday, September 8, 2005)]
[Notices]
[Pages 53340-53344]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4890]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-825]
Oil Country Tubular Goods, Other Than Drill Pipe, from Korea:
Preliminary Results of Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration, U.S.
Department of Commerce.
SUMMARY: In response to a request filed by domestic interested parties,
the U.S. Department of Commerce (``the Department'') is conducting an
administrative review under the antidumping duty order on oil country
tubular goods, other than drill pipe (``OCTG''), from Korea. This
review covers the following producers: Husteel Co., Ltd. (``Husteel'')
and SeAH Steel Corporation (``SeAH''). The period of review (``POR'')
is August 1, 2003, through July 31, 2004. The preliminary results are
listed below in the section entitled ``Preliminary Results of Review.''
We preliminarily determine that both Husteel and SeAH made sales below
normal value (``NV''). If these preliminary results are adopted in our
final results, we will instruct U.S. Customs and Border Protection
(``CBP'') to assess antidumping duties based on the difference between
the constructed export price (``CEP'') and the NV.
EFFECTIVE DATE: September 8, 2005.
FOR FURTHER INFORMATION CONTACT: Scott Lindsay or Nicholas Czajkowski,
AD/CVD Operations, Office 6, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230, telephone: (202) 482-
0780 or (202) 482-1395, respectively.
SUPPLEMENTARY INFORMATION:
BACKGROUND
On August 11, 1995, the Department published in the Federal
Register an antidumping duty order on OCTG from Korea (60 FR 41058). On
August 3, 2004, the Department published a notice of an opportunity to
request an administrative review of the antidumping order on OCTG from
Korea. See Antidumping or Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity To Request Administrative Review,
69 FR 46496. On August 31, 2004, the Department received a properly
filed, timely request for an administrative review from domestic
producers, IPSCO Tubulars, Inc., Lone Star Steel Company, and Maverick
Tube Corporations (``petitioners''). On September 22, 2004, the
Department published a notice of initiation for this antidumping duty
administrative review. See Notice of Initiation of Antidumping and
Countervailing Duty Administrative Reviews and Request for Revocation
in Part, 69 FR 56745.
On November 12, 2004, the Department issued questionnaires to
Husteel and SeAH. Husteel and SeAH submitted Section A\1\ responses on
January 5, 2005 and Section B-D responses on January 18, 2005. SeAH
also submitted a Section E response on January 18, 2005. The Department
issued supplemental questionnaires on February 29, 2005, March 24,
2005, and June 6, 2005. Husteel and SeAH
[[Page 53341]]
submitted responses on March 7, 2005, April 22, 2005, and June 24,
2005.
---------------------------------------------------------------------------
\1\ Section A of the questionnaire requests general information
concerning a company's corporate structure and business practices,
the merchandise under investigation that it sells, and the manner in
which it sells that merchandise in all of its markets. Section B
requests a complete listing of all home market sales, or, if the
home market is not viable, of sales in the most appropriate third-
country market (this section is not applicable to respondents in
non-market economy cases). Section C requests a complete listing of
U.S. sales. Section D requests information on the cost of production
of the foreign like product and the constructed value of the
merchandise under investigation. Section E requests information on
further manufacturing.
---------------------------------------------------------------------------
On March 7, 2005, the Department published a notice extending the
deadline for the preliminary results of this administrative review from
May 3, 2005, until August 31, 2005. See Oil Country Tubular Goods from
Korea: Extension of Time Limit for Preliminary Results of
Administrative Review, 70 FR 10962.
On November 30, 2004, and December 14, 2004, Husteel and SeAH,
respectively submitted a request to the Department for a one-month
adjustment to the cost reporting period in this review. Husteel and
SeAH requested to report costs from July 1, 2003, through June 30,
2004, rather than for the established period of review (``POR''),
August 1, 2003, through July 31, 2004. Husteel and SeAH claimed that
the one-month shift in the reporting period would allow them to use
their semi-annual financial information, which would ease their
reporting burden and simplify accuracy and completeness tests for the
Department. Both companies stated that the shift in cost period would
not distort their reported costs. In Husteel's and SeAH's December 22,
2004, submissions, each company provided further information regarding
their request for the shift in cost period. In their December 2, 2004,
and December 28, 2004, submissions, petitioners argued that a shift in
the cost period would materially impact the antidumping analysis in
this review.
On January 5, 2005, the Department determined that a shift in cost
reporting period would be inappropriate. See Letter to Husteel and SeAH
regarding adjustment the cost reporting period dated January 5, 2005.
The Department found that the difference in costs of primary inputs and
in the cost of manufacturing between the two periods would have a
significant effect on the results in this review. Therefore, the
Department instructed Husteel and SeAH to provide cost information for
the POR.
PERIOD OF REVIEW
The POR for this administrative review is August 1, 2003, through
July 31, 2004.
SCOPE OF THE ORDER
The products covered by this order are OCTG, hollow steel products
of circular cross-section, including only oil well casing and tubing,
of iron (other than cast iron) or steel (both carbon and alloy),
whether seamless or welded, whether or not conforming to American
Petroleum Institute (``API'') or non-API specifications, whether
finished or unfinished (including green tubes and limited service OCTG
products). This scope does not cover casing or tubing pipe containing
10.5 percent or more of chromium, or drill pipe. The products subject
to this order are currently classified in the Harmonized Tariff
Schedule of the United States (``HTSUS'') under sub-headings:
7304.29.10.10, 7304.29.10.20, 7304.29.10.30, 7304.29.10.40,
7304.29.10.50, 7304.29.10.60, 7304.29.10.80, 7304.29.20.10,
7304.29.20.20, 7304.29.20.30, 7304.29.20.40, 7304.29.20.50,
7304.29.20.60, 7304.29.20.80, 7304.29.30.10, 7304.29.30.20,
7304.29.30.30, 7304.29.30.40, 7304.29.30.50, 7304.29.30.60,
7304.29.30.80, 7304.29.40.10, 7304.29.40.20, 7304.29.40.30,
7304.29.40.40, 7304.29.40.50, 7304.29.40.60, 7304.29.40.80,
7304.29.50.15, 7304.29.50.30, 7304.29.50.45, 7304.29.50.60,
7304.29.50.75, 7304.29.60.15, 7304.29.60.30, 7304.29.60.45,
7304.29.60.60, 7304.29.60.75, 7305.20.20.00, 7305.20.40.00,
7305.20.60.00, 7305.20.80.00, 7306.20.10.30, 7306.20.10.90,
7306.20.20.00, 7306.20.30.00, 7306.20.40.00, 7306.20.60.10,
7306.20.60.50, 7306.20.80.10, and 7306.20.80.50. The HTSUS sub-headings
are provided for convenience and customs purposes. The written
description remains dispositive of the scope of the order.
ANALYSIS
Product Comparisons
In accordance with section 771(16) of the Tariff Act of 1930, as
amended (``the Act''), we considered all products manufactured by the
respondents that are covered by the description contained in the
``Scope of the Order'' section above and were sold in the comparison
market during the POR, to be the foreign like product for purposes of
determining the appropriate product comparisons to U.S. sales. Where
there were no sales of identical merchandise in the comparison market
to compare to U.S. sales, we compared U.S. sales to the most similar
foreign like product on the basis of the characteristics listed in
Appendix V of the Department's November 12, 2004, antidumping
questionnaire.
Date of Sale
It is the Department's practice to use the invoice date as the date
of sale. We may, however, use a date other than the invoice date if we
are satisfied that a different date better reflects the date on which
the exporter or producer first establishes the material terms of sale.
See 19 CFR section 351.401(i); see also Antidumping Duties;
Countervailing Duties; Final Rule, 62 FR 27296, 27348-50 (May 19,
1997).
Husteel
U.S. Sales: For its U.S. sales, Husteel's customers contact Husteel
USA, Husteel's U.S. affiliate, by phone and negotiate quantity and
price. After production is complete, the merchandise is shipped from
Korea and Husteel USA issues its invoice to the U.S. customer. As such,
Husteel reported the date of sale to be the shipment date from Korea
since that date always precedes Husteel USA's invoice date. The
Department has found no information that indicates that another date
better reflects the date on which the material terms of sale were
established. Therefore, the Department is preliminarily using shipment
date as date of sale, as reported by Husteel.
SeAH
U.S. Sales: For its U.S. sales, SeAH reported two channels of
distribution: 1 - Inventory sales that were warehoused and, in most
cases, further manufactured in the United States by Pusan Pipe America
(``PPA''), SeAH's U.S. affiliate (U.S. Channel 1); and 2 - Constructed
Export Price (CEP) sales made by PPA and shipped directly to the
customer from Korea (U.S. Channel 2). In its submission, SeAH reported
a different date of sale for each of its two channels of distribution.
For sales in U.S. channel 1, SeAH reported the date of sale to be the
date of the commercial invoice issued by PPA to the unaffiliated
customer. For sales in U.S. channel 2, SeAH reported the date of sale
to be the shipment date from Korea since this date precedes the date of
PPA's commercial invoice to its unaffiliated U.S. customer. The
Department has found no information that indicates that another date
better reflects the date on which the material terms of sale were
established. Therefore, the Department is preliminarily using the
commercial invoice date as date of sale for U.S. channel 1 and the
shipment date as date of sale for U.S. channel 2, as reported by SeAH.
Canadian Sales: For sales to Canada, the comparison market in this
review (see ``Normal Value Comparisons'' below), PPA receives an
inquiry from the customer by fax or telephone. Once SeAH and PPA agree
on the price, the customer then sends a written purchase order to PPA.
The merchandise is shipped and SeAH invoices PPA. PPA
[[Page 53342]]
then invoices the Canadian customer, pays SeAH, and then receives
payment from the customer. As such, SeAH reported the shipment date
from Korea since this date precedes the date of PPA's commercial
invoice to its unaffiliated Canadian customer. The Department has found
no information that indicates that another date better reflects the
date on which the material terms of sale were established. Therefore,
the Department is preliminarily using shipment date as date of sale, as
reported by SeAH.
Normal Value Comparisons
To determine whether Husteel's or SeAH's sales of subject
merchandise to the United States were made at less than NV, we compared
each company's CEP to the NV, as described in the ``Constructed Export
Price'' and ``Normal Value'' sections of this notice, in accordance
with section 777A(d)(2) of the Act.
Selection of Comparison Market
The Department determines the viability of a comparison market by
comparing the aggregate quantity of comparison-market sales to U.S.
sales. A home market is not considered a viable comparison market if
the aggregate quantity of sales of the foreign like product in that
market amounts to less than five percent of the quantity of sales of
subject merchandise into the United States during the POR. See section
773(a)(1)(B) of the Act; see also 19 CFR 351.404. Husteel and SeAH each
reported that the aggregate quantity of sales of the foreign like
product in Korea during the POR amounted to less than five percent of
the quantity of each company's sales of subject merchandise to the
United States during the POR.
In Husteel's and SeAH's January 18, 2005, questionnaire responses,
each company reported that the aggregate quantity of their sales of the
foreign like product to the People's Republic of China (PRC) amounted
to more than five percent of the total quantity of each company's sales
of subject merchandise to the United States during the POR. However,
pursuant to section 771(18) of Act, the Department has determined that
the PRC is a non-market economy country (NME). Consequently, the
Department finds that the prices of Husteel's and SeAH's OCTG sales to
the PRC are unrepresentative. As such, pursuant to section
773(a)(1)(B)(ii)(I) of the Act, the Department finds that such prices
are inappropriate for use as a basis to establish normal value.
In its January 5, 2005, questionnaire response, Husteel reported
having no sales of OCTG to any other countries besides the United
States and the PRC during the POR. Therefore, the Department has used
constructed value (CV) for Husteel as the basis for NV for this review
based on the cost of production (COP) (Section D) questionnaire
responses submitted on January 18, 2005.
In its January 5, 2005, questionnaire response, SeAH reported sales
of OCTG to Canada and Myanmar during the POR. Since the quantity of
foreign like product sold by SeAH into Myanmar was less than five
percent of the quantity of subject merchandise sold in the United
States, the Department determined that only Canada qualified as a
viable comparison market based on the criterion established in section
773(a)(1) of the Act. The Department calculated NV based on the
information on sales to Canada provided in SeAH's April 22, 2005,
questionnaire response. For U.S. sales for which a match with Canadian
sales could not be found, the Department used CV as the basis for
comparison based on the information provided by SeAH in Section D of
its January 18, 2005, submission.
Normal Value
Price-to-Price Comparisons
SeAH: Where appropriate, we made adjustments to NV in accordance
with section 773(a)(6) of the Act. We added duty drawback and deducted
movement expenses, third country packing expenses and third country
direct selling expenses from the NV. We also made adjustments for CEP-
offset (see ``Level of Trade/CEP-offset'' section below), based on the
sum of inventory carrying costs and other indirect selling expenses. We
made further adjustments for differences in costs attributable to
differences in physical characteristics of merchandise. Finally, the
Department added U.S. packing expenses to derive the foreign unit price
in dollars (``FUPDOL'') to use as the NV.
Constructed Value
Husteel: We used CV as the basis for NV for all sales because
Husteel had no viable comparison market in accordance with section
773(a)(4) of the Act. We calculated CV in accordance with section
773(e) of the Act. Materials, labor, and factory overhead were totaled
to derive the cost of manufacturing. Interest, general and
administrative (G&A) expenses, selling expenses, profit and U.S.
packing expenses were then added to derive the CV. In accordance with
section 773(e)(2)(B)(iii) of the Act, we based profit and selling
expenses on amounts derived from SeAH's financial statements. Finally,
we deducted direct selling expenses from the CV price to derive the
FUPDOL to use as the NV.
SeAH: We used CV as the basis for NV for one sale because there
were no usable contemporaneous sales of the foreign like product in the
comparison market, in accordance with section 773(a)(4) of the Act. We
calculated CV in accordance with section 773(e) of the Act. Materials,
labor, and factory overhead were totaled to derive the cost of
manufacturing. Interest, G&A expenses, selling expenses, profit, and
U.S. packing expenses were then added to derive the CV. Profit was
calculated based on the total value of sales and total cost of
production provided by SeAH in its questionnaire response. Finally, we
deducted credit expenses and U.S. direct selling expenses from CV to
derive the FUPDOL to use as the NV.
Constructed Export Price
In accordance with section 772(b) of the Act, CEP is the price at
which the subject merchandise is first sold (or agreed to be sold) in
the United States before or after the date of importation by or for the
account of the producer or exporter of such merchandise, or by a seller
affiliated with the producer or exporter, to a purchaser not affiliated
with the producer or exporter, as adjusted under sections 772(c) and
(d) of the Act. In Husteel's and SeAH's questionnaire responses, each
company classified all of its export sales of OCTG to the United States
as CEP sales.
All of Husteel's sales are properly classified as CEP sales because
they were made for the account of Husteel by Husteel USA. Husteel
reported one channel of distribution in the U.S. market: ``produced to
order'' sales, shipped directly from Korea to the unaffiliated U.S.
customers. All of SeAH's sales are properly classified as CEP sales
because they were made for the account of SeAH by PPA. SeAH reported
two channels of distribution for its U.S. sales: (1) CEP sales of
further manufactured merchandise from PPA's inventory and (2) CEP sales
shipped directly to the U.S. customer from Korea.
The Department recalculated SeAH's starting price taking into
account, where necessary, billing adjustments and early payment
discounts. Where applicable, the Department made deductions from the
starting price for movement expenses, including foreign inland freight,
foreign and U.S. brokerage and handling, international freight, marine
insurance and U.S. customs duties in accordance with section 772(c)(2)
of the Act. See Memorandum from Nicholas Czajkowski, Case Analyst, to
the File:
[[Page 53343]]
Analysis of Husteel Corporation (``Husteel'') for the Preliminary
Results of the Administrative Review of Oil Country Tubular Goods,
Other Than Drill Pipe from Korea, and Memorandum from Nicholas
Czajkowski, Case Analyst, to the File: Analysis of SeaH Steel
Corporation (``SeAH'') for the Preliminary Results of the
Administrative Review of Oil Country Tubular Goods, Other Than Drill
Pipe from Korea, dated August 31, 2005, on file in the CRU. In
accordance with section 772(d)(1) of the Act, the Department also
deducted U.S. direct selling expenses, including credit expense,
packing expense, inventory carrying costs, profit and indirect selling
expense. We also deducted the cost of further manufacturing, where
applicable, for SeAH. Finally, we added duty drawback to the starting
price to derive a net U.S. price to use as the CEP.
Level of Trade/CEP-offset
In accordance with section 773(a)(1) of the Act, to the extent
practicable, we determined NV based on sales made in the comparison
market at the same level of trade (``LOT'') as the U.S. sales. The NV
LOT is that of the starting-price sales in the comparison market. The
Court of Appeals for the Federal Circuit has held that the statute
unambiguously requires Commerce to deduct the selling expenses set
forth in section 772(d) of the Act from the CEP starting price prior to
performing its LOT analysis. See Micron Technology, Inc. v. United
States, 243 F.3rd 1301, 1315 (Fed. Cir. 2001). Consequently, the
Department will continue to adjust the CEP, pursuant to section 772(d)
of the Act, prior to performing the LOT analysis, as articulated by the
Department's regulations at 19 CFR 351.412. When NV is based on CV, the
NV LOT is that of the sales from which we derive SG&A expenses and
profit.
To determine whether the comparison-market sales on which NV is
based are at a different LOT than EP or CEP sales, we examine stages in
the marketing process and selling functions along the chain of
distribution between the producer and the first unaffiliated customer.
If the comparison-market sales are at a different level of trade and
the difference affects price comparability, as manifested in a pattern
of consistent price differences between the sales on which NV is based
and comparison-market sales at the level of trade of the export
transaction, we make a level-of-trade adjustment under section
773(a)(7) of the Act. Finally, if the data available is not sufficient
to provide an appropriate basis to quantify a level-of-trade
adjustment, we adjust NV under section 773(a)(7) of the Act (the CEP-
offset provision).
In the current review, SeAH reported one LOT in the Canadian market
and two LOT in the United States. SeAH claimed that, once adjustments
for PPA's activities for U.S. sales, pursuant to section 772(d) of the
Act, are made, the LOT in both U.S. channels would be less advanced
than the Canadian LOT. SeAH claimed that they cannot quantify a level-
of-trade adjustment, but that a CEP offset is warranted in this case.
For this review, we obtained information from SeAH regarding the
marketing stages involved in its selling activities for its reported
U.S. and Canadian sales, including a description of the selling
activities performed by the respondent for each channel of distribution
it claimed. (See SeAH's January 18, 2005, and April 22, 2005,
questionnaire responses).
Level of Trade in the Canadian Market
SeAH reported one channel of distribution and one LOT in the
Canadian market. All sales into the Canadian market were CEP sales made
between PPA and the customer and shipped directly to the customer from
Korea. As such, we preliminarily find that all of SeAH's sales in the
Canadian market were made at one LOT.
Level of Trade in the U.S. Market
As previously stated, SeAH reported two channels of distribution
for its sales into the U.S. market, U.S. Channel 1 and U.S. Channel 2.
SeAH also reported two LOT. We examined the selling functions performed
by SeAH and/or PPA for each U.S. channel of distribution and found that
there were significant differences with respect to the inventory and
further manufacturing activities which PPA performed. In SeAH's U.S.
Channel 1 sales, subject merchandise was inventoried and further
manufactured by PPA in the United States before being sold to the
unaffiliated customer. In SeAH's U.S. Channel 2 sales, subject
merchandise was shipped directly from Korea to the unaffiliated
customer. Therefore, we preliminarily find that SeAH made its U.S.
sales at two different LOT.
Comparison of Levels of Trade Between Markets
SeAH reported that PPA is involved in all aspects of the selling
functions for both of channels of distribution in the United States. In
accordance with section 772(d) of the Act, we deducted selling expenses
from the CEP prior to performing the LOT analysis.
In accordance with section 772(d) of the Act, we deducted inventory
costs, further manufacturing costs, freight and movement expenses, and
selling and marketing expenses performed by PPA for SeAH's U.S. Channel
1 sales. After deducting these expenses, we compared the Canadian LOT
to the U.S. Channel 1 LOT. Based on our analysis, we find that the U.S.
Channel 1 sales are at a less advanced LOT than the Canadian sales.
In accordance with section 772(d) of the Act, we deducted freight
and movement expenses, and selling and marketing expenses performed by
PPA for SeAH's U.S. Channel 2 sales. After deducting these expenses, we
compared the Canadian LOT to the U.S. Channel 2 LOT. Based on our
analysis, we find that the U.S. Channel 2 sales are at a less advanced
LOT than the Canadian sales.
Therefore, since the sales in Canada are being made at a more
advanced LOT than the sales to the United States, a LOT adjustment is
appropriate for the Canadian sales in this review. However, since the
data available is not sufficient to provide an appropriate basis for
making a LOT adjustment, we made a CEP offset adjustment in accordance
with section 773(a)(7)(B) of the Act and 19 CFR 351.412(f). This offset
is equal to the amount of indirect selling expenses incurred in the
comparison market not exceeding the amount of indirect selling expenses
and commissions deducted from the U.S. price in accordance with section
772(d)(1)(D) of the Act.
Currency Conversion
We made currency conversions in accordance with section 773A of the
Act based on the exchange rates in effect on the dates of the U.S.
sales as certified by the Federal Reserve Bank.
PRELIMINARY RESULTS OF REVIEW
We preliminarily determine that the following dumping margin
exists:
------------------------------------------------------------------------
Manufacturer/Exporter Margin
------------------------------------------------------------------------
SeAH Steel Corporation...................................... 3.91%
Husteel Co., Ltd............................................ 12.30%
------------------------------------------------------------------------
Verification
As provided in section 782(i) of the Act, the Department
anticipates conducting a verification of Husteel and SeAH following the
issuance of the preliminary results.
Duty Assessment and Cash Deposit Requirements
The Department shall determine, and CBP shall assess, antidumping
duties on
[[Page 53344]]
all appropriate entries. Pursuant to 19 CFR 351.212(b), the Department
calculates an assessment rate for each importer of the subject
merchandise for each respondent. The Department will issue appropriate
assessment instructions directly to CBP within 15 days of publication
of the final results of this review.
Furthermore, the following cash deposit rates will be effective
with respect to all shipments of OCTG from Korea entered, or withdrawn
from warehouse, for consumption on or after the publication date of the
final results, as provided for by section 751(a)(1) of the Act: (1) for
Husteel and SeAH, the cash deposit rate 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 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 (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 subject merchandise; and (4)
if neither the exporter nor the manufacturer is a firm covered by this
review, a prior review, or the LTFV investigation, the cash deposit
rate shall be the all others rate established in the LTFV
investigation, which is 12.17 percent. See Final Determination of Sales
at Less Than Fair Value: Oil Country Tubular Goods from Korea, 60 FR
33561 (June 28, 1995). These deposit rates, when imposed, shall remain
in effect until publication of the final results of the next
administrative review.
Public Comment
Pursuant to 19 CFR 351.224(b), the Department will disclose to
parties to the proceeding any calculations performed in connection with
these preliminary results within five days after the date of
publication of this notice. Pursuant to 19 CFR 351.309, interested
parties may submit written comments in response to these preliminary
results. Unless extended by the Department, case briefs are to be
submitted within 30 days after the date of publication of this notice,
and rebuttal briefs, limited to arguments raised in case briefs, are to
be submitted no later than five days after the time limit for filing
case briefs. Parties who submit arguments in this proceeding are
requested to submit with the argument: (1) a statement of the issues,
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(c), 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.
Parties will be notified of the time and location. 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,
no later than 120 days after publication of these preliminary results,
unless extended. See 19 CFR 351.213(h).
Notification to Importers
This notice 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. These preliminary results of
this administrative review and notice are issued and published in
accordance with sections 751(a)(1) and 777(i)(1) of the Act.
Dated: August 31, 2005.
Barbara E. Tillman,
Acting Assistant Secretary for Import Administration.
[FR Doc. E5-4890 Filed 9-7-05; 8:45 am]
BILLING CODE 3510-DS-S