Certain Cut-to-Length Carbon-Quality Steel Plate Products From the Republic of Korea: Preliminary Results and Rescission in Part of Antidumping Duty Administrative Review, 67428-67432 [05-22137]
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67428
Federal Register / Vol. 70, No. 214 / Monday, November 7, 2005 / Notices
outside the scope of the order. See
Notice of Scope Rulings, 63 FR 29700
(June 1, 1998). On September 15, 1997,
the Department determined in response
to Nadel Trading Corporation that a
plastic ‘‘quasi–mechanical’’ pencil
known as the Bensia pencil was outside
the scope of the order. See Notice of
Scope Rulings, 62 FR 62288 (November
21, 1997).
2 The Department originally excluded from
the order exports made by Guangdong Provincial Stationery & Sporting Goods Import & Export Corp. (Guangdong) and produced by
Three Star. However, the Department determined in the 1999-2000 review that the
Guangdong/Three Star sales chain was no
longer excluded from the order, and that all
merchandise exported by Guangdong was
subject to the cash deposit requirements at
the PRC-wide rate. See 1999-2000 Final
Results.
Analysis of Comments Received:
All issues raised in these reviews are
addressed in the ‘‘Issues and Decision
Memorandum’’ (Decision
Memorandum) from Stephen J. Claeys,
Deputy Assistant Secretary for Import
Administration, to Joseph A. Spetrini,
Acting Assistant Secretary for Import
Administration, dated October 31, 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 were 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. The paper copy and
electronic version of the Decision
Memorandum are identical in content.
This notice also serves as the only
reminder to parties subject to
administrative protective orders (APO)
of their responsibility concerning the
return or destruction of proprietary
information disclosed under APO in
accordance with 19 CFR 351.305 of the
Department’s regulations. Timely
notification of the return or destruction
of APO materials or conversion to
judicial protective order is hereby
requested. Failure to comply with the
regulations and terms of an APO is a
violation which is subject to sanction.
We are issuing and publishing the
results and notice in accordance with
sections 751(c), 752, and 777(i)(1) of the
Act.
Final Results of Review:
We determine that revocation of the
antidumping duty orders on cased
pencils from the PRC would be likely to
lead to continuation or recurrence of
dumping at the following weighted–
average percentage margins:
International Trade Administration
Weighted–
Average
Margin
(percent)
Dated: October 31, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import
Administration.
[FR Doc. 05–22138 Filed 11–4–05; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
(A–580–836)
Certain Cut–to-Length Carbon–Quality
Steel Plate Products From the
Republic of Korea: Preliminary Results
and Rescission in Part of Antidumping
Duty Administrative Review
Import Administration,
International Trade Administration,
Department ofCommerce.
SUMMARY: In response to requests by a
China First Pencil Co., Ltd./
producer/exporter of the subject
Three Star Stationery Industry
Co.1 .........................................
8.60 merchandise and a domestic interested
Shanghai Lansheng Corp. ..........
19.36 party, the Department of Commerce (the
Shanghai Foreign Trade Corp. ...
11.15 Department) is conducting an
Guangdong Provincial Stationery
administrative review of the
& Sporting Goods Import &
antidumping duty order on certain cut–
Export Corp.2 ..........................
53.65 to-length carbon–quality steel plate
PRC–Wide Rate .........................
53.65
products (steel plate) from the Republic
1 The Department determined that China
of Korea (Korea). This review covers one
First Pencil Co. Ltd. and Three Star Stationery producer/exporter of the subject
Industry Co. (Three Star) should be treated as
a single entity in the December 1, 1999 merchandise. The period of review
through November 30, 2000 review. See Cer- (POR) is February 1, 2004, through
tain Cased Pencils from the People’s Republic January 31, 2005.
of China; Final Results and Partial Rescission
The Department has preliminarily
of Antidumping Duty Administrative Review,
67 FR 48612 (July 25, 2002) (1999-2000 Final determined that the company subject to
Results) and amended final results at 67 FR this review made U.S. sales at prices
59049 (September 19, 2002).
less than normal value (NV). If these
Manufacturers/Exporters/Producers
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AGENCY:
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preliminary results are adopted in our
final results of administrative review,
we will instruct U.S. Customs and
Border Protection (CBP) to assess
antidumping duties on all appropriate
entries. Interested parties are invited to
comment on these preliminary results of
review. We will issue the final results of
review no later than 120 days from the
publication date of this notice.
EFFECTIVE DATE: November 7, 2005.
FOR FURTHER INFORMATION CONTACT:
Magd Zalok or Malcolm Burke, AD/CVD
Operations, Office 4, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230,
telephone: (202) 482–4162 or (202) 482–
3584, respectively.
SUPPLEMENTARY INFORMATION:
Background
On February 1, 2005, the Department
published in the Federal Register a
notice of ‘‘Opportunity to Request
Administrative Review’’ of the
antidumping duty order on steel plate
from Korea. See Antidumping or
Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity
To Request Administrative Review, 70
FR 5136 (February 1, 2005). In
accordance with 19 CFR § 351.213(b)(2),
during February 2005, Dongkuk Steel
Mill Co., Ltd. (DSM), a producer/
exporter, requested that the Department
conduct an administrative review of its
sales and entries of subject merchandise
into the United Stated during the POR.
Additionally, in accordance with 19
CFR § 351.213(b)(1), on February 28,
2005, a domestic interested party, Nucor
Corporation (Nucor), requested that the
Department conduct a review of DSM;
Korea Iron & Steel Co., Ltd. (KISCO);
and Union Steel Manufacturing Co.
(USMC). On March 23, 2005, the
Department initiated an administrative
review of DSM, KISCO, and USMC. See
Initiation of Antidumping and
Countervailing Duty Administrative
Reviews and Requests for Revocation in
Part, 70 FR 14643 (March 23, 2005).
On March 9, 2005, the Department
issued its antidumping questionnaire to
DSM, KISCO, and USMC. On April 15,
2005, USMC informed the Department
that it had no sales or shipments of the
subject merchandise during the POR.
On May 3, 2005, KISCO informed the
Department that it had no sales or
shipments of the subject merchandise
during the POR. In April and May 2005,
DSM responded to the Department’s
antidumping questionnaire.
Subsequently, the Department issued
supplemental questionnaires to DSM.
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During this administrative review,
Nucor and one of the petitioners in this
proceeding, IPSCO Steel Inc., submitted
comments regarding the respondent’s
questionnaire and supplemental
questionnaire responses.
The Department is conducting this
administrative review in accordance
with section 751 of the Tariff Act of
1930, as amended (the Act).
Period of Review
The POR is February 1, 2004, through
January 31, 2005.
Scope of the Order
The products covered by the
antidumping duty order are certain hot–
rolled carbon–quality steel: (1)
Universal mill plates (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 nominal or actual thickness of
not less than 4 mm, which are cut–tolength (not in coils) and without
patterns in relief), of iron or non–alloyquality steel; and (2) flat–rolled
products, hot–rolled, of a nominal or
actual thickness of 4.75 mm or more and
of a width which exceeds 150 mm and
measures at least twice the thickness,
and which are cut–to-length (not in
coils). Steel products to be included in
the scope of the order are of rectangular,
square, circular or other shape and of
rectangular or non–rectangular crosssection where such non–rectangular
cross-section is achieved subsequent to
the rolling process (i.e., products which
have been ‘‘worked after rolling’’) - for
example, products which have been
beveled or rounded at the edges. Steel
products that meet the noted physical
characteristics that are painted,
varnished or coated with plastic or other
non–metallic substances are included
within this scope. Also, specifically
included in the scope of the order are
high strength, low alloy (HSLA) steels.
HSLA steels are recognized as steels
with micro–alloying levels of elements
such as chromium, copper, niobium,
titanium, vanadium, and molybdenum.
Steel products to be included in this
scope, regardless of Harmonized Tariff
Schedule of the United States (HTSUS)
definitions, are products in which: (1)
Iron predominates, by weight, over each
of the other contained elements, (2) the
carbon content is two percent or less, by
weight, and (3) none of the elements
listed below is equal to or exceeds the
quantity, by weight, respectively
indicated: 1.80 percent of manganese, or
1.50 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
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16:38 Nov 04, 2005
Jkt 208001
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 0.41 percent of titanium, or
0.15 percent of vanadium, or 0.15
percent zirconium. All products that
meet the written physical description,
and in which the chemistry quantities
do not equal or exceed any one of the
levels listed above, are within the scope
of the order unless otherwise
specifically excluded. The following
products are specifically excluded from
the order: (1) Products clad, plated, or
coated with metal, whether or not
painted, varnished or coated with
plastic or other non–metallic
substances; (2) SAE grades (formerly
AISI grades) of series 2300 and above;
(3) products made to ASTM A710 and
A736 or their proprietary equivalents;
(4) abrasion–resistant steels (i.e., USS
AR 400, USS AR 500); (5) products
made to ASTM A202, A225, A514 grade
S, A517 grade S, or their proprietary
equivalents; (6) ball bearing steels; (7)
tool steels; and (8) silicon manganese
steel or silicon electric steel. Imports of
steel plate are currently classified in the
HTSUS under subheadings:
7208.40.3030, 7208.40.3060,
7208.51.0030, 7208.51.0045,
7208.51.0060, 7208.52.0000,
7208.53.0000, 7208.90.0000,
7210.70.3000, 7210.90.9000,
7211.13.0000, 7211.14.0030,
7211.14.0045, 7211.90.0000,
7212.40.1000, 7212.40.5000,
7212.50.0000, 7225.40.3050,
7225.40.7000, 7225.50.6000,
7225.99.0090, 7226.91.5000,
7226.91.7000, 7226.91.8000,
7226.99.0000. The HTSUS subheadings
are provided for convenience and CBP
purposes. The written description of the
merchandise covered by the order is
dispositive.
Partial Rescission of Review
As noted above, USMC and KISCO
informed the Department that they had
no shipments of subject merchandise to
the United States during the POR. CBP
data indicates that there were no entries
of subject merchandise from USMC or
KISCO during the POR. See the
September 30, 2005, memorandum,
Factual Information Regarding Lack of
Entries of Subject Merchandise
Produced by USMC and KISCO to the
File from the Team, which is available
in the Central Records Unit (CRU) room
B099 in the main Department building.
No parties have submitted any
information that calls into question the
no shipment claims of USMC and
KISCO. Therefore, in accordance with
19 CFR § 351.213(d)(3), and consistent
with the Department’s practice, we are
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rescinding this review with respect to
USMC and KISCO. See, e.g., Certain
Steel Concrete Reinforcing Bars From
Turkey; Final Results, Rescission of
Antidumping Duty Administrative
Review in Part, and Determination Not
To Revoke in Part, 68 FR 53127, 53128
(September 9, 2003).
Duty Absorption
On March 28, 2005, Nucor requested
that the Department make a duty
absorption determination with respect
to each respondent. Section 751(a)(4) of
the Act provides that the Department, if
requested, shall determine during an
administrative review initiated two or
four years after the publication of the
order, ‘‘whether antidumping duties
have been absorbed by a foreign
producer or exporter. . . if the subject
merchandise is sold in the United
States’’ through an affiliated importer.
Because the order on steel plate from
Korea was published on February 10,
2000, and this review was initiated five
years thereafter (on March 23, 2005),
this review was not initiated two or four
years after the publication of the order.
Therefore, pursuant to section 751(a)(4)
of the Act, the Department will not
make a duty absorption determination
in this review.
Affiliation
During the POR, DSM sold steel plate
to Dongkuk Industries Co., Ltd. (DKI ),
a Korean trading company, which, in
turn, resold the steel plate to
unaffiliated parties in third country
markets. Additionally, DSM reported
that DKI formed a home market
subsidiary to which it sold steel plate
during the instant POR. The Department
has preliminarily determined that DSM
and DKI are under the common control
of a family grouping, and thus, are
affiliated pursuant to section 771(33)(F)
of the Act (which states that two or
more persons directly or indirectly
controlling, controlled by, or under
common control with, any person shall
be considered affiliates). Therefore, in
these preliminary results, the
Department has treated DSM and DKI as
affiliated parties. In addition, because
the family grouping noted above is also
in a position to legally and operationally
control DKI’s subsidiary, in these
preliminary results the Department has
considered the subsidiary and DSM to
be affiliated parties. For a complete
discussion of this issue see the
Memorandum from Malcolm Burke to
the File, dated concurrently with this
notice.
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Overrun Sales
DSM reported home market sales of
‘‘overrun’’ merchandise (i.e., sales of a
greater quantity of steel plate than the
customer ordered due to
overproduction). Section 773(a)(1)(B) of
the Act provides that NV shall be based
on the price at which the foreign like
product is first sold, inter alia, in the
ordinary course of trade. Section
771(15) of the Act defines ‘‘ordinary
course of trade’’ as the ‘‘conditions and
practices which, for a reasonable time
prior to the exportation of the subject
merchandise, have been normal in the
trade under consideration with respect
to merchandise of the same class or
kind.’’ In past cases, the Department has
examined certain factors to determine
whether ‘‘overrun’’ sales are in the
ordinary course of trade. See, e.g.
Certain Steel Products from Brazil, 64
FR 38756, 38770 (July 19, 1999). These
factors include: (1) whether the
merchandise is ‘‘off–quality’’ or
produced according to unusual
specifications; (2) the comparative
volume of sales and the number of
buyers in the home market; (3) the
average quantity of an overrun sale
compared to the average quantity of a
commercial sale; and (4) price and profit
differentials in the home market. Based
on our analysis of these factors and the
terms of sale, we preliminarily
determine that DSM’s overrun sales
have characteristics that are not
ordinary as compared to DSM’s other
home market sales of steel plate.
Therefore, we preliminarily determine
that DSM’s overrun sales are outside the
ordinary course of trade. Because our
analysis makes use of business
proprietary information, we have
included the analysis in a separate
memorandum. See Memorandum to the
File from the Team concerning Overrun
Sales Analysis: Dongkuk Steel Mill Co.,
Ltd., dated concurrently with this
notice.
Comparison Methodology
In order to determine whether DSM
sold steel plate in the United States at
prices less than NV, the Department
compared the constructed export price
(CEP) of individual U.S. sales to the
monthly weighted–average NV of sales
of the foreign like product made in the
ordinary course of trade. See section
777A(d)(2) of the Act; see also section
773(a)(1)(B)(i) of the Act. In accordance
with section 771(16) of the Act, the
Department considered all products
within the scope of the order under
review that the respondent sold in the
comparison market during the POR to
be foreign like products for purposes of
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Jkt 208001
determining appropriate product
comparisons to steel plate sold in the
United States. The Department
compared U.S. sales to sales made in the
comparison market within the
contemporaneous window period,
which extends from three months prior
to, to two months after, the month in
which the U.S. sale is made. Where
there were no sales of identical
merchandise made in the comparison
market in the ordinary course of trade,
the Department compared U.S. sales to
sales of the most similar foreign like
product made in the ordinary course of
trade. In making product comparisons,
the Department selected identical and
most similar foreign like products based
on the physical characteristics reported
by DSM in the following order of
importance: painted, quality,
specification, heat treatments, thickness,
width, patterns in relief, and descaling.
Constructed Export Price
The Department based the price of
each of DSM’s U.S. sales of subject
merchandise on CEP, as defined in
section 772(b) of the Act, because the
merchandise was sold, before
importation, by a seller affiliated with
the producer, to unaffiliated purchasers
in the United States. We calculated CEP
using delivered prices charged to
unaffiliated customers in the United
States. In accordance with sections
772(c)(2)(A) and 772(d) of the Act, in
calculating CEP, we made deductions
from the starting price for foreign and
U.S. brokerage and handling, foreign
and U.S. inland freight, international
freight, marine insurance, U.S. duties,
direct and indirect selling expenses, to
the extent they are associated with
economic activity in the United States,
and CEP profit. The direct selling
expenses included credit expenses and
commission expenses. Finally, pursuant
to section 772(c)(1)(C) of the Act, we
increased U.S. price by the amount of
the export subsidy found in the
countervailing duty investigation on
steel plate from Korea.1
Normal Value
After testing home market viability,
whether home market sales to affiliates
were at arm’s length prices, and whether
home market sales were at below–cost
prices, we calculated NV for DSM as
noted in the ‘‘Price–to-Price
Comparisons’’ section of this notice.
1 See Notice of Amended Final Determinations:
Certain Cut-to-Length Carbon-Quality Steel Plate
From India and the Republic of Korea; and Notice
of Countervailing Duty Orders: Certain Cut-toLength Carbon-Quality Steel Plate Products From
France, India, Indonesia, Italy, Japan and the
Republic of Korea, 65 FR 6587 (February 10, 2000).
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A. Home Market Viability
In accordance with section
773(a)(1)(C) of the Act, in order to
determine whether there was a
sufficient volume of sales in the home
market to serve as a viable basis for
calculating NV, we compared the
aggregate volume of DSM’s home market
sales of the foreign like product to the
aggregate volume of its U.S. sales of
subject merchandise. Because the
aggregate volume of DSM’s home market
sales of foreign like product exceeds five
percent of the aggregate volume of its
U.S. sales of subject merchandise, we
based NV on sales of the foreign like
product in DSM’s home market. See
section 773(a)(1)(C) of the Act.
B. Affiliated–Party Transactions and
Arm’s–Length Test
DSM reported that it made home
market sales to affiliated and
unaffiliated end users and distributors/
retailers. The Department may calculate
NV based on sales to an affiliated party
only if it is satisfied that the prices
charged to the affiliated party are
comparable to the prices at which sales
were made to parties not affiliated with
the producer, i.e., sales at arm’s–length.
See section 773(f)(2) of the Act and 19
CFR § 351.403(c). Where we found the
home market prices charged to an
affiliated customer not to be arm’s–
length prices, we excluded sales to the
affiliated customer from our analysis. To
test whether DSM’s sales to affiliates
were made at arm’s–length prices, the
Department compared the starting
prices of sales to affiliated and
unaffiliated customers, net of all
movement charges, direct selling
expenses, and packing costs. Pursuant
to 19 CFR § 351.403(c), and in
accordance with the Department’s
practice, when the prices charged to
affiliated parties were, on average,
between 98 and 102 percent of the
prices charged to unaffiliated parties for
merchandise comparable to that sold to
the affiliated party, we determine that
the sales to the affiliated party were at
arm’s–length prices. See Antidumping
Proceedings: Affiliated Party Sales in
the Ordinary Course of Trade, 67 FR
69186 (November 15, 2002). DSM’s
affiliated home market customers did
not pass the arm’s–length test.
Therefore, we have excluded these sales
from our analysis.
C. Cost of Production (COP) Analysis
In the most recently completed
administrative review, the Department
determined that DSM sold foreign like
product at prices below the cost of
producing the merchandise and
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excluded such sales from the
calculation of NV. As a result, the
Department determined that there are
reasonable grounds to believe or suspect
that during the instant POR, DSM sold
the foreign like product at prices below
the cost of producing the merchandise.
See section 773(b)(2)(A)(ii) of the Act.
Therefore, the Department initiated a
sales below cost inquiry with respect to
DSM.
1. Calculation of COP
In accordance with section 773(b)(3)
of the Act, for each unique foreign like
product sold by DSM during the POR,
we calculated a weighted–average COP
based on the sum of the respondent’s
materials and fabrication costs and
selling, general and administrative
(SG&A) expenses, including interest
expenses, and packing costs. We relied
on the costs submitted by DSM except
for the following items, which we
revised based upon our review of DSM’s
questionnaire responses: ceratin inputs
purchased from affiliates and interest
expense. For details regarding these
revisions, see the memorandum
regarding cost of production
adjustments for the preliminary results,
dated concurrently with this notice.
2. Test of Home Market Sales Prices
In order to determine whether sales
were made at prices below the COP, on
a product–specific basis, we compared
DSM’s weighted–average COPs,
adjusted as noted above, to the prices of
its home market sales of foreign like
product, as required under section
773(b) of the Act. In accordance with
sections 773(b)(1)(A) and (B),
respectively, of the Act, in determining
whether to disregard home market sales
made at prices less than the COP, we
examined whether such sales were
made: (1) in substantial quantities
within an extended period of time; and
(2) at prices which permitted the
recovery of all costs within a reasonable
period of time. We compared the COP
to home market sales prices, less
applicable discounts or rebates, selling
expenses, and movement charges.
3. Results of the COP Test
Pursuant to section 773(b)(2)(C) of the
Act, where less than 20 percent of a
respondent’s sales of a given product
were made at prices less than the COP,
we did not disregard any below–cost
sales of that product because the below–
cost sales were not made in ‘‘substantial
quantities.’’ Where 20 percent or more
of a respondent’s sales of a given
product were made at prices less than
the COP during the POR, we determined
such sales to have been made in
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16:38 Nov 04, 2005
Jkt 208001
‘‘substantial quantities’’ within an
extended period of time (i.e., one year)
pursuant to sections 773(b)(2)(C) and (B)
of the Act. Based on our comparison of
POR average costs to reported prices, we
also determined, in accordance with
section 773(b)(2)(D) of the Act, that
certain sales were made at prices which
would not permit recovery of all costs
within a reasonable period of time. As
a result, we disregarded such below–
cost sales.
Price–to-Price Comparisons
We calculated NVs for DSM based on
the prices at which the foreign like
product was first sold for consumption
in the home market, in the usual
commercial quantities, in the ordinary
course of trade, and, to the extent
possible, at the same level of trade
(LOT) as the comparison U.S. sale. See
section 773(a)(1)(B) of the Act. In
calculating NVs, where appropriate, we
increased the reported home market
sales prices by the interest and duty
drawback revenue that DSM received
from its customers and decreased the
prices by movement expenses incurred
by DSM. In addition, we adjusted the
reported home market sales prices to: (1)
account for differences between packing
costs and credit and other direct selling
expenses incurred with respect to
transactions in the U.S. and home
markets; (2) account for differences
between the physical characteristics of
the merchandise sold in comparable
transactions in the U.S. and home
markets; and, (3) to make a reasonable
allowance for other selling expenses
where commissions were paid in only
one of the markets being compared. See
section 773 (a)(6) of the Act and 19 CFR
§ 351.410 (e).
Level of Trade
To determine whether NV sales are at
a different LOT than the CEP sales,2 we
examine stages in the marketing process
and selling functions along the chain of
distribution between the producer and
the unaffiliated customer. See section
773(a)(7)(A) of the Act. If the home
market sales are at a different LOT, and
the difference affects price
comparability, as manifested by a
pattern of consistent price differences
between the sales on which NV is based
and home market sales at the LOT of the
export transaction, we make a LOT
adjustment under section 773(a)(7)(A) of
the Act. In determining whether
2 The NV LOT is based on selling activities
reflected in the starting-price of the sales in the
comparison market. For CEP sales, the U.S. LOT is
based on the selling activities reflected in the price
after deducting expenses and profit under section
772(d) of the Act.
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67431
separate LOTs exist, we obtained
information from DSM regarding the
marketing stages for the reported U.S.
and home market sales, including a
description of the selling activities
performed by DSM for each channel of
distribution. Generally, if the reported
LOTs are the same, the functions and
activities of the seller at each level
should be similar. Conversely, if a party
reports that LOTs are different for
different groups of sales, the selling
functions and activities of the seller for
each group should be dissimilar. See 19
CFR § 351.412(c)(2). For CEP sales, if
the NV LOT is more remote from the
factory than the CEP LOT and there is
no basis for determining whether the
difference in the levels between NV and
CEP affects price comparability, we
adjust NV under section 773(A)(7)(B) of
the Act (the CEP offset provision). See
Notice of Final Determination of Sales
at Less Than Fair Value: Certain Cut–toLength Carbon Steel Plate from South
Africa, 62 FR 61731 (November 19,
1997).
DSM reported that it sold the
merchandise under review to
distributors and end users in the home
market through one channel of
distribution, and to distributors in the
United States through another channel
of distribution. See DSM’s April 29,
2005, and May 6, 2005, questionnaire
responses at 13–14 and 11–12,
respectively. In the home market
channel of distribution, DSM engaged in
the same selling activities for all sales.
Likewise, in the U.S. channel of
distribution, DSM engaged in the same
selling activities for all sales. Because
the single sales channel in the United
States involves the same selling
functions for all sales, and the single
sales channel in the home market also
involves the same selling functions for
all sales, we have preliminarily
determined that there is one LOT in the
United States and one LOT in the home
market. Moreover, because the selling
functions and activities performed by
DSM with respect to its home market
sales were significantly dissimilar from
those performed for its U.S. sales, we
have preliminarily determined that,
during the POR, DSM sold foreign like
product at a different LOT than it sold
subject merchandise. However, because
no appropriate basis exists to determine
whether the difference between the U.S.
and home market LOTs affects price
comparability,3 we did not make a level
3 There is only one LOT in the home market and
no other information which would allow the
Department to examine DSM’s pricing patterns with
respect to product lines that are different from, or
broader than, the steel plate product line.
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Federal Register / Vol. 70, No. 214 / Monday, November 7, 2005 / Notices
of trade adjustment. Nevertheless, we
considered whether home market sales
were at a more advanced LOT than the
CEP sales, thus warranting a CEP offset
under section 773(a)(7)(B) of the Act. In
order to determine whether NV is at a
more advanced LOT than the CEP
transactions, the Department compared
home market selling activities with
those for CEP transactions after
deducting the expenses identified in
section 772(d) of the Act. After making
these deductions, the Department
determined that the differences between
the home and U.S. market selling
activities support a finding that DSM’s
sales in the home market were at a more
advanced LOT than the CEP sales. See
Memorandum from Malcolm Burke to
the File, concerning Level of Trade and
CEP Offset Analysis, dated concurrently
with this notice. Thus, in calculating
NV, we reduced DSM’s home market
sales prices in accordance with the CEP
offset provision.
Currency Conversion
Pursuant to section 773A(a) of the
Act, we converted amounts expressed in
foreign currencies into U.S. dollar
amounts based on the exchange rates in
effect on the dates of the relevant U.S.
sales, as certified by the Federal Reserve
Bank.
Preliminary Results of Review
As a result of this review, we
preliminarily determine that the
following weighted- average dumping
margin exists for the period February 1,
2004, through January 31, 2005:
briefs, limited to issues raised in the
case briefs. The Department will
consider rebuttal briefs filed not later
than five days after the time limit for
filing case briefs. Parties who submit
arguments are requested to submit with
each argument: (1) a statement of the
issue; (2) a brief summary of the
argument; and, (3) a table of authorities
cited. Further, the Department requests
that parties submitting written
comments provide the Department with
a diskette containing the public version
of those comments. Unless the deadline
for issuing the final results of review is
extended, the Department will issue the
final results of this administrative
review, including the results of its
analysis of issues raised in the written
comments, within 120 days of
publication of this notice in the Federal
Register.
Assessment Rates
In accordance with 19 CFR
§ 351.212(b)(1), in these preliminary
results of review we calculated
importer–specific assessment rates for
DSM’s subject merchandise. Within 15
days of publication of the final results
of review, the Department will issue
instructions to CBP directing it to assess
the final importer–specific assessment
rates (if above de minimis) uniformly on
the entered value of all entries of subject
merchandise made by the relevant
importer during the POR.
Cash Deposit Requirements
The following cash deposit
requirements will be effective for all
shipments of the subject merchandise
Manufacturer/Exporter
Margin (percent)
entered, or withdrawn from warehouse,
for consumption on or after the
Dongkuk Steel Mill Co.,
publication date of the final results of
Ltd. ............................
0.51
this administrative review, as provided
by section 751(a)(1) of the Act. In the
Public Comment
instant matter: (1) the cash deposit rate
Within 10 days of publicly
for the reviewed company will be the
announcing the preliminary results of
rate established in the final results of
this review, we will disclose, to
this review (except that if that rate is de
interested parties, any calculations
minimis, i.e., less than 0.5 percent, no
performed in connection with the
cash deposit will be required); (2) for
preliminary results. See 19 CFR
previously investigated or reviewed
§ 351.224(b). Any interested party may
companies not listed above, the cash
request a hearing within 30 days of the
deposit rate will continue to be the
publication of this notice in the Federal company–specific rate published for the
Register. See 19 CFR § 351.310(c). If
most recent period; (3) if the exporter is
requested, a hearing will be held 44
not a firm covered in this review, a prior
days after the date of publication of this review, or the less–than-fair–value
notice in the Federal Register, or the
(LTFV) investigation, but the
first workday thereafter. Interested
manufacturer is, the cash deposit rate
parties are invited to comment on the
will be the rate established for the most
preliminary results of this review. The
recent period for the manufacturer of
Department will consider case briefs
the subject merchandise; and (4) the
filed by interested parties within 30
cash deposit rate for all other
days after the date of publication of this manufacturers or exporters will
notice in the Federal Register. Also,
continue to be the ‘‘all others’’ rate of
interested parties may file rebuttal
0.98 percent, which is the ‘‘all others’’
VerDate Aug<31>2005
16:38 Nov 04, 2005
Jkt 208001
PO 00000
Frm 00023
Fmt 4703
Sfmt 4703
rate established in the LTFV
investigation, adjusted for the export
subsidy rate in the companion
countervailingduty investigation. These
cash deposit rates, when imposed, shall
remain in effect until publication of the
final results of the next administrative
review. See section 751(a)(2)(C) of the
Act.
Notification to Importers
This notice also serves as a
preliminary reminder to importers of
their responsibility under 19 CFR
§ 351.402(f)(2) 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 the antidumping
duties occurred and the concomitant
assessment of double antidumping
duties.
We are issuing and publishing this
notice in accordance with sections
751(a)(1) and 777(i)(1) of the Act.
Dated: October 31, 2005.
Joseph A. Spetrini,
Acting Assistant Secretaryfor Import
Administration.
[FR Doc. 05–22137 Filed 11–4–05; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
(A–357–802, A–583–803)
Light–Walled Welded Rectangular
Carbon Steel Tubing from Argentina
and Taiwan; Final Results of the
Expedited Sunset Reviews of the
Antidumping Duty Orders
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: On July 1, 2005, the
Department of Commerce (the
Department) initiated the second sunset
reviews of the antidumping duty orders
on light–walled welded rectangular
carbon steel tubing from Argentina and
Taiwan pursuant to section 751(c) of the
Tariff Act of 1930, as amended (the Act).
On the basis of a notice of intent to
participate and adequate substantive
responses filed on behalf of domestic
interested parties and no responses from
respondent interested parties, the
Department conducted expedited (120day) sunset reviews. See section
751(c)(3)(B) of the Act. As a result of
these sunset reviews, the Department
finds that revocation of the antidumping
duty orders would lead (or likely lead)
AGENCY:
E:\FR\FM\07NON1.SGM
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Agencies
[Federal Register Volume 70, Number 214 (Monday, November 7, 2005)]
[Notices]
[Pages 67428-67432]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-22137]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
(A-580-836)
Certain Cut-to-Length Carbon-Quality Steel Plate Products From
the Republic of Korea: Preliminary Results and Rescission in Part of
Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department ofCommerce.
SUMMARY: In response to requests by a producer/exporter of the subject
merchandise and a domestic interested party, the Department of Commerce
(the Department) is conducting an administrative review of the
antidumping duty order on certain cut-to-length carbon-quality steel
plate products (steel plate) from the Republic of Korea (Korea). This
review covers one producer/exporter of the subject merchandise. The
period of review (POR) is February 1, 2004, through January 31, 2005.
The Department has preliminarily determined that the company
subject to this review made U.S. sales at prices less than normal value
(NV). If these preliminary results are adopted in our final results of
administrative review, we will instruct U.S. Customs and Border
Protection (CBP) to assess antidumping duties on all appropriate
entries. Interested parties are invited to comment on these preliminary
results of review. We will issue the final results of review no later
than 120 days from the publication date of this notice.
EFFECTIVE DATE: November 7, 2005.
FOR FURTHER INFORMATION CONTACT: Magd Zalok or Malcolm Burke, AD/CVD
Operations, Office 4, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230, telephone: (202) 482-
4162 or (202) 482-3584, respectively.
SUPPLEMENTARY INFORMATION:
Background
On February 1, 2005, the Department published in the Federal
Register a notice of ``Opportunity to Request Administrative Review''
of the antidumping duty order on steel plate from Korea. See
Antidumping or Countervailing Duty Order, Finding, or Suspended
Investigation; Opportunity To Request Administrative Review, 70 FR 5136
(February 1, 2005). In accordance with 19 CFR Sec. 351.213(b)(2),
during February 2005, Dongkuk Steel Mill Co., Ltd. (DSM), a producer/
exporter, requested that the Department conduct an administrative
review of its sales and entries of subject merchandise into the United
Stated during the POR. Additionally, in accordance with 19 CFR Sec.
351.213(b)(1), on February 28, 2005, a domestic interested party, Nucor
Corporation (Nucor), requested that the Department conduct a review of
DSM; Korea Iron & Steel Co., Ltd. (KISCO); and Union Steel
Manufacturing Co. (USMC). On March 23, 2005, the Department initiated
an administrative review of DSM, KISCO, and USMC. See Initiation of
Antidumping and Countervailing Duty Administrative Reviews and Requests
for Revocation in Part, 70 FR 14643 (March 23, 2005).
On March 9, 2005, the Department issued its antidumping
questionnaire to DSM, KISCO, and USMC. On April 15, 2005, USMC informed
the Department that it had no sales or shipments of the subject
merchandise during the POR. On May 3, 2005, KISCO informed the
Department that it had no sales or shipments of the subject merchandise
during the POR. In April and May 2005, DSM responded to the
Department's antidumping questionnaire. Subsequently, the Department
issued supplemental questionnaires to DSM.
[[Page 67429]]
During this administrative review, Nucor and one of the petitioners in
this proceeding, IPSCO Steel Inc., submitted comments regarding the
respondent's questionnaire and supplemental questionnaire responses.
The Department is conducting this administrative review in
accordance with section 751 of the Tariff Act of 1930, as amended (the
Act).
Period of Review
The POR is February 1, 2004, through January 31, 2005.
Scope of the Order
The products covered by the antidumping duty order are certain hot-
rolled carbon-quality steel: (1) Universal mill plates (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 nominal or
actual thickness of not less than 4 mm, which are cut-to-length (not in
coils) and without patterns in relief), of iron or non-alloy-quality
steel; and (2) flat-rolled products, hot-rolled, of a nominal or actual
thickness of 4.75 mm or more and of a width which exceeds 150 mm and
measures at least twice the thickness, and which are cut-to-length (not
in coils). Steel products to be included in the scope of the order are
of rectangular, square, circular or other shape and of rectangular or
non-rectangular cross-section where such non-rectangular cross-section
is achieved subsequent to the rolling process (i.e., products which
have been ``worked after rolling'') - for example, products which have
been beveled or rounded at the edges. Steel products that meet the
noted physical characteristics that are painted, varnished or coated
with plastic or other non-metallic substances are included within this
scope. Also, specifically included in the scope of the order are high
strength, low alloy (HSLA) steels. HSLA steels are recognized as steels
with micro-alloying levels of elements such as chromium, copper,
niobium, titanium, vanadium, and molybdenum. Steel products to be
included in this scope, regardless of Harmonized Tariff Schedule of the
United States (HTSUS) definitions, are products in which: (1) Iron
predominates, by weight, over each of the other contained elements, (2)
the carbon content is two percent or less, by weight, and (3) none of
the elements listed below is equal to or exceeds the quantity, by
weight, respectively indicated: 1.80 percent of manganese, or 1.50
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
0.41 percent of titanium, or 0.15 percent of vanadium, or 0.15 percent
zirconium. All products that meet the written physical description, and
in which the chemistry quantities do not equal or exceed any one of the
levels listed above, are within the scope of the order unless otherwise
specifically excluded. The following products are specifically excluded
from the order: (1) Products clad, plated, or coated with metal,
whether or not painted, varnished or coated with plastic or other non-
metallic substances; (2) SAE grades (formerly AISI grades) of series
2300 and above; (3) products made to ASTM A710 and A736 or their
proprietary equivalents; (4) abrasion-resistant steels (i.e., USS AR
400, USS AR 500); (5) products made to ASTM A202, A225, A514 grade S,
A517 grade S, or their proprietary equivalents; (6) ball bearing
steels; (7) tool steels; and (8) silicon manganese steel or silicon
electric steel. Imports of steel plate are currently classified in the
HTSUS under subheadings: 7208.40.3030, 7208.40.3060, 7208.51.0030,
7208.51.0045, 7208.51.0060, 7208.52.0000, 7208.53.0000, 7208.90.0000,
7210.70.3000, 7210.90.9000, 7211.13.0000, 7211.14.0030, 7211.14.0045,
7211.90.0000, 7212.40.1000, 7212.40.5000, 7212.50.0000, 7225.40.3050,
7225.40.7000, 7225.50.6000, 7225.99.0090, 7226.91.5000, 7226.91.7000,
7226.91.8000, 7226.99.0000. The HTSUS subheadings are provided for
convenience and CBP purposes. The written description of the
merchandise covered by the order is dispositive.
Partial Rescission of Review
As noted above, USMC and KISCO informed the Department that they
had no shipments of subject merchandise to the United States during the
POR. CBP data indicates that there were no entries of subject
merchandise from USMC or KISCO during the POR. See the September 30,
2005, memorandum, Factual Information Regarding Lack of Entries of
Subject Merchandise Produced by USMC and KISCO to the File from the
Team, which is available in the Central Records Unit (CRU) room B099 in
the main Department building. No parties have submitted any information
that calls into question the no shipment claims of USMC and KISCO.
Therefore, in accordance with 19 CFR Sec. 351.213(d)(3), and
consistent with the Department's practice, we are rescinding this
review with respect to USMC and KISCO. See, e.g., Certain Steel
Concrete Reinforcing Bars From Turkey; Final Results, Rescission of
Antidumping Duty Administrative Review in Part, and Determination Not
To Revoke in Part, 68 FR 53127, 53128 (September 9, 2003).
Duty Absorption
On March 28, 2005, Nucor requested that the Department make a duty
absorption determination with respect to each respondent. Section
751(a)(4) of the Act provides that the Department, if requested, shall
determine during an administrative review initiated two or four years
after the publication of the order, ``whether antidumping duties have
been absorbed by a foreign producer or exporter. . . if the subject
merchandise is sold in the United States'' through an affiliated
importer. Because the order on steel plate from Korea was published on
February 10, 2000, and this review was initiated five years thereafter
(on March 23, 2005), this review was not initiated two or four years
after the publication of the order. Therefore, pursuant to section
751(a)(4) of the Act, the Department will not make a duty absorption
determination in this review.
Affiliation
During the POR, DSM sold steel plate to Dongkuk Industries Co.,
Ltd. (DKI ), a Korean trading company, which, in turn, resold the steel
plate to unaffiliated parties in third country markets. Additionally,
DSM reported that DKI formed a home market subsidiary to which it sold
steel plate during the instant POR. The Department has preliminarily
determined that DSM and DKI are under the common control of a family
grouping, and thus, are affiliated pursuant to section 771(33)(F) of
the Act (which states that two or more persons directly or indirectly
controlling, controlled by, or under common control with, any person
shall be considered affiliates). Therefore, in these preliminary
results, the Department has treated DSM and DKI as affiliated parties.
In addition, because the family grouping noted above is also in a
position to legally and operationally control DKI's subsidiary, in
these preliminary results the Department has considered the subsidiary
and DSM to be affiliated parties. For a complete discussion of this
issue see the Memorandum from Malcolm Burke to the File, dated
concurrently with this notice.
[[Page 67430]]
Overrun Sales
DSM reported home market sales of ``overrun'' merchandise (i.e.,
sales of a greater quantity of steel plate than the customer ordered
due to overproduction). Section 773(a)(1)(B) of the Act provides that
NV shall be based on the price at which the foreign like product is
first sold, inter alia, in the ordinary course of trade. Section
771(15) of the Act defines ``ordinary course of trade'' as the
``conditions and practices which, for a reasonable time prior to the
exportation of the subject merchandise, have been normal in the trade
under consideration with respect to merchandise of the same class or
kind.'' In past cases, the Department has examined certain factors to
determine whether ``overrun'' sales are in the ordinary course of
trade. See, e.g. Certain Steel Products from Brazil, 64 FR 38756, 38770
(July 19, 1999). These factors include: (1) whether the merchandise is
``off-quality'' or produced according to unusual specifications; (2)
the comparative volume of sales and the number of buyers in the home
market; (3) the average quantity of an overrun sale compared to the
average quantity of a commercial sale; and (4) price and profit
differentials in the home market. Based on our analysis of these
factors and the terms of sale, we preliminarily determine that DSM's
overrun sales have characteristics that are not ordinary as compared to
DSM's other home market sales of steel plate. Therefore, we
preliminarily determine that DSM's overrun sales are outside the
ordinary course of trade. Because our analysis makes use of business
proprietary information, we have included the analysis in a separate
memorandum. See Memorandum to the File from the Team concerning Overrun
Sales Analysis: Dongkuk Steel Mill Co., Ltd., dated concurrently with
this notice.
Comparison Methodology
In order to determine whether DSM sold steel plate in the United
States at prices less than NV, the Department compared the constructed
export price (CEP) of individual U.S. sales to the monthly weighted-
average NV of sales of the foreign like product made in the ordinary
course of trade. See section 777A(d)(2) of the Act; see also section
773(a)(1)(B)(i) of the Act. In accordance with section 771(16) of the
Act, the Department considered all products within the scope of the
order under review that the respondent sold in the comparison market
during the POR to be foreign like products for purposes of determining
appropriate product comparisons to steel plate sold in the United
States. The Department compared U.S. sales to sales made in the
comparison market within the contemporaneous window period, which
extends from three months prior to, to two months after, the month in
which the U.S. sale is made. Where there were no sales of identical
merchandise made in the comparison market in the ordinary course of
trade, the Department compared U.S. sales to sales of the most similar
foreign like product made in the ordinary course of trade. In making
product comparisons, the Department selected identical and most similar
foreign like products based on the physical characteristics reported by
DSM in the following order of importance: painted, quality,
specification, heat treatments, thickness, width, patterns in relief,
and descaling.
Constructed Export Price
The Department based the price of each of DSM's U.S. sales of
subject merchandise on CEP, as defined in section 772(b) of the Act,
because the merchandise was sold, before importation, by a seller
affiliated with the producer, to unaffiliated purchasers in the United
States. We calculated CEP using delivered prices charged to
unaffiliated customers in the United States. In accordance with
sections 772(c)(2)(A) and 772(d) of the Act, in calculating CEP, we
made deductions from the starting price for foreign and U.S. brokerage
and handling, foreign and U.S. inland freight, international freight,
marine insurance, U.S. duties, direct and indirect selling expenses, to
the extent they are associated with economic activity in the United
States, and CEP profit. The direct selling expenses included credit
expenses and commission expenses. Finally, pursuant to section
772(c)(1)(C) of the Act, we increased U.S. price by the amount of the
export subsidy found in the countervailing duty investigation on steel
plate from Korea.\1\
---------------------------------------------------------------------------
\1\ See Notice of Amended Final Determinations: Certain Cut-to-
Length Carbon-Quality Steel Plate From India and the Republic of
Korea; and Notice of Countervailing Duty Orders: Certain Cut-to-
Length Carbon-Quality Steel Plate Products From France, India,
Indonesia, Italy, Japan and the Republic of Korea, 65 FR 6587
(February 10, 2000).
---------------------------------------------------------------------------
Normal Value
After testing home market viability, whether home market sales to
affiliates were at arm's length prices, and whether home market sales
were at below-cost prices, we calculated NV for DSM as noted in the
``Price-to-Price Comparisons'' section of this notice.
A. Home Market Viability
In accordance with section 773(a)(1)(C) of the Act, in order to
determine whether there was a sufficient volume of sales in the home
market to serve as a viable basis for calculating NV, we compared the
aggregate volume of DSM's home market sales of the foreign like product
to the aggregate volume of its U.S. sales of subject merchandise.
Because the aggregate volume of DSM's home market sales of foreign like
product exceeds five percent of the aggregate volume of its U.S. sales
of subject merchandise, we based NV on sales of the foreign like
product in DSM's home market. See section 773(a)(1)(C) of the Act.
B. Affiliated-Party Transactions and Arm's-Length Test
DSM reported that it made home market sales to affiliated and
unaffiliated end users and distributors/retailers. The Department may
calculate NV based on sales to an affiliated party only if it is
satisfied that the prices charged to the affiliated party are
comparable to the prices at which sales were made to parties not
affiliated with the producer, i.e., sales at arm's-length. See section
773(f)(2) of the Act and 19 CFR Sec. 351.403(c). Where we found the
home market prices charged to an affiliated customer not to be arm's-
length prices, we excluded sales to the affiliated customer from our
analysis. To test whether DSM's sales to affiliates were made at arm's-
length prices, the Department compared the starting prices of sales to
affiliated and unaffiliated customers, net of all movement charges,
direct selling expenses, and packing costs. Pursuant to 19 CFR Sec.
351.403(c), and in accordance with the Department's practice, when the
prices charged to affiliated parties were, on average, between 98 and
102 percent of the prices charged to unaffiliated parties for
merchandise comparable to that sold to the affiliated party, we
determine that the sales to the affiliated party were at arm's-length
prices. See Antidumping Proceedings: Affiliated Party Sales in the
Ordinary Course of Trade, 67 FR 69186 (November 15, 2002). DSM's
affiliated home market customers did not pass the arm's-length test.
Therefore, we have excluded these sales from our analysis.
C. Cost of Production (COP) Analysis
In the most recently completed administrative review, the
Department determined that DSM sold foreign like product at prices
below the cost of producing the merchandise and
[[Page 67431]]
excluded such sales from the calculation of NV. As a result, the
Department determined that there are reasonable grounds to believe or
suspect that during the instant POR, DSM sold the foreign like product
at prices below the cost of producing the merchandise. See section
773(b)(2)(A)(ii) of the Act. Therefore, the Department initiated a
sales below cost inquiry with respect to DSM.
1. Calculation of COP
In accordance with section 773(b)(3) of the Act, for each unique
foreign like product sold by DSM during the POR, we calculated a
weighted-average COP based on the sum of the respondent's materials and
fabrication costs and selling, general and administrative (SG&A)
expenses, including interest expenses, and packing costs. We relied on
the costs submitted by DSM except for the following items, which we
revised based upon our review of DSM's questionnaire responses: ceratin
inputs purchased from affiliates and interest expense. For details
regarding these revisions, see the memorandum regarding cost of
production adjustments for the preliminary results, dated concurrently
with this notice.
2. Test of Home Market Sales Prices
In order to determine whether sales were made at prices below the
COP, on a product-specific basis, we compared DSM's weighted-average
COPs, adjusted as noted above, to the prices of its home market sales
of foreign like product, as required under section 773(b) of the Act.
In accordance with sections 773(b)(1)(A) and (B), respectively, of the
Act, in determining whether to disregard home market sales made at
prices less than the COP, we examined whether such sales were made: (1)
in substantial quantities within an extended period of time; and (2) at
prices which permitted the recovery of all costs within a reasonable
period of time. We compared the COP to home market sales prices, less
applicable discounts or rebates, selling expenses, and movement
charges.
3. Results of the COP Test
Pursuant to section 773(b)(2)(C) of the Act, where less than 20
percent of a respondent's sales of a given product were made at prices
less than the COP, we did not disregard any below-cost sales of that
product because the below-cost sales were not made in ``substantial
quantities.'' Where 20 percent or more of a respondent's sales of a
given product were made at prices less than the COP during the POR, we
determined such sales to have been made in ``substantial quantities''
within an extended period of time (i.e., one year) pursuant to sections
773(b)(2)(C) and (B) of the Act. Based on our comparison of POR average
costs to reported prices, we also determined, in accordance with
section 773(b)(2)(D) of the Act, that certain sales were made at prices
which would not permit recovery of all costs within a reasonable period
of time. As a result, we disregarded such below-cost sales.
Price-to-Price Comparisons
We calculated NVs for DSM based on the prices at which the foreign
like product was first sold for consumption in the home market, in the
usual commercial quantities, in the ordinary course of trade, and, to
the extent possible, at the same level of trade (LOT) as the comparison
U.S. sale. See section 773(a)(1)(B) of the Act. In calculating NVs,
where appropriate, we increased the reported home market sales prices
by the interest and duty drawback revenue that DSM received from its
customers and decreased the prices by movement expenses incurred by
DSM. In addition, we adjusted the reported home market sales prices to:
(1) account for differences between packing costs and credit and other
direct selling expenses incurred with respect to transactions in the
U.S. and home markets; (2) account for differences between the physical
characteristics of the merchandise sold in comparable transactions in
the U.S. and home markets; and, (3) to make a reasonable allowance for
other selling expenses where commissions were paid in only one of the
markets being compared. See section 773 (a)(6) of the Act and 19 CFR
Sec. 351.410 (e).
Level of Trade
To determine whether NV sales are at a different LOT than the CEP
sales,\2\ we examine stages in the marketing process and selling
functions along the chain of distribution between the producer and the
unaffiliated customer. See section 773(a)(7)(A) of the Act. If the home
market sales are at a different LOT, and the difference affects price
comparability, as manifested by a pattern of consistent price
differences between the sales on which NV is based and home market
sales at the LOT of the export transaction, we make a LOT adjustment
under section 773(a)(7)(A) of the Act. In determining whether separate
LOTs exist, we obtained information from DSM regarding the marketing
stages for the reported U.S. and home market sales, including a
description of the selling activities performed by DSM for each channel
of distribution. Generally, if the reported LOTs are the same, the
functions and activities of the seller at each level should be similar.
Conversely, if a party reports that LOTs are different for different
groups of sales, the selling functions and activities of the seller for
each group should be dissimilar. See 19 CFR Sec. 351.412(c)(2). For
CEP sales, if the NV LOT is more remote from the factory than the CEP
LOT and there is no basis for determining whether the difference in the
levels between NV and CEP affects price comparability, we adjust NV
under section 773(A)(7)(B) of the Act (the CEP offset provision). See
Notice of Final Determination of Sales at Less Than Fair Value: Certain
Cut-to-Length Carbon Steel Plate from South Africa, 62 FR 61731
(November 19, 1997).
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\2\ The NV LOT is based on selling activities reflected in the
starting-price of the sales in the comparison market. For CEP sales,
the U.S. LOT is based on the selling activities reflected in the
price after deducting expenses and profit under section 772(d) of
the Act.
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DSM reported that it sold the merchandise under review to
distributors and end users in the home market through one channel of
distribution, and to distributors in the United States through another
channel of distribution. See DSM's April 29, 2005, and May 6, 2005,
questionnaire responses at 13-14 and 11-12, respectively. In the home
market channel of distribution, DSM engaged in the same selling
activities for all sales. Likewise, in the U.S. channel of
distribution, DSM engaged in the same selling activities for all sales.
Because the single sales channel in the United States involves the same
selling functions for all sales, and the single sales channel in the
home market also involves the same selling functions for all sales, we
have preliminarily determined that there is one LOT in the United
States and one LOT in the home market. Moreover, because the selling
functions and activities performed by DSM with respect to its home
market sales were significantly dissimilar from those performed for its
U.S. sales, we have preliminarily determined that, during the POR, DSM
sold foreign like product at a different LOT than it sold subject
merchandise. However, because no appropriate basis exists to determine
whether the difference between the U.S. and home market LOTs affects
price comparability,\3\ we did not make a level
[[Page 67432]]
of trade adjustment. Nevertheless, we considered whether home market
sales were at a more advanced LOT than the CEP sales, thus warranting a
CEP offset under section 773(a)(7)(B) of the Act. In order to determine
whether NV is at a more advanced LOT than the CEP transactions, the
Department compared home market selling activities with those for CEP
transactions after deducting the expenses identified in section 772(d)
of the Act. After making these deductions, the Department determined
that the differences between the home and U.S. market selling
activities support a finding that DSM's sales in the home market were
at a more advanced LOT than the CEP sales. See Memorandum from Malcolm
Burke to the File, concerning Level of Trade and CEP Offset Analysis,
dated concurrently with this notice. Thus, in calculating NV, we
reduced DSM's home market sales prices in accordance with the CEP
offset provision.
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\3\ There is only one LOT in the home market and no other
information which would allow the Department to examine DSM's
pricing patterns with respect to product lines that are different
from, or broader than, the steel plate product line.
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Currency Conversion
Pursuant to section 773A(a) of the Act, we converted amounts
expressed in foreign currencies into U.S. dollar amounts based on the
exchange rates in effect on the dates of the relevant U.S. sales, as
certified by the Federal Reserve Bank.
Preliminary Results of Review
As a result of this review, we preliminarily determine that the
following weighted- average dumping margin exists for the period
February 1, 2004, through January 31, 2005:
------------------------------------------------------------------------
Manufacturer/Exporter Margin (percent)
------------------------------------------------------------------------
Dongkuk Steel Mill Co., Ltd......................... 0.51
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Public Comment
Within 10 days of publicly announcing the preliminary results of
this review, we will disclose, to interested parties, any calculations
performed in connection with the preliminary results. See 19 CFR Sec.
351.224(b). Any interested party may request a hearing within 30 days
of the publication of this notice in the Federal Register. See 19 CFR
Sec. 351.310(c). If requested, a hearing will be held 44 days after
the date of publication of this notice in the Federal Register, or the
first workday thereafter. Interested parties are invited to comment on
the preliminary results of this review. The Department will consider
case briefs filed by interested parties within 30 days after the date
of publication of this notice in the Federal Register. Also, interested
parties may file rebuttal briefs, limited to issues raised in the case
briefs. The Department will consider rebuttal briefs filed not later
than five days after the time limit for filing case briefs. Parties who
submit arguments are requested to submit with each argument: (1) a
statement of the issue; (2) a brief summary of the argument; and, (3) a
table of authorities cited. Further, the Department requests that
parties submitting written comments provide the Department with a
diskette containing the public version of those comments. Unless the
deadline for issuing the final results of review is extended, the
Department will issue the final results of this administrative review,
including the results of its analysis of issues raised in the written
comments, within 120 days of publication of this notice in the Federal
Register.
Assessment Rates
In accordance with 19 CFR Sec. 351.212(b)(1), in these preliminary
results of review we calculated importer-specific assessment rates for
DSM's subject merchandise. Within 15 days of publication of the final
results of review, the Department will issue instructions to CBP
directing it to assess the final importer-specific assessment rates (if
above de minimis) uniformly on the entered value of all entries of
subject merchandise made by the relevant importer during the POR.
Cash Deposit Requirements
The following cash deposit requirements will be effective for all
shipments of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the publication date of the
final results of this administrative review, as provided by section
751(a)(1) of the Act. In the instant matter: (1) the cash deposit rate
for the reviewed company will be the rate established in the final
results of this review (except that if that rate is de minimis, i.e.,
less than 0.5 percent, no cash deposit will be required); (2) for
previously investigated or reviewed companies not listed above, the
cash deposit rate will continue to be the company-specific rate
published for the most recent period; (3) if the exporter is not a firm
covered in this review, a prior review, or the 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) the cash deposit rate
for all other manufacturers or exporters will continue to be the ``all
others'' rate of 0.98 percent, which is the ``all others'' rate
established in the LTFV investigation, adjusted for the export subsidy
rate in the companion countervailingduty investigation. These cash
deposit rates, when imposed, shall remain in effect until publication
of the final results of the next administrative review. See section
751(a)(2)(C) of the Act.
Notification to Importers
This notice also serves as a preliminary reminder to importers of
their responsibility under 19 CFR Sec. 351.402(f)(2) 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 the antidumping duties occurred and
the concomitant assessment of double antidumping duties.
We are issuing and publishing this notice in accordance with
sections 751(a)(1) and 777(i)(1) of the Act.
Dated: October 31, 2005.
Joseph A. Spetrini,
Acting Assistant Secretaryfor Import Administration.
[FR Doc. 05-22137 Filed 11-4-05; 8:45 am]
BILLING CODE 3510-DS-S