Initiation of Antidumping Duty Investigations: Carbon and Certain Alloy Steel Wire Rod from Germany, Turkey, and the People's Republic of China, 72781-72787 [05-23738]
Download as PDF
<![CDATA[
Federal Register / Vol. 70, No. 234 / Wednesday, December 7, 2005 / Notices
DEPARTMENT OF AGRICULTURE
Risk Management Agency
Notice of Intent To Seek Approval To
Conduct an Information Collection
Risk Management Agency,
USDA.
ACTION: Notice and request for
comments.
AGENCY:
SUMMARY: In accordance with the
Paperwork Reduction Act of 1995, this
notice announces the intention of the
Risk Management Agency to request
approval for the collection of
information in support of the agency’s
mission under section 522(d) of the
Federal Crop Insurance Act to develop
and implement risk management tools
for producers of agricultural
commodities through partnership
agreements.
DATES: Written comments on this notice
will be accepted until close of business
February 6, 2006.
ADDRESSES: Interested persons are
invited to submit written comments to
Virginia Guzman, United States
Department of Agriculture (USDA),
Research and Evaluation Division,
Federal Crop Insurance Corporation,
Risk Management Agency, 6501 Beacon
Drive, Mail Stop 813, Kansas City, MO
64133. Written comments may also be
submitted electronically to: RMARED—
PRA@rm.fcic.usda.gov.
FOR FURTHER INFORMATION CONTACT:
Virginia Guzman or David Fulk, at the
Kansas City, MO address listed above,
telephone (816) 926–6343.
SUPPLEMENTARY INFORMATION:
Title: Organic Price Project.
OMB Number: 0563–NEW.
Type of Request: New Information
Collection.
Abstract: The Risk Management
Agency intends to collect price
information on selected organic
commodities from major regional
distributors of organic products in
support of a partnership agreement with
the Rodale Institute to develop an
organic price reporting system. Prices
will be collected once each week by
various means including e-mail,
telephone, fax, and from Web sites in
whatever form is customarily used by
the distributor to post prices. The price
information that is collected will be
posted on an existing Web site
maintained by the Rodale Institute to
assist organic producers and allied
interests in price discovery. We are
asking the Office of Management and
Budget (OMB) to approve this
information collection activity for 3
years.
VerDate Aug<31>2005
13:01 Dec 06, 2005
Jkt 208001
The purpose of this notice is to solicit
comments from the public concerning
the information collection activities.
These comments will help us:
1. Evaluate whether the proposed
collection of information is necessary
for the proper performance of the
functions of the agency, including
whether the information will have
practical utility;
2. Evaluate the accuracy of the
agency’s estimate of the burden of the
proposed collection of information;
3. Enhance the quality, utility, and
clarity of the information to be
collected; and
4. Minimize the burden of the
collection of information on those who
are to respond, through use, as
appropriate, of automated, electronic,
mechanical, or other collection
technologies, e.g. permitting electronic
submission of responses.
Estimate of Burden: The public
reporting burden for this collection of
information is estimated to average 1
minute per response for a total annual
burden of 53 hours.
Respondents/Affected Entities:
Individuals and businesses involved in
the production of organic crops:
academia, including individuals or
representatives of universities and
colleges who are involved in research
and issues of American agriculture and
risk management.
Estimated annual number of
respondents: 60.
Estimated annual number of
responses: 3,120 or 52 per respondent.
Estimated total annual burden on
respondents: 53 hours.
All responses to this notice will be
summarized and included in the request
for OMB approval. All comments will
also become a matter of public record.
Signed in Washington, DC, on November
30, 2005.
Eldon Gould,
Manager, Federal Crop Insurance
Corporation.
[FR Doc. E5–6987 Filed 12–6–05; 8:45 am]
BILLING CODE 3410–08–P
PO 00000
72781
DEPARTMENT OF COMMERCE
International Trade Administration
A–428–839
A–489–814
A–570–902
Initiation of Antidumping Duty
Investigations: Carbon and Certain
Alloy Steel Wire Rod from Germany,
Turkey, and the People’s Republic of
China
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: December 7, 2005.
FOR FURTHER INFORMATION CONTACT:
Tyler Weinhold (Germany), John Drury
(Turkey), or Matthew Renkey (People’s
Republic of China), AD/CVD
Operations, Import Administration,
International Trade Administration,
U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW,
Washington, DC 20230; telephone: (202)
482–1121, (202) 482–0195 and (202)
482–2312, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
INITIATION OF INVESTIGATIONS
The Petitions
On November 10, 2005, the
Department of Commerce (‘‘the
Department’’) received Petitions (‘‘the
Petitions’’) concerning imports of
carbon and certain alloy steel wire rod
(‘‘CASWR’’) from Germany (‘‘German
Petition’’), Turkey (‘‘Turkish Petition’’),
and the People’s Republic of China
(‘‘PRC’’)(‘‘PRC Petition’’) filed in proper
form by Connecticut Steel Corp., Gerdau
Ameristeel U.S. Inc., Keystone
Consolidated Industries, Inc., ISG
Georgetown, Inc. (Mittal Steel U.S.A.
Georgetown), and Rocky Mountain Steel
Mills (‘‘Petitioners’’) on behalf of the
domestic industry producing CASWR.
The period of investigation (‘‘POI’’) for
Germany and Turkey is October 1, 2004,
through September 30, 2005. The POI
for the PRC is April 1, 2005, through
September 30, 2005.
In accordance with section 732(b) of
the Tariff Act of 1930, as amended (‘‘the
Act’’), Petitioners alleged that imports of
CASWR from Germany, Turkey and the
PRC are being, or are likely to be, sold
in the United States at less than fair
value within the meaning of section 731
of the Act, and that such imports are
materially injuring and threaten to
injure an industry in the United States.
Scope of Investigations
The merchandise subject to this scope
is certain hot–rolled products of carbon
steel and alloy steel, in coils, of
Frm 00004
Fmt 4703
Sfmt 4703
E:\FR\FM\07DEN1.SGM
07DEN1
72782
Federal Register / Vol. 70, No. 234 / Wednesday, December 7, 2005 / Notices
approximately circular cross section,
4.75 mm or more, but less than 19.00
mm, in solid cross–sectional diameter.
Specifically excluded are steel products
possessing the above–noted physical
characteristics and meeting the
Harmonized Tariff Schedule of the
United States (‘‘HTSUS’’) definitions for
(a) stainless steel; (b) tool steel; (c) high
nickel steel; (d) ball bearing steel; and
(e) concrete reinforcing bars. Also
excluded are free machining steel
products (i.e., products that contain by
weight one or more of the following
elements: 0.03 percent or more of lead,
0.05 percent or more of bismuth, 0.08
percent or more of sulfur, more than
0.04 percent of phosphorus, more than
0.05 percent of selenium, or more than
0.01 percent of tellurium).
All products meeting the physical
description of subject merchandise that
are not specifically excluded are
included in this scope. The products
under review are currently classifiable
under subheadings 7213.91.3011,
7213.91.3015, 7213.91.3092,
7213.91.4500, 7213.91.6000,
7213.99.0030, 7213.99.0090,
7227.20.0000, and 7227.90.6050 of the
HTSUS. Although the HTSUS
subheadings are provided for
convenience and customs purposes, the
written description of the scope of this
proceeding is dispositive.
Comments on Scope of Investigations
During our review of the Petitions, we
discussed the scope with Petitioners to
ensure that it accurately reflects the
product for which the domestic industry
is seeking relief. Moreover, as discussed
in the preamble to the Department’s
regulations, we are setting aside a
period for interested parties to raise
issues regarding product coverage. See
Antidumping Duties; Countervailing
Duties; Final Rule, 62 FR 27296, 27323
(May 19, 1997). The Department
encourages all interested parties to
submit such comments within 20
calendar days of publication of this
initiation notice. Comments should be
addressed to Import Administration’s
Central Records Unit in Room 1870,
U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW,
Washington, DC 20230 - Attention:
Robert James. The period of scope
consultations is intended to provide the
Department with ample opportunity to
consider all comments and consult with
interested parties prior to the issuance
of the preliminary determinations.
Determination of Industry Support for
the Petitions
Section 732(b)(1) of the Act requires
that a petition be filed by or on behalf
VerDate Aug<31>2005
13:01 Dec 06, 2005
Jkt 208001
of the domestic industry. In order to
determine whether a petition has been
filed by or on behalf of the industry, the
Department, pursuant to section
732(c)(4)(A) of the Act, determines
whether a minimum percentage of the
relevant industry supports the petition.
A petition meets this requirement if the
domestic producers or workers who
support the petition account for: (i) at
least 25 percent of the total production
of the domestic like product; and (ii)
more than 50 percent of the production
of the domestic like product produced
by that portion of the industry
expressing support for, or opposition to,
the petition. Moreover, section
732(c)(4)(D) of the Act provides that, if
the petition does not establish support
of domestic producers or workers
accounting for more than 50 percent of
the total production of the domestic like
product, the Department shall: (i) poll
the industry or rely on other
information in order to determine if
there is support for the petition, as
required by subparagraph (A), or (ii)
determine industry support using a
statistically valid sampling method.
Section 771(4)(A) of the Act defines
the ‘‘industry’’ as the producers of a
domestic like product. Thus, to
determine whether a petition has the
requisite industry support, the statute
directs the Department to look to
producers and workers who produce the
domestic like product. The International
Trade Commission (‘‘ITC’’), which is
responsible for determining whether the
domestic industry has been injured,
must also determine what constitutes a
domestic like product in order to define
the industry. While both the Department
and the ITC must apply the same
statutory definition regarding the
domestic like product (section 771(10)
of the Act), they do so for different
purposes and pursuant to a separate and
distinct authority. In addition, the
Department’s determination is subject to
limitations of time and information.
Although this may result in different
definitions of the like product, such
differences do not render the decision of
either agency contrary to law. See
USEC, Inc. v. United States, 132 F.
Supp. 2d 1, 8 (CIT 2001), citing Algoma
Steel Corp. Ltd. v. United States, 688 F.
Supp. 639, 644 (1988), aff’d 865 F.2d
240 (Fed. Cir. 1989), cert. denied 492
U.S. 919 (1989).
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
most similar in characteristics and uses
with, the article subject to an
investigation under this title.’’ Thus, the
reference point from which the
domestic like product analysis begins is
PO 00000
Frm 00005
Fmt 4703
Sfmt 4703
‘‘the article subject to an investigation,’’
(i.e., the class or kind of merchandise to
be investigated, which normally will be
the scope as defined in the petition).
With regard to the domestic like
product, Petitioners do not offer a
definition of domestic like product
distinct from the scope of the
investigation. See Germany Initiation
Checklist, Turkey Initiation Checklist,
and PRC Initiation Checklist at
Attachment II (Industry Support). Based
on our analysis of the information
submitted in the Petitions we have
determined there is a single domestic
like product, carbon and certain alloy
steel wire rod, and we have analyzed
industry support in terms of that
domestic like product.
Our review of the data provided in the
Petitions, Supplements to the Petitions,
dated November 18, 2005, and
November 22, 2005, and other
information readily available to the
Department indicates that Petitioners
have established industry support
representing at least 25 percent of the
total production of the domestic like
product; and more than 50 percent of
the production of the domestic like
product produced by that portion of the
industry expressing support for or
opposition to the Petitions, requiring no
further action by the Department
pursuant to section 732(c)(4)(D) of the
Act. In addition, the Department
received no opposition to the Petitions
from domestic producers of the like
product. Therefore, the domestic
producers (or workers) who support the
Petitions account for at least 25 percent
of the total production of the domestic
like product, and the requirements of
section 732(c)(4)(A)(i) of the Act are
met. Furthermore, the domestic
producers who support the Petitions
account for more than 50 percent of the
production of the domestic like product
produced by that portion of the industry
expressing support for, or opposition to,
the Petitions. Thus, the requirements of
section 732(c)(4)(A)(ii) of the Act also
are met. Accordingly, the Department
determines that the Petitions were filed
on behalf of the domestic industry
within the meaning of section 732(b)(1)
of the Act. See Germany Initiation
Checklist, Turkey Initiation Checklist,
and PRC Initiation Checklist at
Attachment II (Industry Support).
The Department finds that Petitioners
filed the Petitions on behalf of the
domestic industry because they are
interested parties as defined in section
771(9)(E) and (F) of the Act and have
demonstrated sufficient industry
support with respect to the antidumping
investigations that it is requesting the
Department initiate. See Germany
E:\FR\FM\07DEN1.SGM
07DEN1
Federal Register / Vol. 70, No. 234 / Wednesday, December 7, 2005 / Notices
Initiation Checklist, Turkey Initiation
Checklist, and PRC Initiation Checklist
at Attachment II (Industry Support).
U.S. Price and Normal Value
The following is a description of the
allegation of sales at less than fair value
upon which the Department based its
decision to initiate these investigations
on Germany, Turkey, and the PRC. The
sources of data for the deductions and
adjustments relating to the U.S. price,
home–market price (Germany and
Turkey), constructed value (Germany
and Turkey), and the factors of
production (PRC only) are also
discussed in the country–specific
Initiation Checklist. See Germany
Initiation Checklist, Turkey Initiation
Checklist, and PRC Initiation Checklist.
Should the need arise to use any of this
information as facts available under
section 776 of the Act in our
preliminary or final determinations, we
will reexamine the information and
revise the margin calculations, if
appropriate.
Turkey
Export Price (‘‘EP’’)
Petitioners based U.S. price on EP.
Petitioners obtained a price for a sale to
an end user of the subject merchandise
within the POI. Petitioners provided an
affidavit with the information. See
Volume II of the Turkish Petition at
Exhibit 5. The price quoted is for a
specific grade, quality, and diameter
falling within the scope of this petition.
Export price was the basis for U.S. price
because CASWR was offered for sale to
an unaffiliated U.S. purchaser prior to
the date of importation. Petitioners
deducted from the offer price the
expenses associated with exporting and
delivering the product: foreign inland
freight, foreign brokerage and handling,
ocean freight and insurance, U.S. port
charges, and a three percent trading
company markup, which was based
upon research from a market research
company as customary for this type of
transaction. See Volume II of the
Turkish Petition at page 5, Exhibit 6,
and Exhibit 9. In addition, Petitioners
adjusted for differences in imputed
credit expenses by subtracting home
market credit expenses to the home
market price and by adding U.S.
imputed credit expenses to the home
market price. See Volume II of the
Turkish Petition at Exhibit 6, and
Supplement to the Turkish Petition,
dated November 18, 2005, at Revised
Exhibit 10, and Supplement to the
Turkish Petition, dated November 22,
2005 at 2nd Revised Exhibit 6.
VerDate Aug<31>2005
13:01 Dec 06, 2005
Jkt 208001
The price quoted was delivered to the
customer and included foreign inland
freight, and insurance, U.S. import
duties and port fees, U.S. inland freight,
and an estimated trading company
resale markup. See Volume II of the
Turkish Petition at Exhibit 6, and
Supplement to the Turkish Petition,
dated November 18, 2005, at Revised
Exhibit 10, and Supplement to the
Turkish Petition, dated November 22,
2005, at 2nd Revised Exhibit 6.
Normal Value (‘‘NV’’)
To calculate NV, Petitioners provided
a price quote from Habas Sinai ve Tibbi
Galar Istihsal Endustrisi AS (‘‘Habas
Sinai’’), a Turkish producer of CASWR.
The information was obtained from a
confidential market research company.
The price quote is for a specific grade,
quality and diameter falling within the
scope of this petition, with FOB mill
(i.e., ex–works) delivery terms. See
Volume II of the Turkish Petition at
pages 1–2 and Memorandum to the File,
Telephone Call to Market Research Firm
Regarding the Antidumping Petition on
Carbon and Certain Alloy Steel Wire
Rod (CASWR) from Turkey dated
November 18, 2005. Petitioners made
adjustments for imputed credit
expenses. See Volume II of the Turkish
Petition at Exhibit 3 and 4, and
Supplement to the Turkish Petition,
dated November 18, 2005, at
Attachment 1 and Revised Exhibit 10.
The Turkish HM price per metric ton
was converted to short tons using the
standard conversion factor. No
additional adjustments were made to
derive the HM price.
Cost of Production
Petitioners have provided information
demonstrating reasonable grounds to
believe or suspect that sales of CASWR
in the home market were made at prices
below the fully absorbed cost of
production (‘‘COP’’), within the
meaning of section 773(b) of the Act,
and requested that the Department
conduct a country–wide sales–belowcost investigation. Pursuant to section
773(b)(3) of the Act, COP consists of the
cost of manufacturing (‘‘COM’’); selling,
general and administrative (‘‘SG&A’’)
expenses; financial expenses; and
packing expenses. Petitioners calculated
COM and packing expenses based on
the weighted–averaged production
experiences of U.S. CASWR producers
during the POI, adjusted for known
differences between the costs incurred
to manufacture CASWR in the United
States and in Turkey using publicly
available data. To calculate SG&A and
financial expenses, Petitioner relied on
PO 00000
Frm 00006
Fmt 4703
Sfmt 4703
72783
the fiscal year 2003 financial statements
of Habas Sinai.
Based upon a comparison of the
prices of the foreign–like product in the
home market to the calculated COP of
the product, we find reasonable grounds
to believe or suspect that sales of the
foreign like product were made below
the COP, within the meaning of section
773(b)(2)(A)(i) of the Act. Accordingly,
the Department is initiating a country–
wide cost investigation. See Turkey
Initiation Checklist.
Normal Value based on Constructed
Value (‘‘CV’’)
Pursuant to sections 773(a)(4), 773(b)
and 773(e) of the Act, Petitioners also
based NV on CV. Petitioners calculated
CV using the same COM, SG&A,
financial and packing figures used to
compute the COP. Petitioners then
calculated profit based on the FY 2003
financial statements of a Turkish
CASWR producer, Habas Sinai. See
Turkey Initiation Checklist.
Germany
Export Price
To calculate EP, Petitioners obtained
a price for a sale of subject merchandise,
made within the POI, manufactured by
B.E.S. Brandenburger Electrostahlwerke,
GmbH (‘‘Brandenburger’’) and sold
through Brandenburger’s affiliated
trading company, Riva Stahl. Petitioners
provided an affidavit with this
information. See Volume II of the
German Petition at page 2 and Exhibit
5. The price quoted is for a specific
grade, quality, and diameter falling
within the scope of this petition.
The price quoted was FOB U.S. port,
and included foreign inland freight
charges, ocean freight and insurance
from Germany, and U.S. port fees. See
Volume II of the German Petition at
pages 2, 3, and 4 and Exhibit 5, and
Supplement to the German Petition,
dated November 18, 2005, at
Attachment 1.
Petitioners deducted a three percent
mark–up based upon the actual
experience of Stemcor, an international
steel trading company, as a publicly
available surrogate for Riva’s
experiences. See Volume II of the
German Petition at pages 2 and 3 and
Exhibit 8 and Supplement to the
German Petition, dated November 18,
2005, at Attachment 1.
Normal Value
To calculate NV, Petitioners obtained
a price for subject merchandise, as
offered for sale by Brandenburger to an
unaffiliated customer in the home
market. This information was provided
by a market researcher. The price quote
E:\FR\FM\07DEN1.SGM
07DEN1
72784
Federal Register / Vol. 70, No. 234 / Wednesday, December 7, 2005 / Notices
is for a specific grade, quality, and
diameter falling within the scope of this
petition. See Supplement to the German
Petition, dated November 19, 2005,
Foreign Market Research Declaration,
and Memorandum to the File,
Telephone Call to Market Research Firm
Regarding the Antidumping Petition on
Carbon and Certain Alloy Steel Wire
Rod (CASWR) from Germany dated
November 18, 2005.
Petitioners made adjustments to home
market gross price for foreign inland
freight expense and imputed credit
expense. See Volume II of the German
Petition at pages 1 and 2 and Exhibit 2
and Supplement to the Petition, dated
November 15, 2005, Foreign Market
Research Declaration at Exhibit 1. To
calculate the reported foreign inland
freight, petitioners relied on a survey of
quotes gathered by the market
researcher. See Memorandum to the
File, Telephone Call to Market Research
Firm Regarding the Antidumping
Petition on CASWR from Germany
dated November 18, 2005.
Cost of Production
Petitioners have provided information
demonstrating reasonable grounds to
believe or suspect that sales of CASWR
in the home market were made at prices
below the fully absorbed COP, within
the meaning of section 773(b) of the Act,
and requested that the Department
conduct a country–wide sales–belowcost investigation. Petitioners calculated
COM and packing expenses based on
the weight–averaged production
experiences of certain U.S. CASWR
producers during the POI, adjusted for
known differences between the costs
incurred to manufacture CASWR in the
United States and in Germany. To
calculate SG&A and financial expenses,
Petitioners relied on the fiscal year 2003
financial statements of Brandenburger.
Based upon a comparison of the
prices of the foreign like product in the
home market to the calculated COP of
the product, we find reasonable grounds
to believe or suspect that sales of the
foreign like product were made below
the COP, within the meaning of section
773(b)(2)(A)(i) of the Act. Accordingly,
the Department is initiating a country–
wide cost investigation. See Germany
Initiation Checklist.
Normal Value Based on Constructed
Value
Pursuant to sections 773(a)(4), 773(b)
and 773(e) of the Act, petitioners also
based NV on CV. Petitioners calculated
CV using the same COM, SG&A,
financial, and packing figures used to
compute the COP. See Volume II of the
Petition at page 2 and Exhibit 1.
VerDate Aug<31>2005
13:01 Dec 06, 2005
Jkt 208001
Petitioners then calculated profit based
on the FY 2004 financial statements of
two German producers of the same
general class of merchandise. See
Germany Initiation Checklist
PRC
Export Price
Petitioners based their U.S. price on
information regarding a Chinese quoted
offer price as relayed by a U.S.
customer. Petitioners based U.S. price
on EP because the offer was made by an
unidentified trading company to a U.S.
customer. The Department deducted
from the offer price the expenses
associated with exporting and
delivering the product: foreign inland
freight, foreign brokerage and handling,
ocean freight and insurance, U.S. port
charges, and trading company markup.
See PRC Initiation Checklist.
Normal Value
The Petitioners stated that the PRC is
a non–market economy (‘‘NME’’) and no
determination to the contrary has yet
been made by the Department. In
previous investigations, the Department
has determined that the PRC is an NME.
See Notice of Final Determination of
Sales at Less Than Fair Value:
Chlorinated Isocyanurates From the
People’s Republic of China, 70 FR 24502
(May 10, 2005), Notice of Final
Determination of Sales at Less Than
Fair Value and Affirmative Critical
Circumstances: Magnesium Metal from
the People’s Republic of China, 70 FR
9037 (February 24, 2005) and Notice of
Final Determination of Sales at Less
Than Fair Value: Certain Tissue Paper
Products from the People’s Republic of
China, 70 FR 7475 (February 14, 2005).
In accordance with section 771(18)(C)(i)
of the Act, the presumption of NME
status remains in effect until revoked by
the Department. The presumption of
NME status for the PRC has not been
revoked by the Department and remains
in effect for purposes of the initiation of
this investigation. Accordingly, because
available information does not permit
the NV of the merchandise to be
determined under section 773(a) of the
Act, the NV of the product is
appropriately based on factors of
production valued in a surrogate
market–economy country in accordance
with section 773(c) of the Act. In the
course of this investigation, all parties
will have the opportunity to provide
relevant information related to the
issues of the PRC’s NME status and the
granting of separate rates to individual
exporters.
The Petitioners identified India as the
surrogate country arguing that India is
PO 00000
Frm 00007
Fmt 4703
Sfmt 4703
an appropriate surrogate, pursuant to
section 773(c)(4) of the Act, because it
is a market–economy country that is at
a comparable level of economic
development to the PRC and is a
significant producer and exporter of
CASWR. See Volume II of the Petition
at pages 6–7. Based on the information
provided by the Petitioners, we believe
that its use of India as a surrogate
country is appropriate for purposes of
initiating this investigation. After the
initiation of the investigation, the
Department will solicit comments
regarding surrogate country selection.
Also, pursuant to 19 CFR
351.301(c)(3)(i), interested parties will
be provided an opportunity to submit
publicly available information to value
factors of production within 40 days
after the date of publication of the
preliminary determination.
The Petitioners explained that the
production process for CASWR occurs
in two stages: the melt shop and rolling
mill. In the melt shop a furnace melts
scrap steel or pig iron. The molten steel
then enters a continuous caster which
casts the liquid steel into billets. Next,
in the rolling mill, the billets are
reheated, rolled into CASWR, cooled,
coiled and bundled for shipment. See
Volume II of the Petition at page 9. The
Petitioners stated that the
manufacturing cost of CASWR in the
United States is typical of world–wide
steel making costs and, therefore, the
use of the U.S. producers’ production
costs and/or consumption rates
represents the best information
reasonably available to the Petitioners at
this time. See Volume II of the Petition
at page 8. In building–up the factors of
production, the Petitioners started with
inputs into the production of billets as
the primary input in CASWR.
The Petitioners provided a dumping
margin calculation using the
Department’s NME methodology as
required by 19 CFR 351.202(b)(7)(i)(C).
See Volume II of the Petition at Exhibit
18, and Supplement to the Petition,
dated November 18, 2005, at
Attachment 3. To determine, for each
raw material, the quantities of inputs
used by the PRC manufacturers to
produce CASWR, the Petitioners relied
on the production experience and actual
consumption rates of three U.S. CASWR
producers. See PRC Initiation Checklist.
In accordance with section 773(c)(4)
of the Act, the Petitioners valued factors
of production, where possible, using
reasonably available, public surrogate
country data. To value certain factors of
production, the Petitioners used
Monthly Statistics of the Foreign Trade
of India, as published by the Directorate
General of Commercial Intelligence and
E:\FR\FM\07DEN1.SGM
07DEN1
Federal Register / Vol. 70, No. 234 / Wednesday, December 7, 2005 / Notices
Statistics of the Ministry of Commerce
and Industry, Government of India, and
compiled by World Trade Atlas
(‘‘WTA’’). See PRC Initiation Checklist.
For values expressed in Indian
rupees, the Department used a simple
average of the daily exchange rate for
the POI to convert these values from
rupees to U.S. dollars in accordance
with our standard practice. The
Petitioners used a different source for
their exchange rates since rates covering
the entire POI were not yet available on
Import Administration’s website at the
time that the Petitioners filed the PRC
Petition. However, such rates are now
available at ia.ita.doc.gov/exchange/
india.txt, and we have used them in our
calculations. See PRC Initiation
Checklist.
The Department calculates and
publishes the surrogate values for labor
to be used in NME cases on its website.
Therefore, to value labor, the Petitioners
used a labor rate of $0.97 per hour, in
accordance with the Department’s
regulations. See 19 CFR 351.408(c)(3)
and Supplement to the Petition, dated
November 18, 2005, at Attachment 3.
The Petitioners calculated surrogate
financial ratios (overhead, SG&A, and
profit) using information obtained from
the Tata Iron and Steel Company Ltd.
(‘‘Tata’’) 2004–2005 Annual Report. See
Volume II of the Petition at pages 15–
17 and Exhibit 17. Tata is an Indian
producer of CASWR. In this case, the
Department has accepted the financial
information from the Tata 2004–2005
Annual Report for the purposes of
initiation, because these data appear to
be the best information currently
available to the Petitioners. However,
the Department has made certain
changes to the Petitioners’ financial
ratio calculations. See PRC Initiation
Checklist.
Fair Value Comparisons
Based on the data provided by
Petitioners, there is reason to believe
that imports of CASWR from Germany,
Turkey and the PRC are being, or are
likely to be, sold in the United States at
less than fair value. Based on
comparisons of EP to NV, calculated in
accordance with section 773(a) of the
Act, and of EP to CV, the range of the
revised estimated dumping margins for
CASWR are 50.25 percent to 81.88
percent for Germany, and 29.23 percent
to 77.76 percent for Turkey. Based on
comparisons of EP to NV, calculated in
accordance with section 773(c) of the
Act, the estimated revised weighted–
average dumping margin for CASWR
from the PRC is 321.76 percent.
VerDate Aug<31>2005
14:31 Dec 06, 2005
Jkt 208001
Allegations and Evidence of Material
Injury and Causation
With regard to Germany, Turkey and
the PRC, Petitioners allege that the U.S.
industry producing the domestic like
product is being materially injured, or is
threatened with material injury, by
reason of the individual and cumulated
imports of the subject merchandise sold
at less than NV. Petitioners contend that
the industry’s injured condition is
illustrated by the decline in customer
base, lost sales, market share, domestic
shipments, prices and profit. We have
assessed the allegations and supporting
evidence regarding material injury and
causation, and we have determined that
these allegations are properly supported
by adequate evidence and meet the
statutory requirements for initiation. See
Germany Initiation Checklist, Turkey
Initiation Checklist, and PRC Initiation
Checklist at Attachment III (Injury).
Initiation of Antidumping
Investigations
Based upon our examination of the
Petitions on CASWR, we find that these
Petitions meet the requirements of
section 732 of the Act. Therefore, we are
initiating antidumping duty
investigations to determine whether
imports of CASWR are being, or are
likely to be, sold in the United States at
less than fair value. Unless postponed,
we will make our preliminary
determinations no later than 140 days
after the date of these initiations.
Separate Rates and Quantity and Value
Questionnaire
The Department recently modified the
process by which exporters and
producers may obtain separate–rate
status in NME investigations. See Policy
Bulletin 05.1: Separate–Rates Practice
and Application of Combination Rates
in Antidumping Investigations
involving Non–Market Economy
Countries (Separate Rates and
Combination Rates Bulletin), (April 5,
2005), available on the Department’s
Website at https://ia.ita.doc.gov/policy/
bull05–1.pdf. The process now requires
the submission of a separate–rate status
application. Based on our experience in
processing the separate rates
applications in the antidumping duty
investigations of Artists Canvas,
Diamond Sawblades and CLPP (see
Initiation of Antidumping Duty
Investigation: Certain Artist Canvas
From the People’s Republic of China, 70
FR 21996, 21999 (April 28, 2005),
Initiation of Antidumping Duty
Investigations: Diamond Sawblades and
Parts Thereof from the People’s
Republic of China and the Republic of
PO 00000
Frm 00008
Fmt 4703
Sfmt 4703
72785
Korea, 70 FR 35625, 35629 (June 21,
2005), and Initiation of Antidumping
Duty Investigations: Certain Lined Paper
Products from India, Indonesia, and the
People’s Republic of China, 70 FR
58374, 58379 (October 6, 2005)), we
have modified the application for this
investigation to make it more
administrable and easier for applicants
to complete. The specific requirements
for submitting the separate–rates
application in this investigation are
outlined in detail in the application
itself, which will be available on the
Department’s Website at https://
ia.ita.doc.gov on the date of publication
of this initiation notice in the Federal
Register. Please refer to this application
for all instructions.
NME Respondent Selection and
Quantity and Value Questionnaire
For NME investigations, it is the
Department’s practice to request
quantity and value information from all
known exporters identified in the
petition. In addition, the Department
typically requests the assistance of the
NME government in transmitting the
Department’s quantity and value
questionnaire to all companies who
manufacture and export subject
merchandise to the United States, as
well as to manufacturers who produce
the subject merchandise for companies
who were engaged in exporting subject
merchandise to the United States during
the period of investigation. The quantity
and value data received from NME
exporters is used as the basis to select
the mandatory respondents. Although
many NME exporters respond to the
quantity and value information request,
at times some exporters may not have
received the quantity and value
questionnaire or may not have received
it in time to respond by the specified
deadline.
The Department is now publicizing its
requirement that quantity and value
responses must be submitted for both
the quantity and value questionnaire
and the separate–rates application by
the respective deadlines in order to
receive consideration for separate–rate
status. This new procedure will be
applied to all future investigations.
Appendix I of this notice contains the
quantity and value questionnaire that
must be submitted by all NME
exporters. In addition, the Department
will post the quantity and value
questionnaire along with the filing
instructions on the IA Website (https://
ia.ita.doc.gov). This quantity and value
questionnaire is due no later than 15
calendar days from the date of
publication of this notice. Consistent
with Department practice, if a deadline
E:\FR\FM\07DEN1.SGM
07DEN1
72786
Federal Register / Vol. 70, No. 234 / Wednesday, December 7, 2005 / Notices
falls on a weekend, federal holiday, or
any other day when the Department is
closed, the Department will accept the
response on the next business day. See
Notice of Clarification: Application of
‘‘Next Business Day’’ rule for
Administrative Determination Deadlines
Pursuant to the Tariff Act of 1930, as
amended, 70 FR 24533 (May 10, 2005).
The Department will continue to send
the quantity and value questionnaire to
those exporters identified in the Petition
and the NME government.
Use of Combination Rates in an NME
Investigation
The Department will calculate
combination rates for certain
respondents that are eligible for a
separate rate in this investigation. The
Separate Rates and Combination Rates
Bulletin, states:
{w}hile continuing the practice of
assigning separate rates only to
exporters, all separate rates that the
Department will now assign in its
NME investigations will be specific
to those producers that supplied the
exporter during the period of
investigation. Note, however, that
one rate is calculated for the
exporter and all of the producers
which supplied subject
merchandise to it during the period
of investigation. This practice
applies both to mandatory
respondents receiving an
individually calculated separate
rate as well as the pool of non–
investigated firms receiving the
weighted–average of the
individually calculated rates. This
practice is referred to as the
application of ‘‘combination rates’’
because such rates apply to specific
combinations of exporters and one
or more producers. The cash–
deposit rate assigned to an exporter
will apply only to merchandise
both exported by the firm in
question and produced by a firm
that supplied the exporter during
the period of investigation.
Separate Rates and Combination
Rates Bulletin, at page 6.
Distribution of Copies of the Petitions
In accordance with section
732(b)(3)(A) of the Act, copies of the
public versions of the Petition has been
provided to the Government of
Germany, the Government of Turkey,
and the Government of the PRC.
International Trade Commission
Notification
We have notified the ITC of our
initiations, as required by section 732(d)
of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine,
within 25 days after the date on which
it receives notice of these initiations,
whether there is a reasonable indication
that imports of CASWR from Germany,
Turkey and the PRC are causing
Market
material injury, or threatening to cause
material injury, to a U.S. industry. See
section 733(a)(2) of the Act. A negative
ITC determination will result in the
investigations being terminated;
otherwise, these investigations will
proceed according to statutory and
regulatory time limits.
This notice is issued and published
pursuant to section 777(i) of the Act.
Dated: November 30, 2005.
Stephen J. Claeys,
Acting Assistant Secretary for Import
Administration.
ATTACHMENT I
Where it is not practicable to examine
all known producers/exporters of
subject merchandise, section 777A(c)(2)
of the Tariff Act of 1930 (as amended)
permits us to investigate 1) a sample of
exporters, producers, or types of
products that is statistically valid based
on the information available at the time
of selection, or 2) exporters and
producers accounting for the largest
volume and value of the subject
merchandise that can reasonably be
examined.
In the chart provided below, please
provide the total quantity and total
value of all your sales of merchandise
covered by the scope of this
investigation (see scope section of this
notice), produced in the PRC, and
exported/shipped to the United States
during the period April 1, 2005, through
September 30, 2005.
Total Quantity
Terms of Sale
Total Value
United States.
1. Export Price Sales.
2..
a. Exporter name.
b. Address.
c. Contact.
d. Phone No..
e. Fax No..
3. Constructed Export Price Sales.
4. Further Manufactured.
Total Sales.
Total Quantity:
respective dates and sources.
• Please report quantity on a short ton
basis. If any conversions were used,
please provide the conversion
formula and source.
Terms of Sales:
• Please report all sales on the same
terms (e.g., free on board).
Total Value:
• All sales values should be reported
in U.S. Dollars. Please indicate any
exchange rates used and their
VerDate Aug<31>2005
13:01 Dec 06, 2005
Jkt 208001
Export Price Sales:
• Generally, a U.S. sale is classified as
an export price sale when the first
sale to an unaffiliated person occurs
before importation into the United
States.
• Please include any sales exported by
your company directly to the
United States;
• Please include any sales exported by
your company to a third–country
market economy reseller where you
PO 00000
Frm 00009
Fmt 4703
Sfmt 4703
had knowledge that the
merchandise was destined to be
resold to the United States.
• If you are a producer of subject
merchandise, please include any
sales manufactured by your
company that were subsequently
exported by an affiliated exporter to
the United States.
• Please do not include any sales of
merchandise manufactured in Hong
Kong in your figures.
E:\FR\FM\07DEN1.SGM
07DEN1
Federal Register / Vol. 70, No. 234 / Wednesday, December 7, 2005 / Notices
Constructed Export Price Sales:
• Generally, a U.S. sale is classified as
a constructed export price sale
when the first sale to an unaffiliated
person occurs after importation.
However, if the first sale to the
unaffiliated person is made by a
person in the United States
affiliated with the foreign exporter,
constructed export price applies
even if the sale occurs prior to
importation.
• Please include any sales exported by
your company directly to the
United States;
• Please include any sales exported by
your company to a third–country
market economy reseller where you
had knowledge that the
merchandise was destined to be
resold to the United States.
• If you are a producer of subject
merchandise, please include any
sales manufactured by your
company that were subsequently
exported by an affiliated exporter to
the United States.
• Please do not include any sales of
merchandise manufactured in Hong
Kong in your figures.
Further Manufactured:
• Further manufacture or assembly
costs include amounts incurred for
direct materials, labor and
overhead, plus amounts for general
and administrative expense, interest
expense, and additional packing
expense incurred in the country of
further manufacture, as well as all
costs involved in moving the
product from the U.S. port of entry
to the further manufacturer.
[FR Doc. 05–23738 Filed 12–6–05; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
(A–427–816)
Revocation of Antidumping Duty
Order: Certain Cut–To-Length Carbon–
Quality Steel Plate from France
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: Pursuant to section 751(c) of
the Tariff Act of 1930, as amended (‘‘the
Act’’), the International Trade
Commission (‘‘ITC’’), in its sunset
review, determined that revocation of
the antidumping duty (‘‘AD’’) order on
certain cut–to-length carbon–quality
steel plate (‘‘CTL Plate’’) from France
would not be likely to lead to
continuation or recurrence of material
AGENCY:
VerDate Aug<31>2005
16:07 Dec 06, 2005
Jkt 208001
injury to an industry in the United
States within a reasonably foreseeable
time. See Cut–to-Length Carbon–Quality
Steel Plate from France, India,
Indonesia, Italy, Japan, and Korea, 70
FR 71331 (November 28, 2005) (‘‘ITC
Determination’’). Therefore, pursuant to
section 751(d)(2) of the Act and 19 CFR
351.222(i)(1)(iii), the Department is
revoking the AD order on CTL Plate
from France.
EFFECTIVE DATE: February 10, 2005.
FOR FURTHER INFORMATION CONTACT:
David Goldberger, AD/CVD Operations,
Import Administration, International
Trade Administration, U.S. Department
of Commerce, 14th Street and
Constitution Avenue, NW, Washington,
DC 20230; telephone: (202) 482–4136.
SUPPLEMENTARY INFORMATION:
Background
On February 10, 2000, the Department
published its AD order and final
amended determination on CTL Plate
from France. See Notice of Amendment
of Final Determinations of Sales at Less
Than Fair Value and Antidumping Duty
Orders: Certain Cut–To- Length Carbon–
Quality Steel Plate Products From
France, India, Indonesia, Italy, Japan,
and the Republic of Korea, 65 FR 6585
(February 10, 2000). In the amended
final determination the Department
found a margin of 10.41 percent for
Usinor S.A. and for ‘‘all other’’
manufacturers/producers/exporters of
CTL Plate from France.
On January 3, 2005, the Department
initiated, and the ITC instituted, sunset
reviews of the AD order on CTL Plate
from France. See Initiation of Five-year
(Sunset) Reviews, 70 FR 75 (January 3,
2005). As a result of its review, the
Department found that revocation of the
AD order would likely lead to
continuation or recurrence of dumping,
and notified the ITC of the dumping rate
likely to prevail if the AD order were
revoked. See Certain Cut–To-Length
Carbon–Quality Steel Plate from France,
India, Indonesia, Italy, Japan, and the
Republic of Korea; Final Results of the
Expedited Sunset Reviews of the
Antidumping Duty Orders, 70 FR 45655
(August 8, 2005).
On November 21, 2005, the ITC
determined, pursuant to section 751(c)
of the Act, that revocation of the AD
order on CTL Plate from France would
not be likely to lead to continuation or
recurrence of material injury to an
industry in the United States within a
reasonably foreseeable time. See ITC
Determination and USITC Publication
3816 (November 2005), entitled Cut–toLength Carbon–Quality Steel Plate From
France, India, Indonesia, Italy, Japan,
PO 00000
Frm 00010
Fmt 4703
Sfmt 4703
72787
and Korea: Investigation Nos. 701–TA–
388–391 and 731–TA–816–821 (Review).
Scope of the Order
The products covered by the AD 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 this 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 this 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 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 this order unless otherwise
E:\FR\FM\07DEN1.SGM
07DEN1
]]>Agencies
[Federal Register Volume 70, Number 234 (Wednesday, December 7, 2005)]
[Notices]
[Pages 72781-72787]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-23738]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
A-428-839
A-489-814
A-570-902
Initiation of Antidumping Duty Investigations: Carbon and Certain
Alloy Steel Wire Rod from Germany, Turkey, and the People's Republic of
China
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: December 7, 2005.
FOR FURTHER INFORMATION CONTACT: Tyler Weinhold (Germany), John Drury
(Turkey), or Matthew Renkey (People's Republic of China), AD/CVD
Operations, Import Administration, International Trade Administration,
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW,
Washington, DC 20230; telephone: (202) 482-1121, (202) 482-0195 and
(202) 482-2312, respectively.
SUPPLEMENTARY INFORMATION:
INITIATION OF INVESTIGATIONS
The Petitions
On November 10, 2005, the Department of Commerce (``the
Department'') received Petitions (``the Petitions'') concerning imports
of carbon and certain alloy steel wire rod (``CASWR'') from Germany
(``German Petition''), Turkey (``Turkish Petition''), and the People's
Republic of China (``PRC'')(``PRC Petition'') filed in proper form by
Connecticut Steel Corp., Gerdau Ameristeel U.S. Inc., Keystone
Consolidated Industries, Inc., ISG Georgetown, Inc. (Mittal Steel
U.S.A. Georgetown), and Rocky Mountain Steel Mills (``Petitioners'') on
behalf of the domestic industry producing CASWR. The period of
investigation (``POI'') for Germany and Turkey is October 1, 2004,
through September 30, 2005. The POI for the PRC is April 1, 2005,
through September 30, 2005.
In accordance with section 732(b) of the Tariff Act of 1930, as
amended (``the Act''), Petitioners alleged that imports of CASWR from
Germany, Turkey and the PRC are being, or are likely to be, sold in the
United States at less than fair value within the meaning of section 731
of the Act, and that such imports are materially injuring and threaten
to injure an industry in the United States.
Scope of Investigations
The merchandise subject to this scope is certain hot-rolled
products of carbon steel and alloy steel, in coils, of
[[Page 72782]]
approximately circular cross section, 4.75 mm or more, but less than
19.00 mm, in solid cross-sectional diameter. Specifically excluded are
steel products possessing the above-noted physical characteristics and
meeting the Harmonized Tariff Schedule of the United States (``HTSUS'')
definitions for (a) stainless steel; (b) tool steel; (c) high nickel
steel; (d) ball bearing steel; and (e) concrete reinforcing bars. Also
excluded are free machining steel products (i.e., products that contain
by weight one or more of the following elements: 0.03 percent or more
of lead, 0.05 percent or more of bismuth, 0.08 percent or more of
sulfur, more than 0.04 percent of phosphorus, more than 0.05 percent of
selenium, or more than 0.01 percent of tellurium).
All products meeting the physical description of subject
merchandise that are not specifically excluded are included in this
scope. The products under review are currently classifiable under
subheadings 7213.91.3011, 7213.91.3015, 7213.91.3092, 7213.91.4500,
7213.91.6000, 7213.99.0030, 7213.99.0090, 7227.20.0000, and
7227.90.6050 of the HTSUS. Although the HTSUS subheadings are provided
for convenience and customs purposes, the written description of the
scope of this proceeding is dispositive.
Comments on Scope of Investigations
During our review of the Petitions, we discussed the scope with
Petitioners to ensure that it accurately reflects the product for which
the domestic industry is seeking relief. Moreover, as discussed in the
preamble to the Department's regulations, we are setting aside a period
for interested parties to raise issues regarding product coverage. See
Antidumping Duties; Countervailing Duties; Final Rule, 62 FR 27296,
27323 (May 19, 1997). The Department encourages all interested parties
to submit such comments within 20 calendar days of publication of this
initiation notice. Comments should be addressed to Import
Administration's Central Records Unit in Room 1870, U.S. Department of
Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 20230
- Attention: Robert James. The period of scope consultations is
intended to provide the Department with ample opportunity to consider
all comments and consult with interested parties prior to the issuance
of the preliminary determinations.
Determination of Industry Support for the Petitions
Section 732(b)(1) of the Act requires that a petition be filed by
or on behalf of the domestic industry. In order to determine whether a
petition has been filed by or on behalf of the industry, the
Department, pursuant to section 732(c)(4)(A) of the Act, determines
whether a minimum percentage of the relevant industry supports the
petition. A petition meets this requirement if the domestic producers
or workers who support the petition account for: (i) at least 25
percent of the total production of the domestic like product; and (ii)
more than 50 percent of the production of the domestic like product
produced by that portion of the industry expressing support for, or
opposition to, the petition. Moreover, section 732(c)(4)(D) of the Act
provides that, if the petition does not establish support of domestic
producers or workers accounting for more than 50 percent of the total
production of the domestic like product, the Department shall: (i) poll
the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A), or
(ii) determine industry support using a statistically valid sampling
method.
Section 771(4)(A) of the Act defines the ``industry'' as the
producers of a domestic like product. Thus, to determine whether a
petition has the requisite industry support, the statute directs the
Department to look to producers and workers who produce the domestic
like product. The International Trade Commission (``ITC''), which is
responsible for determining whether the domestic industry has been
injured, must also determine what constitutes a domestic like product
in order to define the industry. While both the Department and the ITC
must apply the same statutory definition regarding the domestic like
product (section 771(10) of the Act), they do so for different purposes
and pursuant to a separate and distinct authority. In addition, the
Department's determination is subject to limitations of time and
information. Although this may result in different definitions of the
like product, such differences do not render the decision of either
agency contrary to law. See USEC, Inc. v. United States, 132 F. Supp.
2d 1, 8 (CIT 2001), citing Algoma Steel Corp. Ltd. v. United States,
688 F. Supp. 639, 644 (1988), aff'd 865 F.2d 240 (Fed. Cir. 1989),
cert. denied 492 U.S. 919 (1989).
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation,'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, Petitioners do not offer
a definition of domestic like product distinct from the scope of the
investigation. See Germany Initiation Checklist, Turkey Initiation
Checklist, and PRC Initiation Checklist at Attachment II (Industry
Support). Based on our analysis of the information submitted in the
Petitions we have determined there is a single domestic like product,
carbon and certain alloy steel wire rod, and we have analyzed industry
support in terms of that domestic like product.
Our review of the data provided in the Petitions, Supplements to
the Petitions, dated November 18, 2005, and November 22, 2005, and
other information readily available to the Department indicates that
Petitioners have established industry support representing at least 25
percent of the total production of the domestic like product; and more
than 50 percent of the production of the domestic like product produced
by that portion of the industry expressing support for or opposition to
the Petitions, requiring no further action by the Department pursuant
to section 732(c)(4)(D) of the Act. In addition, the Department
received no opposition to the Petitions from domestic producers of the
like product. Therefore, the domestic producers (or workers) who
support the Petitions account for at least 25 percent of the total
production of the domestic like product, and the requirements of
section 732(c)(4)(A)(i) of the Act are met. Furthermore, the domestic
producers who support the Petitions account for more than 50 percent of
the production of the domestic like product produced by that portion of
the industry expressing support for, or opposition to, the Petitions.
Thus, the requirements of section 732(c)(4)(A)(ii) of the Act also are
met. Accordingly, the Department determines that the Petitions were
filed on behalf of the domestic industry within the meaning of section
732(b)(1) of the Act. See Germany Initiation Checklist, Turkey
Initiation Checklist, and PRC Initiation Checklist at Attachment II
(Industry Support).
The Department finds that Petitioners filed the Petitions on behalf
of the domestic industry because they are interested parties as defined
in section 771(9)(E) and (F) of the Act and have demonstrated
sufficient industry support with respect to the antidumping
investigations that it is requesting the Department initiate. See
Germany
[[Page 72783]]
Initiation Checklist, Turkey Initiation Checklist, and PRC Initiation
Checklist at Attachment II (Industry Support).
U.S. Price and Normal Value
The following is a description of the allegation of sales at less
than fair value upon which the Department based its decision to
initiate these investigations on Germany, Turkey, and the PRC. The
sources of data for the deductions and adjustments relating to the U.S.
price, home-market price (Germany and Turkey), constructed value
(Germany and Turkey), and the factors of production (PRC only) are also
discussed in the country-specific Initiation Checklist. See Germany
Initiation Checklist, Turkey Initiation Checklist, and PRC Initiation
Checklist. Should the need arise to use any of this information as
facts available under section 776 of the Act in our preliminary or
final determinations, we will reexamine the information and revise the
margin calculations, if appropriate.
Turkey
Export Price (``EP'')
Petitioners based U.S. price on EP. Petitioners obtained a price
for a sale to an end user of the subject merchandise within the POI.
Petitioners provided an affidavit with the information. See Volume II
of the Turkish Petition at Exhibit 5. The price quoted is for a
specific grade, quality, and diameter falling within the scope of this
petition. Export price was the basis for U.S. price because CASWR was
offered for sale to an unaffiliated U.S. purchaser prior to the date of
importation. Petitioners deducted from the offer price the expenses
associated with exporting and delivering the product: foreign inland
freight, foreign brokerage and handling, ocean freight and insurance,
U.S. port charges, and a three percent trading company markup, which
was based upon research from a market research company as customary for
this type of transaction. See Volume II of the Turkish Petition at page
5, Exhibit 6, and Exhibit 9. In addition, Petitioners adjusted for
differences in imputed credit expenses by subtracting home market
credit expenses to the home market price and by adding U.S. imputed
credit expenses to the home market price. See Volume II of the Turkish
Petition at Exhibit 6, and Supplement to the Turkish Petition, dated
November 18, 2005, at Revised Exhibit 10, and Supplement to the Turkish
Petition, dated November 22, 2005 at 2nd Revised Exhibit 6.
The price quoted was delivered to the customer and included foreign
inland freight, and insurance, U.S. import duties and port fees, U.S.
inland freight, and an estimated trading company resale markup. See
Volume II of the Turkish Petition at Exhibit 6, and Supplement to the
Turkish Petition, dated November 18, 2005, at Revised Exhibit 10, and
Supplement to the Turkish Petition, dated November 22, 2005, at 2nd
Revised Exhibit 6.
Normal Value (``NV'')
To calculate NV, Petitioners provided a price quote from Habas
Sinai ve Tibbi Galar Istihsal Endustrisi AS (``Habas Sinai''), a
Turkish producer of CASWR. The information was obtained from a
confidential market research company. The price quote is for a specific
grade, quality and diameter falling within the scope of this petition,
with FOB mill (i.e., ex-works) delivery terms. See Volume II of the
Turkish Petition at pages 1-2 and Memorandum to the File, Telephone
Call to Market Research Firm Regarding the Antidumping Petition on
Carbon and Certain Alloy Steel Wire Rod (CASWR) from Turkey dated
November 18, 2005. Petitioners made adjustments for imputed credit
expenses. See Volume II of the Turkish Petition at Exhibit 3 and 4, and
Supplement to the Turkish Petition, dated November 18, 2005, at
Attachment 1 and Revised Exhibit 10. The Turkish HM price per metric
ton was converted to short tons using the standard conversion factor.
No additional adjustments were made to derive the HM price.
Cost of Production
Petitioners have provided information demonstrating reasonable
grounds to believe or suspect that sales of CASWR in the home market
were made at prices below the fully absorbed cost of production
(``COP''), within the meaning of section 773(b) of the Act, and
requested that the Department conduct a country-wide sales-below-cost
investigation. Pursuant to section 773(b)(3) of the Act, COP consists
of the cost of manufacturing (``COM''); selling, general and
administrative (``SG&A'') expenses; financial expenses; and packing
expenses. Petitioners calculated COM and packing expenses based on the
weighted-averaged production experiences of U.S. CASWR producers during
the POI, adjusted for known differences between the costs incurred to
manufacture CASWR in the United States and in Turkey using publicly
available data. To calculate SG&A and financial expenses, Petitioner
relied on the fiscal year 2003 financial statements of Habas Sinai.
Based upon a comparison of the prices of the foreign-like product
in the home market to the calculated COP of the product, we find
reasonable grounds to believe or suspect that sales of the foreign like
product were made below the COP, within the meaning of section
773(b)(2)(A)(i) of the Act. Accordingly, the Department is initiating a
country-wide cost investigation. See Turkey Initiation Checklist.
Normal Value based on Constructed Value (``CV'')
Pursuant to sections 773(a)(4), 773(b) and 773(e) of the Act,
Petitioners also based NV on CV. Petitioners calculated CV using the
same COM, SG&A, financial and packing figures used to compute the COP.
Petitioners then calculated profit based on the FY 2003 financial
statements of a Turkish CASWR producer, Habas Sinai. See Turkey
Initiation Checklist.
Germany
Export Price
To calculate EP, Petitioners obtained a price for a sale of subject
merchandise, made within the POI, manufactured by B.E.S. Brandenburger
Electrostahlwerke, GmbH (``Brandenburger'') and sold through
Brandenburger's affiliated trading company, Riva Stahl. Petitioners
provided an affidavit with this information. See Volume II of the
German Petition at page 2 and Exhibit 5. The price quoted is for a
specific grade, quality, and diameter falling within the scope of this
petition.
The price quoted was FOB U.S. port, and included foreign inland
freight charges, ocean freight and insurance from Germany, and U.S.
port fees. See Volume II of the German Petition at pages 2, 3, and 4
and Exhibit 5, and Supplement to the German Petition, dated November
18, 2005, at Attachment 1.
Petitioners deducted a three percent mark-up based upon the actual
experience of Stemcor, an international steel trading company, as a
publicly available surrogate for Riva's experiences. See Volume II of
the German Petition at pages 2 and 3 and Exhibit 8 and Supplement to
the German Petition, dated November 18, 2005, at Attachment 1.
Normal Value
To calculate NV, Petitioners obtained a price for subject
merchandise, as offered for sale by Brandenburger to an unaffiliated
customer in the home market. This information was provided by a market
researcher. The price quote
[[Page 72784]]
is for a specific grade, quality, and diameter falling within the scope
of this petition. See Supplement to the German Petition, dated November
19, 2005, Foreign Market Research Declaration, and Memorandum to the
File, Telephone Call to Market Research Firm Regarding the Antidumping
Petition on Carbon and Certain Alloy Steel Wire Rod (CASWR) from
Germany dated November 18, 2005.
Petitioners made adjustments to home market gross price for foreign
inland freight expense and imputed credit expense. See Volume II of the
German Petition at pages 1 and 2 and Exhibit 2 and Supplement to the
Petition, dated November 15, 2005, Foreign Market Research Declaration
at Exhibit 1. To calculate the reported foreign inland freight,
petitioners relied on a survey of quotes gathered by the market
researcher. See Memorandum to the File, Telephone Call to Market
Research Firm Regarding the Antidumping Petition on CASWR from Germany
dated November 18, 2005.
Cost of Production
Petitioners have provided information demonstrating reasonable
grounds to believe or suspect that sales of CASWR in the home market
were made at prices below the fully absorbed COP, within the meaning of
section 773(b) of the Act, and requested that the Department conduct a
country-wide sales-below-cost investigation. Petitioners calculated COM
and packing expenses based on the weight-averaged production
experiences of certain U.S. CASWR producers during the POI, adjusted
for known differences between the costs incurred to manufacture CASWR
in the United States and in Germany. To calculate SG&A and financial
expenses, Petitioners relied on the fiscal year 2003 financial
statements of Brandenburger.
Based upon a comparison of the prices of the foreign like product
in the home market to the calculated COP of the product, we find
reasonable grounds to believe or suspect that sales of the foreign like
product were made below the COP, within the meaning of section
773(b)(2)(A)(i) of the Act. Accordingly, the Department is initiating a
country-wide cost investigation. See Germany Initiation Checklist.
Normal Value Based on Constructed Value
Pursuant to sections 773(a)(4), 773(b) and 773(e) of the Act,
petitioners also based NV on CV. Petitioners calculated CV using the
same COM, SG&A, financial, and packing figures used to compute the COP.
See Volume II of the Petition at page 2 and Exhibit 1. Petitioners then
calculated profit based on the FY 2004 financial statements of two
German producers of the same general class of merchandise. See Germany
Initiation Checklist
PRC
Export Price
Petitioners based their U.S. price on information regarding a
Chinese quoted offer price as relayed by a U.S. customer. Petitioners
based U.S. price on EP because the offer was made by an unidentified
trading company to a U.S. customer. The Department deducted from the
offer price the expenses associated with exporting and delivering the
product: foreign inland freight, foreign brokerage and handling, ocean
freight and insurance, U.S. port charges, and trading company markup.
See PRC Initiation Checklist.
Normal Value
The Petitioners stated that the PRC is a non-market economy
(``NME'') and no determination to the contrary has yet been made by the
Department. In previous investigations, the Department has determined
that the PRC is an NME. See Notice of Final Determination of Sales at
Less Than Fair Value: Chlorinated Isocyanurates From the People's
Republic of China, 70 FR 24502 (May 10, 2005), Notice of Final
Determination of Sales at Less Than Fair Value and Affirmative Critical
Circumstances: Magnesium Metal from the People's Republic of China, 70
FR 9037 (February 24, 2005) and Notice of Final Determination of Sales
at Less Than Fair Value: Certain Tissue Paper Products from the
People's Republic of China, 70 FR 7475 (February 14, 2005). In
accordance with section 771(18)(C)(i) of the Act, the presumption of
NME status remains in effect until revoked by the Department. The
presumption of NME status for the PRC has not been revoked by the
Department and remains in effect for purposes of the initiation of this
investigation. Accordingly, because available information does not
permit the NV of the merchandise to be determined under section 773(a)
of the Act, the NV of the product is appropriately based on factors of
production valued in a surrogate market-economy country in accordance
with section 773(c) of the Act. In the course of this investigation,
all parties will have the opportunity to provide relevant information
related to the issues of the PRC's NME status and the granting of
separate rates to individual exporters.
The Petitioners identified India as the surrogate country arguing
that India is an appropriate surrogate, pursuant to section 773(c)(4)
of the Act, because it is a market-economy country that is at a
comparable level of economic development to the PRC and is a
significant producer and exporter of CASWR. See Volume II of the
Petition at pages 6-7. Based on the information provided by the
Petitioners, we believe that its use of India as a surrogate country is
appropriate for purposes of initiating this investigation. After the
initiation of the investigation, the Department will solicit comments
regarding surrogate country selection. Also, pursuant to 19 CFR
351.301(c)(3)(i), interested parties will be provided an opportunity to
submit publicly available information to value factors of production
within 40 days after the date of publication of the preliminary
determination.
The Petitioners explained that the production process for CASWR
occurs in two stages: the melt shop and rolling mill. In the melt shop
a furnace melts scrap steel or pig iron. The molten steel then enters a
continuous caster which casts the liquid steel into billets. Next, in
the rolling mill, the billets are reheated, rolled into CASWR, cooled,
coiled and bundled for shipment. See Volume II of the Petition at page
9. The Petitioners stated that the manufacturing cost of CASWR in the
United States is typical of world-wide steel making costs and,
therefore, the use of the U.S. producers' production costs and/or
consumption rates represents the best information reasonably available
to the Petitioners at this time. See Volume II of the Petition at page
8. In building-up the factors of production, the Petitioners started
with inputs into the production of billets as the primary input in
CASWR.
The Petitioners provided a dumping margin calculation using the
Department's NME methodology as required by 19 CFR 351.202(b)(7)(i)(C).
See Volume II of the Petition at Exhibit 18, and Supplement to the
Petition, dated November 18, 2005, at Attachment 3. To determine, for
each raw material, the quantities of inputs used by the PRC
manufacturers to produce CASWR, the Petitioners relied on the
production experience and actual consumption rates of three U.S. CASWR
producers. See PRC Initiation Checklist.
In accordance with section 773(c)(4) of the Act, the Petitioners
valued factors of production, where possible, using reasonably
available, public surrogate country data. To value certain factors of
production, the Petitioners used Monthly Statistics of the Foreign
Trade of India, as published by the Directorate General of Commercial
Intelligence and
[[Page 72785]]
Statistics of the Ministry of Commerce and Industry, Government of
India, and compiled by World Trade Atlas (``WTA''). See PRC Initiation
Checklist.
For values expressed in Indian rupees, the Department used a simple
average of the daily exchange rate for the POI to convert these values
from rupees to U.S. dollars in accordance with our standard practice.
The Petitioners used a different source for their exchange rates since
rates covering the entire POI were not yet available on Import
Administration's website at the time that the Petitioners filed the PRC
Petition. However, such rates are now available at ia.ita.doc.gov/
exchange/india.txt, and we have used them in our calculations. See PRC
Initiation Checklist.
The Department calculates and publishes the surrogate values for
labor to be used in NME cases on its website. Therefore, to value
labor, the Petitioners used a labor rate of $0.97 per hour, in
accordance with the Department's regulations. See 19 CFR 351.408(c)(3)
and Supplement to the Petition, dated November 18, 2005, at Attachment
3.
The Petitioners calculated surrogate financial ratios (overhead,
SG&A, and profit) using information obtained from the Tata Iron and
Steel Company Ltd. (``Tata'') 2004-2005 Annual Report. See Volume II of
the Petition at pages 15-17 and Exhibit 17. Tata is an Indian producer
of CASWR. In this case, the Department has accepted the financial
information from the Tata 2004-2005 Annual Report for the purposes of
initiation, because these data appear to be the best information
currently available to the Petitioners. However, the Department has
made certain changes to the Petitioners' financial ratio calculations.
See PRC Initiation Checklist.
Fair Value Comparisons
Based on the data provided by Petitioners, there is reason to
believe that imports of CASWR from Germany, Turkey and the PRC are
being, or are likely to be, sold in the United States at less than fair
value. Based on comparisons of EP to NV, calculated in accordance with
section 773(a) of the Act, and of EP to CV, the range of the revised
estimated dumping margins for CASWR are 50.25 percent to 81.88 percent
for Germany, and 29.23 percent to 77.76 percent for Turkey. Based on
comparisons of EP to NV, calculated in accordance with section 773(c)
of the Act, the estimated revised weighted-average dumping margin for
CASWR from the PRC is 321.76 percent.
Allegations and Evidence of Material Injury and Causation
With regard to Germany, Turkey and the PRC, Petitioners allege that
the U.S. industry producing the domestic like product is being
materially injured, or is threatened with material injury, by reason of
the individual and cumulated imports of the subject merchandise sold at
less than NV. Petitioners contend that the industry's injured condition
is illustrated by the decline in customer base, lost sales, market
share, domestic shipments, prices and profit. We have assessed the
allegations and supporting evidence regarding material injury and
causation, and we have determined that these allegations are properly
supported by adequate evidence and meet the statutory requirements for
initiation. See Germany Initiation Checklist, Turkey Initiation
Checklist, and PRC Initiation Checklist at Attachment III (Injury).
Initiation of Antidumping Investigations
Based upon our examination of the Petitions on CASWR, we find that
these Petitions meet the requirements of section 732 of the Act.
Therefore, we are initiating antidumping duty investigations to
determine whether imports of CASWR are being, or are likely to be, sold
in the United States at less than fair value. Unless postponed, we will
make our preliminary determinations no later than 140 days after the
date of these initiations.
Separate Rates and Quantity and Value Questionnaire
The Department recently modified the process by which exporters and
producers may obtain separate-rate status in NME investigations. See
Policy Bulletin 05.1: Separate-Rates Practice and Application of
Combination Rates in Antidumping Investigations involving Non-Market
Economy Countries (Separate Rates and Combination Rates Bulletin),
(April 5, 2005), available on the Department's Website at https://
ia.ita.doc.gov/policy/bull05-1.pdf. The process now requires the
submission of a separate-rate status application. Based on our
experience in processing the separate rates applications in the
antidumping duty investigations of Artists Canvas, Diamond Sawblades
and CLPP (see Initiation of Antidumping Duty Investigation: Certain
Artist Canvas From the People's Republic of China, 70 FR 21996, 21999
(April 28, 2005), Initiation of Antidumping Duty Investigations:
Diamond Sawblades and Parts Thereof from the People's Republic of China
and the Republic of Korea, 70 FR 35625, 35629 (June 21, 2005), and
Initiation of Antidumping Duty Investigations: Certain Lined Paper
Products from India, Indonesia, and the People's Republic of China, 70
FR 58374, 58379 (October 6, 2005)), we have modified the application
for this investigation to make it more administrable and easier for
applicants to complete. The specific requirements for submitting the
separate-rates application in this investigation are outlined in detail
in the application itself, which will be available on the Department's
Website at https://ia.ita.doc.gov on the date of publication of this
initiation notice in the Federal Register. Please refer to this
application for all instructions.
NME Respondent Selection and Quantity and Value Questionnaire
For NME investigations, it is the Department's practice to request
quantity and value information from all known exporters identified in
the petition. In addition, the Department typically requests the
assistance of the NME government in transmitting the Department's
quantity and value questionnaire to all companies who manufacture and
export subject merchandise to the United States, as well as to
manufacturers who produce the subject merchandise for companies who
were engaged in exporting subject merchandise to the United States
during the period of investigation. The quantity and value data
received from NME exporters is used as the basis to select the
mandatory respondents. Although many NME exporters respond to the
quantity and value information request, at times some exporters may not
have received the quantity and value questionnaire or may not have
received it in time to respond by the specified deadline.
The Department is now publicizing its requirement that quantity and
value responses must be submitted for both the quantity and value
questionnaire and the separate-rates application by the respective
deadlines in order to receive consideration for separate-rate status.
This new procedure will be applied to all future investigations.
Appendix I of this notice contains the quantity and value questionnaire
that must be submitted by all NME exporters. In addition, the
Department will post the quantity and value questionnaire along with
the filing instructions on the IA Website (https://ia.ita.doc.gov). This
quantity and value questionnaire is due no later than 15 calendar days
from the date of publication of this notice. Consistent with Department
practice, if a deadline
[[Page 72786]]
falls on a weekend, federal holiday, or any other day when the
Department is closed, the Department will accept the response on the
next business day. See Notice of Clarification: Application of ``Next
Business Day'' rule for Administrative Determination Deadlines Pursuant
to the Tariff Act of 1930, as amended, 70 FR 24533 (May 10, 2005). The
Department will continue to send the quantity and value questionnaire
to those exporters identified in the Petition and the NME government.
Use of Combination Rates in an NME Investigation
The Department will calculate combination rates for certain
respondents that are eligible for a separate rate in this
investigation. The Separate Rates and Combination Rates Bulletin,
states:
{w{time} hile continuing the practice of assigning separate rates
only to exporters, all separate rates that the Department will now
assign in its NME investigations will be specific to those producers
that supplied the exporter during the period of investigation. Note,
however, that one rate is calculated for the exporter and all of the
producers which supplied subject merchandise to it during the period of
investigation. This practice applies both to mandatory respondents
receiving an individually calculated separate rate as well as the pool
of non-investigated firms receiving the weighted-average of the
individually calculated rates. This practice is referred to as the
application of ``combination rates'' because such rates apply to
specific combinations of exporters and one or more producers. The cash-
deposit rate assigned to an exporter will apply only to merchandise
both exported by the firm in question and produced by a firm that
supplied the exporter during the period of investigation.
Separate Rates and Combination Rates Bulletin, at page 6.
Distribution of Copies of the Petitions
In accordance with section 732(b)(3)(A) of the Act, copies of the
public versions of the Petition has been provided to the Government of
Germany, the Government of Turkey, and the Government of the PRC.
International Trade Commission Notification
We have notified the ITC of our initiations, as required by section
732(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 25 days after the date
on which it receives notice of these initiations, whether there is a
reasonable indication that imports of CASWR from Germany, Turkey and
the PRC are causing material injury, or threatening to cause material
injury, to a U.S. industry. See section 733(a)(2) of the Act. A
negative ITC determination will result in the investigations being
terminated; otherwise, these investigations will proceed according to
statutory and regulatory time limits.
This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: November 30, 2005.
Stephen J. Claeys,
Acting Assistant Secretary for Import Administration.
ATTACHMENT I
Where it is not practicable to examine all known producers/
exporters of subject merchandise, section 777A(c)(2) of the Tariff Act
of 1930 (as amended) permits us to investigate 1) a sample of
exporters, producers, or types of products that is statistically valid
based on the information available at the time of selection, or 2)
exporters and producers accounting for the largest volume and value of
the subject merchandise that can reasonably be examined.
In the chart provided below, please provide the total quantity and
total value of all your sales of merchandise covered by the scope of
this investigation (see scope section of this notice), produced in the
PRC, and exported/shipped to the United States during the period April
1, 2005, through September 30, 2005.
----------------------------------------------------------------------------------------------------------------
Market Total Quantity Terms of Sale Total Value
----------------------------------------------------------------------------------------------------------------
United States..........................................
--------------------------------------------------------
1. Export Price Sales..................................
2......................................................
a. Exporter name...............................
b. Address.....................................
c. Contact.....................................
d. Phone No....................................
e. Fax No......................................
3. Constructed Export Price Sales......................
4. Further Manufactured................................
Total Sales............................................
----------------------------------------------------------------------------------------------------------------
Total Quantity:
Please report quantity on a short ton basis. If any
conversions were used, please provide the conversion formula and
source.
Terms of Sales:
Please report all sales on the same terms (e.g., free on
board).
Total Value:
All sales values should be reported in U.S. Dollars.
Please indicate any exchange rates used and their respective dates and
sources.
Export Price Sales:
Generally, a U.S. sale is classified as an export price
sale when the first sale to an unaffiliated person occurs before
importation into the United States.
Please include any sales exported by your company directly
to the United States;
Please include any sales exported by your company to a
third-country market economy reseller where you had knowledge that the
merchandise was destined to be resold to the United States.
If you are a producer of subject merchandise, please
include any sales manufactured by your company that were subsequently
exported by an affiliated exporter to the United States.
Please do not include any sales of merchandise
manufactured in Hong Kong in your figures.
[[Page 72787]]
Constructed Export Price Sales:
Generally, a U.S. sale is classified as a constructed
export price sale when the first sale to an unaffiliated person occurs
after importation. However, if the first sale to the unaffiliated
person is made by a person in the United States affiliated with the
foreign exporter, constructed export price applies even if the sale
occurs prior to importation.
Please include any sales exported by your company directly
to the United States;
Please include any sales exported by your company to a
third-country market economy reseller where you had knowledge that the
merchandise was destined to be resold to the United States.
If you are a producer of subject merchandise, please
include any sales manufactured by your company that were subsequently
exported by an affiliated exporter to the United States.
Please do not include any sales of merchandise
manufactured in Hong Kong in your figures.
Further Manufactured:
Further manufacture or assembly costs include amounts
incurred for direct materials, labor and overhead, plus amounts for
general and administrative expense, interest expense, and additional
packing expense incurred in the country of further manufacture, as well
as all costs involved in moving the product from the U.S. port of entry
to the further manufacturer.
[FR Doc. 05-23738 Filed 12-6-05; 8:45 am]
BILLING CODE 3510-DS-S
