Structural Steel Beams from Korea: Preliminary Results of Antidumping Duty Administrative Review, 52766-52770 [E6-14848]
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52766
Federal Register / Vol. 71, No. 173 / Thursday, September 7, 2006 / Notices
shipper review, initiated in the month
immediately following the semi–annual
anniversary month, will be the sixmonth period immediately preceding
the semi–annual anniversary month. As
discussed above, under 19 CFR
351.214(f)(2)(ii), when the sale of the
subject merchandise occurs within the
POR, but the entry occurs after the
normal POR, the POR may be extended.
Therefore, the POR for the new shipper
review of Shanghai Bloom is December
1, 2005, through June 30, 2006.
Pursuant to the Department’s
regulations, in cases involving non–
market economies, the Department
requires that a company seeking to
establish eligibility for an antidumping
duty rate separate from the country–
wide rate provide evidence of de jure
and de facto absence of government
control over the company’s export
activities. Accordingly, we will issue a
questionnaire to Shanghai Bloom,
including a separate rates section. The
review will proceed if the responses
provide sufficient indication that
Shanghai Bloom is not subject to either
de jure or de facto government control
with respect to its exports of honey.
However, if Shanghai Bloom does not
demonstrate its eligibility for a separate
rate, then the company will be deemed
not separate from other companies that
exported during the POI and the new
shipper review will be rescinded as to
Shanghai Bloom.
On August 17, 2006, the Pension
Protection Act of 2006 (H.R. 4) was
signed into law. Section 1632 of H.R. 4
temporarily suspends the authority of
the Department to instruct CBP to
collect a bond or other security in lieu
of a cash deposit in new shipper
reviews. Therefore, the posting of a
bond under Section 751(a)(2)(B)(iii) of
the Act in lieu of a cash deposit is not
available in this case. Importers of
subject merchandise exported by
Shanghai Bloom and manufactured by
Jindeya must continue to post a cash
deposit of estimated antidumping duties
on each entry of subject merchandise at
the current PRC–wide rate of 212.39
percent.
Interested parties that need access to
proprietary information in this new
shipper review should submit
applications for disclosure under
administrative protective orders in
accordance with 19 CFR 351.305 and
351.306.
This initiation notice is issued and
published in accordance with section
751(a) of the Act and sections
351.214(d) and 351.221(c)(1)(i) of the
Department’s regulations.
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Dated: August 30, 2006.
Stephen J. Claeys,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. E6–14846 Filed 9–6–06; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–580–841]
Structural Steel Beams from Korea:
Preliminary Results of Antidumping
Duty Administrative Review
Import Administration,
International Trade Administration,
U.S. Department of Commerce.
SUMMARY: In response to a request from
the Committee for Fair Beam Imports,
Nucor Corp., Nucor–Yamato Steel Co.,
Steel Dynamics, Inc. and TXI–Chaparral
Steel Co., (collectively, petitioners), INI
Steel Company (INI), and Dongkuk Steel
Mill Co., Ltd. (DSM), the Department of
Commerce (the Department) is
conducting an administrative review of
the antidumping duty order on
structural steel beams from the Republic
of Korea (Korea). This review covers INI
and DSM, manufacturers and exporters
of the subject merchandise. The period
of review (POR) is August 1, 2004
through July 31, 2005.
We preliminarily determine that INI
has sold subject merchandise at less
than normal value (NV) during the POR.
We also preliminarily determine that
DSM has not sold subject merchandise
at less than 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.
We invite interested parties to
comment on these preliminary results.
Parties who submit arguments in this
segment of the proceeding are requested
to submit with the argument: (1) A
statement of the issue, (2) a brief
summary of the argument and (3) a table
of authorities.
AGENCY:
EFFECTIVE DATE:
September 7, 2006.
FOR FURTHER INFORMATION CONTACT:
Maryanne Burke or Steve Bezirganian,
AD/CVD Operations, Office 7, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Room 7866, Washington,
DC 20230; telephone (202) 482–5604 or
(202) 482–1131 respectively.
SUPPLEMENTARY INFORMATION:
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Background
On August 1, 2005 the Department
published a notice of opportunity to
request an administrative review of the
antidumping duty order on structural
steel beams from Korea. See
Antidumping or Countervailing Duty
Order, Finding, or Suspended
Investigation; Opportunity to Request
Administrative Review, 70 FR 44085
(August 1, 2005). On August 31, 2005
petitioners requested that the
Department conduct an administrative
review of DSM, a Korean producer of
subject merchandise. Also, on August
31, 2005, DSM and INI requested that
the Department conduct an
administrative review of their sales of
subject merchandise during the POR.
On September 28, 2005 the Department
published a notice of initiation of a
review of structural steel beams from
Korea covering the period August 1,
2004 through July 31, 2005. See
Initiation of Antidumping and
Countervailing Duty Administrative
Reviews and Request for Revocation in
Part, 70 FR 56631 (September 28, 2005).
On October 3, 2005 the Department
issued its antidumping duty
questionnaires to INI and to DSM.
Because we disregarded sales of
certain products made by INI at prices
below the cost of production (COP) in
what was, at that time, the most recently
completed review of structural steel
beams from Korea (see Structural Steel
Beams from Korea; Notice of Final
Results of Antidumping Duty
Administrative Review, 70 FR 6837
(February 9, 2005)), we had reasonable
grounds to believe or suspect INI made
sales of the foreign like product at prices
below the COP, as provided by section
773(b)(2)(A)(ii) of the Tariff Act of 1930,
as amended (the Tariff Act). Therefore,
pursuant to section 773(b)(1) of the
Tariff Act, from the outset of this review
we required INI to respond to section D
of the questionnaire. On November 4,
2005, the Department granted approval
of INI’s October 12, 2005 request to shift
its cost reporting period for section D.
The Department had not disregarded
sales of structural steel beams made by
DSM at prices below the COP in the
most recently completed review of
DSM; therefore, DSM was not initially
required to respond to section D of the
questionnaire. However, on December
19, 2005 petitioners alleged that DSM
sold the foreign like product at prices
below its COP. On January 9, 2006, the
Department initiated a cost investigation
of DSM based upon the determination
that petitioners’ allegation established
reasonable grounds to believe or suspect
sales below cost, and instructed DSM to
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respond to section D of the
questionnaire.
From November 2005 through June
2006, INI and DSM submitted timely
responses to the initial questionnaire
and to the Department’s subsequent
supplemental questionnaires. Because it
was not practicable to complete this
review within the normal time frame, on
April 17, 2006, we published in the
Federal Register our notice of the
extension of time limits for this review.
Structural Steel Beams from the
Republic of Korea; Extension of Time
Limit for Preliminary Results of
Antidumping Duty Administrative
Review, 71 FR 19714 (April 17, 2006).
This extension established the deadline
for these preliminary results as August
31, 2006.
Period of Review
The POR is from August 1, 2004 to
July 31, 2005.
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Scope of the Order
The products covered by this order
are doubly–symmetric shapes, whether
hot- or cold–rolled, drawn, extruded,
formed or finished, having at least one
dimension of at least 80 mm (3.2 inches
or more), whether of carbon or alloy
(other than stainless) steel, and whether
or not drilled, punched, notched,
painted, coated or clad. These products
include, but are not limited to, wide–
flange beams (‘‘W’’ shapes), bearing
piles (‘‘HP’’ shapes), standard beams
(‘‘S’’ or ‘‘I’’ shapes) and ‘‘M’’ shapes. All
products that meet the physical and
metallurgical descriptions provided
above are within the scope of this order
unless otherwise excluded. The
following products are outside and/or
specifically excluded from the scope of
this order: structural steel beams greater
than 400 pounds per linear foot or with
a web or section height (also known as
depth) over 40 inches.
The merchandise subject to this
review is currently classifiable in the
Harmonized Tariff Schedule of the
United States (HTSUS) at subheadings:
7216.32.00000, 7216.33.0030,
7216.33.0060, 7216.33.0090,
7216.50.0000, 7216.61.0000,
7216.69.0000, 7216.99.0010,
7216.99.0090, 7228.70.3010,
7228.70.3041 and 7228.70.6000.
Although the HTSUS subheadings are
provided for convenience and customs
purposes, the written description of the
merchandise is dispositive.
Product Comparisons
In accordance with section 771(16) of
the Tariff Act, we considered all
structural steel beams produced by DSM
and INI covered by the description in
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the ‘‘Scope of the Order’’ section of this
notice, supra, which were sold in the
home market during the reporting
period for home market sales, to be the
foreign like product for the purpose of
determining appropriate product
comparisons to structural steel beams
products sold in the United States. In
making product comparisons, we
matched products based on the physical
characteristics identified in our
questionnaire and reported by DSM and
INI as follows (listed in order of
preference): hot–formed or cold–formed,
shape/size (section depth), strength/
grade and whether or not coated. Where
there were no sales of identical
merchandise in the home market to
compare to U.S. sales, we compared
U.S. sales to the next most similar
foreign like product on the basis of the
characteristics and reporting
instructions listed in the questionnaire,
or to constructed value (CV), as
appropriate.
Normal Value Comparisons
To determine whether sales of
structural steel beams from Korea to the
United States were made at less than
NV, we compared the export price (EP)
or the constructed export price (CEP) to
NV, as described in the ‘‘Export Price,’’
‘‘Constructed Export Price,’’ and
‘‘Normal Value’’ sections of this notice,
below. In accordance with section
777A(d)(2) of the Tariff Act, we
compared the EPs and CEPs of
individual U.S. transactions to the
monthly weighted–average NVs of the
foreign like product where there were
sales at prices above the COP, as
discussed in the ‘‘Cost of Production’’
section below.
Export Price and Constructed Export
Price
Section 772(a) of the Tariff Act
defines EP as ‘‘the price at which the
subject merchandise is first sold (or
agreed to be sold) before the date of
importation by the producer or exporter
of the subject merchandise outside of
the United States to an unaffiliated
purchaser in the United States or to an
unaffiliated purchaser for exportation to
the United States as adjusted under
subsection (c).’’ Section 772(b) of the
Tariff Act defines CEP as ‘‘the price at
which the subject merchandise is first
sold (or agreed to be sold) in the United
States before or after the date of
importation by or for the account of the
producer or exporter of such
merchandise or by a seller affiliated
with the producer or exporter, to a
purchaser not affiliated with the
producer or exporter as adjusted under
subsections (c) and (d).’’ For the
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purposes of this administrative review,
INI has classified all of its U.S. sales as
EP sales. DSM has classified all of its
U.S. sales as CEP sales.
INI
For INI we calculated the price of U.S.
sales made prior to importation to
unaffiliated purchasers in the United
States. We made deductions from the
reported gross unit price for movement
expenses in accordance with section
772(c)(2)(A) of the Tariff Act; these
included, where appropriate, foreign
inland freight from plant to warehouse,
foreign inland freight from plant/
warehouse to port of exportation,
foreign warehousing, international
freight, U.S. duties, and U.S. brokerage
expenses. We made an addition to U.S.
price for duty drawback pursuant to
section 772(c)(1)(B) of the Tariff Act.
See Administrative Review of the
Antidumping Duty Order on Structural
Steel Beams from Korea: Preliminary
Results for INI Steel Company (INI
Preliminary Analysis Memorandum)
from Steve Bezirganian to the File,
dated August 31, 2006.
DSM
For DSM we calculated CEP based on
the prices from DSM’s U.S. affiliate,
Dongkuk International, Inc. (DKA) to
unaffiliated purchasers in the United
States. We made deductions for
movement expenses in accordance with
section 772(c)(2)(A) of the Tariff Act;
these included, where appropriate,
foreign inland freight from the plant to
the port of export, foreign brokerage and
handling international freight, marine
insurance, other U.S. transportation
expenses (i.e., U.S. brokerage and
handling charges), and U.S. customs
duty. Additionally, we made deductions
for expenses that bear a direct
relationship to the sale in the United
States (i.e., credit, and other direct
selling expenses) pursuant to section
772(d)(1)(B). We added an amount for
duty drawback pursuant to section
772(c)(1)(B) of the Tariff Act.
For CEP sales we also made an
adjustment for profit in accordance with
section 772 (d)(3) of the Tariff Act. We
deducted the profit allocated to
expenses deducted under sections
772(d)(1) and 772(d)(2) of the Tariff Act
in accordance with sections 772(d)(3)
and 772(f) of the Tariff Act. In
accordance with section 772(f) of the
Tariff Act, we computed profit based on
total revenue realized on sales in both
the U.S. and home markets, less all
expenses associated with those sales.
We then allocated profit expenses
incurred with respect to U.S. economic
activity, based on the ratio of total U.S.
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expenses to total expenses for both the
U.S. and home markets.
Level of Trade
In accordance with section
773(a)(1)(B)(i) of the Tariff Act, to the
extent practicable, we determine NV
based on sales in the comparison market
at the same level of trade (LOT) as the
CEP transaction. The NV LOT is that of
the starting–price sales in the
comparison market or, when NV is
based on CV, that of the sales from
which we derive selling, general and
administrative (SG&A) expenses and
profit. For EP sales, the LOT is also the
level of the starting price sale, which is
usually from the exporter to the
importer. For CEP sales, the LOT is the
level of the constructed sale from the
exporter to the importer.
To determine whether NV sales are at
a different LOT than EP or CEP sales, we
examine stages in the marketing process
and selling functions along the chain of
distribution between the producer and
the customer. If the comparison market
sales are at a different LOT and that
difference affects price comparability (as
manifested in a pattern of consistent
price differences between the sales on
which NV is based and comparison–
market sales at the LOT of the export
transaction), we make an LOT
adjustment under section 773(a)(7)(A) of
the Tariff Act. Finally, for CEP sales, if
the NV level is more remote from the
factory than the CEP level and there is
no basis for determining whether the
differences in the levels between NV
and CEP sales affect price
comparability, we adjust NV under
section 773(a)(7)(B) of the Tariff Act (the
CEP offset provision). See, e.g., Final
Determination of Sales at Less Than
Fair Value: Greenhouse Tomatoes From
Canada, 67 FR 8781 (February 26,
2002), and accompanying Issues and
Decisions Memorandum at Comment 8;
see also Certain Hot–Rolled Flat–Rolled
Carbon Quality Steel Products from
Brazil; Preliminary Results of
Antidumping Duty Administrative
Review, 70 FR 17406, 17410 (April 6,
2005), unchanged in Notice of Final
Results of Antidumping Duty
Administrative Review: Certain Hot–
Rolled Flat–Rolled Carbon Quality Steel
Products from Brazil, 70 FR 58683
(October 7, 2005).
In identifying LOTs for CEP, we
considered only the selling activities
reflected in the price after the deduction
of expenses and profit under section
772(d) of the Tariff Act. See Micron
Tech., Inc. v. United States, 243 F.3d
1301, 1314–1315 (Fed. Cir. 2001).
Generally, if the reported LOTs are the
same in the home and U.S. markets, the
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functions and activities of the seller
should be similar. Conversely, if a party
reports LOTs that are different among
categories of sales, the functions and
activities should be dissimilar. See
Porcelain–on-Steel Cookware from
Mexico; Final Results of Administrative
Review, 65 FR 30068 (May 10, 2000),
and accompanying Issues and Decisions
Memorandum at Comment 6.
In implementing these principles in
this administrative review, we obtained
information from INI and DSM about
the marketing stages involved in its
reported U.S. and home market sales,
including descriptions of the selling
activities performed for each channel of
distribution.
INI
INI indicated its home market sales
were made through two channels (sales
to unaffiliated distributors, and sales to
affiliated and unaffiliated end–users)
and its U.S. sales were through one
channel (to unaffiliated U.S. customers).
INI did not claim any distinct LOTs, and
its descriptions of selling functions
indicated very little variation across
channels and markets. Based upon the
information on record, we have
determined that there is only one LOT
in both markets for INI. See INI
Preliminary Analysis Memorandum.
DSM
DSM claimed one LOT in the home
market. DSM reported it sold through
one channel of distribution whereby
merchandise was sold directly from its
factories to unaffiliated customers
(distributors and end–users). See DSM’s
November 7, 2005 section A response at
15. DSM also claimed only one LOT in
the U.S. market, reporting it sold
through one channel of distribution in
the United States. DSM’s sales were
made directly from its production
facilities in Korea to its U.S. affiliate,
DKA, which resold the merchandise to
the unaffiliated U.S. customer
(classified as an end–user). See DSM’s
November 7, 2005 section A response at
15.
DSM maintains the constructed LOT
from DSM to DKA is much less
advanced than the actual LOT of home
market sales, claiming DSM performs a
limited range of selling activities on
sales to the United States. See DSM’s
November 7, 2005 section A response at
19 and DSM’s January 20, 2006
supplemental questionnaire response at
Appendix SA–16. However, from our
analysis of the information on record,
we have determined that most selling
functions were performed at an equal
level of intensity in both the home and
U.S. markets. See Administrative
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Review of the Antidumping Duty Order
on Structural Steel Beams from Korea:
Preliminary Results for Dongkuk Steel
Mill Company, Ltd. (DSM Preliminary
Analysis Memorandum) from Maryanne
Burke to the File, dated August 31,
2006. Therefore, we found no basis for
accepting a distinct, less advanced LOT
for U.S. sales than for home market sales
and conclude no LOT adjustment or
CEP offset is warranted.
Normal Value
A. Selection of Comparison Market
To determine whether there is a
sufficient volume of sales in the home
market to serve as a viable basis for
calculating NV (i.e., the aggregate
volume of home market sales of the
foreign like product is greater than five
percent of the aggregate volume of U.S.
sales), we compared the respondents’
volume of home market sales of the
foreign like product to the volume of
U.S. sales of the subject merchandise, in
accordance with section 773(a)(1)(B) of
the Tariff Act. Because both
respondents’ aggregate volume of home
market sales of the foreign like product
was greater than five percent of their
aggregate volume of U.S. sales for the
subject merchandise, we determined the
home market was viable for both INI
and DSM. See INI’s June 30, 2006
supplemental questionnaire response at
Exhibit A–48 and DSM’s December 2,
2005 section B response at Exhibit SA–
1.
B. Affiliated Party Transactions and
Arm’s–Length Test
The Department may calculate NV
based on a sale to an affiliated party
only if it is satisfied that the price to the
affiliated party is comparable to the
prices at which sales are made to parties
not affiliated with the respondent, (i.e.,
sales at arm’s–length). See 19 CFR
351.403(c). Sales to affiliated customers
in the home market not made at arm’s–
length prices are excluded from our
analysis because we consider them to be
outside the ordinary course of trade. See
19 CFR 351.102(b).
INI reported it had made home market
sales to affiliated end–users. To test
whether INI’s sales to affiliates were
made at arm’s–length prices, we
compared on a model–specific basis the
starting prices of sales to affiliated and
unaffiliated customers net of all direct
selling expenses, discounts and rebates,
movement charges, and packing. Where
applicable, we also made adjustments to
gross unit price for reported billing
adjustments. Where prices to the
affiliated party were, on average, within
a range of 98 to 102 percent of the price
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of identical or comparable merchandise
to the unaffiliated parties, we
determined the sales made to the
affiliated party were at arm’s length. In
accordance with the Department’s
practice, we disregarded sales to
affiliated parties that we determined
were not made at arm’s length. See
Antidumping Proceedings: Affiliated
Party Sales in the Ordinary Course of
Trade, 67 FR 69186, 69194 (November
15, 2002). We found that an INI
affiliated home market customer failed
the arm’s–length test and, in accordance
with the Department’s practice, we
excluded sales to this affiliate from our
analysis. DSM reported no sales to
affiliated parties in the home market.
C. Cost of Production Analysis
In accordance with section 773(b)(3)
of the Tariff Act, we calculated the
weighted–average COP for each model
based on the sum of material and
fabrication costs for the foreign like
product, plus amounts for selling
expenses, general and administrative
(G&A) expenses, interest expenses and
packing costs. The Department relied on
the COP data reported by INI and DSM;
however, we made adjustments to INI’s
G&A and financial expense ratio
(INTEX). See the Department’s Cost of
Production and Constructed Value
Calculation Adjustments for the
Preliminary Results - INI Steel Company
from Frederick W. Mines to Neal M.
Halper (INI Cost Calculation
Memorandum), dated August 31, 2006.
For DSM, we made an adjustment to its
reported INTEX ratio. See the
Department’s Cost of Production and
Constructed Value Calculation
Adjustments for the Preliminary Results
- Dongkuk Steel Mill Company, Ltd.
from Trinette Boyd to Neal M. Halper
(DSM Cost Calculation Memorandum),
dated August 31, 2006. In determining
whether to disregard home market sales
made at prices below the COP, we
examined, in accordance with sections
773(b)(1)(A) and (B) of the Tariff Act,
whether, within an extended period of
time, such sales were made in
substantial quantities, and whether such
sales were made at prices which
permitted the recovery of all costs
within a reasonable period of time.
Pursuant to section 773(b)(2)(C) of the
Tariff Act, where less than 20 percent of
the respondent’s home market sales of a
given model were at prices below the
COP, we did not disregard any below–
cost sales of that model because we
determined that the below–cost sales
were not made within an extended
period of time in ‘‘substantial
quantities.’’ Where 20 percent or more
of the respondent’s home market sales
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of a given model were at prices less than
COP, we disregarded the below–cost
sales because: (1) they were made
within an extended period of time in
‘‘substantial quantities,’’ in accordance
with sections 773(b)(2)(B) and (C) of the
Tariff Act, and (2) based on our
comparison of prices to the weighted–
average COPs for the POR, they were at
prices which would not permit the
recovery of all costs within a reasonable
period of time, in accordance with
section 773(b)(2)(D) of the Tariff Act.
To determine whether INI made sales
at prices below COP, we compared the
product–specific COP figures to home
market prices net of reported billing
adjustments, discounts and rebates, and
applicable movement expenses of the
foreign like product as required under
section 773(b) of the Tariff Act. Our cost
test for INI revealed that for home
market sales of certain models, less than
20 percent of the sales volume (by
weight) of those models were at prices
below COP. Therefore, we retained all
such sales observations in our analysis
and used them in the calculation of NV.
Our cost test also indicated that for
other models of subject merchandise
produced by INI, 20 percent or more of
the home market sales volume (by
weight) were sold at prices below COP
within an extended period of time and
were at prices which would not permit
the recovery of all costs within a
reasonable period of time. Therefore, in
accordance with section 773(b)(1) of the
Tariff Act, for INI we excluded these
below–cost sales from our analysis and
used the remaining above–cost sales in
the calculation of NV.
To determine whether DSM made
sales at prices below COP, we compared
the product–specific COP figures to
home market prices net of discounts and
rebates and applicable movement
charges of the foreign like product as
required under section 773(b) of the
Tariff Act.
We found DSM did not have any
models for which 20 percent or more of
sales volume (by weight) were below
cost during the POR. Therefore, we did
not disregard any of DSM’s home
market sales and included all such sales
in our calculation of NV.
D. Constructed Value
In accordance with section 773(e) of
the Tariff Act, for both INI and DSM, we
calculated CV based on the sum of the
respondent’s material and fabrication
costs, SG&A expenses, profit, and U.S.
packing costs. We calculated the COP
component of CV as described above in
the ‘‘Cost of Production Analysis’’
section of this notice. In accordance
with section 773(e)(2)(A) of the Tariff
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Act, we based SG&A expenses and
profit on the amounts incurred and
realized by the respondent in
connection with the production and sale
of the foreign like product in the
ordinary course of trade, for
consumption in the foreign country. For
selling expenses, we used the weighted–
average home market direct and indirect
selling expenses. For these preliminary
results the Department did not use CV
in its margin calculation analysis for
either INI or DSM.
E. Price–to-Price Comparisons
We calculated NV based on prices to
unaffiliated customers and prices to
affiliated customers we determined to
be at arm’s length for home market sale
observations that passed the cost test,
and made adjustments, where
appropriate, for physical differences in
the merchandise in accordance with
section 773(a)(6)(C)(ii) of the Tariff Act.
For INI we made adjustments to gross
unit price, where applicable, for billing
adjustments, discounts and rebates and
made deductions, where applicable, for
foreign inland freight (i.e., inland freight
from plant to distribution warehouse),
warehousing expenses and inland
freight from plant/distribution
warehouse to customer, pursuant to
section 773(a)(6)(B) of the Tariff Act. In
accordance with sections 773(a)(6)(A)
and (B) of the Tariff Act, we deducted
home market packing costs and added
U.S. packing expenses. In addition, we
made adjustments for differences in cost
attributable to differences in physical
characteristics of INI merchandise
pursuant to section 773(a)(6)(C)(ii) of
the Tariff Act and 19 CFR 351.411. We
also made adjustments for differences in
circumstances of sale (COS), where
applicable, for commissions, home
market credit expenses, warranty
expenses, and U.S. imputed credit
expenses, in accordance with section
773(a)(6)(C)(iii) of the Tariff Act and 19
CFR 351.410.
For DSM, we based NV on the home
market prices to unaffiliated purchasers.
We accounted for billing adjustments,
interest revenue and discounts and
rebates, where appropriate. We made
deductions for foreign inland freight,
insurance, and handling. We also
removed home market packing costs
and added U.S. packing costs in
accordance with sections 773(a)(6)(A)
and (B) of the Tariff Act. In addition, we
made adjustments for differences in
COS, where applicable, for imputed
credit expenses and warranty expenses
in accordance with section
773(a)(6)(C)(iii) of the Tariff Act and 19
CFR 351.410.
E:\FR\FM\07SEN1.SGM
07SEN1
52770
Federal Register / Vol. 71, No. 173 / Thursday, September 7, 2006 / Notices
for merchandise exported by INI and
DSM which is subject to this review.
The Department will issue appropriate
assessment instructions directly to CBP
within 15 days of publication of the
final results of this review. The
Department clarified its ‘‘automatic
assessment’’ regulation on May 6, 2003
Preliminary Results of Review
(68 FR 23954). See Antidumping and
Countervailing Duty Proceedings:
As a result of our review, we
Assessment of Antidumping Duties, 68
preliminarily determine the weighted–
average dumping margins for the period FR 23954 (May 6, 2003). This
August 1, 2004 through July 31, 2005 to clarification will apply to entries of
subject merchandise during the POR
be as follows:
produced by INI and DSM for which
Manufacturer / Exporter
Margin
they did not know their merchandise
would be exported by another company
INI Steel Company ...................
1.91% to the United States. In such instances,
Dongkuk Steel Mill Co., Ltd. .....
0.00%
we will instruct CBP to liquidate
unreviewed entries at the All–Others
The Department will disclose
calculations performed within five days rate if there is no rate for the
intermediate company(ies) involved in
of the date of publication of this notice
the transaction.
in accordance with 19 CFR 351.224(b).
An interested party may request a
Revocation of the Order - Cash Deposits
hearing within thirty days of
Not Required
publication of these preliminary results.
On March 15, 2006, the United States
See 19 CFR 351.310(c). Any hearing, if
International Trade Commission (ITC)
requested, will be held 37 days after the
determined that the revocation of the
date of publication, or the first business
antidumping duty orders on structural
day thereafter, unless the Department
steel beams from Korea would not likely
alters the date per 19 CFR 351.310(d).
lead to continuation or recurrence of
Interested parties may submit case briefs
material injury to an industry in the
or written comments no later than 30
United States within a reasonably
days after the date of publication of
foreseeable time. Consequently, the
these preliminary results of review.
Department has revoked this order,
Rebuttals to written comments, limited
effective August 18, 2005. See
to issues raised in the case briefs and
Revocation of Antidumping and
comments, may be filed no later than 35
Countervailing Duty Orders: Structural
days after the date of publication of this
Steel Beams from Japan and South
notice. Parties who submit arguments in
Korea, 71 FR 15375 (March 28, 2006).
these proceedings are requested to
Therefore, there will be no need to issue
submit with the argument: (1) A
new cash deposit instructions for this
statement of the issue, (2) a brief
administrative review.
summary of the argument, and (3) a
Notification to Importers
table of authorities. Further, we would
appreciate it if parties submitting case
This notice also serves as a
briefs, rebuttal briefs, and written
preliminary reminder to importers of
comments provided the Department
their responsibility under 19 CFR
with an additional copy of the public
351.402(f) to file a certificate regarding
version of any such argument on
the reimbursement of antidumping
diskette. The Department will issue
duties prior to liquidation of the
final results of this administrative
relevant entries during this review
review, including the results of our
period. Failure to comply with this
analysis of the issues in any such case
requirement could result in the
briefs, rebuttal briefs, and written
Secretary’s presumption that
comments or at a hearing, within 120
reimbursement of antidumping duties
days of publication of these preliminary occurred and the subsequent assessment
results.
of double antidumping duties.
We are issuing and publishing this
Assessment
notice in accordance with sections
Upon completion of this review the
751(a)(1) and 777(i)(1) of the Tariff Act.
Department will determine, and CBP
Dated: August 31, 2006.
will assess, antidumping duties on all
David M. Spooner,
appropriate entries. In accordance with
Assistant Secretary for Import
19 CFR 351.212(b)(1) we have
Administration.
calculated importer–specific (or, where
[FR Doc. E6–14848 Filed 9–6–06; 8:45 am]
the importer was unknown, customer–
specific) ad valorem assessment rates
BILLING CODE 3510–DS–S
rwilkins on PROD1PC63 with NOTICES
Currency Conversion
We made currency conversions into
U.S. dollars, in accordance with section
773A(a) of the Tariff Act, based on the
exchange rates in effect on the dates of
the U.S. sales as certified by the Federal
Reserve Bank.
VerDate Aug<31>2005
18:11 Sep 06, 2006
Jkt 208001
PO 00000
Frm 00012
Fmt 4703
Sfmt 4703
DEPARTMENT OF COMMERCE
International Trade Administration
[C–427–810]
Preliminary Results of Countervailing
Duty Administrative Review:
Corrosion–Resistant Carbon Steel Flat
Products from France
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(‘‘the Department’’) is conducting an
administrative review of the
countervailing duty (‘‘CVD’’) order on
corrosion–resistant carbon steel flat
products (‘‘CORE’’) from France for the
period January 1, 2004, through
December 31, 2004. We preliminarily
find that the net subsidy rate for the
company under review is de minimis.
See the ‘‘Preliminary Results of Review’’
section of this notice, infra. Interested
parties are invited to comment on these
preliminary results. (See the ‘‘Public
Comment’’ section, infra).
EFFECTIVE DATE: September 7, 2006.
FOR FURTHER INFORMATION CONTACT:
Kristen Johnson, AD/CVD Operations,
Office 3, Import Administration,
International Trade Administration,
U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW,
Washington, DC 20230; telephone: (202)
482–4793.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On August 17, 1993, the Department
published in the Federal Register the
CVD order on CORE from France. See
Countervailing Duty Order and
Amendment to Final Affirmative
Countervailing Duty Determination:
Certain Steel Products from France, 58
FR 43759 (August 17, 1993). On August
1, 2005, the Department published a
notice of opportunity to request an
administrative review of this CVD order.
See Antidumping or Countervailing
Duty Order, Finding, or Suspended
Investigation; Opportunity to Request
Administrative Review, 70 FR 44085
(August 1, 2005). On August 31, 2005,
we received a timely request for review
from Duferco Coating S.A. and Sorral
S.A. (collectively, ‘‘Duferco Sorral’’), a
French producer and exporter of subject
merchandise, and from the United
States Steel Corporation (‘‘the
petitioner’’).
On September 28, 2005, the
Department initiated an administrative
review of the CVD order on CORE from
France, covering the period January 1,
2004, through December 31, 2004. See
E:\FR\FM\07SEN1.SGM
07SEN1
Agencies
[Federal Register Volume 71, Number 173 (Thursday, September 7, 2006)]
[Notices]
[Pages 52766-52770]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-14848]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-841]
Structural Steel Beams from Korea: Preliminary Results of
Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration, U.S.
Department of Commerce.
SUMMARY: In response to a request from the Committee for Fair Beam
Imports, Nucor Corp., Nucor-Yamato Steel Co., Steel Dynamics, Inc. and
TXI-Chaparral Steel Co., (collectively, petitioners), INI Steel Company
(INI), and Dongkuk Steel Mill Co., Ltd. (DSM), the Department of
Commerce (the Department) is conducting an administrative review of the
antidumping duty order on structural steel beams from the Republic of
Korea (Korea). This review covers INI and DSM, manufacturers and
exporters of the subject merchandise. The period of review (POR) is
August 1, 2004 through July 31, 2005.
We preliminarily determine that INI has sold subject merchandise at
less than normal value (NV) during the POR. We also preliminarily
determine that DSM has not sold subject merchandise at less than 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.
We invite interested parties to comment on these preliminary
results. Parties who submit arguments in this segment of the proceeding
are requested to submit with the argument: (1) A statement of the
issue, (2) a brief summary of the argument and (3) a table of
authorities.
EFFECTIVE DATE: September 7, 2006.
FOR FURTHER INFORMATION CONTACT: Maryanne Burke or Steve Bezirganian,
AD/CVD Operations, Office 7, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Room 7866, Washington, DC 20230; telephone
(202) 482-5604 or (202) 482-1131 respectively.
SUPPLEMENTARY INFORMATION:
Background
On August 1, 2005 the Department published a notice of opportunity
to request an administrative review of the antidumping duty order on
structural steel beams from Korea. See Antidumping or Countervailing
Duty Order, Finding, or Suspended Investigation; Opportunity to Request
Administrative Review, 70 FR 44085 (August 1, 2005). On August 31, 2005
petitioners requested that the Department conduct an administrative
review of DSM, a Korean producer of subject merchandise. Also, on
August 31, 2005, DSM and INI requested that the Department conduct an
administrative review of their sales of subject merchandise during the
POR. On September 28, 2005 the Department published a notice of
initiation of a review of structural steel beams from Korea covering
the period August 1, 2004 through July 31, 2005. See Initiation of
Antidumping and Countervailing Duty Administrative Reviews and Request
for Revocation in Part, 70 FR 56631 (September 28, 2005). On October 3,
2005 the Department issued its antidumping duty questionnaires to INI
and to DSM.
Because we disregarded sales of certain products made by INI at
prices below the cost of production (COP) in what was, at that time,
the most recently completed review of structural steel beams from Korea
(see Structural Steel Beams from Korea; Notice of Final Results of
Antidumping Duty Administrative Review, 70 FR 6837 (February 9, 2005)),
we had reasonable grounds to believe or suspect INI made sales of the
foreign like product at prices below the COP, as provided by section
773(b)(2)(A)(ii) of the Tariff Act of 1930, as amended (the Tariff
Act). Therefore, pursuant to section 773(b)(1) of the Tariff Act, from
the outset of this review we required INI to respond to section D of
the questionnaire. On November 4, 2005, the Department granted approval
of INI's October 12, 2005 request to shift its cost reporting period
for section D. The Department had not disregarded sales of structural
steel beams made by DSM at prices below the COP in the most recently
completed review of DSM; therefore, DSM was not initially required to
respond to section D of the questionnaire. However, on December 19,
2005 petitioners alleged that DSM sold the foreign like product at
prices below its COP. On January 9, 2006, the Department initiated a
cost investigation of DSM based upon the determination that
petitioners' allegation established reasonable grounds to believe or
suspect sales below cost, and instructed DSM to
[[Page 52767]]
respond to section D of the questionnaire.
From November 2005 through June 2006, INI and DSM submitted timely
responses to the initial questionnaire and to the Department's
subsequent supplemental questionnaires. Because it was not practicable
to complete this review within the normal time frame, on April 17,
2006, we published in the Federal Register our notice of the extension
of time limits for this review. Structural Steel Beams from the
Republic of Korea; Extension of Time Limit for Preliminary Results of
Antidumping Duty Administrative Review, 71 FR 19714 (April 17, 2006).
This extension established the deadline for these preliminary results
as August 31, 2006.
Period of Review
The POR is from August 1, 2004 to July 31, 2005.
Scope of the Order
The products covered by this order are doubly-symmetric shapes,
whether hot- or cold-rolled, drawn, extruded, formed or finished,
having at least one dimension of at least 80 mm (3.2 inches or more),
whether of carbon or alloy (other than stainless) steel, and whether or
not drilled, punched, notched, painted, coated or clad. These products
include, but are not limited to, wide-flange beams (``W'' shapes),
bearing piles (``HP'' shapes), standard beams (``S'' or ``I'' shapes)
and ``M'' shapes. All products that meet the physical and metallurgical
descriptions provided above are within the scope of this order unless
otherwise excluded. The following products are outside and/or
specifically excluded from the scope of this order: structural steel
beams greater than 400 pounds per linear foot or with a web or section
height (also known as depth) over 40 inches.
The merchandise subject to this review is currently classifiable in
the Harmonized Tariff Schedule of the United States (HTSUS) at
subheadings: 7216.32.00000, 7216.33.0030, 7216.33.0060, 7216.33.0090,
7216.50.0000, 7216.61.0000, 7216.69.0000, 7216.99.0010, 7216.99.0090,
7228.70.3010, 7228.70.3041 and 7228.70.6000. Although the HTSUS
subheadings are provided for convenience and customs purposes, the
written description of the merchandise is dispositive.
Product Comparisons
In accordance with section 771(16) of the Tariff Act, we considered
all structural steel beams produced by DSM and INI covered by the
description in the ``Scope of the Order'' section of this notice,
supra, which were sold in the home market during the reporting period
for home market sales, to be the foreign like product for the purpose
of determining appropriate product comparisons to structural steel
beams products sold in the United States. In making product
comparisons, we matched products based on the physical characteristics
identified in our questionnaire and reported by DSM and INI as follows
(listed in order of preference): hot-formed or cold-formed, shape/size
(section depth), strength/grade and whether or not coated. Where there
were no sales of identical merchandise in the home market to compare to
U.S. sales, we compared U.S. sales to the next most similar foreign
like product on the basis of the characteristics and reporting
instructions listed in the questionnaire, or to constructed value (CV),
as appropriate.
Normal Value Comparisons
To determine whether sales of structural steel beams from Korea to
the United States were made at less than NV, we compared the export
price (EP) or the constructed export price (CEP) to NV, as described in
the ``Export Price,'' ``Constructed Export Price,'' and ``Normal
Value'' sections of this notice, below. In accordance with section
777A(d)(2) of the Tariff Act, we compared the EPs and CEPs of
individual U.S. transactions to the monthly weighted-average NVs of the
foreign like product where there were sales at prices above the COP, as
discussed in the ``Cost of Production'' section below.
Export Price and Constructed Export Price
Section 772(a) of the Tariff Act defines EP as ``the price at which
the subject merchandise is first sold (or agreed to be sold) before the
date of importation by the producer or exporter of the subject
merchandise outside of the United States to an unaffiliated purchaser
in the United States or to an unaffiliated purchaser for exportation to
the United States as adjusted under subsection (c).'' Section 772(b) of
the Tariff Act defines CEP as ``the price at which the subject
merchandise is first sold (or agreed to be sold) in the United States
before or after the date of importation by or for the account of the
producer or exporter of such merchandise or by a seller affiliated with
the producer or exporter, to a purchaser not affiliated with the
producer or exporter as adjusted under subsections (c) and (d).'' For
the purposes of this administrative review, INI has classified all of
its U.S. sales as EP sales. DSM has classified all of its U.S. sales as
CEP sales.
INI
For INI we calculated the price of U.S. sales made prior to
importation to unaffiliated purchasers in the United States. We made
deductions from the reported gross unit price for movement expenses in
accordance with section 772(c)(2)(A) of the Tariff Act; these included,
where appropriate, foreign inland freight from plant to warehouse,
foreign inland freight from plant/warehouse to port of exportation,
foreign warehousing, international freight, U.S. duties, and U.S.
brokerage expenses. We made an addition to U.S. price for duty drawback
pursuant to section 772(c)(1)(B) of the Tariff Act. See Administrative
Review of the Antidumping Duty Order on Structural Steel Beams from
Korea: Preliminary Results for INI Steel Company (INI Preliminary
Analysis Memorandum) from Steve Bezirganian to the File, dated August
31, 2006.
DSM
For DSM we calculated CEP based on the prices from DSM's U.S.
affiliate, Dongkuk International, Inc. (DKA) to unaffiliated purchasers
in the United States. We made deductions for movement expenses in
accordance with section 772(c)(2)(A) of the Tariff Act; these included,
where appropriate, foreign inland freight from the plant to the port of
export, foreign brokerage and handling international freight, marine
insurance, other U.S. transportation expenses (i.e., U.S. brokerage and
handling charges), and U.S. customs duty. Additionally, we made
deductions for expenses that bear a direct relationship to the sale in
the United States (i.e., credit, and other direct selling expenses)
pursuant to section 772(d)(1)(B). We added an amount for duty drawback
pursuant to section 772(c)(1)(B) of the Tariff Act.
For CEP sales we also made an adjustment for profit in accordance
with section 772 (d)(3) of the Tariff Act. We deducted the profit
allocated to expenses deducted under sections 772(d)(1) and 772(d)(2)
of the Tariff Act in accordance with sections 772(d)(3) and 772(f) of
the Tariff Act. In accordance with section 772(f) of the Tariff Act, we
computed profit based on total revenue realized on sales in both the
U.S. and home markets, less all expenses associated with those sales.
We then allocated profit expenses incurred with respect to U.S.
economic activity, based on the ratio of total U.S.
[[Page 52768]]
expenses to total expenses for both the U.S. and home markets.
Level of Trade
In accordance with section 773(a)(1)(B)(i) of the Tariff Act, to
the extent practicable, we determine NV based on sales in the
comparison market at the same level of trade (LOT) as the CEP
transaction. The NV LOT is that of the starting-price sales in the
comparison market or, when NV is based on CV, that of the sales from
which we derive selling, general and administrative (SG&A) expenses and
profit. For EP sales, the LOT is also the level of the starting price
sale, which is usually from the exporter to the importer. For CEP
sales, the LOT is the level of the constructed sale from the exporter
to the importer.
To determine whether NV sales are at a different LOT than EP or CEP
sales, we examine stages in the marketing process and selling functions
along the chain of distribution between the producer and the customer.
If the comparison market sales are at a different LOT and that
difference affects price comparability (as manifested in a pattern of
consistent price differences between the sales on which NV is based and
comparison-market sales at the LOT of the export transaction), we make
an LOT adjustment under section 773(a)(7)(A) of the Tariff Act.
Finally, for CEP sales, if the NV level is more remote from the factory
than the CEP level and there is no basis for determining whether the
differences in the levels between NV and CEP sales affect price
comparability, we adjust NV under section 773(a)(7)(B) of the Tariff
Act (the CEP offset provision). See, e.g., Final Determination of Sales
at Less Than Fair Value: Greenhouse Tomatoes From Canada, 67 FR 8781
(February 26, 2002), and accompanying Issues and Decisions Memorandum
at Comment 8; see also Certain Hot-Rolled Flat-Rolled Carbon Quality
Steel Products from Brazil; Preliminary Results of Antidumping Duty
Administrative Review, 70 FR 17406, 17410 (April 6, 2005), unchanged in
Notice of Final Results of Antidumping Duty Administrative Review:
Certain Hot-Rolled Flat-Rolled Carbon Quality Steel Products from
Brazil, 70 FR 58683 (October 7, 2005).
In identifying LOTs for CEP, we considered only the selling
activities reflected in the price after the deduction of expenses and
profit under section 772(d) of the Tariff Act. See Micron Tech., Inc.
v. United States, 243 F.3d 1301, 1314-1315 (Fed. Cir. 2001). Generally,
if the reported LOTs are the same in the home and U.S. markets, the
functions and activities of the seller should be similar. Conversely,
if a party reports LOTs that are different among categories of sales,
the functions and activities should be dissimilar. See Porcelain-on-
Steel Cookware from Mexico; Final Results of Administrative Review, 65
FR 30068 (May 10, 2000), and accompanying Issues and Decisions
Memorandum at Comment 6.
In implementing these principles in this administrative review, we
obtained information from INI and DSM about the marketing stages
involved in its reported U.S. and home market sales, including
descriptions of the selling activities performed for each channel of
distribution.
INI
INI indicated its home market sales were made through two channels
(sales to unaffiliated distributors, and sales to affiliated and
unaffiliated end-users) and its U.S. sales were through one channel (to
unaffiliated U.S. customers). INI did not claim any distinct LOTs, and
its descriptions of selling functions indicated very little variation
across channels and markets. Based upon the information on record, we
have determined that there is only one LOT in both markets for INI. See
INI Preliminary Analysis Memorandum.
DSM
DSM claimed one LOT in the home market. DSM reported it sold
through one channel of distribution whereby merchandise was sold
directly from its factories to unaffiliated customers (distributors and
end-users). See DSM's November 7, 2005 section A response at 15. DSM
also claimed only one LOT in the U.S. market, reporting it sold through
one channel of distribution in the United States. DSM's sales were made
directly from its production facilities in Korea to its U.S. affiliate,
DKA, which resold the merchandise to the unaffiliated U.S. customer
(classified as an end-user). See DSM's November 7, 2005 section A
response at 15.
DSM maintains the constructed LOT from DSM to DKA is much less
advanced than the actual LOT of home market sales, claiming DSM
performs a limited range of selling activities on sales to the United
States. See DSM's November 7, 2005 section A response at 19 and DSM's
January 20, 2006 supplemental questionnaire response at Appendix SA-16.
However, from our analysis of the information on record, we have
determined that most selling functions were performed at an equal level
of intensity in both the home and U.S. markets. See Administrative
Review of the Antidumping Duty Order on Structural Steel Beams from
Korea: Preliminary Results for Dongkuk Steel Mill Company, Ltd. (DSM
Preliminary Analysis Memorandum) from Maryanne Burke to the File, dated
August 31, 2006. Therefore, we found no basis for accepting a distinct,
less advanced LOT for U.S. sales than for home market sales and
conclude no LOT adjustment or CEP offset is warranted.
Normal Value
A. Selection of Comparison Market
To determine whether there is a sufficient volume of sales in the
home market to serve as a viable basis for calculating NV (i.e., the
aggregate volume of home market sales of the foreign like product is
greater than five percent of the aggregate volume of U.S. sales), we
compared the respondents' volume of home market sales of the foreign
like product to the volume of U.S. sales of the subject merchandise, in
accordance with section 773(a)(1)(B) of the Tariff Act. Because both
respondents' aggregate volume of home market sales of the foreign like
product was greater than five percent of their aggregate volume of U.S.
sales for the subject merchandise, we determined the home market was
viable for both INI and DSM. See INI's June 30, 2006 supplemental
questionnaire response at Exhibit A-48 and DSM's December 2, 2005
section B response at Exhibit SA-1.
B. Affiliated Party Transactions and Arm's-Length Test
The Department may calculate NV based on a sale to an affiliated
party only if it is satisfied that the price to the affiliated party is
comparable to the prices at which sales are made to parties not
affiliated with the respondent, (i.e., sales at arm's-length). See 19
CFR 351.403(c). Sales to affiliated customers in the home market not
made at arm's-length prices are excluded from our analysis because we
consider them to be outside the ordinary course of trade. See 19 CFR
351.102(b).
INI reported it had made home market sales to affiliated end-users.
To test whether INI's sales to affiliates were made at arm's-length
prices, we compared on a model-specific basis the starting prices of
sales to affiliated and unaffiliated customers net of all direct
selling expenses, discounts and rebates, movement charges, and packing.
Where applicable, we also made adjustments to gross unit price for
reported billing adjustments. Where prices to the affiliated party
were, on average, within a range of 98 to 102 percent of the price
[[Page 52769]]
of identical or comparable merchandise to the unaffiliated parties, we
determined the sales made to the affiliated party were at arm's length.
In accordance with the Department's practice, we disregarded sales to
affiliated parties that we determined were not made at arm's length.
See Antidumping Proceedings: Affiliated Party Sales in the Ordinary
Course of Trade, 67 FR 69186, 69194 (November 15, 2002). We found that
an INI affiliated home market customer failed the arm's-length test
and, in accordance with the Department's practice, we excluded sales to
this affiliate from our analysis. DSM reported no sales to affiliated
parties in the home market.
C. Cost of Production Analysis
In accordance with section 773(b)(3) of the Tariff Act, we
calculated the weighted-average COP for each model based on the sum of
material and fabrication costs for the foreign like product, plus
amounts for selling expenses, general and administrative (G&A)
expenses, interest expenses and packing costs. The Department relied on
the COP data reported by INI and DSM; however, we made adjustments to
INI's G&A and financial expense ratio (INTEX). See the Department's
Cost of Production and Constructed Value Calculation Adjustments for
the Preliminary Results - INI Steel Company from Frederick W. Mines to
Neal M. Halper (INI Cost Calculation Memorandum), dated August 31,
2006. For DSM, we made an adjustment to its reported INTEX ratio. See
the Department's Cost of Production and Constructed Value Calculation
Adjustments for the Preliminary Results - Dongkuk Steel Mill Company,
Ltd. from Trinette Boyd to Neal M. Halper (DSM Cost Calculation
Memorandum), dated August 31, 2006. In determining whether to disregard
home market sales made at prices below the COP, we examined, in
accordance with sections 773(b)(1)(A) and (B) of the Tariff Act,
whether, within an extended period of time, such sales were made in
substantial quantities, and whether such sales were made at prices
which permitted the recovery of all costs within a reasonable period of
time. Pursuant to section 773(b)(2)(C) of the Tariff Act, where less
than 20 percent of the respondent's home market sales of a given model
were at prices below the COP, we did not disregard any below-cost sales
of that model because we determined that the below-cost sales were not
made within an extended period of time in ``substantial quantities.''
Where 20 percent or more of the respondent's home market sales of a
given model were at prices less than COP, we disregarded the below-cost
sales because: (1) they were made within an extended period of time in
``substantial quantities,'' in accordance with sections 773(b)(2)(B)
and (C) of the Tariff Act, and (2) based on our comparison of prices to
the weighted-average COPs for the POR, they were at prices which would
not permit the recovery of all costs within a reasonable period of
time, in accordance with section 773(b)(2)(D) of the Tariff Act.
To determine whether INI made sales at prices below COP, we
compared the product-specific COP figures to home market prices net of
reported billing adjustments, discounts and rebates, and applicable
movement expenses of the foreign like product as required under section
773(b) of the Tariff Act. Our cost test for INI revealed that for home
market sales of certain models, less than 20 percent of the sales
volume (by weight) of those models were at prices below COP. Therefore,
we retained all such sales observations in our analysis and used them
in the calculation of NV. Our cost test also indicated that for other
models of subject merchandise produced by INI, 20 percent or more of
the home market sales volume (by weight) were sold at prices below COP
within an extended period of time and were at prices which would not
permit the recovery of all costs within a reasonable period of time.
Therefore, in accordance with section 773(b)(1) of the Tariff Act, for
INI we excluded these below-cost sales from our analysis and used the
remaining above-cost sales in the calculation of NV.
To determine whether DSM made sales at prices below COP, we
compared the product-specific COP figures to home market prices net of
discounts and rebates and applicable movement charges of the foreign
like product as required under section 773(b) of the Tariff Act.
We found DSM did not have any models for which 20 percent or more
of sales volume (by weight) were below cost during the POR. Therefore,
we did not disregard any of DSM's home market sales and included all
such sales in our calculation of NV.
D. Constructed Value
In accordance with section 773(e) of the Tariff Act, for both INI
and DSM, we calculated CV based on the sum of the respondent's material
and fabrication costs, SG&A expenses, profit, and U.S. packing costs.
We calculated the COP component of CV as described above in the ``Cost
of Production Analysis'' section of this notice. In accordance with
section 773(e)(2)(A) of the Tariff Act, we based SG&A expenses and
profit on the amounts incurred and realized by the respondent in
connection with the production and sale of the foreign like product in
the ordinary course of trade, for consumption in the foreign country.
For selling expenses, we used the weighted-average home market direct
and indirect selling expenses. For these preliminary results the
Department did not use CV in its margin calculation analysis for either
INI or DSM.
E. Price-to-Price Comparisons
We calculated NV based on prices to unaffiliated customers and
prices to affiliated customers we determined to be at arm's length for
home market sale observations that passed the cost test, and made
adjustments, where appropriate, for physical differences in the
merchandise in accordance with section 773(a)(6)(C)(ii) of the Tariff
Act.
For INI we made adjustments to gross unit price, where applicable,
for billing adjustments, discounts and rebates and made deductions,
where applicable, for foreign inland freight (i.e., inland freight from
plant to distribution warehouse), warehousing expenses and inland
freight from plant/distribution warehouse to customer, pursuant to
section 773(a)(6)(B) of the Tariff Act. In accordance with sections
773(a)(6)(A) and (B) of the Tariff Act, we deducted home market packing
costs and added U.S. packing expenses. In addition, we made adjustments
for differences in cost attributable to differences in physical
characteristics of INI merchandise pursuant to section 773(a)(6)(C)(ii)
of the Tariff Act and 19 CFR 351.411. We also made adjustments for
differences in circumstances of sale (COS), where applicable, for
commissions, home market credit expenses, warranty expenses, and U.S.
imputed credit expenses, in accordance with section 773(a)(6)(C)(iii)
of the Tariff Act and 19 CFR 351.410.
For DSM, we based NV on the home market prices to unaffiliated
purchasers. We accounted for billing adjustments, interest revenue and
discounts and rebates, where appropriate. We made deductions for
foreign inland freight, insurance, and handling. We also removed home
market packing costs and added U.S. packing costs in accordance with
sections 773(a)(6)(A) and (B) of the Tariff Act. In addition, we made
adjustments for differences in COS, where applicable, for imputed
credit expenses and warranty expenses in accordance with section
773(a)(6)(C)(iii) of the Tariff Act and 19 CFR 351.410.
[[Page 52770]]
Currency Conversion
We made currency conversions into U.S. dollars, in accordance with
section 773A(a) of the Tariff Act, based on the exchange rates in
effect on the dates of the U.S. sales as certified by the Federal
Reserve Bank.
Preliminary Results of Review
As a result of our review, we preliminarily determine the weighted-
average dumping margins for the period August 1, 2004 through July 31,
2005 to be as follows:
------------------------------------------------------------------------
Manufacturer / Exporter Margin
------------------------------------------------------------------------
INI Steel Company.......................................... 1.91%
Dongkuk Steel Mill Co., Ltd................................ 0.00%
------------------------------------------------------------------------
The Department will disclose calculations performed within five
days of the date of publication of this notice in accordance with 19
CFR 351.224(b). An interested party may request a hearing within thirty
days of publication of these preliminary results. See 19 CFR
351.310(c). Any hearing, if requested, will be held 37 days after the
date of publication, or the first business day thereafter, unless the
Department alters the date per 19 CFR 351.310(d). Interested parties
may submit case briefs or written comments no later than 30 days after
the date of publication of these preliminary results of review.
Rebuttals to written comments, limited to issues raised in the case
briefs and comments, may be filed no later than 35 days after the date
of publication of this notice. Parties who submit arguments in these
proceedings are requested to submit with the argument: (1) A statement
of the issue, (2) a brief summary of the argument, and (3) a table of
authorities. Further, we would appreciate it if parties submitting case
briefs, rebuttal briefs, and written comments provided the Department
with an additional copy of the public version of any such argument on
diskette. The Department will issue final results of this
administrative review, including the results of our analysis of the
issues in any such case briefs, rebuttal briefs, and written comments
or at a hearing, within 120 days of publication of these preliminary
results.
Assessment
Upon completion of this review the Department will determine, and
CBP will assess, antidumping duties on all appropriate entries. In
accordance with 19 CFR 351.212(b)(1) we have calculated importer-
specific (or, where the importer was unknown, customer-specific) ad
valorem assessment rates for merchandise exported by INI and DSM which
is subject to this review. The Department will issue appropriate
assessment instructions directly to CBP within 15 days of publication
of the final results of this review. The Department clarified its
``automatic assessment'' regulation on May 6, 2003 (68 FR 23954). See
Antidumping and Countervailing Duty Proceedings: Assessment of
Antidumping Duties, 68 FR 23954 (May 6, 2003). This clarification will
apply to entries of subject merchandise during the POR produced by INI
and DSM for which they did not know their merchandise would be exported
by another company to the United States. In such instances, we will
instruct CBP to liquidate unreviewed entries at the All-Others rate if
there is no rate for the intermediate company(ies) involved in the
transaction.
Revocation of the Order - Cash Deposits Not Required
On March 15, 2006, the United States International Trade Commission
(ITC) determined that the revocation of the antidumping duty orders on
structural steel beams from Korea would not likely lead to continuation
or recurrence of material injury to an industry in the United States
within a reasonably foreseeable time. Consequently, the Department has
revoked this order, effective August 18, 2005. See Revocation of
Antidumping and Countervailing Duty Orders: Structural Steel Beams from
Japan and South Korea, 71 FR 15375 (March 28, 2006). Therefore, there
will be no need to issue new cash deposit instructions for this
administrative review.
Notification to Importers
This notice also serves as a preliminary reminder to importers of
their responsibility under 19 CFR 351.402(f) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this review period. Failure to comply
with this requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
We are issuing and publishing this notice in accordance with
sections 751(a)(1) and 777(i)(1) of the Tariff Act.
Dated: August 31, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E6-14848 Filed 9-6-06; 8:45 am]
BILLING CODE 3510-DS-S