Notice of Preliminary Results of New Shipper Review of the Antidumping Duty Order on Certain Steel Concrete Reinforcing Bars from Turkey, 51598-51602 [E7-17758]
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51598
Federal Register / Vol. 72, No. 174 / Monday, September 10, 2007 / Notices
Dated: September 4, 2007.
David M. Spooner,
Assistant Secretary for Import
Administration.
APPENDIX I
List of Comments in the Decision
Memorandum
General Comments
Comment 1: Application of Review–
Specific Rate to Non–Reviewed
Companies
Comment 2: Treatment of Sales Made
Above Normal Value
Comments Relating to Bhansali Bright
Bars Pvt. Ltd.
Comment 3: Treatment of DEPB
Application Charges
Comment 4: Comment on Verification:
Correct Payment Date
Comment 5: Comment on Verification:
Correct Gross Unit Price
Comment 6: Inclusion of Implied
Interest on Non–Interest Bearing Loans
Comment 7: Calculation of Home
Market Imputed Credit Expenses
Comment 8: Treatment of Billing
Adjustments
Comments Relating to Venus Wire
Industries Pvt. Ltd.
Comment 9: Calculation of Home
Market Imputed Credit Expenses
[FR Doc. E7–17749 Filed 9–7–07; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
A–489–807
Notice of Preliminary Results of New
Shipper Review of the Antidumping
Duty Order on Certain Steel Concrete
Reinforcing Bars from Turkey
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request by
Ege Celik Endustrisi Sanayi ve Ticaret
A.S., a producer of subject merchandise,
and its affiliated export trading
company, Ege Dis Ticaret A.S.
(collectively ‘‘Ege Celik’’), the
Department of Commerce (the
Department) is conducting a new
shipper review of the antidumping duty
order on certain steel concrete
reinforcing bars (rebar) from Turkey for
the period April 1, 2006, through
September 30, 2006. We preliminarily
determine that, during the period of
review (POR), Ege Celik did not sell the
subject merchandise at less than normal
value (NV). If the preliminary results are
ebenthall on PRODPC61 with NOTICES
AGENCY:
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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 covered by this
review if the importer–specific
assessment rate calculated in the final
results of this review is above de
minimis (i.e., at or above 0.50 percent).
Interested parties are invited to
comment on these preliminary results.
The final results will issued 90 days
after the date of issuance of these
preliminary results, unless extended.
EFFECTIVE DATE: September 10, 2007.
FOR FURTHER INFORMATION CONTACT: Irina
Itkin, AD/CVD Operations, Office 2,
Import Administration, International
Trade Administration, U.S. Department
of Commerce, 14th Street and
Constitution Avenue, NW, Washington,
DC 20230; telephone: (202) 482–0656.
SUPPLEMENTARY INFORMATION:
Background
On October 6, 2006, in accordance
with 19 CFR 351.214(c), the Department
received a timely request from Ege Celik
for a new shipper review of the
antidumping duty order on rebar from
Turkey. On November 7, 2006, the
Department found that the request for
review with respect to Ege Celik met all
of the regulatory requirements set forth
in 19 CFR 351.214(b) and initiated an
antidumping duty new shipper review
covering the period April 1, 2006,
through September 30, 2006. See Notice
of Initiation of New Shipper
Antidumping Duty Review: Certain Steel
Concrete Reinforcing Bars from Turkey,
71 FR 66503 (Nov. 15, 2006).
We issued the antidumping duty
questionnaire to Ege Celik in November
2006. Ege Celik submitted a response to
this questionnaire in December 2006. In
January 2007, we issued a supplemental
questionnaire to Ege Celik. Ege Celik
responded to this supplemental
questionnaire in the same month.
Also in January 2007, the domestic
interested parties requested that the
Department initiate a sales–below-cost
investigation of Ege Celik. After
analyzing this request, we initiated a
sales–below-cost investigation for Ege
Celik in February 2007. See the
Memorandum to James Maeder from
The Team entitled, ‘‘Petitioners’
Allegation of Sales Below the Cost of
Production for Ege Celik Endustrisi
Sanayi Ve Ticaret A.S. and Ege Dis
Ticaret A.S. (Ege Celik Cost Allegation
Memo), dated February 26, 2007.
In February 2007, the domestic
interested parties alleged that Ege Celik
was engaged in anti–competitive
practices in the home and U.S. markets
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during the POR, as evidenced by a 2005
finding by the Turkish Government
Competition Board (Competition Board).
As a result, the domestic industry
requested that the Department
determine that Ege Celik is affiliated
with all Turkish rebar producers named
in the Competition Board report and
rescind the new shipper review for it on
the basis of this affiliation finding. In
February and March 2007, we received
comments from Ege Celik on these
allegations, as well as reply comments
from the domestic industry. For further
discussion, see the ‘‘Turkish
Government Competition Board
Finding’’ section below.
In March 2007, the Department
published an extension of the time
period for issuing the preliminary
results of this review by an additional
120 days, or until September 4, 2007, in
accordance with section 751(a)(2)(B)(iv)
of the Tariff Act of 1930, as amended
(the Act), and 19 CFR 351.214(i)(2). See
Certain Steel Concrete Reinforcing Bars
from Turkey; Notice of Extension of
Time Limit for Preliminary Results of
Antidumping Duty New Shipper Review,
72 FR 13747 (Mar. 23, 2007).
Also in March 2007, we issued an
additional supplemental questionnaire
to Ege Celik. Ege Celik submitted a
response to this questionnaire, as well
as a response to the cost of production
(COP) questionnaire, in April 2007.
In April 2007, the domestic interested
parties submitted a second report by the
Competition Board, which they allege:
1) demonstrates that several rebar
producers/exporters were engaged in
close supplier relationships; and 2)
should be relied upon by the
Department to make a finding that Ege
Celik and other rebar producers/
exporters are affiliated.
We issued supplemental COP
questionnaires in May and June 2007
and received responses in June 2007.
Sales and cost verifications of Ege
Celik were conducted in June and July
2007.
Scope of the Order
The product covered by this order is
all stock deformed steel concrete
reinforcing bars sold in straight lengths
and coils. This includes all hot–rolled
deformed rebar rolled from billet steel,
rail steel, axle steel, or low–alloy steel.
It excludes (i) plain round rebar, (ii)
rebar that a processor has further
worked or fabricated, and (iii) all coated
rebar. Deformed rebar is currently
classifiable under subheadings
7213.10.000 and 7214.20.000 of the
Harmonized Tariff Schedule of the
United States (HTSUS). The HTSUS
subheadings are provided for
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convenience and customs purposes. The
written description of the scope of this
proceeding is dispositive.
Period of Review
The POR is April 1, 2006, through
September 30, 2006.
ebenthall on PRODPC61 with NOTICES
Bona Fide Sale Analysis
For the reasons stated below, we
preliminarily find that Ege Celik’s
reported U.S. sale during the POR is a
bona fide sale, as required by 19 CFR
351.214(b)(2)(iv)(c), based on the totality
of the facts on the record. Specifically,
we find that the price reported for Ege
Celik’s rebar sale was similar to the
average unit value of U.S. imports of
comparable rebar from Turkey during
the POR. We also find that the quantity
of the sale was within the range of
shipment sizes of comparable goods
exported from Turkey during the POR.
See the Memorandum from Brianne
Riker to the File entitled, ‘‘Placing
Information from the 2005–2006
Administrative Review on Rebar from
Turkey on the Record of the New
Shipper Review on Rebar from Turkey
for Ege Celik Endustrisi Sanayi ve
Ticaret A.S./Ege Dis Ticaret A.S.,’’ dated
July 13, 2007. Finally, we considered
whether the importer involved in this
transaction is an actual commercial
entity, and we found no reason to doubt
the legitimacy of the importing party
involved in this new shipper review.
See the Memorandum to James Maeder
from Irina Itkin entitled, ‘‘Analysis of
Ege Celik Endustrisi Sanayi ve Ticaret
A.S./Ege Dis Ticaret A.S.’s Bona Fides
As A New Shipper in the New Shipper
Review of Certain Steel Concrete
Reinforcing Bars from Turkey,’’ dated
September 4, 2007, for further
discussion of our price and quantity
analysis.
Therefore, for the reasons mentioned
above, the Department preliminarily
finds that Ege Celik’s sole U.S. sale
during the POR was a bona fide
commercial transaction.
Turkish Government Competition
Board Finding
On February 1, 2007, the domestic
interested parties submitted a report by
the Turkish Government Competition
Board regarding the Turkish steel
industry. The domestic interested
parties argue that this report
demonstrates that Ege Celik engaged in
anti–competitive behavior prior to and
during the POR by colluding with other
rebar producers/exporters to manipulate
home market and export prices and to
suppress costs. The domestic interested
parties assert that the Department
should collapse all Turkish rebar
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producers into a single entity and find
that Ege Celik does not qualify as a new
shipper because of affiliation with other
rebar producers/exporters. The domestic
interested parties further contend that
the Department should, as a result,
rescind the initiation of the new shipper
review for Ege Celik. However, in the
event that the Department continues to
conduct this new shipper review, the
domestic interested parties argue that
the Department should find that a
particular market situation, a fictitious
market, or sales outside the course of
ordinary trade exist and not use home
market sales as a basis for NV.
In addition, on April 9, 2007, the
domestic interested parties submitted a
second report by the Competition Board,
which they allege: 1) demonstrates that
several rebar producers/exporters were
engaged in close supplier relationships;
and 2) should be relied upon by the
Department to make a finding that Ege
Celik and other rebar producers/
exporters are affiliated.
Ege Celik has objected to the
Department’s acceptance of these
submissions because: 1) it is
inappropriate to consider antitrust
findings in the context of an
antidumping duty proceeding; 2) the
Competition Board’s ruling is not final,
as it is under appeal in the Turkish
judicial system; and 3) the Competition
Board’s decision and evidence should
not be considered in the current POR
because it relates to a prior period of
time. Ege Celik did not submit
arguments regarding the domestic
interested parties’ April 9, 2007,
submission.
We have not relied on the evidence or
conclusions in the Board’s report as the
basis for any findings in this review.
Rather, we have investigated whether
the facts during the POR would cause us
to dismiss reported home market prices
or costs within the confines of U.S.
antidumping duty law and regulations.
Based on Ege Celik’s responses to our
questions on this topic and our
verification of these responses, as well
as our findings with respect to the
content, and context, of meetings held
by the Turkish Iron and Steel Producers’
Association during the POR, we have
preliminarily concluded that: 1) Ege
Celik is not affiliated with other
producers of rebar and is therefore
entitled to this new shipper review; and
2) there is no evidence that Ege Celik’s
home market sales prices were not
competitively set during the POR, and
as such these prices are useable for
purposes of our margin analysis. For
further discussion, see the August 31,
2007, Memorandum from Shawn
Thompson, Irina Itkin, and Brianne
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51599
Riker to David M. Spooner, entitled
‘‘Preliminary Finding on Issues Related
to the Turkish Government Competition
Board’s Reports in Certain Steel
Concrete Reinforcing Bars from Turkey’’
and the July 9, 2007, Memorandum to
the File from Irina Itkin and Nichole
Zink entitled ‘‘Verification of the Sales
Response of Ege Celik Endustrisi Sanayi
Ve Ticaret A.S./Ege Dis Ticaret A.S. (Ege
Celik) in the Antidumping Duty New
Shipper Review of Certain Concrete
Steel Reinforcing Bars from Turkey.’’
Comparisons to Normal Value
To determine whether Ege Celik’s sale
of rebar from Turkey was made in the
United States at less than NV, we
compared the export price (EP) to the
NV, as described in the ‘‘Normal Value’’
section of this notice. When making this
comparison in accordance with section
771(16) of the Act, we considered all
products sold in the home market as
described in the ‘‘Scope of the Order’’
section of this notice, above, that were
in the ordinary course of trade for
purposes of determining an appropriate
product comparison to the U.S. sale.
Where there were no sales of identical
merchandise in the home market made
in the ordinary course of trade, we
compared the U.S. sale to sales of the
most similar foreign like product made
in the ordinary course of trade based on
the characteristics listed in sections B
and C of our antidumping
questionnaire.
Product Comparisons
In accordance with section 771(16) of
the Act, we first attempted to compare
products produced by Ege Celik and
sold in the U.S. and home markets that
were identical with respect to the
following characteristics: form, grade,
size, and industry standard
specification. Where there were no
home market sales of foreign like
product that were identical in these
respects to the merchandise sold in the
United States, we compared U.S.
products with the most similar
merchandise sold in the home market
based on the characteristics listed
above, in that order of priority.
Export Price
We used EP methodology for Ege
Celik’s U.S. sale, in accordance with
section 772(a) of the Act, because the
subject merchandise was sold directly to
the first unaffiliated purchaser in the
United States prior to importation, and
constructed export price methodology
was not otherwise warranted based on
the facts of record.
Regarding U.S. date of sale, Ege Celik
argued that we should use contract date
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as the date of sale for its U.S. sale. The
Department’s regulations at 19 CFR
351.401(i) state that the Department will
normally use the date of invoice as the
date of sale, unless a different date
better reflects the date on which the
material terms of sale are established.
We have analyzed the data on the record
and preliminarily find that the material
terms of sale were set at the contract
date, given that the terms did not
change prior to invoicing. Further,
because this is the first time that the
Department is conducting a review of
Ege Celik, there is no prior evidence on
the record that the terms of sale were
changeable after the contract date.
Therefore, in accordance with our
practice, we preliminarily find that the
appropriate U.S. date of sale is the
contract date. See Certain Steel Concrete
Reinforcing Bars from Turkey;
Preliminary Results and Partial
Rescission of Antidumping Duty
Administrative Review, 71 FR 26455,
26458 (May 5, 2006) (04–05 Preliminary
Results), unchanged in the final results.
We based EP on the packed price to
the first unaffiliated purchaser in the
United States. We made deductions
from the starting price for foreign inland
freight expenses, foreign brokerage and
handling expenses, inspection fees,
ocean freight expenses (offset by freight
commission revenue), U.S. customs
duties, U.S. brokerage and handling
expenses, and customs bond fees, in
accordance with section 772(c)(2)(A) of
the Act. Additionally, we added to the
starting price an amount for duty
drawback pursuant to section
772(c)(1)(B) of the Act.
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Normal Value
A. Home Market Viability and Selection
of Comparison Markets
In order 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 five percent or
more of the aggregate volume of U.S.
sales), we compared the volume of Ege
Celik’s home market sales of the foreign
like product to the volume of its U.S.
sale of subject merchandise, in
accordance with section 773(a)(1)(C) of
the Act. Based on this comparison, we
determined that Ege Celik had a viable
home market during the POR.
Consequently, we based NV on home
market sales.
In accordance with our practice, we
excluded home market sales of non–
prime merchandise made by Ege Celik
during the POR from our preliminary
analysis based on the limited quantity of
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15:27 Sep 07, 2007
Jkt 211001
such sales in the home market and the
fact that no such sales were made to the
United States during the POR. See, e.g.,
04–05 Preliminary Results, 71 FR at
26459, unchanged in the final results;
Certain Steel Concrete Reinforcing Bars
from Turkey; Preliminary Results and
Partial Rescission of Antidumping Duty
Administrative Review and Notice of
Intent To Revoke in Part, 70 FR 23990,
23993 (May 6, 2005), unchanged in the
final results; Certain Steel Concrete
Reinforcing Bars From Turkey;
Preliminary Results and Partial
Rescission of Antidumping Duty
Administrative Review and Notice of
Intent Not To Revoke in Part, 69 FR
25066, 25066 (May 5, 2004), unchanged
in the final results; and Certain Steel
Concrete Reinforcing Bars from Turkey;
Preliminary Results of Antidumping
Duty Administrative Review and Notice
of Intent Not to Revoke in Part, 68 FR
23972 (May 6, 2003), unchanged in the
final results.
4) We adjusted the denominator of the
G&A and financial expense
calculations to exclude packing
expenses which had been reported
in the home market and U.S. sales
listings.
5) We revised the financial expense
ratio based on the fiscal year 2006
audited consolidated financial
statements.
For further discussion, see the
Memorandum from Trinette Boyd to
Neal Halper entitled, ‘‘Cost of
Production and Constructed Value
Calculation Adjustments for the
Preliminary Results in the New Shipper
Review—Ege Celik Endustrisi Sanayi ve
Ticaret A.S./Ege Dis Ticaret A.S.,’’ dated
September 4, 2007.
B. Cost of Production Analysis
Pursuant to section 773(b)(2)(A)(i) of
the Act, there were reasonable grounds
to believe or suspect that Ege Celik
made home market sales at prices below
its COP in this review because of
information contained in the cost
allegation properly filed by the domestic
interested parties. As a result, the
Department initiated an investigation to
determine whether Ege Celik made
home market sales during the POR at
prices below its COP. See the ‘‘Ege Celik
Cost Allegation Memo.’’
2. Test of Home Market Sales Prices
We compared the weighted–average
COP figures to home market prices of
the foreign like product, as required
under section 773(b) of the Act, to
determine whether these sales had been
made at prices below the COP. On a
product–specific basis, we compared
the COP to home market prices, less any
applicable movement charges, selling
expenses, and packing expenses.
In determining whether to disregard
home market sales made at prices below
the COP, we examined whether such
sales were made: 1) in substantial
quantities within an extended period of
time; and 2) at prices which permitted
the recovery of all costs within a
reasonable period of time. See sections
773(b)(1)(A) and (B) of the Act.
1. Calculation of COP
In accordance with section 773(b)(3)
of the Act, we calculated COP based on
the sum of Ege Celik’s cost of materials
and fabrication for the foreign like
product, plus amounts for general and
administrative (G&A) expenses and
interest expenses. See the ‘‘Test of
Home Market Sales Prices’’ section
below for treatment of home market
selling expenses.
We relied on the COP information
provided by Ege Celik in its
questionnaire responses, except for the
following instances where the
information was not appropriately
quantified or valued:
1) We disallowed an adjustment to the
total cost of manufacturing for
packing materials that had been
returned to the warehouse.
2) We added an amount for duty
drawback to the total cost of
manufacturing.
3) We adjusted the numerator of the
G&A expense calculation to include
the revenue from the sale of fixed
assets.
3. Results of the COP Test
Pursuant to section 773(b)(2)(C)(i) of
the Act, where less than 20 percent of
Ege Celik’s sales of a given product were
at prices less than the COP, we did not
disregard any below–cost sales of that
product because we determined that the
below–cost sales were not made in
‘‘substantial quantities.’’ Where 20
percent or more of Ege Celik’s sales of
a given product were at prices below the
COP, we determined that sales of that
model were made in ‘‘substantial
quantities’’ within an extended period
of time (as defined in section
773(b)(2)(B) of the Act), in accordance
with section 773(b)(2)(C)(i) of the Act. In
such cases, we also determined that
such sales were not made at prices
which would permit recovery of all
costs within a reasonable period of time,
in accordance with section 773(b)(2)(D)
of the Act. Therefore, for purposes of
this new shipper review, we disregarded
these below–cost sales for Ege Celik and
used the remaining sales as the basis for
determining NV, in accordance with
section 773(a)(1) of the Act.
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C. Level of Trade
In accordance with section
773(a)(1)(B) of the Act, to the extent
practicable, we determine NV based on
sales in the comparison market at the
same level of trade (LOT) as EP. The NV
LOT is that of the starting–price sales in
the comparison market or, when NV is
based on constructed value, that of the
sales from which we derive selling
expenses, G&A expenses, and profit. For
EP, the U.S. LOT is also the level of the
starting–price sale, which is usually
from the exporter to the unaffiliated
U.S. customer.
To determine whether NV sales are at
a different LOT than EP sales, we
examine stages in the marketing process
and selling functions along the chain of
distribution between the producer and
the unaffiliated customer. If the
comparison–market sales are at a
different LOT and the difference affects
price comparability, as manifested in a
pattern of consistent price differences
between the sales on which NV is based
and comparison–market sales at the
LOT of the export transaction, we make
an LOT adjustment under section
773(a)(7)(A) of the Act.
Ege Celik claimed that it sold rebar at
a single LOT in its home and U.S.
markets. Specifically, Ege Celik reported
that it only made sales to one customer
category (i.e., trading companies)
through one channel of distribution in
the home market and identical selling
functions were performed for all sales.
After analyzing the data on the record
with respect to these functions, we find
that the Ege Celik made all sales at a
single marketing stage (i.e., one LOT) in
the home market. Further, because Ege
Celik only reported one U.S. sale during
the POR, we find that there is a single
marketing stage (i.e., one LOT) in the
U.S. market.
Although Ege Celik provided certain
additional services related to freight and
brokerage and handling for its U.S. sale
and not home market sales, we did not
find these differences to be material
selling function distinctions significant
enough to warrant a separate LOT.
Therefore, we find that the home market
sales and U.S. sales were made at the
same LOT. Accordingly, we determined
that no LOT adjustment is warranted.
ebenthall on PRODPC61 with NOTICES
D. Calculation of Normal Value
We based NV on the starting prices to
home market customers. Pursuant to
section 773(a)(6)(C)(iii) of the Act and
19 CFR 351.410(b), we made
circumstance–of-sale adjustments for
exporter association fees, bank charges,
and credit expenses. We deducted home
market packing costs and added U.S.
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Jkt 211001
packing costs, in accordance with
section 773(a)(6) of the Act.
Where appropriate, we made an
adjustment to NV to account for
differences in physical characteristics of
the merchandise, in accordance with
section 773(a)(6)(C)(ii) of the Act and 19
CFR 351.411(a). We based this
adjustment on the difference in the
variable costs of manufacturing for the
foreign like product and subject
merchandise. See 19 CFR 351.411(b).
51601
party’s name, address and telephone
number; 2) the number of participants;
and 3) a list of issues to be discussed.
See 19 CFR 351.310(c). Issues raised in
the hearing will be limited to those
raised in the respective case briefs. The
Department will issue the final results
of this review, including the results of
its analysis of issues raised in any
written briefs, within 90 days of
publication of these preliminary results.
Assessment Rate
Currency Conversion
Upon completion of the new shipper
review, the Department shall determine,
and CBP shall assess, antidumping
duties on all appropriate entries, in
accordance with 19 CFR 351.212. The
Department intends to issue
appraisement instructions for Ege Celik
directly to CBP 15 days after the date of
publication of the final results of this
new shipper review.
Pursuant to 19 CFR 351.212(b)(1),
because we have the reported entered
value of Ege Celik’s U.S. sale, we have
calculated an importer–specific
Preliminary Results of New Shipper
assessment rate based on the ratio of the
Review
total amount of antidumping duties
As a result of our review, we
calculated for the examined sale to the
preliminarily determine that the
total entered value of that sale. We will
following percentage margin exists for
instruct CBP to assess antidumping
Ege Celik for the period April 1, 2006,
duties on all appropriate entries covered
through September 30, 2006:
by this review if the importer–specific
assessment rate calculated in the final
Margin
results of this review is above de
Manufacturer/Producer/Exporter
Percentminimis (i.e., at or above 0.50 percent).
age
Pursuant to 19 CFR 351.106(c)(2), we
Ege Celik Endustrisi Sanayi ve
will instruct CBP to liquidate without
Ticaret A.S./Ege Dis Ticaret
regard to antidumping duties any
A.S. .........................................
0.00 entries for which the assessment rate is
de minimis (i.e., less than 0.50 percent).
Disclosure and Public Hearing
See 19 CFR 351.106(c)(1).
The final results of this review shall
The Department will disclose to
be the basis for the assessment of
parties the calculations performed in
antidumping duties on entries of
connection with these preliminary
merchandise covered by the final results
results within five days of the date of
of this review and for future deposits of
publication of this notice. See 19 CFR
351.224(b). Pursuant to 19 CFR 351.309, estimated duties, where applicable.
interested parties may submit cases
The Department clarified its
briefs not later than 30 days after the
‘‘automatic assessment’’ regulation on
date of publication of this notice.
May 6, 2003 (68 FR 23954). This
Rebuttal briefs, limited to issues raised
clarification applies to entries of subject
in the case briefs, may be filed not later
merchandise during the POR produced
than 5 days after the deadline for filing
by companies included in these
the case briefs. Parties who submit case
preliminary results of review for which
briefs or rebuttal briefs in this
the reviewed companies did not know
proceeding are requested to submit with their merchandise was destined for the
each argument: 1) a statement of the
United States. In such instances, we will
issue; 2) a brief summary of the
instruct CBP to liquidate unreviewed
argument; and 3) a table of authorities.
entries at the All–Others rate if there is
Interested parties who wish to request no rate for the intermediate
a hearing or to participate if one is
company(ies) involved in the
requested must submit a written request transaction. For a full discussion of this
to the Assistant Secretary for Import
clarification, see Antidumping and
Administration, Room B–099, within 30 Countervailing Duty Proceedings:
days of the date of publication of this
Assessment of Antidumping Duties, 68
notice. Requests should contain: 1) the
FR 23954 (May 6, 2003).
We made currency conversions into
U.S. dollars pursuant to section 773A(a)
of the Act and 19 CFR 351.415.
Although the Department’s preferred
source for daily exchange rates is the
Federal Reserve Bank, the Federal
Reserve Bank does not track or publish
exchange rates for the New Turkish Lira.
Therefore, we made currency
conversions based on exchange rates
from the Dow Jones Reuters Business
Interactive LLC (trading as Factiva).
PO 00000
Frm 00020
Fmt 4703
Sfmt 4703
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10SEN1
51602
Federal Register / Vol. 72, No. 174 / Monday, September 10, 2007 / Notices
DEPARTMENT OF COMMERCE
The following cash deposit
requirements will be effective for all
shipments of the subject merchandise
entered, or withdrawn from warehouse,
for consumption on or after the
publication date of the final results of
the new shipper review, as provided by
section 751(a)(2)(C) of the Act: 1) the
cash deposit rate for Ege Celik (i.e., for
subject merchandise both manufactured
and exported by Ege Celik) will be that
established in the final results of this
review, except if the rate is less than
0.50 percent, and therefore, de minimis
within the meaning of 19 CFR
351.106(c)(1), in which case the cash
deposit rate will be zero; 2) for
previously reviewed or investigated
companies not participating in this
review, the cash deposit rate will
continue to be the company–specific
rate published for the most recent
period; 3) if the exporter is not a firm
covered in these reviews or the original
less–than-fair–value (LTFV)
investigation, but the manufacturer is,
the cash deposit rate will be the rate
established for the most recent period
for the manufacturer of the
merchandise; and 4) the cash deposit
rate for all other manufacturers or
exporters will continue to be 16.06
percent, the All–Others rate established
in the LTFV investigation. These
requirements, when imposed, shall
remain in effect until further notice.
International Trade Administration
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 from the Republic of Korea
(Korea) for the period of review (POR)
January 1, 2005, through December 31,
2005. For information on the net
subsidy for each of the reviewed
companies, see the ‘‘Preliminary Results
of Review’’ section of this notice.
Interested parties are invited to
comment on these preliminary results.
(See the ‘‘Public Comment’’ section of
this notice).
EFFECTIVE DATE: September 10, 2007.
FOR FURTHER INFORMATION CONTACT:
Robert Copyak or Gayle Longest, AD/
CVD Operations, Office 3, Import
Administration, U.S. Department of
Commerce, Room 4014, 14th Street and
Constitution Avenue, NW, Washington,
DC 20230; telephone: (202) 482–2209 or
(202) 482–3338, respectively.
SUPPLEMENTARY INFORMATION:
Notification to Importers
Background
This notice serves as a preliminary
reminder to importers of their
responsibility under 19 CFR
351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
of the relevant entries during this
review period. Failure to comply with
this requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of double antidumping duties.
This new shipper review is issued
and published in accordance with
sections 751(a)(2)(B)(iv) and 777(i)(1) of
the Act, as well as 19 CFR 351.214(i).
ebenthall on PRODPC61 with NOTICES
Cash Deposit Requirements
On August 17, 1993, the Department
published in the Federal Register the
CVD order on corrosion–resistant
carbon steel flat products from Korea.
See Countervailing Duty Orders and
Amendments to Final Affirmative
Countervailing Duty Determinations:
Certain Steel Products from Korea, 58
FR 43752 (August 17, 1993). On August
1, 2006, 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, 71 FR 43441
(August 1, 2006). On August 31, 2006,
we received a timely request for review
from Pohang Iron and Steel Co. Ltd.
(POSCO) and Dongbu Steel Co., Ltd.
(Dongbu). On September 29, 2006, the
Department published a notice of
initiation of the administrative review of
the CVD order on corrosion–resistant
carbon steel flat products from Korea
covering the POR January 1, 2005,
through December 31, 2005. See
Dated: September 4, 2007.
David M. Spooner,
Assistant Secretary for Import
Administration.
[FR Doc. E7–17758 Filed 9–7–07; 8:45 am]
BILLING CODE 3510–DS–S
VerDate Aug<31>2005
15:27 Sep 07, 2007
Jkt 211001
(C–580–818)
Corrosion–Resistant Carbon Steel Flat
Products from the Republic of Korea:
Preliminary Results of Countervailing
Duty Administrative Review
AGENCY:
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Frm 00021
Fmt 4703
Sfmt 4703
Initiation of Antidumping and
Countervailing Duty Administrative
Reviews, 71 FR 57465 (September 29,
2006). On October 16, 2006, the
Department sent its initial questionnaire
to POSCO, Dongbu, and the Government
of Korea (GOK). On December 21, 2006,
the Department received questionnaire
responses from POSCO, Pohang Steel
Co., Ltd. (POCOS, a production affiliate
of POSCO), POSCO Steel Service &
Sales Co., Ltd. (POSTEEL, a trading
company for POSCO),1 Dongbu, and the
GOK. On March 30, 2007, we issued
supplemental questionnaires to POSCO
and the GOK. On April 16, 2007, we
received the responses to these
supplemental questionnaires.
On May 9, 2007, the Department
published in the Federal Register a
notice of extension of the time period
for issuing the preliminary results. See
Corrosion–Resistant Carbon Steel Flat
Products from the Republic of Korea:
Extension of Time Limit for Preliminary
Results of Countervailing Duty
Administrative Review, 72 FR 26338
(May 9, 2007).
In accordance with 19 CFR
351.213(b), this review covers only
those producers or exporters for which
a review was specifically requested. The
companies subject to this review are
POSCO (and its affiliates POCOS and
POSTEEL) and Dongbu.
Affiliated Companies
In the present administrative review,
record evidence indicates that POCOS is
a majority–owned production affiliate of
POSCO. Under 19 CFR
351.525(b)(6)(iii), if the firm that
received a subsidy is a holding
company, including a parent company
with its own operations, the Department
will attribute the subsidy to the
consolidated sales of the holding
company and its subsidiaries. Thus, we
attributed subsidies received by POCOS
to POSCO and its subsidiaries, net of
intra–company sales. Dongbu reported
that it is the only member of the Dongbu
group in Korea that was involved with
the sale of subject merchandise to the
United States.
Scope of Order
Products covered by this order are
certain corrosion–resistant carbon steel
flat products from Korea. These
products include flat–rolled carbon steel
products, of rectangular shape, either
clad, plated, or coated with corrosion–
resistant metals such as zinc, aluminum,
or zinc-, aluminum-, nickel- or iron–
1 In these preliminary results, unless otherwise
stated, we use POSCO to collectively refer to
POSCO, POCOS, and POSTEEL.
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]]>Agencies
[Federal Register Volume 72, Number 174 (Monday, September 10, 2007)]
[Notices]
[Pages 51598-51602]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-17758]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
A-489-807
Notice of Preliminary Results of New Shipper Review of the
Antidumping Duty Order on Certain Steel Concrete Reinforcing Bars from
Turkey
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request by Ege Celik Endustrisi Sanayi ve
Ticaret A.S., a producer of subject merchandise, and its affiliated
export trading company, Ege Dis Ticaret A.S. (collectively ``Ege
Celik''), the Department of Commerce (the Department) is conducting a
new shipper review of the antidumping duty order on certain steel
concrete reinforcing bars (rebar) from Turkey for the period April 1,
2006, through September 30, 2006. We preliminarily determine that,
during the period of review (POR), Ege Celik did not sell the subject
merchandise at less than normal value (NV). If the 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 covered by this review if the
importer-specific assessment rate calculated in the final results of
this review is above de minimis (i.e., at or above 0.50 percent).
Interested parties are invited to comment on these preliminary
results. The final results will issued 90 days after the date of
issuance of these preliminary results, unless extended.
EFFECTIVE DATE: September 10, 2007.
FOR FURTHER INFORMATION CONTACT: Irina Itkin, AD/CVD Operations, Office
2, Import Administration, International Trade Administration, U.S.
Department of Commerce, 14th Street and Constitution Avenue, NW,
Washington, DC 20230; telephone: (202) 482-0656.
SUPPLEMENTARY INFORMATION:
Background
On October 6, 2006, in accordance with 19 CFR 351.214(c), the
Department received a timely request from Ege Celik for a new shipper
review of the antidumping duty order on rebar from Turkey. On November
7, 2006, the Department found that the request for review with respect
to Ege Celik met all of the regulatory requirements set forth in 19 CFR
351.214(b) and initiated an antidumping duty new shipper review
covering the period April 1, 2006, through September 30, 2006. See
Notice of Initiation of New Shipper Antidumping Duty Review: Certain
Steel Concrete Reinforcing Bars from Turkey, 71 FR 66503 (Nov. 15,
2006).
We issued the antidumping duty questionnaire to Ege Celik in
November 2006. Ege Celik submitted a response to this questionnaire in
December 2006. In January 2007, we issued a supplemental questionnaire
to Ege Celik. Ege Celik responded to this supplemental questionnaire in
the same month.
Also in January 2007, the domestic interested parties requested
that the Department initiate a sales-below-cost investigation of Ege
Celik. After analyzing this request, we initiated a sales-below-cost
investigation for Ege Celik in February 2007. See the Memorandum to
James Maeder from The Team entitled, ``Petitioners' Allegation of Sales
Below the Cost of Production for Ege Celik Endustrisi Sanayi Ve Ticaret
A.S. and Ege Dis Ticaret A.S. (Ege Celik Cost Allegation Memo), dated
February 26, 2007.
In February 2007, the domestic interested parties alleged that Ege
Celik was engaged in anti-competitive practices in the home and U.S.
markets during the POR, as evidenced by a 2005 finding by the Turkish
Government Competition Board (Competition Board). As a result, the
domestic industry requested that the Department determine that Ege
Celik is affiliated with all Turkish rebar producers named in the
Competition Board report and rescind the new shipper review for it on
the basis of this affiliation finding. In February and March 2007, we
received comments from Ege Celik on these allegations, as well as reply
comments from the domestic industry. For further discussion, see the
``Turkish Government Competition Board Finding'' section below.
In March 2007, the Department published an extension of the time
period for issuing the preliminary results of this review by an
additional 120 days, or until September 4, 2007, in accordance with
section 751(a)(2)(B)(iv) of the Tariff Act of 1930, as amended (the
Act), and 19 CFR 351.214(i)(2). See Certain Steel Concrete Reinforcing
Bars from Turkey; Notice of Extension of Time Limit for Preliminary
Results of Antidumping Duty New Shipper Review, 72 FR 13747 (Mar. 23,
2007).
Also in March 2007, we issued an additional supplemental
questionnaire to Ege Celik. Ege Celik submitted a response to this
questionnaire, as well as a response to the cost of production (COP)
questionnaire, in April 2007.
In April 2007, the domestic interested parties submitted a second
report by the Competition Board, which they allege: 1) demonstrates
that several rebar producers/exporters were engaged in close supplier
relationships; and 2) should be relied upon by the Department to make a
finding that Ege Celik and other rebar producers/exporters are
affiliated.
We issued supplemental COP questionnaires in May and June 2007 and
received responses in June 2007.
Sales and cost verifications of Ege Celik were conducted in June
and July 2007.
Scope of the Order
The product covered by this order is all stock deformed steel
concrete reinforcing bars sold in straight lengths and coils. This
includes all hot-rolled deformed rebar rolled from billet steel, rail
steel, axle steel, or low-alloy steel. It excludes (i) plain round
rebar, (ii) rebar that a processor has further worked or fabricated,
and (iii) all coated rebar. Deformed rebar is currently classifiable
under subheadings 7213.10.000 and 7214.20.000 of the Harmonized Tariff
Schedule of the United States (HTSUS). The HTSUS subheadings are
provided for
[[Page 51599]]
convenience and customs purposes. The written description of the scope
of this proceeding is dispositive.
Period of Review
The POR is April 1, 2006, through September 30, 2006.
Bona Fide Sale Analysis
For the reasons stated below, we preliminarily find that Ege
Celik's reported U.S. sale during the POR is a bona fide sale, as
required by 19 CFR 351.214(b)(2)(iv)(c), based on the totality of the
facts on the record. Specifically, we find that the price reported for
Ege Celik's rebar sale was similar to the average unit value of U.S.
imports of comparable rebar from Turkey during the POR. We also find
that the quantity of the sale was within the range of shipment sizes of
comparable goods exported from Turkey during the POR. See the
Memorandum from Brianne Riker to the File entitled, ``Placing
Information from the 2005-2006 Administrative Review on Rebar from
Turkey on the Record of the New Shipper Review on Rebar from Turkey for
Ege Celik Endustrisi Sanayi ve Ticaret A.S./Ege Dis Ticaret A.S.,''
dated July 13, 2007. Finally, we considered whether the importer
involved in this transaction is an actual commercial entity, and we
found no reason to doubt the legitimacy of the importing party involved
in this new shipper review. See the Memorandum to James Maeder from
Irina Itkin entitled, ``Analysis of Ege Celik Endustrisi Sanayi ve
Ticaret A.S./Ege Dis Ticaret A.S.'s Bona Fides As A New Shipper in the
New Shipper Review of Certain Steel Concrete Reinforcing Bars from
Turkey,'' dated September 4, 2007, for further discussion of our price
and quantity analysis.
Therefore, for the reasons mentioned above, the Department
preliminarily finds that Ege Celik's sole U.S. sale during the POR was
a bona fide commercial transaction.
Turkish Government Competition Board Finding
On February 1, 2007, the domestic interested parties submitted a
report by the Turkish Government Competition Board regarding the
Turkish steel industry. The domestic interested parties argue that this
report demonstrates that Ege Celik engaged in anti-competitive behavior
prior to and during the POR by colluding with other rebar producers/
exporters to manipulate home market and export prices and to suppress
costs. The domestic interested parties assert that the Department
should collapse all Turkish rebar producers into a single entity and
find that Ege Celik does not qualify as a new shipper because of
affiliation with other rebar producers/exporters. The domestic
interested parties further contend that the Department should, as a
result, rescind the initiation of the new shipper review for Ege Celik.
However, in the event that the Department continues to conduct this new
shipper review, the domestic interested parties argue that the
Department should find that a particular market situation, a fictitious
market, or sales outside the course of ordinary trade exist and not use
home market sales as a basis for NV.
In addition, on April 9, 2007, the domestic interested parties
submitted a second report by the Competition Board, which they allege:
1) demonstrates that several rebar producers/exporters were engaged in
close supplier relationships; and 2) should be relied upon by the
Department to make a finding that Ege Celik and other rebar producers/
exporters are affiliated.
Ege Celik has objected to the Department's acceptance of these
submissions because: 1) it is inappropriate to consider antitrust
findings in the context of an antidumping duty proceeding; 2) the
Competition Board's ruling is not final, as it is under appeal in the
Turkish judicial system; and 3) the Competition Board's decision and
evidence should not be considered in the current POR because it relates
to a prior period of time. Ege Celik did not submit arguments regarding
the domestic interested parties' April 9, 2007, submission.
We have not relied on the evidence or conclusions in the Board's
report as the basis for any findings in this review. Rather, we have
investigated whether the facts during the POR would cause us to dismiss
reported home market prices or costs within the confines of U.S.
antidumping duty law and regulations. Based on Ege Celik's responses to
our questions on this topic and our verification of these responses, as
well as our findings with respect to the content, and context, of
meetings held by the Turkish Iron and Steel Producers' Association
during the POR, we have preliminarily concluded that: 1) Ege Celik is
not affiliated with other producers of rebar and is therefore entitled
to this new shipper review; and 2) there is no evidence that Ege
Celik's home market sales prices were not competitively set during the
POR, and as such these prices are useable for purposes of our margin
analysis. For further discussion, see the August 31, 2007, Memorandum
from Shawn Thompson, Irina Itkin, and Brianne Riker to David M.
Spooner, entitled ``Preliminary Finding on Issues Related to the
Turkish Government Competition Board's Reports in Certain Steel
Concrete Reinforcing Bars from Turkey'' and the July 9, 2007,
Memorandum to the File from Irina Itkin and Nichole Zink entitled
``Verification of the Sales Response of Ege Celik Endustrisi Sanayi Ve
Ticaret A.S./Ege Dis Ticaret A.S. (Ege Celik) in the Antidumping Duty
New Shipper Review of Certain Concrete Steel Reinforcing Bars from
Turkey.''
Comparisons to Normal Value
To determine whether Ege Celik's sale of rebar from Turkey was made
in the United States at less than NV, we compared the export price (EP)
to the NV, as described in the ``Normal Value'' section of this notice.
When making this comparison in accordance with section 771(16) of the
Act, we considered all products sold in the home market as described in
the ``Scope of the Order'' section of this notice, above, that were in
the ordinary course of trade for purposes of determining an appropriate
product comparison to the U.S. sale. Where there were no sales of
identical merchandise in the home market made in the ordinary course of
trade, we compared the U.S. sale to sales of the most similar foreign
like product made in the ordinary course of trade based on the
characteristics listed in sections B and C of our antidumping
questionnaire.
Product Comparisons
In accordance with section 771(16) of the Act, we first attempted
to compare products produced by Ege Celik and sold in the U.S. and home
markets that were identical with respect to the following
characteristics: form, grade, size, and industry standard
specification. Where there were no home market sales of foreign like
product that were identical in these respects to the merchandise sold
in the United States, we compared U.S. products with the most similar
merchandise sold in the home market based on the characteristics listed
above, in that order of priority.
Export Price
We used EP methodology for Ege Celik's U.S. sale, in accordance
with section 772(a) of the Act, because the subject merchandise was
sold directly to the first unaffiliated purchaser in the United States
prior to importation, and constructed export price methodology was not
otherwise warranted based on the facts of record.
Regarding U.S. date of sale, Ege Celik argued that we should use
contract date
[[Page 51600]]
as the date of sale for its U.S. sale. The Department's regulations at
19 CFR 351.401(i) state that the Department will normally use the date
of invoice as the date of sale, unless a different date better reflects
the date on which the material terms of sale are established. We have
analyzed the data on the record and preliminarily find that the
material terms of sale were set at the contract date, given that the
terms did not change prior to invoicing. Further, because this is the
first time that the Department is conducting a review of Ege Celik,
there is no prior evidence on the record that the terms of sale were
changeable after the contract date. Therefore, in accordance with our
practice, we preliminarily find that the appropriate U.S. date of sale
is the contract date. See Certain Steel Concrete Reinforcing Bars from
Turkey; Preliminary Results and Partial Rescission of Antidumping Duty
Administrative Review, 71 FR 26455, 26458 (May 5, 2006) (04-05
Preliminary Results), unchanged in the final results.
We based EP on the packed price to the first unaffiliated purchaser
in the United States. We made deductions from the starting price for
foreign inland freight expenses, foreign brokerage and handling
expenses, inspection fees, ocean freight expenses (offset by freight
commission revenue), U.S. customs duties, U.S. brokerage and handling
expenses, and customs bond fees, in accordance with section
772(c)(2)(A) of the Act. Additionally, we added to the starting price
an amount for duty drawback pursuant to section 772(c)(1)(B) of the
Act.
Normal Value
A. Home Market Viability and Selection of Comparison Markets
In order 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 five percent or more of the aggregate volume of U.S. sales), we
compared the volume of Ege Celik's home market sales of the foreign
like product to the volume of its U.S. sale of subject merchandise, in
accordance with section 773(a)(1)(C) of the Act. Based on this
comparison, we determined that Ege Celik had a viable home market
during the POR. Consequently, we based NV on home market sales.
In accordance with our practice, we excluded home market sales of
non-prime merchandise made by Ege Celik during the POR from our
preliminary analysis based on the limited quantity of such sales in the
home market and the fact that no such sales were made to the United
States during the POR. See, e.g., 04-05 Preliminary Results, 71 FR at
26459, unchanged in the final results; Certain Steel Concrete
Reinforcing Bars from Turkey; Preliminary Results and Partial
Rescission of Antidumping Duty Administrative Review and Notice of
Intent To Revoke in Part, 70 FR 23990, 23993 (May 6, 2005), unchanged
in the final results; Certain Steel Concrete Reinforcing Bars From
Turkey; Preliminary Results and Partial Rescission of Antidumping Duty
Administrative Review and Notice of Intent Not To Revoke in Part, 69 FR
25066, 25066 (May 5, 2004), unchanged in the final results; and Certain
Steel Concrete Reinforcing Bars from Turkey; Preliminary Results of
Antidumping Duty Administrative Review and Notice of Intent Not to
Revoke in Part, 68 FR 23972 (May 6, 2003), unchanged in the final
results.
B. Cost of Production Analysis
Pursuant to section 773(b)(2)(A)(i) of the Act, there were
reasonable grounds to believe or suspect that Ege Celik made home
market sales at prices below its COP in this review because of
information contained in the cost allegation properly filed by the
domestic interested parties. As a result, the Department initiated an
investigation to determine whether Ege Celik made home market sales
during the POR at prices below its COP. See the ``Ege Celik Cost
Allegation Memo.''
1. Calculation of COP
In accordance with section 773(b)(3) of the Act, we calculated COP
based on the sum of Ege Celik's cost of materials and fabrication for
the foreign like product, plus amounts for general and administrative
(G&A) expenses and interest expenses. See the ``Test of Home Market
Sales Prices'' section below for treatment of home market selling
expenses.
We relied on the COP information provided by Ege Celik in its
questionnaire responses, except for the following instances where the
information was not appropriately quantified or valued:
1) We disallowed an adjustment to the total cost of manufacturing
for packing materials that had been returned to the warehouse.
2) We added an amount for duty drawback to the total cost of
manufacturing.
3) We adjusted the numerator of the G&A expense calculation to
include the revenue from the sale of fixed assets.
4) We adjusted the denominator of the G&A and financial expense
calculations to exclude packing expenses which had been reported in the
home market and U.S. sales listings.
5) We revised the financial expense ratio based on the fiscal year
2006 audited consolidated financial statements.
For further discussion, see the Memorandum from Trinette Boyd to Neal
Halper entitled, ``Cost of Production and Constructed Value Calculation
Adjustments for the Preliminary Results in the New Shipper Review--Ege
Celik Endustrisi Sanayi ve Ticaret A.S./Ege Dis Ticaret A.S.,'' dated
September 4, 2007.
2. Test of Home Market Sales Prices
We compared the weighted-average COP figures to home market prices
of the foreign like product, as required under section 773(b) of the
Act, to determine whether these sales had been made at prices below the
COP. On a product-specific basis, we compared the COP to home market
prices, less any applicable movement charges, selling expenses, and
packing expenses.
In determining whether to disregard home market sales made at
prices below the COP, we examined whether such sales were made: 1) in
substantial quantities within an extended period of time; and 2) at
prices which permitted the recovery of all costs within a reasonable
period of time. See sections 773(b)(1)(A) and (B) of the Act.
3. Results of the COP Test
Pursuant to section 773(b)(2)(C)(i) of the Act, where less than 20
percent of Ege Celik's sales of a given product were at prices less
than the COP, we did not disregard any below-cost sales of that product
because we determined that the below-cost sales were not made in
``substantial quantities.'' Where 20 percent or more of Ege Celik's
sales of a given product were at prices below the COP, we determined
that sales of that model were made in ``substantial quantities'' within
an extended period of time (as defined in section 773(b)(2)(B) of the
Act), in accordance with section 773(b)(2)(C)(i) of the Act. In such
cases, we also determined that such sales were not made at prices which
would permit recovery of all costs within a reasonable period of time,
in accordance with section 773(b)(2)(D) of the Act. Therefore, for
purposes of this new shipper review, we disregarded these below-cost
sales for Ege Celik and used the remaining sales as the basis for
determining NV, in accordance with section 773(a)(1) of the Act.
[[Page 51601]]
C. Level of Trade
In accordance with section 773(a)(1)(B) of the Act, to the extent
practicable, we determine NV based on sales in the comparison market at
the same level of trade (LOT) as EP. The NV LOT is that of the
starting-price sales in the comparison market or, when NV is based on
constructed value, that of the sales from which we derive selling
expenses, G&A expenses, and profit. For EP, the U.S. LOT is also the
level of the starting-price sale, which is usually from the exporter to
the unaffiliated U.S. customer.
To determine whether NV sales are at a different LOT than EP sales,
we examine stages in the marketing process and selling functions along
the chain of distribution between the producer and the unaffiliated
customer. If the comparison-market sales are at a different LOT and the
difference affects price comparability, as manifested in a pattern of
consistent price differences between the sales on which NV is based and
comparison-market sales at the LOT of the export transaction, we make
an LOT adjustment under section 773(a)(7)(A) of the Act.
Ege Celik claimed that it sold rebar at a single LOT in its home
and U.S. markets. Specifically, Ege Celik reported that it only made
sales to one customer category (i.e., trading companies) through one
channel of distribution in the home market and identical selling
functions were performed for all sales. After analyzing the data on the
record with respect to these functions, we find that the Ege Celik made
all sales at a single marketing stage (i.e., one LOT) in the home
market. Further, because Ege Celik only reported one U.S. sale during
the POR, we find that there is a single marketing stage (i.e., one LOT)
in the U.S. market.
Although Ege Celik provided certain additional services related to
freight and brokerage and handling for its U.S. sale and not home
market sales, we did not find these differences to be material selling
function distinctions significant enough to warrant a separate LOT.
Therefore, we find that the home market sales and U.S. sales were made
at the same LOT. Accordingly, we determined that no LOT adjustment is
warranted.
D. Calculation of Normal Value
We based NV on the starting prices to home market customers.
Pursuant to section 773(a)(6)(C)(iii) of the Act and 19 CFR 351.410(b),
we made circumstance-of-sale adjustments for exporter association fees,
bank charges, and credit expenses. We deducted home market packing
costs and added U.S. packing costs, in accordance with section
773(a)(6) of the Act.
Where appropriate, we made an adjustment to NV to account for
differences in physical characteristics of the merchandise, in
accordance with section 773(a)(6)(C)(ii) of the Act and 19 CFR
351.411(a). We based this adjustment on the difference in the variable
costs of manufacturing for the foreign like product and subject
merchandise. See 19 CFR 351.411(b).
Currency Conversion
We made currency conversions into U.S. dollars pursuant to section
773A(a) of the Act and 19 CFR 351.415. Although the Department's
preferred source for daily exchange rates is the Federal Reserve Bank,
the Federal Reserve Bank does not track or publish exchange rates for
the New Turkish Lira. Therefore, we made currency conversions based on
exchange rates from the Dow Jones Reuters Business Interactive LLC
(trading as Factiva).
Preliminary Results of New Shipper Review
As a result of our review, we preliminarily determine that the
following percentage margin exists for Ege Celik for the period April
1, 2006, through September 30, 2006:
------------------------------------------------------------------------
Margin
Manufacturer/Producer/Exporter Percentage
------------------------------------------------------------------------
Ege Celik Endustrisi Sanayi ve Ticaret A.S./Ege Dis Ticaret 0.00
A.S........................................................
------------------------------------------------------------------------
Disclosure and Public Hearing
The Department will disclose to parties the calculations performed
in connection with these preliminary results within five days of the
date of publication of this notice. See 19 CFR 351.224(b). Pursuant to
19 CFR 351.309, interested parties may submit cases briefs not later
than 30 days after the date of publication of this notice. Rebuttal
briefs, limited to issues raised in the case briefs, may be filed not
later than 5 days after the deadline for filing the case briefs.
Parties who submit case briefs or rebuttal briefs in this proceeding
are requested to submit with each argument: 1) a statement of the
issue; 2) a brief summary of the argument; and 3) a table of
authorities.
Interested parties who wish to request a hearing or to participate
if one is requested must submit a written request to the Assistant
Secretary for Import Administration, Room B-099, within 30 days of the
date of publication of this notice. Requests should contain: 1) the
party's name, address and telephone number; 2) the number of
participants; and 3) a list of issues to be discussed. See 19 CFR
351.310(c). Issues raised in the hearing will be limited to those
raised in the respective case briefs. The Department will issue the
final results of this review, including the results of its analysis of
issues raised in any written briefs, within 90 days of publication of
these preliminary results.
Assessment Rate
Upon completion of the new shipper review, the Department shall
determine, and CBP shall assess, antidumping duties on all appropriate
entries, in accordance with 19 CFR 351.212. The Department intends to
issue appraisement instructions for Ege Celik directly to CBP 15 days
after the date of publication of the final results of this new shipper
review.
Pursuant to 19 CFR 351.212(b)(1), because we have the reported
entered value of Ege Celik's U.S. sale, we have calculated an importer-
specific assessment rate based on the ratio of the total amount of
antidumping duties calculated for the examined sale to the total
entered value of that sale. We will instruct CBP to assess antidumping
duties on all appropriate entries covered by this review if the
importer-specific assessment rate calculated in the final results of
this review is above de minimis (i.e., at or above 0.50 percent).
Pursuant to 19 CFR 351.106(c)(2), we will instruct CBP to liquidate
without regard to antidumping duties any entries for which the
assessment rate is de minimis (i.e., less than 0.50 percent). See 19
CFR 351.106(c)(1).
The final results of this review shall be the basis for the
assessment of antidumping duties on entries of merchandise covered by
the final results of this review and for future deposits of estimated
duties, where applicable.
The Department clarified its ``automatic assessment'' regulation on
May 6, 2003 (68 FR 23954). This clarification applies to entries of
subject merchandise during the POR produced by companies included in
these preliminary results of review for which the reviewed companies
did not know their merchandise was destined for 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. For a full discussion of this
clarification, see Antidumping and Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003).
[[Page 51602]]
Cash Deposit Requirements
The following cash deposit requirements will be effective for all
shipments of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the publication date of the
final results of the new shipper review, as provided by section
751(a)(2)(C) of the Act: 1) the cash deposit rate for Ege Celik (i.e.,
for subject merchandise both manufactured and exported by Ege Celik)
will be that established in the final results of this review, except if
the rate is less than 0.50 percent, and therefore, de minimis within
the meaning of 19 CFR 351.106(c)(1), in which case the cash deposit
rate will be zero; 2) for previously reviewed or investigated companies
not participating in this review, the cash deposit rate will continue
to be the company-specific rate published for the most recent period;
3) if the exporter is not a firm covered in these reviews or the
original less-than-fair-value (LTFV) investigation, but the
manufacturer is, the cash deposit rate will be the rate established for
the most recent period for the manufacturer of the merchandise; and 4)
the cash deposit rate for all other manufacturers or exporters will
continue to be 16.06 percent, the All-Others rate established in the
LTFV investigation. These requirements, when imposed, shall remain in
effect until further notice.
Notification to Importers
This notice serves as a preliminary reminder to importers of their
responsibility under 19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this review period. Failure to comply
with this requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
This new shipper review is issued and published in accordance with
sections 751(a)(2)(B)(iv) and 777(i)(1) of the Act, as well as 19 CFR
351.214(i).
Dated: September 4, 2007.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E7-17758 Filed 9-7-07; 8:45 am]
BILLING CODE 3510-DS-S
