Preliminary Results of Antidumping Duty Administrative Review: Carbon and Alloy Steel Wire Rod From Mexico, 62820-62824 [E7-21870]
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Federal Register / Vol. 72, No. 215 / Wednesday, November 7, 2007 / Notices
value of the examined sales for that
importer.2
The Department clarified its
‘‘automatic assessment’’ regulation on
May 6, 2003. See Antidumping and
Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68
FR 23954 (May 6, 2003) (Assessment
Policy Notice). This clarification will
apply to entries of subject merchandise
during the period of review produced by
companies included in these final
results of reviews for which the
reviewed companies did not know that
the merchandise it sold to the
intermediary (e.g., a reseller, trading
company, or exporter) was destined for
the United States. In such instances, we
will instruct CBP to liquidate
unreviewed entries at the all-others rate
if there was no rate calculated in this
review for the intermediary involved in
the transaction. See Assessment Policy
Notice, 68 FR at 23954, for a full
discussion of this clarification.
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Cash Deposit Requirements
The following deposit rates will be
effective upon publication of the final
results of this administrative review for
all shipments of steel wire rod from
Canada entered, or withdrawn from
warehouse, for consumption on or after
the publication date, as provided by
section 751(a)(1) of the Act: (1) The cash
deposit rates for Ivaco will be the rates
established in the final esults of this
review, except if a rate is less than 0.5
percent, and therefore de minimis, the
cash deposit will be zero; (2) for
previously reviewed or investigated
companies not listed above, the cash
deposit rate will continue to be the
company-specific rate published for the
most recent period; (3) if the exporter is
not a firm covered in this review, a prior
review, or the less-than-fair-value
(LTFV) investigation, but the
manufacturer is, the cash deposit rate
will be the rate established for the most
recent period for the manufacturer of
the merchandise; and (4) if neither the
exporter nor the manufacturer is a firm
covered in this or any previous review
conducted by the Department, the cash
2 According to Ivaco, IRM served as the importer
for almost all of the U.S. sales of IRM, and Sivaco
Ontario served as the importer for all of the U.S.
sales of Sivaco Ontario. Because IRM and Sivaco
Ontario are considered part of the same entity, there
is in effect only one importer, so only one importerspecific assessment rate has been calculated for
application to entries imported by IRM or Sivaco
Ontario. In addition, for several reported U.S. sales
of IRM, Ivaco indicates it cannot identify the
importer. Ivaco states these sales involved
galvanized wire rod that was exported to the United
States by the U.S. customer. Separate companyspecific assessment rates have been calculated for
application to entries associated with such
transactions. See Ivaco Analysis Memorandum.
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deposit rate will be 8.11 percent, the
‘‘All Others’’ rate established in the
LTFV investigation.
These cash deposit requirements,
when imposed, shall remain in effect
util publication of the final results of the
next administrative review.
This notice serves as a preliminary
reminder to importers of their
responsibility under 19 CFR 351.402(f)
to file a certificate regarding the
reimbursement of antidumping duties
prior to liquidation of the relevant
entities during this review period.
Failure to comply with this requirement
could result in the Secretary’s
presumption that reimbursement of
antidumping duties occurred and the
subsequent assessment of double
antidumping duties.
These preliminary results are issued
and published in accordance with
sections 751(a)(1) and 777(i)(1) of the
Act.
Dated: October 31, 2007.
Stephen J. Claeys,
Acting Assistant Secretary for Import
Administration.
[FR Doc. E7–21869 Filed 11–6–07; 8:45 am]
BILLING CODE 35–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–201–830]
Preliminary Results of Antidumping
Duty Administrative Review: Carbon
and Alloy Steel Wire Rod From Mexico
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to requests by
interested parties, the Department of
Commerce (‘‘the Department’’) is
conducting an administrative review of
the antidumping duty order on carbon
and alloy steel wire rod (‘‘wire rod’’)
from Mexico for the period of review
(‘‘POR’’) October 1, 2005, through
September 30, 2006.
We preliminarily determine that
during the POR, Hylsa Puebla, S.A. de
C.V. (‘‘Hylsa’’) made sales at less than
normal value (‘‘NV’’). If these
preliminary results are adopted in the
final results of this administrative
review, we will instruct U.S. Customs
and Border Protection (‘‘CBP’’) to assess
antidumping duties equal to the
difference between the export price
(‘‘EP’’) and NV.
DATES: Effective Dates: November 7,
2007.
FOR FURTHER INFORMATION CONTACT: John
Conniff or Jolanta Lawska, AD/CVD
AGENCY:
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Operations, Office 3, Import
Administration, Room 1870,
International Trade Administration,
U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW.,
Washington, DC 20230; telephone: (202)
482–1009 or (202) 482–8362,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On October 29, 2002, the Department
published in the Federal Register the
antidumping duty order on wire rod
from Mexico; see Notice of
Antidumping Duty Orders: Carbon and
Certain Alloy Steel Wire Rod from
Brazil, Indonesia, Mexico, Moldova,
Trinidad and Tobago, and Ukraine, 67
FR 65945 (October 29, 2002). On
October 2, 2006, the Department
published in the Federal Register the
notice of Antidumping or
Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity
To Request Administrative Review, 71
FR 57920 (October 2, 2006).
On October 31, 2006, we received a
request for review from petitioners,1
with respect to Hylsa and Siderurgica
Lazaro Cardenas Las Truchas S.A. de
C.V. (‘‘Sicartsa’’). This review was
requested in accordance with 19 CFR
351.213(b)(2).
On November 27, 2006, we published
the notice of initiation of this
antidumping duty administrative review
covering the period October 1, 2005,
through September 30, 2006. See
Initiation of Antidumping and
Countervailing Duty Administrative
Reviews and Request for Revocation in
Part, 71 FR 68535 (November 27, 2006).
On December 28, 2006, petitioners
withdrew their request for a review of
Sicartsa pursuant to 19 CFR
351.213(d)(1). On May 25, 2007, we
published in the Federal Register the
notice of rescission for Sicartsa; see
Certain Carbon and Alloy Steel Wire
Rod from Mexico: Notice of Partial
Rescission of Antidumping Duty
Administrative Review, 72 FR 29300
(May 25, 2007).
On February 5, 2007, Hylsa submitted
its section A response to the
Department’s December 8, 2006, initial
questionnaire. On February 12, 2007,
Hylsa submitted its sections B–C
response to the Department’s initial
questionnaire. On June 11, 2007, Hylsa
submitted its supplemental
questionnaire response to the
1 The petitioners are Mittal Steel USA Inc.,
Gerdau USA Inc., Nucor Steel Connecticut Inc.,
Keystone Consolidated Industries, Inc., and Rocky
Mountain Steel Mills (collectively ‘‘the
petitioners’’).
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Department’s May 4, 2007,
questionnaire for sections A–C. On
September 6, 2007, Hylsa submitted its
second supplemental questionnaire
response to the Department’s August 23,
2007, questionnaire for sections A–C.
On September 20, 2007, Hylsa
submitted its third supplemental
questionnaire response to the
Department’s September 10, 2007,
questionnaire for sections A–C.
On February 20, 2007, Hylsa
submitted its section D response to the
Department’s December 7, 2007,
questionnaire. On July 16, 2007, Hylsa
submitted its supplemental
questionnaire response to the
Department’s June 18, 2007,
questionnaire for section D. On
September 13, 2007, Hylsa submitted its
second questionnaire response to the
Department’s August 23, 2007,
questionnaire for section D. On October
10, 2007, Hylsa submitted its third
supplemental questionnaire response to
the Department’s October 3, 2007,
questionnaire for section D.
On March 30, 2007, the petitioners
submitted comments with respect to
Hylsa. On May 17, 2007, the Department
published a notice extending the time
period for issuing the preliminary
results of the fourth administrative
review from July 3, 2007, to October 31,
2007. See Carbon and Certain Alloy
Steel Wire Rod from Mexico: Extension
of Time Limits for the Preliminary
Results of Antidumping Duty
Administrative Review, 72 FR 27801
(May 17, 2007).
Scope of Review
The merchandise subject to this order
is certain hot-rolled products of carbon
steel and alloy steel, in coils, of
approximately round cross section, 5.00
mm or more, but less than 19.00 mm, in
solid cross-sectional diameter.
Specifically excluded are steel
products possessing the above-noted
physical characteristics and meeting the
Harmonized Tariff Schedule of the
United States (‘‘HTSUS’’) definitions for
(a) stainless steel; (b) tool steel; (c) high
nickel steel; (d) ball bearing steel; and
(e) concrete reinforcing bars and rods.
Also excluded are (f) free machining
steel products (i.e., products that
contain by weight one or more of the
following elements: 0.03 percent or
more of lead, 0.05 percent or more of
bismuth, 0.08 percent or more of sulfur,
more than 0.04 percent of phosphorus,
more than 0.05 percent of selenium, or
more than 0.01 percent of tellurium).
Also excluded from the scope are
1080 grade tire cord quality wire rod
and 1080 grade tire bead quality wire
rod. This grade 1080 tire cord quality
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rod is defined as: (i) Grade 1080 tire
cord quality wire rod measuring 5.0 mm
or more but not more than 6.0 mm in
cross-sectional diameter; (ii) with an
average partial decarborization of no
more than 70 microns in depth
(maximum individual 200 microns); (iii)
having no non-deformable inclusions
greater than 20 microns and no
deformable inclusions greater than 35
microns; (iv) having a carbon
segregation per heat average of 3.0 or
better using European Method NFA 04–
114; (v) having a surface quality with no
surface defects of a length greater than
0.15 mm; (vi) capable of being drawn to
a diameter of 0.30 mm or less with 3 or
fewer breaks per ton, and (vii)
containing by weight the following
elements in the proportions shown: (1)
0.78 percent or more of carbon, (2) less
than 0.01 percent of aluminum, (3)
0.040 percent or less, in the aggregate,
of phosphorus and sulfur, (4) 0.006
percent or less of nitrogen, and (5) not
more than 0.15 percent, in the aggregate,
of copper, nickel and chromium.
This grade 1080 tire bead quality rod
is defined as: (i) Grade 1080 tire bead
quality wire rod measuring 5.5 mm or
more but not more than 7.0 mm in
cross-sectional diameter; (ii) with an
average partial decarborization of no
more than 70 microns in depth
(maximum individual 200 microns); (iii)
having no non-deformable inclusions
greater than 20 microns and no
deformable inclusions greater than 35
microns; (iv) having a carbon
segregation per heat average of 3.0 or
better using European Method NFA 04–
114; (v) having a surface quality with no
surface defects of a length greater than
0.2 mm; (vi) capable of being drawn to
a diameter of 0.78 mm or larger with 0.5
or fewer breaks per ton; and (vii)
containing by weight the following
elements in the proportions shown: (1)
0.78 percent or more of carbon, (2) less
than 0.01 percent of soluble aluminum,
(3) 0.040 percent or less, in the
aggregate, of phosphorus and sulfur, (4)
0.008 percent or less of nitrogen, and (5)
either not more than 0.15 percent, in the
aggregate, of copper, nickel and
chromium (if chromium is not
specified), or not more than 0.10 percent
in the aggregate of copper and nickel
and a chromium content of 0.24 to 0.30
percent (if chromium is specified).
For purposes of the grade 1080 tire
cord quality wire rod and the grade
1080 tire bead quality wire rod, an
inclusion will be considered to be
deformable if its ratio of length
(measured along the axis—that is, the
direction of rolling—of the rod) over
thickness (measured on the same
inclusion in a direction perpendicular
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to the axis of the rod) is equal to or
greater than three. The size of an
inclusion for purposes of the 20 microns
and 35 microns limitations is the
measurement of the largest dimension
observed on a longitudinal section
measured in a direction perpendicular
to the axis of the rod. This measurement
methodology applies only to inclusions
on certain grade 1080 tire cord quality
wire rod and certain grade 1080 tire
bead quality wire rod that are entered,
or withdrawn from warehouse, for
consumption on or after July 24, 2003.
The designation of the products as
‘‘tire cord quality’’ or ‘‘tire bead quality’’
indicates the acceptability of the
product for use in the production of tire
cord, tire bead, or wire for use in other
rubber reinforcement applications such
as hose wire. These quality designations
are presumed to indicate that these
products are being used in tire cord, tire
bead, and other rubber reinforcement
applications, and such merchandise
intended for the tire cord, tire bead, or
other rubber reinforcement applications
is not included in the scope. However,
should petitioners or other interested
parties provide a reasonable basis to
believe or suspect that there exists a
pattern of importation of such products
for other than those applications, enduse certification for the importation of
such products may be required. Under
such circumstances, only the importers
of record would normally be required to
certify the end use of the imported
merchandise.
All products meeting the physical
description of subject merchandise that
are not specifically excluded are
included in this scope.
The products under review are
currently classifiable under subheadings
7213.91.3010, 7213.91.3090,
7213.91.4510, 7213.91.4590,
7213.91.6010, 7213.91.6090,
7213.99.0031, 7213.99.0038,
7213.99.0090, 7227.20.0010,
7227.20.0020, 7227.20.0090,
7227.20.0095, 7227.90.6051,
7227.90.6053, 7227.90.6058, and
7227.90.6059 of the HTSUS. Although
the HTSUS subheadings are provided
for convenience and customs purposes,
the written description of the scope of
this proceeding is dispositive.2
Product Comparisons
In accordance with section 771(16) of
the Tariff Act of 1930, as amended (‘‘the
Act’’), all products produced by the
respondents covered by the description
2 Effective January 1, 2004, CBP reclassified
certain HTSUS numbers related to the subject
merchandise. See https://hotdocs.usitc.gov/
tariff_chapters_current/toc.html.
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in the ‘‘Scope of Review’’ section,
above, and sold in Mexico during the
POR are considered to be foreign like
products for purposes of determining
appropriate product comparisons to
U.S. sales. We have relied on eight
criteria to match U.S. sales of subject
merchandise to comparison-market
sales of the foreign like product or
constructed value (‘‘CV’’): grade range,
carbon content range, surface quality,
deoxidation, maximum total residual
content, heat treatment, diameter range,
and coating. These characteristics have
been weighted by the Department where
appropriate. Where there were no sales
of identical merchandise in the home
market made in the ordinary course of
trade 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 listed above.
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Comparisons to Normal Value
To determine whether sales of wire
rod from Mexico were made in the
United States at less than NV, we
compared the EP to the NV, as described
in the ‘‘Export Price’’ and ‘‘Normal
Value’’ sections of this notice. In
accordance with section 777A(d)(2) of
the Act, we calculated monthly
weighted-average prices for NV and
compared these to individual U.S.
transactions.
Export Price
For the price to the United States, we
used EP in accordance with section
772(a) of the Act. We calculated EP
when the merchandise was sold by the
producer or exporter outside of the
United States directly to the first
unaffiliated purchaser in the United
States prior to importation and when
constructed export price was not
otherwise warranted based on the facts
on the record. We based EP on the
packed cost-insurance-freight (‘‘CIF’’),
ex-factory, free-on-board (‘‘FOB’’), or
delivered prices to the first unaffiliated
customer in, or for exportation to, the
United States.
In accordance with section 772(c)(2)
of the Act, we made deductions, where
appropriate, for movement expenses
including inland freight from plant or
warehouse to port of exportation,
foreign brokerage, handling and loading
charges, U.S. brokerage, and U.S. inland
freight expenses (freight from port to the
customer) and insurance. We also
adjusted EP for billing adjustments.
In accordance with 19 CFR
351.401(e)(2) and in keeping with our
practice, we added interest, freight, and
other revenue (i.e., Mexican and U.S.
brokerage and handling) where
applicable. See, e.g., Light-Walled
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Jkt 214001
Rectangular Pipe and Tube from
Mexico: Notice of Preliminary
Determination of Sales at Less Than
Fair Value and Postponement of Final
Determination, 69 FR 19400, 19406
(April 13, 2004); unchanged in LightWalled Rectangular Pipe and Tube
From Mexico: Notice of Final
Determination of Sales at Less Than
Fair Value, 69 FR 53677 (September 2,
2004).
Normal Value
A. Selection of Comparison Markets
To determine whether there was a
sufficient volume of sales in the home
market to serve as a viable basis for
calculating NV, we compared Hylsa’s
volume of home market sales of the
foreign like product to the volume of its
U.S. sales of the subject merchandise.
Pursuant to sections 773(a)(1)(B) and
773(a)(1)(C) of the Act, because Hylsa
had an aggregate volume of home
market sales of the foreign like product
that was greater than five percent of its
aggregate volume of U.S. sales of the
subject merchandise, we determined
that the home market was viable.
B. Arm’s-Length Test
Hylsa reported sales of the foreign like
product to affiliated end-users and
affiliated resellers. The Department
calculates the 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 price at which sales
are made to parties not affiliated with
the producer or exporter, i.e., sales at
arm’s-length. See 19 CFR 351.403(c). To
test whether these sales were made at
arm’s-length, we compared the starting
prices of sales to affiliated and
unaffiliated customers net of all
movement charges, direct selling
expenses, discounts and packing. In
accordance with the Department’s
current practice, if the prices charged to
an affiliated party were, on average,
between 98 and 102 percent of the
prices charged to unaffiliated parties for
merchandise identical or most similar to
that sold to the affiliated party, we
consider the sales to be at arm’s-length
prices. See 19 CFR 351.403(c); see also
Antidumping Proceedings: Affiliated
Party Sales in the Ordinary Course of
Trade, 67 FR 69186, 69187 (November
15, 2002). Conversely, where sales to the
affiliated party did not pass the arm’slength test, all sales to that affiliated
party have been excluded from the NV
calculation. Id. Some of Hylsa’s sales
did not pass the arm’s-length test and
were excluded from the NV calculation.
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C. Cost of Production (‘‘COP’’) Analysis
1. Calculation of COP
Before making any comparisons to
NV, we conducted a COP analysis of
Hylsa, pursuant to section 773(b) of the
Act, to determine whether the
respondents’ comparison market sales
were made below the COP. We
calculated the COP based on the sum of
the cost of materials and fabrication for
the foreign like product, plus amounts
for selling, general, and administrative
expenses (‘‘SG&A’’) and packing, in
accordance with section 773(b)(3) of the
Act. We adjusted Hylsa’s reported
general and administrative expenses to
account for certain costs. The
Department normally includes these
costs in the calculation of COP. See
October 31, 2007, memorandum to the
file, ‘‘Cost of Production and
Constructed Value Calculation
Adjustments for the Preliminary
Results—Hylsa Puebla S.A. de C.V.’’
from Gina K. Lee, Accountant, to Neal
M. Halper, Director, Office of
Accounting.
2. Test of Comparison Market Prices
As required under section 773(b)(2) of
the Act, we compared the weightedaverage COP to the per-unit price of the
comparison market sales of the foreign
like product, to determine whether
these sales had been made at prices
below the COP within an extended
period of time in substantial quantities,
and whether such prices were sufficient
to permit the recovery of all costs within
a reasonable period of time. In
accordance with the statute and the
Department’s practice, we determined
the net comparison market prices for the
below-cost test by subtracting from the
gross unit price any applicable
movement charges, discounts, rebates,
direct and indirect selling expenses
(also subtracted from the COP), and
packing expenses. We also adjusted the
gross unit price for billing adjustments
and interest revenue. See section 773(b)
of the Act; see also 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
25063, 25066 (May 5, 2004); unchanged
in Certain Steel Concrete Reinforcing
Bars From Turkey: Final Results,
Rescission of Antidumping Duty
Administrative Review in Part, and
Determination Not To Revoke in Part, 69
FR 64731 (November 8, 2004).
3. Results of the COP Test
Pursuant to section 773(b)(2)(C)(i) of
the Act, where less than 20 percent of
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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 belowcost sales were not made in ‘‘substantial
quantities.’’ Where 20 percent or more
of a respondent’s sales of a given
product during the POR were at prices
less than the COP, we determined such
sales to have been made in ‘‘substantial
quantities.’’ See section 773(b)(2)(C) of
the Act. The sales were made within an
extended period of time in accordance
with section 773(b)(2)(B) of the Act,
because they were made over the course
of the POR. In such cases, because we
compared prices to POR-average costs,
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 Hylsa, for purposes of this
administrative review, we disregarded
below-cost sales of a given product and
used the remaining sales as the basis for
determining NV, in accordance with
section 773(b)(1) of the Act. See the
October 31, 2007, memorandum to the
file, ‘‘Preliminary Calculation
Memorandum for Hylsa S.A. de C.V.’’
(‘‘Calculation Memorandum for Hylsa’’)
from Jolanta Lawska, Case Analyst,
Office of AD/CVD Operations III,
available in the Central Records Unit
(‘‘CRU’’) Import Administration,
Washington, DC, HCHB Building, Room
B for our calculation methodology and
results.
D. Calculation of Normal Value Based
on Comparison Market Prices
We calculated NV based on ex-works,
FOB or delivered prices to comparison
market customers. We calculated the
starting price taking into account, where
necessary, billing adjustments and early
payment discounts. Pursuant to section
773(a)(6)(B)(ii) of the Act, we made
deductions from the starting price,
when appropriate, for handling, loading,
inland freight, and inland insurance. In
accordance with 19 CFR 351.402, we
added interest revenue, where
applicable. In accordance with sections
773(a)(6)(A) and (B) of the Act, we
added U.S. packing costs and deducted
comparison market packing,
respectively. In addition, we made
circumstance of sale (‘‘COS’’)
adjustments for direct expenses,
including imputed credit expenses, and
warranty expenses in accordance with
section 773(a)(6)(C)(iii) of the Act.
When comparing U.S. sales with
comparison market sales of similar, but
not identical, merchandise, we also
made adjustments for physical
differences in the merchandise in
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accordance with section 773(a)(6)(C)(ii)
of the Act and 19 CFR 351.411. We
based this adjustment on the difference
in the variable cost of manufacturing for
the foreign like product and subject
merchandise, using POR-average costs.
Sales of wire rod purchased by the
respondents from unaffiliated producers
and resold in the comparison market
were treated in the same manner
described above in the ‘‘Export Price’’
section of this notice.
E. Level of Trade
In accordance with section
773(a)(1)(B) of the Act, we determined
NV based on sales in the comparison
market at the same level of trade as the
EP sales, to the extent practicable. When
there were no sales at the same LOT, we
compared U.S. sales to comparison
market sales at a different LOT.
Pursuant to 19 CFR 351.412, to
determine whether comparison market
sales were at a different LOT, we
examined stages in the marketing
process and selling functions along the
chain of distribution between the
producer and the unaffiliated (or arm’slength) customers. If the comparisonmarket sales were at a different LOT and
the differences affect 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 will make
an LOT adjustment under section
773(a)(7)(A) of the Act.
In its questionnaire response, Hylsa
did not claim a LOT adjustment. See
Hylsa’s Section A questionnaire
response dated February 12, 2007, at
page 29. Moreover, based on our
analysis of the facts of this
administrative review, we preliminarily
determine that there is no substantial
difference in the selling functions
between the sales on which NV is based
and the export transactions. All of
Hylsa’s U.S. sales are reported as EP
sales. Thus, we have matched EP sales
to sales in the home market without
regard to level of trade and made no
level of trade adjustment.
For a detailed description of our LOT
methodology and a summary of Hylsa’s
LOT findings for these preliminary
results, see page 3 of the October 31,
2007, calculation memorandum for
Hylsa.
Currency Conversion
For purposes of these preliminary
results, we made currency conversions
in accordance with section 773A(a) of
the Act, based on the official exchange
rates published by the Federal Reserve
Bank.
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62823
Preliminary Results of Review
As a result of our review, we
preliminarily determine that the
following percentage weighted-average
margins exist for the period October 1,
2005, through September 30, 2006:
Manufacturer/exporter
Hylsa .....................................
Margin
(percent)
17.78
The Department will disclose
calculations performed within five days
of the date of publication of this notice
to the parties of this proceeding in
accordance with 19 CFR 351.224(b). An
interested party may request a hearing
within 30 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 working day
thereafter, unless the Department alters
the date pursuant to 19 CFR 351.310(d).
Interested parties may submit case briefs
no later than 30 days after the date of
publication of these preliminary results
of review. See 19 CFR 351.310(c).
Rebuttal briefs limited to issues raised
in the case briefs, may be filed no later
than 35 days after the date of
publication. See 19 CFR 351.310(d).
Parties who submit arguments are
requested to submit with the argument
(1) a statement of the issue, and (2) a
brief summary of the argument. Further,
parties submitting written comments are
requested to provide the Department
with an additional copy of the public
version of any such comments on
diskette. The Department will issue the
final results of this administrative
review, which will include the results of
its analysis of issues raised in any such
comments, or at a hearing, within 120
days of publication of these preliminary
results.
Assessment Rate
Upon completion of this
administrative review, the Department
shall determine, and U.S. Customs and
Border Protection (CBP) shall assess,
antidumping duties on all appropriate
entries. After 41 days of publication of
the final results of this administrative
review, if any importer-specific ad
valorem rates calculated in the final
results are above de minimis (i.e., at or
above 0.5 percent), the Department will
issue appraisement instructions directly
to CBP to assess antidumping duties on
appropriate entries. The total customs
value is based on the entered value
reported for each importer for all U.S.
entries of subject merchandise
purchased during the POR for
consumption in the United States.
E:\FR\FM\07NON1.SGM
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62824
Federal Register / Vol. 72, No. 215 / Wednesday, November 7, 2007 / Notices
Notification to Importers
This notice serves as a preliminary
reminder to importers of their
responsibility under 19 CFR 351.402(f)
to file a certificate regarding the
reimbursement of antidumping duties
prior to liquidation of the relevant
entries during this review period.
Failure to comply with this requirement
could result in the Secretary’s
presumption that reimbursement of
antidumping duties occurred and the
subsequent assessment of double
antidumping duties.
This administrative review is issued
and published in accordance with
sections 751(a)(1) and 777(i)(1) of the
Act.
Cash Deposit Requirements
pwalker on PROD1PC71 with NOTICES
The Department clarified its
‘‘automatic assessment’’ regulation on
May 6, 2003. 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 the companies included in
these preliminary results 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
or companies involved in the
transaction.
Dated: October 31, 2007.
Stephen J. Claeys,
Acting Assistant Secretary for Import
Administration.
[FR Doc. E7–21870 Filed 11–6–07; 8:45 am]
To calculate the cash deposit rate for
Hylsa in this administrative review, we
divided the total dumping margins by
the total net value for this company’s
sales during the review period.
The following deposit rates will be
effective upon publication of the final
results of this administrative review for
all shipments of wire rod from Mexico
entered, or withdrawn from warehouse,
for consumption on or after the
publication date, as provided by section
751(a)(2)(C) of the Act: (1) The cash
deposit rates for the companies listed
above will be the rates established in the
final results of this review, except if the
rate is less than 0.5 percent and,
therefore, de minimis, the cash deposit
will be zero; (2) for previously reviewed
or investigated companies not listed
above, the cash deposit rate will
continue to be the company-specific rate
published for the most recent final
results in which that manufacturer or
exporter participated; (3) if the exporter
is not a firm covered in this review, a
prior review, 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 final results for the
manufacturer of the merchandise; and
(4) if neither the exporter nor the
manufacturer is a firm covered in this or
any previous review conducted by the
Department, the cash deposit rate will
be 20.11 percent, the ‘‘All Others’’ rate
established in the LTFV investigation.
See Notice of Final Determination of
Sales at Less than Fair Value: Carbon
and Certain Alloy Steel Wire Rod From
Mexico, 67 FR 55800 (August 30, 2002).
These cash deposit requirements,
when imposed, shall remain in effect
until publication of the final results of
the next administrative review.
VerDate Aug<31>2005
16:14 Nov 06, 2007
Jkt 214001
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–274–804]
Carbon and Alloy Steel Wire Rod From
Trinidad and Tobago: Final Results of
Antidumping Duty Administrative
Review
Import Administration,
International Trade Administration,
Department of Commerce.
AGENCY:
SUMMARY: On July 6, 2007, the
Department of Commerce (the
Department) published the preliminary
results of the antidumping duty (AD)
administrative review on carbon and
alloy steel wire rod (wire rod) from
Trinidad and Tobago. This review
covers one producer of subject
merchandise. The period of review
(POR) is October 1, 2005, through
September 30, 2006. See Carbon and
Certain Alloy Steel Wire Rod from
Trinidad and Tobago; Preliminary
Results of Antidumping Duty
Administrative Review, 72 FR 36955
(July 6, 2007) (Preliminary Results).
Based on our analysis of comments
received, these final results do not differ
from the preliminary results. The final
results are listed below in the Final
Results of Review section.
DATES: Effective Dates: November 7,
2007.
FOR FURTHER INFORMATION CONTACT:
Stephanie Moore or Dennis McClure,
AD/CVD Operations, Office 3, Import
Administration, International Trade
Administration, U.S. Department of
PO 00000
Frm 00013
Fmt 4703
Sfmt 4703
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–3692 or (202) 482–
5973, respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 6, 2007, the Department
published the preliminary results of the
administrative review of the AD order
on wire rod from Trinidad and Tobago.
See Preliminary Results. This review
covers imports of wire rod from Mittal
Steel Point Lisas Limited and its
affiliates Mittal Steel North America
(MSNA) and Walker Wire (Ispat) Inc.
(collectively Mittal) during the POR,
October 1, 2005, through September 30,
2006. We invited interested parties to
comment on the Preliminary Results.
On August 6, 2007, we received a case
brief from the petitioners: ISG
Georgetown Inc., Gerdau Ameristeel
U.S. Inc., Keystone Consolidated
Industries, Inc., and North Star Steel
Texas, Inc. On August 10, 2007, we
extended Mittal’s deadline for
submitting its rebuttal brief. On August
13, 2007, we received Mittal’s rebuttal
brief.
Scope of the Order
The merchandise subject to this order
is certain hot-rolled products of carbon
steel and alloy steel, in coils, of
approximately round cross section, 5.00
mm or more, but less than 19.00 mm, in
solid cross-sectional diameter.
Specifically excluded are steel
products possessing the above-noted
physical characteristics and meeting the
Harmonized Tariff Schedule of the
United States (HTSUS) definitions for
(a) stainless steel; (b) tool steel; (c) high
nickel steel; (d) ball bearing steel; and
(e) concrete reinforcing bars and rods.
Also excluded are (f) free machining
steel products (i.e., products that
contain by weight one or more of the
following elements: 0.03 percent or
more of lead, 0.05 percent or more of
bismuth, 0.08 percent or more of sulfur,
more than 0.04 percent of phosphorus,
more than 0.05 percent of selenium, or
more than 0.01 percent of tellurium).
Also excluded from the scope are
1080 grade tire cord quality wire rod
and 1080 grade tire bead quality wire
rod. This grade 1080 tire cord quality
rod is defined as: (i) Grade 1080 tire
cord quality wire rod measuring 5.0 mm
or more but not more than 6.0 mm in
cross-sectional diameter; (ii) with an
average partial decarburization of no
more than 70 microns in depth
(maximum individual 200 microns); (iii)
having no non-deformable inclusions
greater than 20 microns and no
deformable inclusions greater than 35
E:\FR\FM\07NON1.SGM
07NON1
Agencies
[Federal Register Volume 72, Number 215 (Wednesday, November 7, 2007)]
[Notices]
[Pages 62820-62824]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-21870]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-830]
Preliminary Results of Antidumping Duty Administrative Review:
Carbon and Alloy Steel Wire Rod From Mexico
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: In response to requests by interested parties, the Department
of Commerce (``the Department'') is conducting an administrative review
of the antidumping duty order on carbon and alloy steel wire rod
(``wire rod'') from Mexico for the period of review (``POR'') October
1, 2005, through September 30, 2006.
We preliminarily determine that during the POR, Hylsa Puebla, S.A.
de C.V. (``Hylsa'') made sales at less than normal value (``NV''). If
these preliminary results are adopted in the final results of this
administrative review, we will instruct U.S. Customs and Border
Protection (``CBP'') to assess antidumping duties equal to the
difference between the export price (``EP'') and NV.
DATES: Effective Dates: November 7, 2007.
FOR FURTHER INFORMATION CONTACT: John Conniff or Jolanta Lawska, AD/CVD
Operations, Office 3, Import Administration, Room 1870, International
Trade Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
1009 or (202) 482-8362, respectively.
SUPPLEMENTARY INFORMATION:
Background
On October 29, 2002, the Department published in the Federal
Register the antidumping duty order on wire rod from Mexico; see Notice
of Antidumping Duty Orders: Carbon and Certain Alloy Steel Wire Rod
from Brazil, Indonesia, Mexico, Moldova, Trinidad and Tobago, and
Ukraine, 67 FR 65945 (October 29, 2002). On October 2, 2006, the
Department published in the Federal Register the notice of Antidumping
or Countervailing Duty Order, Finding, or Suspended Investigation;
Opportunity To Request Administrative Review, 71 FR 57920 (October 2,
2006).
On October 31, 2006, we received a request for review from
petitioners,\1\ with respect to Hylsa and Siderurgica Lazaro Cardenas
Las Truchas S.A. de C.V. (``Sicartsa''). This review was requested in
accordance with 19 CFR 351.213(b)(2).
---------------------------------------------------------------------------
\1\ The petitioners are Mittal Steel USA Inc., Gerdau USA Inc.,
Nucor Steel Connecticut Inc., Keystone Consolidated Industries,
Inc., and Rocky Mountain Steel Mills (collectively ``the
petitioners'').
---------------------------------------------------------------------------
On November 27, 2006, we published the notice of initiation of this
antidumping duty administrative review covering the period October 1,
2005, through September 30, 2006. See Initiation of Antidumping and
Countervailing Duty Administrative Reviews and Request for Revocation
in Part, 71 FR 68535 (November 27, 2006).
On December 28, 2006, petitioners withdrew their request for a
review of Sicartsa pursuant to 19 CFR 351.213(d)(1). On May 25, 2007,
we published in the Federal Register the notice of rescission for
Sicartsa; see Certain Carbon and Alloy Steel Wire Rod from Mexico:
Notice of Partial Rescission of Antidumping Duty Administrative Review,
72 FR 29300 (May 25, 2007).
On February 5, 2007, Hylsa submitted its section A response to the
Department's December 8, 2006, initial questionnaire. On February 12,
2007, Hylsa submitted its sections B-C response to the Department's
initial questionnaire. On June 11, 2007, Hylsa submitted its
supplemental questionnaire response to the
[[Page 62821]]
Department's May 4, 2007, questionnaire for sections A-C. On September
6, 2007, Hylsa submitted its second supplemental questionnaire response
to the Department's August 23, 2007, questionnaire for sections A-C. On
September 20, 2007, Hylsa submitted its third supplemental
questionnaire response to the Department's September 10, 2007,
questionnaire for sections A-C.
On February 20, 2007, Hylsa submitted its section D response to the
Department's December 7, 2007, questionnaire. On July 16, 2007, Hylsa
submitted its supplemental questionnaire response to the Department's
June 18, 2007, questionnaire for section D. On September 13, 2007,
Hylsa submitted its second questionnaire response to the Department's
August 23, 2007, questionnaire for section D. On October 10, 2007,
Hylsa submitted its third supplemental questionnaire response to the
Department's October 3, 2007, questionnaire for section D.
On March 30, 2007, the petitioners submitted comments with respect
to Hylsa. On May 17, 2007, the Department published a notice extending
the time period for issuing the preliminary results of the fourth
administrative review from July 3, 2007, to October 31, 2007. See
Carbon and Certain Alloy Steel Wire Rod from Mexico: Extension of Time
Limits for the Preliminary Results of Antidumping Duty Administrative
Review, 72 FR 27801 (May 17, 2007).
Scope of Review
The merchandise subject to this order is certain hot-rolled
products of carbon steel and alloy steel, in coils, of approximately
round cross section, 5.00 mm or more, but less than 19.00 mm, in solid
cross-sectional diameter.
Specifically excluded are steel products possessing the above-noted
physical characteristics and meeting the Harmonized Tariff Schedule of
the United States (``HTSUS'') definitions for (a) stainless steel; (b)
tool steel; (c) high nickel steel; (d) ball bearing steel; and (e)
concrete reinforcing bars and rods. Also excluded are (f) free
machining steel products (i.e., products that contain by weight one or
more of the following elements: 0.03 percent or more of lead, 0.05
percent or more of bismuth, 0.08 percent or more of sulfur, more than
0.04 percent of phosphorus, more than 0.05 percent of selenium, or more
than 0.01 percent of tellurium).
Also excluded from the scope are 1080 grade tire cord quality wire
rod and 1080 grade tire bead quality wire rod. This grade 1080 tire
cord quality rod is defined as: (i) Grade 1080 tire cord quality wire
rod measuring 5.0 mm or more but not more than 6.0 mm in cross-
sectional diameter; (ii) with an average partial decarborization of no
more than 70 microns in depth (maximum individual 200 microns); (iii)
having no non-deformable inclusions greater than 20 microns and no
deformable inclusions greater than 35 microns; (iv) having a carbon
segregation per heat average of 3.0 or better using European Method NFA
04-114; (v) having a surface quality with no surface defects of a
length greater than 0.15 mm; (vi) capable of being drawn to a diameter
of 0.30 mm or less with 3 or fewer breaks per ton, and (vii) containing
by weight the following elements in the proportions shown: (1) 0.78
percent or more of carbon, (2) less than 0.01 percent of aluminum, (3)
0.040 percent or less, in the aggregate, of phosphorus and sulfur, (4)
0.006 percent or less of nitrogen, and (5) not more than 0.15 percent,
in the aggregate, of copper, nickel and chromium.
This grade 1080 tire bead quality rod is defined as: (i) Grade 1080
tire bead quality wire rod measuring 5.5 mm or more but not more than
7.0 mm in cross-sectional diameter; (ii) with an average partial
decarborization of no more than 70 microns in depth (maximum individual
200 microns); (iii) having no non-deformable inclusions greater than 20
microns and no deformable inclusions greater than 35 microns; (iv)
having a carbon segregation per heat average of 3.0 or better using
European Method NFA 04-114; (v) having a surface quality with no
surface defects of a length greater than 0.2 mm; (vi) capable of being
drawn to a diameter of 0.78 mm or larger with 0.5 or fewer breaks per
ton; and (vii) containing by weight the following elements in the
proportions shown: (1) 0.78 percent or more of carbon, (2) less than
0.01 percent of soluble aluminum, (3) 0.040 percent or less, in the
aggregate, of phosphorus and sulfur, (4) 0.008 percent or less of
nitrogen, and (5) either not more than 0.15 percent, in the aggregate,
of copper, nickel and chromium (if chromium is not specified), or not
more than 0.10 percent in the aggregate of copper and nickel and a
chromium content of 0.24 to 0.30 percent (if chromium is specified).
For purposes of the grade 1080 tire cord quality wire rod and the
grade 1080 tire bead quality wire rod, an inclusion will be considered
to be deformable if its ratio of length (measured along the axis--that
is, the direction of rolling--of the rod) over thickness (measured on
the same inclusion in a direction perpendicular to the axis of the rod)
is equal to or greater than three. The size of an inclusion for
purposes of the 20 microns and 35 microns limitations is the
measurement of the largest dimension observed on a longitudinal section
measured in a direction perpendicular to the axis of the rod. This
measurement methodology applies only to inclusions on certain grade
1080 tire cord quality wire rod and certain grade 1080 tire bead
quality wire rod that are entered, or withdrawn from warehouse, for
consumption on or after July 24, 2003.
The designation of the products as ``tire cord quality'' or ``tire
bead quality'' indicates the acceptability of the product for use in
the production of tire cord, tire bead, or wire for use in other rubber
reinforcement applications such as hose wire. These quality
designations are presumed to indicate that these products are being
used in tire cord, tire bead, and other rubber reinforcement
applications, and such merchandise intended for the tire cord, tire
bead, or other rubber reinforcement applications is not included in the
scope. However, should petitioners or other interested parties provide
a reasonable basis to believe or suspect that there exists a pattern of
importation of such products for other than those applications, end-use
certification for the importation of such products may be required.
Under such circumstances, only the importers of record would normally
be required to certify the end use of the imported merchandise.
All products meeting the physical description of subject
merchandise that are not specifically excluded are included in this
scope.
The products under review are currently classifiable under
subheadings 7213.91.3010, 7213.91.3090, 7213.91.4510, 7213.91.4590,
7213.91.6010, 7213.91.6090, 7213.99.0031, 7213.99.0038, 7213.99.0090,
7227.20.0010, 7227.20.0020, 7227.20.0090, 7227.20.0095, 7227.90.6051,
7227.90.6053, 7227.90.6058, and 7227.90.6059 of the HTSUS. Although the
HTSUS subheadings are provided for convenience and customs purposes,
the written description of the scope of this proceeding is
dispositive.\2\
---------------------------------------------------------------------------
\2\ Effective January 1, 2004, CBP reclassified certain HTSUS
numbers related to the subject merchandise. See https://
hotdocs.usitc.gov/tariff_chapters_current/toc.html.
---------------------------------------------------------------------------
Product Comparisons
In accordance with section 771(16) of the Tariff Act of 1930, as
amended (``the Act''), all products produced by the respondents covered
by the description
[[Page 62822]]
in the ``Scope of Review'' section, above, and sold in Mexico during
the POR are considered to be foreign like products for purposes of
determining appropriate product comparisons to U.S. sales. We have
relied on eight criteria to match U.S. sales of subject merchandise to
comparison-market sales of the foreign like product or constructed
value (``CV''): grade range, carbon content range, surface quality,
deoxidation, maximum total residual content, heat treatment, diameter
range, and coating. These characteristics have been weighted by the
Department where appropriate. Where there were no sales of identical
merchandise in the home market made in the ordinary course of trade 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 listed above.
Comparisons to Normal Value
To determine whether sales of wire rod from Mexico were made in the
United States at less than NV, we compared the EP to the NV, as
described in the ``Export Price'' and ``Normal Value'' sections of this
notice. In accordance with section 777A(d)(2) of the Act, we calculated
monthly weighted-average prices for NV and compared these to individual
U.S. transactions.
Export Price
For the price to the United States, we used EP in accordance with
section 772(a) of the Act. We calculated EP when the merchandise was
sold by the producer or exporter outside of the United States directly
to the first unaffiliated purchaser in the United States prior to
importation and when constructed export price was not otherwise
warranted based on the facts on the record. We based EP on the packed
cost-insurance-freight (``CIF''), ex-factory, free-on-board (``FOB''),
or delivered prices to the first unaffiliated customer in, or for
exportation to, the United States.
In accordance with section 772(c)(2) of the Act, we made
deductions, where appropriate, for movement expenses including inland
freight from plant or warehouse to port of exportation, foreign
brokerage, handling and loading charges, U.S. brokerage, and U.S.
inland freight expenses (freight from port to the customer) and
insurance. We also adjusted EP for billing adjustments.
In accordance with 19 CFR 351.401(e)(2) and in keeping with our
practice, we added interest, freight, and other revenue (i.e., Mexican
and U.S. brokerage and handling) where applicable. See, e.g., Light-
Walled Rectangular Pipe and Tube from Mexico: Notice of Preliminary
Determination of Sales at Less Than Fair Value and Postponement of
Final Determination, 69 FR 19400, 19406 (April 13, 2004); unchanged in
Light-Walled Rectangular Pipe and Tube From Mexico: Notice of Final
Determination of Sales at Less Than Fair Value, 69 FR 53677 (September
2, 2004).
Normal Value
A. Selection of Comparison Markets
To determine whether there was a sufficient volume of sales in the
home market to serve as a viable basis for calculating NV, we compared
Hylsa's volume of home market sales of the foreign like product to the
volume of its U.S. sales of the subject merchandise. Pursuant to
sections 773(a)(1)(B) and 773(a)(1)(C) of the Act, because Hylsa had an
aggregate volume of home market sales of the foreign like product that
was greater than five percent of its aggregate volume of U.S. sales of
the subject merchandise, we determined that the home market was viable.
B. Arm's-Length Test
Hylsa reported sales of the foreign like product to affiliated end-
users and affiliated resellers. The Department calculates the 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 price at which sales are
made to parties not affiliated with the producer or exporter, i.e.,
sales at arm's-length. See 19 CFR 351.403(c). To test whether these
sales were made at arm's-length, we compared the starting prices of
sales to affiliated and unaffiliated customers net of all movement
charges, direct selling expenses, discounts and packing. In accordance
with the Department's current practice, if the prices charged to an
affiliated party were, on average, between 98 and 102 percent of the
prices charged to unaffiliated parties for merchandise identical or
most similar to that sold to the affiliated party, we consider the
sales to be at arm's-length prices. See 19 CFR 351.403(c); see also
Antidumping Proceedings: Affiliated Party Sales in the Ordinary Course
of Trade, 67 FR 69186, 69187 (November 15, 2002). Conversely, where
sales to the affiliated party did not pass the arm's-length test, all
sales to that affiliated party have been excluded from the NV
calculation. Id. Some of Hylsa's sales did not pass the arm's-length
test and were excluded from the NV calculation.
C. Cost of Production (``COP'') Analysis
1. Calculation of COP
Before making any comparisons to NV, we conducted a COP analysis of
Hylsa, pursuant to section 773(b) of the Act, to determine whether the
respondents' comparison market sales were made below the COP. We
calculated the COP based on the sum of the cost of materials and
fabrication for the foreign like product, plus amounts for selling,
general, and administrative expenses (``SG&A'') and packing, in
accordance with section 773(b)(3) of the Act. We adjusted Hylsa's
reported general and administrative expenses to account for certain
costs. The Department normally includes these costs in the calculation
of COP. See October 31, 2007, memorandum to the file, ``Cost of
Production and Constructed Value Calculation Adjustments for the
Preliminary Results--Hylsa Puebla S.A. de C.V.'' from Gina K. Lee,
Accountant, to Neal M. Halper, Director, Office of Accounting.
2. Test of Comparison Market Prices
As required under section 773(b)(2) of the Act, we compared the
weighted-average COP to the per-unit price of the comparison market
sales of the foreign like product, to determine whether these sales had
been made at prices below the COP within an extended period of time in
substantial quantities, and whether such prices were sufficient to
permit the recovery of all costs within a reasonable period of time. In
accordance with the statute and the Department's practice, we
determined the net comparison market prices for the below-cost test by
subtracting from the gross unit price any applicable movement charges,
discounts, rebates, direct and indirect selling expenses (also
subtracted from the COP), and packing expenses. We also adjusted the
gross unit price for billing adjustments and interest revenue. See
section 773(b) of the Act; see also 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 25063, 25066 (May 5, 2004); unchanged in Certain
Steel Concrete Reinforcing Bars From Turkey: Final Results, Rescission
of Antidumping Duty Administrative Review in Part, and Determination
Not To Revoke in Part, 69 FR 64731 (November 8, 2004).
3. Results of the COP Test
Pursuant to section 773(b)(2)(C)(i) of the Act, where less than 20
percent of
[[Page 62823]]
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 a respondent's sales of a given product
during the POR were at prices less than the COP, we determined such
sales to have been made in ``substantial quantities.'' See section
773(b)(2)(C) of the Act. The sales were made within an extended period
of time in accordance with section 773(b)(2)(B) of the Act, because
they were made over the course of the POR. In such cases, because we
compared prices to POR-average costs, 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 Hylsa, for purposes of this
administrative review, we disregarded below-cost sales of a given
product and used the remaining sales as the basis for determining NV,
in accordance with section 773(b)(1) of the Act. See the October 31,
2007, memorandum to the file, ``Preliminary Calculation Memorandum for
Hylsa S.A. de C.V.'' (``Calculation Memorandum for Hylsa'') from
Jolanta Lawska, Case Analyst, Office of AD/CVD Operations III,
available in the Central Records Unit (``CRU'') Import Administration,
Washington, DC, HCHB Building, Room B for our calculation methodology
and results.
D. Calculation of Normal Value Based on Comparison Market Prices
We calculated NV based on ex-works, FOB or delivered prices to
comparison market customers. We calculated the starting price taking
into account, where necessary, billing adjustments and early payment
discounts. Pursuant to section 773(a)(6)(B)(ii) of the Act, we made
deductions from the starting price, when appropriate, for handling,
loading, inland freight, and inland insurance. In accordance with 19
CFR 351.402, we added interest revenue, where applicable. In accordance
with sections 773(a)(6)(A) and (B) of the Act, we added U.S. packing
costs and deducted comparison market packing, respectively. In
addition, we made circumstance of sale (``COS'') adjustments for direct
expenses, including imputed credit expenses, and warranty expenses in
accordance with section 773(a)(6)(C)(iii) of the Act.
When comparing U.S. sales with comparison market sales of similar,
but not identical, merchandise, we also made adjustments for physical
differences in the merchandise in accordance with section
773(a)(6)(C)(ii) of the Act and 19 CFR 351.411. We based this
adjustment on the difference in the variable cost of manufacturing for
the foreign like product and subject merchandise, using POR-average
costs.
Sales of wire rod purchased by the respondents from unaffiliated
producers and resold in the comparison market were treated in the same
manner described above in the ``Export Price'' section of this notice.
E. Level of Trade
In accordance with section 773(a)(1)(B) of the Act, we determined
NV based on sales in the comparison market at the same level of trade
as the EP sales, to the extent practicable. When there were no sales at
the same LOT, we compared U.S. sales to comparison market sales at a
different LOT.
Pursuant to 19 CFR 351.412, to determine whether comparison market
sales were at a different LOT, we examined stages in the marketing
process and selling functions along the chain of distribution between
the producer and the unaffiliated (or arm's-length) customers. If the
comparison-market sales were at a different LOT and the differences
affect 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 will
make an LOT adjustment under section 773(a)(7)(A) of the Act.
In its questionnaire response, Hylsa did not claim a LOT
adjustment. See Hylsa's Section A questionnaire response dated February
12, 2007, at page 29. Moreover, based on our analysis of the facts of
this administrative review, we preliminarily determine that there is no
substantial difference in the selling functions between the sales on
which NV is based and the export transactions. All of Hylsa's U.S.
sales are reported as EP sales. Thus, we have matched EP sales to sales
in the home market without regard to level of trade and made no level
of trade adjustment.
For a detailed description of our LOT methodology and a summary of
Hylsa's LOT findings for these preliminary results, see page 3 of the
October 31, 2007, calculation memorandum for Hylsa.
Currency Conversion
For purposes of these preliminary results, we made currency
conversions in accordance with section 773A(a) of the Act, based on the
official exchange rates published by the Federal Reserve Bank.
Preliminary Results of Review
As a result of our review, we preliminarily determine that the
following percentage weighted-average margins exist for the period
October 1, 2005, through September 30, 2006:
------------------------------------------------------------------------
Margin
Manufacturer/exporter (percent)
------------------------------------------------------------------------
Hylsa................................................... 17.78
------------------------------------------------------------------------
The Department will disclose calculations performed within five
days of the date of publication of this notice to the parties of this
proceeding in accordance with 19 CFR 351.224(b). An interested party
may request a hearing within 30 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
working day thereafter, unless the Department alters the date pursuant
to 19 CFR 351.310(d). Interested parties may submit case briefs no
later than 30 days after the date of publication of these preliminary
results of review. See 19 CFR 351.310(c). Rebuttal briefs limited to
issues raised in the case briefs, may be filed no later than 35 days
after the date of publication. See 19 CFR 351.310(d). Parties who
submit arguments are requested to submit with the argument (1) a
statement of the issue, and (2) a brief summary of the argument.
Further, parties submitting written comments are requested to provide
the Department with an additional copy of the public version of any
such comments on diskette. The Department will issue the final results
of this administrative review, which will include the results of its
analysis of issues raised in any such comments, or at a hearing, within
120 days of publication of these preliminary results.
Assessment Rate
Upon completion of this administrative review, the Department shall
determine, and U.S. Customs and Border Protection (CBP) shall assess,
antidumping duties on all appropriate entries. After 41 days of
publication of the final results of this administrative review, if any
importer-specific ad valorem rates calculated in the final results are
above de minimis (i.e., at or above 0.5 percent), the Department will
issue appraisement instructions directly to CBP to assess antidumping
duties on appropriate entries. The total customs value is based on the
entered value reported for each importer for all U.S. entries of
subject merchandise purchased during the POR for consumption in the
United States.
[[Page 62824]]
The Department clarified its ``automatic assessment'' regulation on
May 6, 2003. 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 the companies included in these preliminary results 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 or companies involved in the
transaction.
Cash Deposit Requirements
To calculate the cash deposit rate for Hylsa in this administrative
review, we divided the total dumping margins by the total net value for
this company's sales during the review period.
The following deposit rates will be effective upon publication of
the final results of this administrative review for all shipments of
wire rod from Mexico entered, or withdrawn from warehouse, for
consumption on or after the publication date, as provided by section
751(a)(2)(C) of the Act: (1) The cash deposit rates for the companies
listed above will be the rates established in the final results of this
review, except if the rate is less than 0.5 percent and, therefore, de
minimis, the cash deposit will be zero; (2) for previously reviewed or
investigated companies not listed above, the cash deposit rate will
continue to be the company-specific rate published for the most recent
final results in which that manufacturer or exporter participated; (3)
if the exporter is not a firm covered in this review, a prior review,
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 final results for the manufacturer of the merchandise;
and (4) if neither the exporter nor the manufacturer is a firm covered
in this or any previous review conducted by the Department, the cash
deposit rate will be 20.11 percent, the ``All Others'' rate established
in the LTFV investigation. See Notice of Final Determination of Sales
at Less than Fair Value: Carbon and Certain Alloy Steel Wire Rod From
Mexico, 67 FR 55800 (August 30, 2002).
These cash deposit requirements, when imposed, shall remain in
effect until publication of the final results of the next
administrative review.
Notification to Importers
This notice serves as a preliminary reminder to importers of their
responsibility under 19 CFR 351.402(f) to file a certificate regarding
the reimbursement of antidumping duties prior to liquidation of the
relevant entries during this review period. Failure to comply with this
requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
This administrative review is issued and published in accordance
with sections 751(a)(1) and 777(i)(1) of the Act.
Dated: October 31, 2007.
Stephen J. Claeys,
Acting Assistant Secretary for Import Administration.
[FR Doc. E7-21870 Filed 11-6-07; 8:45 am]
BILLING CODE 3510-DS-P