Notice of Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination: Light-Walled Rectangular Pipe and Tube From the Republic of Korea, 5794-5801 [08-415]
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Federal Register / Vol. 73, No. 21 / Thursday, January 31, 2008 / Notices
date of the preliminary determination,
unless extended.
This notice is issued and published
pursuant to sections 733(c)(2) of the Act
and 19 CFR 351.205(f)(1).
DEPARTMENT OF COMMERCE
International Trade Administration
A–570–922
Notice of Postponement of Preliminary
Determination of Antidumping Duty
Investigation: Raw Flexible Magnets
from the People’s Republic of China
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: January 31, 2008.
FOR FURTHER INFORMATION CONTACT:
Melissa Blackledge or Shawn Higgins,
AD/CVD Operations, Office 4, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC, 20230;
telephone: (202) 482–3518 or (202) 482–
0679, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
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Postponement of Preliminary
Determination
On October 18, 2007, the Department
of Commerce (the ‘‘Department’’)
initiated the antidumping duty
investigation of raw flexible magnets
from the People’s Republic of China.
See Notice of Initiation of Antidumping
Duty Investigations: Raw Flexible
Magnets from the People’s Republic of
China and Taiwan, 72 FR 59071 (July
24, 2007) (‘‘Initiation Notice’’). The
notice of initiation stated that, unless
postponed, the Department would make
its preliminary determination in these
antidumping duty investigations no
later than 140 days after the date of the
initiation. See Initiation Notice.
On January 16, 2008, Magnum
Magnetics Corporation (‘‘Petitioner’’)
made a timely request pursuant to 19
CFR 351.205(e) for a fifty–day
postponement of the preliminary
determination in this investigation.
Petitioner requested postponement of
the preliminary determination because
of the complexity of the case, the
Department’s unfamiliarity with the
industry, and the difficult time schedule
ahead.For the reasons identified by the
Petitioner, and because there are no
compelling reasons to deny the request,
the Department is postponing the
preliminary determination under
section 733(c)(1)(A) of the Tariff Act of
1930, as amended (the ‘‘Act’’), by fifty
days from February 29, 2008 to April 19,
2008. However, as that date falls on a
Saturday, the preliminary determination
will be due no later than the next
business day, Monday, April 21, 2008.
The deadline for the final determination
will continue to be 75 days after the
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Dated: January 24, 2008.
David M. Spooner,
Assistant Secretary for Import
Administration.
[FR Doc. E8–1759 Filed 1–30–08; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–580–859]
Notice of Preliminary Determination of
Sales at Less Than Fair Value and
Postponement of Final Determination:
Light-Walled Rectangular Pipe and
Tube From the Republic of Korea
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: January 31, 2008.
SUMMARY: The U.S. Department of
Commerce (the Department)
preliminarily determines that lightwalled rectangular pipe and tube from
the Republic of Korea is being, or is
likely to be, sold in the United States at
less than fair value (LTFV), as provided
in section 733(b) of the Tariff Act of
1930, as amended (the Tariff Act). The
estimated margins of sales at LTFV are
listed in the ‘‘Suspension of
Liquidation’’ section of this notice.
Interested parties are invited to
comment on this preliminary
determination. Pursuant to a request
from Nexteel Co., Ltd. (Nexteel), we are
postponing for 60 days the final
determination and extending
provisional measures from a four-month
period to not more than six months.
Accordingly, we will make our final
determination not later than 135 days
after publication of the preliminary
determination.
FOR FURTHER INFORMATION CONTACT:
David Cordell, (Kukje Steel Co., Ltd.),
Mark Flessner (Nexteel Co., Ltd.), or
Robert James, AD/CVD Operations,
Office 7, Import Administration,
International Trade Administration,
U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW.,
Washington, DC 20230; telephone: (202)
482–0408, (202) 482–6312, or (202) 482–
0649, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On July 17, 2007, the Department
initiated the antidumping duty
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investigation of light-walled rectangular
pipe and tube from the Republic of
Korea. See Initiation of Antidumping
Duty Investigations: Light-Walled
Rectangular Pipe and Tube from the
Republic of Korea, Mexico, Turkey, and
the People’s Republic of China,
(Initiation Notice), 72 FR 40274 (July 24,
2007). The Petitioners in this
investigation are Allied Tube and
Conduit, Atlas Tube, Bull Moose Tube
Company, California Steel and Tube,
EXLTUBE, Hannibal Industries, Leavitt
Tube Company, Maruichi American
Corporation, Searing Industries,
Southland Tube, Vest Inc., Welded
Tube, and Western Tube and Conduit
(Petitioners).
The Department set aside a period of
time for parties to raise issues regarding
product coverage and encouraged all
parties to submit comments. See
Initiation Notice, 72 FR 40274, 40275
(July 24, 2007). No party submitted
comments on the scope.
On August 28, 2007, the United States
International Trade Commission (the
Commission) preliminarily determined
there is a reasonable indication that
imports of light-walled rectangular pipe
and tube from Korea, Mexico and
Turkey are materially injuring the U.S.
industry and notified the Department of
its findings. See Light-Walled
Rectangular Pipe and Tube From China,
Korea, Mexico, and Turkey,
Investigation Nos. 701–TA–449 and
731–TA–1118–1121 (Preliminary), 72
FR 49310 (August 28, 2007).
Section 777A(c)(1) of the Tariff Act
directs the Department to calculate
individual dumping margins for each
known exporter and producer of the
subject merchandise. The Department
identified a large number of producers
and exporters of light-walled
rectangular pipe and tube from the
Republic of Korea (Korea) and
determined that it was not practicable to
examine each known exporter/producer
of the subject merchandise, as provided
in section 777A(c)(2) of the Tariff Act.
The Department sent quantity and value
(Q&V) questionnaires to the companies
identified in the petition, as well as to
other companies identified during our
analysis. On July 31, 2007, the
Department sent Q&V questionnaires to
the following companies: Ahshin Pipe &
Tube, Dong-A Steel Pipe Co. Ltd., Han
Gyu Rae Steel, Co., Ltd., HiSteel Co.
Ltd., Jinbang Steel Co. Ltd., Joong Won,
Kukje Steel Co. (Kukje), Ltd., Miju Steel
Mfg. Co. Ltd., Nexteel, SeAH Steel
Corporation, Ltd. (SeAH), and Yujin
Steel Industry Co.
Ahshin Pipe & Tube mailed its
response by first class mail dated
August 20, 2007, but that letter was not
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submitted as required through our
Central Records Unit, did not include a
complete response to the Department’s
Q&V questionnaire or include the
required certifications, and was not
served on all interested parties.
Consequently, the response did not
comport with 19 CFR 351.103,
351.302(d)(1), 351.303(f)(2) and
351.303(g), and was returned to Ahshin
Pipe & Tube on September 7, 2007.
On August 27, 2007 and September
28, 2007, the Department requested that
Han Gyu Rae Steel Co., Ltd., (Han Gyu
Rae) resubmit its public version of its
response to the Q&V questionnaire
which it had submitted on August 17,
2007, because a proper public version
was not provided. In its September 28,
2007, letter the Department warned Han
Gyu Rae that it may not accept the
response as currently filed and that the
Department may apply facts available in
accordance with section 776 of the
Tariff Act, and pursuant to 19 CFR
351.308. The Department received no
reply from Han Gyu Rae and thus
returned its August 17, 2007,
submission on November 9, 2007.
Furthermore, the Department did not
receive any response at all to either its
July 31, 2007, quantity and value
questionnaire or its August 16, 2007,
follow-up letter from the following
companies: Dong-A Steel Pipe Co. Ltd.,
HiSteel Co. Ltd., Jinbang Steel Co. Ltd.,
Joong Won, Miju Steel Mfg. Co. Ltd.,
and Yujin Steel Industry Co.1
Three respondents—SeAH, Kukje and
Nexteel—responded to the Department’s
Q&V questionnaire. Kukje and Nexteel
accounted for the largest volume of
subject merchandise exported to the
United States during the period of
investigation (POI). Hence, these two
firms were selected as mandatory
respondents pursuant to section
777A(c)(2)(1)(B) of the Tariff Act. See
the September 5, 2007, Memorandum to
Deputy Assistant Secretary Stephen J.
Claeys, entitled ‘‘Antidumping Duty
Investigation on Light-Walled
Rectangular Pipe and Tube from the
Republic of Korea (Korea) (A–580–859),
Respondent Selection’’ (Respondent
Selection Memorandum). We issued
antidumping questionnaires to Kukje
and Nexteel on September 7, 2007.
The Department received the Section
A response from Kukje on October 5,
2007, and from Nexteel on October 10,
2007. Petitioners provided comments on
Kukje’s and Nexteel’s Section A
1 The Department sent its questionnaires and its
follow up letter via an international delivery
service. Records show each of the companies in
question received and signed for the July 31, 2007,
quantity and value questionnaire and the August
16, 2007, follow-up letter.
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responses on October 16, 2007. On
October 19, 2007, the Department issued
Nexteel a supplemental questionnaire
concerning its October 10, 2007, Section
A response. On October 22, 2007, Kukje
informed the Department that Kukje was
unable to respond further to the
antidumping questionnaire. We
received the Sections B and C responses
from Nexteel on October 29, 2007.
Nexteel also responded voluntarily to
Section D, Cost of Production, in this
submission.
On November 9, 2007, Petitioners
provided comments on Nexteel’s
Sections B and C response, and
submitted a cost allegation with respect
to Nexteel. On November 27, 2007, the
Department issued a supplemental
questionnaire to Nexteel concerning
Nexteel’s Sections B and C response, to
which Nexteel responded on December
19, 2007.
On December 7, 2007, the Department
initiated a cost investigation on Nexteel.
See memorandum from Mark Flessner,
Case Analyst, and Christopher J. Zimpo,
Accountant, to Richard O. Weible,
Director, Office 7, entitled ‘‘Petitioners’’
Allegation of Sales Below the Cost of
Production for Nexteel Co. Ltd.,’’ dated
December 7, 2007 (Cost Allegation
Memorandum). On December 21, 2007,
the Department issued a supplemental
questionnaire to Nexteel concerning
Nexteel’s Section D response, to which
Nexteel responded on January 10, 2008.
On December 26, 2007, petitioners
timely filed with the Department an
allegation of targeted dumping for
Nexteel. Nexteel filed comments
regarding petitioners’ allegation on
January 3, 2008. Upon review of
petitioners’ allegation, the Department
determined that further information was
needed in order to adequately analyze
petitioners’ allegation. The Department
issued a supplemental questionnaire to
petitioners on January 14, 2008,
requesting that they address deficiencies
identified by the Department. See Letter
from Richard O. Weible, Director, Office
7, to Petitioners, dated January 14, 2008.
Because there was a need for
supplemental information regarding the
allegation, we do not have sufficient
bases for making a finding of targeted
dumping prior to the January 23, 2008,
deadline for issuance of the preliminary
determination. We intend to address the
allegation in full upon receipt of a
satisfactory response by Petitioners to
our request for additional information.
On October 19, 2007, the Petitioners
requested the Department postpone the
preliminary determination by 50 days
pursuant to 19 CFR 351.205(e). The
Department published a notice of
postponement on November 14, 2007,
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which set the new deadline for the
preliminary determination at January
23, 2008. See Light-Walled Rectangular
Pipe and Tube from Mexico, Turkey,
and the Republic of Korea:
Postponement of Preliminary
Determination of Antidumping Duty
Investigations, 72 FR 64044 (November
14, 2007).
Period of Investigation
The POI is April 1, 2006, to March 31,
2007.
Scope of Investigation
The merchandise that is the subject of
this investigation is certain welded
carbon quality light-walled steel pipe
and tube, of rectangular (including
square) cross section, having a wall
thickness of less than 4 mm.
The term carbon-quality steel
includes both carbon steel and alloy
steel which contains only small
amounts of alloying elements.
Specifically, the term carbon-quality
includes products in which none of the
elements listed below exceeds the
quantity by weight respectively
indicated: 1.80 percent of manganese, or
2.25 percent of silicon, or 1.00 percent
of copper, or 0.50 percent of aluminum,
or 1.25 percent of chromium, or 0.30
percent of cobalt, or 0.40 percent of
lead, or 1.25 percent of nickel, or 0.30
percent of tungsten, or 0.10 percent of
molybdenum, or 0.10 percent of
niobium, or 0.15 percent vanadium, or
0.15 percent of zirconium. The
description of carbon-quality is
intended to identify carbon-quality
products within the scope. The welded
carbon-quality rectangular pipe and
tube subject to this investigation is
currently classified under the
Harmonized Tariff Schedule of the
United States (HTSUS) subheadings
7306.61.50.00 and 7306.61.70.60. While
HTSUS subheadings are provided for
convenience and Customs purposes, our
written description of the scope of this
investigation is dispositive.
Model Match
In accordance with section 771(16) of
the Tariff Act, all products produced by
the respondents covered by the
description in the Scope of Investigation
section, above, and sold in Korea during
the POI are considered to be foreign like
products for purposes of determining
appropriate product comparisons to
U.S. sales.
On August 16, 2007, the Department
asked all parties in the investigation of
light-walled rectangular pipe and tube
from the Republic of Korea and in the
concurrent antidumping duty
investigations of light-walled
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rectangular pipe and tube from Mexico,
Turkey, and the People’s Republic of
China, for comments on the appropriate
product characteristics for defining
individual products; parties in this
investigation and in the concurrent
antidumping duty investigations of
light-walled rectangular pipe and tube
from Mexico and Turkey were also
invited to comment on the appropriate
model matching methodology. See
Letter from Richard Weible, Director,
Office 7, dated August 16, 2007. The
Department received comments from
the Mexican company Perfiles y
Herrajes LM on August 23, 2007; from
the Mexican companies Productos
Laminados de Monterrey S.A. de C.V.
and Prolamsa USA, Inc. on August 24,
2007 August 27, 2007 and September 4,
2007; from the Turkish company Noksel
Celik Boru Sanayi A.S. on August 24,
2007; from the Chinese producer/
exporter Zhangjiagang Zhongyuan PipeMaking Co., Ltd.; and from the
Petitioners on August 24, 2007. The
Department did not make any changes
to its proposed characteristics and
model matching methodology as a result
of the comments submitted by parties.
We have relied on six criteria to
match U.S. sales of subject merchandise
to comparison market sales of the
foreign like product: steel input type,
whether metallic coated or not, whether
painted or not, perimeter, wall thickness
and shape. 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.
Use of Facts Otherwise Available
For the reasons discussed below, we
determine the use of adverse facts
available (AFA) is appropriate for the
preliminary determination with respect
to the following nine companies: DongA Steel Pipe Co. Ltd., HiSteel Co. Ltd.,
Jinbang Steel Co. Ltd., Joong Won, Miju
Steel Mfg. Co. Ltd., Yujin Steel Industry
Co., Ahshin Pipe & Tube, Han Gyu Rae,
and Kukje. As noted in the
Supplementary Information section
above, the first six companies failed to
respond to the Department’s Q&V
questionnaire and to the Department’s
follow up letter of August 16, 2007.
Ahshin Pipe & Tube submitted an
improper, incomplete, and untimely
Q&V questionnaire response that the
Department returned; Han Gyu Rae
failed to resubmit its August 17, 2007
Q&V response and the Department
returned Han Gyu Rae’s Q&V
submission on November 9, 2007. On
October 22, 2007, Kukje informed the
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Department that it was unable to
respond further to the antidumping
questionnaire.
Section 776(a)(2) of the Tariff Act
provides that, if an interested party
withholds information requested by the
administering authority, fails to provide
such information by the deadlines for
submission of the information and in
the form or manner requested, subject to
subsections (c)(1) and (e) of section 782,
significantly impedes a proceeding
under this title, or provides such
information but the information cannot
be verified as provided in 782(I), the
administering authority shall use,
subject to section 782(d) of the Tariff
Act, facts otherwise available in
reaching the applicable determination.
Section 782(d) of the Tariff Act provides
that, if the administering authority
determines a response to a request for
information does not comply with the
request, the administering authority
shall promptly inform the responding
party and provide an opportunity to
remedy the deficient submission.
Section 782(e) of the Tariff Act states
further that the Department shall not
decline to consider submitted
information if all of the following
requirements are met: (1) The
information is submitted by the
established deadline; (2) the information
can be verified; (3) the information is
not so incomplete that it cannot serve as
a reliable basis for reaching the
applicable determination; (4) the
interested party has demonstrated that it
acted to the best of its ability; and (5)
the information can be used without
undue difficulties.
In this case, Dong-A Steel Pipe Co.
Ltd., HiSteel Co. Ltd., Jinbang Steel Co.
Ltd., Joong Won, Miju Steel Mfg. Co.
Ltd., Yujin Steel Industry Co., Ahshin
Pipe & Tube, and Han Gyu Rae all failed
to provide necessary information by the
deadlines for submission of the
information and/or in the form or
manner requested. Thus, for these eight
companies in reaching our preliminary
determination, pursuant to sections
776(a)(2)(A), (B), and (C) of the Tariff
Act, we have based the dumping margin
on facts otherwise available.
Kukje, one of the mandatory
respondents, did not provide pertinent
information we requested that is
necessary to calculate an antidumping
margin for the preliminary
determination. Specifically, Kukje failed
to provide a complete response to our
questionnaire, thereby withholding,
among other things, home-market and
U.S. sales information that is necessary
for reaching the applicable
determination, pursuant to section
776(a)(2)(A) of the Tariff Act. Thus, in
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reaching our preliminary determination,
pursuant to sections 776(a)(2)(A), (B),
and (C) of the Tariff Act, we have based
the dumping margin for Kukje on facts
otherwise available.
Application of Adverse Inferences for
Facts Available
According to section 776(b) of the
Tariff Act, if the Department finds that
an interested party fails to cooperate by
not acting to the best of its ability to
comply with requests for information,
the Department may use an inference
that is adverse to the interests of that
party in selecting from the facts
otherwise available. See Notice of Final
Results of Antidumping Duty
Administrative Review: Stainless Steel
Bar from India, 70 FR 54023, 54025–26
(September 13, 2005); see also Notice of
Final Determination of Sales at Less
Than Fair Value and Final Negative
Critical Circumstances: Carbon and
Certain Alloy Steel Wire Rod from
Brazil, 67 FR 55792, 55794–96 (August
30, 2002). It is the Department’s practice
to apply adverse inferences to ensure
that the party does not obtain a more
favorable result by failing to cooperate
than if it had cooperated fully. See, e.g.,
id. Furthermore, ‘‘affirmative evidence
of bad faith on the part of a respondent
is not required before the Department
may make an adverse inference.’’ See
Antidumping Duties; Countervailing
Duties; Final Rule, 62 FR 27296, 27340
(May 19, 1997); see also Nippon Steel
Corp. v. United States, 337 F.3d 1373,
1382–83 (Fed. Cir. 2003) (Nippon); see
also Certain Polyester Staple Fiber from
Korea: Final Results of the 2005–2006
Antidumping Duty Administrative
Review, 72 FR 69663, 69664 (December
10, 2007).
Although the Department provided all
respondents, including Dong-A Steel
Pipe Co. Ltd., HiSteel Co. Ltd., Jinbang
Steel Co. Ltd., Joong Won, Miju Steel
Mfg. Co. Ltd., Yujin Steel Industry Co.,
Ahshin Pipe & Tube, Han Gyu Rae and
Kukje, with notice informing them of
the consequences of their failure to
respond adequately to the questionnaire
in this case, pursuant to section 782(d)
of the Tariff Act, the companies listed
above did not respond as requested.
This constitutes a failure on the part of
these companies to cooperate to the best
of their ability to comply with a request
for information by the Department
within the meaning of section 776(b) of
the Tariff Act.2 Based on the above, the
2 As noted earlier, the Department sent its
quantity and value questionnaires and its follow up
leeter via an international delivery service and
records show that each of the companies in
question received and signed for the July 31, 2007,
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Department has preliminarily
determined that Dong-A Steel Pipe Co.
Ltd., HiSteel Co. Ltd., Jinbang Steel Co.
Ltd., Joong Won, Miju Steel Mfg. Co.
Ltd., Yujin Steel Industry Co., Ahshin
Pipe & Tube, Han Gyu Rae and Kukje
failed to cooperate to the best of their
ability and, therefore, in selecting from
among the facts otherwise available, an
adverse inference is warranted. See, e.g.,
Notice of Final Determination of Sales
at Less than Fair Value: Circular
Seamless Stainless Steel Hollow
Products from Japan, 65 FR 42985,
42986 (July 12, 2000) (the Department
applied total AFA where the respondent
failed to respond to the antidumping
questionnaire).
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Selection and Corroboration of
Information Used as Facts Available
Where the Department applies AFA
because a respondent failed to cooperate
by not acting to the best of its ability to
comply with a request for information,
section 776(b) of the Tariff Act
authorizes the Department to rely on
information derived from the petition, a
final determination, a previous
administrative review, or other
information placed on the record. See
also 19 CFR 351.308(c). It is the
Department’s practice to use the highest
rate from the petition in an investigation
when a respondent fails to act to the
best of its ability to provide the
necessary information. See, e.g., Notice
of Preliminary Determination of Sales at
Less Than Fair Value and Postponement
of Final Determination: Purified
Carboxymethylcellulose From Finland,
69 FR 77216 (December 27, 2004)
(unchanged in Notice of Final
Determination of Sales at Less Than
Fair Value: Purified
Carboxymethylcellulose From Finland,
70 FR 28279 (May 17, 2005)). Therefore,
because an adverse inference is
warranted, we have assigned to Dong-A
Steel Pipe Co. Ltd., HiSteel Co. Ltd.,
Jinbang Steel Co. Ltd., Joong Won, Miju
Steel Mfg. Co. Ltd., Yujin Steel Industry
Co., Ahshin Pipe & Tube, Han Gyu Rae
and Kukje the highest margin alleged in
the petition, as referenced in the
Initiation Notice, of 30.66 percent. See
Initiation Notice at 40278.
When using facts otherwise available,
section 776(c) of the Tariff Act provides
that when the Department relies on
secondary information (such as the
petition) rather than on information
obtained in the course of an
investigation, it must corroborate, to the
extent practicable, information from
quantity and value questionnaire and the August
16, 2007, follow-up letter.
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18:07 Jan 30, 2008
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independent sources that are reasonably
at its disposal.
To ‘‘corroborate’’ means that the
Department will satisfy itself that the
secondary information to be used has
probative value. See Statement of
Administrative Action accompanying
the Uruguay Round Agreements Act,
H.R. Doc. No. 103–316, vol. 1 (1994) at
870 (SAA), reprinted in 1994
U.S.C.C.A.N. 4040, 4198–4199. As
stated in Tapered Roller Bearings and
Parts Thereof, Finished and Unfinished,
from Japan, and Tapered Roller
Bearings, Four Inches or Less in Outside
Diameter, and Components Thereof,
from Japan; Preliminary Results of
Antidumping Duty Administrative
Reviews and Partial Termination of
Administrative Reviews, 61 FR 57391,
57392 (November 6, 1996) (unchanged
in Tapered Roller Bearings and Parts
Thereof, Finished and Unfinished, From
Japan, and Tapered Roller Bearings,
Four Inches or Less in Outside
Diameter, and Components Thereof,
From Japan; Final Results of
Antidumping Duty Administrative
Reviews and Termination in Part, 62 FR
11825, 11843 (March 13, 1997)), to
corroborate secondary information, the
Department will examine, to the extent
practicable, the reliability and relevance
of the information used. The
Department’s regulations state that
independent sources used to corroborate
such evidence may include, for
example, published price lists, official
import statistics and customs data, and
information obtained from interested
parties during the particular
investigation. See 19 CFR 351.308(d).
For the purposes of this investigation,
to the extent appropriate information
was available, we reviewed the
adequacy and accuracy of the
information in the Petition during our
pre-initiation analysis and for purposes
of this preliminary determination. See
Initiation Checklist. We examined
evidence supporting the calculations in
the Petition to determine the probative
value of the margins alleged in the
Petition for use as AFA for purposes of
this preliminary determination. During
our pre-initiation analysis we examined
the key elements of the export price and
normal value calculations used in the
Petition to derive margins. During our
pre-initiation analysis we also examined
information from various independent
sources provided either in the Petition
or in supplements to the Petition that
corroborates key elements of the export
price and normal value calculations
used in the Petition to derive estimated
margins.
Specifically, the Petitioners calculated
an export price using U.S. price quotes
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it obtained for light-walled rectangular
pipe and tube from Korea. These price
quotes identify the price that the first
U.S. purchaser unaffiliated with the
foreign producer, i.e., the international
trader/importer, offered to its customer.
The Petitioners also calculated a second
export price using the average monthly
Customs Unit Values (AUVs) ((Free
Alongside Ship) (F.A.S.)) of light-walled
rectangular pipe and tube from Korea
for consumption in the United States,
classified under HTSUS numbers
7306.60.50.00 and 7306.61.50.00,
gathered from the Bureau of the Census
IM145 import statistics. We then
compared the U.S. price quote to the
AUVs for this period and confirmed that
the value of the U.S. price quote was
consistent with the AUV’s. Further, we
obtained no other information that
would make us question the reliability
of the pricing information provided in
the Petition.
The Petitioners adjusted export prices
for international freight and dealer
mark-up. The Petitioners used the
difference between the F.A.S. and C.I.F.
AUVs for imports from Korea to the
United States to calculate international
freight costs. See Petition at page II–10;
see also July 6, 2007 Supplement to the
Petition at 6. These data are from the
U.S. Customs and Border Protection
(CBP) and the U.S. Census Bureau,
which are sources of information that
we consider reliable. See, e.g., Notice of
Preliminary Determination of Sales at
Less Than Fair Value: Superalloy
Degassed Chromium from Japan, 70 FR
48538, 48540 (August 18, 2005),
(unchanged in Notice of Final
Determination of Sales at Less Than
Fair Value: Superalloy Degassed
Chromium from Japan, 70 FR 65886
(November 1, 2005)). Further, we
obtained no other information that
would make us question the reliability
of the adjusted information provided in
the Petition. The Petitioners estimated
the distributor mark-up based on
Searing Industries sales personnel’s
knowledge of importer’s mark-ups in
the domestic light-walled rectangular
tubing industry. The Petitioners
provided an affidavit from persons
attesting to the validity of the distributor
mark-up value the Petitioners used in
the calculation of net U.S. price. See
Initiation Checklist at 9.
Based on our examination of the
aforementioned information, we
consider the Petitioners’ calculation of
net U.S. prices corroborated.
With respect to normal value, the
Petitioners derived Korean home market
prices from a January 2007 edition of
the Korean Metal Journal, a recognized
industry journal; no evidence on the
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record questions the validity of this
source. Two series of prices were listed:
a ‘‘consumer’’ price (based on
destination) and a ‘‘wholesale price.’’ As
a conservative measure, the lowervalued wholesale price was selected;
this is more reflective of sales to
distributors. Prices were quoted in won
per meter and were converted into U.S.
dollars using an average dollar weight
for the proposed POI. The prices were
also converted from meters to hundredpound-weight (cwt), as cwt is the weight
by which the subject merchandise is
typically sold in the United States.
Petitioners claim the delivery term for
the wholesale price is ex-factory as
demonstrated by the single price for all
regions of the country, whereas
consumer prices vary by different
regions of the country suggesting the
inclusion of freight. Petitioners note the
products for which they obtained U.S.
prices fall within the product category
used for Normal Value (NV) from the
Korean Metal Journal. See Volume II of
the Petition at pages 9–10 and Exhibits
II 21–23 and Volume II of the
Supplement to the Petition dated July 6,
2007 at pages 1–2 and Exhibit 1.
Based on our examination of the
aforementioned information, we
consider the Petitioners’ calculation of
net home market prices corroborated.
We also examined information
obtained from interested parties to
corroborate the home market and U.S.
prices. Margin percentages calculated
for Nexteel exceeded those from the
Petition.
Therefore, because we confirmed the
accuracy and validity of the information
underlying the derivation of margins in
the Petition by examining source
documents, publicly available
information, and primary information
submitted by respondent Nexteel, we
preliminarily determine that the
margins in the Petition are reliable for
the purposes of this investigation.
In making a determination as to the
relevance aspect of corroboration, the
Department will consider information
reasonably at its disposal as to whether
there are circumstances that would
render a margin not relevant. Where
circumstances indicate the selected
margin is not appropriate as adverse
facts available, the Department will
disregard the margin and determine an
appropriate margin. For example, in
Fresh Cut Flowers from Mexico: Final
Results of Antidumping Duty
Administrative Review, 61 FR 6812
(February 22, 1996), the Department
disregarded the highest margin as ‘‘best
information available’’ (the predecessor
to ‘‘facts available’’) because the margin
was based on another company’s
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uncharacteristic business expense that
resulted in an unusually high dumping
margin.
In American Silicon Technologies v.
United States, 273 F. Supp. 2d 1342,
1346 (CIT 2003), the court affirmed
Commerce’s adverse facts-available rate,
noting that it bore a ‘‘rational
relationship’’ to the respondent’s
‘‘commercial practices,’’ and was,
therefore, relevant. As described above,
in the pre-initiation stage of this
investigation, we confirmed the
calculation of margins in the Petition
reflects commercial practices of the
particular industry during the period of
investigation. Further, no information
has been presented in the investigation
that calls into question the relevance of
this information. As such, we
preliminarily determine the highest
margin in the Petition, which we
determined during our pre-initiation
analysis was based on adequate and
accurate information and which we
have corroborated for purposes of this
preliminary determination, is relevant
as the adverse facts-available rate for
Dong-A Steel Pipe Co. Ltd., HiSteel Co.
Ltd., Jinbang Steel Co. Ltd., Joong Won,
Miju Steel Mfg. Co. Ltd., Yujin Steel
Industry Co., Ahshin Pipe & Tube, Han
Gyu Rae and Kukje in this investigation.
Similar to our position in
Polyethylene Retail Carrier Bags from
Thailand: Preliminary Results of
Antidumping Duty Administrative
Review, 71 FR 53405, 53407 (September
11, 2006) (unchanged in Polyethylene
Retail Carrier Bags from Thailand: Final
Results of Antidumping Duty
Administrative Review, 72 FR 1982
(January 17, 2007)), because this is the
first proceeding involving these
companies, there are no probative
alternatives. Accordingly, by using
information that was corroborated in the
pre-initiation stage of this investigation
and preliminarily determined to be
relevant to Dong-A Steel Pipe Co. Ltd.,
HiSteel Co. Ltd., Jinbang Steel Co. Ltd.,
Joong Won, Miju Steel Mfg. Co. Ltd.,
Yujin Steel Industry Co., Ahshin Pipe &
Tube, Han Gyu Rae and Kukje in this
investigation, we have corroborated the
adverse facts-available rate ‘‘to the
extent practicable.’’ See section 776(c)
of the Tariff Act, 19 CFR 351.308(d), and
NSK Ltd. v. United States, 346 F. Supp.
2d 1312, 1336 (CIT 2004) (stating,
‘‘pursuant to the ‘to the extent
practicable’ language * * * the
corroboration requirement itself is not
mandatory when not feasible’’).
Therefore, we find that the estimated
margin of 30.66 percent in the Initiation
Notice has probative value.
Consequently, in selecting AFA with
respect to Dong-A Steel Pipe Co. Ltd.,
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HiSteel Co. Ltd., Jinbang Steel Co. Ltd.,
Joong Won, Miju Steel Mfg. Co. Ltd.,
Yujin Steel Industry Co., Ahshin Pipe &
Tube, Han Gyu Rae and Kukje, we have
applied the margin rate of 30.66 percent,
the highest estimated dumping margin
set forth in the notice of initiation. See
Initiation Notice, 72 FR at 40278.
Date of Sale
Section 351.401(i) of the Department’s
regulations states the Department
normally will use the date of invoice, as
recorded in the producer’s or exporter’s
records kept in the ordinary course of
business, as the date of sale. The
regulations further provide that the
Department may use a date other than
the date of the invoice if the Secretary
is satisfied that a different date better
reflects the date on which the material
terms of sale are established. See 19 CFR
351.401(I). The Department has a longstanding practice of finding that, where
shipment date precedes invoice date,
shipment date better reflects the date on
which the material terms of sale are
established. See Notice of Final
Determination of Sales at Less Than
Fair Value and Negative Final
Determination of Critical
Circumstances: Certain Frozen and
Canned Warmwater Shrimp from
Thailand, 69 FR 76918 (December 23,
2004), and accompanying Issues and
Decision Memorandum at Comment 10;
Notice of Final Determination of Sales
at Less Than Fair Value: Structural Steel
Beams from Germany, 67 FR 35497
(May 20, 2002), and accompanying
Issues and Decision Memorandum at
Comment 2; Notice of Final
Determination of Sales at Less Than
Fair Value: Certain Hot-Rolled FlatRolled Carbon Quality Steel Products
From Brazil, 64 FR 38756, 38767 (July
19, 1999). Nexteel maintains the
quantity is fixed on the date of shipment
from its factory but that the price is only
finalized when Nexteel issues the
commercial and tax invoices. The
issuance of commercial and tax invoices
is frequently after shipment, but was not
before shipment for any POI sales in
both the home and U.S. markets.
Therefore, Nexteel has reported the date
of shipment from its factory as the date
of sale under the field SALEDATH. See
Nexteel’s Section B response dated
October 29, 2007, at pages B–14 to B–
15. However, since the material terms of
sale are not finalized until issuance of
the commercial invoice, we have
preliminarily determined to use date of
invoice as the date of sale in both the
home and U.S. markets. See Nexteel’s
supplemental Section B response dated
December 26, 2007, at pages 17 to 18.
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Fair Value Comparisons
To determine whether sales of subject
merchandise from Korea were made in
the United States at less than NV, we
compared the export price (EP) to the
NV, as described in the U.S. Price and
Normal Value sections below. In
accordance with section 777A(d)(1) of
the Tariff Act, we calculated the
weighted-average prices for NV and
compared these to the weighted-average
of EP.
U.S. Price
For the price to the United States, we
used EP in accordance with section
772(a) of the Tariff Act. Pursuant to
section 772(a) of the Tariff Act, we used
the EP methodology when the
merchandise was sold by the producer
or exporter outside the United States
directly to the first unaffiliated
purchaser in the United States prior to
importation and when constructed
export price (CEP) was not otherwise
warranted based on the facts on the
record. Nexteel has no affiliate in the
United States and reports all its sales as
EP sales. See Nexteel’s Section C
response at page C–9. Nothing on the
record indicates that Nexteel’s U.S.
market sales are CEP sales, so we did
not use the CEP methodology. We based
EP on the packed prices charged to the
unaffiliated Korean trading companies
(as Nexteel knew the merchandise it
was selling to that trading company was
destined for the United States). See
Nexteel’s Section A questionnaire
response dated October 9, 2007, at page
A–11; see also Wonderful Chemical
Industrial, Ltd., et al. v. United States,
259 F. Supp. 2d 1273, 1279 (Ct. Intl.
Trade 2003). There were no reported
billing adjustments or duty drawback
claims.
In accordance with section 772(c)(2)
of the Tariff Act, we make deductions,
where appropriate, for movement
expenses including inland freight and
brokerage expenses from plant to
delivery. Due to the nature of Nexteel’s
U.S. sales (all were made to unaffiliated
Korean trading companies who took
possession at the Korean port), however,
Nexteel had no expenses from plant to
delivery other than transportation.
rwilkins on PROD1PC63 with NOTICES
Normal Value
A. Home Market Viability and
Comparison Market Selection
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 Nexteel’s
volume of home market sales of the
foreign like product to the volume of its
U.S. sales of the subject merchandise.
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Pursuant to section 773(a)(1)(B)(ii)(II) of
the Tariff Act, because Nexteel 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.
5799
1. Calculation of Cost of Production
In accordance with section 773(b)(3)
of the Tariff Act, we calculated
Nexteel’s COP based on the sum of its
costs of materials and conversion for the
foreign like product, plus amounts for
general and administrative (G&A)
expenses and interest expenses (see the
Test of Comparison Market Sales Prices
B. Arm’s-Length Test
section below for the treatment of home
market selling expenses).
Nexteel reported sales of the foreign
The Department relied upon Nexteel’s
like product to affiliated customers. The
COP and CV information from the
Department calculates NV based on a
company’s submission dated January
sale to an affiliated party only if it is
10, 2008. To determine COP, the
satisfied that the price to the affiliated
reported cost of manufacturing data
party is comparable to the price at
(TOTCOM) were adjusted by
which sales are made to parties not
affiliated with the producer or exporter, incorporating G&A expenses and
i.e., the sales were at ‘‘arm’s length.’’ See financial expenses based on Nexteel’s
financial statements, and included in
19 CFR 351.403(c). To test whether
Nexteel’s section D response at Exhibits
these sales were made at arm’s length,
D–9 and D–10, respectively.
we compared the prices of sales to
affiliated and unaffiliated customers net 2. Test of Comparison Market Sales
Prices
of all movement charges, direct selling
expenses, discounts and packing. Id. In
On a product-specific basis, we
accordance with the Department’s
compared the adjusted weightedcurrent practice, if the prices charged to average COP to the home market sales
an affiliated party were, on average,
prices of the foreign like product, as
between 98 and 102 percent of the
required under section 773(b) of the
prices charged to unaffiliated parties for Tariff Act, in order to determine
merchandise identical or most similar to whether the sale prices were below the
that sold to the affiliated party, we
COP. The prices were exclusive of any
considered the sales to be at arm’sapplicable movement charges, direct
length prices and included such sales in and indirect selling expenses, and
the calculation of NV. Conversely,
packing expenses.
where sales to the affiliated party did
3. Results of the COP Test
not pass the arm’s-length test, all sales
In determining whether to disregard
to that affiliated party would be
home market sales made at prices below
excluded from the NV calculation. See
the COP, we examined, in accordance
19 CFR 351.403(c) see also
with sections 773(b)(1)(A) and (B) of the
Antidumping Proceedings: Affiliated
Tariff Act, whether, within an extended
Party Sales in the Ordinary Course of
period of time, such sales were made in
Trade, 67 FR 69186 (November 15,
substantial quantities, and whether such
2002), and memorandum from Mark
sales were made at prices which
Flessner, Case Analyst, to the file
permitted the recovery of all costs
entitled, ‘‘Preliminary Determination of
within a reasonable period of time.
Sales at Less Than Fair Value of LightWalled Rectangular Pipe and Tube from Pursuant to section 773(b)(2)(c) of the
Tariff Act, where less than 20 percent of
the Republic of Korea,’’ dated January
the respondent’s home market sales of a
23, 2008 (Analysis Memorandum). No
given model were at prices below the
such sales were excluded for Nexteel.
COP, we did not disregard any belowcost sales of that model because we
C. Cost of Production Analysis
determined that the below-cost sales
Based on our analysis of the
were not made within an extended
Petitioners’ allegation, we found that
period of time in ‘‘substantial
there were reasonable grounds to
quantities.’’ Where 20 percent or more
believe or suspect that Nexteel’s sales of of the respondent’s home market sales
light-walled rectangular pipe and tube
of a given model were at prices less than
in the home market were made at prices COP, we disregarded the below-cost
below their COP. Accordingly, pursuant sales because: (1) They were made
to section 773(b) of the Tariff Act, we
within an extended period of time in
initiated a sales-below-cost investigation ‘‘substantial quantities,’’ in accordance
to determine whether Nexteel had sales
with sections 773(b)(2)(B) and (C) of the
that were made at prices below their
Tariff Act, and (2) based on our
respective COPs. See Cost Allegation
comparison of prices to the weightedaverage COPs for the POR, they were at
Memorandum.
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prices which would not permit the
recovery of all costs within a reasonable
period of time, in accordance with
section 773(b)(2)(D) of the Tariff Act.
Our cost test indicated that for certain
Nexteel models, 20 percent or more of
the home market sales volume (by
weight) were sold at prices below COP
within an extended period of time and
were at prices which would not permit
the recovery of all costs within a
reasonable period of time. Thus, in
accordance with section 773(b)(1) of the
Tariff Act, we excluded these belowcost sales from our analysis and used
the remaining above-cost sales in the
calculation of NV.
D. Calculation of Normal Value Based
on Comparison Market Prices
We based home market prices on
packed prices to unaffiliated purchasers
in Korea. We adjusted the starting price
for inland freight, warehouse expense,
and warehouse revenue, where
appropriate, pursuant to section
773(a)(6)(B)(ii) of the Tariff Act. In
addition, for comparisons made to EP
sales, we made adjustments for
differences in circumstances of sale
(COS) pursuant to section
773(a)(6)(C)(iii) of the Tariff Act. We
made COS adjustments by deducting
direct selling expenses incurred for
home market sales (credit expense) and
adding U.S. direct selling expenses
(credit and other direct selling
expenses), where appropriate. See 19
CFR 351.410(c).
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 Tariff 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. See
19 CFR 351.411(b).
rwilkins on PROD1PC63 with NOTICES
E. Level of Trade/Constructed Export
Price Offset
In accordance with section
773(a)(1)(B)(i) of the Tariff Act, to the
extent practicable, we determine NV
based on sales in the comparison market
at the same level of trade (LOT) as the
EP or CEP transaction. In identifying
LOTs for EP and comparison market
sales (i.e., NV based on home market),
we consider the starting prices before
any adjustments. For CEP sales, we
consider only the selling activities
reflected in the price after the deduction
of expenses and profit under section
772(d) of the Tariff Act. See Micron
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18:07 Jan 30, 2008
Jkt 214001
Technology, Inc. v. United States, 243
F.3d 1301, 1314 (Fed. Cir. 2001).
To determine whether NV sales are at
a different LOT than EP or CEP
transactions, 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 Tariff Act. For CEP sales, if the NV
level is more remote from the factory
than the CEP level and there is no basis
for determining whether the difference
in the levels between NV and CEP
affects price comparability, we adjust
NV under section 773(a)(7)(B) of the
Tariff Act (the CEP offset provision).
Nexteel reported sales through one LOT
corresponding to two channels of
distribution in the home market. In the
U.S. market, Nexteel reported one LOT
corresponding to one channel of
distribution for the EP sales made
through unaffiliated Korean trading
companies (as stated above, there were
no CEP sales during the POI). In our
analysis, we determined that there is
one LOT in the home market and one
LOT in the U.S. market. Nexteel did not
claim that there were differing LOTs in
the home and U.S. markets. Our
analysis of the various selling functions
indicates no differing LOTs in the home
and U.S. markets. See Nexteel’s section
A questionnaire response dated October
9, 2007, at Exhibit A–5; Nexteel’s
Selling Function Chart shows the same
level of activity in each market for every
function listed in this exhibit. We have
therefore preliminarily determined that
sales to the U.S. and home markets were
made at the same LOT, and as a result,
no LOT adjustment was warranted.
Currency Conversion
We made currency conversions into
U.S. dollars in accordance with section
773A(a) of the Tariff Act based on
exchange rates in effect on the dates of
the U.S. sales, as certified by the Federal
Reserve Bank.
All-Others Rate
Section 735(c)(5)(B) of the Tariff Act
states: ‘‘If the estimated weighted
average dumping margins established
for all exporters and producers
individually investigated are zero or de
minimis margins, or are determined
entirely under section 776, the
administering authority may use any
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Sfmt 4703
reasonable method to establish the
estimated all-others rate for exporters
and producers not individually
investigated, including averaging the
estimated weighted average dumping
margins determined for the exporters
and producers individually
investigated.’’ Nexteel is the only
respondent in this investigation for
which the Department has calculated a
company-specific rate. This rate,
however, is de minimis. Nine remaining
companies all received a margin based
entirely on AFA under section 776 of
the Tariff Act. One company, SeAH,
will receive the all-others rate (i.e., its
rate was not calculated, as stated above).
Therefore, for purposes of determining
the all-others rate, because there are no
other rates than de minimis or those
based on AFA, we have reasonably
determined to take a simple average of
the AFA rate (30.66 percent) and the de
minimis rate calculated for Nexteel (1.30
percent); therefore, 15.98 percent is the
average to be assigned for the all-others
rate, as referenced in the Suspension of
Liquidation section, below.
Verification
As provided in section 782(i) of the
Tariff Act, we intend to verify
information upon which we will rely in
making our final determination.
Preliminary Determination
We preliminarily determine the
following weighted-average dumping
margins exist for the period April 1,
2006 through March 31, 2007:
Producer/exporter
Nexteel Co., Ltd. ...................
Dong-A Steel Pipe Co. Ltd. ..
HiSteel Co. Ltd. ....................
Jinbang Steel Co. Ltd. ..........
Joong Won ...........................
Miju Steel Mfg. Co., Ltd. .......
Yujin Steel Industry Co. ........
Ahshin Pipe & Tube .............
Han Gyu Rae Steel Co., Ltd.
Kukje Steel Co., Ltd. ............
SeAH Steel Corporation, Ltd.
All others ...............................
Weightedaverage
margin
(percentage)
* 1.30
30.66
30.66
30.66
30.66
30.66
30.66
30.66
30.66
30.66
15.98
15.98
* (de minimis).
Suspension of Liquidation
In accordance with section 733(d)(2)
of the Act, we are directing U.S.
Customs and Border Protection (CBP) to
suspend liquidation of all entries of
LWR pipe and tube from the Republic
of Korea, with the exception of those
produced by Nexteel Co., Ltd. and
exported by Nexteel Co., Ltd. or either
of the two exporters named in its
questionnaire responses, that are
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entered, or withdrawn from warehouse,
for consumption on or after the date of
publication of this notice in the Federal
Register. We will instruct CBP to
require a cash deposit or the posting of
a bond equal to the weighted-average
dumping margin, as indicated in the
chart above, as follows: (1) The rate for
the firms listed above (except for
Nexteel, see below) will be the rate we
have determined in this preliminary
determination; (2) if the exporter is not
a firm identified in this investigation,
but the producer is, the rate will be the
rate established for the producer of the
subject merchandise; (3) the rate for all
other producers or exporters will be
15.98 percent. These suspension-ofliquidation instructions will remain in
effect until further notice.
In accordance with 19 CFR
351.204(e)(2), because the weightedaverage margin for Nexteel is de
minimis, we will instruct CBP not to
suspend liquidation of merchandise
produced by Nexteel Co., Ltd. and
exported by Nexteel Co., Ltd. or either
of the two exporters named in its
questionnaire responses.
Commission Notification
In accordance with section 733(f) of
the Tariff Act, we have notified the
Commission of the Department’s
preliminary affirmative determination.
If the Department’s final determination
is affirmative, the Commission will
determine before the later of 120 days
after the date of this preliminary
determination or 45 days after our final
determination whether imports of lightwalled rectangular pipe and tube from
Korea are materially injuring, or
threaten material injury to, the U.S.
industry. Because we have postponed
the deadline for our final determination
to 135 days from the date of the
publication of this preliminary
determination, the Commission will
make its final determination within 45
days of our final determination.
rwilkins on PROD1PC63 with NOTICES
Disclosure
In accordance with 19 CFR
351.224(b), the Department will disclose
to interested parties the calculations
performed in this preliminary
determination within five days of the
date of the public announcement.
Public Comment
Interested parties are invited to
comment on the preliminary
determination. Interested parties may
submit case briefs to the Department no
later than seven days after the date of
the issuance of the final verification
report in this proceeding. See 19 CFR
351.309(c)(1)(i). Rebuttal briefs, limited
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to the issues raised in the case briefs,
must be filed within five days from the
deadline date for the submission of case
briefs. See 19 CFR 351.309(d)(1) and (2).
A list of authorities used, a table of
contents, and an executive summary of
issues should accompany any briefs
submitted to the Department. Executive
summaries should be limited to five
pages total, including footnotes. Further,
we request that parties submitting briefs
and rebuttal briefs provide the
Department with a copy of the public
version of such briefs on diskette. In
accordance with section 774 of the
Tariff Act, the Department will hold a
public hearing, if requested, to afford
interested parties an opportunity to
comment on arguments raised in case or
rebuttal briefs, provided that such a
hearing is requested by an interested
party. If a request for a hearing is made
in this investigation, the hearing will
tentatively be held two days after the
rebuttal brief deadline date at the U.S.
Department of Commerce, 14th Street
and Constitution Avenue, NW.,
Washington, DC 20230, at a time and
place to be determined. However,
parties should confirm by telephone, the
date, time, and location of the hearing
48 hours before the scheduled date.
Interested parties who wish to request
a hearing, or to participate in a hearing
if one is requested, must submit a
written request to the Assistant
Secretary for Import Administration,
U.S. Department of Commerce, Room
1870, within 30 days of the 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 the issues
to be discussed. See 19 CFR 351.310(c).
At the hearing, oral presentations will
be limited to issues raised in the briefs.
Postponement of Final Determination
and Extension of Provisional Measures
Pursuant to section 735(a)(2) of the
Tariff Act, on January 3, 2008, Nexteel,
which accounted for a significant
proportion of exports of light-walled
rectangular pipe and tube, requested
that in the event of an affirmative
preliminary determination in this
investigation, the Department postpone
its final determination by 60 days. At
the same time, Nexteel requested that
the Department extend by 60 days the
application of the provisional measures.
See Section 735(a)(2) of the Tariff Act
and 19 CFR 351.210(e)(2). In accordance
with section 733(d) of the Tariff Act and
19 CFR 351.210(b)(2)(ii), because (1) our
preliminary determination is
affirmative, (2) the requesting exporter
accounts for a significant proportion of
exports of the subject merchandise, and
PO 00000
Frm 00013
Fmt 4703
Sfmt 4703
5801
(3) no compelling reasons for denial
exist, we are granting Nexteel’s request
and are postponing the final
determination until no later than 135
days after the publication of this notice
in the Federal Register. Suspension of
liquidation will be extended
accordingly.
This determination is issued and
published pursuant to sections 733(f)
and 777(i)(1) of the Tariff Act.
Dated: January 23, 2008.
David M. Spooner,
Assistant Secretary for Import
Administration.
[FR Doc. 08–415 Filed 1–30–08; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–916]
Laminated Woven Sacks From the
People’s Republic of China:
Preliminary Determination of Sales at
Less Than Fair Value, Partial
Affirmative Determination of Critical
Circumstances, and Postponement of
Final Determination
Import Administration,
International Trade Administration,
Department of Commerce.
DATES: Effective Date: January 31, 2008.
SUMMARY: We preliminarily determine
that laminated woven sacks from the
People’s Republic of China (‘‘PRC’’) are
being, or are likely to be, sold in the
United States at less than fair value
(‘‘LTFV’’), as provided in section 733 of
the Tariff Act of 1930, as amended (‘‘the
Act’’). The estimated margins of sales at
LTFV are shown in the ‘‘Preliminary
Determination’’ section of this notice.
We will make our final determination
within 135 days after the publication of
this preliminary determination.
FOR FURTHER INFORMATION CONTACT:
Catherine Bertrand or Javier Barrientos,
AD/CVD Operations, Office 9, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: 202–482–3207 or 202–482–
2243, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Initiation
On June 28, 2007, the Department of
Commerce (‘‘Department’’) received a
petition on imports of laminated woven
sacks from the PRC from the Laminated
Woven Sacks Committee and its
individual members, Bancroft Bags, Inc.,
Coating Excellence International, LLC,
E:\FR\FM\31JAN1.SGM
31JAN1
Agencies
[Federal Register Volume 73, Number 21 (Thursday, January 31, 2008)]
[Notices]
[Pages 5794-5801]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 08-415]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-859]
Notice of Preliminary Determination of Sales at Less Than Fair
Value and Postponement of Final Determination: Light-Walled Rectangular
Pipe and Tube From the Republic of Korea
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: January 31, 2008.
SUMMARY: The U.S. Department of Commerce (the Department) preliminarily
determines that light-walled rectangular pipe and tube from the
Republic of Korea is being, or is likely to be, sold in the United
States at less than fair value (LTFV), as provided in section 733(b) of
the Tariff Act of 1930, as amended (the Tariff Act). The estimated
margins of sales at LTFV are listed in the ``Suspension of
Liquidation'' section of this notice. Interested parties are invited to
comment on this preliminary determination. Pursuant to a request from
Nexteel Co., Ltd. (Nexteel), we are postponing for 60 days the final
determination and extending provisional measures from a four-month
period to not more than six months. Accordingly, we will make our final
determination not later than 135 days after publication of the
preliminary determination.
FOR FURTHER INFORMATION CONTACT: David Cordell, (Kukje Steel Co.,
Ltd.), Mark Flessner (Nexteel Co., Ltd.), or Robert James, AD/CVD
Operations, Office 7, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
0408, (202) 482-6312, or (202) 482-0649, respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 17, 2007, the Department initiated the antidumping duty
investigation of light-walled rectangular pipe and tube from the
Republic of Korea. See Initiation of Antidumping Duty Investigations:
Light-Walled Rectangular Pipe and Tube from the Republic of Korea,
Mexico, Turkey, and the People's Republic of China, (Initiation
Notice), 72 FR 40274 (July 24, 2007). The Petitioners in this
investigation are Allied Tube and Conduit, Atlas Tube, Bull Moose Tube
Company, California Steel and Tube, EXLTUBE, Hannibal Industries,
Leavitt Tube Company, Maruichi American Corporation, Searing
Industries, Southland Tube, Vest Inc., Welded Tube, and Western Tube
and Conduit (Petitioners).
The Department set aside a period of time for parties to raise
issues regarding product coverage and encouraged all parties to submit
comments. See Initiation Notice, 72 FR 40274, 40275 (July 24, 2007). No
party submitted comments on the scope.
On August 28, 2007, the United States International Trade
Commission (the Commission) preliminarily determined there is a
reasonable indication that imports of light-walled rectangular pipe and
tube from Korea, Mexico and Turkey are materially injuring the U.S.
industry and notified the Department of its findings. See Light-Walled
Rectangular Pipe and Tube From China, Korea, Mexico, and Turkey,
Investigation Nos. 701-TA-449 and 731-TA-1118-1121 (Preliminary), 72 FR
49310 (August 28, 2007).
Section 777A(c)(1) of the Tariff Act directs the Department to
calculate individual dumping margins for each known exporter and
producer of the subject merchandise. The Department identified a large
number of producers and exporters of light-walled rectangular pipe and
tube from the Republic of Korea (Korea) and determined that it was not
practicable to examine each known exporter/producer of the subject
merchandise, as provided in section 777A(c)(2) of the Tariff Act. The
Department sent quantity and value (Q&V) questionnaires to the
companies identified in the petition, as well as to other companies
identified during our analysis. On July 31, 2007, the Department sent
Q&V questionnaires to the following companies: Ahshin Pipe & Tube,
Dong-A Steel Pipe Co. Ltd., Han Gyu Rae Steel, Co., Ltd., HiSteel Co.
Ltd., Jinbang Steel Co. Ltd., Joong Won, Kukje Steel Co. (Kukje), Ltd.,
Miju Steel Mfg. Co. Ltd., Nexteel, SeAH Steel Corporation, Ltd. (SeAH),
and Yujin Steel Industry Co.
Ahshin Pipe & Tube mailed its response by first class mail dated
August 20, 2007, but that letter was not
[[Page 5795]]
submitted as required through our Central Records Unit, did not include
a complete response to the Department's Q&V questionnaire or include
the required certifications, and was not served on all interested
parties. Consequently, the response did not comport with 19 CFR
351.103, 351.302(d)(1), 351.303(f)(2) and 351.303(g), and was returned
to Ahshin Pipe & Tube on September 7, 2007.
On August 27, 2007 and September 28, 2007, the Department requested
that Han Gyu Rae Steel Co., Ltd., (Han Gyu Rae) resubmit its public
version of its response to the Q&V questionnaire which it had submitted
on August 17, 2007, because a proper public version was not provided.
In its September 28, 2007, letter the Department warned Han Gyu Rae
that it may not accept the response as currently filed and that the
Department may apply facts available in accordance with section 776 of
the Tariff Act, and pursuant to 19 CFR 351.308. The Department received
no reply from Han Gyu Rae and thus returned its August 17, 2007,
submission on November 9, 2007. Furthermore, the Department did not
receive any response at all to either its July 31, 2007, quantity and
value questionnaire or its August 16, 2007, follow-up letter from the
following companies: Dong-A Steel Pipe Co. Ltd., HiSteel Co. Ltd.,
Jinbang Steel Co. Ltd., Joong Won, Miju Steel Mfg. Co. Ltd., and Yujin
Steel Industry Co.\1\
---------------------------------------------------------------------------
\1\ The Department sent its questionnaires and its follow up
letter via an international delivery service. Records show each of
the companies in question received and signed for the July 31, 2007,
quantity and value questionnaire and the August 16, 2007, follow-up
letter.
---------------------------------------------------------------------------
Three respondents--SeAH, Kukje and Nexteel--responded to the
Department's Q&V questionnaire. Kukje and Nexteel accounted for the
largest volume of subject merchandise exported to the United States
during the period of investigation (POI). Hence, these two firms were
selected as mandatory respondents pursuant to section 777A(c)(2)(1)(B)
of the Tariff Act. See the September 5, 2007, Memorandum to Deputy
Assistant Secretary Stephen J. Claeys, entitled ``Antidumping Duty
Investigation on Light-Walled Rectangular Pipe and Tube from the
Republic of Korea (Korea) (A-580-859), Respondent Selection''
(Respondent Selection Memorandum). We issued antidumping questionnaires
to Kukje and Nexteel on September 7, 2007.
The Department received the Section A response from Kukje on
October 5, 2007, and from Nexteel on October 10, 2007. Petitioners
provided comments on Kukje's and Nexteel's Section A responses on
October 16, 2007. On October 19, 2007, the Department issued Nexteel a
supplemental questionnaire concerning its October 10, 2007, Section A
response. On October 22, 2007, Kukje informed the Department that Kukje
was unable to respond further to the antidumping questionnaire. We
received the Sections B and C responses from Nexteel on October 29,
2007. Nexteel also responded voluntarily to Section D, Cost of
Production, in this submission.
On November 9, 2007, Petitioners provided comments on Nexteel's
Sections B and C response, and submitted a cost allegation with respect
to Nexteel. On November 27, 2007, the Department issued a supplemental
questionnaire to Nexteel concerning Nexteel's Sections B and C
response, to which Nexteel responded on December 19, 2007.
On December 7, 2007, the Department initiated a cost investigation
on Nexteel. See memorandum from Mark Flessner, Case Analyst, and
Christopher J. Zimpo, Accountant, to Richard O. Weible, Director,
Office 7, entitled ``Petitioners'' Allegation of Sales Below the Cost
of Production for Nexteel Co. Ltd.,'' dated December 7, 2007 (Cost
Allegation Memorandum). On December 21, 2007, the Department issued a
supplemental questionnaire to Nexteel concerning Nexteel's Section D
response, to which Nexteel responded on January 10, 2008.
On December 26, 2007, petitioners timely filed with the Department
an allegation of targeted dumping for Nexteel. Nexteel filed comments
regarding petitioners' allegation on January 3, 2008. Upon review of
petitioners' allegation, the Department determined that further
information was needed in order to adequately analyze petitioners'
allegation. The Department issued a supplemental questionnaire to
petitioners on January 14, 2008, requesting that they address
deficiencies identified by the Department. See Letter from Richard O.
Weible, Director, Office 7, to Petitioners, dated January 14, 2008.
Because there was a need for supplemental information regarding the
allegation, we do not have sufficient bases for making a finding of
targeted dumping prior to the January 23, 2008, deadline for issuance
of the preliminary determination. We intend to address the allegation
in full upon receipt of a satisfactory response by Petitioners to our
request for additional information.
On October 19, 2007, the Petitioners requested the Department
postpone the preliminary determination by 50 days pursuant to 19 CFR
351.205(e). The Department published a notice of postponement on
November 14, 2007, which set the new deadline for the preliminary
determination at January 23, 2008. See Light-Walled Rectangular Pipe
and Tube from Mexico, Turkey, and the Republic of Korea: Postponement
of Preliminary Determination of Antidumping Duty Investigations, 72 FR
64044 (November 14, 2007).
Period of Investigation
The POI is April 1, 2006, to March 31, 2007.
Scope of Investigation
The merchandise that is the subject of this investigation is
certain welded carbon quality light-walled steel pipe and tube, of
rectangular (including square) cross section, having a wall thickness
of less than 4 mm.
The term carbon-quality steel includes both carbon steel and alloy
steel which contains only small amounts of alloying elements.
Specifically, the term carbon-quality includes products in which none
of the elements listed below exceeds the quantity by weight
respectively indicated: 1.80 percent of manganese, or 2.25 percent of
silicon, or 1.00 percent of copper, or 0.50 percent of aluminum, or
1.25 percent of chromium, or 0.30 percent of cobalt, or 0.40 percent of
lead, or 1.25 percent of nickel, or 0.30 percent of tungsten, or 0.10
percent of molybdenum, or 0.10 percent of niobium, or 0.15 percent
vanadium, or 0.15 percent of zirconium. The description of carbon-
quality is intended to identify carbon-quality products within the
scope. The welded carbon-quality rectangular pipe and tube subject to
this investigation is currently classified under the Harmonized Tariff
Schedule of the United States (HTSUS) subheadings 7306.61.50.00 and
7306.61.70.60. While HTSUS subheadings are provided for convenience and
Customs purposes, our written description of the scope of this
investigation is dispositive.
Model Match
In accordance with section 771(16) of the Tariff Act, all products
produced by the respondents covered by the description in the Scope of
Investigation section, above, and sold in Korea during the POI are
considered to be foreign like products for purposes of determining
appropriate product comparisons to U.S. sales.
On August 16, 2007, the Department asked all parties in the
investigation of light-walled rectangular pipe and tube from the
Republic of Korea and in the concurrent antidumping duty investigations
of light-walled
[[Page 5796]]
rectangular pipe and tube from Mexico, Turkey, and the People's
Republic of China, for comments on the appropriate product
characteristics for defining individual products; parties in this
investigation and in the concurrent antidumping duty investigations of
light-walled rectangular pipe and tube from Mexico and Turkey were also
invited to comment on the appropriate model matching methodology. See
Letter from Richard Weible, Director, Office 7, dated August 16, 2007.
The Department received comments from the Mexican company Perfiles y
Herrajes LM on August 23, 2007; from the Mexican companies Productos
Laminados de Monterrey S.A. de C.V. and Prolamsa USA, Inc. on August
24, 2007 August 27, 2007 and September 4, 2007; from the Turkish
company Noksel Celik Boru Sanayi A.S. on August 24, 2007; from the
Chinese producer/exporter Zhangjiagang Zhongyuan Pipe-Making Co., Ltd.;
and from the Petitioners on August 24, 2007. The Department did not
make any changes to its proposed characteristics and model matching
methodology as a result of the comments submitted by parties.
We have relied on six criteria to match U.S. sales of subject
merchandise to comparison market sales of the foreign like product:
steel input type, whether metallic coated or not, whether painted or
not, perimeter, wall thickness and shape. 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.
Use of Facts Otherwise Available
For the reasons discussed below, we determine the use of adverse
facts available (AFA) is appropriate for the preliminary determination
with respect to the following nine companies: Dong-A Steel Pipe Co.
Ltd., HiSteel Co. Ltd., Jinbang Steel Co. Ltd., Joong Won, Miju Steel
Mfg. Co. Ltd., Yujin Steel Industry Co., Ahshin Pipe & Tube, Han Gyu
Rae, and Kukje. As noted in the Supplementary Information section
above, the first six companies failed to respond to the Department's
Q&V questionnaire and to the Department's follow up letter of August
16, 2007. Ahshin Pipe & Tube submitted an improper, incomplete, and
untimely Q&V questionnaire response that the Department returned; Han
Gyu Rae failed to resubmit its August 17, 2007 Q&V response and the
Department returned Han Gyu Rae's Q&V submission on November 9, 2007.
On October 22, 2007, Kukje informed the Department that it was unable
to respond further to the antidumping questionnaire.
Section 776(a)(2) of the Tariff Act provides that, if an interested
party withholds information requested by the administering authority,
fails to provide such information by the deadlines for submission of
the information and in the form or manner requested, subject to
subsections (c)(1) and (e) of section 782, significantly impedes a
proceeding under this title, or provides such information but the
information cannot be verified as provided in 782(I), the administering
authority shall use, subject to section 782(d) of the Tariff Act, facts
otherwise available in reaching the applicable determination. Section
782(d) of the Tariff Act provides that, if the administering authority
determines a response to a request for information does not comply with
the request, the administering authority shall promptly inform the
responding party and provide an opportunity to remedy the deficient
submission. Section 782(e) of the Tariff Act states further that the
Department shall not decline to consider submitted information if all
of the following requirements are met: (1) The information is submitted
by the established deadline; (2) the information can be verified; (3)
the information is not so incomplete that it cannot serve as a reliable
basis for reaching the applicable determination; (4) the interested
party has demonstrated that it acted to the best of its ability; and
(5) the information can be used without undue difficulties.
In this case, Dong-A Steel Pipe Co. Ltd., HiSteel Co. Ltd., Jinbang
Steel Co. Ltd., Joong Won, Miju Steel Mfg. Co. Ltd., Yujin Steel
Industry Co., Ahshin Pipe & Tube, and Han Gyu Rae all failed to provide
necessary information by the deadlines for submission of the
information and/or in the form or manner requested. Thus, for these
eight companies in reaching our preliminary determination, pursuant to
sections 776(a)(2)(A), (B), and (C) of the Tariff Act, we have based
the dumping margin on facts otherwise available.
Kukje, one of the mandatory respondents, did not provide pertinent
information we requested that is necessary to calculate an antidumping
margin for the preliminary determination. Specifically, Kukje failed to
provide a complete response to our questionnaire, thereby withholding,
among other things, home-market and U.S. sales information that is
necessary for reaching the applicable determination, pursuant to
section 776(a)(2)(A) of the Tariff Act. Thus, in reaching our
preliminary determination, pursuant to sections 776(a)(2)(A), (B), and
(C) of the Tariff Act, we have based the dumping margin for Kukje on
facts otherwise available.
Application of Adverse Inferences for Facts Available
According to section 776(b) of the Tariff Act, if the Department
finds that an interested party fails to cooperate by not acting to the
best of its ability to comply with requests for information, the
Department may use an inference that is adverse to the interests of
that party in selecting from the facts otherwise available. See Notice
of Final Results of Antidumping Duty Administrative Review: Stainless
Steel Bar from India, 70 FR 54023, 54025-26 (September 13, 2005); see
also Notice of Final Determination of Sales at Less Than Fair Value and
Final Negative Critical Circumstances: Carbon and Certain Alloy Steel
Wire Rod from Brazil, 67 FR 55792, 55794-96 (August 30, 2002). It is
the Department's practice to apply adverse inferences to ensure that
the party does not obtain a more favorable result by failing to
cooperate than if it had cooperated fully. See, e.g., id. Furthermore,
``affirmative evidence of bad faith on the part of a respondent is not
required before the Department may make an adverse inference.'' See
Antidumping Duties; Countervailing Duties; Final Rule, 62 FR 27296,
27340 (May 19, 1997); see also Nippon Steel Corp. v. United States, 337
F.3d 1373, 1382-83 (Fed. Cir. 2003) (Nippon); see also Certain
Polyester Staple Fiber from Korea: Final Results of the 2005-2006
Antidumping Duty Administrative Review, 72 FR 69663, 69664 (December
10, 2007).
Although the Department provided all respondents, including Dong-A
Steel Pipe Co. Ltd., HiSteel Co. Ltd., Jinbang Steel Co. Ltd., Joong
Won, Miju Steel Mfg. Co. Ltd., Yujin Steel Industry Co., Ahshin Pipe &
Tube, Han Gyu Rae and Kukje, with notice informing them of the
consequences of their failure to respond adequately to the
questionnaire in this case, pursuant to section 782(d) of the Tariff
Act, the companies listed above did not respond as requested. This
constitutes a failure on the part of these companies to cooperate to
the best of their ability to comply with a request for information by
the Department within the meaning of section 776(b) of the Tariff
Act.\2\ Based on the above, the
[[Page 5797]]
Department has preliminarily determined that Dong-A Steel Pipe Co.
Ltd., HiSteel Co. Ltd., Jinbang Steel Co. Ltd., Joong Won, Miju Steel
Mfg. Co. Ltd., Yujin Steel Industry Co., Ahshin Pipe & Tube, Han Gyu
Rae and Kukje failed to cooperate to the best of their ability and,
therefore, in selecting from among the facts otherwise available, an
adverse inference is warranted. See, e.g., Notice of Final
Determination of Sales at Less than Fair Value: Circular Seamless
Stainless Steel Hollow Products from Japan, 65 FR 42985, 42986 (July
12, 2000) (the Department applied total AFA where the respondent failed
to respond to the antidumping questionnaire).
---------------------------------------------------------------------------
\2\ As noted earlier, the Department sent its quantity and value
questionnaires and its follow up leeter via an international
delivery service and records show that each of the companies in
question received and signed for the July 31, 2007, quantity and
value questionnaire and the August 16, 2007, follow-up letter.
---------------------------------------------------------------------------
Selection and Corroboration of Information Used as Facts Available
Where the Department applies AFA because a respondent failed to
cooperate by not acting to the best of its ability to comply with a
request for information, section 776(b) of the Tariff Act authorizes
the Department to rely on information derived from the petition, a
final determination, a previous administrative review, or other
information placed on the record. See also 19 CFR 351.308(c). It is the
Department's practice to use the highest rate from the petition in an
investigation when a respondent fails to act to the best of its ability
to provide the necessary information. See, e.g., Notice of Preliminary
Determination of Sales at Less Than Fair Value and Postponement of
Final Determination: Purified Carboxymethylcellulose From Finland, 69
FR 77216 (December 27, 2004) (unchanged in Notice of Final
Determination of Sales at Less Than Fair Value: Purified
Carboxymethylcellulose From Finland, 70 FR 28279 (May 17, 2005)).
Therefore, because an adverse inference is warranted, we have assigned
to Dong-A Steel Pipe Co. Ltd., HiSteel Co. Ltd., Jinbang Steel Co.
Ltd., Joong Won, Miju Steel Mfg. Co. Ltd., Yujin Steel Industry Co.,
Ahshin Pipe & Tube, Han Gyu Rae and Kukje the highest margin alleged in
the petition, as referenced in the Initiation Notice, of 30.66 percent.
See Initiation Notice at 40278.
When using facts otherwise available, section 776(c) of the Tariff
Act provides that when the Department relies on secondary information
(such as the petition) rather than on information obtained in the
course of an investigation, it must corroborate, to the extent
practicable, information from independent sources that are reasonably
at its disposal.
To ``corroborate'' means that the Department will satisfy itself
that the secondary information to be used has probative value. See
Statement of Administrative Action accompanying the Uruguay Round
Agreements Act, H.R. Doc. No. 103-316, vol. 1 (1994) at 870 (SAA),
reprinted in 1994 U.S.C.C.A.N. 4040, 4198-4199. As stated in Tapered
Roller Bearings and Parts Thereof, Finished and Unfinished, from Japan,
and Tapered Roller Bearings, Four Inches or Less in Outside Diameter,
and Components Thereof, from Japan; Preliminary Results of Antidumping
Duty Administrative Reviews and Partial Termination of Administrative
Reviews, 61 FR 57391, 57392 (November 6, 1996) (unchanged in Tapered
Roller Bearings and Parts Thereof, Finished and Unfinished, From Japan,
and Tapered Roller Bearings, Four Inches or Less in Outside Diameter,
and Components Thereof, From Japan; Final Results of Antidumping Duty
Administrative Reviews and Termination in Part, 62 FR 11825, 11843
(March 13, 1997)), to corroborate secondary information, the Department
will examine, to the extent practicable, the reliability and relevance
of the information used. The Department's regulations state that
independent sources used to corroborate such evidence may include, for
example, published price lists, official import statistics and customs
data, and information obtained from interested parties during the
particular investigation. See 19 CFR 351.308(d).
For the purposes of this investigation, to the extent appropriate
information was available, we reviewed the adequacy and accuracy of the
information in the Petition during our pre-initiation analysis and for
purposes of this preliminary determination. See Initiation Checklist.
We examined evidence supporting the calculations in the Petition to
determine the probative value of the margins alleged in the Petition
for use as AFA for purposes of this preliminary determination. During
our pre-initiation analysis we examined the key elements of the export
price and normal value calculations used in the Petition to derive
margins. During our pre-initiation analysis we also examined
information from various independent sources provided either in the
Petition or in supplements to the Petition that corroborates key
elements of the export price and normal value calculations used in the
Petition to derive estimated margins.
Specifically, the Petitioners calculated an export price using U.S.
price quotes it obtained for light-walled rectangular pipe and tube
from Korea. These price quotes identify the price that the first U.S.
purchaser unaffiliated with the foreign producer, i.e., the
international trader/importer, offered to its customer. The Petitioners
also calculated a second export price using the average monthly Customs
Unit Values (AUVs) ((Free Alongside Ship) (F.A.S.)) of light-walled
rectangular pipe and tube from Korea for consumption in the United
States, classified under HTSUS numbers 7306.60.50.00 and 7306.61.50.00,
gathered from the Bureau of the Census IM145 import statistics. We then
compared the U.S. price quote to the AUVs for this period and confirmed
that the value of the U.S. price quote was consistent with the AUV's.
Further, we obtained no other information that would make us question
the reliability of the pricing information provided in the Petition.
The Petitioners adjusted export prices for international freight
and dealer mark-up. The Petitioners used the difference between the
F.A.S. and C.I.F. AUVs for imports from Korea to the United States to
calculate international freight costs. See Petition at page II-10; see
also July 6, 2007 Supplement to the Petition at 6. These data are from
the U.S. Customs and Border Protection (CBP) and the U.S. Census
Bureau, which are sources of information that we consider reliable.
See, e.g., Notice of Preliminary Determination of Sales at Less Than
Fair Value: Superalloy Degassed Chromium from Japan, 70 FR 48538, 48540
(August 18, 2005), (unchanged in Notice of Final Determination of Sales
at Less Than Fair Value: Superalloy Degassed Chromium from Japan, 70 FR
65886 (November 1, 2005)). Further, we obtained no other information
that would make us question the reliability of the adjusted information
provided in the Petition. The Petitioners estimated the distributor
mark-up based on Searing Industries sales personnel's knowledge of
importer's mark-ups in the domestic light-walled rectangular tubing
industry. The Petitioners provided an affidavit from persons attesting
to the validity of the distributor mark-up value the Petitioners used
in the calculation of net U.S. price. See Initiation Checklist at 9.
Based on our examination of the aforementioned information, we
consider the Petitioners' calculation of net U.S. prices corroborated.
With respect to normal value, the Petitioners derived Korean home
market prices from a January 2007 edition of the Korean Metal Journal,
a recognized industry journal; no evidence on the
[[Page 5798]]
record questions the validity of this source. Two series of prices were
listed: a ``consumer'' price (based on destination) and a ``wholesale
price.'' As a conservative measure, the lower-valued wholesale price
was selected; this is more reflective of sales to distributors. Prices
were quoted in won per meter and were converted into U.S. dollars using
an average dollar weight for the proposed POI. The prices were also
converted from meters to hundred-pound-weight (cwt), as cwt is the
weight by which the subject merchandise is typically sold in the United
States. Petitioners claim the delivery term for the wholesale price is
ex-factory as demonstrated by the single price for all regions of the
country, whereas consumer prices vary by different regions of the
country suggesting the inclusion of freight. Petitioners note the
products for which they obtained U.S. prices fall within the product
category used for Normal Value (NV) from the Korean Metal Journal. See
Volume II of the Petition at pages 9-10 and Exhibits II 21-23 and
Volume II of the Supplement to the Petition dated July 6, 2007 at pages
1-2 and Exhibit 1.
Based on our examination of the aforementioned information, we
consider the Petitioners' calculation of net home market prices
corroborated.
We also examined information obtained from interested parties to
corroborate the home market and U.S. prices. Margin percentages
calculated for Nexteel exceeded those from the Petition.
Therefore, because we confirmed the accuracy and validity of the
information underlying the derivation of margins in the Petition by
examining source documents, publicly available information, and primary
information submitted by respondent Nexteel, we preliminarily determine
that the margins in the Petition are reliable for the purposes of this
investigation.
In making a determination as to the relevance aspect of
corroboration, the Department will consider information reasonably at
its disposal as to whether there are circumstances that would render a
margin not relevant. Where circumstances indicate the selected margin
is not appropriate as adverse facts available, the Department will
disregard the margin and determine an appropriate margin. For example,
in Fresh Cut Flowers from Mexico: Final Results of Antidumping Duty
Administrative Review, 61 FR 6812 (February 22, 1996), the Department
disregarded the highest margin as ``best information available'' (the
predecessor to ``facts available'') because the margin was based on
another company's uncharacteristic business expense that resulted in an
unusually high dumping margin.
In American Silicon Technologies v. United States, 273 F. Supp. 2d
1342, 1346 (CIT 2003), the court affirmed Commerce's adverse facts-
available rate, noting that it bore a ``rational relationship'' to the
respondent's ``commercial practices,'' and was, therefore, relevant. As
described above, in the pre-initiation stage of this investigation, we
confirmed the calculation of margins in the Petition reflects
commercial practices of the particular industry during the period of
investigation. Further, no information has been presented in the
investigation that calls into question the relevance of this
information. As such, we preliminarily determine the highest margin in
the Petition, which we determined during our pre-initiation analysis
was based on adequate and accurate information and which we have
corroborated for purposes of this preliminary determination, is
relevant as the adverse facts-available rate for Dong-A Steel Pipe Co.
Ltd., HiSteel Co. Ltd., Jinbang Steel Co. Ltd., Joong Won, Miju Steel
Mfg. Co. Ltd., Yujin Steel Industry Co., Ahshin Pipe & Tube, Han Gyu
Rae and Kukje in this investigation.
Similar to our position in Polyethylene Retail Carrier Bags from
Thailand: Preliminary Results of Antidumping Duty Administrative
Review, 71 FR 53405, 53407 (September 11, 2006) (unchanged in
Polyethylene Retail Carrier Bags from Thailand: Final Results of
Antidumping Duty Administrative Review, 72 FR 1982 (January 17, 2007)),
because this is the first proceeding involving these companies, there
are no probative alternatives. Accordingly, by using information that
was corroborated in the pre-initiation stage of this investigation and
preliminarily determined to be relevant to Dong-A Steel Pipe Co. Ltd.,
HiSteel Co. Ltd., Jinbang Steel Co. Ltd., Joong Won, Miju Steel Mfg.
Co. Ltd., Yujin Steel Industry Co., Ahshin Pipe & Tube, Han Gyu Rae and
Kukje in this investigation, we have corroborated the adverse facts-
available rate ``to the extent practicable.'' See section 776(c) of the
Tariff Act, 19 CFR 351.308(d), and NSK Ltd. v. United States, 346 F.
Supp. 2d 1312, 1336 (CIT 2004) (stating, ``pursuant to the `to the
extent practicable' language * * * the corroboration requirement itself
is not mandatory when not feasible''). Therefore, we find that the
estimated margin of 30.66 percent in the Initiation Notice has
probative value. Consequently, in selecting AFA with respect to Dong-A
Steel Pipe Co. Ltd., HiSteel Co. Ltd., Jinbang Steel Co. Ltd., Joong
Won, Miju Steel Mfg. Co. Ltd., Yujin Steel Industry Co., Ahshin Pipe &
Tube, Han Gyu Rae and Kukje, we have applied the margin rate of 30.66
percent, the highest estimated dumping margin set forth in the notice
of initiation. See Initiation Notice, 72 FR at 40278.
Date of Sale
Section 351.401(i) of the Department's regulations states the
Department normally will use the date of invoice, as recorded in the
producer's or exporter's records kept in the ordinary course of
business, as the date of sale. The regulations further provide that the
Department may use a date other than the date of the invoice if the
Secretary is satisfied that a different date better reflects the date
on which the material terms of sale are established. See 19 CFR
351.401(I). The Department has a long-standing practice of finding
that, where shipment date precedes invoice date, shipment date better
reflects the date on which the material terms of sale are established.
See Notice of Final Determination of Sales at Less Than Fair Value and
Negative Final Determination of Critical Circumstances: Certain Frozen
and Canned Warmwater Shrimp from Thailand, 69 FR 76918 (December 23,
2004), and accompanying Issues and Decision Memorandum at Comment 10;
Notice of Final Determination of Sales at Less Than Fair Value:
Structural Steel Beams from Germany, 67 FR 35497 (May 20, 2002), and
accompanying Issues and Decision Memorandum at Comment 2; Notice of
Final Determination of Sales at Less Than Fair Value: Certain Hot-
Rolled Flat-Rolled Carbon Quality Steel Products From Brazil, 64 FR
38756, 38767 (July 19, 1999). Nexteel maintains the quantity is fixed
on the date of shipment from its factory but that the price is only
finalized when Nexteel issues the commercial and tax invoices. The
issuance of commercial and tax invoices is frequently after shipment,
but was not before shipment for any POI sales in both the home and U.S.
markets. Therefore, Nexteel has reported the date of shipment from its
factory as the date of sale under the field SALEDATH. See Nexteel's
Section B response dated October 29, 2007, at pages B-14 to B-15.
However, since the material terms of sale are not finalized until
issuance of the commercial invoice, we have preliminarily determined to
use date of invoice as the date of sale in both the home and U.S.
markets. See Nexteel's supplemental Section B response dated December
26, 2007, at pages 17 to 18.
[[Page 5799]]
Fair Value Comparisons
To determine whether sales of subject merchandise from Korea were
made in the United States at less than NV, we compared the export price
(EP) to the NV, as described in the U.S. Price and Normal Value
sections below. In accordance with section 777A(d)(1) of the Tariff
Act, we calculated the weighted-average prices for NV and compared
these to the weighted-average of EP.
U.S. Price
For the price to the United States, we used EP in accordance with
section 772(a) of the Tariff Act. Pursuant to section 772(a) of the
Tariff Act, we used the EP methodology when the merchandise was sold by
the producer or exporter outside the United States directly to the
first unaffiliated purchaser in the United States prior to importation
and when constructed export price (CEP) was not otherwise warranted
based on the facts on the record. Nexteel has no affiliate in the
United States and reports all its sales as EP sales. See Nexteel's
Section C response at page C-9. Nothing on the record indicates that
Nexteel's U.S. market sales are CEP sales, so we did not use the CEP
methodology. We based EP on the packed prices charged to the
unaffiliated Korean trading companies (as Nexteel knew the merchandise
it was selling to that trading company was destined for the United
States). See Nexteel's Section A questionnaire response dated October
9, 2007, at page A-11; see also Wonderful Chemical Industrial, Ltd., et
al. v. United States, 259 F. Supp. 2d 1273, 1279 (Ct. Intl. Trade
2003). There were no reported billing adjustments or duty drawback
claims.
In accordance with section 772(c)(2) of the Tariff Act, we make
deductions, where appropriate, for movement expenses including inland
freight and brokerage expenses from plant to delivery. Due to the
nature of Nexteel's U.S. sales (all were made to unaffiliated Korean
trading companies who took possession at the Korean port), however,
Nexteel had no expenses from plant to delivery other than
transportation.
Normal Value
A. Home Market Viability and Comparison Market Selection
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
Nexteel'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
section 773(a)(1)(B)(ii)(II) of the Tariff Act, because Nexteel 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
Nexteel reported sales of the foreign like product to affiliated
customers. The Department calculates 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., the sales
were at ``arm's length.'' See 19 CFR 351.403(c). To test whether these
sales were made at arm's length, we compared the prices of sales to
affiliated and unaffiliated customers net of all movement charges,
direct selling expenses, discounts and packing. Id. 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 considered the
sales to be at arm's-length prices and included such sales in the
calculation of NV. Conversely, where sales to the affiliated party did
not pass the arm's-length test, all sales to that affiliated party
would be excluded from the NV calculation. See 19 CFR 351.403(c) see
also Antidumping Proceedings: Affiliated Party Sales in the Ordinary
Course of Trade, 67 FR 69186 (November 15, 2002), and memorandum from
Mark Flessner, Case Analyst, to the file entitled, ``Preliminary
Determination of Sales at Less Than Fair Value of Light-Walled
Rectangular Pipe and Tube from the Republic of Korea,'' dated January
23, 2008 (Analysis Memorandum). No such sales were excluded for
Nexteel.
C. Cost of Production Analysis
Based on our analysis of the Petitioners' allegation, we found that
there were reasonable grounds to believe or suspect that Nexteel's
sales of light-walled rectangular pipe and tube in the home market were
made at prices below their COP. Accordingly, pursuant to section 773(b)
of the Tariff Act, we initiated a sales-below-cost investigation to
determine whether Nexteel had sales that were made at prices below
their respective COPs. See Cost Allegation Memorandum.
1. Calculation of Cost of Production
In accordance with section 773(b)(3) of the Tariff Act, we
calculated Nexteel's COP based on the sum of its costs of materials and
conversion for the foreign like product, plus amounts for general and
administrative (G&A) expenses and interest expenses (see the Test of
Comparison Market Sales Prices section below for the treatment of home
market selling expenses).
The Department relied upon Nexteel's COP and CV information from
the company's submission dated January 10, 2008. To determine COP, the
reported cost of manufacturing data (TOTCOM) were adjusted by
incorporating G&A expenses and financial expenses based on Nexteel's
financial statements, and included in Nexteel's section D response at
Exhibits D-9 and D-10, respectively.
2. Test of Comparison Market Sales Prices
On a product-specific basis, we compared the adjusted weighted-
average COP to the home market sales prices of the foreign like
product, as required under section 773(b) of the Tariff Act, in order
to determine whether the sale prices were below the COP. The prices
were exclusive of any applicable movement charges, direct and indirect
selling expenses, and packing expenses.
3. Results of the COP Test
In determining whether to disregard home market sales made at
prices below the COP, we examined, in accordance with sections
773(b)(1)(A) and (B) of the Tariff Act, whether, within an extended
period of time, such sales were made in substantial quantities, and
whether such sales were made at prices which permitted the recovery of
all costs within a reasonable period of time. Pursuant to section
773(b)(2)(c) of the Tariff Act, where less than 20 percent of the
respondent's home market sales of a given model were at prices below
the COP, we did not disregard any below-cost sales of that model
because we determined that the below-cost sales were not made within an
extended period of time in ``substantial quantities.'' Where 20 percent
or more of the respondent's home market sales of a given model were at
prices less than COP, we disregarded the below-cost sales because: (1)
They were made within an extended period of time in ``substantial
quantities,'' in accordance with sections 773(b)(2)(B) and (C) of the
Tariff Act, and (2) based on our comparison of prices to the weighted-
average COPs for the POR, they were at
[[Page 5800]]
prices which would not permit the recovery of all costs within a
reasonable period of time, in accordance with section 773(b)(2)(D) of
the Tariff Act.
Our cost test indicated that for certain Nexteel models, 20 percent
or more of the home market sales volume (by weight) were sold at prices
below COP within an extended period of time and were at prices which
would not permit the recovery of all costs within a reasonable period
of time. Thus, in accordance with section 773(b)(1) of the Tariff Act,
we excluded these below-cost sales from our analysis and used the
remaining above-cost sales in the calculation of NV.
D. Calculation of Normal Value Based on Comparison Market Prices
We based home market prices on packed prices to unaffiliated
purchasers in Korea. We adjusted the starting price for inland freight,
warehouse expense, and warehouse revenue, where appropriate, pursuant
to section 773(a)(6)(B)(ii) of the Tariff Act. In addition, for
comparisons made to EP sales, we made adjustments for differences in
circumstances of sale (COS) pursuant to section 773(a)(6)(C)(iii) of
the Tariff Act. We made COS adjustments by deducting direct selling
expenses incurred for home market sales (credit expense) and adding
U.S. direct selling expenses (credit and other direct selling
expenses), where appropriate. See 19 CFR 351.410(c).
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 Tariff 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. See 19 CFR
351.411(b).
E. Level of Trade/Constructed Export Price Offset
In accordance with section 773(a)(1)(B)(i) of the Tariff Act, to
the extent practicable, we determine NV based on sales in the
comparison market at the same level of trade (LOT) as the EP or CEP
transaction. In identifying LOTs for EP and comparison market sales
(i.e., NV based on home market), we consider the starting prices before
any adjustments. For CEP sales, we consider only the selling activities
reflected in the price after the deduction of expenses and profit under
section 772(d) of the Tariff Act. See Micron Technology, Inc. v. United
States, 243 F.3d 1301, 1314 (Fed. Cir. 2001).
To determine whether NV sales are at a different LOT than EP or CEP
transactions, 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 Tariff Act. For CEP sales, if the NV level is more
remote from the factory than the CEP level and there is no basis for
determining whether the difference in the levels between NV and CEP
affects price comparability, we adjust NV under section 773(a)(7)(B) of
the Tariff Act (the CEP offset provision). Nexteel reported sales
through one LOT corresponding to two channels of distribution in the
home market. In the U.S. market, Nexteel reported one LOT corresponding
to one channel of distribution for the EP sales made through
unaffiliated Korean trading companies (as stated above, there were no
CEP sales during the POI). In our analysis, we determined that there is
one LOT in the home market and one LOT in the U.S. market. Nexteel did
not claim that there were differing LOTs in the home and U.S. markets.
Our analysis of the various selling functions indicates no differing
LOTs in the home and U.S. markets. See Nexteel's section A
questionnaire response dated October 9, 2007, at Exhibit A-5; Nexteel's
Selling Function Chart shows the same level of activity in each market
for every function listed in this exhibit. We have therefore
preliminarily determined that sales to the U.S. and home markets were
made at the same LOT, and as a result, no LOT adjustment was warranted.
Currency Conversion
We made currency conversions into U.S. dollars in accordance with
section 773A(a) of the Tariff Act based on exchange rates in effect on
the dates of the U.S. sales, as certified by the Federal Reserve Bank.
All-Others Rate
Section 735(c)(5)(B) of the Tariff Act states: ``If the estimated
weighted average dumping margins established for all exporters and
producers individually investigated are zero or de minimis margins, or
are determined entirely under section 776, the administering authority
may use any reasonable method to establish the estimated all-others
rate for exporters and producers not individually investigated,
including averaging the estimated weighted average dumping margins
determined for the exporters and producers individually investigated.''
Nexteel is the only respondent in this investigation for which the
Department has calculated a company-specific rate. This rate, however,
is de minimis. Nine remaining companies all received a margin based
entirely on AFA under section 776 of the Tariff Act. One company, SeAH,
will receive the all-others rate (i.e., its rate was not calculated, as
stated above). Therefore, for purposes of determining the all-others
rate, because there are no other rates than de minimis or those based
on AFA, we have reasonably determined to take a simple average of the
AFA rate (30.66 percent) and the de minimis rate calculated for Nexteel
(1.30 percent); therefore, 15.98 percent is the average to be assigned
for the all-others rate, as referenced in the Suspension of Liquidation
section, below.
Verification
As provided in section 782(i) of the Tariff Act, we intend to
verify information upon which we will rely in making our final
determination.
Preliminary Determination
We preliminarily determine the following weighted-average dumping
margins exist for the period April 1, 2006 through March 31, 2007:
------------------------------------------------------------------------
Weighted-
average
Producer/exporter margin
(percentage)
------------------------------------------------------------------------
Nexteel Co., Ltd........................................ * 1.30
Dong-A Steel Pipe Co. Ltd............................... 30.66
HiSteel Co. Ltd......................................... 30.66
Jinbang Steel Co. Ltd................................... 30.66
Joong Won............................................... 30.66
Miju Steel Mfg. Co., Ltd................................ 30.66
Yujin Steel Industry Co................................. 30.66
Ahshin Pipe & Tube...................................... 30.66
Han Gyu Rae Steel Co., Ltd.............................. 30.66
Kukje Steel Co., Ltd.................................... 30.66
SeAH Steel Corporation, Ltd............................. 15.98
All others.............................................. 15.98
------------------------------------------------------------------------
* (de minimis).
Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, we are directing
U.S. Customs and Border Protection (CBP) to suspend liquidation of all
entries of LWR pipe and tube from the Republic of Korea, with the
exception of those produced by Nexteel Co., Ltd. and exported by
Nexteel Co., Ltd. or either of the two exporters named in its
questionnaire responses, that are
[[Page 5801]]
entered, or withdrawn from warehouse, for consumption on or after the
date of publication of this notice in the Federal Register. We will
instruct CBP to require a cash deposit or the posting of a bond equal
to the weighted-average dumping margin, as indicated in the chart
above, as follows: (1) The rate for the firms listed above (except for
Nexteel, see below) will be the rate we have determined in this
preliminary determination; (2) if the exporter is not a firm identified
in this investigation, but the producer is, the rate will be the rate
established for the producer of the subject merchandise; (3) the rate
for all other producers or exporters will be 15.98 percent. These
suspension-of-liquidation instructions will remain in effect until
further notice.
In accordance with 19 CFR 351.204(e)(2), because the weighted-
average margin for Nexteel is de minimis, we will instruct CBP not to
suspend liquidation of merchandise produced by Nexteel Co., Ltd. and
exported by Nexteel Co., Ltd. or either of the two exporters named in
its questionnaire responses.
Commission Notification
In accordance with section 733(f) of the Tariff Act, we have
notified the Commission of the Department's preliminary affirmative
determination. If the Department's final determination is affirmative,
the Commission will determine before the later of 120 days after the
date of this preliminary determination or 45 days after our final
determination whether imports of light-walled rectangular pipe and tube
from Korea are materially injuring, or threaten material injury to, the
U.S. industry. Because we have postponed the deadline for our final
determination to 135 days from the date of the publication of this
preliminary determination, the Commission will make its final
determination within 45 days of our final determination.
Disclosure
In accordance with 19 CFR 351.224(b), the Department will disclose
to interested parties the calculations performed in this preliminary
determination within five days of the date of the public announcement.
Public Comment
Interested parties are invited to comment on the preliminary
determination. Interested parties may submit case briefs to the
Department no later than seven days after the date of the issuance of
the final verification report in this proceeding. See 19 CFR
351.309(c)(1)(i). Rebuttal briefs, limited to the issues raised in the
case briefs, must be filed within five days from the deadline date for
the submission of case briefs. See 19 CFR 351.309(d)(1) and (2). A list
of authorities used, a table of contents, and an executive summary of
issues should accompany any briefs submitted to the Department.
Executive summaries should be limited to five pages total, including
footnotes. Further, we request that parties submitting briefs and
rebuttal briefs provide the Department with a copy of the public
version of such briefs on diskette. In accordance with section 774 of
the Tariff Act, the Department will hold a public hearing, if
requested, to afford interested parties an opportunity to comment on
arguments raised in case or rebuttal briefs, provided that such a
hearing is requested by an interested party. If a request for a hearing
is made in this investigation, the hearing will tentatively be held two
days after the rebuttal brief deadline date at the U.S. Department of
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC
20230, at a time and place to be determined. However, parties should
confirm by telephone, the date, time, and location of the hearing 48
hours before the scheduled date.
Interested parties who wish to request a hearing, or to participate
in a hearing if one is requested, must submit a written request to the
Assistant Secretary for Import Administration, U.S. Department of
Commerce, Room 1870, within 30 days of the 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 the issues to
be discussed. See 19 CFR 351.310(c). At the hearing, oral presentations
will be limited to issues raised in the briefs.
Postponement of Final Determination and Extension of Provisional
Measures
Pursuant to section 735(a)(2) of the Tariff Act, on January 3,
2008, Nexteel, which accounted for a significant proportion of exports
of light-walled rectangular pipe and tube, requested that in the event
of an affirmative preliminary determination in this investigation, the
Department postpone its final determination by 60 days. At the same
time, Nexteel requested that the Department extend by 60 days the
application of the provisional measures. See Section 735(a)(2) of the
Tariff Act and 19 CFR 351.210(e)(2). In accordance with section 733(d)
of the Tariff Act and 19 CFR 351.210(b)(2)(ii), because (1) our
preliminary determination is affirmative, (2) the requesting exporter
accounts for a significant proportion of exports of the subject
merchandise, and (3) no compelling reasons for denial exist, we are
granting Nexteel's request and are postponing the final determination
until no later than 135 days after the publication of this notice in
the Federal Register. Suspension of liquidation will be extended
accordingly.
This determination is issued and published pursuant to sections
733(f) and 777(i)(1) of the Tariff Act.
Dated: January 23, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. 08-415 Filed 1-30-08; 8:45 am]
BILLING CODE 3510-DS-P