Stainless Steel Plate in Coils From Belgium: Preliminary Results of Antidumping Duty Administrative Review, 32298-32302 [E8-12779]
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Federal Register / Vol. 73, No. 110 / Friday, June 6, 2008 / Notices
751(a)(2)(B), and 777(i) of the Act, and
19 CFR 351.214(h) and 351.221(b)(4).
Dated: May 27, 2008.
David M. Spooner,
Assistant Secretary for Import
Administration.
[FR Doc. E8–12762 Filed 6–5–08; 8:45 am]
BILLING CODE 3510–DR–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–423–808]
Stainless Steel Plate in Coils From
Belgium: Preliminary Results of
Antidumping Duty Administrative
Review
Import Administration,
International Trade Administration,
U.S. Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) is conducting an
administrative review of the
antidumping duty order on stainless
steel plate in coils (SSPC) from Belgium.
For the period May 1, 2006, through
April 30, 2007, we have preliminarily
determined that U.S. sales have been
made below normal value (NV). If these
preliminary results are adopted in our
final results, we will instruct U.S.
Customs and Border Protection (CBP) to
assess antidumping duties based on the
difference between the constructed
export price (CEP) and NV. See
‘‘Preliminary Results of Review’’ section
of this notice. Interested parties are
invited to comment on these
preliminary results.
EFFECTIVE DATE: June 6, 2008.
FOR FURTHER INFORMATION CONTACT:
Cindy Robinson or George McMahon,
AD/CVD Operations, Office 3, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington DC 20230;
telephone (202) 482–3797 or (202) 482–
1167, respectively.
PWALKER on PROD1PC71 with NOTICES
AGENCY:
Background
On May 1, 2007, the Department
issued a notice of opportunity to request
an administrative review of this order
for the period of review (POR) May 1,
2006, through April 30, 2007. See
Antidumping or Countervailing Duty
Order, Finding, or Suspended
Investigation; Opportunity to Request
Administrative Review, 72 FR 23796
(May 1, 2007). On May 31, 2007, the
Department received timely requests for
an administrative review of this order
from the Petitioners, Allegheny Ludlum
Corporation, North American Stainless,
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United Auto Workers Local 3303,
Zanesville Armco Independent
Organization, and the United
Steelworkers of America, AFL–CIO/CLC
(collectively, Petitioners), and the
respondent, Ugine & ALZ Belgium (U&A
Belgium), respectively. On June 29,
2007, we published a notice initiating
an administrative review of the
antidumping duty order on SSPC from
Belgium covering one respondent, U&A
Belgium. See Initiation of Antidumping
and Countervailing Duty Administrative
Reviews, Request for Revocation in Part
and Deferral of Administrative Review,
72 FR 35690 (June 29, 2007).
On May 11, 2007, the Department
received a request from U&A Belgium
for a scope determination that the
antidumping and countervailing duty
orders on SSPC from Belgium exclude
stainless steel products with an actual
thickness less than 4.75mm, regardless
of nominal thickness. The Department
initiated a formal scope inquiry of the
SSPC orders 1 on July 23, 2007. On
November 16, 2007, and on January 15,
2008, the Department extended the
deadline to issue a final scope ruling
under 19 CFR 351.302(b). See
Memoranda To All Interested Parties
RE: Stainless Steel Plate in Coils from
Belgium Scope Inquiry, dated November
16, 2007 and January 15, 2008,
respectively.
On July 13, 2007, the Department
issued a questionnaire to U&A Belgium.
We received U&A Belgium’s response to
Section A of the Department’s
questionnaire on September 11, 2007,
and Sections B–D on September 28,
2007. On January 18, 2008, the
Department issued an extension of the
deadline for the preliminary results of
this antidumping duty administrative
review from January 31, 2008, until May
30, 2008. See Stainless Steel Plate in
Coils From Belgium: Notice of Extension
of Time Limit for Preliminary Results of
Administrative Review, 73 FR 3453
(January 18, 2008).
On October 29, 2007, the Department
received comments from the Petitioners
on the Sections A through C responses
for U&A Belgium. On January 24, 2008,
1 See Notice of Amended Final Determinations:
Stainless Steel Plate in Coils from Belgium and
South Africa; and Notice of Countervailing Duty
Orders: Stainless Steel Plate in Coils from Belgium,
Italy and South Africa, 64 FR 25288 (May 11, 1999);
Antidumping Duty Orders; Certain Stainless Steel
Plate in Coils From Belgium, Canada, Italy, the
Republic of Korea, South Africa, and Taiwan, 64 FR
27756 (May 21, 1999); Notice of Amended
Antidumping Duty Orders; Certain Stainless Steel
Plate in Coils From Belgium, Canada, Italy, the
Republic of Korea, South Africa, and Taiwan, 68 FR
11520 (March 11, 2003); and Amended
Countervailing Duty Orders; Certain Stainless Steel
Plate in Coils From Belgium, Italy, and South
Africa, 68 FR 11524 (March 11, 2003).
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the Petitioners submitted comments
requesting that the Department conduct
verification of the responses submitted
by U&A Belgium. On February 5, 2008,
U&A Belgium submitted comments
urging the Department to reject the
request for verification made by the
Petitioners. After reviewing the Sections
A through D responses from U&A
Belgium, the Department issued
supplemental questionnaires to U&A
Belgium. The Department issued
additional supplemental questions, after
reviewing U&A Belgium’s supplemental
questionnaire response. On January 18,
2008, the Department postponed the
preliminary results by 120 days. See
Stainless Steel Plate in Coils From
Belgium: Notice of Extension of Time
Limit for Preliminary Results of
Administrative Review, 73 FR 3453
(January 18, 2008).
U&A Belgium’s Reported Merger
U&A Belgium reported that it is
wholly owned by Arcelor S.A. and
stated that Arcelor S.A. is in the process
of merging with Mittal Steel, N.V.
(Mittal) to form Arcelor Mittal S.A.
Specifically, U&A Belgium reported that
‘‘{i}n June 2006, Arcelor and Mittal
Steel signed a memorandum of
understanding outlining the terms of a
merger. The subsequent merger
agreement was signed in May 2007.’’
See U&A Belgium’s September 11, 2007,
Section A Questionnaire Response at 10.
U&A Belgium stated that the merger was
structured as a two-step process. The
first step, the merger of Mittal Steel into
its wholly owned non-operating
subsidiary ArcelorMittal, was
completed in August 2007. The second
step, the integration of ArcelorMittal
into Arcelor S.A., was completed in
November 2007, and the company was
immediately renamed ArcelorMittal. As
a result, the entire merger is now
complete, effective November 2007.
U&A Belgium stated that ‘‘{w}hile the
merger was not technically completed
during the review period, U&A Belgium
prepared its responses to the
Department’s questionnaires as if
ArcelorMittal were fully consolidated.’’
See U&A Belgium’s April 15, 2008,
Sections A–C Supplemental
Questionnaire Response (April 15, 2008
SQR) at 1. U&A Belgium also reported
‘‘that the merger has had no impact on
U&A Belgium’s production and sale of
subject merchandise. In particular, there
has been no change to U&A Belgium’s
inputs from affiliates within the review
period resulting from the merger with
Mittal Steel. There has also been no
change to U&A Belgium’s sales to
affiliates within the POR resulting from
the merger with Mittal Steel.’’ Id. at 2.
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Quarterly Costs
In its Section A–C questionnaire
response dated January 29, 2008, at 39–
44, U&A Belgium provided information
regarding its input costs for the POR and
claimed that the use of a single
weighted average for the POR would
distort the margin calculations.
Therefore, instead of using single
weighted-average CONNUM-specific
costs for the POR, U&A Belgium urged
the Department to consider employing a
quarterly weighted-average cost
methodology in this segment of the
proceeding. On March 17, 2008, the
Petitioners submitted comments
claiming that the Department’s standard
practice of using a single weightedaverage cost for the POR remains proper
in the instant case. As a result, the
Petitioners urge the Department to reject
U&A Belgium’s proposal to use
quarterly weighted-average costs in this
administrative review. On May 15,
2008, U&A Belgium provided rebuttal
comments attesting that the record
evidence and the extraordinary
circumstances present in this review
warrant a departure from the
Department’s normal practice of using
annual costs. On May 22, 2008, the
Petitioners submitted additional
comments reiterating their claim that it
is inappropriate for the Department to
use quarterly costs in this review. The
Petitioners argue that U&A Belgium has
provided insufficient quantitative and
qualitative analyses, particularly related
to pricing practices and trends in the
home market, to support using a
quarterly cost methodology. On May 27,
2008, U&A Belgium submitted
comments that rebut the comments
addressed in the Petitioner’s May 22,
2008, letter. Specifically, U&A Belgium
rebuts that quarterly cost periods can be
quantified, there is a sufficient number
of sales to determine that prices
changed significantly over the POR, and
the alloy surcharge mechanism is a
pass-through pricing mechanism.
Furthermore, U&A Belgium contends
that certain proprietary issues discussed
by the Petitioners are irrelevant to the
issue of quarterly costs, U&A Belgium
correctly calculated its reported finance
expenses, and there is no need for
verification in this review.
The Department considered the sales
and cost information reported by U&A
Belgium, in addition to the comments
submitted by both the Petitioners and
U&A Belgium. Based on our analysis,
we preliminarily find that it is
appropriate to use U&A Belgium’s
annual weighted-average costs for this
review. The Department recently
requested public comment regarding the
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impact of cost changes on the cost
averaging period. See Antidumping
Methodologies for Proceedings that
Involve Significant Cost Changes
Throughout the Period of Investigation
(POI)/Period of Review (POR) that May
Require Using Shorter Cost Averaging
Periods; Request for Comment, 73 FR
26364 (May 9, 2008) (Antidumping
Methodologies; Request for Comment).
Although the Department has calculated
U&A Belgium’s costs on an annual basis
for these preliminary results, we intend
to consider this issue further within the
context of our analysis of the comments
that will be received, pursuant to the
Antidumping Methodologies; Request
for Comment. We expect to provide a
memorandum discussing the results of
our analysis of the comments received,
in order to give the parties to this
proceeding an opportunity to comment
for the final determination.
Scope of the Order
The product covered by this order is
certain stainless steel plate in coils.
Stainless steel is an alloy steel
containing, by weight, 1.2 percent or
less of carbon and 10.5 percent or more
of chromium, with or without other
elements. The subject plate products are
flat-rolled products, 254 mm or over in
width and 4.75 mm or more in
thickness, in coils, and annealed or
otherwise heat treated and pickled or
otherwise descaled. The subject plate
may also be further processed (e.g.,
cold-rolled, polished, etc.) provided that
it maintains the specified dimensions of
plate following such processing.
Excluded from the scope of this order
are the following: (1) Plate not in coils,
(2) plate that is not annealed or
otherwise heat treated and pickled or
otherwise descaled, (3) sheet and strip,
and (4) flat bars.
The merchandise subject to this order
is currently classifiable in the
Harmonized Tariff Schedule of the
United States (HTSUS) at subheadings:
7219.11.00.30, 7219.11.00.60,
7219.12.00.06, 7219.12.00.21,
7219.12.00.26, 7219.12.00.51,
7219.12.00.56, 7219.12.00.66,
7219.12.00.71, 7219.12.00.81,
7219.31.00.10, 7219.90.00.10,
7219.90.00.20, 7219.90.00.25,
7219.90.00.60, 7219.90.00.80,
7220.11.00.00, 7220.20.10.10,
7220.20.10.15, 7220.20.10.60,
7220.20.10.80, 7220.20.60.05,
7220.20.60.10, 7220.20.60.15,
7220.20.60.60, 7220.20.60.80,
7220.90.00.10, 7220.90.00.15,
7220.90.00.60, and 7220.90.00.80.
Although the HTSUS subheadings are
provided for convenience and customs
purposes, the written description of the
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merchandise subject to this order is
dispositive.
Analysis
Product Comparisons
In accordance with section 771(16) of
the Tariff Act of 1930, as amended (the
Act), we considered all products
produced by the respondent that are
covered by the description contained in
the ‘‘Scope of the Order’’ section above
and were sold in the home market
during the POR, to be the foreign like
product for purposes of determining
appropriate product comparisons to
U.S. sales. Where there were no sales of
identical merchandise in the home
market to compare to U.S. sales, we
compared U.S. sales to the most similar
foreign like product on the basis of the
characteristics listed in Appendix V of
the initial antidumping questionnaire
we provided to U&A Belgium. See U&A
Belgium Antidumping Questionnaire,
dated July 13, 2007, on the record in the
Central Records Unit (CRU), Room 1117
of the Main Commerce Building.
Normal Value Comparisons
To determine whether sales of subject
merchandise to the United States were
made at less than normal value, we
compared CEP to NV, as described in
the ‘‘Constructed Export Price’’ and
‘‘Normal Value’’ sections of this notice.
In accordance with section 777A(d)(2)
of the Act, we calculated monthly
weighted-average prices for NV and
compared these to individual U.S.
transaction prices.
Home Market Viability
In accordance with section
773(a)(1)(C) of the Act, 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 U&A Belgium’s volume of
home market sales of the foreign like
product to the volume of U.S. sales of
the subject merchandise. Pursuant to
section 773(a)(1)(B) and 19 CFR
351.404(b), because U&A Belgium’s
aggregate volume of home market sales
of the foreign like product was greater
than 5 percent of its aggregate volume
of U.S. sales of the subject merchandise,
we determined that the home market
was viable. Moreover, there is no
evidence on the record supporting a
particular market situation in the
exporting company’s country that
would not permit a proper comparison
of home market and U.S. prices.
Constructed Export Price
In accordance with section 772(b) of
the Act, CEP is the price at which the
subject merchandise is first sold (or
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agreed to be sold) in the United States
before or after the date of importation by
or for the account of the producer or
exporter of such merchandise, or by a
seller affiliated with the producer or
exporter, to a purchaser not affiliated
with the producer or exporter.
As stated at 19 CFR 351.401(i), the
Department will use the respondent’s
invoice date as the date of sale unless
another date better reflects the date
upon which the exporter or producer
establishes the essential terms of sale.
U&A Belgium reported the invoice date
as the date of sale for both the U.S.
market and the home market because
the date of invoice reflects the date on
which the material terms of sale were
finalized.
For purposes of this review, U&A
Belgium classified all of its export sales
of SSPC to the United States as CEP
sales. During the POR, U&A Belgium
made sales in the United States through
its U.S. affiliate, Arcelor Stainless USA
(AS USA), which then resold the
merchandise to unaffiliated customers
in the United States. The Department
calculated CEP based on packed prices
to customers in the United States. We
made deductions from the starting price,
net of discounts, for movement
expenses (foreign and U.S. movement,
U.S. customs duty and brokerage, and
post-sale warehousing) in accordance
with section 772(c)(2) of the Act and 19
CFR 351.401(e). In addition, because
U&A Belgium reported CEP sales, in
accordance with section 772(d)(1) of the
Act, we deducted from the starting
price, credit expenses, warranty
expenses, and indirect selling expenses,
including inventory carrying costs,
incurred in the United States and
Belgium and associated with economic
activities in the United States.
PWALKER on PROD1PC71 with NOTICES
Normal Value
In accordance with section
773(a)(1)(B)(i) of the Act, we have based
NV on the price at which the foreign
like product was first sold for
consumption in the home market, in the
usual commercial quantities and in the
ordinary course of trade. In addition,
because the NV level of trade (LOT) is
at a more advanced stage of distribution
than the CEP LOT, and available data
provide no appropriate basis to
determine an LOT adjustment between
NV and CEP, we made a CEP offset
pursuant to section 773(a)(7)(B) of the
Act (see ‘‘Level of Trade’’ section,
below).
We used sales to affiliated customers
only where we determined such sales
were made at arm’s-length prices (i.e., at
prices comparable to the prices at which
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the respondent sold identical
merchandise to unaffiliated customers).
Arm’s-Length Test
Sales to affiliated customers in the
home market not made at arm’s length
were excluded from our analysis. To test
whether these sales were made at arm’s
length, we compared the starting prices
of sales to affiliated and unaffiliated
customers net of all movement charges,
direct selling expenses, discounts, and
packing. In accordance with the
Department’s current practice, if the
prices charged to an affiliated party
were, on average, between 98 and 102
percent of the prices charged to
unaffiliated parties for merchandise
identical or most similar to that sold to
the affiliated party, we consider the
sales to be at arm’s-length prices. See 19
CFR 351.403(c). Conversely, where the
affiliated party did not pass the arm’slength test, all sales to that affiliated
party have been excluded from the NV
calculation. See Antidumping
Proceedings: Affiliated Party Sales in
the Ordinary Course of Trade, 67 FR
69186 (November 15, 2002).
Cost of Production
The Department disregarded sales
below the cost of production (COP) in
the last completed review. See Stainless
Steel Plate in Coils From Belgium: Final
Results of Antidumping Administrative
Review, 70 FR 72789 (December 7,
2005). We therefore have reasonable
grounds to believe or suspect, pursuant
to section 773(b)(2)(A)(ii) of the Act,
that sales of the foreign like product
under consideration for the
determination of NV in this review may
have been made at prices below COP.
Thus, pursuant to section 773(b)(1) of
the Act, we examined whether U&A
Belgium’s sales in the home market
were made at prices below the COP.
We compared sales of the foreign like
product in the home market with
model-specific COP figures. In
accordance with section 773(b)(3) of the
Act, we calculated COP based on the
sum of the costs of materials and
fabrication employed in producing the
foreign like product, plus selling,
general and administrative (SG&A)
expenses, financial expenses and all
costs and expenses incidental to placing
the foreign like product in packed
condition and ready for shipment. In
our sales-below-cost analysis, we relied
on home market sales and COP
information provided by U&A Belgium
in its questionnaire responses, except
for the reported financial expense ratio.
We made adjustments to the
consolidated financial expense ratio to
exclude long-term interest income and
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include certain financial costs and gains
recognized by the parent company in its
2006 fiscal year income statement. See
Memorandum from Angela Strom,
Accountant, to Neal Halper, Director,
Office of Accounting, entitled ‘‘Cost of
Production and Constructed Value
Calculation Adjustments for the
Preliminary Determination Results—
U&A Belgium,’’ dated May 30, 2008.
We compared the weighted-average
model-specific COPs to home market
sales of the foreign like product, as
required under section 773(b) of the Act,
in order to determine whether these
sales had been made at prices below the
COP. In determining whether to
disregard home market sales made at
prices below the COP, we examined
whether such sales were made (1)
within an extended period of time in
substantial quantities, and (2) at prices
which did not permit recovery of all
costs within a reasonable period of time
in the normal course of trade, in
accordance with sections 773(b)(1)(A)
and (B) of the Act. On a product-specific
basis, we compared the COP to home
market prices, less any movement
charges, discounts, and direct and
indirect selling expenses.
Pursuant to section 773(b)(2)(C) of the
Act, where less than 20 percent of the
respondent’s sales of a given product
were at prices which represent less than
the COP, we did not disregard any
below-cost sales of that product because
the below-cost sales were not made in
substantial quantities within an
extended period of time. Where 20
percent or more of the respondent’s
sales of a given product were at prices
which represented less than the COP,
we determined that they were made in
substantial quantities within an
extended period of time, in accordance
with section 773(b)(2)(C) of the Act.
Because we compared prices to PORaverage costs, we also determined that
the below-cost prices did not permit the
recovery of costs within a reasonable
period of time, in accordance with
section 773(b)(1)(B) of the Act.
Therefore, we disregarded the belowcost sales and used the remaining sales,
if any, as the basis for NV, in accordance
with section 773(b)(1) of the Act.
CEP to NV Comparison
For those sales at prices above COP,
we based NV on home market prices to
affiliated (when made at prices
determined to be at arm’s length) or
unaffiliated parties, in accordance with
19 CFR 351.403. Home market starting
prices were based on packed prices to
affiliated or unaffiliated purchasers in
the home market, net of discounts. We
made adjustments, where applicable, for
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packing and movement expenses, in
accordance with sections 773(a)(6)(A)
and (B) of the Act. We also made
adjustments for differences in costs
attributable to differences in physical
characteristics of the merchandise
pursuant to section 773(a)(6)(C)(ii) of
the Act. For comparison to CEP, we
deducted home market direct selling
expenses pursuant to section
773(a)(6)(C)(iii) of the Act and 19 CFR
351.410(c).
Section 773(a)(4) of the Act provides
that where NV cannot be based on
comparison-market sales, NV may be
based on constructed value (CV).
Accordingly, for those products for
which we could not determine the NV
based on comparison-market sales,
either because there were no useable
sales of a comparable product or all
sales of the comparable products failed
the COP test, we based NV on CV.
Section 773(e) of the Act provides that
CV shall be based on the sum of the cost
of materials and fabrication for the
imported merchandise, plus amounts
SG&A and interest expenses, profit, and
U.S. packing costs. We calculated the
cost of materials and fabrication based
on the methodology described in the
‘‘Cost of Production Analysis’’ section,
above. We based SG&A and interest
expenses and profit on the actual
amounts incurred and realized by
respondent in connection with the
production and sale of the foreign like
product in the ordinary course of trade
for consumption in the home market, in
accordance with section 773(e)(2)(A) of
the Act.
We made adjustments to CV for
differences in circumstances of sale in
accordance with section 773(a)(8) of the
Act and 19 CFR 351.410. For
comparisons to CEP, we made
circumstance-of-sale adjustments by
deducting comparison market direct
selling expenses from CV. See 19 CFR
351.410(c).
Level of Trade
In accordance with section
773(a)(1)(B)(i) of the Act, to the extent
practicable, we determined NV based on
sales in the comparison market at the
same LOT as the U.S. sales. See 19 CFR
351.412. The NV LOT is the level of the
starting-price sale in the comparison
market or, when NV is based on CV, the
level of the sales from which we derive
SG&A and profit. For EP, the U.S. LOT
is also the level of the starting-price
sale, which is usually from exporter to
importer. For CEP, it is the level of the
constructed sale from the exporter to the
importer. See 19 CFR 351.412. As noted
above, U&A Belgium classified all its
exported sales of SSPC as CEP sales.
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To determine whether NV sales are at
a different LOT than CEP, 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 a
LOT adjustment under section
773(a)(7)(A) of the Act. For CEP sales, if
the NV level is at a more advanced stage
of distribution than the CEP LOT and
the data available do not provide a basis
to determine a LOT adjustment, we
adjust NV under section 773(a)(7)(B) of
the Act (the CEP offset provision). See,
e.g., Final Determination of Sales at Less
Than Fair Value: Greenhouse Tomatoes
From Canada, 67 FR 8781 (February 26,
2002); see also Notice of Final
Determination of Sales at Less than Fair
Value: Certain Cut-to-Length Carbon
Steel Plate from South Africa, 62 FR
61731 (November 19, 1997) and Certain
Hot-Rolled Flat-Rolled Carbon Quality
Steel Products from Brazil; Preliminary
Results of Antidumping Duty
Administrative Review, 70 FR 17406
(April 6, 2005). For CEP sales, we
consider only the selling activities
reflected in the price after the deduction
of expenses and CEP profit under
section 772(d) of the Act. See Micron
Technology Inc. v. United States, 243
F.3d 1301, 1314–1315 (Fed. Cir. 2001).
We expect that, if the claimed LOTs are
the same, the functions and activities of
the seller should be similar. Conversely,
if a party claims that the LOTs are
different for different groups of sales,
the functions and activities of the seller
should be dissimilar. See Porcelain-onSteel Cookware from Mexico: Final
Results of Administrative Review, 65 FR
30068 (May 10, 2000).
In the current review, U&A Belgium
reported seven customer categories and
indicated that its sales were made at a
single channel of distribution for the
sale of SSPC in Belgium through one
LOT in the comparison market.
Specifically, U&A Belgium reported that
it sells SSPC to customers in the home
market through its affiliated sales
agents, U&A Benelux (regional sales
office) and U&A S.A. (principal sales
agent). U&A Belgium performs a variety
of distinct selling functions in the
comparison market. See Appendix A–15
of the September 11, 2007,
Questionnaire Response. We examined
the selling functions performed for the
seven customer categories and found
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that the selling activities and services do
not vary among them. See Memorandum
from George McMahon to The File
‘‘Calculation Memorandum for Ugine &
ALZ, N.V. Belgium (U&A Belgium) for
the Preliminary Results of the Sixth
Administrative Review of Stainless
Steel Plate in Coils (SSPC) from
Belgium,’’ dated May 30, 2008 (Sales
Calculation Memorandum). Therefore,
we preliminarily conclude that U&A
Belgium’s sales in the home market
constitute one LOT.
U&A Belgium reported two channels
of distribution and two LOTs in the U.S.
market. U&A Belgium’s two U.S.
channels of distribution are: 1) Direct
sales by AS USA of made-to-order
merchandise produced by U&A Belgium
to end-users and unaffiliated
distributors, and 2) warehouse sales by
AS USA of merchandise imported from
U&A Belgium and stocked by AS USA.
See September 11, 2007, Section A,
Volume I, Questionnaire Response at
16–17; see also April 15, 2008 SQR at
20. U&A Belgium performed several
selling functions in the United States in
connection with the sale of SSPC. The
selling functions that U&A Belgium
independently performed for its U.S.
sales are limited to: handling product
information and training sessions,
freight arrangements, packing, and
technical services. In addition, U&A
Belgium and AS USA performed the
following four sales functions jointly in
both sales channels in the United States:
Product information and training
sessions, advertising to customers,
freight arrangements, and after sales
servicing support or claims. In our
comparison of the U.S. and home
market LOTs, we eliminated from
consideration selling functions
performed by AS USA and only
considered the portion of the selling
functions performed by U&A Belgium
after making adjustments under section
772(d) of the Act.
Our analysis of these selling functions
performed by U&A Belgium in the
United States shows that the selling
activities and services do not vary
according to the type of customer for
sales within each channel of
distribution. Because we find that there
is no variation in type or level of
services provided by U&A Belgium for
the channels of distribution in the
United States, we preliminarily
determine that there is only one LOT in
the U.S. market. See ‘‘Sales Calculation
Memorandum.’’ Moreover, we find that
the distribution channels and selling
functions reported by U&A Belgium for
the instant review are consistent with
those reported in the prior
administrative review of SSPC from
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Belgium, in which case the Department
determined that U&A Belgium sold
through only one LOT in the U.S.
market. See Memorandum entitled
‘‘Analysis for Ugine & ALZ, N.V.
Belgium (U&A Belgium) for the
Preliminary Results of the Fifth
Administrative Review of Stainless
Steel Plate in Coils (SSPC) from
Belgium,’’ dated May 31, 2005, at 2.
U&A Belgium and its affiliated agent
for global sale and distribution of
stainless steel flat products produced in
Belgium and France, U&A S.A., perform
all home market selling activities.
Selling functions for the U.S. market, as
indicated above, are primarily
performed by AS USA, with the
exception of two selling functions
handled solely by U&A Belgium, and
two selling functions that are performed
jointly by Arcelor Stainless
International (ASI), AS USA, and U&A
S.A. We compared the U.S. and home
market LOTs and preliminarily
determined that, after eliminating from
consideration selling functions
performed by AS USA (pursuant to
section 772(d) of the Act), U&A
Belgium’s home market LOT is at a
more advanced stage of distribution
than the CEP LOT. Due to the
proprietary nature of the discussion, see
the ‘‘Sales Calculation Memorandum’’
for additional detail.
We then considered whether we
could make a LOT adjustment. In this
case, U&A Belgium only sold at one
LOT in the comparison market;
therefore, there is no information
available to determine a pattern of
consistent price differences between the
sales on which NV is based and the
comparison market sales at the LOT of
the export transaction, in accordance
with the Department’s normal
methodology as described above. See 19
CFR 351.412(d). Further, we do not have
record information which would allow
us to examine pricing patterns based on
the respondent’s sales of other products,
and there are no other respondents or
other record information on which such
an analysis could be based.
Accordingly, because only one LOT
exists in the home market we could not
make a LOT adjustment. However,
because the LOT in the comparison
market is at a more advanced stage of
distribution than the LOT of the CEP
transactions, we made a CEP offset
adjustment in accordance with section
773(a)(7)(B) of the Act and 19 CFR
351.412(f). This offset is equal to the
amount of indirect selling expenses
incurred in the comparison market not
exceeding the amount of indirect selling
expenses and commissions deducted
from the U.S. price in accordance with
VerDate Aug<31>2005
16:09 Jun 05, 2008
Jkt 214001
section 772(d)(1)(D) of the Act. For a
detailed discussion, see ‘‘Sales
Calculation Memorandum.’’
Currency Conversion
We made currency conversions
pursuant to 19 CFR 351.415 based on
the exchange rates certified by the
Federal Reserve Bank.
Preliminary Results of Review
We preliminarily determine that for
the period May 1, 2006, through April
30, 2007, the following dumping margin
exists:
Manufacturer/Exporter
U&A Belgium ............................
Margin
(percent)
12.68
Duty Assessment and Cash Deposit
Requirements
The Department shall determine, and
CBP shall assess, antidumping duties on
all appropriate entries. Pursuant to 19
CFR 351.212(b), the Department
calculates an assessment rate for each
importer of the subject merchandise for
each respondent. The Department will
issue appropriate assessment
instructions directly to CBP within 15
days of publication of the final results
of this review.
Furthermore, the following cash
deposit rates will be effective with
respect to all shipments of SSPC from
Belgium entered, or withdrawn from
warehouse, for consumption on or after
the publication date of the final results,
as provided for by section 751(a)(1) of
the Act: (1) For U&A Belgium, the cash
deposit rate will be the rate established
in the final results of this review; (2) for
previously reviewed or investigated
companies not listed above, the cash
deposit rate will be the companyspecific rate established for the most
recent period; (3) if the exporter is not
a firm covered in this review, a prior
review, or the less-than-fair-value
(LTFV) investigation, but the
manufacturer is, the cash deposit rate
will be the rate established for the most
recent period for the manufacturer of
the subject merchandise; and (4) if
neither the exporter nor the
manufacturer is a firm covered by this
review, a prior review, or the LTFV
investigation, the cash deposit rate shall
be the all-others rate established in the
LTFV investigation, which is 9.86
percent. See Notice of Final
Determination of Sales at Less Than
Fair Value: Stainless Steel Plate in Coils
From Belgium, 64 FR 15476 (March 31,
1999). These deposit rates, when
imposed, shall remain in effect until
further notice.
PO 00000
Frm 00020
Fmt 4703
Sfmt 4703
Public Comment
Pursuant to 19 CFR 351.224(b), the
Department will disclose to parties to
the proceeding any calculations
performed in connection with these
preliminary results within five days
after the date of publication of this
notice. Pursuant to 19 CFR 351.309,
interested parties may submit written
comments in response to these
preliminary results. Unless extended by
the Department, case briefs are to be
submitted within 30 days after the date
of publication of this notice, and
rebuttal briefs, limited to arguments
raised in case briefs, are to be submitted
no later than five days after the time
limit for filing case briefs. Parties who
submit arguments in this proceeding are
requested to submit with the argument:
(1) a statement of the issues, and (2) a
brief summary of the argument. Case
and rebuttal briefs must be served on
interested parties in accordance with 19
CFR 351.303(f).
Also, pursuant to 19 CFR 351.310(c),
within 30 days of the date of publication
of this notice, interested parties may
request a public hearing on arguments
to be raised in the case and rebuttal
briefs. Unless the Secretary specifies
otherwise, the hearing, if requested, will
be held two days after the date for
submission of rebuttal briefs. Parties
will be notified of the time and location.
The Department will publish the final
results of this administrative review,
including the results of its analysis of
issues raised in any case or rebuttal
brief, no later than 120 days after
publication of these preliminary results,
unless extended. See 19 CFR 351.213(h).
Notification to Importers
This notice serves as a preliminary
reminder to importers of their
responsibility under 19 CFR 351.402(f)
to file a certificate regarding the
reimbursement of antidumping duties
prior to liquidation of the relevant
entries during this review period.
Failure to comply with this requirement
could result in the Secretary’s
presumption that reimbursement of
antidumping duties occurred and the
subsequent assessment of double
antidumping duties.
These preliminary results of this
administrative review and notice are
issued and published in accordance
with sections 751(a)(1) and 777(i)(1) of
the Act.
Dated: May 30, 2008.
David M. Spooner,
Assistant Secretary for Import
Administration.
[FR Doc. E8–12779 Filed 6–5–08; 8:45 am]
BILLING CODE 3510–DS–P
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Agencies
[Federal Register Volume 73, Number 110 (Friday, June 6, 2008)]
[Notices]
[Pages 32298-32302]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-12779]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-423-808]
Stainless Steel Plate in Coils From Belgium: Preliminary Results
of Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration, U.S.
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) is conducting an
administrative review of the antidumping duty order on stainless steel
plate in coils (SSPC) from Belgium. For the period May 1, 2006, through
April 30, 2007, we have preliminarily determined that U.S. sales have
been made below normal value (NV). If these preliminary results are
adopted in our final results, we will instruct U.S. Customs and Border
Protection (CBP) to assess antidumping duties based on the difference
between the constructed export price (CEP) and NV. See ``Preliminary
Results of Review'' section of this notice. Interested parties are
invited to comment on these preliminary results.
EFFECTIVE DATE: June 6, 2008.
FOR FURTHER INFORMATION CONTACT: Cindy Robinson or George McMahon, AD/
CVD Operations, Office 3, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington DC 20230; telephone (202) 482-3797
or (202) 482-1167, respectively.
Background
On May 1, 2007, the Department issued a notice of opportunity to
request an administrative review of this order for the period of review
(POR) May 1, 2006, through April 30, 2007. See Antidumping or
Countervailing Duty Order, Finding, or Suspended Investigation;
Opportunity to Request Administrative Review, 72 FR 23796 (May 1,
2007). On May 31, 2007, the Department received timely requests for an
administrative review of this order from the Petitioners, Allegheny
Ludlum Corporation, North American Stainless, United Auto Workers Local
3303, Zanesville Armco Independent Organization, and the United
Steelworkers of America, AFL-CIO/CLC (collectively, Petitioners), and
the respondent, Ugine & ALZ Belgium (U&A Belgium), respectively. On
June 29, 2007, we published a notice initiating an administrative
review of the antidumping duty order on SSPC from Belgium covering one
respondent, U&A Belgium. See Initiation of Antidumping and
Countervailing Duty Administrative Reviews, Request for Revocation in
Part and Deferral of Administrative Review, 72 FR 35690 (June 29,
2007).
On May 11, 2007, the Department received a request from U&A Belgium
for a scope determination that the antidumping and countervailing duty
orders on SSPC from Belgium exclude stainless steel products with an
actual thickness less than 4.75mm, regardless of nominal thickness. The
Department initiated a formal scope inquiry of the SSPC orders \1\ on
July 23, 2007. On November 16, 2007, and on January 15, 2008, the
Department extended the deadline to issue a final scope ruling under 19
CFR 351.302(b). See Memoranda To All Interested Parties RE: Stainless
Steel Plate in Coils from Belgium Scope Inquiry, dated November 16,
2007 and January 15, 2008, respectively.
---------------------------------------------------------------------------
\1\ See Notice of Amended Final Determinations: Stainless Steel
Plate in Coils from Belgium and South Africa; and Notice of
Countervailing Duty Orders: Stainless Steel Plate in Coils from
Belgium, Italy and South Africa, 64 FR 25288 (May 11, 1999);
Antidumping Duty Orders; Certain Stainless Steel Plate in Coils From
Belgium, Canada, Italy, the Republic of Korea, South Africa, and
Taiwan, 64 FR 27756 (May 21, 1999); Notice of Amended Antidumping
Duty Orders; Certain Stainless Steel Plate in Coils From Belgium,
Canada, Italy, the Republic of Korea, South Africa, and Taiwan, 68
FR 11520 (March 11, 2003); and Amended Countervailing Duty Orders;
Certain Stainless Steel Plate in Coils From Belgium, Italy, and
South Africa, 68 FR 11524 (March 11, 2003).
---------------------------------------------------------------------------
On July 13, 2007, the Department issued a questionnaire to U&A
Belgium. We received U&A Belgium's response to Section A of the
Department's questionnaire on September 11, 2007, and Sections B-D on
September 28, 2007. On January 18, 2008, the Department issued an
extension of the deadline for the preliminary results of this
antidumping duty administrative review from January 31, 2008, until May
30, 2008. See Stainless Steel Plate in Coils From Belgium: Notice of
Extension of Time Limit for Preliminary Results of Administrative
Review, 73 FR 3453 (January 18, 2008).
On October 29, 2007, the Department received comments from the
Petitioners on the Sections A through C responses for U&A Belgium. On
January 24, 2008, the Petitioners submitted comments requesting that
the Department conduct verification of the responses submitted by U&A
Belgium. On February 5, 2008, U&A Belgium submitted comments urging the
Department to reject the request for verification made by the
Petitioners. After reviewing the Sections A through D responses from
U&A Belgium, the Department issued supplemental questionnaires to U&A
Belgium. The Department issued additional supplemental questions, after
reviewing U&A Belgium's supplemental questionnaire response. On January
18, 2008, the Department postponed the preliminary results by 120 days.
See Stainless Steel Plate in Coils From Belgium: Notice of Extension of
Time Limit for Preliminary Results of Administrative Review, 73 FR 3453
(January 18, 2008).
U&A Belgium's Reported Merger
U&A Belgium reported that it is wholly owned by Arcelor S.A. and
stated that Arcelor S.A. is in the process of merging with Mittal
Steel, N.V. (Mittal) to form Arcelor Mittal S.A. Specifically, U&A
Belgium reported that ``{i{time} n June 2006, Arcelor and Mittal Steel
signed a memorandum of understanding outlining the terms of a merger.
The subsequent merger agreement was signed in May 2007.'' See U&A
Belgium's September 11, 2007, Section A Questionnaire Response at 10.
U&A Belgium stated that the merger was structured as a two-step
process. The first step, the merger of Mittal Steel into its wholly
owned non-operating subsidiary ArcelorMittal, was completed in August
2007. The second step, the integration of ArcelorMittal into Arcelor
S.A., was completed in November 2007, and the company was immediately
renamed ArcelorMittal. As a result, the entire merger is now complete,
effective November 2007. U&A Belgium stated that ``{w{time} hile the
merger was not technically completed during the review period, U&A
Belgium prepared its responses to the Department's questionnaires as if
ArcelorMittal were fully consolidated.'' See U&A Belgium's April 15,
2008, Sections A-C Supplemental Questionnaire Response (April 15, 2008
SQR) at 1. U&A Belgium also reported ``that the merger has had no
impact on U&A Belgium's production and sale of subject merchandise. In
particular, there has been no change to U&A Belgium's inputs from
affiliates within the review period resulting from the merger with
Mittal Steel. There has also been no change to U&A Belgium's sales to
affiliates within the POR resulting from the merger with Mittal
Steel.'' Id. at 2.
[[Page 32299]]
Quarterly Costs
In its Section A-C questionnaire response dated January 29, 2008,
at 39-44, U&A Belgium provided information regarding its input costs
for the POR and claimed that the use of a single weighted average for
the POR would distort the margin calculations. Therefore, instead of
using single weighted-average CONNUM-specific costs for the POR, U&A
Belgium urged the Department to consider employing a quarterly
weighted-average cost methodology in this segment of the proceeding. On
March 17, 2008, the Petitioners submitted comments claiming that the
Department's standard practice of using a single weighted-average cost
for the POR remains proper in the instant case. As a result, the
Petitioners urge the Department to reject U&A Belgium's proposal to use
quarterly weighted-average costs in this administrative review. On May
15, 2008, U&A Belgium provided rebuttal comments attesting that the
record evidence and the extraordinary circumstances present in this
review warrant a departure from the Department's normal practice of
using annual costs. On May 22, 2008, the Petitioners submitted
additional comments reiterating their claim that it is inappropriate
for the Department to use quarterly costs in this review. The
Petitioners argue that U&A Belgium has provided insufficient
quantitative and qualitative analyses, particularly related to pricing
practices and trends in the home market, to support using a quarterly
cost methodology. On May 27, 2008, U&A Belgium submitted comments that
rebut the comments addressed in the Petitioner's May 22, 2008, letter.
Specifically, U&A Belgium rebuts that quarterly cost periods can be
quantified, there is a sufficient number of sales to determine that
prices changed significantly over the POR, and the alloy surcharge
mechanism is a pass-through pricing mechanism. Furthermore, U&A Belgium
contends that certain proprietary issues discussed by the Petitioners
are irrelevant to the issue of quarterly costs, U&A Belgium correctly
calculated its reported finance expenses, and there is no need for
verification in this review.
The Department considered the sales and cost information reported
by U&A Belgium, in addition to the comments submitted by both the
Petitioners and U&A Belgium. Based on our analysis, we preliminarily
find that it is appropriate to use U&A Belgium's annual weighted-
average costs for this review. The Department recently requested public
comment regarding the impact of cost changes on the cost averaging
period. See Antidumping Methodologies for Proceedings that Involve
Significant Cost Changes Throughout the Period of Investigation (POI)/
Period of Review (POR) that May Require Using Shorter Cost Averaging
Periods; Request for Comment, 73 FR 26364 (May 9, 2008) (Antidumping
Methodologies; Request for Comment). Although the Department has
calculated U&A Belgium's costs on an annual basis for these preliminary
results, we intend to consider this issue further within the context of
our analysis of the comments that will be received, pursuant to the
Antidumping Methodologies; Request for Comment. We expect to provide a
memorandum discussing the results of our analysis of the comments
received, in order to give the parties to this proceeding an
opportunity to comment for the final determination.
Scope of the Order
The product covered by this order is certain stainless steel plate
in coils. Stainless steel is an alloy steel containing, by weight, 1.2
percent or less of carbon and 10.5 percent or more of chromium, with or
without other elements. The subject plate products are flat-rolled
products, 254 mm or over in width and 4.75 mm or more in thickness, in
coils, and annealed or otherwise heat treated and pickled or otherwise
descaled. The subject plate may also be further processed (e.g., cold-
rolled, polished, etc.) provided that it maintains the specified
dimensions of plate following such processing. Excluded from the scope
of this order are the following: (1) Plate not in coils, (2) plate that
is not annealed or otherwise heat treated and pickled or otherwise
descaled, (3) sheet and strip, and (4) flat bars.
The merchandise subject to this order is currently classifiable in
the Harmonized Tariff Schedule of the United States (HTSUS) at
subheadings: 7219.11.00.30, 7219.11.00.60, 7219.12.00.06,
7219.12.00.21, 7219.12.00.26, 7219.12.00.51, 7219.12.00.56,
7219.12.00.66, 7219.12.00.71, 7219.12.00.81, 7219.31.00.10,
7219.90.00.10, 7219.90.00.20, 7219.90.00.25, 7219.90.00.60,
7219.90.00.80, 7220.11.00.00, 7220.20.10.10, 7220.20.10.15,
7220.20.10.60, 7220.20.10.80, 7220.20.60.05, 7220.20.60.10,
7220.20.60.15, 7220.20.60.60, 7220.20.60.80, 7220.90.00.10,
7220.90.00.15, 7220.90.00.60, and 7220.90.00.80. Although the HTSUS
subheadings are provided for convenience and customs purposes, the
written description of the merchandise subject to this order is
dispositive.
Analysis
Product Comparisons
In accordance with section 771(16) of the Tariff Act of 1930, as
amended (the Act), we considered all products produced by the
respondent that are covered by the description contained in the ``Scope
of the Order'' section above and were sold in the home market during
the POR, to be the foreign like product for purposes of determining
appropriate product comparisons to U.S. sales. Where there were no
sales of identical merchandise in the home market to compare to U.S.
sales, we compared U.S. sales to the most similar foreign like product
on the basis of the characteristics listed in Appendix V of the initial
antidumping questionnaire we provided to U&A Belgium. See U&A Belgium
Antidumping Questionnaire, dated July 13, 2007, on the record in the
Central Records Unit (CRU), Room 1117 of the Main Commerce Building.
Normal Value Comparisons
To determine whether sales of subject merchandise to the United
States were made at less than normal value, we compared CEP to NV, as
described in the ``Constructed Export Price'' and ``Normal Value''
sections of this notice. In accordance with section 777A(d)(2) of the
Act, we calculated monthly weighted-average prices for NV and compared
these to individual U.S. transaction prices.
Home Market Viability
In accordance with section 773(a)(1)(C) of the Act, 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 U&A Belgium's
volume of home market sales of the foreign like product to the volume
of U.S. sales of the subject merchandise. Pursuant to section
773(a)(1)(B) and 19 CFR 351.404(b), because U&A Belgium's aggregate
volume of home market sales of the foreign like product was greater
than 5 percent of its aggregate volume of U.S. sales of the subject
merchandise, we determined that the home market was viable. Moreover,
there is no evidence on the record supporting a particular market
situation in the exporting company's country that would not permit a
proper comparison of home market and U.S. prices.
Constructed Export Price
In accordance with section 772(b) of the Act, CEP is the price at
which the subject merchandise is first sold (or
[[Page 32300]]
agreed to be sold) in the United States before or after the date of
importation by or for the account of the producer or exporter of such
merchandise, or by a seller affiliated with the producer or exporter,
to a purchaser not affiliated with the producer or exporter.
As stated at 19 CFR 351.401(i), the Department will use the
respondent's invoice date as the date of sale unless another date
better reflects the date upon which the exporter or producer
establishes the essential terms of sale. U&A Belgium reported the
invoice date as the date of sale for both the U.S. market and the home
market because the date of invoice reflects the date on which the
material terms of sale were finalized.
For purposes of this review, U&A Belgium classified all of its
export sales of SSPC to the United States as CEP sales. During the POR,
U&A Belgium made sales in the United States through its U.S. affiliate,
Arcelor Stainless USA (AS USA), which then resold the merchandise to
unaffiliated customers in the United States. The Department calculated
CEP based on packed prices to customers in the United States. We made
deductions from the starting price, net of discounts, for movement
expenses (foreign and U.S. movement, U.S. customs duty and brokerage,
and post-sale warehousing) in accordance with section 772(c)(2) of the
Act and 19 CFR 351.401(e). In addition, because U&A Belgium reported
CEP sales, in accordance with section 772(d)(1) of the Act, we deducted
from the starting price, credit expenses, warranty expenses, and
indirect selling expenses, including inventory carrying costs, incurred
in the United States and Belgium and associated with economic
activities in the United States.
Normal Value
In accordance with section 773(a)(1)(B)(i) of the Act, we have
based NV on the price at which the foreign like product was first sold
for consumption in the home market, in the usual commercial quantities
and in the ordinary course of trade. In addition, because the NV level
of trade (LOT) is at a more advanced stage of distribution than the CEP
LOT, and available data provide no appropriate basis to determine an
LOT adjustment between NV and CEP, we made a CEP offset pursuant to
section 773(a)(7)(B) of the Act (see ``Level of Trade'' section,
below).
We used sales to affiliated customers only where we determined such
sales were made at arm's-length prices (i.e., at prices comparable to
the prices at which the respondent sold identical merchandise to
unaffiliated customers).
Arm's-Length Test
Sales to affiliated customers in the home market not made at arm's
length were excluded from our analysis. To test whether these sales
were made at arm's length, we compared the starting prices of sales to
affiliated and unaffiliated customers net of all movement charges,
direct selling expenses, discounts, and packing. In accordance with the
Department's current practice, if the prices charged to an affiliated
party were, on average, between 98 and 102 percent of the prices
charged to unaffiliated parties for merchandise identical or most
similar to that sold to the affiliated party, we consider the sales to
be at arm's-length prices. See 19 CFR 351.403(c). Conversely, where the
affiliated party did not pass the arm's-length test, all sales to that
affiliated party have been excluded from the NV calculation. See
Antidumping Proceedings: Affiliated Party Sales in the Ordinary Course
of Trade, 67 FR 69186 (November 15, 2002).
Cost of Production
The Department disregarded sales below the cost of production (COP)
in the last completed review. See Stainless Steel Plate in Coils From
Belgium: Final Results of Antidumping Administrative Review, 70 FR
72789 (December 7, 2005). We therefore have reasonable grounds to
believe or suspect, pursuant to section 773(b)(2)(A)(ii) of the Act,
that sales of the foreign like product under consideration for the
determination of NV in this review may have been made at prices below
COP. Thus, pursuant to section 773(b)(1) of the Act, we examined
whether U&A Belgium's sales in the home market were made at prices
below the COP.
We compared sales of the foreign like product in the home market
with model-specific COP figures. In accordance with section 773(b)(3)
of the Act, we calculated COP based on the sum of the costs of
materials and fabrication employed in producing the foreign like
product, plus selling, general and administrative (SG&A) expenses,
financial expenses and all costs and expenses incidental to placing the
foreign like product in packed condition and ready for shipment. In our
sales-below-cost analysis, we relied on home market sales and COP
information provided by U&A Belgium in its questionnaire responses,
except for the reported financial expense ratio. We made adjustments to
the consolidated financial expense ratio to exclude long-term interest
income and include certain financial costs and gains recognized by the
parent company in its 2006 fiscal year income statement. See Memorandum
from Angela Strom, Accountant, to Neal Halper, Director, Office of
Accounting, entitled ``Cost of Production and Constructed Value
Calculation Adjustments for the Preliminary Determination Results--U&A
Belgium,'' dated May 30, 2008.
We compared the weighted-average model-specific COPs to home market
sales of the foreign like product, as required under section 773(b) of
the Act, in order to determine whether these sales had been made at
prices below the COP. In determining whether to disregard home market
sales made at prices below the COP, we examined whether such sales were
made (1) within an extended period of time in substantial quantities,
and (2) at prices which did not permit recovery of all costs within a
reasonable period of time in the normal course of trade, in accordance
with sections 773(b)(1)(A) and (B) of the Act. On a product-specific
basis, we compared the COP to home market prices, less any movement
charges, discounts, and direct and indirect selling expenses.
Pursuant to section 773(b)(2)(C) of the Act, where less than 20
percent of the respondent's sales of a given product were at prices
which represent less than the COP, we did not disregard any below-cost
sales of that product because the below-cost sales were not made in
substantial quantities within an extended period of time. Where 20
percent or more of the respondent's sales of a given product were at
prices which represented less than the COP, we determined that they
were made in substantial quantities within an extended period of time,
in accordance with section 773(b)(2)(C) of the Act. Because we compared
prices to POR-average costs, we also determined that the below-cost
prices did not permit the recovery of costs within a reasonable period
of time, in accordance with section 773(b)(1)(B) of the Act. Therefore,
we disregarded the below-cost sales and used the remaining sales, if
any, as the basis for NV, in accordance with section 773(b)(1) of the
Act.
CEP to NV Comparison
For those sales at prices above COP, we based NV on home market
prices to affiliated (when made at prices determined to be at arm's
length) or unaffiliated parties, in accordance with 19 CFR 351.403.
Home market starting prices were based on packed prices to affiliated
or unaffiliated purchasers in the home market, net of discounts. We
made adjustments, where applicable, for
[[Page 32301]]
packing and movement expenses, in accordance with sections 773(a)(6)(A)
and (B) of the Act. We also made adjustments for differences in costs
attributable to differences in physical characteristics of the
merchandise pursuant to section 773(a)(6)(C)(ii) of the Act. For
comparison to CEP, we deducted home market direct selling expenses
pursuant to section 773(a)(6)(C)(iii) of the Act and 19 CFR 351.410(c).
Section 773(a)(4) of the Act provides that where NV cannot be based
on comparison-market sales, NV may be based on constructed value (CV).
Accordingly, for those products for which we could not determine the NV
based on comparison-market sales, either because there were no useable
sales of a comparable product or all sales of the comparable products
failed the COP test, we based NV on CV.
Section 773(e) of the Act provides that CV shall be based on the
sum of the cost of materials and fabrication for the imported
merchandise, plus amounts SG&A and interest expenses, profit, and U.S.
packing costs. We calculated the cost of materials and fabrication
based on the methodology described in the ``Cost of Production
Analysis'' section, above. We based SG&A and interest expenses and
profit on the actual amounts incurred and realized by respondent in
connection with the production and sale of the foreign like product in
the ordinary course of trade for consumption in the home market, in
accordance with section 773(e)(2)(A) of the Act.
We made adjustments to CV for differences in circumstances of sale
in accordance with section 773(a)(8) of the Act and 19 CFR 351.410. For
comparisons to CEP, we made circumstance-of-sale adjustments by
deducting comparison market direct selling expenses from CV. See 19 CFR
351.410(c).
Level of Trade
In accordance with section 773(a)(1)(B)(i) of the Act, to the
extent practicable, we determined NV based on sales in the comparison
market at the same LOT as the U.S. sales. See 19 CFR 351.412. The NV
LOT is the level of the starting-price sale in the comparison market
or, when NV is based on CV, the level of the sales from which we derive
SG&A and profit. For EP, the U.S. LOT is also the level of the
starting-price sale, which is usually from exporter to importer. For
CEP, it is the level of the constructed sale from the exporter to the
importer. See 19 CFR 351.412. As noted above, U&A Belgium classified
all its exported sales of SSPC as CEP sales.
To determine whether NV sales are at a different LOT than CEP, 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 a LOT adjustment under section 773(a)(7)(A) of the Act. For CEP
sales, if the NV level is at a more advanced stage of distribution than
the CEP LOT and the data available do not provide a basis to determine
a LOT adjustment, we adjust NV under section 773(a)(7)(B) of the Act
(the CEP offset provision). See, e.g., Final Determination of Sales at
Less Than Fair Value: Greenhouse Tomatoes From Canada, 67 FR 8781
(February 26, 2002); see also Notice of Final Determination of Sales at
Less than Fair Value: Certain Cut-to-Length Carbon Steel Plate from
South Africa, 62 FR 61731 (November 19, 1997) and Certain Hot-Rolled
Flat-Rolled Carbon Quality Steel Products from Brazil; Preliminary
Results of Antidumping Duty Administrative Review, 70 FR 17406 (April
6, 2005). For CEP sales, we consider only the selling activities
reflected in the price after the deduction of expenses and CEP profit
under section 772(d) of the Act. See Micron Technology Inc. v. United
States, 243 F.3d 1301, 1314-1315 (Fed. Cir. 2001). We expect that, if
the claimed LOTs are the same, the functions and activities of the
seller should be similar. Conversely, if a party claims that the LOTs
are different for different groups of sales, the functions and
activities of the seller should be dissimilar. See Porcelain-on-Steel
Cookware from Mexico: Final Results of Administrative Review, 65 FR
30068 (May 10, 2000).
In the current review, U&A Belgium reported seven customer
categories and indicated that its sales were made at a single channel
of distribution for the sale of SSPC in Belgium through one LOT in the
comparison market. Specifically, U&A Belgium reported that it sells
SSPC to customers in the home market through its affiliated sales
agents, U&A Benelux (regional sales office) and U&A S.A. (principal
sales agent). U&A Belgium performs a variety of distinct selling
functions in the comparison market. See Appendix A-15 of the September
11, 2007, Questionnaire Response. We examined the selling functions
performed for the seven customer categories and found that the selling
activities and services do not vary among them. See Memorandum from
George McMahon to The File ``Calculation Memorandum for Ugine & ALZ,
N.V. Belgium (U&A Belgium) for the Preliminary Results of the Sixth
Administrative Review of Stainless Steel Plate in Coils (SSPC) from
Belgium,'' dated May 30, 2008 (Sales Calculation Memorandum).
Therefore, we preliminarily conclude that U&A Belgium's sales in the
home market constitute one LOT.
U&A Belgium reported two channels of distribution and two LOTs in
the U.S. market. U&A Belgium's two U.S. channels of distribution are:
1) Direct sales by AS USA of made-to-order merchandise produced by U&A
Belgium to end-users and unaffiliated distributors, and 2) warehouse
sales by AS USA of merchandise imported from U&A Belgium and stocked by
AS USA. See September 11, 2007, Section A, Volume I, Questionnaire
Response at 16-17; see also April 15, 2008 SQR at 20. U&A Belgium
performed several selling functions in the United States in connection
with the sale of SSPC. The selling functions that U&A Belgium
independently performed for its U.S. sales are limited to: handling
product information and training sessions, freight arrangements,
packing, and technical services. In addition, U&A Belgium and AS USA
performed the following four sales functions jointly in both sales
channels in the United States: Product information and training
sessions, advertising to customers, freight arrangements, and after
sales servicing support or claims. In our comparison of the U.S. and
home market LOTs, we eliminated from consideration selling functions
performed by AS USA and only considered the portion of the selling
functions performed by U&A Belgium after making adjustments under
section 772(d) of the Act.
Our analysis of these selling functions performed by U&A Belgium in
the United States shows that the selling activities and services do not
vary according to the type of customer for sales within each channel of
distribution. Because we find that there is no variation in type or
level of services provided by U&A Belgium for the channels of
distribution in the United States, we preliminarily determine that
there is only one LOT in the U.S. market. See ``Sales Calculation
Memorandum.'' Moreover, we find that the distribution channels and
selling functions reported by U&A Belgium for the instant review are
consistent with those reported in the prior administrative review of
SSPC from
[[Page 32302]]
Belgium, in which case the Department determined that U&A Belgium sold
through only one LOT in the U.S. market. See Memorandum entitled
``Analysis for Ugine & ALZ, N.V. Belgium (U&A Belgium) for the
Preliminary Results of the Fifth Administrative Review of Stainless
Steel Plate in Coils (SSPC) from Belgium,'' dated May 31, 2005, at 2.
U&A Belgium and its affiliated agent for global sale and
distribution of stainless steel flat products produced in Belgium and
France, U&A S.A., perform all home market selling activities. Selling
functions for the U.S. market, as indicated above, are primarily
performed by AS USA, with the exception of two selling functions
handled solely by U&A Belgium, and two selling functions that are
performed jointly by Arcelor Stainless International (ASI), AS USA, and
U&A S.A. We compared the U.S. and home market LOTs and preliminarily
determined that, after eliminating from consideration selling functions
performed by AS USA (pursuant to section 772(d) of the Act), U&A
Belgium's home market LOT is at a more advanced stage of distribution
than the CEP LOT. Due to the proprietary nature of the discussion, see
the ``Sales Calculation Memorandum'' for additional detail.
We then considered whether we could make a LOT adjustment. In this
case, U&A Belgium only sold at one LOT in the comparison market;
therefore, there is no information available to determine a pattern of
consistent price differences between the sales on which NV is based and
the comparison market sales at the LOT of the export transaction, in
accordance with the Department's normal methodology as described above.
See 19 CFR 351.412(d). Further, we do not have record information which
would allow us to examine pricing patterns based on the respondent's
sales of other products, and there are no other respondents or other
record information on which such an analysis could be based.
Accordingly, because only one LOT exists in the home market we could
not make a LOT adjustment. However, because the LOT in the comparison
market is at a more advanced stage of distribution than the LOT of the
CEP transactions, we made a CEP offset adjustment in accordance with
section 773(a)(7)(B) of the Act and 19 CFR 351.412(f). This offset is
equal to the amount of indirect selling expenses incurred in the
comparison market not exceeding the amount of indirect selling expenses
and commissions deducted from the U.S. price in accordance with section
772(d)(1)(D) of the Act. For a detailed discussion, see ``Sales
Calculation Memorandum.''
Currency Conversion
We made currency conversions pursuant to 19 CFR 351.415 based on
the exchange rates certified by the Federal Reserve Bank.
Preliminary Results of Review
We preliminarily determine that for the period May 1, 2006, through
April 30, 2007, the following dumping margin exists:
------------------------------------------------------------------------
Margin
Manufacturer/Exporter (percent)
------------------------------------------------------------------------
U&A Belgium................................................ 12.68
------------------------------------------------------------------------
Duty Assessment and Cash Deposit Requirements
The Department shall determine, and CBP shall assess, antidumping
duties on all appropriate entries. Pursuant to 19 CFR 351.212(b), the
Department calculates an assessment rate for each importer of the
subject merchandise for each respondent. The Department will issue
appropriate assessment instructions directly to CBP within 15 days of
publication of the final results of this review.
Furthermore, the following cash deposit rates will be effective
with respect to all shipments of SSPC from Belgium entered, or
withdrawn from warehouse, for consumption on or after the publication
date of the final results, as provided for by section 751(a)(1) of the
Act: (1) For U&A Belgium, the cash deposit rate will be the rate
established in the final results of this review; (2) for previously
reviewed or investigated companies not listed above, the cash deposit
rate will be the company-specific rate established for the most recent
period; (3) if the exporter is not a firm covered in this review, a
prior review, or the less-than-fair-value (LTFV) investigation, but the
manufacturer is, the cash deposit rate will be the rate established for
the most recent period for the manufacturer of the subject merchandise;
and (4) if neither the exporter nor the manufacturer is a firm covered
by this review, a prior review, or the LTFV investigation, the cash
deposit rate shall be the all-others rate established in the LTFV
investigation, which is 9.86 percent. See Notice of Final Determination
of Sales at Less Than Fair Value: Stainless Steel Plate in Coils From
Belgium, 64 FR 15476 (March 31, 1999). These deposit rates, when
imposed, shall remain in effect until further notice.
Public Comment
Pursuant to 19 CFR 351.224(b), the Department will disclose to
parties to the proceeding any calculations performed in connection with
these preliminary results within five days after the date of
publication of this notice. Pursuant to 19 CFR 351.309, interested
parties may submit written comments in response to these preliminary
results. Unless extended by the Department, case briefs are to be
submitted within 30 days after the date of publication of this notice,
and rebuttal briefs, limited to arguments raised in case briefs, are to
be submitted no later than five days after the time limit for filing
case briefs. Parties who submit arguments in this proceeding are
requested to submit with the argument: (1) a statement of the issues,
and (2) a brief summary of the argument. Case and rebuttal briefs must
be served on interested parties in accordance with 19 CFR 351.303(f).
Also, pursuant to 19 CFR 351.310(c), within 30 days of the date of
publication of this notice, interested parties may request a public
hearing on arguments to be raised in the case and rebuttal briefs.
Unless the Secretary specifies otherwise, the hearing, if requested,
will be held two days after the date for submission of rebuttal briefs.
Parties will be notified of the time and location. The Department will
publish the final results of this administrative review, including the
results of its analysis of issues raised in any case or rebuttal brief,
no later than 120 days after publication of these preliminary results,
unless extended. See 19 CFR 351.213(h).
Notification to Importers
This notice serves as a preliminary reminder to importers of their
responsibility under 19 CFR 351.402(f) to file a certificate regarding
the reimbursement of antidumping duties prior to liquidation of the
relevant entries during this review period. Failure to comply with this
requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
These preliminary results of this administrative review and notice
are issued and published in accordance with sections 751(a)(1) and
777(i)(1) of the Act.
Dated: May 30, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E8-12779 Filed 6-5-08; 8:45 am]
BILLING CODE 3510-DS-P