Notice of Preliminary Results of Antidumping Duty Administrative Review: Carbon and Certain Alloy Steel Wire Rod From Canada, 39646-39650 [E8-15753]
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39646
Notices
Federal Register
Vol. 73, No. 133
Thursday, July 10, 2008
This section of the FEDERAL REGISTER
contains documents other than rules or
proposed rules that are applicable to the
public. Notices of hearings and investigations,
committee meetings, agency decisions and
rulings, delegations of authority, filing of
petitions and applications and agency
statements of organization and functions are
examples of documents appearing in this
section.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
[Docket # AMS–FV–07–0142]
United States Standards for Grades of
Beet Greens
Agricultural Marketing Service,
USDA.
ACTION: Notice.
AGENCY:
The Agricultural Marketing
Service (AMS) is soliciting comments
on its proposal to revise the voluntary
United States Standards for Grades of
Beet Greens. AMS is proposing to
remove ‘‘Unclassified’’ category from
the standards. The proposed revisions
will update the beet greens grade
standards.
SUMMARY:
Effective Date: Comments must
be received by September 8, 2008.
ADDRESSES: Interested persons are
invited to submit written comments on
the Internet at https://
www.regulations.gov or to the
Standardization Section, Fresh Products
Branch, Fruit and Vegetable Programs,
Agricultural Marketing Service, U.S.
Department of Agriculture, 1400
Independence Ave., SW., Room 1661
South Building, Stop 0240, Washington,
DC 20250–0240; Fax (202) 720–8871.
Comments should make reference to the
dates and page number of this issue of
the Federal Register and will be made
available for public inspection in the
above office during regular business
hours.
DATES:
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FOR FURTHER INFORMATION CONTACT:
Vincent J. Fusaro, Standardization
Section, Fresh Products Branch, (202)
720–2185. The United States Standards
for Grades of Beet Greens are available
by accessing the Fresh Products Branch
Web site at: https://www.ams.usda.gov/
freshinspection.
Section
203(c) of the Agricultural Marketing Act
SUPPLEMENTARY INFORMATION:
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of 1946 (7 U.S.C. 1621–1627), as
amended, directs and authorizes the
Secretary of Agriculture ‘‘To develop
and improve standards of quality,
condition, quantity, grade and
packaging and recommend and
demonstrate such standards in order to
encourage uniformity and consistency
in commercial practices.’’ AMS is
committed to carrying out this authority
in a manner that facilitates the
marketing of agricultural commodities.
AMS makes copies of official standards
available upon request. The United
States Standards for Grades of Fruits
and Vegetables not connected with
Federal Marketing Orders or U.S. Import
Requirements no longer appear in the
Code of Federal Regulations, but are
maintained by USDA, AMS, Fruit and
Vegetable Programs.
AMS is revising the United States
Standards for Grades of Beet Greens
using the procedures that appear in Part
36, Title 7 of the Code of Federal
Regulations (7 CFR part 36). These
standards were last revised June 1, 1959.
Background
Prior to undertaking detailed work to
develop a proposed revision to the
standards, AMS published a notice on
February 19, 2008, in the Federal
Register (73 FR 9086) soliciting
comments for possible revisions to the
United States Standards for Grades of
Beet Greens. The proposal would
remove the ‘‘Unclassified’’ category
from the standards. No comments were
received regarding this change.
AMS would eliminate the
unclassified category. This category is
being removed from all standards when
they are revised. This category is not a
grade and only serves to show that no
grade has been applied to the lot. It is
no longer considered necessary.
AMS is seeking comments regarding
how this revision will affect the
marketing of beet greens. Additionally,
AMS is interested in learning the costs
and/or benefits to the industry by
revising the United States Standards for
Grades of Beet Greens.
The official grades of beet greens
covered by these standards are
determined by the procedures set forth
in the Regulations Governing
Inspection, Certification and Standards
of Fresh Fruits, Vegetables and Other
Products (7 CFR 51.1 to 51.62).
This notice provides for a 60-day
comment period for interested parties to
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comment on the proposed revisions to
the standards.
Authority: 7 U.S.C. 1621–1627.
Dated: July 3, 2008.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E8–15644 Filed 7–9–08; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–122–840]
Notice of Preliminary Results of
Antidumping Duty Administrative
Review: Carbon and Certain Alloy
Steel Wire Rod From Canada
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) is conducting an
administrative review of the
antidumping duty order on carbon and
certain alloy steel wire rod from Canada
for the period October 1, 2006, to
September 30, 2007 (the POR). We
preliminarily determine that sales of
subject merchandise by Ivaco Rolling
Mills 2004 L.P. and Sivaco Ontario (a
division of Sivaco Wire Group 2004
L.P.) (collectively referred to as ‘‘Ivaco’’)
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 on appropriate entries. Interested
parties are invited to comment on these
preliminary results. We will issue the
final results no later than 120 days from
the publication of this notice.
DATES: Effective Date: July 10, 2008.
FOR FURTHER INFORMATION CONTACT:
Steve Bezirganian or Robert James, AD/
CVD Operations, Office 7, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street & Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–1131 or (202) 482–
0649, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On October 29, 2002, the Department
published in the Federal Register an
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antidumping duty order on carbon and
certain alloy steel wire rod (steel wire
rod) from Canada. See Notice of
Amended Final Determination of Sales
at Less Than Fair Value and
Antidumping Duty Order: Carbon and
Certain Alloy Steel Wire Rod from
Canada, 67 FR 65944 (October 29, 2002)
(Order). On October 1, 2007, the
Department issued a notice of
opportunity to request an administrative
review of this order for the POR. See
Antidumping or Countervailing Duty
Order, Finding, or Suspended
Investigation; Opportunity to Request
Administrative Review, 72 FR 55741
(October 1, 2007). On October 31, 2007,
Mittal Canada Inc. (formerly Ispat
Sidbec Inc.) of Canada (Mittal Canada)
requested an administrative review of
its entries that were subject to the
antidumping duty order for this period.
On October 31, 2007, the Department
received a request from petitioners (ISG
Georgetown Inc., Gerdau Ameristeel
U.S. Inc., Nucor Steel Connecticut Inc.,
Keystone Consolidated Industries, Inc.,
and Rocky Mountain Steel Mills) for a
review of Ivaco, Inc. and Ivaco Rolling
Mills L.P. (which petitioners referred to
collectively as ‘‘Ivaco’’). On that same
date, Ivaco Rolling Mills 2004 L.P. and
Sivaco Ontario, a division of Sivaco
Wire Group 2004 L.P., also requested a
review of their entries.1 On November
26, 2007, the Department published the
notice of initiation of this antidumping
duty administrative review. See
Initiation of Antidumping and
Countervailing Duty Administrative
Reviews and Request for Revocation in
Part, 72 FR 65938 (November 26,
2007).2 Mittal Canada subsequently
withdrew its request for review, and the
Department rescinded the
1 Ivaco’s October 31, 2007, request for review also
contained a request that the Department revoke the
order with respect to Ivaco. Ivaco later claimed that
had the Department not ‘‘zeroed’’ in the previous
three reviews, Ivaco would have had negative
weighted-average margins for each of those
segments. See Ivaco’s March 14, 2008 Submission.
The Department preliminarily rejects Ivaco’s
request for revocation because it has not
demonstrated, pursuant to 19 CFR
351.222(b)(2)(i)(A), that it has sold the merchandise
at not less than normal value for a period of at least
three consecutive years. We note that the
Department has previously rejected Ivaco’s
‘‘zeroing’’ argument in the prior segment of this
proceeding and that Ivaco had an antidumping duty
rate of 2.98 percent ad valorem. See Carbon and
Certain Alloy Steel Wire Rod from Canada: Final
Results of Antidumping Duty Administrative
Review, 73 FR 26958 (May 12, 2008), and
accompanying Issues and Decision Memorandum at
Comment 5.
2 The Department’s initiation notice referenced
the following companies: Mittal Canada Inc.
(formerly Ispat Sidbec Inc.); Ivaco Rolling Mills
2004 L.P. (formerly Ivaco Rolling Mills L.P.); and
Sivaco Ontario, a division of Sivaco Wire Group
2004 (L.P.) (formerly Ivaco, Inc.).
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administrative review with respect to
Mittal Canada. See Carbon and Certain
Alloy Steel Wire Rod from Canada:
Notice of Partial Rescission of
Antidumping Duty Administrative
Review, 72 FR 73321 (December 27,
2007).
Ivaco submitted a response to Section
A of the Department’s questionnaire on
December 28, 2007, and a response to
Sections B, C, and D of the Department’s
questionnaire on January 16, 2008. In
response to the Department’s
supplemental questionnaire dated
February 15, 2008, Ivaco submitted a
supplemental response for Section A on
March 21, 2008. In response to the
Department’s supplemental
questionnaire dated March 13, 2008,
Ivaco submitted a supplemental
response for Sections A, B, C, and D on
April 22, 2008.
The Department is considering IRM
and Sivaco Ontario as part of the same
entity (referred to collectively in this
notice as ‘‘Ivaco’’) because of common
ownership, consistent with the
Department’s treatment of these
companies in previous proceedings.
See, e.g., Carbon and Certain Alloy Steel
Wire Rod from Canada: Final Results of
Antidumping Duty Administrative
Review, 73 FR 26958 (May 12, 2008),
and Notice of Final Results of
Antidumping Duty Administrative
Review: Carbon and Certain Alloy Steel
Wire Rod from Canada, 72 FR 26591
(May 10, 2007).
Scope of the Order
The merchandise subject to this order
is certain hot-rolled products of carbon
steel and alloy steel, in coils, of
approximately round cross section, 5.00
mm or more, but less than 19.00 mm, in
solid cross-sectional diameter.
Specifically excluded are steel
products possessing the above-noted
physical characteristics and meeting the
Harmonized Tariff Schedule of the
United States (‘‘HTSUS’’) definitions for
(a) Stainless steel; (b) tool steel; (c) high
nickel steel; (d) ball bearing steel; and
(e) concrete reinforcing bars and rods.
Also excluded are (f) free machining
steel products (i.e., products that
contain by weight one or more of the
following elements: 0.03 percent or
more of lead, 0.05 percent or more of
bismuth, 0.08 percent or more of sulfur,
more than 0.04 percent of phosphorus,
more than 0.05 percent of selenium, or
more than 0.01 percent of tellurium).
Also excluded from the scope are
1080 grade tire cord quality wire rod
and 1080 grade tire bead quality wire
rod. Grade 1080 tire cord quality rod is
defined as: (i) Grade 1080 tire cord
quality wire rod measuring 5.0 mm or
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39647
more but not more than 6.0 mm in
cross-sectional diameter; (ii) with an
average partial decarburization of no
more than 70 microns in depth
(maximum individual 200 microns); (iii)
having no non-deformable inclusions
greater than 20 microns and no
deformable inclusions greater than 35
microns; (iv) having a carbon
segregation per heat average of 3.0 or
better using European Method NFA 04–
114; (v) having a surface quality with no
surface defects of a length greater than
0.15 mm; (vi) capable of being drawn to
a diameter of 0.30 mm or less with 3 or
fewer breaks per ton, and (vii)
containing by weight the following
elements in the proportions shown: (1)
0.78 percent or more of carbon, (2) less
than 0.01 percent of aluminum, (3)
0.040 percent or less, in the aggregate,
of phosphorus and sulfur, (4) 0.006
percent or less of nitrogen, and (5) not
more than 0.15 percent, in the aggregate,
of copper, nickel and chromium.
Grade 1080 tire bead quality rod is
defined as: (i) Grade 1080 tire bead
quality wire rod measuring 5.5 mm or
more but not more than 7.0 mm in
cross-sectional diameter; (ii) with an
average partial decarburization of no
more than 70 microns in depth
(maximum individual 200 microns); (iii)
having no non-deformable inclusions
greater than 20 microns and no
deformable inclusions greater than 35
microns; (iv) having a carbon
segregation per heat average of 3.0 or
better using European Method NFA 04–
114; (v) having a surface quality with no
surface defects of a length greater than
0.2 mm; (vi) capable of being drawn to
a diameter of 0.78 mm or larger with 0.5
or fewer breaks per ton; and (vii)
containing by weight the following
elements in the proportions shown: (1)
0.78 percent or more of carbon, (2) less
than 0.01 percent of soluble aluminum,
(3) 0.040 percent or less, in the
aggregate, of phosphorus and sulfur, (4)
0.008 percent or less of nitrogen, and (5)
either not more than 0.15 percent, in the
aggregate, of copper, nickel and
chromium (if chromium is not
specified), or not more than 0.10 percent
in the aggregate of copper and nickel
and a chromium content of 0.24 to 0.30
percent (if chromium is specified).
For purposes of the grade 1080 tire
cord quality wire rod and the grade
1080 tire bead quality wire rod, an
inclusion will be considered to be
deformable if its ratio of length
(measured along the axis—that is, the
direction of rolling—of the rod) over
thickness (measured on the same
inclusion in a direction perpendicular
to the axis of the rod) is equal to or
greater than three. The size of an
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inclusion for purposes of the 20 microns
and 35 microns limitations is the
measurement of the largest dimension
observed on a longitudinal section
measured in a direction perpendicular
to the axis of the rod.
The designation of the products as
‘‘tire cord quality’’ or ‘‘tire bead quality’’
indicates the acceptability of the
product for use in the production of tire
cord, tire bead, or wire for use in other
rubber reinforcement applications such
as hose wire. These quality designations
are presumed to indicate that these
products are being used in tire cord, tire
bead, and other rubber reinforcement
applications, and such merchandise
intended for the tire cord, tire bead, or
other rubber reinforcement applications
is not included in the scope. However,
should petitioners or other interested
parties provide a reasonable basis to
believe or suspect that there exists a
pattern of importation of such products
for other than those applications, enduse certification for the importation of
such products may be required. Under
such circumstances, only the importers
of record would normally be required to
certify the end use of the imported
merchandise.
All products meeting the physical
description of subject merchandise that
are not specifically excluded are
included in this scope. The products
subject to this order are currently
classifiable under subheadings
7213.91.3011, 7213.91.3015,
7213.91.3092, 7213.91.4500,
7213.91.6000, 7213.99.0030,
7213.99.0090, 7227.20.0000,
7227.90.6010, and 7227.90.6080 of the
HTSUS. Although the HTSUS
subheadings are provided for
convenience and customs purposes, the
written description of the scope of this
order is dispositive.
Export Price and Constructed Export
Price
For the price to the United States, we
used, as appropriate, export price (EP)
or constructed export price (CEP), as
defined in sections 772(a) and 772(b) of
the Tariff Act of 1930, as amended (the
Act), respectively. Section 772(a) of the
Act defines EP as the price at which the
subject merchandise is first sold before
the date of importation by the producer
or exporter outside of the United States
to an unaffiliated purchaser in the
United States or to an unaffiliated
purchaser for exportation to the United
States, as adjusted under section 772(c)
of the Act.
Section 772(b) of the Act defines CEP
as the price at which the subject
merchandise is first sold in the United
States before or after the date of
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importation by or for the account of the
producer or exporter of such
merchandise or by a seller affiliated
with the producer or exporter, to a
purchaser not affiliated with the
producer or exporter, as adjusted under
sections 772(c) and (d) of the Act.
Ivaco made both EP and CEP
transactions. We calculated an EP for
sales where the merchandise was sold
directly by Ivaco to the first unaffiliated
purchaser in the United States prior to
importation, and CEP was not otherwise
warranted based on the facts on the
record. We calculated a CEP for sales
made by Ivaco after importation to the
United States (where the merchandise
was located at an unaffiliated processor
facility or unaffiliated distributor
warehouse at the time of sale).
For EP sales, we made additions to
the starting price (gross unit price),
where appropriate, for freight revenue
received by Ivaco (reimbursement by
customers for freight charges paid by
Ivaco) and for billing errors (debit-note
price adjustments made by Ivaco), and
deductions, where appropriate, for
billing adjustments (including creditnote price adjustments made by Ivaco),
early payment discounts and rebates,
and movement expenses in accordance
with section 772(c)(2)(A) of the Act.
Movement expenses included inland
freight, warehousing expenses, and
brokerage fees.
For CEP sales, we made adjustments
to the starting price as for the EP
transactions described above. However,
consistent with our treatment of these
expenses in recent administrative
reviews, we re-categorized freight from
one unaffiliated processor in the United
States to another unaffiliated processor
in the United States as a further
manufacturing cost. See, e.g., Notice of
Final Results of Antidumping Duty
Administrative Review: Carbon and
Certain Alloy Steel Wire Rod from
Canada, 71 FR 3822 (January 24, 2006)
and accompanying Issues and Decision
Memorandum at Comment 1. In
addition, in accordance with section
772(d)(1) and (2) of the Act, we
deducted from the starting price those
selling expenses incurred in selling the
subject merchandise in the United
States, including direct selling expenses
(imputed credit expenses and warranty
expenses), imputed inventory carrying
costs, and further manufacturing.
Finally, in accordance with section
772(d)(3) of the Act, we deducted an
amount of profit allocated to the
expenses deducted under sections
772(d)(1) and (2) of the Act. See
Memorandum from Steve Bezirganian,
Analyst, ‘‘Analysis Memorandum for
Ivaco Rolling Mills 2004 L.P. and Sivaco
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Ontario, a division of Sivaco Wire
Group 2004 L.P.: Carbon and Certain
Alloy Steel Wire Rod from Canada (A–
122–840), October 1, 2006–September
30, 2007’’ (July 2, 2008) (Ivaco Analysis
Memorandum).
Normal Value
A. Selection of Comparison Markets
Section 773(a)(1) of the Act directs
that NV be based on the price at which
the foreign like product is sold in the
home market, provided the merchandise
is sold in sufficient quantities (or value,
if quantity is inappropriate) and that
there is not a particular market situation
that prevents a proper comparison with
sales to the United States. The statute
contemplates that quantities (or value)
will normally be considered insufficient
if they are less than five percent of the
aggregate quantity (or value) of sales of
the subject merchandise to the United
States. See section 773(a)(1) of the Act.
We found that Ivaco had a viable
home market for steel wire rod because
its home market sales, by quantity,
exceeded the five percent threshold. See
Ivaco Analysis Memorandum. Ivaco
submitted home market sales data for
purposes of the calculation of NV. In
deriving NV, we made adjustments as
detailed in the ‘‘Calculation of Normal
Value Based on Comparison Market
Prices’’ section below.
B. Cost of Production Analysis
Because we disregarded below-cost
sales in the most recently completed
segment of the proceeding, we had
reasonable grounds to believe or suspect
that home market sales of the foreign
like product by the respondent were
made at prices below the cost of
production (COP) during the POR, in
accordance with section 773(b)(2)(A) of
the Act. See Notice of Preliminary
Results of Antidumping Duty
Administrative Review and Notice of
Initiation of Changed Circumstances
Review: Carbon and Certain Alloy Steel
Wire Rod from Canada, 71 FR 64921,
64924 (November 6, 2006) (unchanged
in final results, 72 FR 26591 (May 10,
2007)). Therefore, we required Ivaco to
file a response to Section D of the
Department’s Questionnaire.
1. Calculation of Cost of Production
In accordance with section 773(b)(3)
of the Act, we calculated the weightedaverage COP by model based on the sum
of materials, fabrication, and general
and administrative (G&A) expenses.
2. Test of Comparison Market Sales
Prices
We compared the weighted-average
COPs for the respondent to its home
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market sales prices of the foreign like
product, as required under section
773(b) of the Act, to determine whether
these sales had been made at prices
below the COP within an extended
period of time (i.e., normally a period of
one year) in substantial quantities and
whether such prices were sufficient to
permit the recovery of all costs within
a reasonable period of time. On a modelspecific basis, we compared the COP to
the home market prices, less any
applicable movement charges,
discounts, rebates, and direct and
indirect selling expenses.
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3. Results of the COP Test
We disregard below-cost sales where:
(1) 20 percent or more of the
respondent’s sales of a given product
during the POR were made at prices
below the COP in accordance with
sections 773(b)(2)(B) and (C) of the Act;
and (2) based on comparisons of price
to weighted-average COPs for the POR,
we determine that the below-cost sales
of the product were at prices that would
not permit recovery of all costs within
a reasonable time period, in accordance
with section 773(b)(2)(D) of the Act. We
found Ivaco made sales below cost and
we disregarded such sales where
appropriate.
C. Calculation of Normal Value Based
on Comparison-Market Prices
We determined NV for Ivaco as
follows. We made adjustments to the
gross price to account for billing
adjustments, and deducted discounts
and rebates. We deducted home market
packing costs and added U.S. packing
costs, in accordance with sections
773(a)(6)(A) and (B) of the Act. We also
deducted home market movement
expenses pursuant to sections
773(a)(6)(B) of the Act. In addition, we
made adjustments for differences in
circumstances of sale (COS) pursuant to
section 773(a)(6)(C)(iii) of the Act.
Specifically, we made adjustments for
Ivaco’s EP transactions by deducting
direct selling expenses incurred for
home market sales (i.e., credit expenses
and warranty expenses) and adding U.S.
direct selling expenses (i.e., credit
expenses and warranty expenses). See
section 773(a)(6)(C)(iii) of the Act, and
19 CFR 351.410(c). Where we compared
Ivaco’s U.S. sales to home market sales
of merchandise, we made adjustments,
where appropriate, for physical
differences in the merchandise in
accordance with section 773(a)(6)(C)(ii)
of the Act.
D. Arm’s-Length Sales
The respondent reported sales of the
foreign like product to affiliated
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customers. To test whether these sales
to affiliated customers were made at
arm’s length, where possible, we
compared the prices of sales to affiliated
and unaffiliated customers, net of all
movement charges, direct selling
expenses, and packing. Where the price
to that affiliated party was, on average,
within a range of 98 to 102 percent of
the price of the same or comparable
merchandise sold to the unaffiliated
parties at the same level of trade, we
determined that the sales made to the
affiliated party were at arm’s length. See
Modification Concerning Affiliated
Party Sales in the Comparison Market,
67 FR 69186 (November 15, 2002).
Ivaco’s sales to affiliated parties that
were determined not to be at arm’s
length were disregarded in our
comparison to U.S. sales.
E. Calculation of Normal Value Based
on Constructed Value
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 models of steel
wire rod for which we could not
determine the NV based on comparisonmarket sales, either because there were
no sales of a comparable product or all
sales of the comparison products failed
the COP test, we based NV on CV.
Section 773(e)(1) 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 for
selling, general, and administrative
expenses (SG&A), profit, and U.S.
packing expenses. We calculated the
cost of materials and fabrication based
on the methodology described in the
COP section of this notice. We based
SG&A and profit on the actual amounts
incurred and realized by the respondent
in connection with the production and
sale of the foreign like product in the
ordinary course of trade, for
consumption in the comparison market,
in accordance with section 773(e)(2)(A)
of the Act.
We made adjustments to CV for
differences in COS in accordance with
section 773(a)(8) of the Act and 19 CFR
351.410. For CEP and EP comparisons,
we deducted direct selling expenses
incurred for home market sales (i.e.,
credit expenses and warranty expenses).
See Section 773(a)(6)(C)(iii) of the Act
and 19 CFR 351.410(c). For EP sales, we
added U.S. direct selling expenses (i.e.,
credit expenses and warranty expenses)
to the NV.
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F. Level of Trade/Constructed Export
Price Offset
In accordance with section
773(a)(1)(B) of the Act, we determine
NV based on sales in the comparison
market at the same level of trade (LOT)
as the EP and CEP sales, to the extent
practicable. When there are no sales at
the same LOT, we compare U.S. sales to
comparison market sales at a different
LOT. When NV is based on CV, the NV
LOT is that of the sales from which we
derive SG&A expenses and profit.
Pursuant to 19 CFR 351.412(c)(2), to
determine whether comparison market
sales were at a different LOT, we
examine stages in the marketing process
and selling functions along the chain
o2f distribution between the producer
and the unaffiliated (or arm’s-length)
customers. The Department identifies
the LOT based on: the starting price or
constructed value (for normal value);
the starting price (for EP sales); and the
starting price, as adjusted under section
772(d) of the Act (for CEP sales). If the
comparison-market sales were at a
different LOT and the differences affect
price comparability, as manifested in a
pattern of consistent price differences
between the sales on which NV is based
and comparison-market sales at the LOT
of the export transaction, we will make
an LOT adjustment under section
773(a)(7)(A) of the Act.
Finally, if the NV LOT is more remote
from the factory than the CEP LOT and
there is no basis for determining
whether the differences in LOT between
NV and CEP affected price
comparability, we will grant a CEP
offset, as provided in section
773(a)(7)(B) of the Act.
Ivaco reported home market sales in
two channels of distribution: (1) Direct
sales by IRM and (2) direct sales by
Sivaco Ontario.3 Ivaco reported U.S. EP
sales in two channels of distribution: (1)
direct sales by IRM to U.S. customers
and (2) direct sales by Sivaco Ontario to
U.S. customers. Finally, Ivaco reported
U.S. CEP sales in one channel of
distribution: Direct sales by IRM to U.S.
customers made from the facilities of
unaffiliated U.S. processors or
unaffiliated U.S. warehouses. Ivaco
claims that all of IRM’s home market
and U.S. sales are at one LOT, and that
all of Sivaco’s home market and U.S.
sales are at another, more advanced,
LOT. Ivaco states that the Department
3 Ivaco identified a third channel of distribution
in the home market. Although proprietary treatment
of the description prevents additional public
discussion of the details of this proposed channel,
it is simply a variation of direct sales by Sivaco
Ontario. Ivaco has not claimed that this proposed
channel constitutes an additional LOT, and the
record does not indicate that it is one.
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Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Notices
jlentini on PROD1PC65 with NOTICES
should calculate a LOT adjustment
when sales by IRM are matched to sales
by Sivaco. Ivaco also states that, if the
Department determines that IRM’s U.S.
CEP sales are at a different LOT from all
Ivaco’s home market sales, the
Department should grant a CEP offset.
To determine whether there were
multiple LOTs, we examined the selling
functions performed by Ivaco for its
customers. We found few differences in
selling functions across the various
channels of distribution and, based on
this examination, we preliminarily
determine that Ivaco sold merchandise
at one LOT in both markets. See the
Memorandum from Steve Bezirganian,
‘‘Level of Trade Analysis for Ivaco
Rolling Mills 2004 L.P. and Sivaco
Ontario, a division of Sivaco Wire
Group 2004 L.P.: Carbon and Certain
Alloy Steel Wire Rod from Canada (A–
122–840), October 1, 2006—September
30, 2007’’ (July 2, 2008). Consequently,
there is no basis for calculating a LOT
adjustment or a CEP offset.
any such comments on diskette. An
interested party may request a hearing
within 30 days of publication of these
preliminary results. See 19 CFR
351.310(c). Any hearing, if requested,
will be held two days after the date for
submission of rebuttal briefs, or the first
working day thereafter. The Department
will issue the final results of this
administrative review, which will
include the results of its analysis of
issues raised in any such comments,
within 120 days of publication of these
preliminary results, pursuant to Section
751(a)(3) of the Act.
Assessment
Upon completion of this
administrative review, pursuant to 19
CFR 351.212(b), the Department will
calculate an assessment rate on all
appropriate entries. The Department
will issue assessment instructions
directly to CBP on or after 41 days
following the publication of the final
results of review, pursuant to 19 CFR
356.8(a). We will calculate importerCurrency Conversion
specific duty assessment rates on the
basis of the ratio of the total amount of
We made currency conversions into
antidumping duties calculated for the
U.S. dollars in accordance with section
examined sales to the total entered
773A of the Act, based on exchange
value of the examined sales for that
rates in effect on the date of the U.S.
sale, as provided by the Federal Reserve importer.
The Department clarified its
Bank.
‘‘automatic assessment’’ regulation on
Preliminary Results of Review
May 6, 2003. See Antidumping and
Countervailing Duty Proceedings:
As a result of this review, we
Assessment of Antidumping Duties, 68
preliminarily determine the following
FR 23954 (May 6, 2003) (Assessment
weighted-average margin exists for the
Policy Notice). This clarification will
period October 1, 2006, through
apply to entries of subject merchandise
September 30, 2007:
during the period of review produced by
companies included in these final
Weighted-average
Producer/exporter
margin (percentage) results where the reviewed companies
did not know the merchandise it sold to
Ivaco ...........................
2.33 the intermediary (e.g., a reseller, trading
company, or exporter) was destined for
In accordance with 19 CFR
the United States. In such instances, we
351.224(b), the Department will disclose will instruct CBP to liquidate
calculations performed within five days unreviewed entries at the all-others rate
of publication of this notice. Interested
if there was no rate calculated in this
parties may submit case briefs and/or
review for the intermediary involved in
written comments no later than 30 days the transaction. See id., 68 FR at 23954.
after the date of publication of these
Cash Deposit Requirements
preliminary results. See 19 CFR
351.309(c)(ii). Rebuttal briefs and
The following deposit rates will be
rebuttals to written comments, limited
effective upon publication of the final
to issues raised in such briefs or
results of this administrative review for
comments, may be filed no later than
all shipments of steel wire rod from
five days after submission of case briefs. Canada entered, or withdrawn from
See 19 CFR 351.309(d). Parties who
warehouse, for consumption on or after
submit arguments are requested to
the publication date, as provided by
submit with the argument: (1) A
section 751(a)(1) of the Act: (1) The cash
statement of the issues; (2) a brief
deposit rate for Ivaco will be the rate
summary of the arguments; and (3) a
established in the final results of this
table of authorities. Further, parties
review, except if a rate is less than 0.5
submitting written comments should
percent, and therefore de minimis, the
provide the Department with an
cash deposit will be zero; (2) for
additional copy of the public version of
previously reviewed or investigated
VerDate Aug<31>2005
16:58 Jul 09, 2008
Jkt 214001
PO 00000
Frm 00005
Fmt 4703
Sfmt 4703
companies not listed above, the cash
deposit rate will continue to be the
company-specific rate published for the
most recent period; (3) if the exporter is
not a firm covered in this review, a prior
review, or the less-than-fair-value
(LTFV) investigation, but the
manufacturer is, the cash deposit rate
will be the rate established for the most
recent period for the manufacturer of
the merchandise; and (4) if neither the
exporter nor the manufacturer is a firm
covered in this or any previous review
conducted by the Department, the cash
deposit rate will be 8.11 percent, the allothers rate established in the LTFV
investigation.
These cash deposit requirements,
when imposed, shall remain in effect
until publication of the final results of
the next administrative review.
This notice serves as a preliminary
reminder to importers of their
responsibility under 19 CFR 351.402(f)
to file a certificate regarding the
reimbursement of antidumping duties
prior to liquidation of the relevant
entities during this review period.
Failure to comply with this requirement
could result in the Secretary’s
presumption that reimbursement of
antidumping duties occurred and the
subsequent assessment of double
antidumping duties.
These preliminary results are issued
and published in accordance with
sections 751(a)(1) and 777(i)(1) of the
Act.
Dated: July 2, 2008.
David M. Spooner,
Assistant Secretary for Import
Administration.
[FR Doc. E8–15753 Filed 7–9–08; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
(A–469–814)
Chlorinated Isocyanurates from Spain:
Preliminary Results of Antidumping
Duty Administrative Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to timely requests
by Biolab, Inc., Clearon Corporation and
Occidental Chemical Corporation
(collectively, ‘‘Petitioners’’), and
´
Aragonesas Industrias y Energıa S.A.
(‘‘Aragonesas’’), the Department of
Commerce (‘‘Department’’) is
conducting an administrative review of
the antidumping duty order on
chlorinated isocyanurates (‘‘chlorinated
AGENCY:
E:\FR\FM\10JYN1.SGM
10JYN1
Agencies
[Federal Register Volume 73, Number 133 (Thursday, July 10, 2008)]
[Notices]
[Pages 39646-39650]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-15753]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-122-840]
Notice of Preliminary Results of Antidumping Duty Administrative
Review: Carbon and Certain Alloy Steel Wire Rod From Canada
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) is conducting an
administrative review of the antidumping duty order on carbon and
certain alloy steel wire rod from Canada for the period October 1,
2006, to September 30, 2007 (the POR). We preliminarily determine that
sales of subject merchandise by Ivaco Rolling Mills 2004 L.P. and
Sivaco Ontario (a division of Sivaco Wire Group 2004 L.P.)
(collectively referred to as ``Ivaco'') 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 on appropriate entries. Interested parties
are invited to comment on these preliminary results. We will issue the
final results no later than 120 days from the publication of this
notice.
DATES: Effective Date: July 10, 2008.
FOR FURTHER INFORMATION CONTACT: Steve Bezirganian or Robert James, AD/
CVD Operations, Office 7, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street & Constitution
Avenue, NW., Washington, DC 20230; telephone: (202) 482-1131 or (202)
482-0649, respectively.
SUPPLEMENTARY INFORMATION:
Background
On October 29, 2002, the Department published in the Federal
Register an
[[Page 39647]]
antidumping duty order on carbon and certain alloy steel wire rod
(steel wire rod) from Canada. See Notice of Amended Final Determination
of Sales at Less Than Fair Value and Antidumping Duty Order: Carbon and
Certain Alloy Steel Wire Rod from Canada, 67 FR 65944 (October 29,
2002) (Order). On October 1, 2007, the Department issued a notice of
opportunity to request an administrative review of this order for the
POR. See Antidumping or Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity to Request Administrative Review,
72 FR 55741 (October 1, 2007). On October 31, 2007, Mittal Canada Inc.
(formerly Ispat Sidbec Inc.) of Canada (Mittal Canada) requested an
administrative review of its entries that were subject to the
antidumping duty order for this period. On October 31, 2007, the
Department received a request from petitioners (ISG Georgetown Inc.,
Gerdau Ameristeel U.S. Inc., Nucor Steel Connecticut Inc., Keystone
Consolidated Industries, Inc., and Rocky Mountain Steel Mills) for a
review of Ivaco, Inc. and Ivaco Rolling Mills L.P. (which petitioners
referred to collectively as ``Ivaco''). On that same date, Ivaco
Rolling Mills 2004 L.P. and Sivaco Ontario, a division of Sivaco Wire
Group 2004 L.P., also requested a review of their entries.\1\ On
November 26, 2007, the Department published the notice of initiation of
this antidumping duty administrative review. See Initiation of
Antidumping and Countervailing Duty Administrative Reviews and Request
for Revocation in Part, 72 FR 65938 (November 26, 2007).\2\ Mittal
Canada subsequently withdrew its request for review, and the Department
rescinded the administrative review with respect to Mittal Canada. See
Carbon and Certain Alloy Steel Wire Rod from Canada: Notice of Partial
Rescission of Antidumping Duty Administrative Review, 72 FR 73321
(December 27, 2007).
---------------------------------------------------------------------------
\1\ Ivaco's October 31, 2007, request for review also contained
a request that the Department revoke the order with respect to
Ivaco. Ivaco later claimed that had the Department not ``zeroed'' in
the previous three reviews, Ivaco would have had negative weighted-
average margins for each of those segments. See Ivaco's March 14,
2008 Submission. The Department preliminarily rejects Ivaco's
request for revocation because it has not demonstrated, pursuant to
19 CFR 351.222(b)(2)(i)(A), that it has sold the merchandise at not
less than normal value for a period of at least three consecutive
years. We note that the Department has previously rejected Ivaco's
``zeroing'' argument in the prior segment of this proceeding and
that Ivaco had an antidumping duty rate of 2.98 percent ad valorem.
See Carbon and Certain Alloy Steel Wire Rod from Canada: Final
Results of Antidumping Duty Administrative Review, 73 FR 26958 (May
12, 2008), and accompanying Issues and Decision Memorandum at
Comment 5.
\2\ The Department's initiation notice referenced the following
companies: Mittal Canada Inc. (formerly Ispat Sidbec Inc.); Ivaco
Rolling Mills 2004 L.P. (formerly Ivaco Rolling Mills L.P.); and
Sivaco Ontario, a division of Sivaco Wire Group 2004 (L.P.)
(formerly Ivaco, Inc.).
---------------------------------------------------------------------------
Ivaco submitted a response to Section A of the Department's
questionnaire on December 28, 2007, and a response to Sections B, C,
and D of the Department's questionnaire on January 16, 2008. In
response to the Department's supplemental questionnaire dated February
15, 2008, Ivaco submitted a supplemental response for Section A on
March 21, 2008. In response to the Department's supplemental
questionnaire dated March 13, 2008, Ivaco submitted a supplemental
response for Sections A, B, C, and D on April 22, 2008.
The Department is considering IRM and Sivaco Ontario as part of the
same entity (referred to collectively in this notice as ``Ivaco'')
because of common ownership, consistent with the Department's treatment
of these companies in previous proceedings. See, e.g., Carbon and
Certain Alloy Steel Wire Rod from Canada: Final Results of Antidumping
Duty Administrative Review, 73 FR 26958 (May 12, 2008), and Notice of
Final Results of Antidumping Duty Administrative Review: Carbon and
Certain Alloy Steel Wire Rod from Canada, 72 FR 26591 (May 10, 2007).
Scope of the Order
The merchandise subject to this order is certain hot-rolled
products of carbon steel and alloy steel, in coils, of approximately
round cross section, 5.00 mm or more, but less than 19.00 mm, in solid
cross-sectional diameter.
Specifically excluded are steel products possessing the above-noted
physical characteristics and meeting the Harmonized Tariff Schedule of
the United States (``HTSUS'') definitions for (a) Stainless steel; (b)
tool steel; (c) high nickel steel; (d) ball bearing steel; and (e)
concrete reinforcing bars and rods. Also excluded are (f) free
machining steel products (i.e., products that contain by weight one or
more of the following elements: 0.03 percent or more of lead, 0.05
percent or more of bismuth, 0.08 percent or more of sulfur, more than
0.04 percent of phosphorus, more than 0.05 percent of selenium, or more
than 0.01 percent of tellurium).
Also excluded from the scope are 1080 grade tire cord quality wire
rod and 1080 grade tire bead quality wire rod. Grade 1080 tire cord
quality rod is defined as: (i) Grade 1080 tire cord quality wire rod
measuring 5.0 mm or more but not more than 6.0 mm in cross-sectional
diameter; (ii) with an average partial decarburization of no more than
70 microns in depth (maximum individual 200 microns); (iii) having no
non-deformable inclusions greater than 20 microns and no deformable
inclusions greater than 35 microns; (iv) having a carbon segregation
per heat average of 3.0 or better using European Method NFA 04-114; (v)
having a surface quality with no surface defects of a length greater
than 0.15 mm; (vi) capable of being drawn to a diameter of 0.30 mm or
less with 3 or fewer breaks per ton, and (vii) containing by weight the
following elements in the proportions shown: (1) 0.78 percent or more
of carbon, (2) less than 0.01 percent of aluminum, (3) 0.040 percent or
less, in the aggregate, of phosphorus and sulfur, (4) 0.006 percent or
less of nitrogen, and (5) not more than 0.15 percent, in the aggregate,
of copper, nickel and chromium.
Grade 1080 tire bead quality rod is defined as: (i) Grade 1080 tire
bead quality wire rod measuring 5.5 mm or more but not more than 7.0 mm
in cross-sectional diameter; (ii) with an average partial
decarburization of no more than 70 microns in depth (maximum individual
200 microns); (iii) having no non-deformable inclusions greater than 20
microns and no deformable inclusions greater than 35 microns; (iv)
having a carbon segregation per heat average of 3.0 or better using
European Method NFA 04-114; (v) having a surface quality with no
surface defects of a length greater than 0.2 mm; (vi) capable of being
drawn to a diameter of 0.78 mm or larger with 0.5 or fewer breaks per
ton; and (vii) containing by weight the following elements in the
proportions shown: (1) 0.78 percent or more of carbon, (2) less than
0.01 percent of soluble aluminum, (3) 0.040 percent or less, in the
aggregate, of phosphorus and sulfur, (4) 0.008 percent or less of
nitrogen, and (5) either not more than 0.15 percent, in the aggregate,
of copper, nickel and chromium (if chromium is not specified), or not
more than 0.10 percent in the aggregate of copper and nickel and a
chromium content of 0.24 to 0.30 percent (if chromium is specified).
For purposes of the grade 1080 tire cord quality wire rod and the
grade 1080 tire bead quality wire rod, an inclusion will be considered
to be deformable if its ratio of length (measured along the axis--that
is, the direction of rolling--of the rod) over thickness (measured on
the same inclusion in a direction perpendicular to the axis of the rod)
is equal to or greater than three. The size of an
[[Page 39648]]
inclusion for purposes of the 20 microns and 35 microns limitations is
the measurement of the largest dimension observed on a longitudinal
section measured in a direction perpendicular to the axis of the rod.
The designation of the products as ``tire cord quality'' or ``tire
bead quality'' indicates the acceptability of the product for use in
the production of tire cord, tire bead, or wire for use in other rubber
reinforcement applications such as hose wire. These quality
designations are presumed to indicate that these products are being
used in tire cord, tire bead, and other rubber reinforcement
applications, and such merchandise intended for the tire cord, tire
bead, or other rubber reinforcement applications is not included in the
scope. However, should petitioners or other interested parties provide
a reasonable basis to believe or suspect that there exists a pattern of
importation of such products for other than those applications, end-use
certification for the importation of such products may be required.
Under such circumstances, only the importers of record would normally
be required to certify the end use of the imported merchandise.
All products meeting the physical description of subject
merchandise that are not specifically excluded are included in this
scope. The products subject to this order are currently classifiable
under subheadings 7213.91.3011, 7213.91.3015, 7213.91.3092,
7213.91.4500, 7213.91.6000, 7213.99.0030, 7213.99.0090, 7227.20.0000,
7227.90.6010, and 7227.90.6080 of the HTSUS. Although the HTSUS
subheadings are provided for convenience and customs purposes, the
written description of the scope of this order is dispositive.
Export Price and Constructed Export Price
For the price to the United States, we used, as appropriate, export
price (EP) or constructed export price (CEP), as defined in sections
772(a) and 772(b) of the Tariff Act of 1930, as amended (the Act),
respectively. Section 772(a) of the Act defines EP as the price at
which the subject merchandise is first sold before the date of
importation by the producer or exporter outside of the United States to
an unaffiliated purchaser in the United States or to an unaffiliated
purchaser for exportation to the United States, as adjusted under
section 772(c) of the Act.
Section 772(b) of the Act defines CEP as the price at which the
subject merchandise is first sold in the United States before or after
the date of importation by or for the account of the producer or
exporter of such merchandise or by a seller affiliated with the
producer or exporter, to a purchaser not affiliated with the producer
or exporter, as adjusted under sections 772(c) and (d) of the Act.
Ivaco made both EP and CEP transactions. We calculated an EP for
sales where the merchandise was sold directly by Ivaco to the first
unaffiliated purchaser in the United States prior to importation, and
CEP was not otherwise warranted based on the facts on the record. We
calculated a CEP for sales made by Ivaco after importation to the
United States (where the merchandise was located at an unaffiliated
processor facility or unaffiliated distributor warehouse at the time of
sale).
For EP sales, we made additions to the starting price (gross unit
price), where appropriate, for freight revenue received by Ivaco
(reimbursement by customers for freight charges paid by Ivaco) and for
billing errors (debit-note price adjustments made by Ivaco), and
deductions, where appropriate, for billing adjustments (including
credit-note price adjustments made by Ivaco), early payment discounts
and rebates, and movement expenses in accordance with section
772(c)(2)(A) of the Act. Movement expenses included inland freight,
warehousing expenses, and brokerage fees.
For CEP sales, we made adjustments to the starting price as for the
EP transactions described above. However, consistent with our treatment
of these expenses in recent administrative reviews, we re-categorized
freight from one unaffiliated processor in the United States to another
unaffiliated processor in the United States as a further manufacturing
cost. See, e.g., Notice of Final Results of Antidumping Duty
Administrative Review: Carbon and Certain Alloy Steel Wire Rod from
Canada, 71 FR 3822 (January 24, 2006) and accompanying Issues and
Decision Memorandum at Comment 1. In addition, in accordance with
section 772(d)(1) and (2) of the Act, we deducted from the starting
price those selling expenses incurred in selling the subject
merchandise in the United States, including direct selling expenses
(imputed credit expenses and warranty expenses), imputed inventory
carrying costs, and further manufacturing. Finally, in accordance with
section 772(d)(3) of the Act, we deducted an amount of profit allocated
to the expenses deducted under sections 772(d)(1) and (2) of the Act.
See Memorandum from Steve Bezirganian, Analyst, ``Analysis Memorandum
for Ivaco Rolling Mills 2004 L.P. and Sivaco Ontario, a division of
Sivaco Wire Group 2004 L.P.: Carbon and Certain Alloy Steel Wire Rod
from Canada (A-122-840), October 1, 2006-September 30, 2007'' (July 2,
2008) (Ivaco Analysis Memorandum).
Normal Value
A. Selection of Comparison Markets
Section 773(a)(1) of the Act directs that NV be based on the price
at which the foreign like product is sold in the home market, provided
the merchandise is sold in sufficient quantities (or value, if quantity
is inappropriate) and that there is not a particular market situation
that prevents a proper comparison with sales to the United States. The
statute contemplates that quantities (or value) will normally be
considered insufficient if they are less than five percent of the
aggregate quantity (or value) of sales of the subject merchandise to
the United States. See section 773(a)(1) of the Act.
We found that Ivaco had a viable home market for steel wire rod
because its home market sales, by quantity, exceeded the five percent
threshold. See Ivaco Analysis Memorandum. Ivaco submitted home market
sales data for purposes of the calculation of NV. In deriving NV, we
made adjustments as detailed in the ``Calculation of Normal Value Based
on Comparison Market Prices'' section below.
B. Cost of Production Analysis
Because we disregarded below-cost sales in the most recently
completed segment of the proceeding, we had reasonable grounds to
believe or suspect that home market sales of the foreign like product
by the respondent were made at prices below the cost of production
(COP) during the POR, in accordance with section 773(b)(2)(A) of the
Act. See Notice of Preliminary Results of Antidumping Duty
Administrative Review and Notice of Initiation of Changed Circumstances
Review: Carbon and Certain Alloy Steel Wire Rod from Canada, 71 FR
64921, 64924 (November 6, 2006) (unchanged in final results, 72 FR
26591 (May 10, 2007)). Therefore, we required Ivaco to file a response
to Section D of the Department's Questionnaire.
1. Calculation of Cost of Production
In accordance with section 773(b)(3) of the Act, we calculated the
weighted-average COP by model based on the sum of materials,
fabrication, and general and administrative (G&A) expenses.
2. Test of Comparison Market Sales Prices
We compared the weighted-average COPs for the respondent to its
home
[[Page 39649]]
market sales prices of the foreign like product, as required under
section 773(b) of the Act, to determine whether these sales had been
made at prices below the COP within an extended period of time (i.e.,
normally a period of one year) in substantial quantities and whether
such prices were sufficient to permit the recovery of all costs within
a reasonable period of time. On a model-specific basis, we compared the
COP to the home market prices, less any applicable movement charges,
discounts, rebates, and direct and indirect selling expenses.
3. Results of the COP Test
We disregard below-cost sales where: (1) 20 percent or more of the
respondent's sales of a given product during the POR were made at
prices below the COP in accordance with sections 773(b)(2)(B) and (C)
of the Act; and (2) based on comparisons of price to weighted-average
COPs for the POR, we determine that the below-cost sales of the product
were at prices that would not permit recovery of all costs within a
reasonable time period, in accordance with section 773(b)(2)(D) of the
Act. We found Ivaco made sales below cost and we disregarded such sales
where appropriate.
C. Calculation of Normal Value Based on Comparison-Market Prices
We determined NV for Ivaco as follows. We made adjustments to the
gross price to account for billing adjustments, and deducted discounts
and rebates. We deducted home market packing costs and added U.S.
packing costs, in accordance with sections 773(a)(6)(A) and (B) of the
Act. We also deducted home market movement expenses pursuant to
sections 773(a)(6)(B) of the Act. In addition, we made adjustments for
differences in circumstances of sale (COS) pursuant to section
773(a)(6)(C)(iii) of the Act. Specifically, we made adjustments for
Ivaco's EP transactions by deducting direct selling expenses incurred
for home market sales (i.e., credit expenses and warranty expenses) and
adding U.S. direct selling expenses (i.e., credit expenses and warranty
expenses). See section 773(a)(6)(C)(iii) of the Act, and 19 CFR
351.410(c). Where we compared Ivaco's U.S. sales to home market sales
of merchandise, we made adjustments, where appropriate, for physical
differences in the merchandise in accordance with section
773(a)(6)(C)(ii) of the Act.
D. Arm's-Length Sales
The respondent reported sales of the foreign like product to
affiliated customers. To test whether these sales to affiliated
customers were made at arm's length, where possible, we compared the
prices of sales to affiliated and unaffiliated customers, net of all
movement charges, direct selling expenses, and packing. Where the price
to that affiliated party was, on average, within a range of 98 to 102
percent of the price of the same or comparable merchandise sold to the
unaffiliated parties at the same level of trade, we determined that the
sales made to the affiliated party were at arm's length. See
Modification Concerning Affiliated Party Sales in the Comparison
Market, 67 FR 69186 (November 15, 2002). Ivaco's sales to affiliated
parties that were determined not to be at arm's length were disregarded
in our comparison to U.S. sales.
E. Calculation of Normal Value Based on Constructed Value
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 models of steel wire rod for which we
could not determine the NV based on comparison-market sales, either
because there were no sales of a comparable product or all sales of the
comparison products failed the COP test, we based NV on CV.
Section 773(e)(1) 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 for selling, general, and administrative
expenses (SG&A), profit, and U.S. packing expenses. We calculated the
cost of materials and fabrication based on the methodology described in
the COP section of this notice. We based SG&A and profit on the actual
amounts incurred and realized by the respondent in connection with the
production and sale of the foreign like product in the ordinary course
of trade, for consumption in the comparison market, in accordance with
section 773(e)(2)(A) of the Act.
We made adjustments to CV for differences in COS in accordance with
section 773(a)(8) of the Act and 19 CFR 351.410. For CEP and EP
comparisons, we deducted direct selling expenses incurred for home
market sales (i.e., credit expenses and warranty expenses). See Section
773(a)(6)(C)(iii) of the Act and 19 CFR 351.410(c). For EP sales, we
added U.S. direct selling expenses (i.e., credit expenses and warranty
expenses) to the NV.
F. Level of Trade/Constructed Export Price Offset
In accordance with section 773(a)(1)(B) of the Act, we determine NV
based on sales in the comparison market at the same level of trade
(LOT) as the EP and CEP sales, to the extent practicable. When there
are no sales at the same LOT, we compare U.S. sales to comparison
market sales at a different LOT. When NV is based on CV, the NV LOT is
that of the sales from which we derive SG&A expenses and profit.
Pursuant to 19 CFR 351.412(c)(2), to determine whether comparison
market sales were at a different LOT, we examine stages in the
marketing process and selling functions along the chain o2f
distribution between the producer and the unaffiliated (or arm's-
length) customers. The Department identifies the LOT based on: the
starting price or constructed value (for normal value); the starting
price (for EP sales); and the starting price, as adjusted under section
772(d) of the Act (for CEP sales). If the comparison-market sales were
at a different LOT and the differences affect price comparability, as
manifested in a pattern of consistent price differences between the
sales on which NV is based and comparison-market sales at the LOT of
the export transaction, we will make an LOT adjustment under section
773(a)(7)(A) of the Act.
Finally, if the NV LOT is more remote from the factory than the CEP
LOT and there is no basis for determining whether the differences in
LOT between NV and CEP affected price comparability, we will grant a
CEP offset, as provided in section 773(a)(7)(B) of the Act.
Ivaco reported home market sales in two channels of distribution:
(1) Direct sales by IRM and (2) direct sales by Sivaco Ontario.\3\
Ivaco reported U.S. EP sales in two channels of distribution: (1)
direct sales by IRM to U.S. customers and (2) direct sales by Sivaco
Ontario to U.S. customers. Finally, Ivaco reported U.S. CEP sales in
one channel of distribution: Direct sales by IRM to U.S. customers made
from the facilities of unaffiliated U.S. processors or unaffiliated
U.S. warehouses. Ivaco claims that all of IRM's home market and U.S.
sales are at one LOT, and that all of Sivaco's home market and U.S.
sales are at another, more advanced, LOT. Ivaco states that the
Department
[[Page 39650]]
should calculate a LOT adjustment when sales by IRM are matched to
sales by Sivaco. Ivaco also states that, if the Department determines
that IRM's U.S. CEP sales are at a different LOT from all Ivaco's home
market sales, the Department should grant a CEP offset.
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\3\ Ivaco identified a third channel of distribution in the home
market. Although proprietary treatment of the description prevents
additional public discussion of the details of this proposed
channel, it is simply a variation of direct sales by Sivaco Ontario.
Ivaco has not claimed that this proposed channel constitutes an
additional LOT, and the record does not indicate that it is one.
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To determine whether there were multiple LOTs, we examined the
selling functions performed by Ivaco for its customers. We found few
differences in selling functions across the various channels of
distribution and, based on this examination, we preliminarily determine
that Ivaco sold merchandise at one LOT in both markets. See the
Memorandum from Steve Bezirganian, ``Level of Trade Analysis for Ivaco
Rolling Mills 2004 L.P. and Sivaco Ontario, a division of Sivaco Wire
Group 2004 L.P.: Carbon and Certain Alloy Steel Wire Rod from Canada
(A-122-840), October 1, 2006--September 30, 2007'' (July 2, 2008).
Consequently, there is no basis for calculating a LOT adjustment or a
CEP offset.
Currency Conversion
We made currency conversions into U.S. dollars in accordance with
section 773A of the Act, based on exchange rates in effect on the date
of the U.S. sale, as provided by the Federal Reserve Bank.
Preliminary Results of Review
As a result of this review, we preliminarily determine the
following weighted-average margin exists for the period October 1,
2006, through September 30, 2007:
------------------------------------------------------------------------
Weighted-average
Producer/exporter margin (percentage)
------------------------------------------------------------------------
Ivaco.............................................. 2.33
------------------------------------------------------------------------
In accordance with 19 CFR 351.224(b), the Department will disclose
calculations performed within five days of publication of this notice.
Interested parties may submit case briefs and/or written comments no
later than 30 days after the date of publication of these preliminary
results. See 19 CFR 351.309(c)(ii). Rebuttal briefs and rebuttals to
written comments, limited to issues raised in such briefs or comments,
may be filed no later than five days after submission of case briefs.
See 19 CFR 351.309(d). Parties who submit arguments are requested to
submit with the argument: (1) A statement of the issues; (2) a brief
summary of the arguments; and (3) a table of authorities. Further,
parties submitting written comments should provide the Department with
an additional copy of the public version of any such comments on
diskette. An interested party may request a hearing within 30 days of
publication of these preliminary results. See 19 CFR 351.310(c). Any
hearing, if requested, will be held two days after the date for
submission of rebuttal briefs, or the first working day thereafter. The
Department will issue the final results of this administrative review,
which will include the results of its analysis of issues raised in any
such comments, within 120 days of publication of these preliminary
results, pursuant to Section 751(a)(3) of the Act.
Assessment
Upon completion of this administrative review, pursuant to 19 CFR
351.212(b), the Department will calculate an assessment rate on all
appropriate entries. The Department will issue assessment instructions
directly to CBP on or after 41 days following the publication of the
final results of review, pursuant to 19 CFR 356.8(a). We will calculate
importer-specific duty assessment rates on the basis of the ratio of
the total amount of antidumping duties calculated for the examined
sales to the total entered value of the examined sales for that
importer.
The Department clarified its ``automatic assessment'' regulation on
May 6, 2003. See Antidumping and Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) (Assessment
Policy Notice). This clarification will apply to entries of subject
merchandise during the period of review produced by companies included
in these final results where the reviewed companies did not know the
merchandise it sold to the intermediary (e.g., a reseller, trading
company, or exporter) was destined for the United States. In such
instances, we will instruct CBP to liquidate unreviewed entries at the
all-others rate if there was no rate calculated in this review for the
intermediary involved in the transaction. See id., 68 FR at 23954.
Cash Deposit Requirements
The following deposit rates will be effective upon publication of
the final results of this administrative review for all shipments of
steel wire rod from Canada entered, or withdrawn from warehouse, for
consumption on or after the publication date, as provided by section
751(a)(1) of the Act: (1) The cash deposit rate for Ivaco will be the
rate established in the final results of this review, except if a rate
is less than 0.5 percent, and therefore de minimis, the cash deposit
will be zero; (2) for previously reviewed or investigated companies not
listed above, the cash deposit rate will continue to be the company-
specific rate published for the most recent period; (3) if the exporter
is not a firm covered in this review, a prior review, or the less-than-
fair-value (LTFV) investigation, but the manufacturer is, the cash
deposit rate will be the rate established for the most recent period
for the manufacturer of the merchandise; and (4) if neither the
exporter nor the manufacturer is a firm covered in this or any previous
review conducted by the Department, the cash deposit rate will be 8.11
percent, the all-others rate established in the LTFV investigation.
These cash deposit requirements, when imposed, shall remain in
effect until publication of the final results of the next
administrative review.
This notice serves as a preliminary reminder to importers of their
responsibility under 19 CFR 351.402(f) to file a certificate regarding
the reimbursement of antidumping duties prior to liquidation of the
relevant entities during this review period. Failure to comply with
this requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
These preliminary results are issued and published in accordance
with sections 751(a)(1) and 777(i)(1) of the Act.
Dated: July 2, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E8-15753 Filed 7-9-08; 8:45 am]
BILLING CODE 3510-DS-P