Certain Welded Stainless Steel Pipes From the Republic of Korea: Preliminary Results of Antidumping Duty Administrative Review, 973-977 [2010-29]
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Federal Register / Vol. 75, No. 4 / Thursday, January 7, 2010 / Notices
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Certain Welded Stainless Steel Pipes
From the Republic of Korea:
Preliminary Results of Antidumping
Duty Administrative Review
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 certain
welded stainless steel pipes (WSSP)
from the Republic of Korea (Korea) for
the period of review (POR) December 1,
2007 through November 30, 2008. The
review covers one respondent, SeAH
Steel Corporation (SeAH).
We preliminarily determine that sales
made by SeAH have been made at below
normal value (NV). If the preliminary
results are adopted in our final results
of administrative review, we will
instruct U.S. Customs and Border
Protection (CBP) to assess antidumping
duties on entries of SeAH’s merchandise
during the POR. Interested parties are
invited to comment on the preliminary
results.
DATES: Effective Date: January 7, 2010.
FOR FURTHER INFORMATION CONTACT:
Holly Phelps or Elizabeth Eastwood,
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AD/CVD Operations, Office 2, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–0656 or (202) 482–
3874, respectively.
SUPPLEMENTARY INFORMATION:
Background
In December 1992, the Department
published in the Federal Register an
antidumping duty order on certain
WSSP from Korea. See Antidumping
Duty Order and Clarification of Final
Determination: Certain Welded
Stainless Steel Pipes from Korea, 57 FR
62301 (Dec. 30, 1992), as amended in
Notice of Amended Final Determination
and Antidumping Duty Order: Certain
Welded Stainless Steel Pipe from the
Republic of Korea, 60 FR 10064 (Feb. 23,
1995) (Amended Final Determination
and Order). On December 1, 2008, the
Department published in the Federal
Register a notice of opportunity to
request an administrative review of the
antidumping duty order of WSSP from
Korea for the period December 1, 2007,
through November 31, 2008. See
Antidumping or Countervailing Duty
Order, Finding, or Suspended
Investigation; Opportunity To Request
Administrative Review, 73 FR 72764
(Dec. 1, 2008).
On December 29, 2008, the
Department received a timely request
from SeAH, in accordance with section
751(a)(1) of the Tariff Act of 1930, as
amended (the Act), and 19 CFR
351.213(b), for an administrative review
of the antidumping duty order on WSSP
from Korea. On February 2, 2009, the
Department published, in the Federal
Register, the notice of initiation of the
administrative review of the
antidumping duty order on WSSP from
Korea for SeAH. See Initiation of
Antidumping and Countervailing Duty
Administrative Reviews and Requests
for Revocation in Part, 74 FR 5821 (Feb.
2, 2009).
In February 2009, the Department
issued the antidumping duty
questionnaire to SeAH. SeAH timely
submitted its response to section A of
the questionnaire (i.e., the section
relating to general information about the
company) on March 20, 2009, and its
responses to sections B through D of its
questionnaires (i.e., the sections relating
to sales to the home and U.S. markets
and cost information) on April 20, 2009.
In August 2009, in accordance with
section 751(a)(3)(A) of the Act and 19
CFR 351.212(h)(2), we extended the
deadline for the preliminary results of
this review by 120 days until no later
than December 31, 2009. See Welded
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ASTM A–312 Stainless Steel Pipe from
the Republic of Korea: Extension of
Time Limit for Preliminary Results of
Antidumping Duty Administrative
Review, 74 FR 39045 (Aug. 5, 2009).
During the period August 2009
through December 2009, we issued
supplemental questionnaires to SeAH.
We received responses to these
questionnaires from September 2009
through December 2009.
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
Scope of the Order
The merchandise subject to the
antidumping duty order is welded
austenitic stainless steel pipe that meets
the standards and specifications set
forth by the American Society for
Testing and Materials (ASTM) for the
welded form of chromium-nickel pipe
designated ASTM A–312. The
merchandise covered by the scope of the
order also includes austenitic welded
stainless steel pipes made according to
the standards of other nations which are
comparable to ASTM A–312.
WSSP is produced by forming
stainless steel flat-rolled products into a
tubular configuration and welding along
the seam. WSSP is a commodity product
generally used as a conduit to transmit
liquids or gases. Major applications for
steel pipe include, but are not limited
to, digester lines, blow lines,
pharmaceutical lines, petrochemical
stock lines, brewery process and
transport lines, general food processing
lines, automotive paint lines, and paper
process machines. Imports of WSSP are
currently classifiable under the
following Harmonized Tariff Schedule
of the United States (HTSUS)
subheadings: 7306.40.5005,
7306.40.5015, 7306.40.5040,
7306.40.5065, and 7306.40.5085.
Although these subheadings include
both pipes and tubes, the scope of the
antidumping duty order is limited to
welded austenitic stainless steel pipes.
The HTSUS subheadings are provided
for convenience and customs purposes.
However, the written description of the
scope of the order is dispositive.
Normal Value Analysis
In accordance with section 777A(d)(2)
of the Act, to determine whether sales
of WSSP from Korea were made in the
United States at less than NV, we
compared the constructed export price
(CEP) to the NV, as described in the
‘‘Constructed Export Price’’ and
‘‘Normal Value’’ sections of this notice.
Product Comparisons
When making comparisons in
accordance with section 771(16) of the
Act, we considered all products sold by
the respondent in the home market
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during the POR as described in the
‘‘Scope of the Order’’ section of this
notice, above, that were in the ordinary
course of trade for purposes of
determining appropriate product
comparisons to U.S. sales.
In accordance with section 771(16)(A)
of the Act, we first attempted to
compare products produced by the same
company and sold in the U.S. and home
markets that were identical with respect
to the following characteristics:
Specification and grade, hot or cold
finish, size, wall thickness schedule,
and end finish. Where there were no
home market sales of foreign like
product that were identical in these
respects to the merchandise sold in the
United States, in accordance with
section 771(16)(B) and (C) of the Act, we
compared U.S. products with the most
similar merchandise sold in the home
market based on the characteristics
listed above, in that order of priority.
Constructed Export Price
Pursuant to section 772(b) of the Act,
for sales to the United States, we
preliminarily determine that all of
SeAH’s U.S. sales are CEP sales because
all sales of subject merchandise to the
United States were made by Pusan Pipe
America (PPA), SeAH’s U.S. sales
subsidiary, to an unaffiliated customer
in the United States. We based CEP on
the packed prices charged to the first
unaffiliated customer in the United
States. To establish CEP, where
appropriate, we made net price
adjustments, as defined by 19 CFR
351.102(b)(38), to PPA’s starting price to
account for early payment discounts,
pursuant to 19 CFR 351.401(c). We
made deductions for movement
expenses, in accordance with section
772(c)(2) of the Act; these adjustments
included, where appropriate, foreign
inland freight expenses, foreign
brokerage and handling expenses, ocean
freight expenses, marine insurance, U.S.
brokerage and handling expenses, and
U.S. customs duties. For further
discussion of the changes made to
SeAH’s reported U.S. sales data, see the
December 31, 2009, memorandum from
Holly Phelps, Analyst, to the File,
entitled ‘‘Calculations Performed for
SeAH Steel Corporation for the
Preliminary Results in the 2007–2008
Antidumping Duty Administrative
Review of Certain Welded Stainless
Steel Pipe from Korea’’ (SeAH Prelim
Calc Memo).
In accordance with sections 772(d)(1)
and (2) of the Act, we also deducted,
where applicable, those selling expenses
associated with economic activities
occurring in the United States,
including U.S. direct selling expenses
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(i.e., warranty and imputed credit
expenses), and indirect selling expenses
(including inventory carrying costs and
other indirect selling expenses incurred
in the United States).
Pursuant to section 772(d)(3) of the
Act, we further reduced the starting
price by an amount for profit to arrive
at CEP. In accordance with section
772(f) of the Act and 19 CFR 351.402(d),
we calculated the CEP profit rate using
the expenses incurred by SeAH and its
U.S. affiliate on their sales of the subject
merchandise in the United States and
the profit associated with those sales.
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, in the
ordinary course of trade, and, to the
extent practicable, at the same level of
trade (LOT) as the CEP sale. See ‘‘Level
of Trade’’ section, below. After testing
home market viability and whether
home market sales were at below-cost
prices, we calculated NV for SeAH as
discussed in the following sections.
A. Home Market Viability and Selection
of Comparison Markets
In order to determine whether there is
a sufficient volume of sales in the home
market to serve as a viable basis for
calculating NV (i.e., the aggregate
volume of home market sales of the
foreign like product is five percent or
more of the aggregate volume of U.S.
sales), we compared the volume of
SeAH’s home market sales of the foreign
like product to the volume of U.S. sales
of subject merchandise, in accordance
with section 773(a)(1)(B) of the Act.
Based on this comparison, we
determined that SeAH had a viable
home market during the POR.
Consequently, we based NV on home
market sales, pursuant to section
773(a)(1) of the Act and 19 CFR
351.404(b).
B. Affiliated-Party Transactions and
Arm’s-Length Test
During the POR SeAH made sales of
WSSP in the home market to an
affiliated party, as defined in section
771(33) of the Act. Consequently, we
tested these sales to ensure that they
were made at arm’s-length prices, in
accordance with 19 CFR 351.403(c). To
test whether the sales to the affiliate
were made at arm’s-length prices, we
compared the unit prices of sales to
affiliated and unaffiliated customers net
of all movement charges, direct selling
expenses, and packing expenses.
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WReier-Aviles on DSKGBLS3C1PROD with NOTICES
Pursuant to 19 CFR 351.403(c) and in
accordance with the Department’s
practice, 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 LOT, we determined that the sales
made to the affiliated party were at
arm’s length. See Antidumping
Proceedings: Affiliated Party Sales in
the Ordinary Course of Trade, 67 FR
69186 (Nov. 15, 2002) (establishing that
the overall ratio calculated for an
affiliate must be between 98 and 102
percent, inclusive, of prices to
unaffiliated customers in order for sales
to that affiliate to be considered in the
ordinary course of trade and used in the
NV calculation). Sales to affiliated
customers in the home market that were
not made at arm’s-length prices were
excluded from our analysis because we
considered these sales to be outside the
ordinary course of trade. See section
771(15) of the Act and 19 CFR
351.102(b).
C. Level of Trade
In accordance with section
773(a)(1)(B)(i) of the Act, to the extent
practicable, we determine NV based on
sales in the home market at the same
LOT as CEP. Sales are made at different
LOTs if they are made at different
marketing stages (or their equivalent).
See 19 CFR 351.412(c)(2). Substantial
differences in selling activities are a
necessary, but not sufficient, condition
for determining that there is a difference
in the stages of marketing. Id; see also
Notice of Final Determination of Sales
at Less than Fair Value: Certain Cut-toLength Carbon Steel Plate from South
Africa, 62 FR 61731, 61732 (Nov. 19,
1997) (Plate from South Africa). In order
to determine whether the home market
sales were at different stages in the
marketing process than the U.S. sales,
we reviewed the distribution system in
each market (i.e., the chain of
distribution), including selling
functions, class of customer (customer
category), and the level of selling
expenses for each type of sale.
Pursuant to section 773(a)(1)(B)(i) of
the Act, in identifying LOTs for export
price (EP) and comparison market sales
(i.e., NV based on either home market or
third country prices),1 we consider the
starting prices before any adjustments.
For CEP sales, we consider only the
selling activities reflected in the price
after the deduction of expenses and
1 Where NV is based on constructed value (CV),
we determine the NV LOT based on the LOT of the
sales from which we derive selling expenses,
general and administrative (G&A) expenses, and
profit for CV, where possible.
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profit under section 772(d) of the Act.
See Micron Tech., Inc. v. United States,
243 F.3d 1301, 1314–16 (Fed. Cir. 2001).
When the Department is unable to
match U.S. sales of the foreign like
product in the comparison market at the
same LOT as the EP or CEP, the
Department may compare the U.S. sale
to sales at a different LOT in the
comparison market. In comparing EP or
CEP sales at a different LOT in the
comparison market, where available
data make it possible, we make an LOT
adjustment under section 773(a)(7)(A) of
the Act. Finally, for CEP sales only, if
the NV LOT is at a more advanced stage
of distribution than the LOT of the CEP
and there is no basis for determining
whether the difference in LOTs between
NV and CEP affects price comparability
(i.e., no LOT adjustment was possible),
the Department shall grant a CEP offset,
as provided in section 773(a)(7)(B) of
the Act. See, e.g., Plate from South
Africa, 62 FR at 61732–33.
In determining whether separate
LOTs exist, we obtained information
from SeAH regarding the marketing
stages for the reported U.S. and home
market sales, including a description of
the selling activities performed for each
channel of distribution. Generally, if the
reported LOTs are the same, the
functions and activities of the seller at
each level should be similar.
Conversely, if a party reports that LOTs
are different for different groups of
sales, the selling functions and activities
of the seller for each group should be
dissimilar.
In the current review, SeAH reported
that it made sales through a single
channel of distribution in the home
market (i.e., direct sales to affiliated and
unaffiliated customers). SeAH reported
performing the following selling
functions for its home market sales:
Sales negotiation, sales personnel
training, sales promotion, order input/
processing, invoicing, collection of
payment, sales forecasting, sales
marketing support, market research,
freight/delivery, warehouse operations,
and inventory maintenance. These
selling activities can be generally
grouped into three selling function
categories for analysis: (1) Sales and
marketing; (2) freight and delivery; and
(3) inventory management.
Accordingly, based on the selling
functions noted above, we find that
SeAH performed sales and marketing,
freight and delivery services, and
inventory management services for
home market sales. Because all home
market sales are made through a single
distribution channel and the selling
activities to SeAH’s customers do not
vary within the channel, we
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preliminarily determine that there is
one LOT in the home market for SeAH.
With respect to the United States,
SeAH reported that it made sales
through one channel of distribution (i.e.,
CEP sales via an affiliated reseller) and
that the selling functions were
performed at a lower level of intensity
than in the home market. We examined
the selling functions performed for U.S.
sales and found that SeAH performed
the following selling functions: order
input/processing, invoicing, collection
of payment, freight/delivery, and
inventory maintenance. These selling
activities can be generally grouped into
three selling function categories for
analysis: (1) Sales and marketing; (2)
freight and delivery; and (3) inventory
management.
Accordingly, based on the selling
functions, we find that SeAH performed
sales and marketing, freight and
delivery services, warranty and
technical services, and inventory
management for all U.S. sales. Because
all U.S. sales are made through a single
distribution channel and the selling
activities to SeAH’s affiliated reseller do
not vary within the channel, we
preliminarily determine that there is
one LOT to the U.S. market for SeAH.
SeAH stated that its U.S. sales were
made at a different, less advanced LOT
than its home market sales. SeAH is not
seeking a LOT adjustment, however,
because it had only one LOT in the
home market. Instead, it claims that a
CEP offset is warranted. As a result, we
compared the U.S. LOT to the home
market LOT and found that the selling
functions performed for U.S. and home
market customers differ, as SeAH did
not perform identical selling functions
in both markets, and the selling
functions for sales in the home market
are at a greater intensity than for sales
to the United States. Specifically, we
determine that differences in sales
negotiation, sales personnel training,
warehousing, and advertising exist
between sales to home market and U.S.
customers. See SeAH’s September 10,
2009, section A supplemental response
at page 5 and Exhibit A–37.
In this case, because SeAH sold at one
LOT in the home market, there is no
basis upon which to determine whether
there is a pattern of consistent price
differences between LOTs. Therefore,
we have not made a LOT adjustment.
Instead, in accordance with section
773(a)(7)(B) of the Act, we preliminarily
determine that a CEP offset is
appropriate to reflect that SeAH’s home
market sales are at a more advanced
stage than the LOT of SeAH’s CEP sales.
We based the amount of the CEP offset
on home market indirect selling
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expenses and limited the deduction to
the amount of the indirect selling
expenses deducted from CEP under
section 772(d)(1)(D) of the Act. We
applied the CEP offset to the NV–CEP
comparisons.
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
D. Cost of Production Analysis
Pursuant to section 773(b)(2)(A)(ii) of
the Act, for SeAH there were reasonable
grounds to believe or suspect that SeAH
made home market sales at prices below
its cost of production (COP) in this
review because the Department had
disregarded sales that failed the cost test
for SeAH in the most recently
completed segment of this proceeding in
which SeAH participated (i.e., the
1997–1998 administrative review) at the
time of the initiation of this
administrative review. See Certain
Welded ASTM A–312 Stainless Steel
Pipe from Korea: Preliminary Results of
Antidumping Duty Administrative
Review, 64 FR 72645, 72647 (Dec. 28,
1999), unchanged in Certain Welded
ASTM A–312 Stainless Steel Pipe from
the Republic of Korea; Final Results of
Antidumping Duty Administrative
Review, 65 FR 30071 (May 10, 2000). As
a result, the Department initiated an
investigation to determine whether
SeAH made home market sales during
the POR at prices below their COPs.
1. Calculation of COP
In accordance with section 773(b)(3)
of the Act, we calculated COP based on
the sum of SeAH’s cost of materials and
fabrication for the foreign like product,
plus amounts for G&A expenses and
interest expenses. See the ‘‘Test of
Home Market Sales Prices’’ section
below for treatment of home market
selling expenses.
We relied on the COP information
provided by SeAH in its questionnaire
response, except for the following
instances where the information was not
appropriately quantified or valued:
i. During the POR, SeAH purchased
hot-rolled stainless steel coil from a
Korean affiliate, Pohang Iron and Steel
Company (POSCO). Stainless steel coil
is a major input in the production of
stainless steel pipe. In accordance with
section 773(f)(3) of the Act, we
evaluated transactions between SeAH
and its affiliate using the transfer price,
COP, and market price of stainless steel
coils. We adjusted SeAH’s reported
costs to reflect the highest of these three
values for SeAH’s purchases of stainless
steel coil from POSCO.
ii. We adjusted the numerator of
SeAH’s G&A expense ratio to include
raw material and work-in-process
inventory (WIP) valuation losses. We
also adjusted the denominator of the
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G&A expense ratio to exclude these
inventory valuation losses.
iii. We excluded the long-term
interest income generated from
retirement and severance deposits from
the calculation of the interest expense
ratio. We also adjusted the denominator
of the financial expense ratio to exclude
raw material and WIP inventory
valuation losses.
iv. We replaced the negative labor
cost reported for one product (or
‘‘control number’’) with the labor cost of
the most similar control number.
For further discussion of these
adjustments, see the memorandum from
Laurens van Houten, Accountant, to
Neal M. Halper, Director, Office of
Accounting, entitled, ‘‘Cost of
Production and Constructed Value
Calculation Adjustments for the
Preliminary Results—SeAH Steel
Corporation,’’ dated December 31, 2009.
2. Test of Home Market Sales Prices
To determine whether SeAH’s home
market sales had been made at prices
below the COP, we computed weightedaverage COPs during the POR, and
compared the weighted-average COP
figures to home market sales prices of
the foreign like product as required
under section 773(b) of the Act. On a
product-specific basis, we compared the
COP to the home market prices, net of
billing adjustments, any applicable
movement charges, selling expenses,
and packing expenses.
3. Results of the COP Test
Pursuant to sections 773(b)(1)(A) and
(b)(2)(C)(i) of the Act, where less than 20
percent of SeAH’s sales of a given
product were at prices less than the
COP, we did not disregard any belowcost sales of that product because we
determined that the below-cost sales
were not made in ‘‘substantial
quantities.’’ Where 20 percent or more
of SeAH’s sales of a given product were
at prices below the COP, we determined
that sales of that model were made in
‘‘substantial quantities’’ within an
extended period of time (as defined in
section 773(b)(2)(B) of the Act), in
accordance with section 773(b)(2)(C)(i)
of the Act. In such cases, we also
determined that such sales were not
made at prices which would permit
recovery of all costs within a reasonable
period of time, in accordance with
section 773(b)(1)(B) and (b)(2)(D) of the
Act. Therefore, for purposes of this
administrative review, we disregarded
these below-cost sales for SeAH and
used the remaining sales as the basis for
determining NV, in accordance with
section 773(a)(1) of the Act.
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E. Calculation of Normal Value
We calculated NV based on the
starting prices to home market
customers. We made adjustments,
where appropriate, to the starting price
for billing adjustments in accordance
with 19 CFR 351.401(c). In addition,
where appropriate, we made deductions
for inland freight expenses, in
accordance with section 773(a)(6)(B)(ii)
of the Act.
Pursuant to section 773(a)(6)(C) of the
Act, we made adjustments for credit
expenses. We made a CEP offset
pursuant to section 773(a)(7)(B) of the
Act and 19 CFR 351.412(f). We
calculated the CEP offset as the lesser of
the indirect selling expenses on the
home-market sales or the indirect
selling expenses deducted from the
starting price in calculating CEP. 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.
Finally, we made an adjustment to NV
to account for differences in physical
characteristics of the merchandise, in
accordance with section 773(a)(6)(C)(ii)
of the Act and 19 CFR 351.411(a).
Currency Conversion
In accordance with section 773A of
the Act, we made currency conversions
based on the official exchange rates in
effect on the dates of the U.S. sales as
certified by the Federal Reserve Bank.
See https://www.ia.ita.doc.gov/exchange/
index.html. See also 19 CFR 351.415.
Preliminary Results of the Review
We preliminarily determine that the
following margin exists for SeAH during
the period December 1, 2007, through
November 30, 2008:
Manufacturer/producer/exporter
SeAH Steel Corporation ...............
Percent
margin
5.15
Assessment Rates
Upon completion of the
administrative review, the Department
shall determine, and CBP shall assess,
antidumping duties on all appropriate
entries. Pursuant to 19 CFR
351.212(b)(1), the Department calculates
an assessment rate for each importer of
the subject merchandise for each
respondent. In accordance with 19 CFR
351.212(b)(1), we will calculate
importer-specific assessment rates on
the basis of the ratio of the total amount
of antidumping duties calculated for the
examined sales and the total entered
value of the examined sales. These rates
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Federal Register / Vol. 75, No. 4 / Thursday, January 7, 2010 / Notices
will be assessed uniformly on all entries
of the respective importers made during
the POR if these preliminary results are
adopted in the final results of review.
The Department intends to issue
appropriate assessment instructions
directly to CBP 15 days after the date of
publication of the final results of this
review.
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 POR produced by SeAH for
which SeAH did not know that the
merchandise it sold to the intermediary
(e.g., a reseller, trading company, or
exporter) was destined for the United
States. In such instances, we will
instruct CBP to liquidate unreviewed
entries at the all-others rate if there is no
rate for the intermediary involved in the
transaction. See Assessment Policy
Notice for a full discussion of this
clarification.
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
Cash Deposit Requirements
The following cash deposit
requirements will be effective for all
shipments of the subject merchandise
entered, or withdrawn from warehouse,
for consumption on or after the
publication date of the final results of
this administrative review, as provided
by section 751(a)(2)(C) of the Act: (1)
The cash deposit rate for SeAH will be
that established in the final results of
this review, except if the rate is less
than 0.50 percent and, therefore, de
minimis within the meaning of 19 CFR
351.106(c)(1), in which case the cash
deposit rate will be zero; (2) for
previously reviewed or investigated
companies not participating in this
review, the cash deposit rate will
continue to be the company-specific rate
published for the most recent period; (3)
if the exporter is not a firm covered in
this review, or the original less-thanfair-value (LTFV) investigation, but the
manufacturer is, the cash deposit rate
will be the rate established for the most
recent period for the manufacturer of
the merchandise; and 4) the cash
deposit rate for all other manufacturers
or exporters will continue to be 7.00
percent, the all-others rate made
effective by the LTFV investigation. See
Amended Final Determination and
Order, 60 FR 10061, 10065 (Feb. 23,
1995). These deposit requirements,
when imposed, shall remain in effect
until further notice.
VerDate Nov<24>2008
14:42 Jan 06, 2010
Jkt 220001
Disclosure and Public Hearing
DEPARTMENT OF COMMERCE
The Department will disclose to
parties the calculations performed in
connection with these preliminary
results within five days of the date of
publication of this notice. See 19 CFR
351.224(b). Pursuant to 19 CFR
351.309(c), interested parties may
submit cases briefs not later than 30
days after the date of publication of this
notice. Rebuttal briefs, limited to issues
raised in the case briefs, may be filed
not later than five days after the date for
filing case briefs. See 19 CFR
351.309(d). Parties who submit case
briefs or rebuttal briefs in this
proceeding are encouraged to submit
with each argument: (1) A statement of
the issue; (2) a brief summary of the
argument; and (3) a table of authorities.
See 19 CFR 351.309(c)(2) and (d)(2).
Pursuant to 19 CFR 351.310(c),
interested parties who wish to request a
hearing, or to participate if one is
requested, must submit a written
request to the Assistant Secretary for
Import Administration, Room 1870,
within 30 days of the date of publication
of this notice. Requests should contain:
(1) The party’s name, address and
telephone number; (2) the number of
participants; and (3) a list of issues to be
discussed. Issues raised in the hearing
will be limited to those raised in the
respective case briefs. The Department
will issue the final results of this
administrative review, including the
results of its analysis of the issues raised
in any written briefs, not later than 120
days after the date of publication of this
notice, pursuant to section 751(a)(3)(A)
of the Act.
977
International Trade Administration
Notification to Importers
This notice also serves as a
preliminary reminder to importers of
their responsibility under 19 CFR
351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
of the relevant entries during this
review period. Failure to comply with
this requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of double antidumping duties.
This administrative review and notice
are published in accordance with
sections 751(a)(1) and 777(i) of the Act
and 19 CFR 351.221(b)(4).
Dated: December 31, 2009.
Susan Kuhbach,
Senior Director, Office 1, Antidumping and
Countervailing Duty Operations.
[FR Doc. 2010–29 Filed 1–6–10; 8:45 am]
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Carbazole Violet Pigment 23 From
India: Preliminary Results of
Countervailing Duty Administrative
Review
AGENCY: Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) is conducting an
administrative review of Alpanil
Industries, Ltd. (Alpanil) under the
countervailing duty order on carbazole
violet pigment 23 (CVP–23) from India
for the period January 1, 2007, through
December 31, 2007. We preliminarily
determine that subsidies are being
provided to Alpanil on the production
and export of CVP–23 from India. See
‘‘Preliminary Results of Administrative
Review’’ section, below. If the final
results remain the same as the
preliminary results of this review, we
will instruct U.S. Customs and Border
Protection (CBP) to assess
countervailing duties. Interested parties
are invited to comment on the
preliminary results of this
administrative review. See the ‘‘Public
Comment’’ section below.
DATES: Effective Date: January 7, 2010.
FOR FURTHER INFORMATION CONTACT: Elfi
Blum or Myrna Lobo, AD/CVD
Operations, Office 6, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–0197 or (202) 482–
2371, respectively.
SUPPLEMENTARY INFORMATION:
Background
On December 29, 2004, the
Department published in the Federal
Register the countervailing duty (CVD)
order on CVP–23 from India. See Notice
of Countervailing Duty Order: Carbazole
Violet Pigment 23 from India, 69 FR
77995 (December 29, 2004) (CVP–23
Order). On December 1, 2008, the
Department published in the Federal
Register a notice of opportunity to
request an administrative review of this
order. See Antidumping or
Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity
to Request Administrative Review, 73
FR 72764 (December 1, 2008).
On December 30, 2008, the
Department received a timely request to
conduct an administrative review from
Alpanil, an Indian producer and
E:\FR\FM\07JAN1.SGM
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Agencies
[Federal Register Volume 75, Number 4 (Thursday, January 7, 2010)]
[Notices]
[Pages 973-977]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-29]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-810]
Certain Welded Stainless Steel Pipes From the Republic of Korea:
Preliminary Results of Antidumping Duty Administrative Review
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 certain welded
stainless steel pipes (WSSP) from the Republic of Korea (Korea) for the
period of review (POR) December 1, 2007 through November 30, 2008. The
review covers one respondent, SeAH Steel Corporation (SeAH).
We preliminarily determine that sales made by SeAH have been made
at below normal value (NV). If the preliminary results are adopted in
our final results of administrative review, we will instruct U.S.
Customs and Border Protection (CBP) to assess antidumping duties on
entries of SeAH's merchandise during the POR. Interested parties are
invited to comment on the preliminary results.
DATES: Effective Date: January 7, 2010.
FOR FURTHER INFORMATION CONTACT: Holly Phelps or Elizabeth Eastwood,
AD/CVD Operations, Office 2, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
0656 or (202) 482-3874, respectively.
SUPPLEMENTARY INFORMATION:
Background
In December 1992, the Department published in the Federal Register
an antidumping duty order on certain WSSP from Korea. See Antidumping
Duty Order and Clarification of Final Determination: Certain Welded
Stainless Steel Pipes from Korea, 57 FR 62301 (Dec. 30, 1992), as
amended in Notice of Amended Final Determination and Antidumping Duty
Order: Certain Welded Stainless Steel Pipe from the Republic of Korea,
60 FR 10064 (Feb. 23, 1995) (Amended Final Determination and Order). On
December 1, 2008, the Department published in the Federal Register a
notice of opportunity to request an administrative review of the
antidumping duty order of WSSP from Korea for the period December 1,
2007, through November 31, 2008. See Antidumping or Countervailing Duty
Order, Finding, or Suspended Investigation; Opportunity To Request
Administrative Review, 73 FR 72764 (Dec. 1, 2008).
On December 29, 2008, the Department received a timely request from
SeAH, in accordance with section 751(a)(1) of the Tariff Act of 1930,
as amended (the Act), and 19 CFR 351.213(b), for an administrative
review of the antidumping duty order on WSSP from Korea. On February 2,
2009, the Department published, in the Federal Register, the notice of
initiation of the administrative review of the antidumping duty order
on WSSP from Korea for SeAH. See Initiation of Antidumping and
Countervailing Duty Administrative Reviews and Requests for Revocation
in Part, 74 FR 5821 (Feb. 2, 2009).
In February 2009, the Department issued the antidumping duty
questionnaire to SeAH. SeAH timely submitted its response to section A
of the questionnaire (i.e., the section relating to general information
about the company) on March 20, 2009, and its responses to sections B
through D of its questionnaires (i.e., the sections relating to sales
to the home and U.S. markets and cost information) on April 20, 2009.
In August 2009, in accordance with section 751(a)(3)(A) of the Act
and 19 CFR 351.212(h)(2), we extended the deadline for the preliminary
results of this review by 120 days until no later than December 31,
2009. See Welded
[[Page 974]]
ASTM A-312 Stainless Steel Pipe from the Republic of Korea: Extension
of Time Limit for Preliminary Results of Antidumping Duty
Administrative Review, 74 FR 39045 (Aug. 5, 2009).
During the period August 2009 through December 2009, we issued
supplemental questionnaires to SeAH. We received responses to these
questionnaires from September 2009 through December 2009.
Scope of the Order
The merchandise subject to the antidumping duty order is welded
austenitic stainless steel pipe that meets the standards and
specifications set forth by the American Society for Testing and
Materials (ASTM) for the welded form of chromium-nickel pipe designated
ASTM A-312. The merchandise covered by the scope of the order also
includes austenitic welded stainless steel pipes made according to the
standards of other nations which are comparable to ASTM A-312.
WSSP is produced by forming stainless steel flat-rolled products
into a tubular configuration and welding along the seam. WSSP is a
commodity product generally used as a conduit to transmit liquids or
gases. Major applications for steel pipe include, but are not limited
to, digester lines, blow lines, pharmaceutical lines, petrochemical
stock lines, brewery process and transport lines, general food
processing lines, automotive paint lines, and paper process machines.
Imports of WSSP are currently classifiable under the following
Harmonized Tariff Schedule of the United States (HTSUS) subheadings:
7306.40.5005, 7306.40.5015, 7306.40.5040, 7306.40.5065, and
7306.40.5085. Although these subheadings include both pipes and tubes,
the scope of the antidumping duty order is limited to welded austenitic
stainless steel pipes. The HTSUS subheadings are provided for
convenience and customs purposes. However, the written description of
the scope of the order is dispositive.
Normal Value Analysis
In accordance with section 777A(d)(2) of the Act, to determine
whether sales of WSSP from Korea were made in the United States at less
than NV, we compared the constructed export price (CEP) to the NV, as
described in the ``Constructed Export Price'' and ``Normal Value''
sections of this notice.
Product Comparisons
When making comparisons in accordance with section 771(16) of the
Act, we considered all products sold by the respondent in the home
market during the POR as described in the ``Scope of the Order''
section of this notice, above, that were in the ordinary course of
trade for purposes of determining appropriate product comparisons to
U.S. sales.
In accordance with section 771(16)(A) of the Act, we first
attempted to compare products produced by the same company and sold in
the U.S. and home markets that were identical with respect to the
following characteristics: Specification and grade, hot or cold finish,
size, wall thickness schedule, and end finish. Where there were no home
market sales of foreign like product that were identical in these
respects to the merchandise sold in the United States, in accordance
with section 771(16)(B) and (C) of the Act, we compared U.S. products
with the most similar merchandise sold in the home market based on the
characteristics listed above, in that order of priority.
Constructed Export Price
Pursuant to section 772(b) of the Act, for sales to the United
States, we preliminarily determine that all of SeAH's U.S. sales are
CEP sales because all sales of subject merchandise to the United States
were made by Pusan Pipe America (PPA), SeAH's U.S. sales subsidiary, to
an unaffiliated customer in the United States. We based CEP on the
packed prices charged to the first unaffiliated customer in the United
States. To establish CEP, where appropriate, we made net price
adjustments, as defined by 19 CFR 351.102(b)(38), to PPA's starting
price to account for early payment discounts, pursuant to 19 CFR
351.401(c). We made deductions for movement expenses, in accordance
with section 772(c)(2) of the Act; these adjustments included, where
appropriate, foreign inland freight expenses, foreign brokerage and
handling expenses, ocean freight expenses, marine insurance, U.S.
brokerage and handling expenses, and U.S. customs duties. For further
discussion of the changes made to SeAH's reported U.S. sales data, see
the December 31, 2009, memorandum from Holly Phelps, Analyst, to the
File, entitled ``Calculations Performed for SeAH Steel Corporation for
the Preliminary Results in the 2007-2008 Antidumping Duty
Administrative Review of Certain Welded Stainless Steel Pipe from
Korea'' (SeAH Prelim Calc Memo).
In accordance with sections 772(d)(1) and (2) of the Act, we also
deducted, where applicable, those selling expenses associated with
economic activities occurring in the United States, including U.S.
direct selling expenses (i.e., warranty and imputed credit expenses),
and indirect selling expenses (including inventory carrying costs and
other indirect selling expenses incurred in the United States).
Pursuant to section 772(d)(3) of the Act, we further reduced the
starting price by an amount for profit to arrive at CEP. In accordance
with section 772(f) of the Act and 19 CFR 351.402(d), we calculated the
CEP profit rate using the expenses incurred by SeAH and its U.S.
affiliate on their sales of the subject merchandise in the United
States and the profit associated with those sales.
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,
in the ordinary course of trade, and, to the extent practicable, at the
same level of trade (LOT) as the CEP sale. See ``Level of Trade''
section, below. After testing home market viability and whether home
market sales were at below-cost prices, we calculated NV for SeAH as
discussed in the following sections.
A. Home Market Viability and Selection of Comparison Markets
In order to determine whether there is a sufficient volume of sales
in the home market to serve as a viable basis for calculating NV (i.e.,
the aggregate volume of home market sales of the foreign like product
is five percent or more of the aggregate volume of U.S. sales), we
compared the volume of SeAH's home market sales of the foreign like
product to the volume of U.S. sales of subject merchandise, in
accordance with section 773(a)(1)(B) of the Act. Based on this
comparison, we determined that SeAH had a viable home market during the
POR. Consequently, we based NV on home market sales, pursuant to
section 773(a)(1) of the Act and 19 CFR 351.404(b).
B. Affiliated-Party Transactions and Arm's-Length Test
During the POR SeAH made sales of WSSP in the home market to an
affiliated party, as defined in section 771(33) of the Act.
Consequently, we tested these sales to ensure that they were made at
arm's-length prices, in accordance with 19 CFR 351.403(c). To test
whether the sales to the affiliate were made at arm's-length prices, we
compared the unit prices of sales to affiliated and unaffiliated
customers net of all movement charges, direct selling expenses, and
packing expenses.
[[Page 975]]
Pursuant to 19 CFR 351.403(c) and in accordance with the Department's
practice, 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
LOT, we determined that the sales made to the affiliated party were at
arm's length. See Antidumping Proceedings: Affiliated Party Sales in
the Ordinary Course of Trade, 67 FR 69186 (Nov. 15, 2002) (establishing
that the overall ratio calculated for an affiliate must be between 98
and 102 percent, inclusive, of prices to unaffiliated customers in
order for sales to that affiliate to be considered in the ordinary
course of trade and used in the NV calculation). Sales to affiliated
customers in the home market that were not made at arm's-length prices
were excluded from our analysis because we considered these sales to be
outside the ordinary course of trade. See section 771(15) of the Act
and 19 CFR 351.102(b).
C. Level of Trade
In accordance with section 773(a)(1)(B)(i) of the Act, to the
extent practicable, we determine NV based on sales in the home market
at the same LOT as CEP. Sales are made at different LOTs if they are
made at different marketing stages (or their equivalent). See 19 CFR
351.412(c)(2). Substantial differences in selling activities are a
necessary, but not sufficient, condition for determining that there is
a difference in the stages of marketing. Id; 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, 61732 (Nov. 19,
1997) (Plate from South Africa). In order to determine whether the home
market sales were at different stages in the marketing process than the
U.S. sales, we reviewed the distribution system in each market (i.e.,
the chain of distribution), including selling functions, class of
customer (customer category), and the level of selling expenses for
each type of sale.
Pursuant to section 773(a)(1)(B)(i) of the Act, in identifying LOTs
for export price (EP) and comparison market sales (i.e., NV based on
either home market or third country prices),\1\ we consider the
starting prices before any adjustments. For CEP sales, we consider only
the selling activities reflected in the price after the deduction of
expenses and profit under section 772(d) of the Act. See Micron Tech.,
Inc. v. United States, 243 F.3d 1301, 1314-16 (Fed. Cir. 2001).
---------------------------------------------------------------------------
\1\ Where NV is based on constructed value (CV), we determine
the NV LOT based on the LOT of the sales from which we derive
selling expenses, general and administrative (G&A) expenses, and
profit for CV, where possible.
---------------------------------------------------------------------------
When the Department is unable to match U.S. sales of the foreign
like product in the comparison market at the same LOT as the EP or CEP,
the Department may compare the U.S. sale to sales at a different LOT in
the comparison market. In comparing EP or CEP sales at a different LOT
in the comparison market, where available data make it possible, we
make an LOT adjustment under section 773(a)(7)(A) of the Act. Finally,
for CEP sales only, if the NV LOT is at a more advanced stage of
distribution than the LOT of the CEP and there is no basis for
determining whether the difference in LOTs between NV and CEP affects
price comparability (i.e., no LOT adjustment was possible), the
Department shall grant a CEP offset, as provided in section
773(a)(7)(B) of the Act. See, e.g., Plate from South Africa, 62 FR at
61732-33.
In determining whether separate LOTs exist, we obtained information
from SeAH regarding the marketing stages for the reported U.S. and home
market sales, including a description of the selling activities
performed for each channel of distribution. Generally, if the reported
LOTs are the same, the functions and activities of the seller at each
level should be similar. Conversely, if a party reports that LOTs are
different for different groups of sales, the selling functions and
activities of the seller for each group should be dissimilar.
In the current review, SeAH reported that it made sales through a
single channel of distribution in the home market (i.e., direct sales
to affiliated and unaffiliated customers). SeAH reported performing the
following selling functions for its home market sales: Sales
negotiation, sales personnel training, sales promotion, order input/
processing, invoicing, collection of payment, sales forecasting, sales
marketing support, market research, freight/delivery, warehouse
operations, and inventory maintenance. These selling activities can be
generally grouped into three selling function categories for analysis:
(1) Sales and marketing; (2) freight and delivery; and (3) inventory
management.
Accordingly, based on the selling functions noted above, we find
that SeAH performed sales and marketing, freight and delivery services,
and inventory management services for home market sales. Because all
home market sales are made through a single distribution channel and
the selling activities to SeAH's customers do not vary within the
channel, we preliminarily determine that there is one LOT in the home
market for SeAH.
With respect to the United States, SeAH reported that it made sales
through one channel of distribution (i.e., CEP sales via an affiliated
reseller) and that the selling functions were performed at a lower
level of intensity than in the home market. We examined the selling
functions performed for U.S. sales and found that SeAH performed the
following selling functions: order input/processing, invoicing,
collection of payment, freight/delivery, and inventory maintenance.
These selling activities can be generally grouped into three selling
function categories for analysis: (1) Sales and marketing; (2) freight
and delivery; and (3) inventory management.
Accordingly, based on the selling functions, we find that SeAH
performed sales and marketing, freight and delivery services, warranty
and technical services, and inventory management for all U.S. sales.
Because all U.S. sales are made through a single distribution channel
and the selling activities to SeAH's affiliated reseller do not vary
within the channel, we preliminarily determine that there is one LOT to
the U.S. market for SeAH.
SeAH stated that its U.S. sales were made at a different, less
advanced LOT than its home market sales. SeAH is not seeking a LOT
adjustment, however, because it had only one LOT in the home market.
Instead, it claims that a CEP offset is warranted. As a result, we
compared the U.S. LOT to the home market LOT and found that the selling
functions performed for U.S. and home market customers differ, as SeAH
did not perform identical selling functions in both markets, and the
selling functions for sales in the home market are at a greater
intensity than for sales to the United States. Specifically, we
determine that differences in sales negotiation, sales personnel
training, warehousing, and advertising exist between sales to home
market and U.S. customers. See SeAH's September 10, 2009, section A
supplemental response at page 5 and Exhibit A-37.
In this case, because SeAH sold at one LOT in the home market,
there is no basis upon which to determine whether there is a pattern of
consistent price differences between LOTs. Therefore, we have not made
a LOT adjustment.
Instead, in accordance with section 773(a)(7)(B) of the Act, we
preliminarily determine that a CEP offset is appropriate to reflect
that SeAH's home market sales are at a more advanced stage than the LOT
of SeAH's CEP sales. We based the amount of the CEP offset on home
market indirect selling
[[Page 976]]
expenses and limited the deduction to the amount of the indirect
selling expenses deducted from CEP under section 772(d)(1)(D) of the
Act. We applied the CEP offset to the NV-CEP comparisons.
D. Cost of Production Analysis
Pursuant to section 773(b)(2)(A)(ii) of the Act, for SeAH there
were reasonable grounds to believe or suspect that SeAH made home
market sales at prices below its cost of production (COP) in this
review because the Department had disregarded sales that failed the
cost test for SeAH in the most recently completed segment of this
proceeding in which SeAH participated (i.e., the 1997-1998
administrative review) at the time of the initiation of this
administrative review. See Certain Welded ASTM A-312 Stainless Steel
Pipe from Korea: Preliminary Results of Antidumping Duty Administrative
Review, 64 FR 72645, 72647 (Dec. 28, 1999), unchanged in Certain Welded
ASTM A-312 Stainless Steel Pipe from the Republic of Korea; Final
Results of Antidumping Duty Administrative Review, 65 FR 30071 (May 10,
2000). As a result, the Department initiated an investigation to
determine whether SeAH made home market sales during the POR at prices
below their COPs.
1. Calculation of COP
In accordance with section 773(b)(3) of the Act, we calculated COP
based on the sum of SeAH's cost of materials and fabrication for the
foreign like product, plus amounts for G&A expenses and interest
expenses. See the ``Test of Home Market Sales Prices'' section below
for treatment of home market selling expenses.
We relied on the COP information provided by SeAH in its
questionnaire response, except for the following instances where the
information was not appropriately quantified or valued:
i. During the POR, SeAH purchased hot-rolled stainless steel coil
from a Korean affiliate, Pohang Iron and Steel Company (POSCO).
Stainless steel coil is a major input in the production of stainless
steel pipe. In accordance with section 773(f)(3) of the Act, we
evaluated transactions between SeAH and its affiliate using the
transfer price, COP, and market price of stainless steel coils. We
adjusted SeAH's reported costs to reflect the highest of these three
values for SeAH's purchases of stainless steel coil from POSCO.
ii. We adjusted the numerator of SeAH's G&A expense ratio to
include raw material and work-in-process inventory (WIP) valuation
losses. We also adjusted the denominator of the G&A expense ratio to
exclude these inventory valuation losses.
iii. We excluded the long-term interest income generated from
retirement and severance deposits from the calculation of the interest
expense ratio. We also adjusted the denominator of the financial
expense ratio to exclude raw material and WIP inventory valuation
losses.
iv. We replaced the negative labor cost reported for one product
(or ``control number'') with the labor cost of the most similar control
number.
For further discussion of these adjustments, see the memorandum
from Laurens van Houten, Accountant, to Neal M. Halper, Director,
Office of Accounting, entitled, ``Cost of Production and Constructed
Value Calculation Adjustments for the Preliminary Results--SeAH Steel
Corporation,'' dated December 31, 2009.
2. Test of Home Market Sales Prices
To determine whether SeAH's home market sales had been made at
prices below the COP, we computed weighted-average COPs during the POR,
and compared the weighted-average COP figures to home market sales
prices of the foreign like product as required under section 773(b) of
the Act. On a product-specific basis, we compared the COP to the home
market prices, net of billing adjustments, any applicable movement
charges, selling expenses, and packing expenses.
3. Results of the COP Test
Pursuant to sections 773(b)(1)(A) and (b)(2)(C)(i) of the Act,
where less than 20 percent of SeAH's sales of a given product were at
prices less than the COP, we did not disregard any below-cost sales of
that product because we determined that the below-cost sales were not
made in ``substantial quantities.'' Where 20 percent or more of SeAH's
sales of a given product were at prices below the COP, we determined
that sales of that model were made in ``substantial quantities'' within
an extended period of time (as defined in section 773(b)(2)(B) of the
Act), in accordance with section 773(b)(2)(C)(i) of the Act. In such
cases, we also determined that such sales were not made at prices which
would permit recovery of all costs within a reasonable period of time,
in accordance with section 773(b)(1)(B) and (b)(2)(D) of the Act.
Therefore, for purposes of this administrative review, we disregarded
these below-cost sales for SeAH and used the remaining sales as the
basis for determining NV, in accordance with section 773(a)(1) of the
Act.
E. Calculation of Normal Value
We calculated NV based on the starting prices to home market
customers. We made adjustments, where appropriate, to the starting
price for billing adjustments in accordance with 19 CFR 351.401(c). In
addition, where appropriate, we made deductions for inland freight
expenses, in accordance with section 773(a)(6)(B)(ii) of the Act.
Pursuant to section 773(a)(6)(C) of the Act, we made adjustments
for credit expenses. We made a CEP offset pursuant to section
773(a)(7)(B) of the Act and 19 CFR 351.412(f). We calculated the CEP
offset as the lesser of the indirect selling expenses on the home-
market sales or the indirect selling expenses deducted from the
starting price in calculating CEP. 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.
Finally, we made an adjustment to NV to account for differences in
physical characteristics of the merchandise, in accordance with section
773(a)(6)(C)(ii) of the Act and 19 CFR 351.411(a).
Currency Conversion
In accordance with section 773A of the Act, we made currency
conversions based on the official exchange rates in effect on the dates
of the U.S. sales as certified by the Federal Reserve Bank. See https://www.ia.ita.doc.gov/exchange/. See also 19 CFR 351.415.
Preliminary Results of the Review
We preliminarily determine that the following margin exists for
SeAH during the period December 1, 2007, through November 30, 2008:
------------------------------------------------------------------------
Percent
Manufacturer/producer/exporter margin
------------------------------------------------------------------------
SeAH Steel Corporation....................................... 5.15
------------------------------------------------------------------------
Assessment Rates
Upon completion of the administrative review, the Department shall
determine, and CBP shall assess, antidumping duties on all appropriate
entries. Pursuant to 19 CFR 351.212(b)(1), the Department calculates an
assessment rate for each importer of the subject merchandise for each
respondent. In accordance with 19 CFR 351.212(b)(1), we will calculate
importer-specific assessment rates on the basis of the ratio of the
total amount of antidumping duties calculated for the examined sales
and the total entered value of the examined sales. These rates
[[Page 977]]
will be assessed uniformly on all entries of the respective importers
made during the POR if these preliminary results are adopted in the
final results of review. The Department intends to issue appropriate
assessment instructions directly to CBP 15 days after the date of
publication of the final results of this review.
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 POR produced by SeAH for which SeAH did not know
that the merchandise it sold to the intermediary (e.g., a reseller,
trading company, or exporter) was destined for the United States. In
such instances, we will instruct CBP to liquidate unreviewed entries at
the all-others rate if there is no rate for the intermediary involved
in the transaction. See Assessment Policy Notice for a full discussion
of this clarification.
Cash Deposit Requirements
The following cash deposit requirements will be effective for all
shipments of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the publication date of the
final results of this administrative review, as provided by section
751(a)(2)(C) of the Act: (1) The cash deposit rate for SeAH will be
that established in the final results of this review, except if the
rate is less than 0.50 percent and, therefore, de minimis within the
meaning of 19 CFR 351.106(c)(1), in which case the cash deposit rate
will be zero; (2) for previously reviewed or investigated companies not
participating in this review, the cash deposit rate will continue to be
the company-specific rate published for the most recent period; (3) if
the exporter is not a firm covered in this review, or the original
less-than-fair-value (LTFV) investigation, but the manufacturer is, the
cash deposit rate will be the rate established for the most recent
period for the manufacturer of the merchandise; and 4) the cash deposit
rate for all other manufacturers or exporters will continue to be 7.00
percent, the all-others rate made effective by the LTFV investigation.
See Amended Final Determination and Order, 60 FR 10061, 10065 (Feb. 23,
1995). These deposit requirements, when imposed, shall remain in effect
until further notice.
Disclosure and Public Hearing
The Department will disclose to parties the calculations performed
in connection with these preliminary results within five days of the
date of publication of this notice. See 19 CFR 351.224(b). Pursuant to
19 CFR 351.309(c), interested parties may submit cases briefs not later
than 30 days after the date of publication of this notice. Rebuttal
briefs, limited to issues raised in the case briefs, may be filed not
later than five days after the date for filing case briefs. See 19 CFR
351.309(d). Parties who submit case briefs or rebuttal briefs in this
proceeding are encouraged to submit with each argument: (1) A statement
of the issue; (2) a brief summary of the argument; and (3) a table of
authorities. See 19 CFR 351.309(c)(2) and (d)(2).
Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, or to participate if one is requested, must submit a
written request to the Assistant Secretary for Import Administration,
Room 1870, within 30 days of the date of publication of this notice.
Requests should contain: (1) The party's name, address and telephone
number; (2) the number of participants; and (3) a list of issues to be
discussed. Issues raised in the hearing will be limited to those raised
in the respective case briefs. The Department will issue the final
results of this administrative review, including the results of its
analysis of the issues raised in any written briefs, not later than 120
days after the date of publication of this notice, pursuant to section
751(a)(3)(A) of the Act.
Notification to Importers
This notice also serves as a preliminary reminder to importers of
their responsibility under 19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this review period. Failure to comply
with this requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
This administrative review and notice are published in accordance
with sections 751(a)(1) and 777(i) of the Act and 19 CFR 351.221(b)(4).
Dated: December 31, 2009.
Susan Kuhbach,
Senior Director, Office 1, Antidumping and Countervailing Duty
Operations.
[FR Doc. 2010-29 Filed 1-6-10; 8:45 am]
BILLING CODE 3510-DS-P