[Federal Register Volume 62, Number 223 (Wednesday, November 19, 1997)]
[Notices]
[Pages 61751-61754]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30390]
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DEPARTMENT OF COMMERCE
[A-791-804]
Suspension of Antidumping Duty Investigation: Certain Cut-to-
Length Carbon Steel Plate From South Africa
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
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SUMMARY: The Department of Commerce (the Department) has suspended the
antidumping duty investigation involving certain cut-to-length carbon
steel plate (CTL plate) from South Africa. The basis for this action is
an agreement between the Department and Iscor Ltd. (Iscor) and Highveld
Steel and Vanadium Corporation Ltd. (Highveld) to revise their prices
to eliminate completely sales of this merchandise to the United States
at less than fair value.
EFFECTIVE DATE: October 24, 1997.
FOR FURTHER INFORMATION CONTACT: Charles Rast, Nancy Decker, or Linda
Ludwig, Office of AD/CVD Enforcement III, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th &
Constitution Avenue N.W., Washington, D.C. 20230; telephone (202) 482-
5811, (202) 482-0196, or (202) 482-3833, respectively.
SUPPLEMENTARY INFORMATION:
Background
On December 3, 1996, the Department initiated an antidumping
investigation under section 732 of the Tariff Act of 1930, (the Act),
as amended, to determine whether imports of CTL plate from South Africa
are being or are likely to be sold in the United States at less than
fair value (61 FR 64051 (December 3, 1996)). On December 19, 1996, the
United States International Trade Commission (ITC) notified the
Department of its affirmative preliminary injury determination (see ITC
Investigation Nos. 731-TA-753-756). On June 2, 1996, the Department
preliminarily determined that CTL plate is being, or is likely to be,
sold in the United States at less than fair value (LTFV), as provided
in section 733 of the Tariff Act of 1930, as amended by the Uruguay
Round Agreements Act (62 FR 31967 (June 11, 1997)).
The Department and Iscor and Highveld initialed a proposed
agreement suspending this investigation on September 25, 1997. On
September 26, 1997, we invited interested parties to provide written
comments on the agreement and received comments from Geneva Steel, Gulf
States Steel, Iscor and Highveld.
The Department and Iscor and Highveld signed the final suspension
agreement on October 24, 1997.
Scope of Investigation
See Notice of Final Determination of Sales at Less Than Fair Value:
Certain Cut-to-Length Carbon Steel Plate from South Africa, signed
October 24, 1997.
Suspension of Investigation
The Department consulted with the parties to the proceeding and has
considered the comments submitted with respect to the proposed
suspension agreement. In accordance with Section 734(b) of the Act, we
have determined that the agreement will completely eliminate sales at
less than fair value, that the agreement is in the public interest, and
that the agreement can be monitored effectively. See Public Interest
Memorandum, October 24, 1997. We find, therefore, that the criteria for
suspension of an investigation pursuant to section 734(b) of the Act
have been met. The terms and conditions of this agreement, signed
October 24, 1997, are set forth in Annex 1 to this notice.
Pursuant to section 734(f)(2)(A) of the Act, the suspension of
liquidation of all entries of cut-to-length carbon steel plate from
South Africa entered or withdrawn from warehouse, for consumption, as
directed in our Notice of Preliminary Determination of Sales at Less
Than Fair Value and Postponement of Final Determination: Certain Cut-
to-Length Carbon Steel Plate From South Africa is hereby terminated.
Any cash deposits on entries of cut-to-length carbon steel plate from
South Africa pursuant to that suspension of liquidation shall be
refunded and any bonds shall be released.
On October 14, 1997 we received a request from petitioners
requesting that
[[Page 61752]]
we continue the investigation. We received separate requests from the
United Steelworkers of America, Bethlehem Steel Corp., and U.S. Steel
Corp. (a unit of USX Corporation), interested parties under section
771(9)(D) of the Act. Pursuant to these requests, we have completed the
investigation in accordance with section 734(g) of the Act, and have
notified the International Trade Commission (ITC) of our determination.
If the ITC's injury determination is negative, the agreement will have
no force or effect, and the investigation will be terminated (see
section 734(f)(3)(A) of the Act). If the ITC's determination is
affirmative, the Department will not issue an antidumping duty order as
long as the suspension agreement remains in force (see section
734(f)(3)(B) of the Act).
This notice is published pursuant to section 734(f)(1)(A) of the
Act.
Dated: November 7, 1997.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
Appendix 1--Suspension Agreement Cut-to-Length Carbon Steel Plate From
the Republic South Africa
Under section 734(b) of the Tariff Act of 1930, as amended (19
U.S.C. 1673c(b)) (the Act), and 19 CFR 353.18, the U.S. Department
of Commerce (the Department) and the signatory producers/exporters
of cut-to-length carbon steel plate from the Republic of South
Africa enter into this suspension agreement (the Agreement). On the
basis of this suspension agreement, the Department shall suspend its
antidumping investigation initiated on December 3, 1996 (61 FR
64051), with respect to cut-to-length carbon steel plate from the
Republic of South Africa, subject to the terms and provisions forth
below.
(A) Product Coverage
The merchandise subject to this Agreement is the following
merchandise which has the Republic of South Africa as its origin:
(1) For purposes of the Agreement, cut-to-length carbon steel
plate includes hot-rolled iron and non-alloy steel universal mill
plates (i.e., flat-rolled products rolled on four faces or in a
closed box pass, of a width exceeding 150 mm but not exceeding 1250
mm and of a thickness of not less than 4 mm, not in coils and
without patterns in relief), of rectangular shape, neither clad,
plated nor coated with metal, whether or not painted, varnished, or
coated with plastics or other nonmetallic substances; and certain
iron and non-alloy steel flat-rolled products not in coils, of
rectangular shape, hot-rolled, neither clad, plated, nor coated with
metal, whether or not painted, varnished, or coated with plastics or
other nonmetallic substances, 4.75 mm or more in thickness and of a
width which exceeds 150 mm and measures at least twice the
thickness.
(2) Included as subject merchandise in this Agreement are flat-
rolled products of nonrectangular cross-section where such cross-
section is achieved subsequent to the rolling process (i.e.,
products which have been ``worked after rolling'')--for example,
products which have been beveled or rounded at the edges. This
merchandise is currently classified in the Harmonized Tariff
Schedule of the United States (HTS) under item numbers 7208.40.3030,
7208.40.3060, 7208.51.0030, 7208.51.0045, 7208.51.0060,
7208.52.0000, 7208.53.0000, 7208.90.0000, 7210.70.3000,
7210.90.9000, 7211.13.0000, 7211.14.0030, 7211.14.0045,
7211.90.0000, 7212.40.1000, 7212.40.5000, 7212.50.0000. Excluded
from subject merchandise within the scope of this agreement is grade
X-70 plate. Although the HTS subheadings are provided for
convenience and customs purposes, our written description of the
scope of this Agreement is dispositive.
(B) U.S. Import Coverage
The signatory producers/exporters collectively are the producers
and exporters in the Republic of South Africa that, during the
antidumping investigation on the merchandise subject to the
Agreement, accounted for substantially all (not less than 85
percent) of the subject merchandise imported into the United States,
as provided in the Department's regulations. The Department may at
any time during the period of the Agreement require additional
producers/exporters in the Republic of South Africa to sign the
Agreement in order to ensure that not less than substantially all
imports into the United States are covered by the Agreement.
In reviewing the operation of the Agreement for the purpose of
determining whether this Agreement has been violated or is no longer
in the public interest, the Department will consider imports into
the United States from all sources of the merchandise described in
Section A of the Agreement. For this purpose, the Department will
consider factors including, but not limited to, the following:
volume of trade, pattern of trade, whether or not the reseller is an
original equipment manufacturer, and the reseller's export price
(EP).
(C) Basis of the Agreement
On and after the effective date of the Agreement, each signatory
producer/exporter individually agrees to make any necessary price
revisions to eliminate completely any amount by which the normal
value (NV) of this merchandise exceeds the U.S. price of its
merchandise subject to the Agreement. For this purpose, the
Department will determine the NV in accordance with section 773(e)
of the Act and U.S. price in accordance with section 772 of the Act.
(1) For all sales occurring on and after the effective date of
the Agreement through March 31, 1998 (interim period), each
signatory producer/exporter agrees not to sell its merchandise
subject to the Agreement to unaffiliated purchasers in the United
States at prices that are less than its NV, as determined by the
Department, and provided to parties not later than November 7, 1997;
and
(2) For all sales occurring on and after April 1, 1998, each
producer/exporter agrees not to sell its merchandise subject to the
Agreement to any unaffiliated purchaser in the United States at
prices that are less than the NV of the merchandise, as determined
by the Department on the basis of information submitted to the
Department not later than the dates specified in section D of the
Agreement and provided to parties not later than December 10, March
10, June 10, and September 10 of each year. This NV shall apply to
sales occurring during the fiscal quarter beginning on the first day
of the month following the date the Department provides the NV, as
stated in this paragraph.
(D) Monitoring
Each signatory producer/exporter will supply to the Department
all information that the Department decides is necessary to ensure
that the producer/exporter is in full compliance with the terms of
the Agreement. As explained below, the Department will provide each
signatory producer/exporter a detailed request for information and
prescribe a required format and method of data compilation, not
later than the beginning of each reporting period.
(1) Sales Information
The Department will require each producer/exporter to report, on
computer tape in the prescribed format and using the prescribed
method of data compilation, each sale of the merchandise subject to
the Agreement, either directly or indirectly to unaffiliated
purchasers in the United States, including each adjustment
applicable to each sale, as specified by the Department.
The first report of sales data shall be submitted to the
Department, on computer tape in the prescribed format and using the
prescribed method of data compilation, not later than January 31,
1998, and shall contain the specified sales information covering the
period October 24, 1997, to December 31, 1997. Subsequent reports of
sales data shall be submitted to the Department not later than
January 31, April 30, July 31, and October 31 of each year, and each
report shall contain the specified sales information for the
quarterly period ending one month prior to the due date, except that
if the Department receives information that a possible violation of
the Agreement may have occurred, the Department may request sales
data on a monthly, rather than quarterly basis.
(2) Cost Information
Producer/exporters must request NVs for all subject merchandise
that will be sold in the United States. For those products which the
producer/exporter is requesting NVs, the Department will require
each producer/exporter to report: their actual cost of
manufacturing; selling, general and administrative (SG&A) expenses;
and profit data on a quarterly basis, in the prescribed format and
using the prescribed method of data compilation. As indicated in
Appendix B, profit will be reported by the producers/exporters on a
quarterly basis. Each such producer/exporter also must report
anticipated increases in production costs and may report anticipated
decreases in production costs in the quarter in which the
information is submitted resulting from factors such as anticipated
changes in
[[Page 61753]]
production yield, changes in production process, changes in
production quantities or changes in production facilities.
The first report of cost data for the post-interim period shall
be submitted to the Department not later than January 20, 1998, and
shall contain the specified cost data covering the period October 1,
1997, through December 31, 1997. Each subsequent report shall be
submitted to the Department not later than January 20, April 20,
July 20, and October 20 of each year, and each report shall contain
specified information for the quarter ending one month prior to the
due date.
(3) Special Adjustment of Normal Value
If the Department determines that the NV it determined for a
previous quarter was erroneous because the reported costs for that
period were inaccurate or incomplete, or for any other reason, the
Department may adjust NV in a subsequent period or periods, unless
the Department determines that Section F of the Agreement applies.
(4) Verification
Each producer/exporter agrees to permit full verification of all
cost and sales information semi-annually, or more frequently, as the
Department deems necessary.
(5) Bundling or Other Arrangements
Producers/exporters agree not to circumvent the Agreement. In
accordance with the date set forth in Section D(1) of the Agreement,
producers/exporters will submit a written statement to the
Department certifying that the sales reported herein were not, or
are not part of or related to, any bundling arrangement, on-site
processing arrangement, discounts/free goods/financing package, swap
or other exchange where such arrangement is designed to circumvent
the basis of the Agreement.
Where there is reason to believe that such an arrangement does
circumvent the basis of the Agreement, the Department will request
producers/exporters to provide within 15 days all particulars
regarding any such arrangement, including, but not limited to, sales
information pertaining to covered and non-covered merchandise that
is manufactured or sold by producers/exporters. The Department will
accept written comments, not to exceed 30 pages, from all parties no
later than 15 days after the date of receipt of such producer/
exporter information.
If the Department, after reviewing all submissions, determines
that such arrangement circumvents the basis of the Agreement, it
may, as it deems most appropriate, utilize one of two options: (1)
the amount of the effective price discount resulting from such
arrangement shall be reflected in the NV in accordance with Section
D(3), or (2) the Department shall determine that the Agreement has
been violated and take action according to the provisions under
Section F.
(6) Rejection of Submissions
The Department may reject any information submitted after the
deadlines set forth in this section or any information which it is
unable to verify to its satisfaction. If information is not
submitted in a complete and timely fashion or is not fully
verifiable, the Department may calculate normal value, NV, and/or
U.S. price based on facts otherwise available, as it determines
appropriate, unless the Department determines that Section F
applies.
(E) Disclosure and Comment
(1) The Department may make available to representatives of each
domestic party to the proceeding, under appropriately drawn
administrative protective orders, business proprietary information
submitted to the Department during reporting period as well as the
results of its analysis under section 773 of the Act.
(2) Not later than February 20, May 20, August 20, and November
20 of each year, the Department will disclose to each producer/
exporter the results and the methodology of the Department's
calculations of its NV. At that time, the Department may also make
available such information to the domestic parties to the
proceeding, in accordance with this section.
(3) Not later than 7 days after the date of disclosure under
paragraph E(2), the parties to the proceeding may submit written
comments to the Department, not to exceed 15 pages. After reviewing
these submissions, the Department will provide to each producer/
exporter its NV as provided in paragraph C(2). In addition, the
Department may provide such information to domestic interested
parties as specified in this section.
(F) Violations of the Agreement
If the Department determines that the Agreement is being or has
been violated or no longer meets the requirements of section 734(b)
or (d) of the Act, the Department shall take action it determines
appropriate under section 734(i) of the Act and the regulations. In
the event that the Department determines that the investigation
shall be resumed, it will be resumed on the basis of the original
administrative record, and the statutes, regulations, policies, and
practices in effect on the effective date of the Agreement.
(G) Other Provision
In entering into the Agreement, the signatory producers/
exporters do not admit that any sales of the merchandise subject to
the Agreement have been made at less than fair value.
(H) Termination
The Department will not consider requests for termination of
this suspended investigation prior to October 2002. Termination will
be conducted in accordance with section 351.222 of the Department's
regulations.
Any producer/exporter may terminate the Agreement at any time
upon notice to the Department. Termination shall be effective 60
days after such notice is given to the Department. Upon termination,
the Department shall follow the procedures outlined in section
734(i)(1) of the Act.
(I) Definitions
For purposes of the Agreement, the following definitions apply:
(1) U.S. PRICE--means the export price or constructed export
price at which merchandise is sold by the producer or exporter to
the first unaffiliated person in the United States, including the
amount of any discounts, rebates, price protection or ship and debit
adjustments, and other adjustments affecting the net amount paid or
to be paid by the unaffiliated purchaser, as determined by the
Department under section 772 of the Act.
(2) NORMAL VALUE--means the constructed value (CV) of the
merchandise, as determined by the Department under section 773 of
the Act and the corresponding sections of the Department's
regulations, and as adjusted in accordance with Appendix A to this
Agreement.
(3) PRODUCER/EXPORTER--means (1) the foreign manufacturer or
producer, (2) the foreign producer or reseller which also exports,
and (3) the affiliated person by whom or for whose account the
merchandise is imported into the United States, as defined in
section 771(28) of the Act.
(4) DATE OF SALE--means normally the date of the invoice as
recorded in the exporter or producer's records kept in the ordinary
course of business, unless the Department determines that a
different date better reflects the date on which the exporter or
producer establishes the material terms of sale, as determined by
the Department under its regulations.
The effective date of the Agreement is October 24, 1997.
For the Republic of South African Producers/Exporters
Iscor Ltd.
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Marcela B. Stras, Esq., Adduci, Mastriani & Schaumberg, LLP
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Date
Highveld Steel and Vanadium Corp. Ltd.
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Jeff Chegwidden, Director & General Manager Marketing
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Date
For U.S. Department of Commerce
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Robert S. LaRussa, Assistant Secretary for Import Administration
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Date
Appendix A--Cut-to-Length Carbon Steel Plate From the Republic of South
Africa Principles of Cost
General Framework
The cost information reported to the Department that will form
the basis of the NV calculations for purposes of the Agreement must
be:
Comprehensive in nature and based on a reliable
accounting system (i.e., a system based on well-established
standards that can be tied to the audited financial statements);
Representative of the company's costs incurred for the
general class of merchandise;
Calculated on a quarterly weighted-average basis of the
plants or cost centers manufacturing the product;
Based on fully-absorbed costs of production, including
any downtime;
[[Page 61754]]
Valued in accordance with generally accepted accounting
principles;
Reflective of appropriately allocated common costs so
that the costs necessary for the manufacturing of the product are
not absorbed by other products; and
Reflective of the actual cost of producing the product.
Additionally, a single figure should be reported for each cost
component.
Cost of Manufacturing (COM)
Costs of manufacturing are reported by major cost category and
for major stages of production. Weighted-average costs are used for
a product that is produced at more than one facility, based on the
cost at each facility.
Direct materials--cost of those materials which are input into
the production process and physically become part of the final
product.
Direct labor--cost identified with a specific product. These
costs are not allocated among products except when two or more
products are produced at the same cost center. Direct labor costs
should include salary, bonus and overtime pay, training expenses,
and all fringe benefits. Any contracted-labor expense should reflect
the actual billed cost or the actual costs incurred by the
subcontractor when the corporation has influence over the
contractor.
Factory overhead--overhead costs include indirect materials,
indirect labor, depreciation, and other fixed and variable expenses
attributable to a production line or factory. Because overhead costs
are typically incurred for an entire production line, an appropriate
portion of those costs must be allocated to covered products, as
well as any other products produced on that line. Acceptable cost
allocations can be based on labor hours or machine hours. Overhead
costs should also reflect any idle or downtime and be fully absorbed
by the products.
Cost of Production (COP)
Is equal to the sum of materials, labor, and overhead (COM) plus
SG&A expenses in the home market (HM).
SG&A--those expenses incurred for the operation of the
corporation as a whole and not directly related to the manufacture
of a particular product. They include corporate general and
administrative expenses, financing expenses, and general research
and development expenses. Additionally, direct and indirect selling
expenses incurred in the HM for sales of the product under
investigation are included. Such expenses are allocated over cost of
goods sold.
Constructed Value
Is equal to the sum of materials, labor and overhead (COM) and
SG&A expenses plus profit in the comparison market and the cost of
packing for exportation to the United States.
Calculation of Suspension Agreement NVs
NVs (for purposes of the Agreement) are calculated by adjusting
the CV and are provided for both EP and CEP transactions. In effect,
any expenses uniquely associated with the covered products sold in
the HM are subtracted from the CV, and any such expenses which are
uniquely associated with the covered products sold in the United
States are added to the CV to calculate the NV.
Export Price--Generally, a U.S. sale is classified as an export
price sale when the first sale to an unaffiliated person occurs
before the goods are imported into the United States. In cases where
the foreign manufacturer knows or has reason to believe that the
merchandise is ultimately destined for the United States, the
manufacturer's sale is the sale subject to review. If, on the other
hand, the manufacturer sold the merchandise to a foreign trader
without knowledge of the trader's intention to export the
merchandise to the United States, then the trader's first sale to an
unaffiliated person is the sale subject to review. For EP NVs, the
CV is adjusted for movement costs and differences in direct selling
expenses such as commissions, credit, warranties, technical
services, advertising, and sales promotion.
Constructed Export Price--Generally, a U.S. sale is classified
as a constructed export price sale when the first sale to an
unaffiliated person occurs after importation. However, if the first
sale to the unaffiliated person is made by a person in the United
States affiliated with the foreign exporter, constructed export
price applies even if the sale occurs prior to importation, unless
the U.S. affiliate performs only clerical functions in connection
with the sale. For CEP NVs, the CV is adjusted similar to EP sales,
with differences for adjustment to U.S. and HM indirect-selling
expenses.
Home market direct-selling expenses--expenses that are incurred
as a direct result of a sale. These include such expenses as
commissions, advertising, discounts and rebates, credit, warranty
expenses, freight costs, etc. Certain direct-selling expenses are
treated individually. They include:
commission expenses--payments to unaffiliated parties for sales in
the HM.
credit expenses--expenses incurred for the extension of credit to HM
customers.
movement expenses--freight, brokerage and handling, and insurance
expenses.
U.S. direct-selling expenses--the same as HM direct-selling
expenses except that they are incurred for sales in the United
States.
Movement expenses--additional expenses incidental to importation
into the United States. These typically include U.S. inland freight,
insurance, brokerage and handling expenses, U.S. Customs duties, and
international freight.
U.S. indirect-selling expenses--include general fixed expenses
incurred by the U.S. sales subsidiary or affiliated exporter for
sales to the United States. They may also include a portion of
indirect expenses incurred in the HM for export sales.
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FOR EP TRANSACTIONS
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+ direct materials
+ direct labor
+ factory overhead
= Cost of Manufacturing
+ home market SG&A
= Cost of Production
+ U.S. packing
+ Profit
= Constructed Value
+ U.S. direct selling expense
+ U.S. commission expense
+ U.S. movement expense
+ U.S. credit expense
- HM direct selling expense
- HM commission expense \1\
- HM credit expense
= NV for EP sales
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\1\ If the company does not have HM commissions, HM indirect expenses
are subtracted only up to the amount of the U.S. commissions.
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FOR CEP TRANSACTIONS
------------------------------------------------------------------------
+ direct materials
+ direct labor
+ factory overhead
= Cost of Manufacturing
+ home market SG&A
= Cost of Production
+ U.S. packing
+ profit
= Constructed Value
+ U.S. direct selling expense
+ U.S. indirect selling expense
+ U.S. commission expense
+ U.S. movement expense
+ U.S. credit expense
+ U.S. further manufacturing expenses (if
any)
+ CEP profit
- HM direct selling expense
- HM commission expense
- HM credit expense
= NV for CEP sales
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[FR Doc. 97-30390 Filed 11-18-97; 8:45 am]
BILLING CODE 3510-DS-P
