[Federal Register Volume 64, Number 192 (Tuesday, October 5, 1999)]
[Notices]
[Pages 53994-53996]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-25873]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-412-810, C-412-811]
Certain Hot-Rolled Lead and Bismuth Carbon Steel Products From
the United Kingdom: Initiation and Preliminary Results of Changed-
Circumstances Antidumping and Countervailing Duty Administrative
Reviews
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of initiation and preliminary results of changed-
circumstances antidumping and countervailing duty administrative
reviews.
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SUMMARY: The Department of Commerce has received information sufficient
to warrant initiation of a changed-circumstances administrative review
of the antidumping and countervailing duty orders on hot-rolled lead
and
[[Page 53995]]
bismuth carbon steel products from the United Kingdom. Based on this
information, we preliminarily determine that Niagara LaSalle (UK)
Limited is the successor-in-interest to Glynwed Metals Processing
Limited for purposes of determining antidumping and countervailing duty
liability. Interested parties are invited to comment on these
preliminary results.
EFFECTIVE DATE: October 5, 1999.
FOR FURTHER INFORMATION CONTACT: Rebecca Trainor or Kate Johnson
(Antidumping) or Dana Mermelstein (Countervailing), Office of AD/CVD
Enforcement, Import Administration, International Trade Administration,
U.S. Department of Commerce, 14th Street and Constitution Avenue, N.W.,
Washington, D.C. 20230; telephone (202) 482-4007, (202) 482-4929, or
(202) 482-3208, respectively.
SUPPLEMENTARY INFORMATION:
The Applicable Statute
Unless otherwise indicated, all citations to the Tariff Act of
1930, as amended (the Act), are references to the provisions effective
January 1, 1995, the effective date of the amendments made to the Act
by the Uruguay Round Agreements Act (URAA). In addition, unless
otherwise indicated, all citations to the Department of Commerce's (the
Department's) regulations are to the regulations at 19 CFR Part 351
(April 1999).
Background
On March 22, 1993, the Department published in the Federal Register
the antidumping duty order on certain hot-rolled lead and bismuth
carbon steel products from the United Kingdom (58 FR 15324). Also, on
March 22, 1993, the Department published in the Federal Register the
companion countervailing duty order (58 FR 15327). On August 18, 1999,
Niagara LaSalle (UK) Limited (Niagara LaSalle UK) submitted a letter
stating that it is the successor-in-interest to Glynwed Metals
Processing Limited (Glynwed), and requested that the Department conduct
a changed-circumstances review to determine whether Niagara LaSalle UK
should receive the same antidumping and countervailing duty treatment
as is accorded Glynwed with respect to the subject merchandise. Niagara
LaSalle UK requested that the result of the Department's changed-
circumstances review be retroactive to May 21, 1999, the date of its
acquisition of Glynwed.
Scope of the Review
The products covered by this review are hot-rolled bars and rods of
nonalloy or other alloy steel, whether or not descaled, containing by
weight 0.03 percent or more of lead or 0.05 percent or more of bismuth,
in coils or cut lengths, and in numerous shapes and sizes. Excluded
from the scope of this review are other alloy steels (as defined by the
Harmonized Tariff Schedule of the United States (HTSUS) Chapter 72,
note 1 (f)), except steels classified as other alloy steels by reason
of containing by weight 0.4 percent or more of lead, or 0.1 percent or
more of bismuth, tellurium, or selenium. Also excluded are semi-
finished steels and flat-rolled products. Most of the products covered
in this review are provided for under subheadings 7213.20.00.00 and
7214.30.00.00 of the HTSUS. Small quantities of these products may also
enter the United States under the following HTSUS subheadings:
7213.31.30.00; 7213.31.60.00; 7213.39.00.30; 7213.39.00.60;
7213.39.00.90; 7213.91.30.00; 7213.91.45.00; 7213.91.60.00; 7213.99.00;
7214.40.00.10, 7214.40.00.30, 7214.40.00.50; 7214.50.00.10;
7214.50.00.30, 7214.50.00.50; 7214.60.00.10; 7214.60.00.30;
7214.60.00.50; 7214.91.00; 7214.99.00; 7228.30.80.00; and
7228.30.80.50. HTSUS subheadings are provided for convenience and
customs purposes. The written description of the scope of this
proceeding is dispositive.
Initiation and Preliminary Results of Review
In a letter dated August 18, 1999, Niagara LaSalle UK advised the
Department that, effective May 21, 1999, it had acquired Glynwed's
steelmaking businesses, including two that are involved in
manufacturing leaded steel subject to the antidumping and
countervailing duty orders: Dudley Port Rolling Mills (Dudley Port),
and George Gadd & Company (George Gadd). According to the submission,
Niagara LaSalle UK was created as a subsidiary of Niagara Corporation,
for the purpose of acquiring the assets of Glynwed's steel bar
businesses. Niagara Corporation, a U.S. company, also owns Niagara
LaSalle Corporation, a U.S. manufacturer of cold-finished steel bar. In
its submission, Niagara LaSalle UK states that it purchased Glynwed's
steel bar businesses as operating business units, and that all
personnel, operations and facilities remain essentially unchanged.
According to Niagara LaSalle UK, the only difference is that, on May
22, 1999, George Gadd and Dudley Port were combined to form a single
business unit called Gadd Dudley Port Steel (Gadd Dudley Port).
Thus, in accordance with section 751(b) of the Act, the Department
is initiating a changed-circumstances review to determine whether
Niagara LaSalle UK is the successor-in-interest to Glynwed for purposes
of determining antidumping and countervailing duty liability with
respect to the subject merchandise. In making such a successor-in-
interest determination, the Department examines several factors
including, but not limited to, changes in: (1) management; (2)
production facilities; (3) supplier relationships; and (4) customer
base. See, e.g., Brass Sheet and Strip from Canada: Final Results of
Antidumping Duty Administrative Review, 57 FR 20460 (May 13, 1992)
(Canadian Brass). While no single or several of these factors will
necessarily provide a dispositive indication, the Department will
generally consider the new company to be the successor to the previous
company if its resulting operation is not materially dissimilar to that
of its predecessor. See, e.g., Industrial Phosphoric Acid from Israel:
Final Results of Changed Circumstances Review, 59 FR 6944 (February 14,
1994), Canadian Brass, and Fresh and Chilled Atlantic Salmon from
Norway: Initiation and Preliminary Results of Changed Circumstances
Antidumping Duty Administrative Review, 63 FR 50880 (September 23,
1998). Thus, if the evidence demonstrates that, with respect to the
production and sale of the subject merchandise, the new company
operates as the same business entity as the former company, the
Department will accord the new company the same antidumping and
countervailing duty treatment as its predecessor.
We preliminarily determine that Niagara LaSalle UK is the
successor-in-interest to Glynwed, following its acquisition of Glynwed.
Niagara LaSalle UK submitted documentation supporting its claims that
its acquisition of Glynwed's steelmaking businesses resulted in no
significant changes in either production facilities, supplier
relationships, customer base, or management. This documentation
consisted of: (1) A letter from Niagara Corporation's president to all
employees of the Steel Bar Businesses emphasizing the intended
continuity in employment and operations; (2) the Sale of Business
Agreement, stating that the business is being sold as a going concern;
(3) a letter from Gadd Dudley Port to its suppliers shortly after the
change in ownership, assuring suppliers of its continued business; (4)
charts comparing the production facilities, billet suppliers, and
customers, both before and after the acquisition; and (5) a chart
comparing
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the companies' management structures and employees both before and
after the acquisition. These documents demonstrate that Glynwed's
consolidated leaded steel bar business was purchased as a going
concern, and its acquisition by Niagara LaSalle UK resulted in little
or no change in production operations, facilities, personnel, supplier
relationships and customer base, and that Niagara LaSalle UK's
management team consists entirely of former Glynwed managers. Because
Niagara LaSalle UK has presented evidence to establish a prima facie
case of its successorship status, we find it appropriate to issue the
preliminary results in combination with the notice of initiation in
accordance with 19 CFR 351.221(c)(3)(ii).
Thus, we preliminarily determine that Niagara LaSalle UK should
receive the same antidumping and countervailing duty treatment with
respect to certain hot-rolled lead and bismuth carbon steel products as
the former Glynwed. With regard to countervailing duties, Glynwed is
excluded from the countervailing duty order. Thus, if these preliminary
results are adopted in our final results of this changed circumstances
review, we will instruct the Customs Service to liquidate, without
regard to countervailing duties, all entries entered, or withdrawn from
warehouse, for consumption on or after May 21, 1999, the date of
Niagara LaSalle UK's acquisition of Glynwed. With regard to antidumping
duties, a cash deposit rate of 7.69 percent 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 changed circumstances review.
Public Comment
Any interested party may request a hearing within 10 days of
publication of this notice. Any hearing, if requested, will be held no
later than 21 days after the date of publication of this notice, or the
first workday thereafter. Case briefs from interested parties may be
submitted not later than 7 days after the date of publication of this
notice. Rebuttal briefs, limited to the issues raised in those
comments, may be filed not later than 14 days after the date of
publication of this notice. All written comments shall be submitted in
accordance with 19 CFR 351.303. Persons interested in attending the
hearing, if one is requested, should contact the Department for the
date and time of the hearing. The Department will publish the final
results of this changed circumstances review, including the results of
its analysis of issues raised in any written comments.
We are issuing and publishing this determination and notice in
accordance with sections 751(b)(1) and 777(i)(1) of the Act and section
351.216 of the Department's regulations.
Dated: September 29, 1999.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
[FR Doc. 99-25873 Filed 10-4-99; 8:45 am]
BILLING CODE 3510-DS-P
