[Federal Register Volume 64, Number 219 (Monday, November 15, 1999)]
[Notices]
[Pages 61826-61833]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29762]
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DEPARTMENT OF COMMERCE
International Trade Administration
A-307-815
Notice of Preliminary Determination of Sales at Less Than Fair
Value: Certain Cold-Rolled Flat-Rolled Carbon-Quality Steel Products
From Venezuela
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: November 15, 1999.
FOR FURTHER INFORMATION CONTACT: Maureen McPhillips or Linda Ludwig,
Import Administration, International Trade Administration, U.S.
Department of Commerce, 14th Street and Constitution Avenue, N.W.,
Washington, DC, 20230; telephone: (202) 482-0193 or (202) 482-3833,
respectively.
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
(Department) regulations are to the regulations at 19 CFR Part 351,
(April, 1999).
Preliminary Determination
We preliminarily determine that cold-rolled flat-rolled carbon-
quality steel products (cold-rolled steel products) from Venezuela are
being, or are likely to be, sold in the United States at less than fair
value (LTFV), as provided in section 733 of the Act. The estimated
margin of sales at LTFV is shown in the ``Suspension of Liquidation''
section of this notice.
Case History
On June 21, 1999, the Department initiated antidumping duty
investigations of imports of certain cold-rolled flat-rolled carbon-
quality steel products from Argentina, Brazil, the People's Republic of
China, Indonesia, Japan, the Russian Federation, Slovakia, South
Africa, Taiwan, Thailand, Turkey, and Venezuela. See Notice of
Initiation of Antidumping Duty Investigations: Certain Cold-Rolled
Flat-Rolled Carbon-Quality Steel Products, 64 FR 34194 (June 25, 1999)
(Initiation Notice). Since the initiation of this investigation, the
following events have occurred:
On June 21, 1999, the Department invited interested parties to
submit comments on the proposed model match criteria. On June 28, 1999,
Bethlehem Steel Corporation, Gulf States Steel, Inc., Ispat Inland,
Inc., LTV Steel Company, Inc., National Steel Corporation, Steel
Dynamics, Inc., U.S. Steel Group, a unit of USX Corporation, Weirton
Steel Corporation, and United Steelworkers of America (collectively,
``petitioners'') stated that we should revise the category
``annealing'' to account more precisely for important differences in
processing, pricing, functions, and customer expectations. In addition,
petitioners recommended that the Department include an additional
category under ``QUALITY,'' for motor lamination steels. On June 22,
1999, the Department issued Section A of the antidumping duty
questionnaire to Sidor, the only known exporter of subject merchandise
in Venezuela. On July 9, 1999, the Department issued Sections B through
E to Sidor. On July 16, 1999, the United States International Trade
Commission (ITC) notified the Department of its affirmative preliminary
injury determination in this case. The Department received Sidor's
response to Section A of the questionnaire on July 20, 1999.
Petitioners filed comments on Sidor's response to Section A on August
3, 1999. The Department issued a supplemental questionnaire for Section
A on August 24, 1999 in order to clarify and/or correct the information
and data submitted in the original questionnaire. Sidor failed to
respond to Sections B through D of the questionnaire and the
Department's supplemental questionnaire for Section A.
The Department set aside a period for all interested parties to
raise issues regarding product coverage. From July through October
1999, the Department
[[Page 61827]]
received responses from a number of parties including importers,
respondents, consumers, and petitioners, aimed at clarifying the scope
of the investigation. See Memorandum to Joseph A. Spetrini, November 1,
1999 (Scope Memorandum) for a list of all persons submitting comments
and a discussion of all scope comments. There are several scope
exclusion requests for products which are currently covered by the
scope of this investigation that are still under consideration by the
Department. These items are considered to be within the scope for this
preliminary determination; however, these requests will be reconsidered
for the final determination. See Scope Memorandum.
Scope of Investigation
For purposes of this investigation, the products covered are
certain cold-rolled (cold-reduced) flat-rolled carbon-quality steel
products, neither clad, plated, nor coated with metal, but whether or
not annealed, painted, varnished, or coated with plastics or other non-
metallic substances, both in coils, 0.5 inch wide or wider, (whether or
not in successively superimposed layers and/or otherwise coiled, such
as spirally oscillated coils), and also in straight lengths, which, if
less than 4.75 mm in thickness having a width that is 0.5 inch or
greater and that measures at least 10 times the thickness; or, if of a
thickness of 4.75 mm or more, having a width exceeding 150 mm and
measuring at least twice the thickness. The products described above
may be rectangular, square, circular or other shape and include
products of either rectangular or non-rectangular 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.
Specifically included in this scope are vacuum degassed, fully
stabilized (commonly referred to as interstitial-free (``IF'')) steels,
high strength low alloy (``HSLA'') steels, and motor lamination steels.
IF steels are recognized as low carbon steels with micro-alloying
levels of elements such as titanium and/or niobium added to stabilize
carbon and nitrogen elements. HSLA steels are recognized as steels with
micro-alloying levels of elements such as chromium, copper, niobium,
titanium, vanadium, and molybdenum. Motor lamination steels contain
micro-alloying levels of elements such as silicon and aluminum.
Steel products included in the scope of this investigation,
regardless of definitions in the Harmonized Tariff Schedules of the
United States (``HTSUS''), are products in which: (1) Iron
predominates, by weight, over each of the other contained elements; (2)
the carbon content is 2 percent or less, by weight, and; (3) none of
the elements listed below exceeds the quantity, by weight, respectively
indicated:
1.80 percent of manganese, or
2.25 percent of silicon, or
1.00 percent of copper, or
0.50 percent of aluminum, or
1.25 percent of chromium, or
0.30 percent of cobalt, or
0.40 percent of lead, or
1.25 percent of nickel, or
0.30 percent of tungsten, or
0.10 percent of molybdenum, or
0.10 percent of niobium (also called columbium), or
0.15 percent of vanadium, or
0.15 percent of zirconium
All products that meet the written physical description, and in
which the chemistry quantities do not exceed any one of the noted
element levels listed above, are within the scope of this investigation
unless specifically excluded. The following products, by way of
example, are outside and/or specifically excluded from the scope of
this investigation:
SAE grades (formerly also called AISI grades) above 2300;
Ball bearing steels, as defined in the HTSUS;
Tool steels, as defined in the HTSUS;
Silico-manganese steel, as defined in the HTSUS;
Silicon-electrical steels, as defined in the HTSUS, that
are grain-oriented;
Silicon-electrical steels, as defined in the HTSUS, that
are not grain-oriented and that have a silicon level exceeding 2.25
percent;
All products (proprietary or otherwise) based on an alloy
ASTM specification (sample specifications: ASTM A506, A507);
Silicon-electrical steels, as defined in the HTSUS, that
are not grain-oriented and that have a silicon level less than 2.25
percent, and
(a) fully-processed, with a core loss of less than 0.14 watts/pound
per mil (.001 inches), or
(b) semi-processed, with core loss of less than 0.085 watts/pound
per mil (.001 inches);
Certain shadow mask steel, which is aluminum killed cold-
rolled steel coil that is open coil annealed, has an ultra-flat,
isotropic surface, and which meets the following characteristics:
Thickness: 0.001 to 0.010 inches
Width: 15 to 32 inches
Chemical Composition:
------------------------------------------------------------------------
------------------------------------------------------------------------
Element................................................ C
Weight %............................................... < 0.002%="" ------------------------------------------------------------------------=""> Certain flapper valve steel, which is hardened and
tempered, surface polished, and which meets the following
characteristics:
Thickness: 1.0 mm
Width: 152.4 mm
Chemical Composition
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Element........................... C Si Mn P S
Weight %.......................... 0.90-1.05 0.15-0.35 0.30-0.50 0.03 0.006
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Mechanical Properties
------------------------------------------------------------------------
------------------------------------------------------------------------
Tensile Strength....................... 162 Kgf/mm \2\.
Hardness............................... 475 Vickers
hardness number.
------------------------------------------------------------------------
[[Page 61828]]
Physical Properties
------------------------------------------------------------------------
------------------------------------------------------------------------
Flatness............................... < 0.2%="" of="" nominal="" strip="" width.="" ------------------------------------------------------------------------="" microstructure:="" completely="" free="" from="" decarburization.="" carbides="" are="" spheroidal="" and="" fine="" within="" 1%="" to="" 4%="" (area="" percentage)="" and="" are="" undissolved="" in="" the="" uniform="" tempered="" martensite.="" non-metallic="" inclusion="" ------------------------------------------------------------------------="" area="" percentage="" ------------------------------------------------------------------------="" sulfide="" inclusion.......................................="">
0.04
Oxide Inclusion.........................................
0.05
------------------------------------------------------------------------
Compressive Stress: 10 to 40 Kgf/mm \2\
Surface Roughness
------------------------------------------------------------------------
Thickness (mm) Roughness (m)
------------------------------------------------------------------------
t 0.209............................ Rz 0.5
0.209 < t=""> 0.310.................... Rz 0.6
0.310 < t=""> 0.440.................... Rz 0.7
0.440 < t=""> 0.560.................... Rz 0.8
0.560 < t......................................="" rz=""> 1.0
------------------------------------------------------------------------
Certain ultra thin gauge steel strip, which meets the
following characteristics:
Thickness: 0.100 mm +/-7%.
Width: 100 to 600 mm.
Chemical Composition
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--------------------------------------------------------------------------------------------------------------------------------------------------------
Element........................ C Mn P S Al Fe
Weight %....................... 0.07 0.2-0.5 0.05 0.05 0.07 Balance
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Mechanical Properties
------------------------------------------------------------------------
------------------------------------------------------------------------
Hardness............................... Full Hard (Hv 180 minimum).
Total Elongation....................... < 3%="" tensile="" strength.......................="" 600="" to="" 850="" n/mm="" \2\="" ------------------------------------------------------------------------="" physical="" properties="" ------------------------------------------------------------------------="" ------------------------------------------------------------------------="" surface="" finish.........................=""> 0.3 micron.
Camber (in 2.0 m)...................... < 3.0="" mm.="" flatness="" (in="" 2.0="" m)....................=""> 0.5 mm.
Edge Burr.............................. < 0.01="" mm="" greater="" than="" thickness.="" coil="" set="" (in="" 1.0="" m)....................="">< 75.0="" mm.="" ------------------------------------------------------------------------=""> Certain silicon steel, which meets the following
characteristics:
Thickness: 0.024 inches +/-.0015 inches.
Width: 33 to 45.5 inches.
Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
Element........................ C Mn P S Si Al
Min. Weight%................... ................... .................. .................. .................. 0.65 ..................
Max. Weight %................. 0.004 0.4 0.09 0.009 .................. 0.4.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Mechanical Properties
------------------------------------------------------------------------
------------------------------------------------------------------------
Hardness............................... B 60-75 (AIM 65).
------------------------------------------------------------------------
Physical Properties
------------------------------------------------------------------------
------------------------------------------------------------------------
Finish................................. Smooth (30--60 microinches).
Gamma Crown (in 5 inches).............. 0.0005 inches, start measuring
\1/4\ inch from slit edge.
[[Page 61829]]
Flatness............................... 20 I-UNIT max.
Coating.............................. C3A-.08A max. (A2 coating
acceptable).
Camber (in any 10 feet)................ \1/16\ inch.
Coil Size I.D.......................... 20 inches.
------------------------------------------------------------------------
Magnetic Properties
------------------------------------------------------------------------
------------------------------------------------------------------------
Core Loss (1.5T/60 Hz) NAAS............ 3.8 Watts/Pound max.
Permeability (1.5T/60 Hz) NAAS......... 1700 gauss/oersted typical 1500
minimum.
------------------------------------------------------------------------
Certain aperture mask steel, which has an ultra-flat
surface flatness and which meets the following characteristics:
Thickness: 0.025 to 0.245 mm.
Width: 381--1000 mm.
Chemical Composition
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Element...................... C N Al
Weight %..................... < 0.01="" 0.004="" to="" 0.007="">< 0.007="" ----------------------------------------------------------------------------------------------------------------=""> Certain tin mill black plate, annealed and temper-rolled,
continuously cast, which meets the following characteristics:
Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
Element...................... C Mn P S Si Al As Cu B N
Min. Weight %................ 0.02 0.20 ........... .......... .......... 0.03 .......... .......... ..... 0.003
Max. Weight %................ 0.06 0.40 0.02 0.023 0.03 0.08 0.02 0.08 ..... 0.008
(Aiming (Aiming (Aiming
0.018 0.05) 0.005)
Max.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Non-metallic Inclusions: Examination with the S.E.M. shall not
reveal individual oxides 1 micron (0.000039
inches) and inclusion groups or clusters shall not exceed 5 microns
(0.000197 inches) in length.
Surface Treatment as follows: The surface finish shall be free of
defects (digs, scratches, pits, gouges, slivers, etc.) and suitable for
nickel plating.
Surface Finish
----------------------------------------------------------------------------------------------------------------
Roughness, RA Microinches (Micrometers)
---------------------------------------------------------------------------
Aim Min. Max.
----------------------------------------------------------------------------------------------------------------
Extra Bright........................ 5(0.1) 0(0) 7(0.2)
----------------------------------------------------------------------------------------------------------------
Certain full hard tin mill black plate, continuously cast,
which meets the following characteristics:
Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
Element...................... C Mn P S Si Al As Cu B N
Min. Weight %................ 0.02 0.20 ........... .......... .......... 0.03 .......... .......... ..... 0.003
Max. Weight %................ 0.06 0.40 0.02 0.023 0.03 0.08 0.02 0.08 ..... 0.008
(Aiming (Aiming (Aiming
0.018 0.05) 0.005)
Max.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Non-metallic Inclusions: Examination with the S.E.M. shall not
reveal individual oxides > 1 micron (0.000039 inches) and inclusion
groups or clusters shall not exceed 5 microns (0.000197 inches) in
length.
Surface Treatment as follows: The surface finish shall be free of
defects (digs, scratches, pits, gouges, slivers, etc.) and suitable for
nickel plating.
Surface Finish
----------------------------------------------------------------------------------------------------------------
Roughness, RA Microinches (Micrometers)
---------------------------------------------------------------------------
Aim Min. Max.
----------------------------------------------------------------------------------------------------------------
Stone Finish........................ 16(0.4) 8(0.2) 24(0.6)
----------------------------------------------------------------------------------------------------------------
Certain ``blued steel'' coil (also know as ``steamed blue
steel'' or ``blue oxide'') with a thickness and size of 0.38 mm x 940
mm x coil, and with a bright finish;
Certain cold-rolled steel sheet, which meets the following
characteristics:
[[Page 61830]]
Thickness (nominal): 0.019 inches
Width: 35 to 60 inches
Chemical Composition
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Element............................. C O B
Max. Weight %....................... 0.004
Min. Weight %....................... ........................ 0.010 0.012
----------------------------------------------------------------------------------------------------------------
Certain band saw steel, which meets the following
characteristics: Thickness: 1.31 mm.
Width: 80 mm.
Chemical Composition
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Element........................ C Si Mn P S Cr Ni
Weight %....................... 1.2 to 1.3 0.15 to 0.35 0.20 to 0.35 0.03 0.007 0.3 to 0.5 0.25
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Other properties:
Carbide: fully spheroidized having > 80% of carbides, which are
0.003 mm and uniformly dispersed.
Surface finish: bright finish free from pits, scratches, rust,
cracks, or seams.
Smooth edges:
Edge camber (in each 300 mm of length): 7 mm arc
height.
Cross bow (per inch of width): 0.015 mm max.
The merchandise subject to this investigation is typically
classified in the HTSUS at subheadings: 7209.15.0000, 7209.16.0030,
7209.16.0060, 7209.16.0090, 7209.17.0030, 7209.17.0060, 7209.17.0090,
7209.18.1530, 7209.18.1560, 7209.18.2550, 7209.18.6000. 7209.25.0000,
7209.26.0000, 7209.27.0000, 7209.28.0000, 7209.90.0000, 7210.70.3000,
7210.90.9000, 7211.23.1500, 7211.23.2000, 7211.23.3000, 7211.23.4500,
7211.23.6030, 7211.23.6060, 7211.23.6085, 7211.29.2030, 7211.29.2090,
7211.29.4500, 7211.29.6030, 7211.29.6080, 7211.90.0000, 7212.40.1000,
7212.40.5000, 7212.50.0000, 7225.19.0000, 7225.50.6000, 7225.50.7000,
7225.50.8010, 7225.50.8085, 7225.99.0090, 7226.19.1000, 7226.19.9000,
7226.92.5000, 7226.92.7050, 7226.92.8050, and 7226.99.0000.
Although the HTSUS subheadings are provided for convenience and
U.S. Customs Service (``U.S. Customs'') purposes, the written
description of the merchandise under investigation is dispositive.
Period of Investigation
The period of this investigation (POI) is April 1, 1998 through
March 31, 1999.
Facts Available
Section 776(a)(2) of the Act provides that if an interested party
withholds information that has been requested by the Department, fails
to provide such information in a timely manner, or in the form
requested, significantly impedes a proceeding under the antidumping
statute, or provides information that cannot be verified, the
Department shall, subject to subsections 782(c)(1) and (e) of the Act,
use facts otherwise available in reaching the applicable determination.
Because Sidor failed to provide Section B (home market sales), Section
C (U.S. sales), and Section D (cost of production) information, we must
base its margin entirely on the facts otherwise available.
Sidor submitted a response to Section A of the Department's
questionnaire, but did not respond to Section B through D of the
questionnaire in a timely manner. We note that although Sidor requested
additional time to respond to these sections of our questionnaire, this
request was denied because it was made after the deadline for response
had already passed. See ``Letter to the Secretary of Commerce from
Counsel for Sidor'', August 31, 1999 and ``Letter to Counsel for Sidor
from the Department of Commerce'', September 3, 1999. In addition,
Sidor failed to respond to the Department's supplemental Section A
questionnaire of August 24, 1999. Because Sidor failed to respond to
the required sections of the antidumping duty questionnaire, the
Department finds the company has significantly impeded this
investigation. Consequently, under sections 776(a)(2)(B) and (C) of the
Act, the Department must use facts otherwise available in making its
determination.
In selecting from among the facts otherwise available, section
776(b) of the Act authorizes the Department to use an adverse inference
if the Department finds that a party has failed to cooperate by not
acting to the best of its ability to comply with requests for
information. See also Statement of Administrative Action (SAA)
accompanying the URAA, H.R. Rep. No. 316, 103d Cong, 2d Sess. at 870
(1994). Such adverse inference may include reliance on information
derived from the petition. To determine whether the respondent
``cooperated'' by ``acting to the best of its ability'' under section
776(b), the Department considers, among other facts, the accuracy and
completeness of submitted information and whether the respondent has
hindered the calculation of accurate dumping margins. See, e.g.,
Certain Welded Carbon Steel Pipes and Tubes from Thailand; Final
Results of Antidumping Duty Administrative Review, 62 FR 53808, 53819-
53820, (October 16, 1997); Brass Sheet and Strip from Germany; Final
Results of Antidumping Duty Administrative Review, 63 FR 42823-42824
(August 11, 1998).
Sidor's complete refusal to reply to the Department's requests for
home market and U.S. sales information and cost of production
information demonstrates that Sidor has failed to act to the best of
its ability in this investigation. Thus, the Department has determined
that, in selecting among the facts otherwise available, an adverse
inference is warranted with regard to Sidor. Consistent with Department
practice in cases in which a respondent fails to cooperate to the best
of its ability by refusing to respond to entire sections of the
questionnaire, and pursuant to section 776(b)(1) of the Act, as facts
available we have applied a margin based on the highest margin alleged
in the petition. See, e.g., Notice of Final Determination of Sales at
Less Than Fair Value: Certain Steel Concrete Reinforcing Bars From
Turkey, 62 FR 9737-9738 (March 4, 1997).
Section 776(c) of the Act requires the Department to corroborate,
to the extent practicable, secondary information used as facts
available. Secondary
[[Page 61831]]
information is described in the SAA (at 870) as ``[i]nformation derived
from the petition that gave rise to the investigation or review, the
final determination concerning the subject merchandise, or any previous
review under section 751 concerning the subject merchandise.''
The SAA further provides that ``corroborate'' means simply that the
Department will satisfy itself that the secondary information to be
used has probative value. See SAA at 870. Thus, to corroborate
secondary information, to the extent practicable, the Department will
examine the reliability and relevance of the information used.
During the Department's pre-initiation analysis of the petition, we
reviewed the adequacy and accuracy of the information in the petition,
to the extent appropriate information was available for this purpose
(e.g., import statistics, foreign market research reports, and data
from U.S. producers). See Notice of Initiation and ``Import
Administration AD Investigation Initiation Checklist,'' (June 21,
1999). The estimated dumping margins of the petitioners were based on
two price quotes from trading companies for sales to unaffiliated U.S.
purchasers and import values declared to the U.S. Customs compared to
two high and low ex-factory prices obtained from market research
consultants. The Department determined the adequacy and accuracy of the
information from which the petition margin was calculated by reviewing
all of the data presented and by requesting clarification and
confirmation from petitioners and their sources as needed. See
Attachment B to the Initiation Checklist and Memorandum to the File:
Telephone Conversation with Market Research Firm Regarding the Petition
for the Imposition of Antidumping Duties (June 21, 1999). In addition,
for purposes of this preliminary determination, the Department compared
the export prices alleged by petitioners, based on price quotations
obtained from trading companies, for sales to unaffiliated first
purchasers with the average unit values of U.S. imports classified
under the appropriate HTS number during the same months as the U.S.
sales.
We noted that the U.S. price quotes of the per unit values of the
subject merchandise derived by petitioners were well within the range
of the average unit values reported by U.S. Customs. U.S. official
import statistics are sources which we consider to require no further
corroboration by the Department. See Notice of Final Determination of
Sales at Less Than Fair Value: Collated Roofing Nails From the People's
Republic of China, 62 FR 51410, 51412 (October 1, 1997). The Department
was provided no information by the respondents or other interested
parties, and is aware of no other independent sources of information
that would enable it to corroborate home market prices further for this
preliminary determination. The implementing regulation to section 776
of the Act, at 19 CFR 351.308(d), states ``[t]he fact that
corroboration may not be practicable in a given circumstance will not
prevent the Secretary from applying an adverse inference as appropriate
and using the secondary information in question.'' We note also that
the SAA at 870 specifically states that, where ``corroboration may not
be practicable in a given circumstance'', the Department may
nevertheless apply an adverse inference. Based on the above, we find
that the estimated margins set forth in the petition have probative
value.
The All-Others Rate
The foreign manufacturer/exporter in this investigation is being
assigned a dumping margin on the basis of facts otherwise available.
Section 735(c)(5) of the Act provides that, where the dumping margins
established for all exporters and producers individually investigated
are determined entirely under section 776 of the Act, the Department
may use any reasonable method to establish the estimated all-others
rate for exporters and producers not individually investigated,
including weight averaging the zero, de minimis, and the margins based
on facts available. See also SAA at 873. In this case, the margin
assigned to the only company investigated is based on adverse facts
available. Therefore, consistent with the statute and the SAA, we are
using an alternative method. As our alternative, we are basing the all
others rate on a simple average of the margins in the petition. As a
result, the all others rate is 42.93 percent.
Critical Circumstances
On June 10, 1999, the petitioners made a timely allegation that
there is a reasonable basis to believe or suspect that critical
circumstances exist with respect to imports of subject merchandise from
Venezuela. According to section 733(e)(1) of the Act, if critical
circumstances are alleged under section 733(e) of the Act, the
Department must examine whether there is a reasonable basis to believe
or suspect that: (A)(i) There is a history of dumping and material
injury by reason of dumped imports in the United States or elsewhere of
the subject merchandise, or (ii) the person by whom, or for whose
account, the merchandise was imported knew or should have known that
the exporter was selling the subject merchandise at less than its fair
value and there was likely to be material injury by reason of such
sales, and (B) there have been massive imports of the subject
merchandise over a relatively short period. Section 351.206(h)(1) of
the Department's regulations provides that, in determining whether
imports of the subject merchandise have been ``massive,'' the
Department normally will examine: (i) The volume and value of the
imports; (ii) seasonal trends; and (iii) the share of domestic
consumption accounted for by the imports. In addition, section
351.206(h)(2) of the Department's regulations provides that an increase
in imports during the ``relatively short period'' described in section
351.206(i) of over 15 percent may be considered ``massive.'' Section
351.206(i) of the Department's regulations defines ``relatively short
period'' normally as the period beginning on the date the proceeding
begins (i.e., the date the petition is filed) and ending at least three
months later.
Because we are not aware of any antidumping order in any country on
cold-rolled steel products from Venezuela, we find that there is no
reasonable basis to believe or suspect that there is a history of
dumping and material injury by reason of dumped imports in the United
States or elsewhere of the subject merchandise. Therefore, we must look
to whether there was importer knowledge under section 733(e)(1)(A)(ii).
In determining whether there is a reasonable basis to believe or
suspect that an importer knew or should have known that the exporter
was selling the cold-rolled steel at less than fair value, the
Department's normal practice is to consider EP sales margins of 25
percent or more sufficient to impute knowledge of dumping. See Brake
and Brake Rotors From the People's Republic of China, 62 FR 9160, 9164
(February 28, 1997). As discussed above, we have applied, as adverse
facts available for Sidor, the highest of the dumping margins presented
in the petition and corroborated by the Department. Because this margin
is in excess of 25 percent, we impute knowledge of dumping in regard to
exports by Sidor. See Stainless Steel Sheet and Strip in Coils from
Japan, 64 FR 30574 (June 8, 1999).
Moreover, in determining whether there is a reasonable basis to
believe or suspect that an importer knew or should have known that
there was likely to be material injury by reason of dumped imports, the
Department may look to the
[[Page 61832]]
preliminary injury determination of the ITC. See Brake and Brake Rotors
from the PRC, 62 FR at 9164. If the ITC finds a reasonable indication
of present material injury to the relevant U.S. industry, the
Department normally determines that a reasonable basis exists to impute
importer knowledge that there was likely to be material injury by
reason of dumped imports. See Id. The ITC has found that a reasonable
indication of present material injury exists in regard to Venezuela.
See ITC Preliminary Determination. As a result, the Department has
determined that there is a reasonable basis to believe or suspect that
importers knew or should have known that there was likely to be
material injury by reason of dumped imports from Sidor.
In determining whether there are ``massive imports'' over a
``relatively short period,'' the Department ordinarily bases its
analysis on import data for at least the three months preceding (the
``base period'') and following (the ``comparison period'') the filing
of the petition. See 19 CFR 351.206(i). Imports normally will be
considered massive when imports during the comparison period have
increased by 15 percent or more compared to imports during the base
period. See 19 CFR 351.206(h). However, as stated in the Department's
regulations, at section 351.206(i), if the Secretary finds that
importers, exporters, or producers had reason to believe, at some time
prior to the beginning of the proceeding, that a proceeding was likely,
then the Secretary may consider a period of not less than three months
from that earlier time.
Because Sidor did not respond fully to our antidumping
questionnaire, we must base our determination regarding massive imports
on the facts available. In this case, Sidor is the only known producer
and exporter of subject merchandise from Venezuela, and U.S. Census
data are reasonably specific to exports of subject merchandise from
Venezuela. Therefore, we have determined that it is reasonable to use
these data as facts available in this case.
In the present case, petitioners argue that importers, exporters,
or producers of cold-rolled steel had reason to believe that, based on
press reports, an antidumping proceeding was likely long before the
filing of the petition. To determine whether, prior to the filing of
the petition, there was reason to believe that a proceeding was likely,
the Department examined press reports in late 1998 regarding rising
imports and the likelihood of anti-dumping actions against imports of
cold-rolled steel to the United States. Press reports established that
by the beginning of November 1998, importers, exporters, or producers
knew or should have known that a proceeding was likely concerning cold-
rolled products from South America (see Journal of Commerce, November
4, 1998). Because Venezuela is a major South American producer of cold-
rolled steel, we find such press reports sufficient to establish that,
as of November 1998, importers, exporters or producers from Venezuela
knew or should have known that a proceeding was likely concerning cold-
rolled products from Venezuela. Thus, the Department has determined
that it is appropriate to compare imports before and after November
1998 in our examination of whether there were massive imports, rather
than compare imports before and after the date the petition was filed.
The Department compared the import volumes from January-October 1998 to
November 1998-August 1999, the maximum period for which we had reliable
data in this case, and found that U.S. Census data shows more than a
100 percent increase in imports of subject merchandise from Venezuela
during this period. Thus, U.S. Census data indicate that imports from
Venezuela, and thus imports from Sidor, the only known producer/
exporter of subject merchandise in Venezuela, were far above the
minimum level normally considered ``massive'' by the Department.
Therefore, pursuant to section 733(e) of the Act and section 351.206(h)
of the Department's regulations, we preliminarily determine that there
have been massive imports of cold-rolled steel from Sidor over a
relatively short period of time. Accordingly, consistent with
Department practice, we have determined that critical circumstances
exist for Sidor.
All Others
It is the Department's normal practice to conduct its critical
circumstances analysis of companies in the ``all others'' group based
on the experience of investigated companies. See Notice of Final
Determination of Sales at Less Than Fair Value: Certain Steel Concrete
Reinforcing Bars from Turkey (Rebars from Turkey), 62 FR 9737, 9741
(March 4, 1997) (the Department found that critical circumstances
existed for the majority of the companies investigated, and therefore
concluded that critical circumstances also existed for companies
covered by the ``all others'' rate). Where the dumping margins for all
investigated respondents are based entirely on adverse facts available,
however, the Department does not automatically extend an affirmative
critical circumstances determination to companies covered by the ``all
others'' rate. See Stainless Steel Sheet from Japan, 64 FR 30574 (June
8, 1999). Instead, the Department considers the traditional critical
circumstances criteria with respect to the companies covered by the
``all others'' rate.
Consistent with Stainless Steel from Japan, the Department has, in
this case, applied the traditional critical circumstances criteria to
the ``all others'' category for the antidumping investigation of cold
rolled steel from Venezuela. First, the dumping margin for the ``all
others'' category, 42.93 percent (see Suspension of Liquidation,
below), exceeds the 25 percent threshold necessary to impute knowledge
of dumping. Second, based on the ITC's preliminary material injury
determination, we also find that importers knew or should have known
that there would be material injury from sales of the dumped
merchandise by respondents other than Sidor.
However, the Department, in selecting the facts available, has not
made an adverse inference that there are massive imports for the ``all
others'' category in the Venezuela investigation. Since Sidor, the
mandatory respondent, is currently the only known exporter of cold-
rolled steel in Venezuela, we have determined that the information
available indicates no massive imports for the ``all others'' category.
As a result, because the massive imports criterion necessary to find
critical circumstances has not been met with respect to firms other
than Sidor, the Department finds that critical circumstances do not
exist for the ``all others'' category in the Venezuelan investigation.
Suspension of Liquidation
In accordance with section 733(d) of the Act, we are directing U.S.
Customs to suspend liquidation of all imports of subject merchandise
that are entered, or withdrawn from warehouse, for consumption on or
after the date of publication of this notice in the Federal Register.
In addition, for Sidor, we are directing U.S. Customs to suspend
liquidation of all imports of subject merchandise that are entered, or
withdrawn from warehouse, for consumption on or after the date that is
90 days prior to the date of publication of this notice. We will
instruct U.S. Customs to require a cash deposit or the posting of a
bond equal to the percentage margin, as indicated in the chart below.
These suspension-of-liquidation instructions will remain in
[[Page 61833]]
effect until further notice. The dumping margin is as follows:
------------------------------------------------------------------------
Weighted-
average
Producer/manufacture exporter margin
(percent)
------------------------------------------------------------------------
Sidor...................................................... 56.37
All Others................................................. 42.93
------------------------------------------------------------------------
The all others rate, which we derived from the average of the
margins calculated in the petition, applies to all entries of subject
merchandise other than those exported by the named respondent.
ITC Notification
In accordance with section 733(f) of the Act, we have notified the
ITC of our determination. If our final determination is affirmative,
the ITC will determine whether these imports are materially injuring,
or threaten material injury, to the U.S. industry. The deadline for the
ITC determination is the later of 120 days after the date of this
preliminary determination or 45 days after the date of our final
determination.
Public Comment
Case briefs or other written comments in at least ten copies must
be submitted to the Assistant Secretary for Import Administration no
later than fifty days after the publication of this notice in the
Federal Register. Rebuttal briefs must be filed no later than fifty-
five days after the publication of this notice in the Federal Register.
A list of authorities used and an executive summary of issues should
accompany any briefs submitted to the Department. Such a summary should
be limited to five pages total, including footnotes. In accordance with
section 774 of the Act, we will hold a public hearing, if requested, to
afford interested parties an opportunity to comment on arguments raised
in case or rebuttal briefs. If a request for a hearing is made in an
investigation, the hearing will tentatively be held two days after the
deadline for submission of the rebuttal briefs, at the U.S. Department
of Commerce, 14th Street and Constitution Avenue, N.W., Washington,
D.C. 20230. Parties should confirm by telephone the time, date, and
place of the hearing 48 hours before the scheduled time.
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, U.S. Department of Commerce, Room
1870, within 30 days of the 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 the issues to be discussed.
Oral presentations will be limited to issues raised in the briefs.
If this investigation proceeds normally, we will make our final
determination within 75 days after the date of this preliminary
determination.
This determination is issued and published in accordance with
sections 733(d ) and 777(i)(1) of the Act.
Dated: November 1, 1999.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
[FR Doc. 99-29762 Filed 11-12-99; 8:45 am]
BILLING CODE 3510-DS-P
