[Federal Register Volume 64, Number 229 (Tuesday, November 30, 1999)]
[Notices]
[Pages 66892-66894]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-30972]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-588-854]
Initiation of Antidumping Duty Investigation: Certain Tin Mill
Products From Japan
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: November 30, 1999.
FOR FURTHER INFORMATION CONTACT: Samantha Denenberg at (202) 482-1386
or Linda Ludwig at (202) 482-3833, Import Administration, International
Trade Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230.
Initiation of Investigations
The Applicable Statute and Regulations
Unless otherwise indicated, all citations to the statute are
references to the provisions effective January 1, 1995, the effective
date of the amendments made to the Tariff Act of 1930 (the Act) by the
Uruguay Round Agreements Act (URAA). In addition, unless otherwise
indicated, all citations to the Department's regulations are references
to the provisions codified at 19 CFR Part 351 (1998).
The Petition
On October 28, 1999, the Department of Commerce (``the
Department'') received a petition filed in proper form by Weirton Steel
Corporation, Independent Steelworkers Union, and United Steelworkers of
America, AFL-CIO (collectively petitioners). The Department received
supplemental information to the petition on November 8, 1999.
In accordance with section 732(b) of the Act, petitioners allege
that imports of certain tin mill products (``TMP'') from Japan are
being, or are likely to be, sold in the United States at less than fair
value within the meaning of section 731 of the Act, and that such
imports are materially injuring an industry in the United States.
The Department finds that petitioners filed these petitions on
behalf of the domestic industry because they are interested parties as
defined in sections 771(9)(C) and (D) of the Act and they have
demonstrated sufficient industry support with respect to the
antidumping investigation they are requesting the Department to
initiate (see Determination of Industry Support for the Petition
below).
[[Page 66893]]
Scope of Investigation
The scope of this investigation includes tin mill flat-rolled
products that are coated or plated with tin, chromium or chromium
oxides. Flat-rolled steel products coated with tin are known as tin
plate. Flat-rolled steel products coated with chromium or chromium
oxides are known as tin-free steel or electrolytic chromium-coated
steel. The scope includes all the noted tin mill products regardless of
thickness, width, form (in coils or cut sheets), coating type
(electrolytic or otherwise), edge (trimmed, untrimmed or further
processed, such and scroll cut), coating thickness, surface finish,
temper, coating metal (tin, chromium, chromium oxide), reduction
(single-or double-reduced), and whether or not coated with a plastic
material.
The merchandise subject to this investigation is classified in the
Harmonized Tariff Schedule of the United States (``HTSUS''), under
HTSUS subheadings 7210.11.0000, 7210.12.0000, 7210.50.0000,
7212.10.0000, and 7210.50.0000 if of non-alloy steel and under HTSUS
subheadings 7225.99.0090, and 7226.99.0000 if of alloy steel. Although
the subheadings are provided for convenience and Customs purposes, our
written description of the scope of this investigation is dispositive.
Determination of Industry Support for the Petition
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (1) at least
25 percent of the total production of the domestic like product; and
(2) more than 50 percent of the production of the domestic like product
produced by that portion of the industry expressing support for, or
opposition to, the petition.
Section 771(4)(A) of the Act defines the ``industry'' as the
producers of a domestic like product. Thus, to determine whether the
petition has the requisite industry support, the statute directs the
Department to look to producers and workers who produce the domestic
like product. The International Trade Commission (ITC), which is
responsible for determining whether ``the domestic industry'' has been
injured, must also determine what constitutes a domestic like product
in order to define the industry. While both the Department and the ITC
must apply the same statutory definition regarding the domestic like
product (section 771(10) of the Act), they do so for different purposes
and pursuant to separate and distinct authority. In addition, the
Department's determination is subject to limitations of time and
information. Although this may result in different definitions of the
like product, such differences do not render the decision of either
agency contrary to the law.1
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\1\ See Algoma Steel Corp. Ltd., v. United States, 688 F. Supp.
639, 642-44 (CIT 1988); High Information Content Flat Panel Displays
and Display Glass Therefore from Japan: Final Determination;
Rescission of Investigation and Partial Dismissal of Petition, 56 FR
32376, 32380-81 (July 16, 1991).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation,'' i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition. Moreover, petitioners do not offer a definition of domestic
like product distinct from the scope of the investigation.
The domestic like product referred to in the petition is the single
domestic like product defined in the ``Scope of Investigation''
section, above. The Department has no basis on the record to find the
petition's definition of the domestic like product to be inaccurate.
The Department has, therefore, adopted the domestic like product
definition set forth in the petition. In this case, the Department has
determined that the petition and supplemental information to the
petition contain adequate evidence of sufficient industry support (see
Attachment to the Initiation Checklist Re: Industry Support, November
17, 1999). Producers and workers supporting the petition represent over
50 percent of total production of the domestic like product.
Accordingly, both tests under section 732(c)(4)(A) are satisfied, and
the Department determines that this petition is filed on behalf of the
domestic industry within the meaning of 732(b)(1) of the Act.
Export Price and Normal Value
The following are descriptions of the allegations of sales at less
than fair value upon which our decision to initiate this investigation
is based. Should the need arise to use any of this information in our
preliminary or final determinations for purposes of facts available
under section 776 of the Act, we may re-examine the information and
revise the margin calculations, if appropriate.
Japan
Petitioners identified Nippon Steel Corporation, NKK Corporation,
Kawasaki Steel Corporation, and Toyo Kohan Co. Ltd. as possible
exporters of TMP from Japan. Petitioners further identified these
exporters as the primary producers of subject merchandise in Japan.
Petitioners based export price (``EP'') for imports from Japan on
import values as recorded in official U.S. Department of Commerce IM-
145 statistics. In calculating import values, petitioners used the
customs values reported for the HTS categories which represent imports
of tin plate (e.g., HTSUS 7210.12.0000) and imports of tin free steel
(e.g., HTSUS 7210.50.0000). Petitioners used average customs values for
each product (for the month of June 1999) which approximate the FOB
price of the merchandise, packaged and ready for delivery in the
exporter's country. Petitioners did not deduct foreign inland freight
and handling in Japan because they had no information regarding these
expenses.
With respect to normal value (``NV''), petitioners stated that the
volume of Japanese home market sales was sufficient to form a basis for
normal value, pursuant to section 773(a)(1)(C)(ii) of the Act.
Petitioners constructed normal values based on the average prices of
tin mill products sold in Japan by Nippon Steel Corporation
(``Nippon'') to large end users during June 1999. Petitioners
determined that, because Nippon is the largest producer of the subject
merchandise in the Japanese market, Nippon's prices would be
representative of the normal value in the Japanese tin mill market. The
Japanese home market prices for five sample models of tin plate
products and thirteen sample models of tin free steel were obtained by
foreign market research consultants in Japan. The prices used in the
calculation of NV were delivered, VAT exclusive prices. Petitioners
derived NV by deducting a commission from the delivered price, which
represents payment made to large trading companies. Petitioners also
deducted expenses for freight, handling, and other movement related
expenses such as storage during transportation and tolls. For the
calculation of dumping margins, petitioners compared the average unit
value for all five sample sales of tin plate to the average customs
value for the corresponding HTSUS item for the month of June 1999, and
the average unit value for all thirteen sample sales of tin free steel
to the
[[Page 66894]]
average customs value for the corresponding HTSUS item for the month of
June 1999.
The estimated dumping margins in the petition, based on a
comparison between Nippon's home market prices and U.S. prices derived
from IM-145 statistics, range from 0.78 percent to 95.29 percent.
Fair Value Comparisons
Based on the data provided by petitioners, there is reason to
believe that imports of certain tin mill products from Japan are being,
or are likely to be, sold at less than fair value.
Allegations and Evidence of Material Injury and Causation
The petition alleges that the U.S. industry producing the domestic
like product is being materially injured, and is threatened with
material injury, by reason of the imports of the subject merchandise
sold at less than fair value. Petitioners explained that the industry's
injured condition is evident in the declining trends in net operating
profits, net sales volumes, and capacity utilization. The allegations
of injury and causation are supported by relevant evidence including
U.S. Customs import data, lost sales, and pricing information. The
Department assessed the allegations and supporting evidence regarding
material injury and causation, and determined that these allegations
are supported by accurate and adequate evidence and meet the statutory
requirements for initiation (see Attachments to Initiation Checklist,
Re: Material Injury, November 17, 1999).
Initiation of Antidumping Investigations
Based upon our examination of the petition on TMP and petitioners'
supplemental information clarifying the petition, we have found that
the petition meets the requirements of section 732 of the Act.
Therefore, we are initiating an antidumping duty investigation to
determine whether imports of certain tin mill products from Japan are
being, or are likely to be, sold in the United States at less than fair
value. Unless the deadline is extended, we will make our preliminary
determination no later than 140 days after the date of publication of
this notice.
Distribution of Copies of the Petitions
In accordance with section 732(b)(3)(A) of the Act, a copy of the
public version of each petition has been provided to the
representatives of Japan. We will attempt to provide a copy of the
public version of each petition to each exporter named in the petition
(as appropriate).
International Trade Commission Notification
We have notified the ITC of our initiation, as required by section
732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will determine, by December 13, 1999, whether there is a
reasonable indication that imports of certain tin mill products from
Japan are causing material injury, or threatening to cause material
injury, to a U.S. industry. A negative ITC determination will result in
the investigation being terminated; otherwise, these investigations
will proceed according to statutory and regulatory time limits.
This notice is published pursuant to section 777(i) of the Act.
Dated: November 17, 1999.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 99-30972 Filed 11-29-99; 8:45 am]
BILLING CODE 3510-DS-P
