98-29547. Notice of Preliminary Determination of Sales at Less Than Fair Value: Stainless Steel Plate in Coils (``SSPC'') From the Republic of Korea  

  • [Federal Register Volume 63, Number 213 (Wednesday, November 4, 1998)]
    [Notices]
    [Pages 59535-59540]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-29547]
    
    
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    DEPARTMENT OF COMMERCE
    
    International Trade Administration
    [A-580-831]
    
    
    Notice of Preliminary Determination of Sales at Less Than Fair 
    Value: Stainless Steel Plate in Coils (``SSPC'') From the Republic of 
    Korea
    
    AGENCY: Import Administration, International Trade Administration, 
    Department of Commerce.
    
    EFFECTIVE DATE: November 4, 1998.
    
    FOR FURTHER INFORMATION CONTACT: Carrie Blozy or Rick Johnson, Import 
    Administration, International Trade Administration, U.S. Department of 
    Commerce, 14th Street and Constitution Avenue, N.W., Washington, D.C. 
    20230; telephone: (202) 482-0165 or (202) 482-3818, 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, 
    62 FR 27296 (May 19, 1997).
    
    Preliminary Determination
    
        We preliminarily determine that Stainless Steel Plates in Coils 
    (``SSPC'') from the Republic of Korea 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 margins of sales at 
    LTFV are shown in the ``Suspension of Liquidation'' section of this 
    notice.
    
    Case History
    
        On April 20, 1998, the Department initiated antidumping duty 
    investigations of imports of stainless steel plate in coils from 
    Belgium,
    
    [[Page 59536]]
    
    Canada, Italy, South Africa, South Korea, and Taiwan (Notice of 
    Initiation of Antidumping Investigations: Stainless Steel Plates in 
    Coils From Belgium, Canada, Italy, South Africa, South Korea and Taiwan 
    (63 FR 20580, April 27, 1998)(``Notice of Initiation'')). Since the 
    initiation of this investigation the following events have occurred:
        The Department set aside a period for all interested parties to 
    raise issues regarding product coverage. On May 8, 1998, petitioners 
    Armco, Inc.; J&L Specialty Steel Inc.; Lukens, Inc.; North American 
    Stainless; the United Steelworkers of America, AFL-CIO/CLC; the Butler 
    Armco Independent Union: and the Zanesville Armco Independent 
    Organization, Inc. (``petitioners'') submitted comments to the 
    Department stating that while they believed the scope of the 
    investigations was accurate, they wished to clarify certain issues 
    concerning product coverage.
        In May 1998, the Department requested information from the U.S. 
    Embassy in the Republic of Korea to identify producers/exporters of the 
    subject merchandise. In May 1998, the Department also requested and 
    received comments from the petitioners and potential respondents in 
    these investigations regarding the model matching criteria.
        On May 15, 1998, the United States International Trade Commission 
    (``ITC'') notified the Department of its affirmative preliminary injury 
    determination in this case.
        On May 27, 1998, the Department issued an antidumping duty 
    questionnaire to Pohang Iron and Steel Company (``POSCO'') and Sammi 
    Steel Company, Ltd. (``Sammi'').
        On July 1, 1998, the Department received the response to Section A 
    of the questionnaire from POSCO. Additionally, on July 13, 1998, the 
    Department received a letter from Sammi stating that it did not export 
    the subject merchandise to the United States during 1997. We received 
    POSCO's responses to Sections B, C and D of the questionnaire on July 
    20, 1998. Petitioners filed comments on POSCO's questionnaire responses 
    in July, August, and September 1998. We issued supplemental 
    questionnaires for Sections A, B, C and D to POSCO on July 13, August 
    4, September 16, September 17, 1998, and October 7, 1998, and received 
    responses to these questionnaires in July, August, September and 
    October 1998.
        On July 28, 1998, pursuant to section 733(c)(1)(A) of the Act, 
    petitioners made a timely request to postpone the preliminary 
    determination for thirty days. The Department determined that this 
    investigation was extraordinarily complicated and that additional time 
    was necessary beyond the thirty days requested by petitioners for the 
    Department to make its preliminary determination. On August 14, 1998, 
    the Department postponed the preliminary determination fifty days until 
    October 27, 1998. See Stainless Steel Plate in Coils from Belgium, 
    Canada, Italy, South Africa, South Korea and Taiwan; Notice of 
    Postponement of Preliminary Determinations in Antidumping Duty 
    Investigations, 63 FR 44840 (August 21, 1998).
        On August 20, 1998, petitioners amended the antidumping petitions 
    to include Allegheny Ludlum Corporation as an additional petitioner.
    
    Scope of Investigation
    
        For purposes of this investigation, the product covered is certain 
    stainless steel plate in coils. Stainless steel is an alloy steel 
    containing, by weight, 1.2 percent or less of carbon and 10.5 percent 
    or more of chromium, with or without other elements. The subject plate 
    products are flat-rolled products, 254 mm or over in width and 4.75 mm 
    or more in thickness, in coils, and annealed or otherwise heat treated 
    and pickled or otherwise descaled. The subject plate may also be 
    further processed (e.g., cold-rolled, polished, etc.) provided that it 
    maintains the specified dimensions of plate following such processing. 
    Excluded from the scope of this petition are the following: (1) plate 
    not in coils, (2) plate that is not annealed or otherwise heat treated 
    and pickled or otherwise descaled, (3) sheet and strip, and (4) flat 
    bars.
        The merchandise subject to this investigation is currently 
    classifiable in the Harmonized Tariff Schedule of the United States 
    (HTS) at subheadings: 7219.11.00.30, 7219.11.00.60, 7219.12.00.05, 
    7219.12.00.20, 7219.12.00.25, 7219.12.00.50, 7219.12.00.55, 
    7219.12.00.65, 7219.12.00.70, 7219.12.00.80, 7219.31.00.10, 
    7219.90.00.10, 7219.90.00.20, 7219.90.00.25, 7219.90.00.60, 
    7219.90.00.80, 7220.11.00.00, 7220.20.10.10, 7220.20.10.15, 
    7220.20.10.60, 7220.20.10.80, 7220.20.60.05, 7220.20.60.10, 
    7220.20.60.15, 7220.20.60.60, 7220.20.60.80, 7220.90.00.10, 
    7220.90.00.15, 7220.90.00.60, and 7220.90.00.80. Although the HTS 
    subheadings are provided for convenience and Customs purposes, the 
    written description of the merchandise under investigation is 
    dispositive.
    
    Period of Investigation
    
        The period of investigation (``POI'') is January 1, 1997, through 
    December 31, 1997.
    
    Transactions Reviewed
    
        POSCO reported that it made sales of the subject merchandise to 
    affiliated resellers during the POI. On September 16, 1998, the 
    Department requested that POSCO report the home market downstream sales 
    made by its affiliated service centers (see September 16, 1998 
    supplemental questionnaire). Thus, in determining normal value (``NV'') 
    (see ``Normal Value'' section of the notice, below), the Department 
    excluded POSCO's sales to the affiliated service centers and considered 
    the affiliates' resales of the subject merchandise.
        POSCO reported that it made local letter of credit sales (``local 
    sales'') in the home market which are exempted from value-added tax 
    requirements because the end-user intends to export its finished 
    product. Because the statute at section 773(a)(1)(B)(i) defines ``the 
    price at which the foreign like product is first sold (or, in the 
    absence of a sale, offered for sale) for consumption in the exporting 
    country * * *,'' we are disregarding home market local sales because 
    there is knowledge that these sales are not consumed in the foreign 
    market (emphasis added).
        For its home market transactions, POSCO has reported the date of 
    invoice as the date of sale, i.e., the date when price and quantity are 
    finalized. However, petitioners have alleged that the home market sales 
    documentation provided by POSCO did not appear to support POSCO's claim 
    that price and quantity may change between order and invoice. In August 
    1998, the Department requested that POSCO describe the type and 
    frequency of price and quantity changes between order and invoice. 
    Based on its analysis of the information submitted by POSCO, the 
    Department found that it required additional information to determine 
    if date of invoice is the appropriate date of sale. As POSCO's 
    supplemental response was not due until October 30, 1998, the 
    Department has not considered this issue for the preliminary 
    determination. Therefore for the preliminary determination, the 
    Department is using the invoice date as the date of sale for home 
    market sales. We intend to revisit this issue after incorporating the 
    revised data into our analysis and verifying the accuracy of that data.
        In calculating export price (``EP'') (see ``Export Price'' section 
    of the notice, below), the Department determined that those U.S. sales 
    for which POSCO was
    
    [[Page 59537]]
    
    not paid should be excluded from the U.S. database.
        For its U.S. sales, POSCO has reported the date of invoice as the 
    date of sale, i.e., the date when price and quantity are finalized. For 
    U.S. sales, petitioners also alleged that the invoice date may not be 
    the appropriate date of sale. Similarly, the Department requested and 
    received additional information from POSCO on its use of invoice date 
    as the date of sale. As described above, the Department found that it 
    did not have enough information to make a determination whether invoice 
    date was the appropriate date of sale and requested additional 
    information from POSCO that was not due until October 30, 1998. 
    Therefore for the preliminary determination, the Department is using 
    the invoice date as the date of sale for U.S. sales. We intend to 
    revisit this issue after incorporating the revised data into our 
    analysis and verifying the accuracy of that data.
    
    Product Comparisons
    
        In accordance with section 771(16) of the Act, we considered all 
    products produced by the respondent, covered by the description in the 
    Scope of Investigation section, above, and sold in the home market 
    during the POI, to be foreign like products for purposes of determining 
    appropriate product comparisons to U.S. sales. Where there were no 
    sales of identical merchandise in the home market to compare to U.S. 
    sales, we compared U.S. sales to the next most similar foreign like 
    product on the basis of the characteristics listed in the antidumping 
    duty questionnaire and the May 27, 1998 reporting instructions.
    
    Fair Value Comparisons
    
        To determine whether sales of SSPC from the Republic of Korea to 
    the United States were made at less than fair value, we compared EP to 
    NV. In accordance with section 777A(d)(1)(A)(i) of the Act, we 
    calculated weighted-average EPs for comparison to weighted-average NVs.
    
    Level of Trade
    
        In accordance with section 773(a)(1)(B) of the Act, to the extent 
    practicable, we determine NV based on sales in the comparison market at 
    the same level of trade (``LOT'') as the EP or constructed export price 
    (``CEP'') transaction. The NV LOT is that of the starting-price sales 
    in the comparison market or, when NV is based on constructed value 
    (``CV''), that of the sales from which we derive selling, general and 
    administrative (``SG&A'') expenses and profit. For CEP, it is the level 
    of the constructed sale from the exporter to the importer.
        To determine whether NV sales are at a different level of trade 
    than CEP, we examined stages in the marketing process and selling 
    functions along the chain of distribution between the producer and the 
    unaffiliated customer. If the comparison-market sales are at a 
    different LOT, and the difference affects price comparability, as 
    manifested in a pattern of consistent price differences between the 
    sales on which NV is based and comparison-market sales at the LOT of 
    the export transaction, we make an LOT adjustment under section 
    773(a)(7)(A) of the Act. Finally, for CEP sales, if the NV level is 
    more remote from the factory than the CEP level and there is no basis 
    for determining whether the difference in the levels between NV and CEP 
    affects price comparability, we adjust NV under section 773(a)(7)(B) of 
    the Act (the CEP-offset provision). See Notice of Final Determination 
    of Sales at Less Than Fair Value: Certain Cut-to-Length Carbon Steel 
    Plate from South Africa, 62 FR 61731 (November 19, 1997).
        In this case, POSCO did not claim an LOT adjustment. The Department 
    notes that in its July 1, 1998 response, POSCO stated that the 
    downstream sales made by the affiliated service centers were at a 
    different level of trade than other sales made by POSCO in the POI to 
    both the U.S. and home market. However, it its October 5, 1998 response 
    on downstream sales, POSCO reported that all sales in the U.S. and home 
    market were made at the same level of trade. To ensure that no such 
    adjustment was necessary, in accordance with principles discussed 
    above, we examined information regarding the distribution systems in 
    both the United States and Korean markets, including the selling 
    functions, classes of customer and selling expenses.
        In both the U.S. market and the HM market, POSCO reported one level 
    of trade. POSCO sold through three channels of distribution in the U.S. 
    market: (1) From POSCO Steel Sales and Services Co., Ltd. 
    (``POSTEEL''), POSCO's affiliated company responsible for the majority 
    of home market sales and all U.S. sales, to one unaffiliated end-user; 
    (2) from POSTEEL through Pohang Steel American Corp. (``POSAM''), 
    POSCO's U.S. subsidiary; and (3) from POSTEEL to unaffiliated Korean 
    trading companies for resale in the U.S. POSCO also sold through three 
    channels of distribution in the home market: (1) Directly from its mill 
    to two unaffiliated end users; and (2) through POSTEEL to unaffiliated 
    end-users and domestic trading companies. Additionally, POSCO has 
    reported the home market downstream sales in HM Channel 3. The 
    affiliates' resales were made exclusively to end-users with one 
    exception.
        For sales in HM Channel 1, POSCO performed all sales-related 
    activities including arranging for freight and delivery, providing 
    computerized accounting and sales systems, market research, warranty, 
    sales negotiation, after sales service, and quality control. The same 
    selling functions were performed in HM Channel 2; however, it was 
    POSTEEL, not POSCO which performed all the major selling functions. 
    Finally, in HM Channel 3, POSCO stated that the affiliated resellers 
    sold their sales on a delivered or ex-factory basis.
        POSCO performed similar selling functions in the U.S. market as in 
    the home market including making freight and delivery arrangements and 
    offering warranties and technical advice. As in sales in HM Channel 2, 
    POSTEEL performed the major selling functions for U.S., regardless of 
    channel of distribution. POSTEEL made the international freight 
    arrangements except in the case of U.S. Channel 3 in which it sold FOB 
    Pohang Port. Also, in U.S. Channel 2, POSAM invoiced the U.S. customer 
    and for many sales, arranged for delivery to the customer from the U.S. 
    port. Finally, as in the home market, POSCO reported that it did not 
    provide inventory maintenance or advertising in the U.S. market.
        Therefore, based on the information on the record, we preliminarily 
    conclude that POSCO performed similar selling functions in the U.S. 
    market and HM Channels 1 and 2 and that a LOT adjustment is not 
    warranted for comparisons between the U.S. market and HM Channels 1 and 
    2. However, as POSCO's response detailing the type of selling functions 
    performed by the affiliated service centers was not due until October 
    30, 1998, the Department could not make a determination for this 
    preliminary determination whether the affiliated service centers' 
    resales (HM Channel 3) were sold at a different level of trade than 
    other home market channels or U.S. channels. Thus, the Department will 
    consider this issue for the final determination. For a further 
    discussion of the Department's LOT analysis, see Memorandum to the 
    File: Analysis Memorandum for the Preliminary Determination, October 
    27, 1998.
    
    Export Price/Constructed Export Price
    
        We based our calculation on EP, in accordance with section 772 (a) 
    of the Act, because the subject merchandise
    
    [[Page 59538]]
    
    was sold by the producer or exporter directly to the first unaffiliated 
    purchaser in the United States prior to importation, and CEP 
    methodology was not otherwise indicated.
        POSCO classified all of its sales of the subject merchandise in the 
    United States as EP sales in its questionnaire response, including 
    those sales made prior to importation through POSAM, POSCO's wholly 
    owned U.S. subsidiary. We examined several factors to determine whether 
    sales made prior to importation through POSAM to an unaffiliated 
    customer in the United States are EP sales. These factors are: (1) 
    whether the merchandise was shipped directly from the manufacturer to 
    the unaffiliated U.S. customer without being introduced into the 
    physical inventory of the affiliated selling agent; (2) whether the 
    sales follow customary commercial channels between the parties 
    involved; and (3) whether the function of the U.S. selling agent is 
    limited to that of a ``processor of sales-related documentation'' and a 
    ``communication link'' with the unrelated U.S. buyer. Where the factors 
    indicate that the activities of the U.S. selling agent are ancillary to 
    the sale (e.g., arranging transportation or customs clearance), we 
    treat the transactions as EP sales. Where the U.S. selling agent is 
    substantially involved in the sales process (e.g., negotiating prices), 
    we treat the transactions as CEP sales. See Certain Cut-to-Length 
    Carbon Steel Plate from Germany: Final Results of Antidumping 
    Administrative Review, 62 FR 18389, 18391 (April 15, 1997); Mitsubishi 
    Heavy Industries v. United States, Slip Op. 98-82 at 6 (CIT, June 23, 
    1998).
        Concerning the first two criteria, the record indicates that 
    POSCO's sales through POSAM were shipped directly from the manufacturer 
    to the unaffiliated U.S. customer and that this was the customary 
    commercial channel. In determining whether the U.S. affiliate acted 
    solely as a ``processor of sales-related documentation'' and a 
    ``communication link'' with the unaffiliated U.S. customer, we reviewed 
    the selling functions performed by POSAM and the sales process for 
    these sales. Although POSAM performed a variety of selling functions on 
    behalf of POSCO in connection with POSCO's SSPC sales in the United 
    States, including forwarding inquiries and confirmations to and from 
    the customer and POSTEEL, invoicing customers, arranging for freight to 
    the customer from the U.S. port, collecting payment, and serving as 
    importer of record, POSCO has stated that POSTEEL determined price and 
    terms of sale and performed all other sales related activities. We will 
    conduct an in-depth examination of the most appropriate classification 
    of POSCO's U.S. sales through POSAM (i.e., CEP versus EP) at 
    verification. However, based on POSCO's record statements, we 
    preliminarily determine that POSCO's U.S. sales of SSPC through POSAM 
    qualify as EP sales. For further discussion of this issue, see 
    Memorandum to the File: Analysis Memorandum for the Preliminary 
    Determination for POSCO, October 27, 1998.
        We based EP on the packed prices to unaffiliated purchasers in the 
    United States. We made deductions for foreign inland freight, brokerage 
    and handling, ocean freight, marine insurance, U.S. inland freight 
    (where applicable), U.S. brokerage and wharfage charges (where 
    applicable) and U.S. Customs duties in accordance with section 
    772(c)(2)(A) of the Act. Additionally, we added to the U.S. price an 
    amount for duty drawback pursuant to section 772(c)(1)(B) of the Act. 
    For a further discussion of this issue, see Memorandum to the File: 
    Analysis Memorandum for the Preliminary Determination for POSCO, 
    October 27, 1998. As noted in the ``Transactions Reviewed'' section of 
    the notice, above, the Department's use of POSCO's date of invoice as 
    the date of sale for the U.S. in accordance with 19 CFR 351.401(i) is 
    dependent upon the results of our analysis.
    
    Normal Value
    
        After testing home market viability and whether home market sales 
    were at below-cost prices, we calculated NV as noted in the ``Price-to-
    Price Comparisons'' and ``Price-to-CV Comparison'' sections of this 
    notice.
    
    Home Market Viability
    
        In order to determine whether there is a sufficient volume of sales 
    in the home market to serve as a viable basis for calculating NV (i.e., 
    the aggregate volume of home market sales of the foreign like product 
    is equal to or greater than five percent of the aggregate volume of 
    U.S. sales), we compared the respondent's volume of home market sales 
    of the foreign like product to the volume of U.S. sales of the subject 
    merchandise, in accordance with section 773(a)(1)(C) of the Act. Since 
    POSCO's aggregate volume of home market sales of the foreign like 
    product was greater than five percent of its aggregate volume of U.S. 
    sales for the subject merchandise, we determined that the home market 
    was viable. Therefore, we have based NV on home market sales.
    
    Cost of Production Analysis
    
        Based on the cost allegation submitted by the petitioners in the 
    petition, the Department found reasonable grounds to believe or suspect 
    that POSCO had made sales in the home market at prices below the cost 
    of producing the merchandise, in accordance with section 773(2)(A)(i) 
    of the Act. As a result the Department initiated an investigation to 
    determine whether POSCO made home market sales during the POI at prices 
    below their respective COPs within the meaning of section 773(b) of the 
    Act. See Notice of Initiation.
        When the annual inflation rate in the country under investigation 
    exceeds 25 percent, the Department considers that inflation to be 
    significant and often uses a modified questionnaire. See, e.g., Notice 
    of Final Determination of Sales at Less Than Fair Value: Certain Pasta 
    from Turkey, 61 FR 30309, 30315 (June 14, 1996).
        Although the inflation rate in Korea in December 1997, was 8.19 
    percent, the annual inflation rate during the POI did not exceed 25% 
    (see International Monetary Fund's International Financial Statistics: 
    Producer Prices (July 1998; March 1998; December 1997; July 1997)). 
    Therefore, we preliminarily determine that it is not appropriate to 
    send out the Department's modified cost questionnaire in this case.
        We conducted the COP analysis described below.
    
    A. Calculation of COP
    
        In accordance with section 773(b)(3) of the Act, we calculated COP 
    based on the sum of POSCO's cost of materials and fabrication for the 
    foreign like product, plus amounts for home market SG&A, interest 
    expenses, and packing costs. We used the information from POSCO's 
    Section D supplemental questionnaire response to calculate COP.
    B. Test of Home Market Prices
        We compared the weighted-average COP for POSCO, adjusted where 
    appropriate (see above), to home market sales of the foreign like 
    product as required under section 773(b) of the Act. In determining 
    whether to disregard home market sales made at prices less than the 
    COP, we examined whether (1) within an extended period of time, such 
    sales were made in substantial quantities, and (2) such sales were made 
    at prices which permitted the recovery of all costs within a reasonable 
    period of time. On a product-specific basis, we compared the COP to 
    home market prices, less any applicable movement
    
    [[Page 59539]]
    
    charges and direct and indirect selling expenses.
    C. Results of the COP Test
        Pursuant to section 773(b)(2)(C) of the Act, where less than 20 
    percent of respondent's sales of a given product were at prices less 
    than the COP, we did not disregard any below-cost sales of that product 
    because we determined that the below-cost sales were not made in 
    ``substantial quantities.'' Where 20 percent or more of a respondent's 
    sales of a given product during the POI were at prices less than the 
    COP, we determined such sales to have been made in ``substantial 
    quantities'', 773(b)(2)(c)(i), within an extended period of time in 
    accordance with section 773(b)(2)(B) of the Act. In such cases because 
    we compared prices to weighted-average COPs for the POI , we also 
    determined that such sales were not made at prices which would permit 
    recovery of all costs within a reasonable period of time, in accordance 
    with section 773(b)(2)(D) of the Act. Therefore, we disregarded the 
    below-cost sales. Where all sales of a specific product were at prices 
    below the COP, we disregarded all sales of that product.
    D. Calculation of CV
        In accordance with section 773(e)(1) of the Act, we calculated CV 
    based on the sum of respondent's cost of materials, fabrication, SG&A, 
    interest expenses and profit. We calculated the COP included in the 
    calculation of CV as noted above, in the ``Calculation of COP'' section 
    of the notice. In accordance with section 773(e)(2)(A) of the Act, we 
    based SG&A and profit on the amounts incurred and realized by the 
    respondent in connection with the production and sale of the foreign 
    like product in the ordinary course of trade, for consumption in the 
    foreign country.
    
    Price-to-Price Comparisons
    
        For those product comparisons for which there were sales at prices 
    above the COP, we based NV on prices to home market customers. We made 
    adjustments, where appropriate, for physical differences in the 
    merchandise in accordance with section 773(a)(6)(C)(ii) of the Act.
        We calculated NV based on prices to unaffiliated home market 
    customers. We made a deduction for inland freight. We made 
    circumstance-of-sale adjustments or deductions for credit, warranty 
    expense and interest revenue, where appropriate. In accordance with 
    section 773(a)(6), we deducted home market packing costs and added U.S. 
    packing costs.
    
    Price-to-CV Comparisons
    
        For price-to-CV comparisons, we made adjustments to CV in 
    accordance with section 773(a)(8) of the Act.
    
    Currency Conversion
    
        Our preliminary analysis of Federal Reserve dollar-won exchange 
    rate data shows that the won declined rapidly at the end of 1997, 
    losing over 40% of its value between the beginning of November and the 
    end of December. The decline was, in both speed and magnitude, many 
    times more severe than any change in the dollar-won exchange rate 
    during the previous eight years. Had the won rebounded quickly enough 
    to recover all or almost all of the initial loss, the Department might 
    have been inclined to view the won's decline at the end of 1997 as 
    nothing more than a sudden, but only momentary drop, despite the 
    magnitude of that drop. As it was, however, there was no significant 
    rebound. Therefore, we have preliminarily determined that the decline 
    in the won at the end of 1997 was so precipitous and large that the 
    dollar-won exchange rate cannot reasonably be viewed as having simply 
    fluctuated during this time, i.e., as having experienced only a 
    momentary drop in value. Therefore, in making this preliminary 
    determination, the Department used daily rates exclusively for currency 
    conversion purposes for HM sales matched to U.S. sales occurring 
    between November 1 and December 31, 1997.
        The Department makes this determination without the benefit of 
    extensive case precedent dealing with this area of our currency 
    conversion policy. The Department therefore welcomes comments from 
    interested parties on all aspects of our analysis and the time period-
    specific exchange rates used. For the purposes of the final 
    determination, the Department will also analyze the implications, if 
    any, of the decline in the won during 1997 for price averaging and 
    whether multiple averages are warranted. The Department is studying 
    this issue in Mushrooms from Indonesia. See Notice of Preliminary 
    Determination of Sales at Less Than Fair Value and Postponement of 
    Final Determination: Certain Preserved Mushrooms from Indonesia, 63 FR 
    41783 (August 5, 1998).
    
    Verification
    
        As provided in section 782(i) of the Act, we will verify all 
    information relied upon in making our final determination.
    
    Suspension of Liquidation
    
        In accordance with section 733(d) of the Act, we are directing the 
    Customs Service 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. We will instruct the Customs Service to require a 
    cash deposit or the posting of a bond equal to the weighted-average 
    amount by which the NV exceeds the export price, as indicated in the 
    chart below. These suspension-of-liquidation instructions will remain 
    in effect until further notice. The weighted-average dumping margins 
    are as follows:
    
    ------------------------------------------------------------------------
                                                                  Weighted-
                                                                   average
                       Exporter/Manufacturer                        margin
                                                                  percentage
    ------------------------------------------------------------------------
    POSCO......................................................         2.77
    All Others.................................................         2.77
    ------------------------------------------------------------------------
    
    ITC Notification
    
        In accordance with section 733(f) of the Act, we are notifying the 
    ITC of our determination. If our final determination is affirmative, 
    the ITC will determine before the later of 120 days after the date of 
    this preliminary determination or 45 days after our final determination 
    whether these imports are materially injuring, or threaten material 
    injury to, the U.S. industry.
    
    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 50 days after the publication of the preliminary 
    determination, and rebuttal briefs, limited to issues raised in case 
    briefs, no later than 55 days after the publication of the preliminary 
    determination. A list of authorities used and an executive summary of 
    issues should accompany any briefs submitted to the Department. Such 
    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. Tentatively, the hearing 
    will be held 57 days after the publication of the preliminary 
    determination, time and room to be determined, 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.
    
    [[Page 59540]]
    
        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 by January 10, 1999.
        This determination is issued and published in accordance with 
    sections 733(d) and 777(i)(1) of the Act.
    
        Dated: October 27, 1998.
    Robert S. LaRussa,
    Assistant Secretary for Import Administration.
    [FR Doc. 98-29547 Filed 11-3-98; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Effective Date:
11/4/1998
Published:
11/04/1998
Department:
International Trade Administration
Entry Type:
Notice
Document Number:
98-29547
Dates:
November 4, 1998.
Pages:
59535-59540 (6 pages)
Docket Numbers:
A-580-831
PDF File:
98-29547.pdf