[Federal Register Volume 61, Number 62 (Friday, March 29, 1996)]
[Notices]
[Pages 14049-14057]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7615]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-602-803]
Certain Corrosion-Resistant Carbon Steel Flat Products From
Australia; Final Results of Antidumping Duty Administrative Reviews
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of Final Results of Antidumping Duty Administrative
Review.
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SUMMARY: On August 16, 1995, the Department of Commerce (the
Department) published the preliminary results of the administrative
review of the antidumping duty order on certain corrosion-resistant
carbon steel flat products from Australia. The review covers one
manufacturer/exporter of the subject merchandise to the United States
and the period February 4, 1993, through July 31, 1994. We gave
interested parties an opportunity to comment on our preliminary
results. Based on our analysis of the comments received, we have
changed the results from those presented in the preliminary results of
review.
EFFECTIVE DATE: March 29, 1996.
FOR FURTHER INFORMATION CONTACT: Bob Bolling or Jean Kemp, Office of
Agreements Compliance, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, N.W., Washington, D.C. 20230; telephone: (202)
482-3793.
SUPPLEMENTARY INFORMATION:
Background
On August 16, 1995, the Department published in the Federal
Register (60 FR 42507) the preliminary results of the administrative
review of the antidumping duty order on certain corrosion-resistant
carbon steel flat products from Australia (58 FR 44161, August 19,
1993). The Department has now completed this administrative review in
accordance with section 751 of the Tariff Act of 1930, as amended (the
Act).
Applicable Statute and Regulations
Unless otherwise stated, all citations to the statute and to the
Department's regulations are references to the provisions as they
existed on December 31, 1994.
Scope of this Review
The products covered by this administrative review constitute one
``class or kind'' of merchandise: certain corrosion-resistant carbon
steel flat products. These products include flat-rolled carbon steel
products, of rectangular shape, either clad, plated, or coated with
corrosion-resistant metals such as zinc, aluminum, or zinc-, aluminum-,
nickel- or iron-based alloys, whether or not corrugated or painted,
varnished or coated with plastics or other nonmetallic substances in
addition to the metallic coating, in coils (whether or not in
successively superimposed layers) and of a width of 0.5 inch or
greater, or in straight lengths which, if of a thickness less than 4.75
millimeters, are of a width of 0.5 inch or greater and which measures
at least 10 times the thickness or if of a thickness of 4.75
millimeters or more are of a width which exceeds 150 millimeters and
measures at least twice the thickness, as currently classifiable in the
HTS under item numbers 7210.31.0000, 7210.39.0000, 7210.41.0000,
7210.49.0030, 7210.49.0090, 7210.60.0000, 7210.70.6030, 7210.70.6060,
7210.70.6090, 7210.90.1000, 7210.90.6000, 7210.90.9000, 7212.21.0000,
7212.29.0000, 7212.30.1030, 7212.30.1090, 7212.30.3000, 7212.30.5000,
7212.40.1000, 7212.40.5000, 7212.50.0000, 7212.60.0000, 7215.90.1000,
7215.90.5000, 7217.12.1000, 7217.13.1000, 7217.19.1000, 7217.19.5000,
7217.22.5000, 7217.23.5000, 7217.29.1000, 7217.29.5000, 7217.32.5000,
7217.33.5000, 7217.39.1000, and 7217.39.5000. Included are flat-rolled
products of nonrectangular cross-section where such cross-section is
achieved subsequent to the rolling process (i.e., products which have
been ``worked after rolling'')--for example, products which have been
bevelled or rounded at the edges. Excluded are flat-rolled steel
products either plated or coated with tin, lead, chromium, chromium
oxides, both tin and lead (``terne plate''), or both chromium and
chromium oxides (``tin-free steel''), whether or not painted, varnished
or coated with plastics or other nonmetallic substances in addition to
the metallic coating. Also excluded are clad products in straight
lengths of 0.1875 inch or more in composite thickness and of a width
which exceeds 150 millimeters and measures at least twice the
thickness. Also excluded are certain clad stainless flat-rolled
products, which are three-layered corrosion-resistant carbon steel
flat-rolled products less than 4.75 millimeters in composite thickness
that consist of a carbon steel flat-rolled
[[Page 14050]]
product clad on both sides with stainless steel in a 20%-60%-20% ratio.
These HTS item numbers are provided for convenience and Customs
purposes. The written description remains dispositive. The period of
review (POR) is February 4, 1993 through July 31, 1994.
Analysis of Comments Received
We gave interested parties an opportunity to comment on the
preliminary results. We received comments and rebuttal comments from
both parties, The Broken Hill Proprietary Company Ltd. (BHP) and
petitioners. At the request of BHP and petitioners a hearing was held
on October 5, 1995.
Comment 1: Respondent states that the Department erred in
preliminarily denying BHP its ``constructive'' quantity discount.
Respondent argues that, because the Department verified that BHP
granted quantity discounts on more than 20 percent of its home market
sales, under section 353.55(b)(1) of the Department's regulations it
follows inescapably that ``the discounts granted were of at least the
same magnitude.''
Respondent illustrated how this result must follow. Assuming
respondent granted discounts of 10 percent, 15 percent, 20 percent and
25 percent on 4 out of 10 sales, then discounts were granted on 40% of
the total sales, and respondent asserts that the discounts granted were
of at least the same magnitude as the minimum discount because each
discount was of at least 10 percent. Respondent argues further that
even though it only provided the average quantity discount, as opposed
to the actual quantity discount given on each sale at issue, this so-
called ``constructive'' quantity discount was arrived at by using
actual figures, i.e., by dividing the total value of discounts by the
number of tonnage that received an actual discount. For any sale which
received less than the average discount, or no discount, a value up to
the ``constructive'' discount was reported. Moreover, the respondent
contends that because the Department verified each of the
``constructive'' quantity discounts associated with the pre-selected
and surprise sales at verification by using the actual public and
internal price lists and checking actual quantity discounts granted,
this is sufficient to justify the reliability of the average discount
constructed by BHP.
Respondent states that granting the ``constructive'' quantity
discount need not establish a wholesale-type precedent since BHP's
factual information is unique. Therefore, based upon the facts of
record, it is entitled to its ``constructive'' quantity discount
adjustment pursuant to section 353.55(b)(1) of the Department's
regulations.
Petitioners argue that BHP has not demonstrated a basis for
granting the quantity discount under the Department's regulations.
Petitioners take issue with BHP's assertion that discounts are of at
least the same magnitude as the smallest discount amount granted on any
sale because the smallest discount amount is not the amount reported as
the constructive quantity discount. Petitioners state that the actual
discounts given, or extras charged by, respondent were not of the same
magnitude as the reported ``constructive'' quantity discount. Moreover,
petitioners point out that at verification BHP made no attempt to
demonstrate that its actual quantity discounts were of the same
magnitude as the reported ``constructive'' quantity discount. In
addition, petitioners state that a respondent must also establish that
it granted discounts to home market customers on a uniform basis, and
that the evidence confirms that quantity discounts were not charged on
a uniform basis, rather they varied based on quantity purchased,
product type, and whether the product was painted.
Department's Position: We disagree with respondent. To be eligible
for a quantity-based discount, a respondent must demonstrate a clear
and direct correlation between price differences and quantities sold.
(See e.g., Brass Sheet and Strip From the Netherlands, 53 FR 23,431, 33
(1988). Pursuant to 353.55(b)(1) of the Department's regulations, in
order to receive this adjustment a respondent must establish that it
gave quantity discounts of at least the same magnitude on 20 percent or
more of its home market sales of such or similar merchandise. That is
to say that the discount amounts submitted must be at least as large as
the discounts granted on 20 percent or more of all home market sales of
such or similar merchandise. If this test is met the Department applies
a discount adjustment equal to the minimum discount given.
Regardless of the fact that the Department verified that BHP had
granted quantity discounts on more than 20 percent of its home market
sales, because BHP only provided the Department with an average
discount amount, which it applied across the board to all home market
sales it claimed received a quantity-based discount, the Department has
no way of determining which of the actual discounts granted were at
least as large as the average discount claimed by BHP.
The hypothetical example proffered by BHP illustrates its
misreading of 353.55(b)(1). BHP points to the smallest discount of 10
percent in the hypothetical example and concludes that because the
other discounts in the example were all higher, it must follow that its
average ``constructed'' discount amount will always be of at least the
same magnitude as the minimum discount. However, it is not the minimum
discount that we are concerned with. In BHP's example the average
discount, which is 17.5 percent, while at least as large as 10 and 15
percent, is not of the same magnitude as 20 and 25 percent. By
definition, the average discount can never be at least as large as
those discounts which are higher than the average.
While the Department can agree with BHP's argument that quantity
discounts granted on more than 20 percent of its home market sales must
be of at least the same magnitude as the minimum discount granted, we
cannot determine what that minimum discount was from the
``constructed'' average submitted by BHP. Therefore, we cannot
establish the proper amount of the claimed adjustment. Lastly, as
petitioners correctly point out, the Department also requires that a
respondent establish that it gave discounts on a uniform basis which
were available to substantially all home market customers, which BHP
failed to demonstrate. Therefore, the Department will disallow the
adjustment for the purposes of the final results.
Comment 2: Respondent argues that for its preliminary results, the
Department omitted certain home market sales of its prime merchandise.
Respondent explains that it reported all of its prime sales (by
PRIMEH='1' and by PRIMEH='3'), as well as its non-prime sales, which
included seconds and downgraded merchandise (by PRIMEH='2').
However, the respondent notes that the Department included in the
home market database only prime 1 sales (``WHERE PRIMEH='1'') and
omitted prime 3 sales (``WHERE PRIMEH='3''). Respondent claims that the
reason it reported some of its prime as PRIMEH='3' was in response to a
Department request that overruns be separately reported, but respondent
asserts that in its normal course of business it does not distinguish
between its prime product and prime overruns. Respondent claims that
prime overruns are sold in the home market as prime surplus stock, and
that standard customer agreements grant an option to buy both prime and
prime surplus. Consequently, respondent argues that
[[Page 14051]]
the record establishes that products designated as PRIMEH='1' and
PRIMEH='3' are prime products, and that the Department should correct
the program to include sales of the latter even though they are
overruns.
Petitioners argue that the Department correctly excluded overrun
sales from the foreign market value calculation. Petitioners assert
that it is Department practice to exclude overrun sales that are
outside the ordinary course of trade. Petitioners contend that looking
at the factors that the Department uses to determine whether overruns
are sold in the ordinary course of business, sales of BHP's overruns
are outside the ordinary course of trade. Petitioners argue that record
evidence of differences in prices, profit margins, sales quantities,
and sales practices between prime and overruns, all support their claim
that these sales are outside the ordinary course of trade.
Department's Position: We agree with respondent. It is the
Department's established practice to include home market sales of such
or similar merchandise unless it can be established that such sales
were not made in the ordinary course of trade. (See e.g., Final
Determination of Stainless Steel Angle From Japan, 60 FR 16608, 16614-
15 (1995)). Section 773(a)(1)(A) of the Act and section 353.46(a) of
the Department's regulations provide that foreign market value shall be
based on the price at which or similar merchandise is sold in the
exporting country in the ordinary course of trade for home consumption.
Section 771(15) of the Act defines ordinary course of trade as
conditions and practices which, for a reasonable time prior to the
exportation of the subject merchandise, have been normal in the trade
with respect to merchandise of the same class or kind. (See, also
section 353.46(b))
In looking at overruns in making this determination the Department
typically examines several factors taken together, with no one factor
dispositive. (See e.g., Certain Welded Carbon Steel Standard Pipes and
Tubes From India, 56 FR 64753, 64755 (1991)). In this case, we
examined: (a) whether the home market sales in question did, if fact,
consist of production overruns; (b) whether differences in physical
characteristics or different product uses existed between overruns and
ordinary production; (c) whether the number of buyers of overruns in
the home market and the sales volume and quantity (tonnage) of overruns
were similar or dissimilar as compared to prime merchandise; and (d)
whether the price and profit differentials between sales of overruns
and ordinary production were dissimilar. In considering these factors
as a whole, we found that sales of overrun corrosion-resistant steel
were made in the ordinary course of trade.
Evidence indicates that home market sales of Prime3 were sales of
overruns. There is no evidence on the record to indicate that there
were any differences in product characteristics between prime
merchandise and overruns. BHP's standard customer agreements provided
an option to purchase either prime merchandise or overruns, which BHP
label's as prime surplus, as they arise on their surplus stock list.
(See Verification Exhibit BHP-9(b)) There is nothing in the record to
indicate that overruns have different physical characteristics than
prime merchandise or are used for different purposes. Record evidence
establishes that the cost of producing prime and the cost of producing
overruns is the same, and standard customer agreements do not
distinguish between physical characteristics or product uses.
Also, the record reflects that there was a high number of buyers of
overruns in relation to the number of buyers of prime merchandise sales
and, in most instances, they were the same purchasers. In addition, in
relation to the total quantity and volume of home market sales of prime
merchandise, overruns accounted for a not insignificant percentage.
With regard to pricing differences between prime merchandise and
overruns, the record demonstrates that there were a variety of pricing
differences. Several sales of overruns were at prices many times higher
than prices for prime merchandise, several were sold at a substantial
percentage of the price of prime merchandise, and some were sold at a
small percentage of the price of prime. Record evidence indicates that
the average profit margin on overruns was not insignificant, although
the average profit margin on prime merchandise was much greater. All
these factors when looked at in totality lead us to conclude that sales
of `PRIMEH=3' were sold in the ordinary course of trade, and we will
for the final results include home market sales of overruns.
Comment 3: Respondent asserts that notwithstanding the paucity of
sales found to be below cost, it provided the Department with
information that demonstrates that it will recover costs on these few
below cost sales within a reasonable period of time.
Respondent asserts that under the law and the Department's practice
it is entitled to a finding of cost recovery. Respondent notes that the
Court of International Trade (CIT) has stated that ``[t]he issue * * *
is not whether the record supports the conclusion that [the respondent]
would be able to recover its costs at the prices charged during the
investigatory period within a reasonable period of time in the normal
course of trade, but whether there is substantial evidence on the
record supporting Commerce's determination that [the respondent] could
not recover its costs at these prices in such time period.'' NSK Ltd.
v. United States, 809 F. Supp. 115 (CIT 1992) (quoting Toho Titanium
Co. v. United States, 670 F. Supp. 1019, 1022 (CIT 1987)). Respondent
further asserts that the CIT has stated that the Department must
support its cost recovery conclusion with supporting calculations or
analytical explanations, ``using either the data already collected or,
if necessary, by collecting further data'' that cost recovery will not
occur within a reasonable period time. See Toho, 670 F. Supp. at 1022.
Respondent states that it is aware that, in past cases, parties
alleging cost recovery have not provided the Department with adequate
data, but respondent argues that it provided detailed evidence of
declining production costs and efficiency gains when it submitted
information about APEX, a cost reduction program it undertook with the
assistance of McKinsey Consultants and charts demonstrating cost
reductions achieved over successive six month periods during the POR.
This, coupled with the fact that so few sales were found by the
Department to be below cost, respondent asserts is sufficient to shift
the burden on the Department to demonstrate with substantial evidence
that cost recovery did not occur.
Petitioners argue that respondent has the burden of proof to
demonstrate that it will recover the costs of below cost sales within a
reasonable period of time, a burden respondent has failed to meet.
Petitioners argue that respondent failed to demonstrate that it could
recover its costs at the model-specific below cost prices. Petitioners
assert that respondent is required to demonstrate how any reduction in
the future cost of production for the products sold below cost would
translate into recovery of costs on those products for prior periods.
(NSK Ltd. v. United States Slip-OP. 95-138 (CIT 1995)) Petitioners
assert that while the determination of what constitutes a reasonable
period of time is the Department's, respondent was also unable to
identify and justify the period of time within which costs could be
recovered and demonstrate that this was a reasonable period of time for
cost recovery.
[[Page 14052]]
Department's Position: Section 773(b) of the Act provides that the
Department will determine whether sales are made at less than the cost
of producing the subject merchandise. If sales made below cost are not
at prices which permit recovery of all costs within a reasonable period
of time in the normal course of trade, such sales shall be disregarded
in determining FMV. What must be demonstrated is that the prices which
are below cost during the POR are at a level such that those prices
would permit not only sufficient revenue to cover future costs, but
also exceed future costs to a degree which permits recovery of past
losses. (See, e.g., Granular Polyethelrafluoroethylene Resin From
Japan, 58 FR 50343, 50346 (1993); Timken Co. V. United States, 673 F.
Supp. 495, 516-17 (CIT 1987)) (Court holding that the term ``prices''
in section 773(b) refers only to prices of below cost sales and not to
prices of above cost sales).
One situation recognized by Congress which might permit recovery of
losses on below cost sales within a reasonable period of time is an
industry, such as the airline industry, which incurs large research and
development costs that cannot be immediately recovered by sales. (See
S. Rep. No. 1298, 93rd Cong., 2d Sess. 173 (1974), reprinted in 1974
U.S. Code Cong. & Admin. News 7188, 7310; Toho Tinanium Co. v. United
States, 670 F. Supp. 1091, 1021 (CIT 1987). The Department's practice
also recognizes that extremely high production costs associated with an
extraordinary event not required for the continuous production of the
merchandise may be recoverable by future sales at the same prices
within a reasonable period of time. (See Porcelain-on-Steel Cooking
Ware From Mexico, 58 FR 32095, 32102 (1993)). The evidence placed on
the record by respondent does not support any such finding.
BHP did submit evidence of the results of certain cost-cutting
measures undertaken by the company during the POR which demonstrates
that total operating costs did decline in that period. BHP points to
this cost reduction as proof that it would be able to offset losses
from below cost sales made during the POR using revenues from
profitable, lower-cost sales made within a reasonable period of time
thereafter. That is, if the company's cost of production declines in
the future below the prices of below cost sales made during the POR,
then those same sales prices may, in the future, allow recoupment of
all costs and past losses.
Much of the information we relied on in analyzing respondent's
claims is proprietary. (See Memo to the File, Cost Recovery
(proprietary version) (February 28, 1996)). Although we found a general
reduction in BHP's total operating costs, as well as a general increase
in productivity and production volume, during the POR, the cost
reductions and productivity/ production increases were not sustained
and, in several instances, actually began to reverse direction during
the POR. This, together with our finding that the prices of the below-
cost sales during the POR were below average POR costs, leads us to
conclude that the information provided by respondent regarding its cost
reduction programs during the POR does not support it contention that
the company's below-cost sales were at prices that would allow recovery
of all costs within a reasonable period of time. Therefore, from a
review of the record evidence, we conclude that BHP's below cost sales
must be disregarded in calculating FMV.
Comment 4: Respondent argues that the Department should use BHP's
reported interest rate to calculate inventory carrying costs and credit
expenses. Respondent asserts that the intra-corporate interest rate it
provided at verification is the Australian equivalent of the U.S. prime
rate, and that the Federal Reserve Bank of Australia Bulletin
(Bulletin) provided at verification reflects the short-term commercial
interest rates (Large Business), which correspond to respondent's
internal interest rates. Respondent notes that the Department in its
analysis memorandum found ``[t]hese rates were not substantially
different from the related-party rates reported by BHP, however, it is
not clear whether these rates represent short- or long-term rates.''
Respondent asserts that the rates listed under the Large Business
column of the Bulletin are a set of rates ``offered by four major
Australian banks,'' and that rate is the Australian equivalent of the
U.S. prime rate, which is a short-term rate by definition. Therefore,
respondent contends that the Department should use the intra-corporate
rate reported by BHP because this interest rate was not substantially
different from the Large Business rate and these rates are short-term
and market-driven.
Petitioners assert that there is no evidence on the record that the
``Large Business'' rate is the Australian equivalent of the U.S. prime
rate, and that from this evidence the Department could not tell whether
or not these rates represent long- or short-term rates. Furthermore,
petitioners argue that it is Department practice not to accept an
intra-corporate rate, since such a lending rate need not reflect
commercial reality in the marketplace. Petitioners contend that the
commercial bill rate selected by the Department is a permissible and
reasonable Best Information Available (BIA) because it represents the
interest rate for 90-day commercial lending in the home market.
Department's Position: We agree with petitioners . It is not the
Department's practice to rely upon intra-corporate lending rates that
are merely intra-company transfers of funds. (See, e.g., Tapered Roller
Bearing and Parts, Thereof, Finished and Unfinished from Japan, 57 FR
4960, 71 (1992) (Comm. 32)). Additionally, even though BHP's intra-
corporate rate was comparable to the Australian ``Large Business''
rate, BHP failed to provide evidence on the record to support its
contention that the Australian ``Large Business'' rate is a short-term
rate. Therefore, for the final results we will continue to use
information on the record regarding the Australian quarterly rates for
commercial bills (90 days) in effect during the POR as quoted in the
OECD's ``Main Economic Indicators'' for May 1995.
Comment 5: Petitioners contend that respondent failed to report an
unknown quantity of U.S. sales by its subsidiary BHP Steel Building
Products (Building Products) of further manufactured merchandise made
from Australian coils subject to review, and that BHP impermissibly
reported only Building Products sales that Building Products could link
to Australian coil tonnage entered during the POR. Petitioners assert
that the Department requires that all ESP sales during the POR be
reported, regardless of whether or not the subject merchandise
(Australian coils) entered before suspension of liquidation.
In addition, petitioners contend that the Department verified that
Building Products did not report all of its sales of subject
merchandise sold during the POR, and that the Department's verification
of the total sales reported did not address the (1) unreported sales of
accessories, (2) intra-company transfers of coil tonnage, and (3)
unaccounted for coil tonnage.
Petitioners claim that all sales made during the POR must be
reported and point to Industrial Belts from Italy, 57 FR 8295, 8296
(1992 1st Review) and Canned Pineapple Fruit from Thailand, 60 FR 29553
(June 5, 1995) to support their position. In Industrial Belts From
Italy petitioners assert that all sales, including sales from
merchandise entered before the POR, were reported and used to ensure
that there was no manipulation of the dumping margin.
[[Page 14053]]
However, petitioners argue that Building Products unilaterally decided
which sales to report. Therefore, the Department should apply a BIA
rate to all of Building Products unreported sales by applying the
higher of (1) the ``second-tier'' margin under its AFBs 1992 partial
BIA methodology, or (2) the highest non-aberrant margin in a given
case.
Respondent asserts that petitioners incorrectly contend that
respondent did not report sales made during the POR from tonnage
sourced from Australia which was in Building Products inventory prior
to the suspension of liquidation, i.e., from coils entered before the
POR. Respondent denies that it decided unilaterally not to report sales
made during the POR which could not be linked to tonnage entered during
the POR. In fact, respondent asserts that sales made from coils in
beginning inventory (i.e., coils in inventory at the beginning of
suspension of liquidation) constituted the bulk of Building Products
reported sales during the POR. Respondent further asserts that all
sales emanating from coils in beginning inventory were reported because
respondent was unable to establish that these coils had, in fact,
entered prior to the suspension of liquidation.
Respondent claims that it identified sales of subject merchandise
(in coil form) in 2 ways; it made a list of all coils in Building
Products inventory at the time of suspension of liquidation, which were
termed beginning inventory, and a list of all coils shipped from
Australia that entered during the POR, which were identified as
liability coils. Respondent asserts that from both of these lists
Building Products then tracked all coils as they moved through
inventory and production and into a particular line item on an invoice,
representing a sale of subject merchandise. Respondent argues that the
Department verified the completeness of Building Products response,
including its reporting of sales made from beginning inventory.
Therefore, respondent argues that petitioner is completely wrong in
claiming that respondent did not report all sales made from Australian
coils, whether or not they entered prior to, or after, suspension of
liquidation.
Additionally, respondent contends that Building Products not being
able to account for all of the weight of the liability coils is not the
result of respondent failing to report all sales from liability coil,
as petitioners argue. Rather, this missing percentage merely reflects
scrap and accessory sales made during the POR, as demonstrated by
verification exhibits, and therefore no sales from liability coils were
missing and not reported.
Moreover, respondent asserts that Building Products had no sales of
accessories which could be identified as being of Australian origin.
Respondent claims that accessory sales are, like scrap, a percentage of
coil used, and that verification exhibits demonstrate that the
percentage of coil weight for accessories approximates that
attributable to scrap. Respondent asserts that when a coil is roll-
formed, portions are lost in the process. This scrap is then collected
and placed in a bin and from this point on the scrap's origin cannot be
identified. Respondent contends that, as with scrap, when a small
portion of a coil is subsequently converted into an accessory item, the
origin of the accessory can no longer be identified. Therefore,
Building Products was unable to identify accessory sales made from
Australian coil.
Department's Position: Except with regard to accessories, we agree
with the respondent that it properly reported all sales made during the
POR. At verification, we confirmed Building Products total sales
universe of its reported sales to the first unrelated party during the
POR. Our review established that Building Products properly linked all
the ESP sales of further-manufactured goods to coils of subject
merchandise from both beginning inventory and from liability coils,
which included inter-company transfers of Australian tonnage.
Additionally, we verified respondents method for ascertaining how
further manufactured goods were produced from Australian subject coil
and how respondents accounted for and sold the merchandise to the first
unrelated party. We found this methodology accurately tracked all
further manufactured sales (See Building Products Verification Report,
May 19, 1995 and Sales Trace Exhibits BP53-BP61). We traced the subject
coil from each sourced point to Building Products records (See
verification Exhibits BP-22 through BP30(a)). In addition, we traced
the linkage establishing total tonnage shipped from Sheet and Coil
Products Division (SCPD) to Building Products (See verification
Exhibits BHP-27 through BHP28), and found that Building Products has
reported all of its sales from Australian sourced tonnage.
In Industrial Belts From Italy the Department indicated that it
would presume that all ESP sales of subject merchandise made during the
POR were from subject merchandise entered after the date of suspension
of liquidation and thus subject to antidumping duties, unless the
respondent could affirmatively demonstrate that particular subject
merchandise sold during the POR was entered prior to the POR. As in
Industrial Belts from Italy, because Building Products was unable to
link any sales with subject merchandise (coil tonnage) that entered the
U.S. prior to the date of suspension of liquidation (February 4, 1993),
all sales during the POR of merchandise made from Australian coils were
reported by respondent. Therefore, we have included all sales made
during the POR in our margin calculation. The Department accepts that
it was impossible for Building Products to link sales of accessories,
which only account for an insignificant portion of total sales, to
particular coils of Australian origin. However, sales of accessories
cannot properly be excluded. Therefore, the Department has treated all
accessories as sales made from Australian-origin coil and has assigned
to those sales the weighted-average margin based on all other sales
made during the POR. (See e.g., AFBs From Germany, 54 FR 18,992, 19,033
(1989); National Steel v. United States, 870 F. Supp. 857 (1994)).
Comment 6: Respondent states that while, in the preliminary
results, the Department denied BHP's claim for a cash (settlement)
discount in the home market, the Department requested updated
information for payment and shipment dates from BHP after the
preliminary results were issued. Pursuant to the Department's
instructions, on September 7, 1995, BHP submitted a computer tape
containing updated payment and shipment dates. Therefore, respondent
asserts that the Department should allow the cash (settlement)
discounts adjustment reported for those sales in the final results.
Petitioners argue that the Department correctly denied the reported
cash discounts for sales for which respondent had not originally
reported a date of payment. Although respondent has since provided
shipment and payment dates for these sales, petitioners argue that the
Department has not verified these dates and the estimated cash discount
amounts reported by respondent. Additionally, petitioners assert that
some of these sales with a certain term of payment were found at
verification by the Department to have been misreported and thus
unverified. Therefore, the Department should not deduct the estimated
cash discounts amounts on any of these sales.
Petitioners also contend that in the preliminary results, the
Department deducted a cash discount with regard to a particular
customer on certain home market sales even though the
[[Page 14054]]
Department verified that no discount was given. Therefore, the
Department must deny cash discounts claimed on these particular home
market sales to this customer.
In rebuttal respondent notes that while it originally reported cash
discounts on certain sales to this particular customer even though it
did not actually grant the discounts, it deleted these cash discounts
from the revised data BHP submitted after the preliminary results were
published. Respondent also notes that this customer failed the arms-
length test so the sales were excluded from the calculation of BHP's
fair market value in any event.
Department's Position: We agree with respondent. In the
Department's preliminary results, we stated that we would request the
updated shipment and payment date information from BHP after the
preliminary results were issued. The Department has analyzed the
information BHP submitted on September 7, 1995, and found the
information to be consistent with the verified information (See, BHP's
Verification Report dated May 23, 1995, p. 17). Therefore, for the
final results the Department will use the updated shipment and payment
date information.
With regard to a cash discount granted at the preliminary results
to a customer who was not eligible to receive a discount, we agree with
respondent that this customer, which did not actually receive the
discount, failed the arms-length test. Therefore, the Department is
excluding its sales from the Department's margin calculation program.
Comment 7: Petitioners allege that because BHP failed to use a
proper U.S. interest rate in the calculation of credit expenses and
inventory carrying costs, in the preliminary results the Department was
forced to use a BIA rate of 3.44 percent, which was the average of the
Federal Reserve Statistical Release one month commercial paper rates.
However, petitioners state that the Department should use the home
market short-term interest as a BIA rate because respondent had no U.S.
borrowings and did not show it had access to U.S. borrowing. Therefore,
in keeping with the Department's practice and the holdings of review
courts, the use of a U.S. interest rate to calculate U.S. credit
expense and inventory carrying costs is not appropriate. (See, Gray
Portland Cement and Clinker From Japan, 60 FR 43761, 67 (1995))
Additionally, petitioners argue that the BIA rate applied by the
Department in the preliminary results was not sufficiently adverse.
Therefore, the Department should use the short-term interest rate BHP
obtained when borrowing in the home market when calculating U.S. credit
expense and inventory carrying costs.
Respondent asserts that it has not advocated use of its home market
interest rate as a surrogate for the U.S. interest rate, as claimed by
petitioners. Respondent contends that the petitioners are incorrect in
claiming that it is the Department's practice to rely upon actual home
market interest rates when a respondent has no U.S. dollar borrowings
and provides no proof that it had access to U.S. borrowings. Rather,
respondent asserts that the Department will now look to external
information to determine an appropriate interest rate even in the
absence of proof of access. (See, Brass Sheet and Strip From Germany,
60 FR 38542, 38545 (1995)) Moreover, respondent argues that, in any
event, it provided evidence that it had access to U.S. borrowings.
Department's Position: When a respondent has no U.S. borrowings, it
is no longer the Department's practice to substitute home market
interest rates when calculating U.S. credit expense and U.S. inventory
carrying costs. Rather, the Department will now match the interest rate
used for credit expenses to the currency in which the sales are
denominated. The Department will use the actual borrowing rates
obtained by a respondent, either directly, or through related
affiliates. Where there is no borrowing in a particular currency, the
Department may use external information about the cost of borrowing in
that currency. (See Brass Sheet and Strip From Germany 60 FR at
38545,46 (1995)) Because respondent did not supply the Department with
an actual U.S. borrowing rate, for the preliminary results, we turned
to external information and applied the average of the Federal Reserve
Statistical Release one-month commercial paper rates in effect during
the POR to calculate U.S. credit expenses and inventory carrying costs.
For the final results, we have reconsidered our use of the
commercial paper rate. BHP provided no evidence that it would have had
access to commercial paper rates in the United States during the POR.
To show access to a U.S. rate, BHP provided the Department a letter
from a U.S. bank stating the prime and LIBOR rates in effect during the
POR. (See Verification Exhibit BT-32) However, this document does not
state that this bank would have lent funds at/above/below these rates
had BHP sought to borrow funds during the POR. This document also does
not speak to the availability of commercial paper rates.
In the absence of U.S. dollar borrowings, we need to arrive at a
reasonable surrogate for imputing U.S. credit expense. There are many
and varied factors that determine at what rate a firm can borrow funds,
such as the size of the firm, its creditworthiness, and its
relationship with the lending bank. Without actual U.S. dollar
borrowings and without substantial evidence on the record indicating
what rates a firm is likely to have received if it had borrowed
dollars, it is impossible to predict the rate at which a company would
have borrowed dollars. Therefore, we chose the average short-term
lending rate as calculated by the Federal Reserve. Each quarter the
Federal Reserve collects data on loans made during the first full week
of the mid-month of each quarter by sampling 340 commercial banks of
all sizes. The sample data are used to estimate the terms of loans
extended during that week at all insured commercial banks. This rate
represents a reasonable surrogate for an actual dollar interest rate
because it is calculated based on actual loans to a variety of actual
customers.
For these reasons, we have recalculated BHP's imputed U.S. credit
expense based on the average lending rate during the POR, as published
by the Federal Reserve. (See the Final Analysis Memorandum for this
review, which is on file in room B-099 of the main building of the
Commerce Department)
Comment 8: Petitioners state that in the preliminary results the
Department erred when it used gross unit price in calculating home
market inventory carrying costs, but used average cost of manufacture
(TCOMU) when it calculated U.S. inventory carrying costs. Petitioners
state it is not the Department's practice to calculate inventory
carrying cost based on cost in the U.S. market and price in the home
market. Petitioners state inventory carrying costs should be compared
on a fair apples-to-apples basis based on cost of the merchandise in
both markets. In addition, petitioners note that the Department erred
in calculating U.S. inventory carrying costs by averaging the cost of
the merchandise rather than using the actual product-specific costs,
because it is the Department's practice to use actual product-specific
costs. Therefore, petitioners argue that the Department should
recalculate inventory carrying cost based on total cost of manufacture
in both markets.
Respondent states that the Department did not calculate U.S.
inventory carrying costs based on
[[Page 14055]]
prices, but based on average costs. Respondent notes that BHP submitted
data in its responses pursuant to that methodology and the data was
verified by the Department. Respondent also states that while gross
price does appear in the Department's program with respect to inventory
carrying cost, it is used (to no effect) only to ``convert'' BHP's
inventory carrying expense, not to calculate it. Respondent argues that
no change is required in the program because the Department did not
calculate inventory carrying cost based upon home market gross unit
price.
Department's Position: We agree with petitioners. Contrary to the
respondent's claim, in the preliminary results the Department erred in
relying upon home market prices in calculating home market carrying
costs, while calculating U.S. inventory carrying costs based on the
cost of manufacture. It is the Department's practice to calculate
inventory carrying costs based on costs of the merchandise in both
markets (See Canned Pineapple Fruit from Thailand, 60 Fed. Reg. 29553
(June 5, 1995)). Moreover, it is our practice to base the calculation
on product-specific rather than average costs (See, Television
Receivers, Monochrome and Color From Japan, 56 FR 38417, 423 (1991)).
Therefore, for the final results the Department will calculate
inventory carrying costs based on the product-specific costs of the
merchandise in both markets.
Comment 9: Petitioners state that in the preliminary results the
Department incorrectly included pre-sale transportation expenses from
the U.S. port to the warehousing and manufacturing operations of BHP
Coated Steel Corporation (Coated) and Building Products as indirect
selling expenses. Petitioners state that on those ESP sales that are
further manufactured, the questionnaire and Department practice require
that these transportation costs be included in the cost of further
manufacture. On ESP sales that are not further manufactured, Section
772(d)(2)(A) of the Act clearly instructs the Department to treat
theses expenses as direct expenses. Accordingly, petitioners argue that
on these sales by Coated and Building Products the pre-sale freight
should be deducted as a cost of manufacture or direct expense.
Department's Position: Section 772(d)(2)(A) requires that the
Department deduct from USP all movement expenses incurred in bringing
the merchandise from the place of shipment in the country of
exportation to the place of delivery in the United States, regardless
of whether sales of the merchandise are purchase price or ESP
transactions. The Department does not treat these movement expenses as
selling expenses, either direct or indirect, such as are incurred
pursuant to section 772(e)(2). (See e.g. Television Receivers,
Monochrome and Color, From Japan, 56 FR 37,078 (1991)); and Sharp
Corporation v. United States, 63 F. 3d 1092 (August 1995)(upholding the
Department's practice of distinguishing U.S. movement expenses from
U.S. selling expenses and of limiting the ESP offset cap in adjusting
FMV to the indirect selling expenses incurred in the U.S. that are
deducted under 772(e)(2).) Therefore, for the final results, the
Department will deduct pre-sale transportation expenses from these ESP
sales that were not further manufactured. We note that for expenses for
the movement of the imported product to the place of further
manufacture prior to sale will be deducted as part of the cost of
further manufacture (See e.g., Stainless Steel Hollow Products From
Sweden, 59 FR 43810, 43813 (1994)).
Comment 10: Petitioners state that in the preliminary results the
Department incorrectly included as indirect selling expenses slitting
and painting costs that BHP Trading, Inc. (Trading) paid to unrelated
parties for certain sales. Petitioners state that because these costs
are directly identified with specific sales these expenses must be
deducted from USP under section 772(d)(2)(A).
Department's Position: Section 772 (e)(3), which states that the
exporter's sales price will be reduced by ``any increased value,
including additional material and labor, resulting from a process of
manufacture or assembly performed on the imported merchandise after the
importation of the merchandise and before its sale to a person who is
not the exporter of the merchandise,'' applies here. Pursuant to that
provision, for the final results, the Department will correct the
margin calculation program and will deduct from ESP Trading's further
processing expenses including slitting and painting costs. For a full
discussion of how we arrived at the total cost of manufacturing of
these further manufactured sales, see the Final Analysis Memorandum for
this review, which is on file in room B-099 of the main building of the
Commerce Department.
Comment 11: For the preliminary results, petitioners state that the
Department had to recalculate U.S. credit expenses because BHP's
inaccurate reporting of payment and shipment dates caused the
Department's margin computer program to calculate incorrect credit
amounts on thousands of sales. Petitioners state that the
miscalculation was caused by BHP reporting a zero in the payment date
field for sales by Building Products, and the reporting of obviously
incorrect shipment dates between June 1995 and December 1999 on sales
by Building Products. Petitioners argue that for the final results the
Department should follow its standard practice of using as BIA the
highest credit cost calculated on any U.S. sale by Building Products
which has a zero entered as the payment date, or an incorrect shipment
date (See, Calcium Aluminate Cement and Cement Clinker From France, 58
FR 58683, 58684 (1993)).
Respondent agrees that certain missing Building Products payment
dates or incorrect shipping dates on its computer tape should be
corrected. However, respondent contends that standard Department
practice is to replace the missing or incorrect data with the weighted-
average credit cost for U.S. sales and cites to Stainless Steel
Threaded Pipe Fittings From Taiwan, 59 FR 10784, 10786 (1994) in
support. Respondent argues that a large number of Building Products
transactions had correctly reported credit expenses which BHP states
supports the accuracy and reliability of a weighted average. Respondent
argues that using the highest credit expense as petitioners call for
would result in a credit expense that will go beyond the highest non-
aberrant rate and, therefore, would not be appropriate. Respondent
argues that if the Department chooses to use BIA, it should use the
partial BIA practice outlined in Anti-Friction Roller Bearings From
France, 57 FR 28360, 28379 (1992).
Department's Position: Before the Department may find non-
compliance on the part of a respondent, there must be a clear and
adequate communication requesting information. See e.g., Daewoo Elecs.
Col v. United States, 712 F. Supp 931, 945 (1985). BHP failed to
provide credit expense data for certain sales in Building Products
database even though the Department provided numerous opportunities to
Building Products to correct its credit expense (See Supplemental
Questionnaires dated December 27, 1994 and February 10, 1995).
The Department applies two types of BIA, partial BIA, which is used
when a respondent's submission is deficient in limited respects, but is
otherwise complete and reliable; and total BIA, which is used for a
respondent who fails to timely respond or whose submission contains
fundamental errors that render the entire submission unreliable. The
[[Page 14056]]
use of partial rather than total BIA reflects the fact that, in
general, the respondent has been cooperative. Thus, it is the nature of
the deficiency, rather than the level of cooperation that the
Department considers in exercising its discretion to select partial
BIA. See e.g., Steel Flat Products From France, 58 FR at 37,129 (1993)
(applying highest margin to certain sales of cooperative respondent);
Ad Hoc Committee v. United States, 865 F. Supp. 857 (1994). In this
review, because respondent failed to provide a substantial portion of
the total credit expense data in its possession, we have used the
highest credit cost calculated on any U.S. sales (See e.g.,
Antifriction Bearings (other Than Tapered Roller Bearings) and Parts
Thereof From France, 60 FR 10900, 10907 (1995) ``AFBs'') (See e.g.,
Calcium Aluminate Cement and Cement Clinker From France, 58 FR 58683,
58684 (1993)).
Comment 12: Petitioners contend that the Department must deduct
antidumping duties paid by the respondent or related party importers.
Section 1677a(d)(1994) states that the purchase price and exporter's
sales price shall be reduced by United States import duties. According
to the petitioners antidumping duties are ``incident to bringing the
subject merchandise from the place of shipment in the country of
exportation to the place of delivery in the United States'' and are
therefore properly classified as import duties. Furthermore,
petitioners claim ``duties'' or ``import duties'' in trade laws are to
be read as antidumping or countervailing duties unless the provision
specifically indicates otherwise.
Petitioners claim that the CIT has never explicitly held that
section 1677 (c)(2)(A) covers actual antidumping duties in addition to
normal import duties, but argue that the court implicitly so held in
Federal-Mogul v. United States, 813 F. Supp. 856,872 (1993).
Petitioners claim that the court distinguished actual antidumping
duties from estimated antidumping duties, which they point to as
support for the notion the actual antidumping duties are part of the
normal import duties to be deducted under section 1677a(d)(2)(A).
Lastly, petitioners claim that language in the legislative history of
the newly enacted Uruguay Round Agreements Act (URAA) which states that
duty absorption is not intended to provide for the treatment of
antidumping duties as cost does not mean that under the new law
antidumping duties cannot be treated as normal duties, that is, as
cost.
Respondent argues that the Department's well-established practice
of not deducting duty as a cost is not only required by law but this
issue is also pending on appeal at the Court of International Trade.
Therefore, respondent asserts it would be inappropriate for the
Department to reverse its practice in this investigation without prior
notice or comment.
Department's Position: While section 772(d)(2)(A) requires the
deduction of normal ``import duties,'' cash deposits of estimated
antidumping duties are not normal import duties, and do not qualify for
deduction under section 772. Contrary to petitioners'' argument, the
CIT in Federal-Mogul v. United States 813 F. Supp. 856, 872 (CIT 1993),
recognized that the actual amounts of normal duties to be assessed upon
liquidation are known because they are based upon rates published in
the Harmonized Tariff Schedule and the actual entered value of the
merchandise. In contrast, deposits of estimated antidumping duties are
based upon past dumping margins and may bear little relation to the
actual current dumping margin. Thus, the CIT recognized the distinction
between estimated antidumping duties and ``normal'' import duties for
purposes of section 772(d)(2(A).
Petitioners' methodology also conflicts with the holding of the CIT
in PQ Corp. v. United States, 652 F. Supp 724 (CIT 1987), in which the
court addressed the issue of deduction of estimated antidumping duties
under section 772(d)(2)(A). The court cited with approval the
Department's policy of not allowing estimated antidumping duties, based
upon past margins, to alter the calculation of present margins. The
court explained ``[i]f deposits of estimated antidumping duties entered
into the calculation of present dumping margins, then those deposits
would work to open up a margin where none otherwise exists.'' Id. At
737.
Petitioners argue at length that the Department should not
distinguish between purchase price and ESP transactions in deducting
antidumping duties. However, because the Department does not deduct
estimated antidumping duties from any transaction, this argument is
inapposite.
The Department agrees with petitioners that statements made in the
URAA are not relevant in this review, which is being conducted under
pre-URAA law.
Comment 13: Petitioners state that the Department's calculation of
Total Cost of Manufacture (TOTCOM) and Total Cost of Production
(TOTCOP) is incorrect as a result of a clerical error and affects the
cost test and the allocation of profit.
Respondent agrees with petitioners that certain clerical errors
were made regarding TOTCOM. Respondent also claims that the Department
made an error in calculating BHP's general and administrative expense.
Department's Position: We agree with petitioners. For the final
results, the Department will correct the calculation of TOTCOM, thereby
correcting the calculation of TOTCOP in section 1 of the margin
calculation program. In addition, we agree with respondent and the
Department will correct its error in calculating BHP's general and
administrative expense.
Comment 14: Petitioners state that the definition of TOTCOP
inadvertently omits the packing costs incurred at SCPD on sales shipped
to BHP's steel service centers throughout Australia. Respondent agrees
with petitioners.
Department's Position: We agree. For the final results, the
Department will incorporate packing costs incurred at SCPD into its
calculation of TOTCOP in section 1 of the margin calculation program.
Comment 15: Petitioners note that Building Products and Trading
reported the quantities of their sales in terms of short tons, while
Coated claimed that it reported its sales in pounds. Petitioners state
that the Department attempted to place all U.S. sales on the same
weight basis by dividing Coated's reported weight by 2000 (lbs/ton).
However, petitioners allege the Department mistakenly applied the
computer code to Trading's sales instead of Coated's sales. In
addition, petitioners state that Coated appears to have actually
reported its quantities in short tons, not in pounds.
Department's Position: We agree. Coated did report its sales on a
short ton basis. Therefore, we will correct our error in the margin
calculation program because there is no need to adjust Coated's sales
to place all U.S. sales on the same weight basis.
Comment 16: Petitioners state that the Department must put the home
market COP and the U.S. further manufacturing costs on the same weight
basis in order to arrive at an accurate allocation of profit on further
manufactured sales. Petitioners note that BHP reported home market cost
on a metric ton basis, while U.S. further manufacturing costs were
reported on a per short ton basis.
Department's Position: We agree. For the final results, the
Department will convert U.S. further manufacturing costs to a metric
ton basis when calculating further manufacturing costs.
[[Page 14057]]
Comment 17: Petitioners state that the Department incorrectly
multiplied the U.S. warranty expenses by the exchange rate on Trading's
U.S. sales twice.
Department's Position: We agree. For the final results, the
Department will correct the margin calculation program.
Comment 18: Petitioners state that the Department mistakenly added
three incorrect programming lines to its standard margin calculation
program which is simply a ministerial error. However, petitioners note
that the middle line should be kept and inserted at different places in
the program.
Respondent asserts that the Department's apportionment of U.S.
selling expenses to U.S. sales in the computer lines in question are
correct. However, to avoid double-counting U.S. selling expenses,
direct and indirect, it is necessary to apply a ratio which counts only
the expenses which have not already been deducted as U.S. further
manufacturing G&A costs.
Department's Position: We agree with petitioners that the
Department in its preliminary results inadvertently included this
language in its computer program. However, we disagree with the
petitioners that the Department should keep the middle line in order to
properly calculate the home market indirect selling expense cap. For
the final results, the Department will drop these three lines from its
computer program. The program as written applies a ratio of U.S.
selling (direct and indirect) expenses, where appropriate, to the ESP
cap and offset section of our programming. The program will not be
double-counting thoses U.S. selling expenses which BHP reported for ESP
transactions with further manufacturing costs. For a full discussion of
how we treated these specific programming changes in this review, see
the Final Analysis Memorandum for this review, which is on file in room
B-099 of the main building of the Commerce Department.
Comment 19: Petitioners state that the U.S. packing costs for all
further manufactured sales are reported in U.S. dollars per short ton.
However, the program incorrectly multiplies these U.S. dollar amounts
by the exchange rate in calculating Foreign Unit Price in Dollars
(FUPDOL).
Department's Position: We agree. For the final results, the
Department will correct section 2 of the margin calculation program and
will not multiply the U.S. packing costs by the exchange rate when
calculating FUPDOL.
Comment 20: Petitioners state that in the preliminary results the
Department applied BIA to sales from Building Products that had missing
customer codes and customer level of trade information. Petitioners
argue that the Department should apply the higher of either the margin
from the investigation, or highest non-aberrant margin to these sales.
Department's Position: For certain sales, Building Products did not
report customer level of trade and customer code in its database.
Therefore, we were unable to match these sales to the home market
database in the preliminary results, and we applied the final weighted-
average margin from the less than fair value (LTFV) investigation as
BIA. However, for the final results, in accordance with AFBs and
Department practice we are using the highest weighted-average margin
from this review for these sales.
Final Results of Review
As a result of this review, we have determined that the following
margin exists for the period February 2, 1993, through July 31, 1994:
------------------------------------------------------------------------
Margin
Manufacturer/Exporter (percent)
------------------------------------------------------------------------
BHP.......................................................... 39.11
------------------------------------------------------------------------
The Department shall determine, and the U.S. Customs Service shall
assess, antidumping duties on all appropriate entries. The Department
shall issue appraisement instructions directly to the Customs Service.
Furthermore, the following deposit requirements shall be effective,
upon publication of this notice of final results of administrative
review, for all shipments of the subject merchandise from Australia
that are entered, or withdrawn from warehouse, for consumption on or
after the publication date, as provided for by section 751(a)(1) of the
Tariff Act: (1) the cash deposit rate for BHP will be the rate
established above; (2) for previously investigated companies not listed
above, the cash deposit rate will continue to be the company-specific
rate published for the most recent period; (3) if the exporter is not a
firm covered in this review, or the original investigation, but the
manufacturer is, the cash deposit rate will be the rate established for
the most recent period for the manufacturer of the merchandise; and (4)
the cash deposit rate for all other manufacturers or exporters will
continue to be 24.96 percent, the all others rate established in the
final results of the less than fair value investigation (58 FR 44161,
August 19, 1993).
The deposit requirements, when imposed, shall remain in effect
until publication of the final results of the next administrative
review.
This notice serves as a final reminder to importers of their
responsibility under 19 CFR 353.26 to file a certificate regarding the
reimbursement of antidumping duties prior to liquidation of the
relevant entries during this review period. Failure to comply with this
requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
This notice serves as the only reminder to parties subject to
administrative protective order (APO) of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with section 353.34(d) of the Department's
regulations. Timely written notification of return/destruction of APO
materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulation and the terms of an
APO is a sanctionable violation.
This administrative review and notice are in accordance with
section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)) and 19 CFR 353.22.
Dated: March 20, 1996.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 96-7615 Filed 3-28-96; 8:45 am]
BILLING CODE 3510-DS-P
