[Federal Register Volume 59, Number 122 (Monday, June 27, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15534]
[[Page Unknown]]
[Federal Register: June 27, 1994]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-821-807]
Notice of Initiation of Antidumping Duty Investigation:
Ferrovanadium and Nitrided Vanadium From the Russian Federation
AGENCY: Import Administration, International Trade Administration,
Commerce.
EFFECTIVE DATE: June 27, 1994.
FOR FURTHER INFORMATION CONTACT:
Michelle Frederick or David Goldberger, Office of Antidumping
Investigations, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, N.W., Washington, D.C., 20230; telephone (202)
482-0186 or 482-4136.
Initation of Investigation
The Petition
On May 31, 1994, we received a petition filed in proper form by
Shieldalloy Metallurgical Corporation (``Shieldalloy''). In accordance
with 19 CFR 353.12, petitioner alleges that imports of ferrovanadium
and nitrided vanadium from the Russian Federation are being, or are
likely to be, sold in the United States at less than fair value within
the meaning of section 731 of the Tariff Act of 1930, as amended (``the
Act''), and that such imports are materially injuring, or threaten
material injury to, a U.S. industry.
Petitioner states that it has standing to file the petition because
it is a domestic industry producing the produce subject to this
investigation. If any interested party, as described under paragraphs
(C), (D), (E), or (F) of section 771(9) of the Act, wishes to register
support for, or opposition to, this petition, it should file a written
notification with the Assistant Secretary for Import Administration.
Scope of Investigation
The products covered by this investigation are imports of
ferrovanadium and nitrided vanadium, regardless of grade, chemistry,
form, shape, or size, unless expressly excluded from the scope of this
investigation. Ferrovanadium includes alloys containing vanadium as the
predominant element, by weight (i.e. more weight than any other
element, except iron in some instances), and at least 4 percent, by
weight, of iron. Nitrided vanadium includes alloys containing vanadium
as the predominant element, by weight, and at least 5 percent, by
weight, of nitrogen. Excluded from the scope of this investigation are
vanadium additives other than ferrovanadium and nitrided vanadium, such
as vanadium-aluminum master alloys, vanadium chemicals, vanadium waste
and scrap, vanadium-bearing raw materials such as slag, boiler
residues, and fly ash, and vanadium oxides.
The products subject to this investigation are classifiable under
subheadings 7202.92.00 and 2850.00.20 of the Harmonized Tariff Schedule
of the United States (``HTSUS''). Although the HTSUS subheadings are
provided for convenience and customs purposes, our written description
of the scope is dispositive.
United States Price and Foreign Market Value
Petitoner based United States Price (USP) on price quotes to U.S.
customers, and made adjustments for distributor mark-ups and movement
expenses.
Petitioner contends that the foreign market value (FMV) of Russian-
produced imports subject to this investigation must be determined in
accordance with section 773(c) of the Act, which concerns non-market
economy (NME) countries. The Russian Federation is presumed to be an
NME within the meaning of section 771(18)(C) of the Act, because the
Department has treated it as such in previous investigations (See,
e.g., Final Determination of Sales at Less Than Fair Value:
Ferrosilicon from the Russian Federation, 58 FR 29192 (May 19, 1993)).
In accordance with section 773(c) of the Act, foreign market value
(FMV) in NME cases is based on NME producers' factors of production, as
valued in a market economy country. Absent evidence that a particular
NME country government determines which of its factories shall produce
for export to the United States, we intend, for purposes of this
investigation, to base FMV only on those factories that produced
ferrovanadium and/or nitrided vanadium sold to the United States during
the period of investigation (POI).
In the course of this investigation, parties will have the
opportunity to address this NME determination and provide relevant
information and argument on this issue. In addition, parties will have
the opportunity in this investigation to submit comments on whether FMV
should be based on prices or costs in the respective NME.
Petitioner calculated FMV on the basis of the valuation of the
factors of production. The factors of production used by petitioner
were based on experience at a German factory, related to the
petitioner, which uses a production process similar to that used in
Russia. Petitioner's FMV consisted of the sum of raw materials: labor,
energy, utilities, overhead, general expenses, profit and packing.
To value the factors of production, petitioner, citing an August
11, 1992, memorandum from the Import Administration Office of Policy to
David L. Binder with regard to Ferrosilicon from Russia, used Brazil as
the surrogate country and relied on information obtained by a related
party in Brazil. Where it could not obtain Brazilian data, petitioner
used information on South Africa, as South Africa was also mentioned as
a possible surrogate for Russia in the August 11, 1992, memorandum.
Petitioner relied on the Brazilian related party's labor rate data
instead of publicly available, published information because it
contended that the public data were obsolete and/or less accurate.
Because the Department has a clear preference for the use of publicly
available, published information, and petitioner did not demonstrate
conclusively that its reported labor rates were superior to the
publicly available information, we have recalculated FMV using the
labor rate submitted in the petition of Pure and Alloy Magnesium from
the Russian Federation, which is based on a publicly available,
published cost index for Brazil.
Fair Value Comparisons
Based on the information contained on the petition and subsequent
amendments, comparisons of USP and FMV result in alleged dumping
margins of 92.6 to 108 percent.
Initiation of Investigation
We have examined the petition on ferrovanadium and nitrided
vanadium and have found that it meets the requirements of section
732(b) of the Act. Therefore, we are initiating an antidumping duty
investigation to determine whether imports of ferrovanadium and
nitrided vanadium from the Russian Federation are being, or are likely
to be, sold in the United States at less than fair value.
ITC Notification
Section 732(d) of the Act requires us to notify the International
Trade Commission (ITC) of these actions, and we have done so.
Preliminary Determination by the ITC
The ITC will determine by July 15, 1994, whether there is a
reasonable indication that imports of ferrovanadium and nitrided
vanadium from the Russian Federation are materially injuring, or
threaten material injury to, a U.S. industry. Any ITC determination
which is negative will result in the termination of the investigation;
otherwise, this investigation will proceed according to statutory and
regulatory time limits.
This notice is published pursuant to section 732(c)(2) of the Act
and 19 CFR 353.13(b).
Dated: June 20, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-15534 Filed 6-22-94; 8:45 am]
BILLING CODE 3510-DS-M
