99-21568. Certain Corrosion-Resistant Carbon Steel Flat Products and Certain Cut-to-Length Carbon Steel Plate From Canada: Preliminary Results of Antidumping Duty Administrative Reviews, Intent To Revoke in Part, Intent Not to Revoke in Part, and ...  

  • [Federal Register Volume 64, Number 160 (Thursday, August 19, 1999)]
    [Notices]
    [Pages 45228-45236]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-21568]
    
    
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    DEPARTMENT OF COMMERCE
    
    International Trade Administration
    [A-122-822, A-122-823]
    
    
    Certain Corrosion-Resistant Carbon Steel Flat Products and 
    Certain Cut-to-Length Carbon Steel Plate From Canada: Preliminary 
    Results of Antidumping Duty Administrative Reviews, Intent To Revoke in 
    Part, Intent Not to Revoke in Part, and Rescission of Review in Part
    
    AGENCY: Import Administration, International Trade Administration, U.S. 
    Department of Commerce.
    
    ACTION: Notice of preliminary results of the antidumping duty 
    administrative review, intent to revoke in part, intent not to revoke 
    in part, and rescission of review in part.
    
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    SUMMARY: In response to requests from interested parties, the 
    Department of Commerce (the Department) is conducting administrative 
    reviews of the antidumping duty orders on certain corrosion-resistant 
    carbon steel flat products and certain cut-to-length carbon steel plate 
    from Canada. These reviews cover four manufacturers/exporters of 
    corrosion resistant steel and two manufacturers/exporters of cut-to-
    length steel plate (one respondent manufactured both products), and the 
    period August 1, 1997 through July 31, 1998.
        We have preliminarily determined that sales have been made below 
    normal value (``NV'') by various companies subject to these reviews. 
    See ``Preliminary Results of Reviews'' section below for the company-
    specific rates. If these preliminary results are adopted in our final 
    results of these administrative reviews, we will instruct the U.S. 
    Customs Service to assess antidumping duties based on the difference 
    between the export price (``EP'') or constructed export price (``CEP'') 
    and the NV.
    
    EFFECTIVE DATE: August 19, 1999.
    
    FOR FURTHER INFORMATION CONTACT: Gideon Katz at (202) 482-4255 (Dofasco 
    Inc. and Sorevco Inc. (collectively, ``Dofasco'')), Sarah Ellerman at 
    (202) 482-4106 (Continuous Colour Coat (``CCC'')), Mark Hoadley at 
    (202) 482-0666 (Gerdau MRM Steel (``MRM''), National Steel Co. 
    (``National''), and Algoma Steel Co. (``Algoma'')), Elfi Blum at (202) 
    482-0197 (Stelco, Inc.(``Stelco'')), or Maureen Flannery at (202) 482-
    3020, Import Administration, International Trade Administration, U.S. 
    Department of Commerce, 14th Street and Constitution Avenue, N.W., 
    Washington, DC 20230.
    
    SUPPLEMENTARY INFORMATION:
    
    The Applicable Statute
    
        Unless otherwise indicated, all citations to the Tariff Act of 
    1930, as amended (the Act), are 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's regulations are to 19 CFR 
    part 351 (April 1998).
    
    Background
    
        On August 19, 1993, the Department published in the Federal 
    Register (58 FR 44162) the antidumping duty orders on certain 
    corrosion-resistant carbon steel flat products and certain cut-to-
    length carbon steel plate from Canada. On August 21, 1998, MRM 
    requested a review of its exports of cut-to-length steel plate and 
    requested that the Department revoke the order on cut-to-length steel 
    plate as it pertains to MRM. On August 31, 1998, Stelco requested a 
    review of its exports of cut-to-length steel plate and that the 
    Department revoke the order on cut-to-length steel plate as it pertains 
    to Stelco. On August 31, 1998, National, Dofasco, Stelco, and CCC 
    requested a review of their exports of corrosion-resistant steel, and 
    Algoma requested a review of its exports of cut-to-length carbon steel 
    plate.
        On August 31, 1998, Bethlehem Steel Corporation, U.S. Steel Group 
    (a unit of USX Corporation), Inland Steel Industries, Inc., Gulf States 
    Steel Inc. of Alabama, Sharon Steel Corporation, Geneva Steel, and 
    Lukens Steel Company, petitioners, requested reviews of Algoma and 
    Stelco exports of cut-to-length carbon steel plate.
        On August 31, 1998, Bethlehem Steel Corporation, U.S. Steel Group, 
    Inland Steel Industries, Inc., AK Steel Corporation, LTV Steel Co., 
    Inc., and National Steel Corporation, petitioners, requested reviews of 
    CCC, Dofasco, and Stelco exports of corrosion-resistant carbon steel 
    flat products.
        On September 29, 1998, in accordance with section 751 of the Act, 
    we published a notice of initiation of administrative reviews of these 
    orders for the period August 1, 1997 through July 31, 1998 (62 FR 
    50292).
        Under section 751(a)(3)(A) of the Act, the Department may extend 
    the deadline for completion of an administrative review if it 
    determines that it is not practicable to complete the review within the 
    statutory time limit of 365 days. On February 26, 1999, the Department 
    published a notice of extension of the time limit for the preliminary 
    results in the review to July 30, 1999. See Corrosion-Resistant Carbon 
    Steel Flat Products and Cut-to-Length Carbon Steel Plate: Extension of 
    Time Limits for Preliminary Results of Antidumping Administrative 
    Review, 64 FR 9475.
        On July 30, 1999, the Department published a second notice of 
    extension of the time limit for the preliminary results in the review 
    from July 30, 1999 to August 6, 1999. See Certain Corrosion-Resistant 
    Carbon Steel Flat Products and Certain Cut-to-Length Carbon Steel Plate 
    From Canada: Extension of Time Limits for Preliminary Results of 
    Antidumping Administrative Review, 64 FR 42338.
        On August 6, 1999 the Department extended the time limits for the 
    Preliminary Results in the review to August 16, 1999. See Certain 
    Corrosion-Resistant Carbon Steel Flat Products and Certain Cut-to-
    Length Carbon Steel Plate From Canada: Extension of Time Limits for 
    Preliminary Results of Antidumping Administrative Review, 64 FR 43984.
        The Department is conducting these reviews in accordance with 
    section 751(a) of the Act.
    
    Scope of Reviews
    
        The products covered by these administrative reviews constitute two 
    separate ``classes or kinds'' of merchandise: (1) certain corrosion-
    resistant carbon steel flat products, and (2) certain cut-to-length 
    carbon steel plate.
        The first class or kind, certain corrosion-resistant steel, 
    includes 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
    
    [[Page 45229]]
    
    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 Harmonized Tariff Schedule (HTS) under 
    item numbers 7210.30.0030, 7210.30.0060, 7210.41.0000, 7210.49.0030, 
    7210.49.0090, 7210.61.0000, 7210.69.0000, 7210.70.6030, 7210.70.6060, 
    7210.70.6090, 7210.90.1000, 7210.90.6000, 7210.90.9000, 7212.20.0000, 
    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, 7215.90.3000, 
    7215.90.5000, 7217.20.1500, 7217.30.1530, 7217.30.1560, 7217.90.1000, 
    7217.90.5030, 7217.90.5060, and 7217.90.5090. Included in this review 
    are corrosion-resistant flat-rolled products of non-rectangular cross-
    section where such cross-section is achieved subsequent to the rolling 
    process (i.e., products which have been ``worked after rolling'')--for 
    example, products which have been beveled or rounded at the edges. 
    Excluded from this review 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 from this review 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 from this review 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 product clad on both sides 
    with stainless steel in a 20%-60%-20% ratio.
        The second class or kind, certain cut-to-length plate, includes 
    hot-rolled carbon steel universal mill plates (i.e., flat-rolled 
    products rolled on four faces or in a closed box pass, of a width 
    exceeding 150 millimeters but not exceeding 1,250 millimeters and of a 
    thickness of not less than 4 millimeters, not in coils and without 
    patterns in relief), of rectangular shape, neither clad, plated nor 
    coated with metal, whether or not painted, varnished, or coated with 
    plastics or other nonmetallic substances; and certain hot-rolled carbon 
    steel flat-rolled products in straight lengths, of rectangular shape, 
    hot rolled, neither clad, plated, nor coated with metal, whether or not 
    painted, varnished, or coated with plastics or other nonmetallic 
    substances, 4.75 millimeters or more in thickness and of a width which 
    exceeds 150 millimeters and measures at least twice the thickness, as 
    currently classifiable in the HTS under item numbers 7208.40.3030, 
    7208.40.3060, 7208.51.0030, 7208.51.0045, 7208.51.0060, 7208.52.0000, 
    7208.53.0000, 7208.90.0000, 7210.70.3000, 7210.90.9000, 7211.13.0000, 
    7211.14.0030, 7211.14.0045, 7211.90.0000, 7212.40.1000, 7212.40.5000, 
    and 7212.50.0000. Included in this review are flat-rolled products of 
    non-rectangular cross-section where such cross-section is achieved 
    subsequent to the rolling process (i.e., products which have been 
    ``worked after rolling'')--for example, products which have been 
    beveled or rounded at the edges. Excluded from this review is grade X-
    70 plate. Also excluded is cut-to-length carbon steel plate meeting the 
    following criteria: (1) 100% dry steel plates, virgin steel, no scrap 
    content (free of Cobalt-60 and other radioactive nuclides); (2) .290 
    inches maximum thickness, plus 0.0, minus .030 inches; (3) 48.00 inch 
    wide, plus .05, minus 0.0 inches; (4) 10 foot lengths, plus 0.5, minus 
    0.0 inches; (5) flatness, plus/minus 0.5 inch over 10 feet; (6) AISI 
    1006; (7) tension leveled; (8) pickled and oiled; and (9) carbon 
    content, 0.03 to 0.08 (maximum).
        With respect to both classes or kinds, the HTS item numbers are 
    provided for convenience and Customs purposes. The written description 
    remains dispositive of the scope of these reviews.
    
    Verification
    
        As provided in section 782(i) of the Act, we verified information 
    provided by MRM (cost and sales), Dofasco (cost and sales), and Stelco 
    (sales for plate, cost for both corrosion-resistant and plate) using 
    standard verification procedures, including on-site inspections of the 
    manufacturers' facilities and the examination of relevant sales and 
    financial records. Our verification results are outlined in public 
    versions of the verification reports on file with the Central Records 
    Unit, in room B-099 of the Herbert C. Hoover Building.
    
    Product Comparisons
    
        In accordance with section 771(16) of the Act, we considered all 
    products produced by the respondents that are covered by the 
    description in the Scope of Reviews section above and sold in the home 
    market during the period of review (POR) 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 most 
    similar foreign like product on the basis of the characteristics listed 
    in Appendix V of the Department's September 19, 1998 antidumping 
    questionnaires.
    
    Fair Value Comparisons
    
        To determine whether sales of subject merchandise to the United 
    States were made at less than fair value, we compared the EP or the CEP 
    to NV, as described in the ``United States Price'' and ``Normal Value'' 
    sections of this notice. In accordance with section 777A(d)(2) of the 
    Act, we calculated monthly weighted-average prices for NV and compared 
    these to individual U.S. transaction prices.
    
    Rescission of Review for Algoma
    
        In Certain Corrosion-Resistant Carbon Steel Flat Products and 
    Certain Cut-to-Length Carbon Steel Plate from Canada: Final Results of 
    Antidumping Duty Administrative Reviews and Determination to Revoke in 
    Part, 64 FR 2173 (January 13, 1999) (``Canadian Steel 4th''), the 
    Department revoked the order on cut-to-length steel plate as it 
    pertains to Algoma. Before the Department's determination had been 
    finalized, however, we had already initiated our review, at the request 
    of both Algoma and petitioners, of Algoma's exports of cut-to-length 
    plate to the United States for the period August 1, 1997 through July 
    31, 1998. We now rescind this review insofar as it pertains to Algoma.
    
    Intent To Revoke (MRM) and Intent Not to Revoke (Stelco)
    
        On August 31, 1998, and August 21, 1998, respectively, Stelco and 
    MRM submitted requests, in accordance with 19 CFR 351.222(b), that the 
    Department revoke the order covering cut-to-length carbon steel plate 
    from Canada with respect to their sales of this merchandise.
        In accordance with 19 CFR 351.222(b)(2)(iii), these requests were 
    accompanied by certifications from Stelco and MRM that they had not 
    sold the subject merchandise at less than NV for a three-year period, 
    including this
    
    [[Page 45230]]
    
    review period, and would not do so in the future. The Department 
    conducted verifications of Stelco's and of MRM's responses for this 
    period of review.
        Prior to considering whether it is appropriate to revoke an order 
    pursuant to 19 CFR 351.222(b)(2), the Department ``must be satisfied 
    that, during each of the three (or five) years, there were exports to 
    the United States in commercial quantities of the subject merchandise 
    to which a revocation or termination will apply.'' 19 CFR 351.222(d)(1) 
    (emphasis added). In other words, the Department must be satisfied that 
    the company participated meaningfully in the U.S. market during each of 
    the three years at issue, and that past margins are reflective of a 
    company's normal commercial activity. See Canadian Steel 4th; see also 
    Pure Magnesium from Canada: Preliminary Results of Antidumping 
    Administrative Review and Notice of Intent Not To Revoke Order in Part, 
    63 FR 26147 (May 12, 1998).
        Based on the current record, we preliminarily find that Stelco did 
    not sell merchandise in the United States in commercial quantities 
    during the current administrative review (one of the three consecutive 
    review periods cited by Stelco to support its request for revocation). 
    Stelco made only a few sales totaling 47 tons 1 of subject 
    merchandise in the United States during the POR. By contrast, during 
    the period covered by the antidumping investigation, which was only six 
    months long, Stelco made several thousand sales totaling approximately 
    30,000 tons.2 In other words, Stelco's sales for the entire 
    year of the current POR amount to only 0.173 percent of its sales 
    volume during the six months covered by the investigation. Similarly, 
    during the previous POR Stelco sold approximately 2,000 tons of subject 
    merchandise in the United States. While this amount is small in 
    comparison to the amount sold prior to issuance of the order, it is 
    over 40 times greater than the amount sold during the period covered by 
    the current administrative review.
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        \1\ Stelco's response (public version) to Section A of the 
    Department's questionnaire in the current administrative review of 
    cut-to-length carbon steel products from Canada (Oct. 26, 1998) at 
    Exhibit A-1.
        \2\ Stelco's response (public version) to Section A of the 
    Department's questionnaire in the antidumping duty investigations of 
    certain flat carbon steel (cut-to-length plate) products from Canada 
    (Sep. 11, 1992) at Exhibit 1.
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        Because of our preliminary finding that, in the instant period of 
    review, Stelco did not sell subject merchandise in the United States in 
    commercial quantities, we preliminarily determine that Stelco does not 
    qualify for revocation from the order on steel plate under sections 
    351.222 (b) and (d)(1).
        We preliminarily determine that MRM's aggregate sales were made in 
    commercial quantities over the course of its three consecutive review 
    periods of zero margins. See Memorandum to the File: Analysis 
    Memorandum for the Preliminary Results of Review for MRM (August 12, 
    1999). Thus, we preliminarily determine that MRM qualifies for a review 
    of whether the order on steel plate should be revoked as to sales of 
    its products.
        Pursuant to 19 CFR 351.222(b)(2), in determining whether to revoke 
    an antidumping order in part, (1) we must conclude that the company has 
    sold subject merchandise at not less than normal value to the United 
    States for three consecutive review periods, (2) we must conclude that 
    it is not likely that the companies eligible for revocation will in the 
    future sell the subject merchandise at less than NV, and (3) the 
    company must agree to the immediate reinstatement of the order if the 
    Department concludes that the company, subsequent to the revocation, 
    has sold the subject merchandise at less than NV.
        MRM has satisfied the three prongs of 19 CFR 351.222(b)(2). In the 
    two prior reviews of this order, we determined that MRM sold cut-to-
    length carbon steel plate from Canada at not less than NV. As discussed 
    in detail below, we preliminarily determine that MRM sold cut-to-length 
    carbon steel plate at not less than NV during this review period.
        Moreover, the Department's policy in the past has been that, in the 
    absence of evidence to the contrary, three consecutive review periods 
    with no dumping margins is evidence that it is not likely that a 
    company eligible for revocation will in the future sell the subject 
    merchandise at less than NV. See Dynamic Random Access Memory 
    Semiconductors of One Megabyte or Above From the Republic of Korea, 
    Notice of Final Results of Antidumping Duty Administrative Review and 
    Determination Not To Revoke Order In Part, 62 FR 39809, 39810 (July 24, 
    1997). There is no evidence on the record, other than MRM's history of 
    zero margins over the past three review periods, indicating MRM's 
    likelihood to sell at less than NV in the future.
        Finally, MRM agreed to the order's immediate reinstatement as it 
    pertains to its sales, as long as any firm is subject to the order, if 
    the Department concludes under 19 CFR 351.216 that, subsequent to 
    revocation, it has sold the subject merchandise at less than NV. Since 
    we preliminarily conclude that all criteria for revocation have been 
    satisfied, we intend to revoke the order as to MRM.
    
    Duty Absorption
    
        On October 28, 1998, the petitioners requested that the Department 
    determine whether antidumping duties had been absorbed during the POR 
    for corrosion-resistant steel for Dofasco, CCC, and Stelco, and for 
    cut-to-length plate for MRM and Stelco. Section 751(a)(4) of the Act 
    provides for the Department, if requested, to determine during an 
    administrative review initiated two or four years after publication of 
    the order, whether antidumping duties have been absorbed by a foreign 
    producer or exporter, if the subject merchandise is sold in the United 
    States through an affiliated importer. In this case, Dofasco, CCC, MRM, 
    and Stelco sold to the United States through an affiliated importer.
        Section 351.213(j)(2) of the Department's regulations provides that 
    for transition orders (i.e., orders in effect on January 1, 1995), the 
    Department will conduct duty absorption reviews, if requested, for 
    administrative reviews initiated in 1996 or 1998. Because the order 
    underlying this review was issued prior to January 1, 1995, and this 
    review was initiated in 1998, we will make a duty absorption 
    determination in this segment of the proceeding.
        We have preliminarily determined that there is no dumping margin on 
    any of MRM's and Stelco's U.S. sales of cut-to-length plate during the 
    POR. Therefore, we preliminarily find that antidumping duties have not 
    been absorbed by MRM and Stelco on their U.S. sales of cut-to-length 
    plate.
        We have preliminarily determined that there is a de minimis margin 
    on Dofasco's U.S. sales of corrosion-resistant steel during the POR. 
    Therefore, we preliminarily find that antidumping duties have not been 
    absorbed by Dofasco on its U.S. sales of corrosion-resistant steel. 
    Also for corrosion-resistant steel, there is no evidence on the record 
    that unaffiliated purchasers of subject merchandise sold by CCC and 
    Stelco will ultimately pay the antidumping duties to be assessed on 
    entries during the review period. Accordingly, based on the record, we 
    cannot conclude that the unaffiliated purchasers in the United States 
    will pay the ultimately assessed duty. Therefore, we preliminarily find 
    that for CCC's and Stelco's sales of corrosion-resistant steel, 
    antidumping duties have been absorbed by the producer or exporter 
    during the POR. We will request that all the above companies place on 
    the record evidence that unaffiliated
    
    [[Page 45231]]
    
    purchasers will ultimately pay the antidumping duties to be assessed on 
    entries during the review period for the respective class or kind of 
    merchandise.
    
    United States Price
    
        For United States price, we used EP when the subject merchandise 
    was sold directly or indirectly to the first unaffiliated purchaser in 
    the United States prior to importation and CEP was not otherwise 
    warranted by facts on the record.
    
    CCC
    
        The Department calculated EP for CCC based on packed, prepaid or 
    delivered prices to customers in the United States. We made deductions 
    from the starting price, net of discounts and price adjustments, for 
    movement expenses (foreign and U.S. freight, brokerage and handling, 
    and U.S. Customs duties), in accordance with section 772(c)(2) of the 
    Act.
        We have determined to treat certain payments, which CCC reported as 
    ``credit notes,'' as price adjustments which should be excluded from 
    the starting price. See Memorandum to the File: Analysis Memorandum for 
    the Preliminary Results of Review for CCC (August 12, 1999).
        It is the Department's standard practice to use the invoice date as 
    the date of sale; we may, however, use a date other than the invoice 
    date if we are satisfied that a different date better reflects the date 
    on which the exporter or producer establishes the material terms of 
    sale. See 19 CFR 351.401(i). Our questionnaire instructed CCC to report 
    the date of invoice as the date of sale; it also stated, however, that 
    for EP sales ``(t)he date of sale cannot occur after the date of 
    shipment.'' Therefore, we used date of invoice as date of sale, but, in 
    some instances, when shipment date preceded invoice date, we used the 
    date of shipment.
    
    Dofasco
    
        For purposes of these reviews, we treated Dofasco, Inc. and 
    Sorevco, Inc. as one respondent, as we have done in prior segments of 
    the proceeding. See, e.g., Certain Corrosion-Resistant Carbon Steel 
    Flat Products from Canada: Final Determination of Sales at Less than 
    Fair Value, 58 FR 37099 (1993), and Canadian Steel 4th.
        The Department calculated EP for Dofasco based on packed, prepaid 
    or delivered prices to customers in the United States. We made 
    deductions from the starting price, net of discounts and rebates, for 
    movement expenses (foreign and U.S. movement, and post-sale 
    warehousing) in accordance with section 772(c)(2) of the Act. As 
    discussed in prior reviews, certain Dofasco sales have undergone minor 
    further processing in the United States as a condition of sale to the 
    customer. See Certain Corrosion-Resistant Carbon Steel Flat Products 
    and Certain Cut-to-Length Carbon Steel Plate From Canada: Final Results 
    of Antidumping Duty Administrative Reviews, 62 FR 18461 (April 15, 
    1997). In order to determine the value of subject merchandise at the 
    time of exportation of such merchandise to the United States, the 
    Department has deducted the price charged to Dofasco for this minor 
    further processing from gross unit price to determine U.S. price.
        It is the Department's current practice normally to use the invoice 
    date as the date of sale; we may, however, use a date other than the 
    invoice date if we are satisfied that a different date better reflects 
    the date on which the exporter or producer establishes the material 
    terms of sale. See 19 CFR 351.401(i) (62 FR at 27411). Our 
    questionnaire instructed Dofasco to report the date of invoice as the 
    date of sale; it also stated, however, for EP sales, that ``(t)he date 
    of sale cannot occur after the date of shipment.'' In this review, 
    Dofasco's date of shipment in many instances preceded the date of 
    invoice, and therefore we cannot use the date of invoice as the 
    regulations prescribe. Accordingly, as provided for in 19 CFR 
    351.401(i) of the regulations, we used the dates of sale described 
    below. These sale dates reflect the dates on which the exporter or 
    producer established the material terms of sale. We used the date of 
    order acknowledgment as date of sale, as reported by Dofasco for all 
    Dofasco sales in both the U.S. market and the home market, except for 
    sales made pursuant to long-term contracts. For Dofasco's sales made 
    pursuant to long-term contracts, we used date of the contract as date 
    of sale. In the rare instance of a rush order, we used the date of 
    shipment as date of sale if a coil was shipped before it was 
    acknowledged. We also used shipment date for sales of secondary 
    products for which there is no order acknowledgment. If there was a 
    change in price, we used the date of Dofasco's order reacknowledgement 
    as date of sale.
        We used the date of order confirmation as the date of sale, as 
    reported by Sorevco Inc. (``Sorevco'') for its sales in the home 
    market, except when Sorevco shipped more merchandise than the customer 
    originally ordered, and such overages were in excess of accepted 
    industry tolerances. For those sales we used date of shipment as date 
    of sale.
    
    MRM
    
        The Department calculated EP for MRM based on packed, prepaid or 
    delivered prices to customers in the United States. We made deductions 
    from the starting price for movement expenses (foreign and U.S. 
    movement, brokerage and handling, and U.S. Customs duties) and U.S. 
    selling commissions pursuant to section 772(c)(2) of the Act.
        In accordance with standard Department practice, we used date of 
    invoice as date of sale for MRM's U.S. and home market sales. See 19 
    CFR 351.401(i).
    
    National
    
        The Department calculated CEP (there were no EP sales) for National 
    based on packed, prepaid or delivered prices to customers in the United 
    States.3 We made deductions from the starting price, net of 
    discounts and billing adjustments, for movement expenses (foreign and 
    U.S. freight, warehousing, insurance, brokerage and handling, and U.S. 
    Customs duties), pursuant to section 772(c)(2) of the Act.
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        \3\ National, a U.S.-based corporation, ships steel flat 
    products to the United States through its partially owned Canadian 
    subsidiary, DNN Galvanizing Corp (``DNN''). DNN, under a tolling 
    agreement, galvanizes National's steel flat products, which leads to 
    their categorization as subject merchandise. National, however, 
    provided U.S. selling functions for these products, and thus, we 
    considered them to be CEP sales.
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        National sold goods in the United States with and without U.S. 
    further manufacturing. Where appropriate, the Department reduced CEP by 
    National's costs of further manufacturing its goods in the United 
    States, in accordance with section 772(d)(2).
        In accordance with section 772(d)(1) of the Act, we further reduced 
    CEP by direct selling expenses (credit, warranty, and technical service 
    expenses), indirect selling expenses, and inventory carrying costs. 
    Finally, we made an adjustment for an amount of profit allocated to 
    selling expenses incurred in the United States, in accordance with 
    section 772(d)(3) of the Act.
        In this review period, National's date of shipment always either 
    was the same as or preceded the date of invoice, and, therefore, we 
    have chosen to use date of shipment as date of sale.
    
    Stelco
    
        Corrosion-resistant steel: We calculated EP based on the packed, 
    prepaid or delivered prices to unaffiliated purchasers in the United 
    States. We made deductions from the starting price for movement 
    expenses, including foreign and U.S. freight,
    
    [[Page 45232]]
    
    brokerage and handling, and U.S. Customs duties, and for discounts and 
    rebates, in accordance with section 772(c)(2) of the Act.
        Plate: We calculated EP based on the packed, prepaid or delivered 
    prices to unaffiliated purchasers in the United States. We made 
    deductions for movement expenses, including foreign and U.S. freight, 
    brokerage and handling, and U.S. Customs duties, in accordance with 
    section 772(c)(2) of the Act.
        In accordance with standard Department practice, we used date of 
    invoice as date of sale for both corrosion-resistant steel and cut-to-
    length plate for Stelco's U.S. and home market sales. Only in the event 
    where shipment date was before invoice date did we use the date of 
    shipment.
    
    Normal Value
    
        The Department determines the viability of the home market as the 
    comparison market by comparing the aggregate quantity of home market 
    and U.S. sales. We found that each company's quantity of sales in its 
    home market exceeded five percent of its sales to the United States for 
    the relevant class or kind of merchandise. We, therefore, have 
    determined that each company's home market sales are viable for 
    purposes of comparison with sales of the subject merchandise to the 
    United States, pursuant to section 773(a)(1)(C) of the Act. Moreover, 
    there is no evidence on the record supporting a particular market 
    situation in the exporting companies' country that would not permit a 
    proper comparison of home market and U.S. prices. Therefore, in 
    accordance with section 773(a)(1)(B)(i) of the Act, we based NV on the 
    price at which the foreign like product was first sold for consumption 
    in the home market, in the usual commercial quantities and in the 
    ordinary course of trade and, to the extent practicable, at the same 
    level of trade as the EP or CEP sale.
        In accordance with section 773(a)(4) of the Act, except for 
    National, we used CV as the basis for NV when there were no above-cost 
    contemporaneous sales of identical or similar merchandise in the 
    comparison market. We calculated CV in accordance with section 773(e) 
    of the Act. We included the cost of materials and fabrication, selling, 
    general and administrative expenses (SG&A), and profit. In accordance 
    with section 773(e)(2)(A) of the Act, we based SG&A expenses and profit 
    on the amounts incurred and realized by the respondents in connection 
    with the production and sale of the foreign like product in the 
    ordinary course of trade for consumption in the foreign country. For 
    selling expenses, we used the weighted-average home market selling 
    expenses.
        We used sales to affiliated customers only where we determined such 
    sales were made at arm's-length prices, i.e., at prices comparable to 
    the prices at which the respondents sold identical merchandise to 
    unaffiliated customers.
        For both classes or kinds of merchandise under review and for all 
    respondents (except National), the Department disregarded sales below 
    cost of production (``COP'') in the last completed review. See Canadian 
    Steel 4th. We therefore have reasonable grounds to believe or suspect, 
    pursuant to section 773(b)(2)(A)(ii) of the Act, that sales of the 
    foreign like product under consideration for the determination of NV in 
    this review may have been made at prices below COP. Pursuant to section 
    773(b)(1) of the Act, we initiated COP investigations of sales in the 
    home market by all respondents, except National.
        We compared sales of the foreign like product in the home market 
    with model-specific cost of production figures for the POR. In 
    accordance with section 773(b)(3) of the Act, we calculated COP based 
    on the sum of the costs of materials and fabrication employed in 
    producing the foreign like product plus SG&A expenses and all costs and 
    expenses incidental to placing the foreign like product in packed 
    condition and ready for shipment. In our sales-below-cost analysis, we 
    used home market sales and COP information provided by each respondent 
    in its questionnaire responses. We made adjustments where warranted 
    based on our findings at verification.
        After calculating COP, we tested whether home market sales of 
    foreign like merchandise were made at prices below COP and, if so, 
    whether the below-cost sales were made within an extended period of 
    time in substantial quantities and at prices that did not permit 
    recovery of all costs within a reasonable period of time. Because each 
    individual price was compared against the POR-long average COP, any 
    sales that were below cost were also not at prices which permitted cost 
    recovery within a reasonable period of time. Model-specific COPs were 
    compared to reported home market prices less any applicable movement 
    charges, discounts, and rebates.
        Pursuant to section 773(b)(2)(C) of the Act, where less than 20 
    percent of a respondent's sales of a given model were at prices less 
    than COP, we did not disregard any below-cost sales of that model 
    because the below-cost sales were not made in substantial quantities 
    within an extended period of time. Where 20 percent or more of a 
    respondent's sales of a given model were at prices less than COP, we 
    disregarded the below-cost sales because they were made in substantial 
    quantities within an extended period of time, in accordance with 
    sections 773(b)(2) (B) and (C) of the Act. Based on this test, we 
    disregarded below-cost sales for both classes or kinds of merchandise 
    under review and for all respondents for which we conducted a cost 
    investigation.
        In accordance with section 773(a)(1)(B)(i) of the Act, where 
    possible, we based NV on sales at the same level of trade (LOT) as the 
    U.S. price. See the ``Level of Trade Section'' below.
        The Department determined in the final results of a previous 
    administrative review, Certain Corrosion-Resistant Carbon Steel Flat 
    Products and Certain Cut-to-Length Carbon Steel Plate From Canada: 
    Final Results of Antidumping Duty Administrative Reviews, 62 FR 12725 
    (Mar. 9, 1998), that it would be inappropriate to resort directly to 
    constructed value (CV), in lieu of foreign market sales, as the basis 
    for NV if the Department finds foreign market sales of merchandise 
    identical or most similar to that sold in the United States to be below 
    cost or otherwise outside the ``ordinary course of trade.'' Therefore, 
    we match a given U.S. sale to foreign market sales of the next most 
    similar model when all sales of the most comparable model fail the cost 
    test. The Department will use CV as the basis for NV only when there 
    are no above-cost sales that are otherwise suitable for comparison.
        Therefore, in this proceeding, when making comparisons in 
    accordance with section 771(16) of the Act, we considered all products 
    sold in the home market as described in the ``Scope of Reviews'' 
    section of this notice, above, that were in the ordinary course of 
    trade for purposes of determining appropriate product comparisons to 
    U.S. sales. Where there were no sales of identical merchandise in the 
    home market made in the ordinary course of trade to compare to U.S. 
    sales, we compared U.S. sales to sales of the most similar foreign like 
    product made in the ordinary course of trade, based on the 
    characteristics listed in Appendix V of our antidumping questionnaire.
        Where appropriate, we made adjustments to NV for differences in 
    circumstances of sale (COS), in accordance with sections 773(a)(6) and 
    (a)(8) of the Act and 19 CFR 351.410. For comparisons to EP, we made 
    COS
    
    [[Page 45233]]
    
    adjustments to NV by deducting home market direct selling expenses and 
    adding U.S. direct selling expenses. We also made adjustments, where 
    applicable, for home market indirect selling expenses to offset U.S. 
    commissions paid on EP sales pursuant to 19 CFR 351.410(b). For 
    comparisons to CEP, we made COS adjustments by deducting home market 
    direct selling expenses pursuant to section 772(d) of the Act.
    
    CCC
    
        For those models for which there was a sufficient quantity of sales 
    at prices above COP, we based NV on home market prices to unaffiliated 
    parties. Home market starting prices were based on the packed, ex-
    factory or delivered prices to unaffiliated purchasers in the home 
    market, net of discounts and price adjustments, where applicable.
        We made adjustments, where applicable, for packing and movement 
    expenses in accordance with sections 773(a)(6)(A) and (a)(6)(B) of the 
    Act. We also made adjustments for differences in the costs of 
    manufacture for subject merchandise and matching foreign like products, 
    attributable to their differing physical characteristics, pursuant to 
    section 773(a)(6)(C)(ii) of the Act. In accordance with 
    773(a)(6)(C)(iii) of the Act and 19 CFR 351.410, for comparison to EP, 
    we made COS adjustments to NV by deducting home market direct selling 
    expenses (credit) and adding U.S. direct selling expenses (credit). 
    When comparisons were made to EP sales on which commissions were paid, 
    but where no commissions were paid on the matching foreign market 
    sales, we made adjustments for the respondent's home market indirect 
    selling expenses to offset these U.S. commissions pursuant to 19 CFR 
    351.410(e).
    
    Dofasco
    
        For those models for which there was a sufficient quantity of sales 
    at prices above COP, we based NV on home market prices to unaffiliated 
    parties. We made adjustments, where applicable, for packing and 
    movement expenses in accordance with sections 773(a)(6)(A) and 
    (a)(6)(B) of the Act. We also made adjustments for differences in the 
    costs of manufacture for subject merchandise and matching foreign like 
    products, attributable to their differing physical characteristics, 
    pursuant to section 773(a)(6)(C)(ii) of the Act. In accordance with 
    773(a)(6)(C)(iii) of the Act and 19 CFR 351.410, for comparison to EP, 
    we made COS adjustments to NV by deducting home market direct selling 
    expenses (credit, royalties, and warranty expenses) and adding U.S. 
    direct selling expenses (credit, royalties, and warranty expenses). 
    When comparisons were made to EP sales on which commissions were paid, 
    but where no commissions were paid on the matching foreign market 
    sales, we made adjustments for the respondent's home market indirect 
    selling expenses to offset these U.S. commissions pursuant to 19 CFR 
    351.410(e).
        During verification we discovered that Dofasco did not incorporate 
    all sales order numbers in determining the cost for a few of its 
    CONNUMs. We tested three sales order numbers and compared the costs 
    associated with these to the reported costs for the respective product. 
    We found that the cost calculated for two of the missing sales order 
    numbers exceeded the reported costs for their respective products and 
    that the cost calculated for the other sales order number was less than 
    the cost of its respective product. For those CONNUMs whose sales order 
    numbers we tested, we adjusted their cost in accordance with the test 
    results. For the remaining CONNUMs, we determine that the use of facts 
    available is appropriate, in accordance with section 776(a) of the Act, 
    because, as discovered at verification, Dofasco failed to include all 
    sales order numbers in its cost calculation. Where necessary 
    information is missing from the record, the Department may apply facts 
    available under section 776 of the Act. Further, where that information 
    is missing because a respondent has failed to cooperate to the best of 
    its ability, section 776(b) of the Act authorizes the Department to use 
    facts available that are adverse to the interests of that respondent, 
    which may include information derived from the petition, the final 
    determination, a previous administrative review, or other information 
    placed on the record. Dofasco did not act to the best of its ability in 
    the reporting of its costs. Even though its sales order number 
    documentation was readily available and company officials had knowledge 
    of these sales order numbers, Dofasco failed to ensure that all sales 
    order numbers were included in its cost calculations. This indicates 
    that Dofasco did not act to the best of its ability to comply with the 
    Department's request for information. We are therefore using an adverse 
    inference as facts available for this aspect of Dofasco's cost 
    calculation. For those CONNUMs whose sales order numbers we did not 
    test, as facts available we increased their cost by adding the highest 
    differential for the CONNUMs tested. We have also made other 
    adjustments to Dofasco's reported costs. We increased the variable cost 
    of manufacture by disallowing Dofasco's claimed adjustment for 
    byproduct profits and certain sundry expenses. Finally, we have 
    excluded capital gains and foreign exchange gains as offsets to 
    Dofasco's interest expense. We used adjusted COP and CV values to 
    appropriately reflect Dofasco's expenses associated with painting 
    services provided by an affiliate. For a full discussion, see 
    Memorandum to the File: Analysis Memorandum for the Preliminary Results 
    of Review for Dofasco, August 12, 1999.
    
    MRM
    
        For those models for which there was a sufficient quantity of sales 
    at prices above COP, we based NV on home market prices to unaffiliated 
    purchasers (MRM made no home market sales to affiliated parties). Home 
    market prices were based on the packed, ex-factory or delivered prices 
    to purchasers in the home market.
        We made adjustments to the starting price, net of rebates, for 
    movement expenses in accordance with sections 773(a)(6)(A) and 
    (a)(6)(B) of the Act. In accordance with section 773(a)(6)(C)(iii) of 
    the Act and 19 CFR 351.410, for comparison to EP, we made COS 
    adjustments to NV by deducting home market direct selling expenses 
    (credit expense) and adding U.S. direct selling expenses (credit 
    expense). Because comparisons were made to EP sales on which 
    commissions were paid, but no commissions were paid on home market 
    sales, we made adjustments for the respondent's home market indirect 
    selling expenses to offset these U.S. commissions pursuant to 19 CFR 
    351.410(e).
        As a result of our verification of MRM's response, we reclassified 
    as freight expenses data originally reported as billing adjustments. 
    Also as a result of our verification, we made an upwards adjustment to 
    MRM's cost of manufacture before performing our sales-below-cost test. 
    For a full discussion, see Memorandum to the File: Analysis Memorandum 
    for the Preliminary Results of Review for MRM, August 12, 1999.
    
    National
    
        We based NV on home market prices to unaffiliated purchasers 
    (National made no home market sales to affiliated parties). Home market 
    prices were based on the packed, ex-factory or delivered prices to 
    purchasers in the home market.
        We made adjustments to the starting price, net of billing 
    adjustments and discounts, for movement expenses in
    
    [[Page 45234]]
    
    accordance with sections 773(a)(6)(B)(ii) of the Act. In accordance 
    with 773(a)(6)(C)(iii) of the Act and 19 CFR 351.410(c), for comparison 
    to CEP, we made COS adjustments to NV by deducting home market direct 
    selling expenses (credit, warranty, and technical service expenses). We 
    also made adjustments for differences in the costs of manufacturing 
    subject merchandise and matching foreign like products, attributable to 
    their differing physical characteristics, pursuant to section 
    773(a)(6)(C)(ii) of the Act. Finally, we deducted home market indirect 
    selling expenses to the extent of U.S. indirect selling expenses 
    because all sales in the home market were made at a different level of 
    trade than sales in the U.S. market. See the National subsection of the 
    ``Level of Trade'' section below.
    
    Stelco
    
        For those models for which there was a sufficient quantity of sales 
    at prices above COP, we based NV on home market prices to affiliated 
    parties (when made at prices determined to be at arms-length, in 
    accordance with 19 CFR 351.403) or unaffiliated parties. Home market 
    starting prices were based on the packed, ex-factory or delivered 
    prices to affiliated or unaffiliated purchasers in the home market net 
    of discounts and rebates. We made adjustments, where applicable, for 
    packing and movement expenses, in accordance with sections 773(a)(6)(A) 
    and (a)(6)(B) of the Act. We also made adjustments for differences in 
    the costs of manufacture for subject merchandise and matching foreign 
    like products, attributable to their differing physical 
    characteristics, pursuant to section 773(a)(6)(C)(ii) of the Act. In 
    accordance with 773(a)(6)(C)(iii) of the Act and 19 CFR 351.410, for 
    comparison to EP, we made COS adjustments to NV by deducting home 
    market direct selling expenses (credit, advertising, warranties and 
    technical services) and adding U.S. direct selling expenses (credit, 
    advertising, warranties and technical services). There were no 
    commissions paid during the POR on either home market sales or U.S. 
    sales.
        We made adjustments to COP and CV on corrosion-resistant steel to 
    appropriately reflect Stelco's expenses associated with painting 
    services provided by an affiliate.
    
    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 LOT as U.S. sales. The NV LOT is the level of the starting-
    price sale in the comparison market or, when NV is based on constructed 
    value, the level of the sales from which we derive SG&A and profit. For 
    EP, the U.S. LOT is also the level of the starting-price sale, which is 
    usually from exporter to importer. 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 LOT than EP or 
    CEP, we examine 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 the present review, only Dofasco claimed that more than one LOT 
    existed. As discussed below, to evaluate LOTs, we examined information 
    regarding the distribution systems in both the U.S. and Canadian 
    markets, including the selling functions, classes of customer, and 
    selling expenses for each respondent.
    
    CCC
    
        In both the home market and the United States, CCC reported one 
    LOT. CCC reported three customer categories in the home market and two 
    in the U.S. market, but CCC claimed that the selling functions it 
    performed were the same in each market and did not vary according to 
    customer. CCC also reported two channels of distribution, but the 
    Department found no difference in the functions performed through these 
    channels of distribution. CCC did not claim a LOT adjustment.
        We analyzed the selling functions performed for various customer 
    categories and channels of distribution in each market. We found that 
    CCC performed substantially similar selling functions regardless of the 
    type of home market customer and, therefore, that one level of trade 
    existed in the home market. We reached the same conclusion regarding 
    the U.S. market.
        Finally, we compared the selling functions performed at the home 
    market LOT with those performed at the U.S. LOT and found them 
    substantially similar. Thus, no LOT adjustment was appropriate. For a 
    further discussion of the Department's LOT analysis with respect to 
    CCC, see Memorandum to the File: Analysis Memorandum for the 
    Preliminary Results of Review for CCC, August 12, 1999.
    
    Dofasco
    
        Dofasco reported three LOTs in the home market. Dofasco defined its 
    LOT categories by customer category: service center, automotive, and 
    construction and converters/manufacturers (``construction''). We 
    examined the selling functions performed at each claimed level and 
    found that there was a significant difference in selling functions 
    offered to these three categories. Of the several reported selling 
    functions, Dofasco performed only two of the same or similar selling 
    functions at both the automotive and service center sales levels. 
    Dofasco reported fourteen selling functions which were different 
    between these two levels. Additionally, sales to automotive customers 
    are sales to end users, while sales to service centers are sales to 
    resellers. Thus, sales to service centers and automotive customers were 
    made at different stages of marketing. Based upon this fact and the 
    different levels of selling functions described above, we preliminarily 
    conclude that sales to the automotive customers and service centers are 
    made at different levels of trade.
        Although both automotive and construction customers are OEMs, we 
    note that both quantitatively and qualitatively, the selling functions 
    offered to automotive customers involve significantly greater selling 
    activities and thus represent a distinct stage of marketing. 
    Specifically, of the 16 reported selling functions, Dofasco performed 
    only seven of the same or similar selling functions to both automotive 
    and construction customers. Dofasco's functions for these two customer 
    categories differed with respect to nine other activities. Therefore, 
    given these differences, we preliminarily conclude that automotive and 
    construction constitute separate levels of trade.
        There were numerous differences in selling functions between sales 
    to construction and service center customers. Dofasco performed six 
    reported selling functions for sales to service centers and only four 
    selling
    
    [[Page 45235]]
    
    functions for sales to construction customers. Of these selling 
    functions, only one was performed for both service centers and 
    construction customers. Additionally, sales to service center customers 
    are sales to resellers, while sales to construction customers are sales 
    to end users. Thus, sales to service centers and construction customers 
    were made at different stages of marketing. Based upon this fact and 
    the different levels of selling functions described above, we 
    preliminarily conclude that sales to service centers and construction 
    customers are made at different levels of trade.
        Overall, we determine that the selling functions for the 
    automotive, service center, and construction customer categories are 
    substantially dissimilar to one another and that these sales are made 
    at different stages of marketing. Therefore, we preliminarily determine 
    that the automotive, service center, and construction customer 
    categories should be treated as three LOTs in the comparison market. 
    Dofasco reported the same three LOTs in the U.S. market: automotive, 
    service center, and construction. We preliminarily determine that the 
    results of our analysis of U.S. LOTs are identical to those of the 
    comparison market. In addition, there were only insignificant 
    differences in selling functions at each LOT between the comparison 
    market and the U.S. market. Therefore, we found that the three U.S. 
    LOTs corresponded to the three comparison market LOTs. The Department 
    did not find that there existed a pattern of consistent price 
    differences between the three levels of trade. Therefore, we did not 
    make LOT adjustments when comparing sales at different LOTs. For a 
    further discussion of the Department's LOT analysis with respect to 
    Dofasco, see Memorandum to the File: Analysis Memorandum for the 
    Preliminary Results of Review for Dofasco, August 12, 1999.
    
    MRM
    
        In both the home market and the United States, MRM reported one LOT 
    and one distribution system with two classes of customers in the home 
    market, distributors and OEMs, and one class of customer, OEMs, in the 
    U.S. market. We analyzed the selling functions and activities performed 
    for customers in each market. We found that MRM performed substantially 
    similar selling functions and activities for both classes of home 
    market customers and, therefore, that one level of trade existed in the 
    home market. Finally, we compared the selling functions performed at 
    the home market LOT with those performed at the U.S. LOT and found them 
    substantially similar. Thus, no LOT adjustment was appropriate.
    
    National
    
        National claimed only one LOT, but reported several different 
    distribution channels in both its home market and the United States 
    based on classes of customers (OEMs and steel service centers) and the 
    existence of warehousing or further manufacturing between National and 
    its customers.
        We examined the reported selling functions and found that National 
    provides substantially the same selling functions to its home market 
    customers regardless of distribution channel. We reached the same 
    conclusion regarding the U.S. market.
        National does not provide technical services to its service center 
    customers. We did not, however, consider the provision of technical 
    services to constitute a substantial difference between distribution 
    channels. National warehouses some of its products before shipping to 
    customers. Any one sale, however, can contain both warehoused and non-
    warehoused products and the Department was unable to determine which 
    sales involved more warehoused goods than others.
        We compared the channels of distribution and selling functions in 
    the U.S. and home markets. The channels of distribution are similar for 
    both markets with National providing substantially similar selling 
    functions to both its U.S. and home market customers. However, at the 
    level of constructed export sale to the United States, i.e., after 
    eliminating from consideration the selling functions associated with 
    deductions made under section 772 of the Act, we found that National's 
    sales to customers in the United States were made at a different level 
    of trade than its sales to home market customers.
        Because there are no sales in the home market made at the same 
    level of trade as sales in the United States, we were not able to 
    determine whether the difference in level of trade affects price 
    comparability. Therefore, we made a constructed export price offset. In 
    accordance with 19 CFR 351.408(f)(2), we deducted indirect selling 
    expenses from NV to the extent of U.S. indirect selling expenses. For a 
    further discussion of the Department's LOT analysis with respect to 
    National, see Memorandum to the File: Analysis Memorandum for the 
    Preliminary Results of Review for National, August 12, 1999.
    
    Stelco
    
        Stelco identified one level of trade and two channels of 
    distribution (to end-users or to resellers) in the home market for each 
    class or kind of merchandise. We examined the selling functions 
    performed in each channel and found that Stelco provided many of the 
    same or similar selling functions in each, including inventory 
    maintenance, warranty, technical advice, and freight and delivery 
    arrangements. We found few differences between selling functions for 
    transactions made through the two channels of trade. Overall, we 
    determine that the selling functions between the two sales channels are 
    sufficiently similar to consider them one LOT in the home market for 
    sales of both corrosion-resistant products and plate products.
        In the United States, Stelco Inc. sold both products through the 
    two channels of distribution listed above. We found that the selling 
    functions performed for sales to the United States are sufficiently 
    similar between the two channels to consider them one LOT for both 
    corrosion-resistant products and plate products. Additionally, we 
    consider this LOT to be the same as that identified in the home market. 
    Therefore, no adjustment is appropriate.
    
    Preliminary Results of Reviews
    
        As a result of our reviews, we preliminarily determine the 
    weighted-average dumping margins for the period August 1, 1997 through 
    July 31, 1998 to be as follows:
    
    ------------------------------------------------------------------------
                                                                    Margin
                       Manufacturer/Exporter                      percentage
    ------------------------------------------------------------------------
             Certain Corrosion-Resistant Carbon Steel Flat Products
    ------------------------------------------------------------------------
    CCC........................................................         1.08
    Dofasco....................................................         0.11
    National...................................................         5.65
    Stelco.....................................................         4.24
    ------------------------------------------------------------------------
                    Certain Cut-to-Length Carbon Steel Plate
    ------------------------------------------------------------------------
    MRM........................................................         0.00
    Stelco.....................................................         0.00
    ------------------------------------------------------------------------
    
        The Department will disclose to the parties to the proceeding 
    calculations performed in connection with these preliminary results of 
    review within ten days after the date of public announcement, or, if 
    there is no public announcement, within five days after the date of 
    publication of these preliminary results of review.
        Any interested party may request a hearing within 30 days of 
    publication. Any hearing, if requested, will be held 37 days after the 
    date of publication or
    
    [[Page 45236]]
    
    the first business day thereafter. Case briefs from interested parties 
    may be submitted not later than 30 days after publication. Rebuttal 
    briefs, limited to issues raised in case briefs, may be filed not later 
    than five days after the date of filing of case briefs. The Department 
    will publish the final results of this administrative review, including 
    its analysis of issues raised in the case and rebuttal briefs, not 
    later than 120 days after the date of publication of this notice.
        Upon issuance of the final results of review, the Department shall 
    determine, and the U.S. Customs Service shall assess, antidumping 
    duties on all appropriate entries. In accordance with 19 CFR 
    351.212(b), we calculated importer-specific ad valorem duty assessment 
    rates for each class or kind of merchandise based on the ratio of the 
    total amount of antidumping duties calculated for the examined sales to 
    the total customs value of the sales used to calculate those duties. 
    This rate will be assessed uniformly on all entries of that particular 
    importer for that class or kind of merchandise made during the POR.
        If the revocation is made final for MRM, it will apply to all 
    unliquidated entries of this merchandise produced by MRM, exported to 
    the United States and entered, or withdrawn from warehouse, for 
    consumption, on or after August 1, 1998, which will be the effective 
    date of the revocation from the order for MRM.
        Furthermore, the following deposit requirements will be effective 
    for all shipments of the subject merchandise entered, or withdrawn from 
    warehouse, for consumption on or after the publication date, as 
    provided by section 751(a) of the Act: (1) the cash deposit rate for 
    each reviewed company will be that established in the final results of 
    review (except that no deposit will be required for firms with de 
    minimis margins, i.e., margins less than 0.5 percent); (2) for 
    exporters not covered in this review, but covered in the less than fair 
    value (LTFV) investigation or a previous review, 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, a previous review, or the LTFV 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; (4) the 
    cash deposit rate for all other manufacturers or exporters will 
    continue to be the ``all others'' rate established in the LTFV 
    investigation, which was 18.71 percent for corrosion-resistant steel 
    products and 61.88 percent for plate (see Amended Final Determinations 
    of Sales at Less Than Fair Value and Antidumping Orders: Certain 
    Corrosion-Resistant Carbon Steel Flat Products and Certain Cut-to-
    Length Carbon Steel Plate From Canada, 60 FR 49582 (Sep. 26, 1995)). 
    These requirements, when imposed, shall remain in effect until 
    publication of the final results of the next administrative reviews.
        This notice serves as a preliminary reminder to importers of their 
    responsibility under 19 CFR 351.402(f) 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.
        These administrative reviews and notices are published in 
    accordance with sections 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)) 
    and 777(i)(1) of the Act (19 U.S.C. 1677f(i)(1)).
    
        Dated: August 10, 1999.
    Robert S. LaRussa,
    Assistant Secretary for Import Administration.
    [FR Doc. 99-21568 Filed 8-18-99; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Effective Date:
8/19/1999
Published:
08/19/1999
Department:
International Trade Administration
Entry Type:
Notice
Action:
Notice of preliminary results of the antidumping duty administrative review, intent to revoke in part, intent not to revoke in part, and rescission of review in part.
Document Number:
99-21568
Dates:
August 19, 1999.
Pages:
45228-45236 (9 pages)
Docket Numbers:
A-122-822, A-122-823
PDF File:
99-21568.pdf