99-19919. Initiation of Antidumping Duty Investigations: Structural Steel Beams From Germany, Japan, South Korea, and Spain  

  • [Federal Register Volume 64, Number 148 (Tuesday, August 3, 1999)]
    [Notices]
    [Pages 42084-42088]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-19919]
    
    
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    DEPARTMENT OF COMMERCE
    
    International Trade Administration
    [A-428-826, A-469-809, A-588-852, A-580-841]
    
    
    Initiation of Antidumping Duty Investigations: Structural Steel 
    Beams From Germany, Japan, South Korea, and Spain
    
    AGENCY: Import Administration, International Trade Administration, 
    Department of Commerce.
    
    EFFECTIVE DATE: August 3, 1999.
    
    FOR FURTHER INFORMATION CONTACT: Robert James (Germany) at (202) 482-
    5222; Abdelali Elouaradia (Japan) at (202) 482-2243; Rick Johnson 
    (South Korea) at (202) 482-3818; and Linda Ludwig (Spain), at (202) 
    482-3833, Import Administration, International Trade Administration, 
    U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, 
    Washington, DC 20230.
    
    Initiation of Investigations
    
    The Applicable Statute and Regulations
    
        Unless otherwise indicated, all citations to the statute are 
    references to the provisions effective January 1, 1995, the effective 
    date of the amendments made to the Tariff Act of 1930 (the Act) by the 
    Uruguay Round Agreements Act (URAA). In addition, unless otherwise 
    indicated, all citations to the Department's regulations are references 
    to the provisions codified at 19 CFR Part 351 (1998).
    
    The Petition
    
        On July 7, 1999, the Department of Commerce (``the Department'') 
    received petitions filed in proper form by Northwestern Steel and Wire 
    Company, Nucor-Yamato Steel Company, TXI-Chaparral Steel Company, and 
    United Steelworkers of America AFL-CIO (collectively petitioners). The 
    Department received supplemental information to the petitions on July 
    8, July 21 and July 22, 1999.
    
    [[Page 42085]]
    
        In accordance with section 732(b) of the Act, petitioners allege 
    that imports of structural steel beams (``structural beams'') from 
    Germany, Japan, South Korea, and Spain are being, or are likely to be, 
    sold in the United States at less than fair value within the meaning of 
    section 731 of the Act, and that such imports are materially injuring 
    an industry in the United States.
        The Department finds that petitioners filed these petitions on 
    behalf of the domestic industry because they are interested parties as 
    defined in sections 771(9)(C) and (D) of the Act and they have 
    demonstrated sufficient industry support with respect to each of the 
    antidumping investigations they are requesting the Department to 
    initiate (see Determination of Industry Support for the Petition 
    below).
    
    Scope of Investigations
    
        For purposes of this investigation, the products covered are 
    doubly-symmetric shapes, whether hot-or cold-rolled, drawn, extruded, 
    formed or finished, having at least one dimension of at least 80 mm 
    (3.2 inches or more), whether of carbon or alloy (other than stainless) 
    steel, and whether or not drilled, punched, notched, painted, coated, 
    or clad. These products (``Structural Steel Beams'') include, but are 
    not limited to, wide-flange beams (``W'' shapes), bearing piles (``HP'' 
    shapes), standard beams (``S'' or ``I'' shapes), and M-shapes.
        All products that meet the physical and metallurgical descriptions 
    provided above are within the scope of this investigation unless 
    otherwise excluded. The following products, are outside and/or 
    specifically excluded from the scope of this investigation:
         Structural steel beams greater than 400 pounds per linear 
    foot or with a web or section height (also known as depth) over 40 
    inches.
        In addition to the above exclusion, petitioners have requested that 
    the Department exclude certain special section I-shapes. See Exhibit 5 
    of the petition, submitted on July 7, 1999, see also Attachment A of 
    the July 23, 1999 petition amendment. The Department is currently 
    considering this exclusion request, and attempting to define the 
    request using physical, mechanical, and chemical criteria.
        The merchandise subject to these investigations is classified in 
    the Harmonized Tariff Schedule of the United States (``HTSUS'') at 
    subheadings: 7216.32.0000, 7216.33.0030, 7216.33.0060, 7216.33.0090, 
    7216.50.0000, 7216.61.0000, 7216.69.0000, 7216.91.0000, 7216.99.0000, 
    7228.70.3040, 7228.70.6000. Although the HTSUS subheadings are provided 
    for convenience and Customs purposes, the written description of the 
    merchandise under investigation is dispositive.
        During our review of the petition, we discussed the scope with the 
    petitioners to ensure that the scope in the petition accurately 
    reflects the product for which the domestic industry is seeking relief. 
    Moreover, as we discussed in the preamble to the Department's 
    regulations (62 FR 27323), we are setting aside a period for parties to 
    raise issues regarding product coverage. The Department encourages all 
    parties to submit such comments by August 16, 1999. Comments should be 
    addressed to Import Administration's Central Records Unit at Room 1870, 
    U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, 
    Washington, D.C. 20230. Any product coverage comment filed must be 
    filed for the record of each structural steel beam investigation (i.e., 
    commentors must file all coverage comments on the record of the 
    investigations for structural steel beams from Germany, Japan, South 
    Korea (both antidumping and countervailing duty investigations) and 
    Spain). The period of scope consultations is intended to provide the 
    Department with ample opportunity to consider all comments and consult 
    with parties prior to the issuance of the preliminary determination.
    
    Determination of Industry Support for the Petition
    
        Section 732(b)(1) of the Act requires that a petition be filed on 
    behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
    provides that a petition meets this requirement if the domestic 
    producers or workers who support the petition account for: (1) at least 
    25 percent of the total production of the domestic like product; and 
    (2) more than 50 percent of the production of the domestic like product 
    produced by that portion of the industry expressing support for, or 
    opposition to, the petition.
        Section 771(4)(A) of the Act defines the ``industry'' as the 
    producers of a domestic like product. Thus, to determine whether the 
    petition has the requisite industry support, the statute directs the 
    Department to look to producers and workers who produce the domestic 
    like product. The International Trade Commission (``ITC''), which is 
    responsible for determining whether ``the domestic industry'' has been 
    injured, must also determine what constitutes a domestic like product 
    in order to define the industry. While both the Department and the ITC 
    must apply the same statutory definition regarding the domestic like 
    product (section 771(10) of the Act), they do so for different purposes 
    and pursuant to separate and distinct authority. In addition, the 
    Department's determination is subject to limitations of time and 
    information. Although this may result in different definitions of the 
    like product, such differences do not render the decision of either 
    agency contrary to the law (see Algoma Steel Corp. Ltd., v. United 
    States, 688 F. Supp. 639, 642-44 (CIT 1988); High Information Content 
    Flat Panel Displays and Display Glass Therefore from Japan: Final 
    Determination; Rescission of Investigation and Partial Dismissal of 
    Petition, 56 FR 32376, 32380-81 (July 16, 1991).
        Section 771(10) of the Act defines the domestic like product as ``a 
    product which is like, or in the absence of like, most similar in 
    characteristics and uses with, the article subject to an investigation 
    under this title.'' Thus, the reference point from which the domestic 
    like product analysis begins is ``the article subject to an 
    investigation,'' i.e., the class or kind of merchandise to be 
    investigated, which normally will be the scope as defined in the 
    petition. Moreover, petitioners do not offer a definition of domestic 
    like product distinct from the scope of the investigation.
        The domestic like product referred to in the petition is the single 
    domestic like product defined in the ``Scope of Investigation'' 
    section, above. The Department has no basis on the record to find the 
    petition's definition of the domestic like product to be inaccurate. 
    The Department has, therefore, adopted the domestic like product 
    definition set forth in the petition.
        In this case, the Department has determined that the petition and 
    supplemental information to the petition contain adequate evidence of 
    sufficient industry support (see Attachment to the Initiation Checklist 
    Re: Industry Support, July 27, 1999). For all countries, producers and 
    workers supporting the petition represent over 50 percent of total 
    production of the domestic like product.
        Accordingly, the Department determines that these petitions are 
    filed on behalf of the domestic industry within the meaning of section 
    732(b)(1) of the Act.
    
    Export Price and Normal Value
    
        The following are descriptions of the allegations of sales at less 
    than fair value upon which our decisions to initiate these 
    investigations are based. Should
    
    [[Page 42086]]
    
    the need arise to use any of this information in our preliminary or 
    final determinations for purposes of facts available under section 776 
    of the Act, we may re-examine the information and revise the margin 
    calculations, if appropriate.
    Germany
        Petitioners have identified Salzgitter AG (Salzgitter) and 
    Stahlwerk Thuringen GmbH (Stahlwerk Thuringen) as possible exporters of 
    structural beams from Germany and the primary producers of subject 
    merchandise in Germany. Petitioners based export price (``EP'') on two 
    price offerings for structural beams, one by Salzgitter and one by 
    Stahlwerk Thuringen, made in the fourth quarter of 1998 to unaffiliated 
    U.S. purchasers. Petitioners deducted inland freight obtained from a 
    price quote for trucking wide-flange beams from the German mill to the 
    port of exportation. Petitioners then subtracted ocean freight and 
    insurance costs, calculated as the difference of the unit customs value 
    from the unit C.I.F. value of the subject merchandise. In addition, 
    petitioners deducted port fees, which they acquired from an official 
    port schedule for one of the price offerings and documented by 
    affidavit for the other, and U.S. customs duties, which were obtained 
    from the 1999 HTSUS.
        In calculating NV, petitioners used two home market price quotes 
    (one from Salzgitter and one from Stahlwerk Thuringen). Petitioners 
    stated that these prices were quoted for wide-flange beams for sale in 
    the first quarter of 1999 and that the grade offered in these quotes is 
    equivalent to the grades in the U.S. offerings used to compute EP. 
    Because the terms of Salzgitter and Stahlwerk Thuringen's sales were on 
    a delivered basis, petitioners subtracted the cost of delivery to 
    customers in Germany from the delivered prices. Petitioners obtained 
    inland freight costs for shipping a truckload of structural beams in 
    Germany from a freight forwarder. To compute normal value petitioners 
    also deducted home market credit expenses, which were calculated using 
    the average days of credit offered on sales of wide-flange beams in 
    Germany, the home market delivered price, and the average German prime 
    rate (from the Bundesbank) for January and February 1999. In addition, 
    petitioners added an amount for imputed U.S. credit expense in 
    accordance with section 773(a)(6)(C) of the Act. Petitioners derived 
    the imputed U.S. credit expense using the standard days of credit 
    offered on sales of German wide-flange beams in the U.S., the U.S. 
    delivered price, and the average U.S. prime lending rate during the 
    period of shipment.
        Petitioners provided information demonstrating reasonable grounds 
    to believe or suspect that home market sales of the subject merchandise 
    were made at prices below the cost of production (``COP''), within the 
    meaning of section 773(b) of the Act, and requested that the Department 
    conduct a country-wide sales below cost investigation. Pursuant to 
    section 773(b)(3) of the Act, COP consists of the cost of manufacturing 
    (``COM''), selling, general, and administrative expenses (``SG&A''), 
    and packing costs. To calculate COP, the petitioners based COM on their 
    own production experiences for COM adjusted for known differences 
    between costs incurred to produce structural beams in the United States 
    and Germany. To calculate SG&A petitioners relied on their own 
    experience. Petitioner's relied upon their own experience for SG&A 
    because as documented in the petition, they were unable to obtain an 
    SG&A rate for a German steel producer. In addition, we note that the 
    SG&A rate used appears to be conservative. To calculate financial 
    expenses, petitioners relied upon the 1998 net financial expense from 
    the financial statements of one of the named producers.
        Based on our analysis, certain of the home market sales reported in 
    the petition were shown to be made at prices below the COP. For these 
    sales, petitioner based NV on the constructed value (``CV'') of the 
    merchandise, pursuant to section 773(a)(4) and 773(e) of the Act. 
    Pursuant to section 773(e) of the Act, CV consists of the COM, SG&A 
    expenses, packing costs and profit of the merchandise. To calculate the 
    COM, SG&A, and packing costs for CV, petitioners followed the same 
    methodology used to determine COP. The petitioners derived profit for 
    CV based on the 1998 financial statements of one of the producers named 
    in the petition. We adjusted petitioners' calculated profit to exclude 
    investment write-offs and equity earnings in affiliated companies.
        The estimated dumping margins based on a comparison between 
    Salzgitter and Stahlwerk Thuringen's U.S. prices and CV, as adjusted by 
    the Department, are 67.78 percent and 88.83 percent, respectively. 
    Based on a comparison of EP to home market prices, petitioners' 
    calculated dumping margins range from 45.91 percent to 49.45 percent, 
    respectively.
    Japan
        The petitioners based EP for both Tokyo Steel and Nippon Steel on 
    three U.S. price offerings for sales of wide flange beams to 
    unaffiliated purchasers during the fourth quarter of 1998 for delivery 
    in either the first or second quarter of 1999. The terms of sale were 
    FOB truck or ex-dock duty paid per hundred weight, which the 
    petitioners multiplied by twenty to calculate a price per short ton. 
    The petitioners stated that they were unable to obtain rates for 
    trucking the subject merchandise from the locations of each Japanese 
    mill to the port of export; therefore, they did not deduct any Japanese 
    trucking and/or port fees from the U.S. price. However, petitioners did 
    subtract ocean freight, port fees (from an industry expert's affidavit 
    and U.S. government statistics, respectively), and U.S. customs duties 
    (from the 1999 HTSUS schedule).
        The petitioners based NV on December 1998 quoted transaction prices 
    for wide-flange beams identical or similar to those sold in the United 
    States, produced by Tokyo Steel and Nippon Steel and sold or offered 
    for sale to customers in Japan. The prices used in the calculation of 
    NV were ex-factory prices. Petitioners deducted inland freight (from an 
    industry expert's affidavit) and credit expense from the starting 
    price. Petitioners used a credit period that was based on a quoted 
    transaction price, and used an interest rate from the International 
    Financial Statistics. Petitioners did not add back an amount of U.S. 
    credit. Further, petitioners did not make any adjustment for 
    differences in packing.
        Petitioners provided information demonstrating reasonable grounds 
    to believe or suspect that home market sales of the subject merchandise 
    were made at prices below the COP, within the meaning of section 773(b) 
    of the Act, and requested that the Department conduct a country-wide 
    sales below cost investigation. Pursuant to section 773(b)(3) of the 
    Act, COP consists of the COM, SG&A and packing costs. To calculate COP, 
    the petitioners based COM on the costs of a surrogate producer because 
    this producer has comparable scrap-based, electric arc furnace 
    production facilities. Petitioners stated that the surrogate producer's 
    costs were representative of Tokyo Steel's and Nippon Steel's cost in 
    producing the same product. For Nippon, petitioners increased the 
    surrogates labor cost by five times based on information contained in a 
    newspaper article. For Nippon, to calculate SG&A, and financial 
    expenses,
    
    [[Page 42087]]
    
    the petitioners relied upon the non-consolidated financial statements 
    of Nippon Steel Corporation for fiscal year 1998. For Tokyo Steel, to 
    calculate depreciation, SG&A, and financial expenses, the petitioners 
    relied upon the financial statements of Tokyo Steel for the fiscal year 
    1998. We relied on the cost data contained in the petition except in 
    the following instances.
        1. We revised Nippon's SG&A rate to include miscellaneous income 
    and expenses, retirement expenses, and past service pension costs. We 
    also revised Tokyo's SG&A rate to include past service pension costs, 
    loss on disposal of fixed assets and plant shutdown costs.
        2. We recalculated Nippon's net financial expense rate using 
    Nippon's consolidated financial statements. See Japan Attachment 6 to 
    the Initiation Checklist. We also reduced Nippon's and Tokyo's 
    financial expense by short-term interest income. We based the short-
    term interest income offset on the ratio of cash and cash equivalents 
    to total interest bearing assets for both Nippon and Tokyo.
        3. We recalculated Tokyo's depreciation expense using the 
    depreciation expense of the same surrogate producer used to compute the 
    other manufacturing costs contained in the petition.
        4. We did not rely on petitioners' revised labor cost submitted on 
    July 22, 1999, because the newspaper article which was relied upon 
    contained inconsistencies. Therefore, we relied on the surrogate's 
    labor cost as indicated in the affidavit provided in the petition.
        Based upon our analysis of the adjusted petition information, 
    certain of the home market sales reported in the petition were shown to 
    be made at prices below the COP. Thus, we find reasonable grounds to 
    believe or suspect that sales of the foreign like product were made 
    below the COP. Accordingly, we are initiating a country-wide-sales-
    below-cost investigation.
        For below-cost sales, petitioners based NV on the CV of the 
    merchandise, pursuant to sections 773(a)(4) and 773(e) of the Act. 
    Pursuant to section 773(e) of the Act, CV consists of the COM, SG&A, 
    packing costs, and profit of the merchandise. To calculate the COM, 
    SG&A expenses and packing costs for CV, petitioners followed the same 
    methodology used to determine COP. Accordingly, we relied on this 
    methodology after adjusting certain cost elements as noted above. The 
    petitioners derived Nippon's profit for CV based on certain sales of 
    the surrogate producer used to compute COM. The petitioners derived 
    Tokyo's profit from the one sale which passed the cost test. For 
    Nippon, we recalculated profit based on Nippon's 1998 unconsolidated 
    financial statements. Because Tokyo's 1998 financial statements 
    reflected a net loss, we based the profit for Tokyo on the recalculated 
    Nippon profit rate. See Japan cost section of Initiation Checklist.
        The estimated dumping margins, based on a comparison between Nippon 
    and Tokyo Steel's U.S. prices and adjusted CV, range from 1.58 percent 
    to 23.13 percent. Based on a comparison of EP to home market prices, 
    petitioners calculated dumping margins of 22.21 percent.
    South Korea
        Petitioners identified Inchon Iron & Steel Co. Ltd (``Inchon'') and 
    Kangwon Industries Co. Ltd. (``Kangwon'') as the primary producers and 
    exporters of subject merchandise from South Korea to the United States 
    in 1998. Petitioners based EP for Inchon on an April 1999 U.S. price 
    offering for a sale to an unaffiliated purchaser. For Kangwon, 
    petitioners based EP on a December 1998 offer for sale to an 
    unaffiliated purchaser. Because the price offers are for products 
    delivered to the United States, petitioners calculated a net U.S. price 
    for each product by subtracting estimated costs for shipment from the 
    factory in South Korea to the port of export and port charges. In 
    addition, petitioners subtracted unloading and wharfage charges, ocean 
    freight and insurance, U.S. inland freight, and U.S. Customs duties.
        To calculate NV, petitioners obtained home market prices for Inchon 
    and Kangwon (from foreign market research and an affidavit from a U.S. 
    producer), contemporaneous with the pricing information used as the 
    basis for EP, for products offered for sale to customers in South Korea 
    which are either identical or similar to those sold to the United 
    States. Petitioners adjusted these prices by subtracting foreign 
    movement charges and credit expenses.
        Petitioners provided information demonstrating reasonable grounds 
    to believe or suspect that home market sales of the subject merchandise 
    were made at prices below the COP, within the meaning of section 773(b) 
    of the Act, and requested that the Department conduct a country-wide-
    sales-below-cost investigation. Pursuant to section 773(b)(3) of the 
    Act, COP consists of the COM, SG&A, and packing costs. To calculate 
    COP, petitioners based COM on their own experience, adjusted for known 
    differences between costs incurred to produce structural beams in the 
    United States and South Korea. To calculate SG&A and financial 
    expenses, petitioners relied upon the 1997 financial statements for 
    each of the two South Korean producers named in the petition. We relied 
    on the cost data contained in the petition except for the following. We 
    revised the financial expense ratio to include an offset amount for 
    short-term interest income.
        Based on our analysis, certain of the home market sales reported in 
    the petition were shown to be made at prices below the COP. For these 
    sales, petitioner based NV on the CV of the merchandise, pursuant to 
    section 773(a)(4) and 773(e) of the Act. Pursuant to section 773(e) of 
    the Act, CV consists of the COM, SG&A, packing costs, and profit of the 
    merchandise. To calculate the COM, SG&A, and packing costs for CV, 
    petitioners followed the same methodology used to determine COP. 
    Accordingly, we relied on this methodology after adjusting certain cost 
    elements as noted above. The petitioners derived profit for CV based on 
    the South Korean producers' 1997 financial statements.
        The estimated dumping margins, based on a comparison between Inchon 
    and Kangwon's U.S. prices and CV, as adjusted by the Department, range 
    from 89.67 to 107.07 percent. Based on a comparison of EP to home 
    market prices, as adjusted by the Department, petitioners' calculated 
    dumping margins range from 50.00 to 62.95 percent. A description of the 
    adjustments which the Department made to petitioners' calculations of 
    export price and normal value are contained in the Initiation 
    Checklist.
    Spain
        The petitioners identified Corporacion Jose Maria Aristrain SA 
    (``Aristrain'' (single Spanish entity) or ``Arbed'' (consolidated group 
    of companies)) as the possible exporter of structural beams from Spain. 
    The petitioners further identified this exporter as the primary 
    producer of subject merchandise in Spain. The petitioners based EP for 
    Aristrain on a U.S. price offering for the first sale to an 
    unaffiliated purchaser during the fourth quarter of 1998. Because the 
    terms of Aristrain's U.S. sale were FOB truck at the U.S. port of 
    entry, the petitioners calculated a net U.S. price by subtracting 
    estimated costs for shipment from the factory in Spain to a port of 
    export (from an industry expert's affidavit regarding the cost of 
    inland freight). In addition, the petitioners subtracted ocean freight 
    and insurance, unloading charges, and wharfage (from official U.S. 
    tariff rates and official U.S.
    
    [[Page 42088]]
    
    import statistics), and estimated costs for U.S. import duties and fees 
    (both from the 1999 HTSUS schedule).
        With respect to NV, petitioners obtained a per metric ton price of 
    wide-flange steel beams offered (or sold) by Aristrain sold (or to be 
    sold) in Spain. Petitioners adjusted this price by subtracting credit 
    expenses (from an industry expert's affidavit and official 
    International Monetary Fund statistics).
        Petitioners failed to provide information demonstrating reasonable 
    grounds to believe or suspect that home market sales of the subject 
    merchandise were made at prices below the COP, within the meaning of 
    section 773(b) of the Act. Therefore, at this time we are not 
    initiating a sales-below-cost investigation. See Spain cost section of 
    Initiation Checklist.
        The estimated dumping margin in the petition, based on a comparison 
    between Aristrain's U.S. price and NV, is 66.94 percent.
    
    Initiation of Cost Investigations
    
        Pursuant to section 773(b) of the Act, petitioners provided 
    information demonstrating reasonable grounds to believe or suspect that 
    sales in the home markets of Germany, Japan, and South Korea were made 
    at prices below the fully allocated COP and, accordingly, requested 
    that the Department conduct a country-wide sales-below-COP 
    investigation in connection with the requested antidumping 
    investigations on Germany, Japan, and South Korea. The Statement of 
    Administrative Action (``SAA''), submitted to the Congress in 
    connection with the interpretation and application of the URAA, states 
    that an allegation of sales below COP need not be specific to 
    individual exporters or producers. SAA, H.R. Doc. No. 103-316 at 833 
    (1994). The SAA, at 833, states that ``Commerce will consider 
    allegations of below-cost sales in the aggregate for a foreign country, 
    just as Commerce currently considers allegations of sales at less than 
    fair value on a country-wide basis for purposes of initiating an 
    antidumping investigation.''
        Further, the SAA provides that ``new section 773(b)(2)(A) retains 
    the current requirement that Commerce have `reasonable grounds to 
    believe or suspect' that below cost sales have occurred before 
    initiating such an investigation. `Reasonable grounds' * * * exist when 
    an interested party provides specific factual information on costs and 
    prices, observed or constructed, indicating that sales in the foreign 
    market in question are at below-cost prices.'' Id. Based upon the 
    comparison of the adjusted prices from the petition for the 
    representative foreign like products to their costs of production, we 
    find the existence of ``reasonable grounds to believe or suspect'' that 
    sales of the foreign like product in Germany, Japan, and South Korea 
    were made below their respective COPs within the meaning of section 
    773(b)(2)(A)(i) of the Act. Accordingly, the Department is initiating 
    the requested country-wide cost investigations for Germany, Japan, and 
    South Korea (see country-specific sections above and cost attachment to 
    the initiation checklist).
    
    Fair Value Comparisons
    
        Based on the data provided by petitioners, there is reason to 
    believe that imports of structural beams from Germany, Japan, South 
    Korea, and Spain are being, or are likely to be, sold at less than fair 
    value.
    
    Allegations and Evidence of Material Injury and Causation
    
        Petitioners allege that the U.S. industry producing the domestic 
    like product is being materially injured, and is threatened with 
    material injury, by reason of the individual and cumulated imports of 
    the subject merchandise sold at less than NV. Petitioners explained 
    that the industry's injured condition is evident in the declining 
    trends in output and net operating profits. The allegations of injury 
    and causation are supported by relevant evidence including U.S. Customs 
    import data, lost sales, and pricing information. The Department 
    assessed the allegations and supporting evidence regarding material 
    injury and causation and determined that these allegations are 
    supported by accurate and adequate evidence and meet the statutory 
    requirements for initiation (see Attachments to Initiation Checklist, 
    Re: Material Injury, July 27, 1999).
    
    Initiation of Antidumping Investigations
    
        Based upon our examination of the petitions on structural beams and 
    petitioners' responses to our supplemental questionnaire clarifying the 
    petitions, as well as our discussion with the authors of the foreign 
    market research reports supporting the petition on South Korea and 
    other measures to confirm the information contained in these reports, 
    we have found that the petitions meet the requirements of section 732 
    of the Act. Therefore, we are initiating antidumping duty 
    investigations to determine whether imports of structural beams from 
    Germany, Japan, South Korea, and Spain are being, or are likely to be, 
    sold in the United States at less than fair value. Unless this deadline 
    is extended, we will make our preliminary determinations no later than 
    140 days after the date of publication of this notice.
    
    Distribution of Copies of the Petitions
    
        In accordance with section 732(b)(3)(A) of the Act, a copy of the 
    public version of each petition has been provided to the 
    representatives of Germany, Japan, South Korea, and Spain. We will 
    attempt to provide a copy of the public version of each petition to 
    each exporter named in the petition (as appropriate).
    
    International Trade Commission Notification
    
        We have notified the ITC of our initiations, as required by section 
    732(d) of the Act.
    
    Preliminary Determinations by the ITC
    
        The ITC will determine by August 23, 1999, whether there is a 
    reasonable indication that imports of structural beams from Germany, 
    Japan, South Korea, and Spain are causing material injury, or 
    threatening to cause material injury, to a U.S. industry. A negative 
    ITC determination for any country will result in the investigation 
    being terminated with respect to that country; otherwise, these 
    investigations will proceed according to statutory and regulatory time 
    limits.
        This notice is published pursuant to section 777(i) of the Act.
    
        Dated: July 27, 1999.
    Robert S. LaRussa,
    Assistant Secretary for Import Administration.
    [FR Doc. 99-19919 Filed 8-2-99; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Effective Date:
8/3/1999
Published:
08/03/1999
Department:
International Trade Administration
Entry Type:
Notice
Document Number:
99-19919
Dates:
August 3, 1999.
Pages:
42084-42088 (5 pages)
Docket Numbers:
A-428-826, A-469-809, A-588-852, A-580-841
PDF File:
99-19919.pdf