94-19068. Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination: Stainless Steel Bar From India  

  • [Federal Register Volume 59, Number 149 (Thursday, August 4, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-19068]
    
    
    [[Page Unknown]]
    
    [Federal Register: August 4, 1994]
    
    
    -----------------------------------------------------------------------
    
    DEPARTMENT OF COMMERCE
    [A-533-810]
    
     
    
    Preliminary Determination of Sales at Less Than Fair Value and 
    Postponement of Final Determination: Stainless Steel Bar From India
    
    Agency: Import Administration, International Trade Administration, 
    Department of Commerce.
    
    EFFECTIVE DATE: August 4, 1994.
    
    FOR FURTHER INFORMATION CONTACT: Kate Johnson or Irene Darzenta, Office 
    of Antidumping Investigations, Import Administration, U.S. Department 
    of Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 
    20230; telephone (202) 482-4929 or 482-6320, respectively.
    
    Preliminary Determination
    
        The Department of Commerce (the Department) preliminarily 
    determines that stainless steel bar (SSB) from India is being, or is 
    likely to be, sold in the United States at less than fair value, as 
    provided in section 733 of the Tariff Act of 1930 (the Act), as 
    amended. The estimated margins are shown in the ``Suspension of 
    Liquidation'' section of this notice.
    
    Scope of Investigation
    
        The merchandise covered by this investigation is stainless steel 
    bar (SSB). For purposes of this investigation, the term ``stainless 
    steel bar'' means articles of stainless steel in straight lengths that 
    have been either hot-rolled, forged, turned, cold-drawn, cold-rolled or 
    otherwise cold-finished, or ground, having a uniform solid cross 
    section along their whole length in the shape of circles, segments of 
    circles, ovals, rectangles (including squares), triangles, hexagons, 
    octagons or other convex polygons. SSB includes cold-finished SSBs that 
    are turned or ground in straight lengths, whether produced from hot-
    rolled bar or from straightened and cut rod or wire, and reinforcing 
    bars that have indentations, ribs, grooves, or other deformations 
    produced during the rolling process.
        Except as specified above, the term does not include stainless 
    steel semi-finished products, cut length flat-rolled products (i.e., 
    cut length rolled products which if less than 4.75 mm in thickness have 
    a width measuring at least 10 times the thickness, or if 4.75 mm or 
    more in thickness having a width which exceeds 150 mm and measures at 
    least twice the thickness), wire (i.e., cold-formed products in coils, 
    of any uniform solid cross section along their whole length, which do 
    not conform to the definition of flat-rolled products), and angles, 
    shapes and sections.
        The SSB subject to this investigation is currently classifiable 
    under subheading 7222.10.0005, 7222.10.0050, 7222.20.0005, 
    7222.20.0045, 7222.20.0075 and 7222.30.0000 of the Harmonized Tariff 
    Schedule of the United States (HTSUS). Although the HTSUS subheading is 
    provided for convenience and customs purposes, our written description 
    of the scope of this investigation is dispositive.
    
    Period of Investigation
    
        The period of investigation (POI) is July 1, 1993, to December 31, 
    1993.
    
    Case History
    
        Since the notice of initiation on January 19, 1994 (59 FR 3844, 
    January 27, 1994), the following events have occurred.
        On February 14, 1994, the International Trade Commission (ITC) 
    issued an affirmative preliminary injury determination (USITC 
    Publication 2734, February 1994).
        On February 25, 1994 we named Grand Foundry, Limited (Grand 
    Foundry) and Mukand, Limited (Mukand) as respondents in this 
    investigation, and on February 28, 1994, we issued antidumping 
    questionnaires to these companies. These companies accounted for at 
    least 60 percent of the exports of the subject merchandise to the 
    United States during the POI.
        On February 26, 1994, Isibars, Limited (Isibars), an Indian 
    producer/exporter of subject merchandise which was not selected as a 
    mandatory respondent, requested that it be allowed to participate in 
    the investigation as a voluntary respondent. On March 9, 1994, we sent 
    Isibars a brief questionnaire requesting sales volume and value data 
    and noted that based upon Isibars response we would determine if it was 
    appropriate to issue a complete questionnaire to the company. On March 
    14, 1994, Isibars submitted its response to this questionnaire. 
    Subsequently, on March 15, the Department issued Isibars a 
    questionnaire, noting its policy with respect to voluntary respondents. 
    On March 28, 1994, Isibars requested via facsimile a 30-day extension 
    in order to respond to the Department's questionnaire. On March 28, 
    1994, we granted Isibars a partial extension contingent upon receipt of 
    an officially filed extension request. However, because Isibars never 
    submitted such an extension request or a response to any section of our 
    questionnaire, we never deemed it to be a mandatory respondent.
        On March 4, 1994, Akai Impex Ltd. (Akai), another Indian producer/
    exporter of subject merchandise, requested that it be allowed to 
    participate in the investigation. Subsequently, on March 7, 1994, we 
    sent Akai a brief questionnaire requesting sales volume and value data 
    and noted that based upon Akai's response we would determine if it was 
    appropriate to issue it a questionnaire. Akai's response to this 
    questionnaire was received on March 14, 1994. Our examination of this 
    response revealed that Akai had not made sales of the subject 
    merchandise to the United States during the POI, and on this basis, we 
    denied its request for voluntary respondent status on March 17, 1994.
        On March 23, 1994, we received a response to Section A of the 
    Department's questionnaire from Grand Foundry. In that response, 
    respondent reported that it made no sales of export-quality merchandise 
    in the home market during the POI. On April 4, 1994, we received 
    petitioners' comments on Grand Foundry's Section A response. On April 
    5, 1994, the Department determined that Grand Foundry's third country 
    sales to Germany were the appropriate basis for foreign market value 
    (FMV), pursuant to 19 C.F.R. 353.49.
        On March 25, 1994, we received comments on the issue of class or 
    kind of merchandise from interested parties, per the Department's 
    invitation for such comments in its notice of initiation. On April 13, 
    1994, we received rebuttal comments on this issue. On May 11, 1994, we 
    determined that SSB constitutes one class or kind of merchandise. (See 
    May 11, 1994, Decision Memorandum to Barbara Stafford from The Team Re: 
    Class or Kind of Merchandise.)
        On April 22, 1994, we received a response to Sections B and C of 
    the Department's questionnaire from Grand Foundry. On May 4, 1994, we 
    received petitioners' comments regarding Grand Foundry's responses to 
    Sections B and C. On May 10, 1994, we issued a supplemental 
    questionnaire to Grand Foundry. Grand Foundry submitted its 
    supplemental response on June 20, 1994. Mukand never responded to any 
    section of our antidumping questionnaire.
        On April 26, 1994 the Department received a request from 
    petitioners to postpone the preliminary determination until July 28, 
    1994. On May 16, 1994, we published in the Federal Register (59 FR 
    25447), a notice announcing the postponement of the preliminary 
    determination until not later than July 28, 1994, pursuant to 
    petitioners' request, in accordance with 19 C.F.R. 353.15(c) and (d).
        On May 25, 1994, petitioners alleged that Grand Foundry sold the 
    subject merchandise in Germany at prices below its cost of production 
    (COP). Respondent rebutted the allegation on June 2, 1994. Petitioners 
    supplemented their original allegation on June 7, 1994. On June 15, 
    1994, we determined that petitioners' allegation provided a reasonable 
    basis to believe or suspect below cost sales, pursuant to section 
    353.51(a) of the Department's regulations. Accordingly, we initiated a 
    sales below cost investigation for Grand Foundry on June 15, 1994, and 
    subsequently issued Section D of the Department's questionnaire on June 
    16. On July 8, 1994, Grand Foundry requested an extension of time until 
    August 1, 1994, to respond to Section D of the questionnaire. The 
    Department granted such an extension on July 12, 1994.
        Also on July 12, Grand Foundry requested that the Department 
    postpone the final determination until 135 days after the date of 
    publication of the Department's preliminary determination, if that 
    determination is affirmative.
    
    Best Information Available
    
        In accordance with section 776(c) of the Act, we have determined 
    that the use of best information available (BIA) is appropriate for 
    Mukand. Mukand did not respond to the Department's questionnaire issued 
    on February 28, 1994. Because Mukand failed to answer the Department's 
    questionnaire, we find it has not cooperated in this investigation.
        As BIA, we are assigning the highest margin among the margins 
    alleged in the petition, in accordance with the two-tiered BIA 
    methodology under which the Department imposes the most adverse rate 
    upon a respondent who refuses to cooperate or otherwise significantly 
    impedes the proceeding, and as outlined in the Antifriction Bearings 
    (Other Than Tapered Roller Bearings) and Parts Thereof from the Federal 
    Republic of Germany; Final Results of Antidumping Duty Administrative 
    Review (56 FR 31692, 31704, July 11, 1991). The Department's 
    methodology for assigning BIA has been upheld by the U.S. Court of 
    Appeals for the Federal Circuit (see Allied-Signal Aerospace Co. v. 
    United States, Slip Op. 94-1112 (June 30, 1994); and Allied Signal 
    Aerospace Co. v. United States, 996 F.2d 1185 (Fed. Cir. 1993); see 
    also Krupp Stahl, AG et al. v. United States, 822 F. Supp. 789 (CIT 
    1993)).
    
    Such or Similar Comparisons
    
        We have determined that all the products covered by this 
    investigation constitute a single category of such or similar 
    merchandise. We made fair value comparisons on this basis. In 
    accordance with the Department's standard methodology, we first 
    compared identical merchandise. Where there were no sales of identical 
    merchandise in the third country market to compare to U.S. sales, we 
    made similar merchandise comparisons on the basis of the criteria 
    defined in Appendix V to the antidumping questionnaire, on file in Room 
    B-099 of the main building of the Department.
        We altered the order of the SSB grades specified within the grade 
    criterion of Appendix V to account for certain other SSB grades which 
    respondent sold in the third country market during the POI, but which 
    were not taken into account in Appendix V.
        We also reversed the order of the size and shape criteria in 
    Appendix V. In our original questionnaire issued on February 28, 1994, 
    the fifth and sixth matching criteria were shape and size, 
    respectively. However, based on the advice of our in-house technical 
    expert, we reversed the order of these two criteria. Subsequently, 
    Acciaierie Valbruna (Valbruna), a respondent in the concurrent 
    antidumping investigation of SSB from Italy requested that the 
    Department reconsider the reversal of these criteria in Appendix V. 
    Specifically, Valbruna argued that the distinguishing factor of SSBs as 
    compared to all other stainless steel products is that they can be 
    supplied in a variety of shapes and that the COP and price of SSBs are 
    influenced significantly more by shape than size. In light of the 
    arguments raised by Valbruna, we reversed the hierarchy of these 
    criteria to reflect the order in our original Appendix V. Although the 
    issue was not raised by any interested party in the instant 
    investigation, we reversed the order of these criteria to ensure 
    consistent treatment of respondents in performing product comparisons 
    across all concurrent SSB investigations.
    
    Fair Value Comparisons
    
        As discussed above, we are using BIA with regard to Mukand and thus 
    did not make fair value comparisons with regard to this company. For 
    the remaining company, Grand Foundry, we made fair value comparisons as 
    discussed below.
        To determine whether sales of SSB from Grand Foundry to the United 
    States were made at less than fair value, we compared the United States 
    price (``USP'') to the FMV, as specified in the ``United States Price'' 
    and ``Foreign Market Value'' sections of this notice. In accordance 
    with 19 C.F.R. 353.58, we made comparisons at the same level of trade, 
    where possible.
    
    United States Price
    
        We based USP on purchase price (PP), in accordance with section 
    772(b) of the Act, because the subject merchandise was sold to 
    unrelated purchasers in the United States before importation and 
    because exporter's sales price methodology was not otherwise indicated.
        We calculated PP based on packed CNF prices to unrelated customers. 
    In accordance with section 772(d)(2)(A) of the Act, we made deductions, 
    where appropriate, for foreign brokerage (including containerization, 
    foreign inland freight and port charges) and ocean freight.
    
    Foreign Market Value
    
        In order to determine whether there were sufficient sales of SSB in 
    the home market to serve as a viable basis for calculating FMV, we 
    compared the volume of home market sales of SSB to the volume of third 
    country sales of SSB in accordance with section 773(a)(1)(B) of the 
    Act. Based on this comparison, we determined that Grand Foundry had a 
    viable home market with respect to sales of SSB during the POI. 
    However, based on Grand Foundry's claim that its home market sales made 
    during the POI consisted only of SSB scrap and rejects and that its 
    U.S. sales during the same period consisted only of first (or export) 
    quality SSB, we determined that third country sales would be a more 
    appropriate basis for FMV. (See April 5, 1994 Decision Memorandum To 
    Richard W. Moreland From The Team Re: Appropriate Basis for FMV.)
        In order to select the appropriate third country in this case, we 
    examined three factors in accordance with 19 C.F.R. 353.49(b): (1) The 
    degree of similarity in terms of physical characteristics between the 
    products sold in the United States and the individual third country 
    markets; (2) the volume of sales in each third country market relative 
    to that in the United States; and (3) the similarity of the market 
    organization and development between the U.S. market and third country 
    market. Based on these factors, we selected sales to Germany as the 
    appropriate basis on which to calculate FMV.
        In accordance with 19 CFR 353.46, we calculated FMV based on CIF or 
    CNF prices charged to unrelated customers in Germany.
        In light of the Court of Appeals for the Federal Circuit's (CAFC) 
    decision in Ad Hoc Committee of AZ-NM-TX-FL Producers of Gray Portland 
    Cement v. United States, 13 F.3d 398 (Fed. Cir. 1994), the Department 
    no longer can deduct home market movement charges from FMV pursuant to 
    its inherent power to fill in gaps in the antidumping statute. Instead, 
    we will adjust for those expenses under the circumstance-of-sale 
    provision of 19 CFR 353.56(a) and the exporter's sales price offset 
    provision of 19 CFR 353.56(b)(2), as appropriate. Accordingly, in the 
    present case, we deducted post-sale home market movement charges from 
    FMV under the circumstance-of-sale provision of 19 CFR 353.56(a). This 
    adjustment included home market foreign brokerage (including 
    containerization, foreign inland freight, loading and port fees), ocean 
    freight, and marine insurance.
        Pursuant to 19 CFR 353.56(a)(2), we made further circumstance-of-
    sale adjustments, where appropriate, for differences in credit 
    expenses, and bank charges (including bank interest, courier charges 
    and commissions) between the U.S. and third country markets. We 
    recalculated credit expenses to reflect the revised short-term interest 
    rate reported by respondent. We deducted third country commissions and 
    added U.S. indirect selling expenses capped by the amount of third 
    country commissions.
        We also deducted third country packing and added U.S. packing 
    costs, in accordance with section 773(a)(1) of the Act. We made 
    adjustments, where appropriate, for differences in the physical 
    characteristics of the merchandise, in accordance with section 
    773(a)(4)(C) of the Act.
    
    Cost of Production
    
        Based on petitioner's allegation, and in accordance with section 
    773(b) of the Act, the Department initiated an investigation to 
    determine whether Grand Foundry made third country sales of subject 
    merchandise at prices below its COP, and over an extended period of 
    time. Although Grand Foundry's COP questionnaire response will be 
    received too late for consideration for the preliminary determination, 
    it will be verified and considered for the final determination.
    
    Currency Conversion
    
        We made currency conversions based on the official exchange rates 
    in effect on the dates of the U.S. sales as certified by the Federal 
    Reserve Bank of New York. See 19 CFR 353.60(a).
    
    Verification
    
        As provided in section 776(b) of the Act, we will verify the 
    information used in making our final determination.
    
    Suspension of Liquidation
    
        In accordance with section 733(d)(1) of the Act, we are directing 
    the Customs Service to suspend liquidation of all entries of SSB from 
    India, as defined in the ``Scope of Investigation'' section of this 
    notice, that are entered, or withdrawn from warehouse, for consumption 
    on or after the date of publication of this notice in the Federal 
    Register. The Customs Service shall require a cash deposit or the 
    posting of a bond equal to the estimated preliminary dumping margins, 
    as shown below. The suspension of liquidation will remain in effect 
    until further notice. The estimated preliminary dumping margins are as 
    follows:
    
    ------------------------------------------------------------------------
                                                                     Margin 
                   Manufacturer/Producer/Exporter                   Percent 
    ------------------------------------------------------------------------
    Grand Foundry................................................       2.67
    Mukand.......................................................      21.02
    All Others...................................................      11.85
    ------------------------------------------------------------------------
    
    ITC Notification
    
        In accordance with section 733(f) of the Act, we have notified the 
    ITC of our determination. If our final determination is affirmative, 
    the ITC will determine whether imports of the subject merchandise are 
    materially injuring, or threaten material injury to, the U.S. industry 
    before the later of 120 days after the date of the preliminary 
    determination or 45 days after our final determination.
    
    Postponement of Final Determination
    
        Pursuant to section 735(a)(2)(A) of the Act, on July 12, 1994, 
    Grand Foundry, a significant producer of the subject merchandise, 
    requested that, in the event of an affirmative preliminary 
    determination in this investigation, the Department postpone its final 
    determination until 135 days after the date of publication of an 
    affirmative preliminary determination. Pursuant to 19 CFR 353.20(b), 
    because our preliminary determination is affirmative, and no compelling 
    reasons for denial exist, we are postponing the final determination 
    until the 135th day after the date of publication of this notice in the 
    Federal Register.
    
    Public Comment
    
        In accordance with 19 CFR 353.38, case briefs or other written 
    comments in at least ten copies must be submitted to the Assistant 
    Secretary for Import Administration no later than November 8, 1994, and 
    rebuttal briefs no later than November 15, 1994. In accordance with 19 
    CFR 353.38(b), we will hold a public hearing, if requested, to give 
    interested parties an opportunity to comment on arguments raised in 
    case or rebuttal briefs. Tentatively, the hearing will be held on 
    November 17, 1994 at 9:30 a.m. at the U.S. Department of Commerce, Room 
    3708, 14th Street and Constitution Avenue NW., Washington, DC 20230. 
    Parties should confirm by telephone the time, date, and place of the 
    hearing 48 hours before the scheduled time.
        Interested parties who wish to request a hearing must submit a 
    written request to the Assistant Secretary for Import Administration, 
    U.S. Department of Commerce, Room B-099, within ten days of the 
    publication of this notice in the Federal Register. Request should 
    contain: (1) the party's name, address, and telephone number; (2) the 
    number of participants; and (3) a list of the issues to be discussed. 
    In accordance with 19 CFR 353.38(b), oral presentation will be limited 
    to issues raised in the briefs.
        This determination is published pursuant to section 733(f) of the 
    Act (19 U.S.C. 1673b(f)) and 19 CFR 353.15(a)(4).
    
        Dated: July 28, 1994.
    Barbara R. Stafford,
    Acting Assistant Secretary for Import Administration.
    [FR Doc. 94-19068 Filed 8-3-94; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Published:
08/04/1994
Department:
Commerce Department
Entry Type:
Uncategorized Document
Document Number:
94-19068
Dates:
August 4, 1994.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: August 4, 1994, A-533-810