Notice of Initiation of Antidumping Duty Investigation: Ferrovanadium and Nitrided Vanadium From the Russian Federation

DEPARTMENT OF COMMERCE

International Trade Administration

[A-821-807]

Notice of Initiation of Antidumping Duty Investigation:

Ferrovanadium and Nitrided Vanadium From the Russian Federation

AGENCY: Import Administration, International Trade Administration,

Commerce.

EFFECTIVE DATE: June 27, 1994.

FOR FURTHER INFORMATION CONTACT:

Michelle Frederick or David Goldberger, Office of Antidumping

Investigations, Import Administration, International Trade

Administration, U.S. Department of Commerce, 14th Street and

Constitution Avenue, N.W., Washington, D.C., 20230; telephone (202)

482-0186 or 482-4136.

Initation of Investigation

The Petition

On May 31, 1994, we received a petition filed in proper form by

Shieldalloy Metallurgical Corporation (``Shieldalloy''). In accordance

with 19 CFR 353.12, petitioner alleges that imports of ferrovanadium

and nitrided vanadium from the Russian Federation are being, or are

likely to be, sold in the United States at less than fair value within

the meaning of section 731 of the Tariff Act of 1930, as amended (``the

Act''), and that such imports are materially injuring, or threaten

material injury to, a U.S. industry.

Petitioner states that it has standing to file the petition because

it is a domestic industry producing the produce subject to this

investigation. If any interested party, as described under paragraphs

(C), (D), (E), or (F) of section 771(9) of the Act, wishes to register

support for, or opposition to, this petition, it should file a written

notification with the Assistant Secretary for Import Administration.

Scope of Investigation

The products covered by this investigation are imports of

ferrovanadium and nitrided vanadium, regardless of grade, chemistry,

form, shape, or size, unless expressly excluded from the scope of this

investigation. Ferrovanadium includes alloys containing vanadium as the

predominant element, by weight (i.e. more weight than any other

element, except iron in some instances), and at least 4 percent, by

weight, of iron. Nitrided vanadium includes alloys containing vanadium

as the predominant element, by weight, and at least 5 percent, by

weight, of nitrogen. Excluded from the scope of this investigation are

vanadium additives other than ferrovanadium and nitrided vanadium, such

as vanadium-aluminum master alloys, vanadium chemicals, vanadium waste

and scrap, vanadium-bearing raw materials such as slag, boiler

residues, and fly ash, and vanadium oxides.

The products subject to this investigation are classifiable under

subheadings 7202.92.00 and 2850.00.20 of the Harmonized Tariff Schedule

of the United States (``HTSUS''). Although the HTSUS subheadings are

provided for convenience and customs purposes, our written description

of the scope is dispositive.

United States Price and Foreign Market Value

Petitoner based United States Price (USP) on price quotes to U.S.

customers, and made adjustments for distributor mark-ups and movement

expenses.

Petitioner contends that the foreign market value (FMV) of Russian-

produced imports subject to this investigation must be determined in

accordance with section 773(c) of the Act, which concerns non-market

economy (NME) countries. The Russian Federation is presumed to be an

NME within the meaning of section 771(18)(C) of the Act, because the

Department has treated it as such in previous investigations (See,

e.g., Final Determination of Sales at Less Than Fair Value:

Ferrosilicon from the Russian Federation, 58 FR 29192 (May 19, 1993)).

In accordance with section 773(c) of the Act, foreign market value

(FMV) in NME cases is based on NME producers' factors of production, as

valued in a market economy country. Absent evidence that a particular

NME country government determines which of its factories shall produce

for export to the United States, we intend, for purposes of this

investigation, to base FMV only on those factories that produced

ferrovanadium and/or nitrided vanadium sold to the United States during

the period of investigation (POI).

In the course of this investigation, parties will have the

opportunity to address this NME determination and provide relevant

information and argument on this issue. In addition, parties will have

the opportunity in this investigation to submit comments on whether FMV

should be based on prices or costs in the respective NME.

Petitioner calculated FMV on the basis of the valuation of the

factors of production. The factors of production used by petitioner

were based on experience at a German factory, related to the

petitioner, which uses a production process similar to that used in

Russia. Petitioner's FMV consisted of the sum of raw materials: labor,

energy, utilities, overhead, general expenses, profit and packing.

To value the factors of production, petitioner, citing an August

11, 1992, memorandum from the Import Administration Office of Policy to

David L. Binder with regard to Ferrosilicon from Russia, used Brazil as

the surrogate country and relied on information obtained by a related

party in Brazil. Where it could not obtain Brazilian data, petitioner

used information on South Africa, as South Africa was also mentioned as

a possible surrogate for Russia in the August 11, 1992, memorandum.

Petitioner relied on the Brazilian related party's labor rate data

instead of publicly available, published information because it

contended that the public data were obsolete and/or less accurate.

Because the Department has a clear preference for the use of publicly

available, published information, and petitioner did not demonstrate

conclusively that its reported labor rates were superior to the

publicly available information, we have recalculated FMV using the

labor rate submitted in the petition of Pure and Alloy Magnesium from

the Russian Federation, which is based on a publicly available,

published cost index for Brazil.

Fair Value Comparisons

Based on the information contained on the petition and subsequent

amendments, comparisons of USP and FMV result in alleged dumping

margins of 92.6 to 108 percent.

Initiation of Investigation

We have examined the petition on ferrovanadium and nitrided

vanadium and have found that it meets the requirements of section

732(b) of the Act. Therefore, we are initiating an antidumping duty

investigation to determine whether imports of ferrovanadium and

nitrided vanadium from the Russian Federation are being, or are likely

to be, sold in the United States at less than fair value.

ITC Notification

Section 732(d) of the Act requires us to notify the International

Trade Commission (ITC) of these actions, and we have done so.

Preliminary Determination by the ITC

The ITC will determine by July 15, 1994, whether there is a

reasonable indication that imports of ferrovanadium and nitrided

vanadium from the Russian Federation are materially injuring, or

threaten material injury to, a U.S. industry. Any ITC determination

which is negative will result in the termination of the investigation;

otherwise, this investigation will proceed according to statutory and

regulatory time limits.

This notice is published pursuant to section 732(c)(2) of the Act

and 19 CFR 353.13(b).

Dated: June 20, 1994.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 94-15534 Filed 6-22-94; 8:45 am]

BILLING CODE 3510-DS-M