Certain Cold-Rolled Carbon Steel Flat Products From The Netherlands; Preliminary Results of Antidumping Duty Administrative Review

DEPARTMENT OF COMMERCE

International Trade Administration

[A-421-803]

Certain Cold-Rolled Carbon Steel Flat Products From The

Netherlands; Preliminary Results of Antidumping Duty Administrative

Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of Preliminary Results of Antidumping Duty

Administrative Review.

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SUMMARY: In response to a request by the respondent, the Department of

Commerce (the Department) has conducted an administrative review of the

antidumping duty order on Certain Cold-Rolled Carbon Steel Flat

Products From the Netherlands (A-421-804). The review covers one

manufacturer/exporter of the subject merchandise to the United States

during the period of review (POR) August 18, 1993 through July 31,

1994.

We have preliminarily determined that sales have been made below

the foreign market value (FMV). If these preliminary results are

adopted in our final results of administrative review, we will instruct

U.S. Customs to assess antidumping duties equal to the difference

between the United States price (USP) and the FMV.

Interested parties are invited to comment on these preliminary

results.

EFFECTIVE DATE: July 12, 1995.

FOR FURTHER INFORMATION CONTACT: Helen Kramer or Robin Gray, Office of

[[Page 35894]]

Agreements Compliance, Import Administration, International Trade

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

Constitution Avenue, NW., Washington, DC 20230, telephone: (202) 482-

0405 or (202) 482-0196, respectively.

SUPPLEMENTARY INFORMATION:

Background

On July 9, 1993, the Department published in the Federal Register

(58 FR 37199) the final affirmative antidumping duty determination on

Certain Cold-Rolled Carbon Steel Flat Products from the Netherlands,

for which we published an antidumping duty order on August 19, 1993 (58

FR 44172). On August 3, 1994, the Department published the notice of

``Opportunity to Request an Administrative Review'' of this order for

the period August 18, 1993 through July 31, 1994 (59 FR 39543). One

respondent, Hoogovens Groep BV (Hoogovens), requested an administrative

review (59 FR 39543). We initiated the administrative review for the

period August 18, 1993 through July 31, 1994, on September 8, 1994 (59

FR 46391). The Department is now conducting this review in accordance

with section 751 of the Tariff Act of 1930, as amended (the Tariff

Act).

Applicable Statute and Regulations

Unless otherwise indicated, all citations to the statute and to the

Department's regulations are references to the provisions as they

existed on December 31, 1994.

Scope of the Review

The products covered by this review include cold-rolled (cold-

reduced) carbon steel flat-rolled products, of rectangular shape,

neither clad, plated nor coated with metal, whether or not painted,

varnished or coated with plastics or other nonmetallic substances, in

coils (whether or not in successively superimposed layers) and of a

width of 0.5 inch or greater, or in straight lengths 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

7209.11.0000, 7209.12.0030, 7209.12.0090, 7209.13.0030, 7209.13.0090,

7209.14.0030, 7209.14.0090, 7209.21.0000, 7209.22.0000, 7209.23.0000,

7209.24.1000, 7209.24.5000, 7209.31.0000, 7209.32.0000, 7209.33.0000,

7209.34.0000, 7209.41.0000, 7209.42.0000, 7209.43.0000, 7209.44.0000,

7209.90.0000, 7210.70.3000, 7210.90.9000, 7211.30.1030, 7211.30.1090,

7211.30.3000, 7211.30.5000, 7211.41.1000, 7211.41.3030, 7211.41.3090,

7211.41.5000, 7211.41.7030, 7211.41.7060, 7211.41.7090, 7211.49.1030,

7211.49.1090, 7211.49.3000, 7211.49.5030, 7211.49.5060, 7211.49.5090,

7211.90.0000, 7212.40.1000, 7212.40.5000, 7212.50.0000, 7217.11.1000,

7217.11.2000, 7217.11.3000, 7217.19.1000, 7217.19.5000, 7217.21.1000,

7217.29.1000, 7217.29.5000, 7217.31.1000, 7217.39.1000, and

7217.39.5000. Included in this review are flat-rolled products of

nonrectangular 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

bevelled or rounded at the edges. Excluded from this review is certain

shadow mask steel, i.e., aluminum-killed, cold-rolled steel coil that

is open-coil annealed, has a carbon content of less than 0.002 percent,

is of 0.003 to 0.012 inch in thickness, 15 to 30 inches in width, and

has an ultra flat, isotropic surface. These HTS item numbers are

provided for convenience and Customs purposes. The written description

remains dispositive.

The POR is August 18, 1993, through July 31, 1994. This review

covers sales of cold-rolled carbon steel by Hoogovens.

United States Price

The Department used exporter's sales price (ESP) and purchase

price, as defined in section 772 of the Tariff Act. ESP was based on

the packed, delivered price to unrelated purchasers in the United

States after further manufacturing. We made adjustments, where

applicable, for foreign inland freight, ocean freight, marine

insurance, brokerage and handling, U.S. inland freight, U.S. duty,

commissions to unrelated parties, U.S. credit, discounts, billing

adjustments, warranties and technical service expenses and packing

expenses incurred in the United States, and indirect selling expenses

(which include inventory carrying costs, other U.S.-incurred selling

expenses, and export selling expenses). We also adjusted ESP for value

added in further manufacturing, including an allocation of profit

earned on U.S. sales. On April 28, 1995, Hoogovens submitted, at the

Department's request, minor corrections to the ESP sales listing and

further manufacturing cost data. However, this submission also included

the breakout of two new model numbers. Further manufacturing costs were

not provided for these two new models. To calculate further

manufacturing costs for these models, we are using for purposes of the

preliminary determination, as the best information available (``BIA'')

(pursuant to section 776(c) of the Act) the maximum further

manufacturing costs provided by Hoogovens for secondary merchandise.

See Analysis Memorandum to the File, May 26, 1995.

The purchase price sales were based on the sales price to the first

unrelated purchaser in the United States. We made adjustments to

purchase price, where appropriate, for foreign post-sale inland

freight, foreign inland freight, ocean freight, marine insurance,

brokerage and handling, U.S. duty, U.S. inland freight, discounts and

billing adjustments.

We also adjusted USP (purchase price and ESP) for value-added taxes

(VAT) in accordance with our practice as outlined in Silicomanganese

from Venezuela, Final Determination of Sales at Less Than Fair Value,

59 FR 55439, November 7, 1994.

No other adjustments were claimed or allowed.

Foreign Market Value

Based on a comparison of the volume of home market and third

country sales, we determined that the home market was viable.

Therefore, in accordance with section 773(a)(1)(A) of the Tariff Act,

we based FMV on the packed, delivered price to unrelated purchasers and

related purchasers (where an arm's-length relationship was

demonstrated) in the home market.

Based on a review of Hoogoven's submissions, the Department

determined that Hoogovens need not report its home market sales made by

related parties to the first unrelated party (downstream sales),

because Hoogovens' downstream sales were only a small portion of the

company's reported home market sales.

Hoogovens sold a small quantity of secondary subject merchandise in

both the United States and home markets. In this review, the Department

compared prime merchandise sold in the United States to prime

merchandise sold in the home market, and secondary merchandise to

secondary merchandise. In cases where a contemporaneous match for U.S.

sales of secondary merchandise could not be found in the home market,

the Department used the constructed value for prime merchandise to

calculate FMV.

[[Page 35895]]

We made adjustments, where applicable, for post-sale inland

freight, inland insurance and for home market direct expenses for

credit, warranties and technical services. We also made adjustments for

discounts and rebates. We adjusted for VAT in accordance with our

practice as outlined in various determinations, including

Silicomanganese from Venezuela; Final Determination of Sales at Less

Than Fair Value, 59 FR 55435, 55439 (November 7, 1994).

In addition, for comparison to ESP sales, we adjusted FMV for

indirect selling expenses (which include inventory carrying costs and

other selling expenses) in the home market, limiting the home market

indirect selling expense deductions by the amount of indirect selling

expenses incurred in the United States. The deduction from FMV for home

market indirect selling expenses was limited by the amount of the

enhanced U.S. indirect selling expense, in accordance with section

353.56 (b)(2) of the Department's regulations. In cases where a

commission was granted on the U.S. sale only, we increased the amount

classified as U.S. indirect selling expenses by the amount of the U.S.

commission for comparison to home market indirect selling expenses.

Also, after deducting home market packing, we added to FMV packing

expenses incurred in the Netherlands for U.S. sales.

We also adjusted for differences in physical characteristics. In

calculating these differences, we adjusted the costs that Hoogovens had

reduced for secondary merchandise so that they equalled those of prime

merchandise. See IPSCO v. United States, 965 F.2d 1056, 1060 (Fed. Cir.

1992).

For comparison to purchase price sales, pursuant to section 773 of

the Tariff Act, we added to FMV, where applicable, U.S. packing,

credit, and warranty expenses.

No other adjustments were claimed or allowed.

Preliminary Results of Review

As a result of our comparison of USP to FMV we preliminarily

determine that the following margin exists for the period August 18,

1993 through July 31, 1994:

------------------------------------------------------------------------

Margin

Manufacturer (percent)

------------------------------------------------------------------------

Hoogovens.................................................. 3.81

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Interested parties may request disclosure within 5 days of the date

of publication of this notice and may request a hearing within 10 days

of publication. Any hearing, if requested, will be held 44 days after

the date of publication or the first business day thereafter. Case

briefs and/or written comments from interested parties may be submitted

no later than 30 days after the date of publication. Rebuttal briefs

and rebuttals to written comments, limited to issues raised in those

comments, may be filed not later than 37 days after the date of

publication of this notice. The Department will publish the final

results of these administrative reviews including the results of its

analysis of issues raised in any such written comments or at a hearing.

The Department shall determine, and the Customs Service shall

assess, antidumping duties on all appropriate entries. Individual

differences between the USP and FMV may vary from the percentages

stated above.

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 of the

final results of this administrative review, as provided for by section

751(a)(1) of the Tariff Act. A cash deposit of estimated antidumping

duties shall be required on shipments of Certain Cold-Rolled Carbon

Steel Flat Products from the Netherlands as follows: (1) The cash

deposit rates for the reviewed company will be those rates established

in the final results of this review; (2) If the exporter is not a firm

covered in this review, or the original less-than-fair-value (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; and (3) If neither the exporter nor the manufacturer

is a firm covered in this review, the cash deposit rate will be 20.19

percent. This is the ``all others'' rate from the LTFV investigation.

See Antidumping Duty Order and Amendments to Final Determinations of

Sales at Less Than Fair Value: Certain Hot-Rolled Carbon Steel Flat

Products and Certain Cold-Rolled Carbon Steel Flat Products from the

Netherlands, 58 FR 44172 (August 19, 1993).

This notice also serves as a preliminary reminder to importers of

their responsibility under 19 CFR 353.26 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 Department's presumption that

reimbursement of antidumping duties occurred and the subsequent

assessment of double antidumping duties.

This administrative review and this notice are in accordance with

section 751(a)(1) of the Tariff Act (19 U.S.C. 1675(a)(1)) and 19 CFR

353.22.

Dated: July 5, 1995.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 95-17043 Filed 7-11-95; 8:45 am]

BILLING CODE 3510-DS-P