Certain Cut-To-Length Carbon Steel Plate From Finland; Preliminary Results of Antidumping Duty Administrative Review

DEPARTMENT OF COMMERCE

[A-405-802]

Certain Cut-To-Length Carbon Steel Plate From Finland;

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 one respondent, the Department of

Commerce (the Department) is conducting an administrative review of the

antidumping duty order on Certain Cut-To-Length Carbon Steel Plate from

Finland (A-405-802). This review covers one manufacturer/exporter of

the subject merchandise to the United States during the period of

review (POR) February 4, 1993, through July 31, 1994.

We have preliminarily determined that sales have not 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 not to assess antidumping duties.

Interested parties are invited to comment on these preliminary

results.

EFFECTIVE DATE: July 18, 1995.

FOR FURTHER INFORMATION CONTACT: Jeanene Lairo or Stephen Jacques,

Office of Agreements Compliance, Import Administration, International

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

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

482-3793.

SUPPLEMENTARY INFORMATION:

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.

Background

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

(58 FR 37136) the final affirmative antidumping duty determination on

certain cut-to-length carbon steel plate

[[Page 36777]]

from Finland, 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 February 4, 1993, through July

31, 1994 (59 FR 39543). The respondent, Rautaruukki Oy, requested an

administrative review. We initiated the review on September 8, 1994 (59

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

section 751 of the Tariff Act of 1930, as amended (the Tariff Act).

Scope of the Review

The products covered by this administrative review constitute one

``class or kind'' of merchandise: certain cut-to-length carbon steel

plate. These products include 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 Harmonized Tariff

Schedule (HTS) under item numbers 7208.31.0000, 7208.32.0000,

7208.33.1000, 7208.33.5000, 7208.41.0000, 7208.42.0000, 7208.43.0000,

7208.90.0000, 7210.70.3000, 7210.90.9000, 7211.11.0000, 7211.12.0000,

7211.21.0000, 7211.22.0045, 7211.90.0000, 7212.40.1000, 7212.40.5000,

and 7212.50.0000. Included 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 is grade X-70 plate. These HTS item numbers are

provided for convenience and Customs purposes. The written description

remains dispositive.

The POR is February 4, 1993, through July 31, 1994, and covers

entries made of certain cut-to-length carbon steel plate by one

manufacturer/exporter (Rautaruukki Oy).

United States Price

All of Rautaruukki Oy's U.S. sales were based on the price to the

first unrelated purchaser in the United States. The Department

determined that purchase price, as defined in section 772 of the Tariff

Act, was the appropriate basis for calculating United States price

(USP).

Before making adjustments to purchase price, we modified the U.S.

sales database based on findings made at the sales and cost

verifications. We revised technical service and ocean freight expenses,

and reclassified the level of trade. Subsequently, we made adjustments

to purchase price, where appropriate, for foreign brokerage and

handling, and ocean freight. We disallowed advertising and technical

services as U.S. direct selling expenses. These expenses were

disallowed because Rautaruukki Oy failed to provide sufficient

information supporting the claim that these were direct selling

expenses. We also adjusted USP for taxes 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).

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 related and unrelated

purchasers in the home market.

Based on the Department's previous determination of sales made at

below the cost of production (COP) in the original less-than-fair-value

(LTFV) investigation, in accordance with section 773(b) of the Tariff

Act, we determined that there were reasonable grounds to believe or

suspect that, for this review period, Rautaruukki Oy made sales of

subject merchandise in the home market at prices less than the COP. As

a result, we investigated whether Rautaruukki Oy sold such or similar

merchandise in the home market at prices below the COP. In accordance

with 19 CFR 353.51(c), to determine whether home market prices were

below COP, we calculated COP for Rautaruukki Oy as the sum of reported

materials, fabrication, labor, general, and packing expenses.

We made the following adjustments to Rautaruukki Oy's reported

costs. Certain expenses incurred during the POR (e.g., a cancelled coal

contract, the cost of byproducts, and an unrealized exchange gain) that

were not included in Rautaruukki Oy's cost management system, but were

included in the company's financial accounting system, were added to

the COP. We adjusted COP for an extraordinary expense reported in

Rautaruukki Oy's profit and loss statements, but not recorded in the

cost management systems which were used to prepare the response. We

also adjusted for changes made to interest expenses in 1993.

We compared home market selling prices, net of inland freight,

discounts and rebates, credit expenses and warranty expenses as direct

selling expenses, and packing expenses, to each product's COP.

In accordance with section 773(b) of the Tariff Act, in determining

whether to disregard home market sales made at prices below the COP, we

examined whether such sales were made in substantial quantities over an

extended period of time, and whether such sales were made at prices

which permitted recovery of all costs within a reasonable period of

time in the normal course of trade.

In accordance with our normal practice, for each model for which

less than 10 percent, by quantity, of the home market sales during the

POR were made at prices below COP, we included all sales of that model

in the computation of FMV. For each model for which 10 percent or more,

but less than 90 percent, of the home market sales during the POR were

priced below COP, we excluded those sales priced below COP, provided

that they were made over an extended period of time. For each model for

which 90 percent or more of the home market sales during the POR were

priced below COP and were made over an extended period of time, we

disregarded all sales of that model in our calculation and, in

accordance with section 773(b) of the Tariff Act, we used the

constructed value (CV) of those models, as described below. See, e.g.,

Mechanical Transfer Presses from Japan, Final Results of Antidumping

Duty Administrative Review, 59 FR 9958 (March 2, 1994).

In accordance with section 773(b)(1) of the Tariff Act, to

determine whether sales below cost had been made over an extended

period of time, we compared the number of months in which sales below

cost occurred for a particular model to the number of months in which

that model was sold. If the model was sold in fewer than three months,

we

[[Page 36778]]

did not disregard below-cost sales unless there were below-cost sales

of that model in each month sold. If a model was sold in three or more

months, we did not disregard below-cost sales unless there were sales

below cost in at least three of the months in which the model was sold.

We used CV as the basis for FMV when an insufficient number of home

market sales were made at prices above COP. See Tapered Roller Bearings

and Parts Thereof, Finished and Unfinished, From Japan and Tapered

Roller Bearings, Four Inches or Less in Outside Diameter, and

Components Thereof, From Japan; Final Results of Antidumping Duty

Administrative Reviews, 58 FR 64720, 64729 (December 8, 1993).

In accordance with section 773 of the Tariff Act, for those models

for which there was an adequate number of sales at prices above the

COP, we calculated FMV based on home market prices to related and

unrelated purchasers. We used prices to related purchasers only if such

prices were at arm's length. In order to determine whether sales to

Rautaruukki Oy's customers were at arms length, the Department compared

prices to related parties and prices to unrelated parties, on a model-

by-model basis and, when possible, at the same level of trade.

We reclassified the levels of trade in the home market sales

database by collapsing (1) sales to and (2) sales through wholesalers

together into one level of trade. The Department has preliminarily

determined that this collapsed level of trade matches the level of

trade reported in the U.S. market. In accordance with 19 CFR 353.58, we

compared U.S. sales to home market sales made at the same level of

trade, where possible. Furthermore, the Department made adjustments to

the home market sales database, based on findings made at the sales and

cost verifications. We revised technical service and ocean freight

expenses, created a modified product control number for secondary

merchandise, and made adjustments to several observations to correct

minor clerical errors.

Pursuant to 19 CFR 353.56, we made circumstance-of-sale adjustments

for differences in credit expenses. Furthermore, we adjusted the FMV

for the Finnish value-added tax (i.e., ``turn-over tax'').

In Appendix V of the Department's questionnaire, issued on

September 15, 1995, the Department established a hierarchy of product

characteristics that would be used to identify individual plate

products. This hierarchy was based on a draft which had been released

for comment prior to issuance of the questionnaire. Each unique

combination of these product characteristics is treated as a distinct

product, identified by a unique control number. Likewise, all products

with the same combination of these product characteristics are

considered to be identical and are to be assigned the same control

number. Upon review of Rautaruukki Oy's computer database, we

discovered some instances of multiple control numbers being assigned to

the same set of product characteristics. Consequently, we determined to

collapse two control numbers in the home market sales and COP databases

which had identical product characteristics and which were matched to

U.S. sales in the margin calculation program.

We calculated FMV based on a weighted average of actual and

theoretical weight because Rautaruukki Oy failed to provide adequate

conversion data at verification. We reclassified technical services in

the home market as indirect selling expenses because Rautaruukki Oy was

unable to tie these expenses to specific sales. We also disallowed

selling expenses for advertising and promotion costs, a claimed

quantity adjustment, and another claimed adjustment because Rautaruukki

Oy failed to provide sufficient information regarding these expenses to

support its claims.

No other adjustments were claimed or allowed.

Currency Conversion

No certified rates of exchange, as furnished by the Federal Reserve

Bank of New York, were available for the POR. In place of the official

certified rates, we used the average monthly exchange rates published

by the International Monetary Fund.

Preliminary Results of Review

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

determine that no margin exists for Rautaruukki Oy for the period

February 4, 1993, through July 31, 1994.

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. The Department

will issue appraisement instructions directly to U.S. Customs.

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 these administrative reviews, 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 cut-to-

length carbon steel plate from Finland as follows: (1) The cash deposit

rate for the reviewed company will be the rate established in the final

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

this review, or the original LTFV investigation, but the manufacturer

is, the cash deposit rate will be the rate established for the

manufacturer of the merchandise for the most recent period examined;

and (3) If neither the exporter nor the manufacturer is a firm covered

in this review, the cash deposit rate will be 32.25 percent. This is

the ``all other rate'' established in the LTFV investigation. See Final

Determination of Sales at Less Than Fair Value: Certain Cut-To-Length

Carbon Steel Plate from Finland, 58 FR 37122 (July 9, 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 Secretary's presumption that

reimbursement of antidumping duties occurred and the subsequent

assessment of double antidumping duties.

These administrative reviews 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.

[[Page 36779]]

Dated: July 11, 1995.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 95-17499 Filed 7-17-95; 8:45 am]

BILLING CODE 3510-DS-P