Initiation of Antidumping Duty Investigation: Clad Steel Plate From Japan

DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-838]

Initiation of Antidumping Duty Investigation: Clad Steel Plate

From Japan

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: October 25, 1995.

FOR FURTHER INFORMATION CONTACT: Ellen Grebasch at (202) 482-3773,

Dorothy Tomaszewski at (202) 482-0631 or Erik Warga at (202) 482-0922,

Office of Antidumping Investigations, Import Administration,

International Trade Administration, U.S. Department of Commerce, 14th

Street and Constitution Avenue, NW., Washington, DC 20230.

INITIATION OF INVESTIGATION:

The Applicable Statute

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'').

The Petition

On September 29, 1995, the Department of Commerce (``the

Department'') received a petition filed in proper form by Lukens Steel

Company (``petitioner''), a domestic producer of clad steel plate.

In accordance with section 732(b) of the Act, petitioner alleges

that imports of clad steel plate from Japan 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, or threatening material injury to, a U.S. industry.

Petitioner claims that it has standing to file the petition because

it is an interested party, as defined under section 771(9)(C) of the

Act.

Determination of Industry Support for the Petition

Section 732(c)(4)(A) of the Act requires the Department to

determine, prior to the initiation of an investigation, that a minimum

percentage of the domestic industry supports an antidumping petition. A

petition meets these minimum requirements if the domestic producers

[[Page 54667]]

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.

A review of the production data provided in the petition and other

information readily available to the Department indicates that the

petitioner accounts for more than 25 percent of the total production of

the domestic like product and for more than 50 percent of that produced

by companies expressing support for, or opposition to, the petition.

The Department received no expressions of opposition to the petition

from any domestic producer or workers. Accordingly, the Department

determines that the petition is supported by the domestic industry.

Scope of the Investigation

The scope of this investigation is all clad1 steel plate of a

width of 600 millimeters (``mm'') or more and a composite thickness of

4.5mm or more. Clad steel plate is a rectangular finished steel mill

product consisting of a layer of cladding material (usually stainless

steel or nickel) which is metallurgically bonded to a base or backing

of ferrous metal (usually carbon or low alloy steel) where the latter

predominates by weight.

\1\Cladding is the association of layers of metals of different

colors or natures by molecular interpenetration of the surfaces in

contact. This limited diffusion is characteristic of clad products

and differentiates them from products metalized in other manners

(e.g., by normal electroplating). The various cladding processes

include pouring molten cladding metal onto the basic metal, followed

by rolling; simple hot-rolling of the cladding metal to ensure

efficient welding to the basic metal; any other method of deposition

or superimposing of the cladding metal followed by any mechanical or

thermal process to ensure welding (e.g., electro-cladding), in which

the cladding metal (nickel, chromium, etc.) is applied to the basic

metal by electroplating, molecular interpenetration of the surfaces

in contact then being obtained by heat treatment at the appropriate

temperature with subsequent cold-rolling. See Harmonized Commodity

Description and Coding System Explanatory Notes, Chapter 72, General

Note (IV)(C)(2)(e).

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Stainless clad steel plate is manufactured to American Society for

Testing and Materials (``ASTM'') specifications A263 (400 series

stainless types) and A264 (300 series stainless types). Nickel and

nickel-base alloy clad steel plate is manufactured to ASTM

specification A265. These specifications are illustrative but not

necessarily all-inclusive with respect to the domestic like product.

Clad steel plate within the scope of this investigation is

classifiable under the Harmonized Tariff Schedule of the United States

(``HTSUS'') 7210.90.10.00. Although the HTSUS subheading is provided

for convenience and customs purposes, our written description of the

scope of this investigation is dispositive.

Export Price and Normal Value

Export price was based on petitioner's sale order, with the terms

of sale as delivered, which was ``lost'' to a producer in Japan.

Petitioner reduced the price based on the ``lost'' sale order for ocean

freight, marine insurance, U.S. duties, inland freight and credit

expense. For purposes of initiation, we disallowed petitioner's

adjustment for credit expenses because the Act does not provide for

deduction of such expenses from export price.

Petitioner based normal value on constructed value (``CV'') in

accordance with section 773(a)(4) of the Act because it could not

obtain price quotations for subject merchandise in the home market.

Petitioner computed CV using its own production experience adjusting

for known differences in Japanese labor, electricity and natural gas

rates. The adjusted Japanese labor rate was based on 1994 published

compensation cost from the Bureau of Labor Statistics. The adjusted

electricity and natural gas rates were based on 1993 published OECD

energy prices. For SG&A excluding interest costs, the petitioner relied

on the Japanese producer's March 1995 consolidated summary financial

data that it obtained from a public source. We note that in the

calculation of CV, petitioner did not include an amount for interest

costs. Because the 1995 financial data showed the Japanese producer to

be operating at a loss, profit was figured as zero in the CV

calculation.

Based on comparisons of export price to normal value, the

calculated dumping margin for clad steel plate from Japan, as revised

by the Department, is 118.53 percent ad valorem.

Fair Value Comparisons

Based on the data provided by the petitioner, there is reason to

believe that imports of clad steel plate from Japan are being, or are

likely to be, sold at less than fair value.

Initiation of Investigation

We have examined the petition on clad steel plate and have found

that it meets the requirements of section 732 of the Act, including the

requirements concerning allegations of the material injury or threat of

material injury to the domestic producers of a domestic like product by

reason of the complained-of imports, allegedly sold at less than fair

value. Therefore, we are initiating an antidumping duty investigation

to determine whether imports of clad steel plate from Japan are being,

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

Unless extended, we will make our preliminary determination by February

15, 1996.

Distribution of Copies of the Petition

In accordance with section 732(b)(3)(A) of the Act, a copy of the

public version of the petition has been provided to the representatives

of the government of Japan. We will attempt to provide a copy of the

public version of the petition to each exporter named in the petition.

International Trade Commission (ITC) Notification

We have notified the ITC of our initiation, as required by section

732(d) of the Act.

Preliminary Determination by the ITC

The ITC will determine by November 13, 1995, whether there is a

reasonable indication that imports of clad steel plate from Japan are

causing material injury, or threatening to cause material injury, to a

U.S. industry. A negative ITC determination will result in the

investigation being terminated; otherwise, the investigation will

proceed according to statutory and regulatory time limits.

Dated: October 19, 1995.

Susan G. Esserman,

Assistant Secretary for Import Administration

[FR Doc. 95-26482 Filed 10-24-95; 8:45 am]

BILLING CODE 3510-DS-P