Suspension of Antidumping Duty Investigation: Certain Cut-to- Length Carbon Steel Plate From Ukraine

DEPARTMENT OF COMMERCE

International Trade Administration

[A-823-808]

Suspension of Antidumping Duty Investigation: Certain Cut-to-

Length Carbon Steel Plate From Ukraine

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

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SUMMARY: The Department of Commerce (the Department) has suspended the

antidumping duty investigation involving certain cut-to-length carbon

steel plate (CTL plate) from Ukraine. The basis for this action is an

agreement between the Department and the Government of Ukraine wherein

the Government of Ukraine has agreed to restrict the volume of direct

or indirect exports to the United States of CTL plate from all

Ukrainian producers/exporters and to revise its prices to eliminate

completely sales of this merchandise to the United States at less than

fair value.

EFFECTIVE DATE: October 24, 1997.

FOR FURTHER INFORMATION CONTACT: Nithya Nagarajan, or Eugenia Chu,

Office of AD/CVD Enforcement III, Import Administration, International

Trade Administration, U.S. Department of Commerce, 14th & Constitution

Avenue N.W., Washington, D.C. 20230; telephone (202) 482-1324, or (202)

482-3964 respectively.

SUPPLEMENTARY INFORMATION:

Background

On December 3, 1996, the Department initiated an antidumping

investigation under section 732 of the Tariff Act of 1930, (the Act),

as amended, to determine whether imports of CTL plate from Ukraine are

being or are likely to be sold in the United States at less than fair

value (61 FR 64051 (December 3, 1996)). On December 19, 1996, the

United States International Trade Commission (ITC) notified the

Department of its affirmative preliminary injury determination (see ITC

Investigation Nos. 731-TA-753-756). On June 11, 1997, the Department

preliminarily determined that CTL plate is being, or is likely to be,

sold in the United States at less than fair value (LTFV), as provided

in section 733 of the Tariff Act of 1930, as amended by the Uruguay

Round Agreements Act (62 FR 31958, (June 11, 1997)).

The Department and the Government of Ukraine initialed a proposed

agreement suspending this investigation on September 24, 1997. On

September 25, 1997, we invited interested parties

[[Page 61767]]

to provide written comments on the agreement and received comments from

Geneva Steel, Gulf States Steel, Bethlehem Steel Corp., U.S. Steel

Group, United Steel Workers of America, and the Government of Ukraine.

The Department and the Government of Ukraine signed the final

suspension agreement on October 24, 1997.

Scope of Investigation

See Notice of Final Determination of Sales at Less Than Fair Value:

Certain Cut-to-Length Carbon Steel Plate from Ukraine, signed on

October 24, 1997.

Suspension of Investigation

The Department consulted with the parties to the proceeding and has

considered the comments submitted with respect to the proposed

suspension agreement. In accordance with Section 734 (l) of the Act, we

have determined that the agreement will prevent the suppression or

undercutting of price levels of domestic products by imports of the

merchandise under investigation, that the agreement is in the public

interest, and that the agreement can be monitored effectively. See

Public Interest Memorandum, dated October 24, 1997. We find, therefore,

that the criteria for suspension of an investigation pursuant to

section 734(l) of the Act have been met. The terms and conditions of

this agreement, signed October 24, 1997, are set forth in Annex 1 to

this notice.

Pursuant to section 734(f)(2)(A) of the Act, the suspension of

liquidation of all entries of cut-to-length carbon steel plate from

Ukraine entered or withdrawn from warehouse, for consumption, as

directed in our notice of ``Preliminary Determination of Sales at Less

Than Fair Value: Cut-to-Length Carbon Steel Plate from Ukraine'' and

``Postponement of the Final Determination: Cut-to-Length Carbon Steel

Plate from Ukraine'' is hereby terminated. Any cash deposits on entries

of cut-to-length carbon steel plate from Ukraine pursuant to that

suspension of liquidation shall be refunded and any bonds shall be

released.

On October 14, 1997 we received a request from petitioners

requesting that we continue the investigation. We received separate

requests for continuation from Bethlehem Steel Corp., U.S. Steel Corp.

(A Unit of USX Corporation), and the United Steelworkers of America,

interested parties under section 771(9)(D) of the Act. Pursuant to

these requests, we have completed the investigation in accordance with

section 734(g) of the Act, and have notified the International Trade

Commission (ITC) of our determination. If the ITC's injury

determination is negative, the agreement will have no force or effect,

and the investigation will be terminated (see section 734(f)(3)(A) of

the Act). If the ITC's determination is affirmative, the Department

will not issue an antidumping duty order as long as the suspension

agreement remains in force (see section 734(f)(3)(B) of the Act).

This notice is published pursuant to section 734(f)(1)(A) of the

Act.

Dated: November 7, 1997.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

Agreement Suspending the Antidumping Investigation on Certain Cut-To-

Length Carbon Steel Plate From Ukraine

For purposes of encouraging free and fair trade in certain cut-to-

length carbon steel plate (CTL plate), establishing more normal market

relations, and preventing the suppression or undercutting of price

levels of the domestic products by imports of the merchandise subject

to this Agreement, the United States Department of Commerce (``the

Department'') and the Government of Ukraine enter into this suspension

agreement (``the Agreement'').

Pursuant to this Agreement, the Government of Ukraine will restrict

the volume of direct and indirect exports to the United States of CTL

plate from all Ukrainian producers/exporters, subject to the terms and

provisions set forth below.

On the basis of this Agreement, pursuant to the provisions of

Section 734(1 ) of the Tariff Act of 1930, as amended, by the Uruguay

Round Agreements Act, as effective on January 1, 1995 (``the Act'') (l9

U.S.C. 1673c(1)), the Department shall suspend its antidumping

investigation with respect to CTL plate produced in Ukraine, subject to

the terms and provisions set forth below. Further the Department will

instruct the U.S. Customs Service (``Customs'') to terminate the

suspension of liquidation of, and release any cash deposit or bond

posted on, CTL plate covered by this Agreement as of the effective date

of this Agreement.

I. Definitions

For purposes of this Agreement, the following definitions apply:

A. ``Date of Export'' for imports of subject merchandise into the

United States shall be considered the date the export license was

issued.

B. ``Parties to the Proceeding'' means any interested party, within

the meaning of section 353.2(k) of the Department's Regulations, which

actively participates through written submissions of factual

information or written argument.

C. ``Indirect Exports'' means arrangements as defined in Section

III.E of this Agreement and exports from Ukraine through one or more

third countries, whether or not such exports are further processed,

insofar as they remain within the scope of the Agreement, and includes

further processing which results in minor alterations, or under certain

limited circumstances, as described in Section VII. G., further

processing which results in substantial transformation as a result of

an attempt to circumvent the Agreement, whether or not such exports are

sold in one or more third countries prior to importation into the

United States and whether or not the Ukrainian producer knew the

product was destined to enter the United States.

D. For purposes of this Agreement, ``United States'' shall comprise

the customs territory of the United States of America (the 50 States,

the District of Colombia and Puerto Rico) and foreign trade zones

located in the territory of the United States of America.

E. ``For Consumption'' means all CTL plate sold to customers, such

as, trading companies, distributors, resellers. end-users, or service

centers.

F. Customer means an entity, such as a steel service center,

reseller, trading company, end-user, etc., which consumes CTL plate as

defined in Section I.E.

G. ``Date of Sale'' is defined as the date on which price and

quantity become firm, e.g.* the specification date or, in the case of a

long-term contract, the date of contract, as recorded in the company's

records kept in the ordinary course of business.

H. ``Export License'' is the document issued by the Ministry of

Foreign Economic Relations (``MINFER'') which must accompany all

shipments of CTL plate from Ukraine to the United States, and must

contain all of the information enumerated in the Appendix to this

Agreement, except that Date of Entry and Final Destination may be

omitted if unknown to the MINFER and the licensee. It shall be required

for customs clearance into the United States.

I. ``Reference Price'' means the price calculated by the

Department, as described in Section IV, on a quarterly basis to be used

as a floor price for sales of Ukrainian CTL plate into the United

States.

[[Page 61768]]

J. ``Relevant Period'' for the export limits of the Agreement means

the period November 1, through October 31 of each year that the

Agreement is in effect.

II. Product Coverage

The products covered by this Agreement include hot-rolled iron and

non-alloy steel universal mill plates (i.e., flat-rolled products

rolled on four faces or in a closed box pass, of a width exceeding 150

mm but not exceeding 1250 mm and of a thickness of not less than 4 mm,

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 iron and non-alloy steel flat-rolled products not in coils, 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 mm or more in thickness and of a

width which exceeds 150 mm and measures at least twice the thickness.

Included as subject merchandise in this Agreement 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

beveled or rounded at the edges. This merchandise is currently

classified in the Harmonized Tariff Schedule of the United States (HTS)

under item numbers 7208.40.3030, 7208.40.3060, 7208.51.0030,

7208.51.0045, 7208.51.0060, 7208.52.0000, 7208.53.0000, 7208.90.0000,

7210.70.3000, 7210.90.9000, 7211.13.0000, 7211.14.0030, 7211.14.0045,

7211.90.0000, 7212.40.1000, 7212.40.5000, 7212.50.0000. Although the

HTS subheadings are provided for convenience and customs purposes, the

written description of the scope of this Agreement is dispositive.

Specifically excluded from subject merchandise within the scope of

this Agreement is grade X-70 steel plate.

III. Export Limits

A. The export limit for CTL plate for the first Relevant Period

shall be 158,000 metric tons. Of this export limit not more than 20,000

metric tons may be utilized in selling CTL plate which is 0.375 inches

or less in actual or nominal thickness. The parties also agree that an

increase in the export limit for each subsequent Relevant Period shall

be made under the following circumstances: (1) The Government of

Ukraine shall receive a 5 percent increase in the export limit for each

subsequent Relevant Period if the weighted-average F.O.B. sales price

for A36 plate over 0.375 inches exceeds the reference price by more

than 5 percent during the most recently completed Relevant Period; (2)

this increase in the export limit may be used only for exports of A36

plate which is over 0.375 inches in thickness; (3) the determination to

increase the export limit for each subsequent Relevant Period will be

made by the Department based on the Government of Ukraine's compliance

with all relevant data reporting requirements.

B. No later than 60 days prior to the end of the first Relevant

Period, the Department shall calculate an upward or downward adjustment

to the next Relevant Period's export limit based upon changes in U.S.

apparent consumption for steel plate. U.S. apparent consumption will be

calculated using official statistics from the U.S. Census Bureau and

data from the American Iron and Steel Institute regarding domestic

shipments. The maximum adjustment will be plus or minus no more than 6

percent per Relevant Period, and will be calculated by comparing the

most recent twelve months of data for U.S. apparent consumption

available to the Department at the time of the calculation to the level

of the previous corresponding twelve months of data. The Department

will then apply the adjustment to the Relevant Period's export limit.

The Department will similarly adjust the export limit every Relevant

Period, and the effects of the adjustment will be cumulative.

Deductions from the export limits shall be made based on the ``Date of

Export'', as defined in Section I. MINFER will not issue Export

Licenses accounting for more than sixty percent of the export limit for

any Relevant Period during either semi-annual period within such

Relevant Period.

C. On and after the effective date of this Agreement, the

Government of Ukraine will restrict the volume of direct and indirect

exports of CTL plate to the United States, and the transfer and

withdrawal from inventory of CTL plate (consistent with the provisions

of Section III.E), in accordance with the export limits then in effect.

D. Any export of CTL plate shall not when cumulated with all prior

exports in such Relevant Period exceed the export limit for that

Relevant Period.

E. Any inventories of CTL plate currently held in the United States

by a Ukrainian legal entity and imported into the United States between

November 5, 1996 and the effective date of this Agreement will be

subject to the following conditions:

1. Such inventories will not be transferred or withdrawn from

inventory for consumption in the United States without an Export

License issued by MINFER. Any such transfers or withdrawals from

inventory shall be deducted from the export limits in effect at the

time the Export License is issued.

2. A request for an Export License under this provision shall be

accompanied by a report containing the information set forth in the

Appendix to this Agreement.

F. Any arrangement involving the exchange, sale, or delivery of CTL

plate products from Ukraine, whether or not further processed, to the

degree it results in the sale or delivery in the United States of CTL

plate from a country other than Ukraine, is subject to the requirements

of Section V and will be counted toward the export limits. Any such

transaction that does not comply with the requirements of Section V

will be deducted from the export limits pursuant to Section VII.

G. Where CTL plate is imported into the United States and is

subsequently re-exported or re-packaged and re-exported, the export

limits shall be increased by the quantity of product re-exported. Such

increase will be applicable to the Relevant Period corresponding to the

time of such re-export. Such increase will be applied only after the

Department receives, and has the opportunity to verify, evidence

demonstrating original importation, any re-packaging, and subsequent

exportation. The re-exported material must be identical to the imported

material.

H. Export Licenses for a given Relevant Period may not be issued

after the expiration of the Relevant Period, except that Export

Licenses not so issued may be issued during the first three months of

the following Relevant Period, up to a maximum of 15 percent of the

export limit for that following Relevant Period. Such ``carried-over''

quota shall be counted against the export limits applicable to the

previous Relevant Period.

Export Licenses for up to 15 percent of the export limits for a

subsequent Relevant Period may be issued as early as 45 days prior to

the beginning of the subsequent Relevant Period. Such ``carried-back''

quota shall be counted against the export limits applicable to the

following Relevant Period.

[[Page 61769]]

IV. Reference Price

A. CTL plate will not be sold below the reference price. Each grade

of CTL plate shall have its own reference price, and all such reference

prices shall be calculated in the same manner.

B. The reference price issued quarterly by the Department shall be

released by October 1, January 1, April 1, and July 1 of each year and

shall be effective on November 1, February 1, May 1, and August 1,

respectively. The reference price for the first Relevant Period is set

forth in Section IV.C. of this Agreement and shall remain effective

until revised by the Department pursuant to this paragraph IV:B. Either

party is entitled to request consultations regarding the calculation of

reference prices.

C. The reference price for the first Relevant Period shall be as

follows:

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

Grade of CTL plate Reference price

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

A36.............................. $359.00 per metric ton.

A572............................. 387.00 per metric ton.

A516............................. 390.00 per metric ton.

API-2H........................... 530.00 per metric ton.

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

The reference price for API-2Y will be determined at a later date.

Until such time as the Department and MINFER agree upon references

prices for other grades of CTL plate, only grades A36, A572, A516, and

API-2H may be exported to the United States.

Best efforts will be made by the Department and MINFER to consult

for the purpose of establishing references prices for other grades of

CTL plate by November 30, 1997.

D. For each subsequent Relevant Period the reference price will be

adjusted on a quarterly basis to reflect the change in the BLS Producer

Price Index for carbon steel plate for the most recent three months for

which data is available preceding the date on which the reference price

is issued.

If the last month of BLS PPI for the three-month period preceding

the date on which the reference price is issued has fallen by more than

2.6 percent from the average of the first two months of the period the

reference price will be adjusted on the basis of the PPI for the last

month of the three-month period.

E. MINFER will ensure that with respect to merchandise covered by

each Export License, the Ukrainian unit values of imports of CTL plate

into the United States will equal or exceed the reference price at

equivalent points in the transaction chain. The reference price will be

at a level in the transaction chain as far upstream as possible (i.e.,

F.O.B.). MINFER will ensure that contracts and all relevant

documentation will be available to the Department and will be subject

to verification.

V. Export License

A. The Government of Ukraine will restrict the volume of direct and

indirect exports of CTL plate to the United States by means of Export

Licenses. Export Licenses shall be issued by MINFER for all direct and

indirect exports of CTL plate to the United States in accordance with

the export limits in section III and the reference price in section IV.

B. MINFER shall issue Export Licenses on a first-come-first-serve

basis for all Ukrainian producers.

C. Before it issues an Export License, MINFER will ensure that the

Relevant Period's export limit is not exceeded and that the price for

the CTL plate is at or above the reference price.

D. MINFER shall take action, including the imposition of penalties,

as may be necessary to make effective the obligations resulting from

the price restrictions, export limits, and Export Licenses. MINFER will

inform the Department, in writing, of any violations concerning the

price restrictions, export limits, or Export Licenses which come to its

attention and the action taken with respect thereto.

The Department will inform MINFER in writing of violations

concerning the price restrictions, export limits or Export Licenses

which come to its attention and the action taken with respect thereto.

E. Export Licenses will be issued sequentially, endorsed against

the export limit for the Relevant Period, and will reference the report

of quota allocation results for the appropriate Relevant Period.

F. Export Licenses must contain an English language translation.

G. On and after the effective date of this Agreement, the United

States shall require presentation of an Export License as a condition

for entry of CTL plate into the United States. The United States will

prohibit the entry of any CTL plate not accompanied by an Export

License.

H. The validity of Export License shall be six (6) months, except

that no more than 90 days shall elapse between the date of issuance of

the Export License and the date on which the merchandise is cleared

through Ukrainian customs for export.

VI. Implementation

In order to effectively restrict the volume of exports of CTL plate

to the United States, the Government of Ukraine agrees to implement the

following procedures no later than 90 days after the effective date of

this Agreement, except as provided for in VI.A.:

A. Establish, through MINFER, an export licensing program for all

exports of CTL plate to, or destined directly or indirectly for

consumption in, the United States, as of the effective date of the

Agreement.

B. Ensure compliance by any official Ukrainian institution,

chamber, or other entities authorized by the Government of Ukraine, all

producers, exporters, brokers, and traders of CTL plate, and their

affiliated parties, as well as independent trading companies/ resellers

utilized by the Ukrainian producer to make sales to the United States,

with all procedures established in order to effectuate this Agreement.

C. Collect information from all producers, exporters, brokers, and

traders of the CTL plate to the United States, and their affiliated

parties; as well as independent trading companies/ resellers utilized

by the Ukrainian producer, on the sale of the CTL plate, and report

such information pursuant to Section VIII (A) of this Agreement.

D. The Government of Ukraine, by law, will prohibit direct and

indirect exports to the United States of CTL plate except under Export

Licenses issued pursuant to Section V.A and impose strict sanctions,

such as penalties or prohibition from participation in the export

limits allowed by the Agreement, in the event that any Ukrainian or

Ukrainian-affiliated party does not comply in full with all terms of

the Agreement.

E. Require that purchasers agree: Not to circumvent this Agreement;

to report to MINFER any subsequent arrangement entered into for the

sale, exchange, or loan to a person or entity in the United States of

CTL plate purchased from Ukraine; and to include these same provisions

in any subsequent contracts involving CTL plate purchased from Ukraine.

F. Prohibit direct and indirect exports to the United States of CTL

plate which is not die-stamped with the mark of the producing mill and

which is not marked with Ukraine as the country of origin.

VII. Anticircumvention

A. MINFER will take all appropriate measures under Ukrainian law to

prevent circumvention of this Agreement. It shall respond promptly to

conduct an inquiry into any and all allegations of circumvention,

including allegations raised by the Department, and shall complete such

inquiries in a

[[Page 61770]]

timely manner (normally within 45 days). MINFER shall notify the

Department, in writing, of the results of its inquiries within ten days

of the conclusion of such inquiries. Within 15 days of a request from

the Department, MINFER shall share with the Department all information

received or collected by MINFER regarding its inquiries, its analysis

of such information and the results of such inquiries. MINFER will

require all exporters of CTL plate to include a provision in their

contracts for sales to countries other than the United States that the

CTL plate sold through such contracts cannot be re-exported,

transhipped, or swapped to the United States, or otherwise used to

circumvent the export limits of this Agreement. MINFER will also

establish appropriate mechanisms to enforce this requirement.

B. MINFER of Ukraine shall advise within one month after the

effective date of this Agreement that all contracts for sales of CTL

plate to third countries by Ukrainian producers/exporters shall include

a clause which stipulates the following: that in the event that their

customer sells the merchandise to another trading company it must

provide the identity of the subsequent trading company to MINFER.

Given the critical need to prevent circumvention, both Governments

agree to share information to the greatest extent their national

legislation will allow. Therefore, MINFER agrees to use its maximum

efforts to provide transaction specific data for all third country

sales to the final end-user.

C. If, in an inquiry pursuant to paragraph A, MINFER determines

that a Ukrainian company has participated in a transaction that

resulted in circumvention of the export limits of this Agreement, then

MINFER shall impose penalties on such company including, but not

limited to, denial of access to the CTL plate quota. Additionally,

MINFER shall deduct an amount of CTL plate equivalent to the amount

involved in such circumvention from the export limit and shall

immediately notify the Department, in writing, of the amount deducted.

If sufficient tonnage is not available in the current Relevant Period,

then the remaining amount necessary shall be deducted from the

subsequent Relevant Period.

D. If MINFER determines that a company from a third country has

circumvented the Agreement and the parties agree that no Ukrainian

entity participated in or had knowledge of such activities, then the

parties shall hold consultations for the purpose of sharing evidence

regarding such circumvention and reaching mutual agreement on the

appropriate steps to be taken to eliminate such circumvention, such as

MINFER prohibiting sales of Ukrainian CTL plate to the company

responsible or reducing CTL plate exports to the country in question.

If the parties are unable to reach a mutual agreement within 45 days,

then the Department may take appropriate action, such as deducting the

amount of CTL plate involved in such circumvention from the export

limit, or instructing Customs to deny entry to any CTL plate sold by

the entity found to be circumventing the Agreement, taking into account

all relevant factors. Before taking such action, the Department will

notify MINFER of the facts and the reasons constituting the basis for

the Department's intended action and will afford MINFER ten days in

which to comment.

E. If the Department determines that a Ukrainian/ or third country

entity participated in circumvention, the parties shall hold

consultations for the purpose of sharing evidence regarding such

circumvention and reaching mutual agreement on an appropriate

resolution of the problem. If the parties are unable to reach mutual

agreement within 45 days, the Department may take appropriate action,

such as deducting the amount of CTL plate involved in such

circumvention from the export limit, or instructing Customs to deny

entry to any CTL plate sold by the entity found to be circumventing the

Agreement. Before taking such action, the Department will notify MINFER

of the facts and reasons constituting the basis for the Department's

intended action and will afford MINFER ten days in which to comment.

F. The Department shall direct the U.S. Customs Service to require

all importers of CTL plate into the United States, regardless of stated

country of origin, to submit at the time of entry a written statement

certifying that the CTL plate being imported was not obtained under any

arrangement, swap, or other exchange which would result in the

circumvention of the export limits established by this Agreement. Where

the Department has reason to believe that such a certification has been

made falsely, the Department will refer the matter to U.S. Customs or

the U.S. Department of Justice for further action.

G. Given the fungibility of the world steel market, the Department

will take the following factors into account in distinguishing normal

steel market arrangements, swaps, or other exchanges from arrangements,

swaps, or other exchanges which would result in the circumvention of

the export limits established by this Agreement:

1. Existence of any verbal or written arrangements which would

result in the circumvention of the export limits established by this

Agreement;

2. Existence of any arrangement as defined in Section III.E that

was not reported to the Department pursuant to Section VIII.A;

3. Existence and function of any subsidiaries or affiliates of the

parties involved:

4. Existence and function of any historical and/or traditional

trading patterns among the parties involved;

5. Deviations (and reasons for deviation) from the above patterns,

including physical conditions of relevant steel producing facilities;

6. Existence of any payments unaccounted for by previous or

subsequent deliveries, of any payments to one party for merchandise

delivered or swapped by another party;

7. Sequence and timing of the arrangements; and

8. Any other information relevant to the transaction or

circumstances.

H. ``Swaps'' include, but are not limited to:

Ownership swaps--involve the exchange of ownership of any type of

CTL plate product(s),without physical transfer. These may include

exchange of ownership of CTL plate products in different countries, so

that the parties obtain ownership of products located in different

countries; or exchange of ownership of CTL plate products produced in

different countries so that the parties obtain ownership of products of

different national origin.

Flag swaps--involve the exchange of indicia of national origin of

CTL plate products without any exchange of ownership.

Displacement swaps--involve the sale or delivery of any type of

steel product(s) from Ukraine to an intermediary country (or countries)

which can be shown to have resulted in the ultimate delivery or sale

into the United States of displaced CTL plate products of any type,

regardless of the sequence of the transaction.

I. The Department will enter its determinations regarding

circumvention into the record of the Agreement.

VIII. Monitoring

MINFER will provide to the Department such information as is

necessary and appropriate to monitor the implementation of and

compliance with the terms of this Agreement. The Department shall

provide semi-annual reports to MINFER indicating the volume of imports

of the CTL plate to

[[Page 61771]]

the United States, together with such additional information as is

necessary and appropriate to monitor the implementation of this

Agreement.

A. Reporting of Data

Beginning on the effective date of this Agreement, MINFER shall

collect and provide to the Department the information set forth, in the

agreed format, in the Appendix to this Agreement. All such information

will be provided to the Department by the 15th of each month for

exports to the United States occurring during the previous month. For

exports to countries other than the United States and for home market

sales, all such information will be provided to the Department by May

30 of each year for exports and home market sales during the period

November 1 through April 30, and by November 30 of each year for

exports and sales during May 1 through October 31, or within 90 days of

a request made by the Department. All information will be subject to

the verification provision identified in Section VIII.C of this

Agreement. MINFER agrees to allow sales of CTL plate only through those

brokers and trading companies which permit verification and full

reporting of data. The Department may disregard any information

submitted after the deadlines set forth in this Section or any

information which it is unable to verify to its satisfaction.

Aggregate quantity and value of exports by HTS category to each

third country will be provided to the Department by July 30 of each

year for exports during the period November 1 through April 30 and by

January 31 of each for exports during period May 1 through October 31.

Transaction-specific data for all third country sales will also be

reported on the schedule provided above in the format provided in the

Appendix. However, if the Department concludes that transaction-

specific data is not necessary for a given period, it will notify

MINFER at least 90 days before the reporting deadline that transaction-

specific sales data need not be reported. If the Department determines

that such data is relevant in connection with Section VII and requests

information on transactions for one or more third countries during a

period for which the Department waived complete reporting, MINFER will

provide the data listed in the Appendix for those specific transactions

within 90 days of the request.

MINFER will also report transaction-specific data for home market

sales as specified in the Appendix to this Agreement.

Both governments recognize that effective monitoring of this

Agreement may require that MINFER provide information additional to

that which is identified above. Accordingly, the Department may

establish additional reporting requirements, as appropriate, during the

course of this Agreement. The Department shall provide notice to MINFER

of any additional reporting requirements no later than 45 days prior to

the period covered by such reporting requirements unless a shorter

notice period is mutually agreed.

B. Other Sources for Monitoring

The Department will review publicly-available data as well as

Customs Form 7501 entry summaries and other financial import data from

the Bureau of the Census, on a monthly basis, to determine whether

there have been imports that are inconsistent with the provisions of

this Agreement.

The Department will monitor Bureau of the Census IM-115

computerized records, which include the quantity and value of each

entry. Because these records do not provide other specific entry

information, such as the identity of the producer/exporter which may be

responsible for such sales, the Department may request the U.S. Customs

Service to provide such information. The Department may request other

additional documentation from the U.S. Customs Service.

The Department may also request the U.S. Customs Service to direct

ports of entry to forward an Antidumping Report of Importations for

entries of the CTL plate during the period this Agreement is in effect.

C. Verification

MINFER will permit full verification of all information affiliated

to the administration of this Agreement, including verification of the

Ukrainian producer and the trading companies/brokers utilized in making

sales/shipments to the United States, on an annual basis or more

frequently, as the Department deems necessary to ensure that the

Government of Ukraine is in full compliance with the terms of the

Agreement. Such verifications may take place in association with

scheduled consultations whenever possible.

IX. Disclosure and Comment

A. The Department shall make available to representatives of each

party to the proceeding under appropriately-drawn administrative

protective orders consistent with the Department's Regulations business

proprietary information submitted to the Department semi-annually or

upon request, and in any administrative review of this Agreement.

B. Not later than 30 days after the date of disclosure under

Section VII.A, the parties to the proceeding may submit written

comments to the Department, not to exceed 30 pages.

C. During the anniversary month of this Agreement, each party to

the proceeding may request a hearing on issues raised during the

preceding Relevant Period. If such a hearing is requested, it will be

conducted in accordance with Section 751 of the Act (19 U.S.C. 1675)

and applicable regulations.

X. Consultations

MINFER and the Department shall hold consultations regarding

matters concerning the implementation, operation, including the

calculation of reference prices, and/or enforcement of this Agreement.

Such consultations will be held each year during the anniversary month

of this Agreement. Additional consultations may be held at any other

time upon request of either MINFER or the Department.

XI. Violations of the Agreement

A. Violation

``Violation'' means noncompliance with the terms of this Agreement

caused by an act or omission, in accordance with Section 353.19 of the

Department's Regulations. Each party will inform the other party of any

violations of the Agreement which come to their attention and the

action taken with respect thereto.

Prior to making a determination of an alleged violation, the

Department will engage in emergency consultations. Such consultations

shall begin no later than 14 days from the day of request and shall

provide for full review, but in no event will exceed 30 days. After

consultations, the Department will provide MINFER 20 days within which

to provide comments. The Department will make a determination within 30

days of the date established for submission of comments by MINFER.

B. Appropriate Action

If the Department determines that this Agreement is being or has

been violated the Department will take such action as it determines is

appropriate under 734(i) of the Act and Section 353.19 of the

Department's Regulations.

XII. Duration

The export limit provided for in Section III of this Agreement

shall remain in force from the effective date of this Agreement through

November 1, 2002.

[[Page 61772]]

The Department will, upon receiving a proper request no later than

November 1, 2001, conduct an administrative review under Section 751 of

the Act. The Department expects to terminate this Agreement and the

underlying investigation no later than November 1, 2002, provided that

Ukraine has not been found to have violated the Agreement in any

substantive manner. Such review and termination shall be conducted

consistent with Section 353.25 of the Department's Regulations.

The Government of Ukraine may terminate this Agreement at any time

upon notice to the Department. Termination shall be effective 60 days

after such notice is given to the Department. Upon termination at the

request of MINFER, the provisions of Section 734(i) of the Act shall

apply.

XIII. Conditions

The Department recognizes that it may determine during the life of

this Agreement that the Ukrainian CTL plate industry is a market-

oriented industry, or that Ukraine is a market economy country. In

either event, the Department may:

(a) Enter into a new suspension agreement under section 734(b) or

734(c) of the Act: or

(b) If the investigation was not completed under section 353.18(i)

of the Department's regulations, afford MINFER a full opportunity to

submit new information, and take such information into account in

reaching its final determination--provided that all parties to the

proceeding are given a full opportunity to submit factual information

and argument in rebuttal; or

(c) If the investigation was completed under section 353.18(i),

consider a request made no later than 30 days after termination of the

Agreement to conduct a changed circumstances review under section 751

(b).

XIV. Other Provisions

A. In entering into this Agreement. MINFER does not admit that any

sales of the merchandise subject to this Agreement have been made at

less than fair value or that such sales have materially injured or

threatened material injury to, an industry or industries in the United

States.

B. The Department finds that this Agreement is in the public

interest; that effective monitoring of this Agreement by the United

states is practicable; and that this Agreement will prevent the

suppression or undercutting of price levels of United States domestic

CTL plate products by imports of the merchandise subject to this

Agreement.

C. The Department does not consider any of the obligations

concerning exports of CTL plate to the United States undertaken by

MINFER pursuant to this Agreement relevant to the question of whether

firms in the underlying investigation would be entitled to separate

rates, should the investigation be resumed for any reason.

D. The English language version of this Agreement shall be

controlling.

E. For all purposes hereunder, the Department and the signatory

Government of Ukraine shall be represented by, an all communications

and notices shall be given and addressed to:

Department of Commerce

U.S. Department of Commerce, Assistant Secretary for Import

Administration, International Trade Administration, Washington, DC

20230

Government of Ukraine

Ministry of Foreign Economic Relations and Trade of Ukraine, 8 Livivska

Square, Kiev, GSP. 655,254655, Ukraine

XV. Effective Date

The effective date of this Agreement suspending the antidumping

investigation on CTL plate from Ukraine shall be October 24, 1997.

Signed on this 24 day of October, 1997.

For the U.S. Department of Commerce.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

For the Government of Ukraine.

Sergei Gryshchenko,

Deputy Minister for Ministry of Industrial Policy.

Appendix

In accordance with the established format, MINFER shall collect

and provide to the Department all information necessary to ensure

compliance with this Agreement. This information will be provided to

the Department on a semi-annual basis, or upon request.

MINFER will collect and maintain data on exports to the United

States and to countries other than the United States, on a

continuous basis and provide the prescribed information to the

Department.

MINFER will report home market sales for those companies which

represent substantially all of domestic production of CTL plate. For

these companies, MINFER will report all home market sales of CTL

plate for those grades listed in Section IV. C. Of the Agreement.

MINFER will provide a narrative explanation to substantiate all

data collected in accordance with the following formats.

A. Report of Inventories

Report by location, the inventories of CTL plate held by an

Ukrainian legal entity in the United States and imported into the

United States during the period November 5, 1996, through the

effective date of the Agreement.

1. Quantity: Indicate original units of measure (metric tons).

2. Location: Identify where the inventory is currently being

held. Provide the name and address for the location.

3. Titled Party: Name and address of party who legally has

beneficial title to the merchandise.

4. Contract Registration Number: Indicate the number(s) relating

to each entry now being held in inventory.

5. Export License Number: Indicate the number(s) relating to

each sale or entry.

6. Date of Original Export: Date the Export License is issued.

7. Date of Entry: Date the merchandise entered the United States

or the date book transfer took place.

8. Original Importer: Name and address.

9. Original Exporter: Name and address

10. Complete Description of Merchandise: Include heat numbers,

HTS number, physical description, ASTM specification, and other

available information.

B. Exports to the United States

MINFER will provide all Export Licenses issued to Ukrainian

entities which shall contain the following information with the

exception that information requested in item #9, date of entry, item

10, importer of record, and item #16, final destination may be

omitted if unknown to MINFER and the licensee.

1. Export License Number(s): Indicate the number(s) relating to

each sale and/or entry.

2. Complete Description of Merchandise: Include the 10 digit HTS

category, and the ASTM or equivalent grade.

3. Quantity: Indicate in metric tons.

4. F.O.B. Sales Value: Indicate currency used.

5. Unit Price: Indicate per metric ton.

6. Date of Sale: The date all essential terms of order (i.e.,

price and quantity) become fixed.

7. Sales Order Number (s): Indicate the specification number/

order number relating to each sale and/or shipment.

8. Date of Export: Date the export license is issued.

9. Date of Entry: Date the merchandise entered the United States

or the date book transfer took place.

10. Importer of Record: Name and address.

11. Trading Company: Name and address of trading company

involved in sale.

12. Customer: Name and address of the first unaffiliated party

purchasing from the Ukrainian producer/exporter.

13. Customer Relationship: Indicate whether the customer is

affiliated or unaffiliated to the Ukrainian producer/exporter.

14. Remaining Export Limit: Indicate the remaining export limit

available to the Ukrainian producers during the Relevant Period.

15. Final Destination: The complete name and address of the end-

user.

[[Page 61773]]

Customer Certification

MINFER shall ensure that all customers of the CTL plate shall

certify that the merchandise imported into-the United States

pursuant to this Agreement shall not be loaned or swapped.

Mill Certification

MINFER shall ensure that all shipments of CTL plate exported to

the United States pursuant to this Agreement, shall be accompanied

by a copy of the original mill certification, which includes the

heat number(s).

C. Sales to Countries Other Than the United States

Pursuant to Section VIII, paragraph A, MINFER will provide

country-specific volume and value information for all exports of CTL

plate to third countries.

1. Customs Export Declaration Number: Indicates the number(s)

related to each shipment.

2. Quantity: Indicate in original units of measure sold and/or

entered in metric tons.

3. Date of Sale: The date all essential terms of the order

(i.e., price and quantity) become fixed.

4. Sales Order Number(s): Indicate the number(s) relating to

each sale and/or entry.

5. Date of Export: Date of Export Certification is issued.

6. Importer of Record: Name and address.

7. Customer: Name and address of the first unaffiliated party

purchasing from the Ukrainian producer/exporter.

8. Customer Relationship: Indicate whether the customer is

affiliated or unaffiliated.

9. Name of Vessel: Identity of the name of vessel for each

shipment to third countries.

10. Other: The identity of any subsequent trading company in the

transaction chain pursuant to Section VII.B.

11. Estimated Date of Entry: Date the merchandise entered the

third country or the date a book transfer took place.

D. Home Market Sales

Pursuant to Section VIII.A., MINFER will provide home market

sales data for those companies which represent substantially all of

domestic production of CTL plate. For these companies, the MINFER

will report all home market sales of CTL plate for those grades

listed in Section IV. C. Of the Agreement.

1. Quantity: Indicate in original units of measure sold and/or

entered in metric tons.

2. Date of Sale: The date all essential terms of the order

(i.e., price and quantity become fixed.

3. Sales Order Number(s): Indicate the number(s) relating to

each sale.

4. Customer: Name and address of the first unaffiliated party

purchasing from the Ukrainian producer.

5. Customer Relationship: Indicate whether the customer is

affiliated or unaffiliated.

[FR Doc. 97-30392 Filed 11-18-97; 8:45 am]

BILLING CODE 3510-DS-P