Suspension of Antidumping Duty Investigation: Certain Cut-to- Length Carbon Steel Plate From the People's Republic of China

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-849]

Suspension of Antidumping Duty Investigation: Certain Cut-to-

Length Carbon Steel Plate From the People's Republic of China

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

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

antidumping investigation on cut-to-length carbon steel plate from the

People's Republic of China (PRC). The basis for the suspension is an

agreement by the Government of the PRC to restrict the volume of direct

and indirect exports to the United States of cut-to-length carbon steel

plate from all PRC 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: Edward Yang, Import Administration,

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

Street and Constitution Avenue, N.W., Washington, D.C. 20230;

telephone: (202) 482-3910.

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 the People's

Republic of China 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 threat of

injury determination (see ITC Investigation Nos. 731-TA-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 People's Republic of China initialed a

proposed agreement suspending this investigation on September 24, 1997.

On September 25, 1997, we invited interested parties 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, Liaoning, Anshan, Bao Steel, Shanghai Pudong and

WISCO.

The Department and the Government of the People's Republic of China

signed the final suspension agreement on October 24, 1997.

Scope of the Investigation

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

Certain Cut-to-Length Carbon Steel Plate from the People's Republic of

China, 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 the

People's Republic of China 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

the People's Republic of China'' and ``Postponement of the Final

Determination: Cut-to-Length Carbon Steel Plate from the People's

Republic of China'' is hereby terminated. Any cash deposits on entries

of cut-to-length carbon steel plate from the People's Republic of China

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

[[Page 61774]]

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.

Annex 1--Agreement Suspending the Antidumping Investigation on Certain

Cut-to-Length Carbon Steel Plate From the People's Republic of China

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 the People's Republic of China

enter into this suspension agreement (``the Agreement'').

Pursuant to this Agreement, the Government of the People's Republic

of China will restrict the volume of direct and indirect exports to the

United States of CTL plate from all Chinese producers/exporters,

subject to the terms and provisions set forth below. For any of the

deadlines mentioned in this Agreement, the Ministry of Foreign Trade

and Economic Cooperation (``MOFTEC'') may request an extension which

will be considered by the Department if it is received in writing prior

to the deadline in question and includes reasons for the extension.

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'') (19

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

investigation with respect to CTL plate produced in the People's

Republic of China, 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 CTL plate 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 the People's Republic of China

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

Chinese 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 Trade and Economic Cooperation (``MOFTEC'') which must

accompany all shipments of CTL plate from the People's Republic of

China to the United States, and must contain all of the information

enumerated in the Appendix to this Agreement, except that the

categories Date of Entry, Importer of Record, Final Destination, and

Other may be omitted if unknown to the MOFTEC and the licensee. An

export license 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 Chinese CTL plate into the United States.

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

bevelled 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.

[[Page 61775]]

Specifically excluded from subject merchandise within the scope of

this Agreement is grade X-70 steel plate.

III. Export Limit

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

shall be 150,000 metric tons. Until such time as reference prices are

agreed to for other grades, only grade A36 may be exported. Of this

export limit, not more than 25,000 metric tons may be utilized in

selling CTL plate which is 0.375 inches or less in actual or nominal

thickness, and not more than 25,000 metric tons may be utilized in

selling CTL plate which is three inches or more in actual or nominal

thickness. 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 quota 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. No more than sixty percent of the

export limit for any Relevant Period may be licensed during each half

(six-month period) within a given Relevant Period.

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

Government of the People's Republic of China 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.D), in accordance with the export

limits then in effect.

C. Export licenses may not be issued for more than the entire

amount of quota allocated in any given Relevant Period. Any CTL plate

exported during a Relevant Period shall not when cumulated with all

prior exports in such Relevant Period exceed the export limit for that

Relevant Period.

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

by a Chinese 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 MOFTEC. 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.

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

plate products from the People's Republic of China, 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 the People's

Republic of China, 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.

F. 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.

G. 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.

H. For the first 90 days after the effective date of this

Agreement, CTL plate shall be admitted into the United States with a

temporary Export License.

The volume of any such imports will be deducted from the export

limits applicable to the first Relevant Period. A full reporting of any

such imports, which must correspond to the United States sales

information detailed in the Appendix to this Agreement, must be

submitted to the Department no later than 30 days after the conclusion

of the 90 day period. This data must be sorted on the basis of date of

export and must be set forth on a transaction-specific basis.

IV. Reference Price

A. CTL plate will not be sold below the reference price on the date

of sale. 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.............................. $350.00 per metric ton.

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

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 the BLS PPI for carbon steel plate 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 quarter, the reference price will be adjusted

on the basis of the BLS PPI for carbon steel plate for the last month

of the three-month period.

E. MOFTEC will ensure that, with respect to merchandise covered by

each

[[Page 61776]]

Export License, the Chinese 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 Chinese ocean port, (excluding Hong Kong)). MOFTEC will ensure

that contracts and all relevant documentation will be available to the

Department and will be subject to verification.

F. CTL plate imported after the effective date of the Agreement,

exported from the People's Republic of China prior to October 24, 1997

and sold pursuant to a contract in effect on or before August 31, 1997,

in which the price to the first unrelated purchaser in the United

States is fixed at a specific and definite amount with respect to the

import at issue, shall not be subject to reference price restrictions.

Consistent with Section III.H, the volume of such imports shall be

deducted from the export limits.

V. Export License

A. MOFTEC will restrict the volume of direct and indirect exports

of CTL plate to the United States by means of annual quota allocations

and Export Licenses. Export Licenses shall be issued by MOFTEC 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. Thirty days following the annual allocation of quota rights for

any Relevant Period, MOFTEC shall provide to the Department a written

report identifying each quota recipient and the volume of quota which

each recipient has been accorded (``report of quota allocation

results''). MOFTEC may reallocate the volume of quota among quota

recipients without prior approval from the Department, but must inform

the Department in writing within thirty days of such reallocation.

C. Before it issues an Export License, MOFTEC 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 on the date of sale.

The quantity specified on each export license may vary up to ten

percent above or below the quantity actually shipped under that

license. MOFTEC, however, will ensure that the total amount of CTL

plate shipped under such licenses does not exceed the export limit for

the Relevant Period.

D. MOFTEC 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. MOFTEC 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 MOFTEC in writing of violations

concerning the price restrictions, export limits, and/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 be issued no earlier than 90 days before

the day on which the merchandise is accepted by a transportation

company, as indicated in the bill-of-lading or a comparable

transportation document, for export. 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. For purposes of this Agreement, the duration of the validity of

the Export License will be a period of 180 days.

VI. Implementation

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

to the United States, MOFTEC agrees to implement the following

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

Agreement.

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

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

consumption in, the United States.

B. Ensure compliance by any official Chinese institution, chamber,

or other entities authorized by the Government of the People's Republic

of China, all producers, exporters, brokers, and traders of CTL plate,

and their affiliated parties, as well as independent trading companies/

resellers utilized by the Chinese 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 Chinese producer, on the sale of the CTL plate, and report such

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

D. Prohibit, by law, 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 Chinese or Chinese-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 MOFTEC any subsequent arrangement(s) entered into for the

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

CTL plate purchased from the People's Republic of China; and to ensure

that these same provisions are included in any subsequent contracts

involving CTL plate purchased from the People's Republic of China.

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 the People's Republic of China as the country

of origin.

VII. Anticircumvention

A. MOFTEC will take all appropriate measures under Chinese 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 timely manner (normally within 45 days). MOFTEC 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, MOFTEC shall share with the Department

all information received or collected by MOFTEC regarding its

inquiries, its analysis of such information and the results of such

inquiries. MOFTEC 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. MOFTEC will

also establish appropriate mechanisms to enforce this requirement.

B. MOFTEC shall advise within one month after the effective date of

this Agreement that all contracts for sales of CTL plate to third

countries by Chinese

[[Page 61777]]

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 the Government of the People's Republic

of China.

Given the critical need to prevent circumvention, both Governments

agree to share information to the greatest extent their national

legislation will allow. Therefore, MOFTEC 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, MOFTEC determines

that a Chinese company has participated in a transaction that resulted

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

shall impose penalties on such company including, but not limited to,

denial of access to the CTL plate quota. Additionally, MOFTEC 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 MOFTEC determines that a company from a third country has

circumvented the Agreement and the parties agree that no Chinese 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 MOFTEC

prohibiting sales of Chinese 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

MOFTEC of the facts and the reasons constituting the basis for the

Department's intended action and will afford MOFTEC ten days in which

to comment.

E. If the Department determines that a Chinese 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 MOFTEC

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

intended action and will afford MOFTEC 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 Customs or the

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, or 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 the People's Republic of China 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.

Two years after the effective date of this Agreement, this provision

with regard to displacement swaps will cease to exist unless the

Department determines that there has been evidence of displacement

swaps during the preceding two years.

I. The Department will enter its determinations regarding

circumvention into the record of the Agreement.

VIII. Monitoring

MOFTEC 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 MOFTEC indicating the volume of imports

of the CTL plate to 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, MOFTEC 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 May 30 of each year for exports

and aggregate home market sales during the period November 1 through

April 30, and by November 30 of each year for exports during the period

May 1 through October 31, or within 90 days of a

[[Page 61778]]

request made by the Department. MOFTEC agrees to provide transaction-

specific information for home market sales upon demand, within 30 days

of a request made by the Department. Such information will be subject

to the verification provision identified in Section VIII.C of this

Agreement. MOFTEC 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 year 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

MOFTEC 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, MOFTEC will

provide the data listed in the Appendix for those specific transactions

within 90 days of the request.

Both governments recognize that effective monitoring of this

Agreement may require that MOFTEC 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 MOFTEC

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 official 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

MOFTEC will permit full verification of all information affiliated

to the administration of this Agreement, including verification of the

Chinese 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 the People's Republic of China 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

MOFTEC 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 MOFTEC 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.

Exports in excess of the export limits set out in this Agreement

shall not be considered a violation of the Agreement or an indication

that the Agreement no longer meets the requirements of U.S. laws and

regulations where such exports are inconsequential, inadvertent, and

are applied against the export limits of the following Relevant Period.

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 MOFTEC 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 MOFTEC.

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 limits provided for in Section III of this Agreement

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

November 1, 2002.

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

the People's Republic of China has not been found to have violated the

Agreement in any substantive manner. Such review and termination shall

be conducted

[[Page 61779]]

consistent with section 353.25 of the Department's Regulations.

The Government of the People's Republic of China 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 MOFTEC, 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 Chinese CTL plate industry is a market-oriented

industry, or that the People's Republic of China 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 MOFTEC 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, MOFTEC does not admit that any

sales of CTL plate 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

MOFTEC 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 the People's Republic of China shall be represented by,

and all communications and notices shall be given and addressed to:

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

Administration, International Trade Administration, Washington, D.C.

20230

Government of the People's Republic of China, Ministry of Foreign Trade

and Economic Cooperation of the People's Republic of China, Beijing

100731

XV. Effective Date

The effective date of this Agreement suspending the antidumping

investigation on CTL plate from the People's Republic of China shall be

October 24, 1997.

Signed on this 24th day of October, 1997.

For the U.S. Department of Commerce.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

For the Government of the People's Republic of China.

Shi Jianxin,

Minister Counsellor, Embassy of the People's Republic of China.

Appendix

In accordance with the established format, MOFTEC 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.

MOFTEC 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.

MOFTEC will report the aggregate volume and value of home market

sales of CTL plate for those companies which exported to the United

States in the same reporting period as specified in Section VIII.A.

For these companies, MOFTEC will report the aggregate home market

sales of CTL plate for the grade listed in Section IV. C. of the

Agreement. Upon demand, MOFTEC will provide the information

requested in the ``Home Market Sales'' section.

MOFTEC will provide a narrative explanation to substantiate all

data collected in accordance with the following formats.

Report of Inventories

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

Chinese 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.

Exports to the United States

MOFTEC will provide all Export Licenses issued to Chinese

entities which shall contain the following information with the

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

#10, Importer of Record; item #16, final destination, item #17,

other, may be omitted if unknown to MOFTEC 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 Chinese producer/exporter.

13. Customer Relationship: Indicate whether the customer is

affiliated or unaffiliated with the Chinese producer/exporter.

14. Quota Allocated to Exporter: Indicate the total amount of

quota allocated to the individual Chinese producer/exporter during

the Relevant Period.

15. Quota Remaining: Indicate the remaining quota available to

the individual Chinese producer/exporter during the Relevant Period.

16. Final Destination: Indicate the complete name and address of

the end-user.

17. Other: Indicate the identity of any party(ies) in the

transaction chain between the customer and the final destination/end

user.

Customer Certification

MOFTEC shall ensure that all customers of the CTL plate shall

certify that the

[[Page 61780]]

merchandise imported into the United States pursuant to this

Agreement shall not be loaned or swapped.

Mill Certification

MOFTEC 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).

Sales to Countries Other Than the United States

Pursuant to Section VIII, paragraph A, MOFTEC will provide

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

plate to third countries. The following information shall be

provided except that information requested in item #6, importer of

record, and item #10, other, may be omitted if unknown to MOFTEC and

the licensee.

1. Customs Export Declaration Number: Indicate 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 Chinese producer/exporter.

8. Customer Relationship: Indicate whether the customer is

affiliated or unaffiliated.

9. Name of Vessel: Identify 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.

Home Market Sales

Pursuant to Section VIII.A., MOFTEC will provide transaction-

specific home market information for sales of subject merchandise,

upon demand. The following information shall be provided, except

that information requested in item #6 may be omitted if unknown to

MOFTEC and the licensee.

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 and/or entry.

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

purchasing from the Chinese exporter.

5. Customer Relationship: Indicate whether the customer is

affiliated or unaffiliated.

6. Other: The identity of any party(ies) in the transaction

chain between the customer and the final destination.

[FR Doc. 97-30394 Filed 11-18-97; 8:45 am]

BILLING CODE 3510-DS-P