Suspension of Antidumping Duty Investigation: Certain Cut-to- Length Carbon Steel Plate From the Russian Federation

DEPARTMENT OF COMMERCE

International Trade Administration

[A-821-808]

Suspension of Antidumping Duty Investigation: Certain Cut-to-

Length Carbon Steel Plate From the Russian Federation

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 the Russian Federation. The basis for this

action is an agreement between the Department and the Ministry of

Foreign Economic Relations and Trade of the Russian Federation (MINFER)

wherein MINFER has agreed to restrict the volume of direct or indirect

exports to the United States of CTL plate from all Russian 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 the Russian

Federation 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 31967, (June 11, 1997)).

The Department and MINFER 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, and the

Government of the Russian Federation.

The Department and MINFER 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

October 24, 1997, Public Interest Memorandum. 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

Russian Federation 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 Russian Federation'' and ``Postponement of the Final Determination:

Cut-to-Length Carbon Steel Plate from the Russian Federation'' is

hereby terminated. Any cash deposits on entries of cut-to-length carbon

steel plate from the Russian Federation 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

[[Page 61781]]

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 Cut-To-Length

Carbon Steel Plate From the Russian Federation

For the purpose of encouraging free and fair trade in cut-to-length

carbon steel plate (``steel plate''), establishing more normal market

relations, and preventing the suppression or undercutting of price

levels of the domestic product, the United States Department of

Commerce (``U.S. DOC'') and the Ministry of Foreign Economic Relations

and Trade of the Russian Federation (``MINFER of Russia'') enter into

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

Pursuant to this Agreement, MINFER of Russia will restrict the

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

plate from all Russian 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 (19 U.S.C.

1673c(1)), (see Appendix II), U.S. DOC shall suspend its antidumping

investigation with respect to steel plate produced in Russia, subject

to the terms and provisions set forth below. Further, U.S. DOC will

instruct the U.S. Customs Service to terminate the suspension of

liquidation of, and release any cash deposit or bond posted on, the

steel 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 steel plate to the United

States shall be considered the date on which the Export License/

Temporary Document 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 submission of factual information

or written argument.

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

III.E of this Agreement and exports from Russia 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 Russian 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 Columbia and Puerto Rico) and foreign trade zones

located in the territory of the United States.

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

such as, trading companies, distributors, resellers, end-users, or

service centers.

F. ``End-User'' means an entity, such as a steel service center,

reseller, trading company, end-user. etc. which consumes steel 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, the date of the

contract if the contract fixes the price and quantity for more than one

year. as recorded in the company s records kept in the ordinary course

of business.

H. ``Export License/Temporary Document'' is the document issued by

(``MINFER'') of Russia which serves also as both a quota certificate

and a certificate of origin. An Export License/Temporary Document must

accompany all shipments of steel plate from Russia to the United

States, and must contain all of the information enumerated in the

Appendix I to this Agreement, except that Date of Entry, Importer of

Record, Final Destination, and Other, may be omitted if unknown to

MTNFFR of Russia and the licensee.

I. Reference Price'' means the price calculated by U.S. DOC, as

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

price for sales of steel plate to the United States.

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

the period from January I through December 31 of each year that the

Agreement is in effect, except that the First Relevant Period shall be

the period from October 24, 1997 through December 31, 1998. The Final

Relevant Period shall be the period from January 1, 2002 through

October 23, 2002.

II. Product Coverage

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

non-alloy steel universal mill steel 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 non-metallic 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 steel plate in this Agreement are flatrolled 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 classifiable 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. Excluded from steel plate

within the scope of this Agreement is grade X-70 steel plate. Although

the HTS subheadings are provided for convenience and customs purposes,

the written description of the scope of this Agreement is dispositive.

The products covered by the above definition shall be referred to

hereinafter as ``steel plate''.

[[Page 61782]]

III. Export Limits

A. The export limit for each Relevant Period shall be 100,000

metric tons of steel plate, except that for the First Relevant Period

the export limit shall be 118,630 metric tons of steel plate and for

the Final Relevant Period the export limit shall be 81,370 metric tons

of steel plate. No later than 60 days prior to the end of the First

Relevant Period, U.S. DOC shall calculate an upward or downward

adjustment to the next Relevant Period's export limit based upon the

changes in U.S. apparent consumption for steel plate. U.S. apparent

consumption will be calculated using of financial statistics of 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 U.S. DOC at the time of the

calculation, to the level of the previous corresponding twelve months

of data. U.S. DOC will then apply the adjustment to the Relevant

Period's export limit. U.S. DOC will similarly adjust the export limit

every Relevant Period, and the effects of the adjustments shall be

cumulative.

Deductions from the export limit shall be made based on the ``Date

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

Export Licenses/Temporary Documents accounting for more than sixty

percent of the export limits for any Relevant Period during either

semi-annual period within such Relevant Period. The two semi-annual

periods within the Relevant Period are defined as: (I) January 1

through June 30; and (2) July 1 through December 31 and except that for

the First Relevant Period, the two semi-annual periods are defined as:

(1) the period beginning on October 24, 1997 through May 31 1998; and

(2) the period June 17 1998 through December 31, 1998. and for the

Final Relevant Period, the semi-annual periods are defined as: (1)

January 1, 2002 through May 31, 2002; and (2) June 1, 2001 through

October 23, 2002.

B. On and after October 24, 1997, MINFER of Russia will restrict

the volume of direct or indirect exports of steel plate to the United

States, and the transfer and withdrawal from inventory of steel plate

(consistent with the provisions of Section III.D) in accordance with

the export limit then in effect.

C. Any amount delivered during a Relevant Period shall not when

cumulated with all prior deliveries in such Relevant Period, exceed the

export limit for that Relevant Period except as provided for in Section

III.G.

D. Any inventories of steel plate currently held in the United

States by a Russian entity and imported into the United States between

November 5, 1996, and October 24 1997. 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/Temporary Document issued by MINFER of Russia. Any such

transfers or withdrawals from inventory shall be deducted from the

export limit in effect at the time the Export License/Temporary

Document is issued.

2. A request for an Export License/Temporary Document under this

provision shall be accompanied by a report specifying the data pursuant

to the provisions of Russian legislation, in particular, the identity

of the original exporter and importer, the customer, if known, the

original date of export and entry into the United States, if known, the

quantity expressed in metric tons, and a complete description of the

steel plate (including heat numbers and other available identifying

documentation).

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

steel plate products from Russia whether or not further processed

within the meaning of I.C., to the degree it can be shown to have

resulted in the sale or delivery in the United States of steel plate

products from a country other than Russia, will be counted toward the

export limit under this Agreement. Any such transaction that does not

comply with the requirements of Section V will be deducted from the

export limit pursuant to Section VII.

F. When steel plate is imported into the United States and is

subsequently re-exported, or re-packaged and re-exported or further

processed within the meaning of I.C. and re-exported, the export limit

shall be increased by the quantity 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 U.S. DOC receives, and

has the opportunity to verify, evidence demonstrating original

importation. any repackaging or further processing, and subsequent

exportation.

G. Export Licenses/Temporary Documents issued for a given Relevant

Period may not be used after the expiration of that Relevant Period,

except that Export Licenses/Temporary Documents not used during the

Relevant Period may be used 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 limit applicable to the previous

Relevant Period.

Export Licenses/Temporary Documents for up to 15 percent of the

export limit 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 limit

applicable to the following Relevant Period.

H. For the first 120 days after October 24, 1997, steel plate shall

be admitted into the United States with a ``Temporary Document.''

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

limit applicable to the First Relevant Period. A full reporting of any

such imports, which must correspond to the information detailed in

Appendix I.B. to this Agreement, must be submitted to U.S. DOC no later

than 45 days after the conclusion of the 120 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. Steel plate will not be sold below the reference price in effect

on the date of sale.

B. The reference price issued quarterly by U.S. DOC shall be

released by September 1, December 1, March 1, and June 1 of each year

and shall be effective on October 1, January 1, April 1, and July 1,

respectively. The reference price for the First Relevant Period shall

be issued and effective on October 24. 1997. 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:

A36--$300.00 per metric ton

AS72--$325.00 per metric ton

Until such time as U.S. DOC and MINFER of Russia agree, after

consultations, upon reference prices for other grades of steel plate,

only grades A36 and A572 rnay be exported to the United States.

Consultations regarding reference prices for other grades of steel

plate shall be held within 30 days of a request and shall be completed

within 15 days.

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 (PPI) for carbon steel plate over the three months for

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

is issued.

[[Page 61783]]

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 of Russia will ensure that, with respect to merchandise

covered by each Export License/Temporary Document, the Russian unit

values of steel plate exports will equal or exceed the reference price

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

be F.O.B. port. MINFER of Russia will ensure that contracts and all

relevant documentation will be available to U.S. DOC and will be

subject to verification.

V. Export License/Temporary Document

A. MINFER of Russia shall restrict the volume of direct or indirect

exports of steel plate to the United States by means of annual quota

allocations and Export Licenses/Temporary Documents. Export Licenses/

Temporary Documents shall be issued by MINFER of Russia for all direct

or indirect exports of steel plate to the United States in accordance

with the export limit in Section III and the reference price in Section

IV.

B. Thirty days following the allocation of quota rights for any

Relevant Period.

MINFER of Russia shall provide to U.S. DOC a notice identifying

each quota recipient and the volume of quota which each recipient has

been accorded (``notice of quota allocation results''). MINFER of

Russia shall not be required to seek the approval of U.S. DOC for

changing the volume of quota assigned to individual quota recipients.

MINFER of Russia shall inform U.S. DOC of any changes in the volume of

quota assigned to individual quota recipients within 60 days of the

date on which such changes become effective.

C. Before it issues an Export License/Temporary Document, MINFER of

Russia will ensure that the Relevant Period's export limit is not

exceeded and that the price for the steel plate is at or above the

reference price.

D. MINFER of Russia shall take measures, as may be necessary, to

make effective the obligations resulting from the reference price,

export limits and Export Licenses/Temporary Documents. MINFER of Russia

will inform U.S. DOC of any violations concerning reference price,

export limits and/or Export Licenses/Temporary Documents which come to

its attention and the measures taken with respect thereto.

U.S. DOC will inform MINFER of Russia of violations concerning the

reference price, export limits, and/or Export Licenses/Temporary

Documents which come to its attention and the actions taken with

respect thereto.

E. Export Licenses/Temporary Documents will be issued sequentially,

endorsed against the export limit for the Relevant Period, and will

reference the notice of quota allocation results for the appropriate

Relevant Period.

F. Export License/Temporary Document must be issued no earlier than

90 days before the day on which the steel plate is accepted-by a

transportation company, as indicated in the bill of lading or a

comparable transportation document, for export. Export License/

Temporary Document must be also issued in English.

G. On and after October 24, 1997, the United States shall require

presentation of an original stamped Export License/Temporary Document

as a condition for entry of steel plate into the United States. The

United States will prohibit the entry of any steel plate not

accompanied by an original stamped Export License/Temporary

Document.1

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\1\ The validity of an Export License/Temporary Document will

not be affected by a subsequent change of an HTS number.

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VI. Implementation

In order to effectively restrict the volume of exports of steel

plate to the United States, MINFER of Russia agrees to implement the

following procedures no later than 90 days after October 24 1997,

except as noted in Section VI.A.:

A. Establish a quota and licensing program for all exports of steel

plate to, or destined directly or indirectly for consumption in, the

United States no later than 120 days after October 24, 1997.

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

or other entities authorized by the Government of Russia all Russian

producers, exporters, brokers. and traders of the steel plate, and

their relevant affiliated parties; as well as relevant trading

companies/resellers utilized by the Russian producer to make sales to

the United States. with all procedures established in order to

effectuate this Agreement.

C. Collect information-from all Russian producers, exporters,

brokers, and traders of steel plate, and their relevant affiliated

parties, as well as relevant trading companies/resellers utilized by

the Russian producer, on the sale of the steel plate, and report such

information pursuant to Article VIII.A of this Agreement

D. Issue Export Licenses/Temporary Documents to Russian producers

and exporters of steel plate for the duration of this Agreement in

accordance with Russian legislation.

E. Impose strict measures, such as prohibition from participation

in the export limits allowed by the Agreement. in the event that any

Russian entity does not comply in full with the terms of the Agreement.

F. Require that purchasers agree not to circumvent this Agreement,

report to MINFER of Russia subsequent arrangement entered into for the

sale, exchange, or loan to the United States of steel plate purchased

from Russia, and include these same provisions in any subsequent

contracts involving steel plate purchased from Russia.

G. For purposes of this Agreement the duration of validity of

Export Licenses/Temporary Documents will be six (6) months. U.S. D.O.C.

and MINFER of Russia may agree to an extension of the validity of the

Export License/Temporary Document in cases of force majeure.

VII. Anticircumvention

A. MINFER of Russia will take all appropriate measures under

Russian law to prevent circumvention of this Agreement. It shall

respond promptly to conduct an inquiry into allegations of

circumvention, including allegations raised by U.S. DOC, and shall

complete such inquiries in a timely manner (normally within 45 days).

MINFER of Russia shall notify U.S. DOC of the results of its inquiries

within 15 days of the conclusion of such inquiries. Within 15 days of a

request from U.S. DOC, MINFER of Russia shall share with U.S. DOC all

information received or collected by MINFER of Russia regarding its

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

inquiries. MINFER of Russia will require all Russian exporters of steel

plate to include a provision in their contracts for sales to countries

other than the United States that the steel plate sold through such

contracts cannot be re-exported, transshipped, or swapped to the United

States, or otherwise used to circumvent the export limits of this

Agreement. This requirement does not apply to exports to the United

States through a third country which are accompanied by a valid Export

License/Temporary Document. MINFER of Russia will also establish

appropriate mechanisms to enforce this requirement.

B. If, in an inquiry pursuant to Section VI.A, MINFER of Russia

determines that a Russian entity has participated in a transaction that

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

MINFER

[[Page 61784]]

of Russia shall impose measures on such company including, but not

limited to, denial of access to a quota for the steel plate.

Additionally, MINFER of Russia shall deduct an amount of steel plate

equivalent to the amount involved in such circumvention from the export

limit and shall immediately notify U.S. DOC 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.

C. If MINFER of Russia determines that a company from a third

country has circumvented the Agreement and the parties agree that no

Russian entity participated in or had knowledge of such activities,

then the parties shall hold consultations for the purpose of sharing

information regarding such circumvention and reaching mutual agreement

on the appropriate measures to be taken to eliminate such

circumvention. If the parties are unable to reach mutual agreement

within 45 days, then U.S. DOC may take appropriate measures, such as

deducting the amount of steel plate involved in such circumvention from

the export limit, or instructing U.S. Customs to deny entry to any

steel plate sold by the entity found to be circumventing the Agreement,

taking into account all relevant factors. Before taking such measures

U.S. DOC will notify MINFER of Russia of the facts and reasons

constituting the basis for U.S. DOC's intended action and will afford

MINFER of Russia 15 days in which to comment.

D. If U.S. DOC determines that a Russian 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 60 days, U.S. DOC may take

appropriate measures, such as deducting the amount of steel plate

involved in such circumvention from the export limit or instructing

U.S. Customs to deny entry to any steel plate sold by the entity found

to be circumventing the Agreement. Before taking such measures, U.S.

DOC will notify MINFER of Russia of the facts and reasons constituting

the basis for U.S. DOC's intended action and will afford MINFER of

Russia 30 days in which to comment.

E. U.S. DOC shall direct the U.S. Customs Service to require all

importers of steel plate into the United States, regardless of stated

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

certifying that the steel 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

U.S. DOC has reason to believe that such a certification has been made

falsely, U.S. DOC will refer the matter to the U.S. Customs Service or

U.S. Department of Justice for further action.

F. U.S. DOC will take the following factors into account in

distinguishing normal steel plate 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 U.S. DOC pursuant to Section VIII;

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 plate facilities;

6. Existence of any payments unaccounted for by previous or

subsequent deliveries, or any payments to one party for steel plate

delivered or swapped by another party;

7. Sequence and timing of the arrangements; and

8. Any other information relevant to the transaction or

circumstances.

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

Ownership swaps--involve the exchange of ownership of steel plate

without physical transfer. These may include exchange of ownership of

steel plate in different countries, so that the parties obtain

ownership of products located in different countries, or exchange of

ownership of steel plate 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

steel plate, without any exchange of ownership.

Displacement swaps--involve the sale or delivery of steel plate

from Russia 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 steel plate, regardless of the sequence of the

transaction.

H. U.S. DOC will enter its determinations regarding circumvention

into the record of the Agreement.

I. MINFER of Russia may request an extension of up to 15 days for

any of the deadlines mentioned in this Section.

VIII. Monitoring

MINFER of Russia will provide to U.S. DOC such information as is

necessary and appropriate to monitor the implementation of and

compliance with the terms of this Agreement. U.S. DOC shall provide

semi-annual reports to MINFER of Russia indicating the volume of

imports of the steel 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 October 24, 1997, MINFER of Russia shall collect and

provide to U.S. DOC information for exports to the United States set

forth in the agreed format in the Appendix I to this Agreement. All

such information will be provided to U.S. DOC by March 31st of each

year for exports to the United States during the period from July 1st

through December 31st. In addition, such information will be provided

to U.S. DOC by September 30th for exports from January 1st through June

30th, or within 90 days of a request made by U.S. DOC. Such information

will be subject to the verification provision identified in Section

VIII.C of this Agreement. MINFER of Russia agrees to provide Export

Licenses/Temporary Documents to only those Russian producers/exporters

which permit verification and full reporting of data. U.S. DOC 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 of steel plate to each

third country will be provided to U.S. DOC by March 31st of each year

for exports during the period from July 1st through December 31st. In

addition, such information will be provided to U.S. DOC by September

30th for exports from January 1st through June 30th.

Upon request by the U.S. DOC, transaction-specific data for exports

of steel plate to third country(ies) and home market sales of steel

plate will also be reported in the format provided in the Appendix I.

This information shall be provided within 45 days of the request.

However, MINFER of Russia

[[Page 61785]]

may request an extension of up to 30 days.

Both Parties recognize that the effective monitoring of this

Agreement may require that MINFER of Russia provide information

additional to that which is identified above. Accordingly, U.S. DOC may

establish additional reporting requirements, as appropriate, during the

course of this Agreement.

U.S. DOC shall provide notice to MINFER of Russia 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.

MINFER of Russia may request an extension of up to 30 days for any

of the deadlines mentioned in this Section.

B. Other Sources for Monitoring

U.S. DOC will review publicly available data as well as U.S.

Customs entry summaries and other of 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.

U.S. DOC will monitor Bureau of the Census 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, U.S. DOC may request the U.S. Customs Service to provide such

information. U.S. DOC may request other additional documentation from

the U.S. Customs Service.

U.S. DOC may also request the U.S. Customs Service to direct ports

of entry to forward an Antidumping Report of Importations for entries

of the steel plate during the period this Agreement is in effect.

C. Verification

MINFER of Russia will permit full verification of all information

related to the administration of this Agreement, on an annual basis or

more frequently, as the U.S. D.O.C. deems necessary to ensure that

MINFER of Russia 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. U.S. DOC shall make available to representatives of each party

to the proceeding, under appropriately-drawn administrative protective

orders consistent with U.S. laws and regulations, business proprietary

information submitted to U.S. DOC semi-annually or upon request, and in

any administrative review of this Agreement.

B. Not later than 45 days after the date of disclosure under

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

comments to U.S. DOC, 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 U.S. laws and regulations.

X. Consultations

MINFER of Russia and U.S. DOC 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 of Russia or U.S. DOC.

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 U.S. Laws and

regulations.

MINFER of Russia and U.S. DOC 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 this Agreement or an indication

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, U.S. DOC

will engage in emergency consultations. Such consultations shall begin

no later than 21 days from the day of request and shall provide for

full review, but in no event will exceed 40 days. After consultations,

U.S. DOC will provide MINFER of Russia 20 days within which to provide

comments. U.S. DOC will make a determination within 30 days after the

date established for submission of comments by MINFER of Russia.

B. Appropriate Action

If U.S. DOC determines that this Agreement is being or has been

violated, U.S. DOC will take such action as it determines is

appropriate under the U.S. laws and regulations.

C. MINFER of Russia may request an extension of up to 15 days for

any of the deadlines mentioned in this Section.

XII. Duration

The export limit provided for in Section III of this Agreement

shall remain in force from October 24, 1997 through October 23, 2002.

U.S. DOC will, upon receiving a proper request made by MINFER of

Russia, conduct an administrative review under the U.S. laws and

regulations. U.S. DOC expects to terminate this Agreement and the

underlying investigation no later than 5 years from October 24, 1997,

provided that no Russian entity has been found to have violated the

Agreement in any substantive manner. Such review and termination shall

be conducted with U.S. laws and regulations.

MINFER of Russia may terminate this Agreement at any time upon

notice to U.S. DOC. Termination shall be effective 60 days after such

notice is given to U.S. DOC. Upon termination at the request of MINFER

of Russia, the provisions of U.S. laws and regulations shall apply.

XIII. Other Provisions

A. U.S. DOC 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 steel plate

products by imports of the steel plate subject to this Agreement.

B. U.S. DOC does not consider any of the obligations concerning

exports of steel plate to the United States undertaken by MINFER of

Russia 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.

C. The English and Russian language versions of this Agreement

shall be authentic and equally binding, with the English version being

controlling.

D. All provisions of this Agreement, including the provisions of

the Preamble, shall have equal force.

E. For all purposes hereunder, the signatory Parties shall be

represented by, and all communications and notices shall be given and

addressed to:

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

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

20230

[[Page 61786]]

Ministry: Head of Department for the Regulation of External Economic

Activities of the Ministry for Foreign Economic Relations and Trade of

the Russian Federation, 18/1 Ovchinnikovskaya naberezhnaya,

Moscow 1 13324, Russia

XIV. Effective Date

The effective date of this Agreement suspending the antidumping

investigation on cut-to-length carbon steel plate from Russia shall be

October 24, 1997.

Signed on this 24th day of October, 1997.

For U.S. DOC.

Robert LaRussa,

Assistant Secretary for Import Administration.

For MINFER of Russia.

Vladimir M. Chibirev,

Acting Trade Representative of the Russian Federation to the United

States.

Appendix I

In accordance with the established format, MINFER of Russia

shall collect and provide to U.S. DOC all information necessary to

ensure compliance with this Agreement. This information will be

provided-to U.S. DOC on a semi-annual basis.

MINFER of Russia will collect and maintain data on exports to

the United States on a continuous basis. Sales data for the home

market, and data for exports to countries other than the United

States. will be reported upon request.

MINFER of Russia 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 held by Russian entities in

the United States and imported into the United States during the

period November 5, 1996 through October 24, 1997.

l. Quantity: Indicate original units of measure and in 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 title to

the steel plate.

4. Export License/Temporary Document Number: Indicate the number(s)

relating to each entry now being held in inventory.

5. Certificate of Origin Number(s): Indicate the number(s) relating

to each sale or entry.

6. Date of Original Export: Date the Export License/Temporary

Document is issued.

7. Date of Entry: Date the steel plate 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

numbers, physical description. ASTM specification, and other

available information.

B. Exports to The United States

MINFER of Russia will provide all Export License/Temporary

Document, which shall contain the following information except that

information requested in item #9, date of entry, item #10, importer

of record, item #16, final destination, and item #17 other, may be

omitted if unknown to MINFFR of Russia and the Russian licensee.

1. Export License/Temporary Document: 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 currency used per metric ton.

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

price and quantity) become fixed.

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

sale and/or entry.

8. Date of Export: Date the Export License/Temporary Document 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 Russian exporter.

13. Customer Relationship: Indicate whether the customer is

affiliated or unaffiliated to the Russian exporter.

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

allocated to the individual exporter during the Relevant Period.

15. Quota Remaining: Indicate the remaining quota available to the

individual exporter during the Relevant Period.

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

user.

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

between the customer and the final destination/end-user.

Mill Certification

MINFER of Russia shall ensure that all shipments of steel 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. Exports Other Than to The United States

Pursuant to Section VIII, paragraph A, MINFER of Russia will

provide country-specific volume and value information for exports of

steel plate to third countries, upon request, regardless of whether

MINFER of Russia licenses exports of steel plate to such

country(ies). The following information shall be provided except

that information requested in item #6, date of entry, #7, importer

of record, and item #10, may be omitted if unknown to MINFER of

Russia and the Russian licensee.

1. Export License/Temporary Document: Indicate the number(s)

relating to each sale and/or entry, if any.

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 Export License/ Temporary Document is

issued, if any.

6. Date of Entry: Date the merchandise entered the third country or

the date a book transfer took place.

7. Importer of Record: Name and address.

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

purchasing from the Russian exporter.

9. Customer Relationship: Indicate whether the customer is

affiliated or unaffiliated.

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

between the customer and the final destination.

D. Home Market Sales

Pursuant to Section VIII, paragraph A, the MINFER of Russia will

provide home market volume and value information for sales of steel

plate, upon request. The following information shall be provided

with the exception of item #6, if unknown to MINFER of Russia and

the Russian producer/exporter.

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 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 unaffiliated party

purchasing from the Russian 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.

Appendix II

Section 734 (1) of the Tariff Act of 1930 as amended:

(1) Special Rule for Non-Market Economy Countries

(I) In General.--The administering authority may suspend an

investigation under this subtitle upon acceptance of an agreement

with a non-market economy country to restrict the volume of imports

into the United States of the merchandise under investigation only

if the administering authority determines that:

(A) such agreement satisfies the requirements of subsection (d), and

(B) will prevent the suppression or undercutting of price levels of

domestic products by imports of the merchandise under investigation.

(2) Failure of Agreements.--If the administering authority

determines that the agreement accepted under this subsection no

[[Page 61787]]

longer prevents the suppression or undercutting of domestic prices

of merchandise manufactured in the United States, the provisions of

subsection (I) shall apply.

[FR Doc. 97-30395 Filed 11-18-97; 8:45 am]

BILLING CODE 3510-DS-P