Certain Hot-Rolled Lead and Bismuth Carbon Steel Products From the United Kingdom: Initiation and Preliminary Results of Changed- Circumstances Antidumping and Countervailing Duty Administrative Reviews

DEPARTMENT OF COMMERCE

International Trade Administration

[A-412-810, C-412-811]

Certain Hot-Rolled Lead and Bismuth Carbon Steel Products From

the United Kingdom: Initiation and Preliminary Results of Changed-

Circumstances Antidumping and Countervailing Duty Administrative

Reviews

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of initiation and preliminary results of changed-

circumstances antidumping and countervailing duty administrative

reviews.

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SUMMARY: The Department of Commerce has received information sufficient

to warrant initiation of a changed-circumstances administrative review

of the antidumping and countervailing duty orders on hot-rolled lead

and

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bismuth carbon steel products from the United Kingdom. Based on this

information, we preliminarily determine that Niagara LaSalle (UK)

Limited is the successor-in-interest to Glynwed Metals Processing

Limited for purposes of determining antidumping and countervailing duty

liability. Interested parties are invited to comment on these

preliminary results.

EFFECTIVE DATE: October 5, 1999.

FOR FURTHER INFORMATION CONTACT: Rebecca Trainor or Kate Johnson

(Antidumping) or Dana Mermelstein (Countervailing), Office of AD/CVD

Enforcement, Import Administration, International Trade Administration,

U.S. Department of Commerce, 14th Street and Constitution Avenue, N.W.,

Washington, D.C. 20230; telephone (202) 482-4007, (202) 482-4929, or

(202) 482-3208, respectively.

SUPPLEMENTARY INFORMATION:

The Applicable Statute

Unless otherwise indicated, all citations to the Tariff Act of

1930, as amended (the Act), are references to the provisions effective

January 1, 1995, the effective date of the amendments made to the Act

by the Uruguay Round Agreements Act (URAA). In addition, unless

otherwise indicated, all citations to the Department of Commerce's (the

Department's) regulations are to the regulations at 19 CFR Part 351

(April 1999).

Background

On March 22, 1993, the Department published in the Federal Register

the antidumping duty order on certain hot-rolled lead and bismuth

carbon steel products from the United Kingdom (58 FR 15324). Also, on

March 22, 1993, the Department published in the Federal Register the

companion countervailing duty order (58 FR 15327). On August 18, 1999,

Niagara LaSalle (UK) Limited (Niagara LaSalle UK) submitted a letter

stating that it is the successor-in-interest to Glynwed Metals

Processing Limited (Glynwed), and requested that the Department conduct

a changed-circumstances review to determine whether Niagara LaSalle UK

should receive the same antidumping and countervailing duty treatment

as is accorded Glynwed with respect to the subject merchandise. Niagara

LaSalle UK requested that the result of the Department's changed-

circumstances review be retroactive to May 21, 1999, the date of its

acquisition of Glynwed.

Scope of the Review

The products covered by this review are hot-rolled bars and rods of

nonalloy or other alloy steel, whether or not descaled, containing by

weight 0.03 percent or more of lead or 0.05 percent or more of bismuth,

in coils or cut lengths, and in numerous shapes and sizes. Excluded

from the scope of this review are other alloy steels (as defined by the

Harmonized Tariff Schedule of the United States (HTSUS) Chapter 72,

note 1 (f)), except steels classified as other alloy steels by reason

of containing by weight 0.4 percent or more of lead, or 0.1 percent or

more of bismuth, tellurium, or selenium. Also excluded are semi-

finished steels and flat-rolled products. Most of the products covered

in this review are provided for under subheadings 7213.20.00.00 and

7214.30.00.00 of the HTSUS. Small quantities of these products may also

enter the United States under the following HTSUS subheadings:

7213.31.30.00; 7213.31.60.00; 7213.39.00.30; 7213.39.00.60;

7213.39.00.90; 7213.91.30.00; 7213.91.45.00; 7213.91.60.00; 7213.99.00;

7214.40.00.10, 7214.40.00.30, 7214.40.00.50; 7214.50.00.10;

7214.50.00.30, 7214.50.00.50; 7214.60.00.10; 7214.60.00.30;

7214.60.00.50; 7214.91.00; 7214.99.00; 7228.30.80.00; and

7228.30.80.50. HTSUS subheadings are provided for convenience and

customs purposes. The written description of the scope of this

proceeding is dispositive.

Initiation and Preliminary Results of Review

In a letter dated August 18, 1999, Niagara LaSalle UK advised the

Department that, effective May 21, 1999, it had acquired Glynwed's

steelmaking businesses, including two that are involved in

manufacturing leaded steel subject to the antidumping and

countervailing duty orders: Dudley Port Rolling Mills (Dudley Port),

and George Gadd & Company (George Gadd). According to the submission,

Niagara LaSalle UK was created as a subsidiary of Niagara Corporation,

for the purpose of acquiring the assets of Glynwed's steel bar

businesses. Niagara Corporation, a U.S. company, also owns Niagara

LaSalle Corporation, a U.S. manufacturer of cold-finished steel bar. In

its submission, Niagara LaSalle UK states that it purchased Glynwed's

steel bar businesses as operating business units, and that all

personnel, operations and facilities remain essentially unchanged.

According to Niagara LaSalle UK, the only difference is that, on May

22, 1999, George Gadd and Dudley Port were combined to form a single

business unit called Gadd Dudley Port Steel (Gadd Dudley Port).

Thus, in accordance with section 751(b) of the Act, the Department

is initiating a changed-circumstances review to determine whether

Niagara LaSalle UK is the successor-in-interest to Glynwed for purposes

of determining antidumping and countervailing duty liability with

respect to the subject merchandise. In making such a successor-in-

interest determination, the Department examines several factors

including, but not limited to, changes in: (1) management; (2)

production facilities; (3) supplier relationships; and (4) customer

base. See, e.g., Brass Sheet and Strip from Canada: Final Results of

Antidumping Duty Administrative Review, 57 FR 20460 (May 13, 1992)

(Canadian Brass). While no single or several of these factors will

necessarily provide a dispositive indication, the Department will

generally consider the new company to be the successor to the previous

company if its resulting operation is not materially dissimilar to that

of its predecessor. See, e.g., Industrial Phosphoric Acid from Israel:

Final Results of Changed Circumstances Review, 59 FR 6944 (February 14,

1994), Canadian Brass, and Fresh and Chilled Atlantic Salmon from

Norway: Initiation and Preliminary Results of Changed Circumstances

Antidumping Duty Administrative Review, 63 FR 50880 (September 23,

1998). Thus, if the evidence demonstrates that, with respect to the

production and sale of the subject merchandise, the new company

operates as the same business entity as the former company, the

Department will accord the new company the same antidumping and

countervailing duty treatment as its predecessor.

We preliminarily determine that Niagara LaSalle UK is the

successor-in-interest to Glynwed, following its acquisition of Glynwed.

Niagara LaSalle UK submitted documentation supporting its claims that

its acquisition of Glynwed's steelmaking businesses resulted in no

significant changes in either production facilities, supplier

relationships, customer base, or management. This documentation

consisted of: (1) A letter from Niagara Corporation's president to all

employees of the Steel Bar Businesses emphasizing the intended

continuity in employment and operations; (2) the Sale of Business

Agreement, stating that the business is being sold as a going concern;

(3) a letter from Gadd Dudley Port to its suppliers shortly after the

change in ownership, assuring suppliers of its continued business; (4)

charts comparing the production facilities, billet suppliers, and

customers, both before and after the acquisition; and (5) a chart

comparing

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the companies' management structures and employees both before and

after the acquisition. These documents demonstrate that Glynwed's

consolidated leaded steel bar business was purchased as a going

concern, and its acquisition by Niagara LaSalle UK resulted in little

or no change in production operations, facilities, personnel, supplier

relationships and customer base, and that Niagara LaSalle UK's

management team consists entirely of former Glynwed managers. Because

Niagara LaSalle UK has presented evidence to establish a prima facie

case of its successorship status, we find it appropriate to issue the

preliminary results in combination with the notice of initiation in

accordance with 19 CFR 351.221(c)(3)(ii).

Thus, we preliminarily determine that Niagara LaSalle UK should

receive the same antidumping and countervailing duty treatment with

respect to certain hot-rolled lead and bismuth carbon steel products as

the former Glynwed. With regard to countervailing duties, Glynwed is

excluded from the countervailing duty order. Thus, if these preliminary

results are adopted in our final results of this changed circumstances

review, we will instruct the Customs Service to liquidate, without

regard to countervailing duties, all entries entered, or withdrawn from

warehouse, for consumption on or after May 21, 1999, the date of

Niagara LaSalle UK's acquisition of Glynwed. With regard to antidumping

duties, a cash deposit rate of 7.69 percent will be effective for all

shipments of the subject merchandise entered, or withdrawn from

warehouse, for consumption on or after the publication date of the

final results of this changed circumstances review.

Public Comment

Any interested party may request a hearing within 10 days of

publication of this notice. Any hearing, if requested, will be held no

later than 21 days after the date of publication of this notice, or the

first workday thereafter. Case briefs from interested parties may be

submitted not later than 7 days after the date of publication of this

notice. Rebuttal briefs, limited to the issues raised in those

comments, may be filed not later than 14 days after the date of

publication of this notice. All written comments shall be submitted in

accordance with 19 CFR 351.303. Persons interested in attending the

hearing, if one is requested, should contact the Department for the

date and time of the hearing. The Department will publish the final

results of this changed circumstances review, including the results of

its analysis of issues raised in any written comments.

We are issuing and publishing this determination and notice in

accordance with sections 751(b)(1) and 777(i)(1) of the Act and section

351.216 of the Department's regulations.

Dated: September 29, 1999.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

[FR Doc. 99-25873 Filed 10-4-99; 8:45 am]

BILLING CODE 3510-DS-P