Notice of Preliminary Determinations of Sales at Less Than Fair Value: Certain Cold-Rolled Flat-Rolled Carbon-Quality Steel Products From Argentina, Japan and Thailand

Federal RegisterNov 5, 1999

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-357-811, A-588-849, A-549-814]

Notice of Preliminary Determinations of Sales at Less Than Fair

Value: Certain Cold-Rolled Flat-Rolled Carbon-Quality Steel Products

From Argentina, Japan and Thailand

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: November 5, 1999.

FOR FURTHER INFORMATION CONTACT: LaVonne Jackson at (202) 482-3003 or

Gabriel Adler at (202) 482-1442, Import Administration, Room 1870,

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

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

The Applicable Statute and Regulations

Unless otherwise indicated, all citations to the statute are

references to the provisions effective January 1, 1995, the effective

date of the amendments made to the Tariff Act of 1930 (the Act) by the

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

indicated, all citations to Department of Commerce (Department)

regulations refer to the regulations codified at 19 CFR part 351 (April

1999).

Preliminary Determinations

We preliminarily determine that cold-rolled flat-rolled carbon-

quality steel products (``cold-rolled steel products'') from Argentina,

Japan, and Thailand are being sold, or are likely to be sold, in the

United States at less than fair value (``LTFV''), as provided in

section 733 of the Act. The estimated margins of sales at LTFV are

shown in the Suspension of Liquidation section of this notice.

Case History

These investigations were initiated on June 21, 1999. See

Initiation of Antidumping Duty Investigations: Certain Cold-Rolled

Flat-Rolled Carbon-Quality Steel Products from Argentina, Brazil, the

People's Republic of China, Indonesia, Japan, the Russian Federation,

Slovakia, South Africa, Taiwan, Thailand, Turkey, and Venezuela

(``Initiation Notice''), 64 FR 34194 (June 25, 1999). Since the

initiation of the investigations, the following events occurred:

On June 22, 1999, the Department issued Section A antidumping

questionnaires to all known producers/exporters of subject merchandise,

including those named in the petitions. The Department received

responses to this questionnaire from Siderar Limited (``Siderar''), in

the Argentina proceeding, and Nippon Steel Corporation (``NSC''),

Kawasaki Steel Corporation (``KSC''), NKK Corporation (``NKK'') and

Sumitomo Metals Industries, Ltd. (``Sumitomo'') in the Japan

proceeding. The Department did not receive responses to the

questionnaire from the following companies: Kobe Steel Ltd. (``Kobe''),

and Nisshin Steel Co., Ltd. (``Nisshin) in the Japan proceeding, or

TCRSSC/Sahaviriya (the sole producer and exporter of subject

merchandise from Thailand during the POI 1), in the Thailand

proceeding.

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

\1\ On July 8, 1999, the Royal Thai Embassy in Washington, DC

confirmed that Thai Cold Rolled Steel and Sheet Company

(``TCRSSC''), an affiliate of Sahaviriya Steel Industries Public

Co., Ltd., collectively ``TCRSSC/Sahaviriya'', was the only Thai

exporter of subject merchandise to the United States during the POI.

See Memorandum to the File: Conversation with Royal Thai Embassy

(``Conversation with Thai Embassy''), (July 8, 1999).

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

On July 9, 1999, the Department selected the following companies as

mandatory respondents in these investigations: Siderar (the sole

Argentine producer of subject merchandise) in the Argentina proceeding;

NSC and KSC in the Japan proceeding; and TCRSSC/Sahaviriya in the

Thailand proceeding. See Respondent Selection, below. On July 9, 1999,

the Department issued Section B, C, and D antidumping questionnaires to

each of the selected respondents.

On July 16, 1999, the United States International Trade Commission

(ITC) preliminarily determined that there is a reasonable indication

that imports of the products subject to each of these antidumping

investigations are materially injuring the United States industry. See

Certain Cold-Rolled Steel Products from Argentina, Brazil, China,

Indonesia, Japan, Russia, Slovakia, South Africa, Taiwan, Thailand,

Turkey and Venezuela, 64 FR 41458 (July 30, 1999).

In August 1999, the mandatory respondent in the Thailand case

notified the Department that it would not be responding at all to the

Department's questionnaire, and all the mandatory respondents in the

Argentina and Japan proceedings notified the Department that they would

not be responding to the Section B, C, and D questionnaires.

Period of Investigations

The period of the investigations (POI) is April 1, 1998, through

March 31, 1999. This period corresponds to the four most recent fiscal

quarters prior to the month of the filing of the petition (i.e., June

1999).

Scope of Investigations

For purposes of this investigation, the products covered are

certain cold-rolled (cold-reduced) flat-rolled carbon-quality steel

products, neither clad, plated, nor coated with metal, but whether or

not annealed, painted, varnished, or coated with plastics or other non-

metallic substances, both in coils, 0.5 inch wide or wider, (whether or

not in successively superimposed layers and/or otherwise coiled, such

as spirally oscillated coils), and also in straight lengths, which, if

less than 4.75 mm in thickness having a width that is 0.5 inch or

greater and that measures at least 10 times the thickness; or, if of a

thickness of 4.75 mm or more, having a width exceeding 150 mm and

measuring at least twice the thickness. The products described above

may be rectangular, square, circular or other shape and include

products of either rectangular or non-rectangular 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.

Specifically included in this scope are vacuum degassed, fully

stabilized (commonly referred to as interstitial-free (``IF'')) steels,

high strength low alloy (``HSLA'') steels, and motor lamination steels.

IF steels are recognized as low carbon steels with micro-alloying

levels of elements such as titanium and/or niobium added to stabilize

carbon and nitrogen elements. HSLA steels are recognized as steels with

micro-alloying levels of elements such as chromium, copper, niobium,

titanium, vanadium, and molybdenum. Motor lamination steels contain

micro-alloying levels of elements such as silicon and aluminum.

Steel products included in the scope of this investigation,

regardless of definitions in the Harmonized Tariff Schedules of the

United States (``HTSUS''), are products in which: (1) Iron

predominates, by weight, over each of the other contained elements; (2)

the carbon content is 2 percent or less, by weight, and; (3) none of

the elements listed below exceeds the quantity, by weight, respectively

indicated:

1.80 percent of manganese, or

2.25 percent of silicon, or

1.00 percent of copper, or

0.50 percent of aluminum, or

1.25 percent of chromium, or

0.30 percent of cobalt, or

0.40 percent of lead, or

1.25 percent of nickel, or

0.30 percent of tungsten, or

0.10 percent of molybdenum, or

0.10 percent of niobium (also called columbium), or

[[Page 60411]]

0.15 percent of vanadium, or

0.15 percent of zirconium.

All products that meet the written physical description, and in

which the chemistry quantities do not exceed any one of the noted

element levels listed above, are within the scope of this investigation

unless specifically excluded. The following products, by way of

example, are outside and/or specifically excluded from the scope of

this investigation:

SAE grades (formerly also called AISI grades) above 2300;

Ball bearing steels, as defined in the HTSUS;

Tool steels, as defined in the HTSUS;

Silico-manganese steel, as defined in the HTSUS;

Silicon-electrical steels, as defined in the HTSUS, that

are grain-oriented;

Silicon-electrical steels, as defined in the HTSUS, that

are not grain-oriented and that have a silicon level exceeding 2.25

percent;

All products (proprietary or otherwise) based on an alloy

ASTM specification (sample specifications: ASTM A506, A507);

Silicon-electrical steels, as defined in the HTSUS, that

are not grain-oriented and that have a silicon level less than 2.25

percent, and

(a) Fully-processed, with a core loss of less than 0.14 watts/pound

per mil (.001 inches), or

(b) Semi-processed, with core loss of less than 0.085 watts/pound

per mil (.001 inches);

Certain shadow mask steel, which is aluminum killed cold-

rolled steel coil that is open coil annealed, has an ultra-flat,

isotropic surface, and which meets the following characteristics:

Thickness: 0.001 to 0.010 inches

Width: 15 to 32 inches

Chemical Composition

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

Element.......................................... C

Weight %......................................... Certain flapper valve steel, which is hardened and

tempered, surface polished, and which meets the following

characteristics:

Thickness: 1.0 mm

Width: 152.4 mm

Chemical Composition

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

Element C Si Mn P S

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

Element C Si Mn P S

Weight % 0.90-1.05 0.15-0.35 0.30-0.50 0.03 0.006

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

Mechanical Properties

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

Tensile Strength............. 162 Kgf/mm2

Hardness..................... 475 Vickers hardness number

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

Physical Properties

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

Flatness.....................

0.04

Oxide Inclusion.........................................

0.05

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

Compressive Stress: 10 to 40 Kgf/mm2.

Surface Roughness

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

Thickness (mm) Roughness (m)

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

t 0.209..................... Rz 0.5

0.209 0.310............. Rz 0.6

0.310 0.440............. Rz 0.7

0.440 0.560............. Rz 0.8

0.560 1.0

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

Certain ultra thin gauge steel strip, which meets the

following characteristics:

Thickness: 0.100 mm 7%

Width: 100 to 600 mm

[[Page 60412]]

Chemical Composition

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

Element C Mn P S Al Fe

Weight % 0.07 0.2--0.5 0.05 0.05 0.07 Balance

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

Mechanical Properties

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

Hardness....................... Full Hard (Hv 180 minimum)

Total Elongation............... 0.3 micron

Camber (in 2.0 m).............. 0.5 mm

Edge Burr...................... Certain silicon steel, which meets the following

characteristics:

Thickness: 0.024 inches .0015 inches

Width: 33 to 45.5 inches

Chemical Composition:

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

Element C Mn P S Si Al

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

Min. Weight %..................... ........... ........... ........... ........... 0.65 ...........

Max. Weight %..................... 0.004 0.4 0.09 0.009 ........... 0.4

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

Mechanical Properties

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

Hardness B 60-75 (AIM 65)

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

Physical Properties

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

Finish...................................... Smooth (30-60 microinches)

Gamma Crown (in 5 inches)................... 0.0005 inches, start

measuring \1/4\ inch from

slit edge

Flatness.................................... 20 I-UNIT max.

Coating..................................... C3A-.08A max. (A2 coating

acceptable)

Camber (in any 10 feet)..................... \1/16\ inch

Coil Size I.D............................... 20 inches

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

Magnetic Properties

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

Core Loss (1.5T/60 Hz) NAAS................ 3.8 Watts/Pound max.

Permeability (1.5T/60 Hz) NAAS............. 1700 gauss/oersted typical 1500 minimum

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

Certain aperture mask steel, which has an ultra-flat

surface flatness and which meets the following characteristics:

Thickness: 0.025 to 0.245 mm

Width: 381--1000 mm

Chemical Composition

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

Element C N Al

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

Weight %.............................. Certain tin mill black plate, annealed and temper-rolled,

continuously cast, which meets the following characteristics:

[[Page 60413]]

Chemical Composition

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

Element C Mn P S Si Al As Cu B N

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

Min. Weight %............................. 0.02 0.20 ......... ......... ......... 0.03 ......... ......... ......... 0.003

Max. Weight %............................. 0.06 0.40 0.02 \1\ 0.023 0.03 0.08 0.02 0.08 ......... \2\ 0.008

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

\1\ Aiming 0.018 Max.

\2\ Aiming 0.05

\3\ Aiming 0.005.

Non-metallic Inclusions: Examination with the S.E.M. shall not

reveal individual oxides > 1 micron (0.000039 inches) and inclusion

groups or clusters shall not exceed 5 microns (0.000197 inches) in

length.

Surface Treatment as follows: The surface finish shall be free of

defects (digs, scratches, pits, gouges, slivers, etc.) and suitable for

nickel plating.

Surface Finish

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

Roughness, RA Microinches

(Micrometers)

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

Aim Min. Max.

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

Extra Bright..................... 5(0.1) 0(0) 7(0.2)

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

Certain full hard tin mill black plate, continuously cast,

which meets the following characteristics:

Chemical Composition

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

Element C Mn P S Si Al As Cu B N

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

Min. Weight %............................. 0.02 0.20 ......... ......... ......... 0.03 ......... ......... ......... 0.003

Max. Weight %............................. 0.06 0.40 0.02 \1\ 0.023 0.03 0.08 0.02 0.08 ......... \3\ 0.008

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

\1\ Aiming 0.018 Max.

\2\ Aiming 0.005

\3\ Aiming 0.005.

Non-metallic Inclusions: Examination with the S.E.M. shall not

reveal individual oxides > 1 micron (0.000039 inches) and inclusion

groups or clusters shall not exceed 5 microns (0.000197 inches) in

length.

Surface Treatment as follows: The surface finish shall be free of

defects (digs, scratches, pits, gouges, slivers, etc.) and suitable for

nickel plating.

Surface Finish

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

Roughness, RA Microinches

(Micrometers)

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

Aim Min. Max.

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

Stone Finish..................... 16(0.4) 8(0.2) 24(0.6)

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

Certain ``blued steel'' coil (also know as ``steamed blue

steel'' or ``blue oxide'') with a thickness and size of 0.38 mm x 940

mm x coil, and with a bright finish;

Certain cold-rolled steel sheet, which meets the following

characteristics:

Thickness (nominal): 0.019 inches

Width: 35 to 60 inches

Chemical Composition

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

Element C O B

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

Max. Weight %.................... 0.004 ........... ...........

Min. Weight %.................... ........... 0.010 0.012

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

Certain band saw steel, which meets the following

characteristics:

Thickness: 1.31 mm

Width: 80 mm

Chemical Composition

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

Element C Si Mn P S Cr Ni

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

Weight %......................... 1.2 to 1.3 0.15 to 0.35 0.20 to 0.35 0.03 0.007 0.3 to 0.5 0.25

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

[[Page 60414]]

Other properties:

Carbide: fully spheroidized having 0.003 mm and uniformly dispersed

Surface finish: bright finish free from pits, scratches, rust, cracks,

or seams Smooth edges

Edge camber (in each 300 mm of length): 7 mm arc height

Cross bow (per inch of width): 0.015 mm max.

The merchandise subject to this investigation is typically

classified in the HTSUS at subheadings: 7209.15.0000, 7209.16.0030,

7209.16.0060, 7209.16.0090, 7209.17.0030, 7209.17.0060, 7209.17.0090,

7209.18.1530, 7209.18.1560, 7209.18.2550, 7209.18.6000. 7209.25.0000,

7209.26.0000, 7209.27.0000, 7209.28.0000, 7209.90.0000, 7210.70.3000,

7210.90.9000, 7211.23.1500, 7211.23.2000, 7211.23.3000, 7211.23.4500,

7211.23.6030, 7211.23.6060, 7211.23.6085, 7211.29.2030, 7211.29.2090,

7211.29.4500, 7211.29.6030, 7211.29.6080, 7211.90.0000, 7212.40.1000,

7212.40.5000, 7212.50.0000, 7225.19.0000, 7225.50.6000, 7225.50.7000,

7225.50.8010, 7225.50.8085, 7225.99.0090, 7226.19.1000, 7226.19.9000,

7226.92.5000, 7226.92.7050, 7226.92.8050, and 7226.99.0000.

Although the HTSUS subheadings are provided for convenience and

U.S. Customs Service (``U.S. Customs'') purposes, the written

description of the merchandise under investigation is dispositive.

The Department set aside a period for all interested parties to

raise issues regarding product coverage. From July through October

1999, the Department received responses from a number of parties

including importers, respondents, consumers, and petitioners, aimed at

clarifying the scope of the investigation. See Memorandum to Joseph A.

Spetrini (``Scope Memorandum''), November 1, 1999, for a list of all

persons submitting comments and a discussion of all scope comments.

There are several scope exclusion requests for products which are

currently covered by the scope of this investigation that are still

under consideration by the Department. These items are considered to be

within the scope for this preliminary determination; however, these

requests will be reconsidered for the final determination. See Scope

Memorandum.

Selection of Respondents

Section 777A(c)(1) of the Act directs the Department to calculate

individual dumping margins for each known exporter and producer of the

subject merchandise. However, section 777A(c)(2) of the Act gives the

Department discretion, when faced with a large number of exporters/

producers, to limit its examination to a reasonable number of such

companies if it is not practicable to examine all companies. Where it

is not practicable to examine all known producers/exporters of subject

merchandise, this provision permits the Department to investigate

either: (1) A sample of exporters, producers, or types of products that

is statistically valid based on the information available at the time

of selection, or (2) exporters and producers accounting for the largest

volume of the subject merchandise that can be reasonably examined.

After consideration of the complexities expected to arise in these

proceedings and the resources available to the Department, we

determined that it was not practicable in these investigations to

examine all known producers/exporters of subject merchandise. This was

not a concern in the investigations involving Argentina and Thailand,

since there was only one producer/exporter of subject merchandise in

each of those countries during the POI. However, with respect to Japan,

which had multiple producers/exporters of subject merchandise during

the POI, we determined that, given our resources, we would be able to

investigate two such companies. The respondents selected for Japan were

those with the greatest export volume; together they accounted for more

than 50 percent of all known exports of the subject merchandise during

the POI from Japan. For a more detailed discussion of respondent

selection in these investigations, see Respondent Selection Memorandum

(July 9, 1999).

Facts Available

The following companies failed to respond to our questionnaires:

Siderar in the Argentina case; NSC, KSC, Kobe, and Nisshin in the Japan

case; and TCRSSC/Sahaviriya in the Thailand case. Section 776(a)(2) of

the Act provides that, if an interested party (A) withholds information

that has been requested by the Department; (B) fails to provide such

information in a timely manner or in the form or manner requested

subject to section 782(c)(1) and (e) of the Act; (C) significantly

impedes a proceeding under the antidumping statute; or (D) provides

such information but the information cannot be verified, the Department

shall, subject to subsection 782(d) of the Act, use facts otherwise

available in reaching the applicable determination. Because Siderar,

NSC, KSC, Kobe, Nisshin and TCRSSC/Sahaviriya failed to respond to our

questionnaire, pursuant to section 776(a)(2)(A) of the act we resorted

to facts otherwise available to calculate the dumping margins for these

companies.

Section 776(b) of the Act provides that the Department may use an

inference adverse to the interests of a party that has failed to

cooperate by not acting to the best of its ability to comply with the

Department's requests for information. See also Statement of

Administrative Action (``SAA'') accompanying the URAA, H.R. Rep. No.

103-316 at 870 (1994) (SAA). Failure by Siderar, KSC, NSC, Kobe,

Nisshin, and TCRRSC/Sahaviriya to respond to the Department's

antidumping questionnaire constitutes a failure to act to the best of

their ability to comply with a request for information, within the

meaning of section 776 of the Act. Because Siderar, KSC, NSC, Kobe,

Nisshin, and TCRSSC/Sahaviriya failed to respond, the Department has

determined that, in selecting among the facts otherwise available, an

adverse inference is warranted in selecting the facts available for

these companies.

Because we were unable to calculate margins for the respondents in

Argentina, Japan, or Thailand, consistent with Department practice, we

assigned these respondents, in the cases of Argentina and Thailand, the

highest margins alleged in the amendments to the respective petitions

and in the case of Japan, the highest margin alleged in the petition.

See Notice of Preliminary Determination of Sales at Less Than Fair

Value: Stainless Steel Wire Rod from Germany (``Wire Rod from

Germany''), 63 FR 10847 (March 5, 1998). The highest petition margins

are 24.53 percent for Argentina, 53.04 percent for Japan, and 80.67

percent for Thailand. See Initiation Notice.

Section 776(b) states that an adverse inference may include

reliance on information derived from the petition. See also SAA at 829-

831. Section 776(c) of the Act provides that, when the Department

relies on secondary information (such as the petition) in using the

facts otherwise available, it must, to the extent practicable,

corroborate that information from independent sources that are

reasonably at its disposal.

The SAA clarifies that ``corroborate'' means that the Department

will satisfy itself that the secondary information to

[[Page 60415]]

be used has probative value (see SAA at 870). The SAA also states that

independent sources used to corroborate such evidence may include, for

example, published price lists, official import statistics and customs

data, and information obtained from interested parties during the

particular investigation (see SAA at 870).

We reviewed the adequacy and accuracy of the information in the

petitions during our pre-initiation analysis of the petitions, to the

extent appropriate information was available for this purpose. See

Import Administration AD Investigation Initiation Checklist (June 21,

1999), for a discussion of the margin calculations in the petitions. In

addition, in order to determine the probative value of the margins in

the petitions for use as adverse facts available for purposes of this

determination, we examined evidence supporting the calculations in the

petitions. In accordance with section 776(c) of the Act, to the extent

practicable, we examined the key elements of the export price (``EP'')

and normal value (``NV'') calculations on which the margins in the

petitions were based. Our review of the EP and NV calculations

indicated that the information in the petitions has probative value, as

certain information included in the margin calculations in the

petitions is from public sources concurrent, for the most part, with

the POI (e.g., international freight and insurance, customs duty,

interest rates). For purposes of this preliminary determination, the

Department compared the export prices alleged by the petitioners for

sales to unaffiliated first purchasers with contemporaneous, average

unit values of U.S. imports classified under the appropriate HTS

number. We noted that the U.S. price quotes of the per unit values of

the subject merchandise derived by the petitioners were well within the

range of the average unit values reported by U.S. Customs. U.S.

official import statistics are sources which we consider to require no

further corroboration by the Department. See Notice of Final

Determination of Sales at Less Than Fair Value: Collated Roofing Nails

From the People's Republic of China, 62 FR 51410, (October 1, 1997).

However, with respect to certain other data included in the margin

calculations of the petition (e.g., home market unit prices), neither

respondents nor other interested parties provided the Department with

further relevant information and the Department is aware of no other

independent sources of information that would enable it to further

corroborate the remaining components of the margin calculation in the

petition. The implementing regulation for section 776 of the Act, at 19

CFR 351.308(c), states ``[t]he fact that corroboration may not be

practicable in a given circumstance will not prevent the Secretary from

applying an adverse inference as appropriate and using the secondary

information in question.'' Additionally, we note that the SAA at 870

specifically states that, where ``corroboration may not be practicable

in a given circumstance,'' the Department may nevertheless apply an

adverse inference. Accordingly, we find, for purposes of this

preliminary determination, that this information is sufficiently

corroborated.

All Others

Section 735(c)(5)(B) of the Act provides that, where the estimated

weighted-averaged dumping margins established for all exporters and

producers individually investigated are zero or de minimis or are

determined entirely under section 776 of the Act, the Department may

use any reasonable method to establish the estimated all-others rate

for exporters and producers not individually investigated. Our recent

practice under these circumstances has been to assign, as the ``all

others'' rate, the simple average of the margins in the petition. See

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

Stainless Steel Plate in Coil from Canada (``Stainless Steel Plate from

Canada''), 64 FR 15457 (March 31, 1999); Notice of Final Determination

of Sales at Less Than Fair Value: Stainless Steel Plate in Coil from

Italy (``Stainless Steel Plate from Italy''), 64 FR 15458, 15459 (March

21, 1999).

With respect to Argentina, because the petition contained only a

single margin, and there is no other information on the record on which

to base an ``all others'' rate, we have also based the ``all others''

rate on the sole petition margin, i.e., 24.53 percent. See Notice of

Final Determination of Sales at Less Than Fair Value: Steel Wire Rod

from Venezuela, 63 FR 8946 (February 23, 1998). With respect to Japan,

we are basing the ``all others'' rate on the simple average of margins

in the petition, which is 39.28 percent. Finally, with respect to

Thailand, we also are basing the ``all others'' rate on the simple

average of margins in the amendment to the petition, which is 67.97

percent.

Critical Circumstances

The petitioners made a timely allegation, in the petitions, that

there is a reasonable basis to believe or suspect that critical

circumstances exist with respect to imports of subject merchandise from

Japan and Thailand. According to section 733(e)(1) of the Act, if

critical circumstances are alleged under section 733(e) of the Act, the

Department must examine whether there is a reasonable basis to believe

or suspect that: (A)(i) There is a history of dumping and material

injury by reason of dumped imports in the United States or elsewhere of

the subject merchandise, or (ii) the person by whom, or for whose

account, the merchandise was imported knew or should have known that

the exporter was selling the subject merchandise at less than its fair

value and there was likely to be material injury by reason of such

sales, and (B) there have been massive imports of the subject

merchandise over a relatively short period. Section 351.206(h)(1) of

the Department's regulations provides that, in determining whether

imports of the subject merchandise have been ``massive,'' the

Department normally will examine: (i) The volume and value of the

imports; (ii) seasonal trends; and (iii) the share of domestic

consumption accounted for by the imports. In addition, section

351.206(h)(2) of the Department's regulations provides that an increase

in imports during the ``relatively short period'' of over 15 percent

may be considered ``massive.'' Section 351.206(i) of the Department's

regulations defines ``relatively short period'' normally as the period

beginning on the date the proceeding begins (i.e., the date the

petition is filed) and ending at least three months later.

Because we are not aware of any antidumping order in any country on

cold-rolled steel products from Japan or Thailand, we do not find that

a reasonable basis to believe or suspect that there is a history of

dumping and material injury by reason of dumped imports in the United

States or elsewhere of the subject merchandise exists. Therefore, we

must look to whether there was importer knowledge under section

733(e)(1)(A)(ii) of the Act.

In determining whether there is a reasonable basis to believe or

suspect that an importer knew or should have known that the exporter

was selling the cold-rolled steel at less than fair value, the

Department's normal practice is to consider for EP sales margins of 25

percent or more sufficient to impute knowledge of dumping. See Certain

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

62 FR 31972, 31978 (June 11, 1997). As discussed above, we have

applied, as adverse facts available for NSC, KSC, Kobe and Nisshin in

the Japan investigation and TCRSSC/Sahaviriya in the Thailand

investigation, the highest

[[Page 60416]]

of the dumping margins presented in the petitions and corroborated by

the Department. These margins are in excess of 25 percent. Therefore,

we impute knowledge of dumping in regard to exports by these companies.

In determining whether there is a reasonable basis to believe or

suspect that an importer knew or should have known that there was

likely to be material injury by reason of dumped imports, the

Department normally looks to the preliminary injury determination of

the ITC.

If the ITC finds a reasonable indication of present material injury

to the relevant U.S. industry, the Department normally determines that

a reasonable basis exists to impute importer knowledge that there was

likely to be material injury by reason of dumped imports. The ITC has

found that a reasonable indication of present material injury exists in

regard to both Japan and Thailand. See ITC Preliminary Determination.

As a result, the Department has determined that there is a reasonable

basis to believe or suspect that importers knew or should have known

that there was likely to be material injury by reason of dumped imports

from NSC, KSC, Kobe, Nisshin and TCRRSC/Sahaviriya.

In determining whether there are ``massive imports'' over a

``relatively short period,'' the Department typically compares the

import volume of the subject merchandise for at least three months

immediately preceding and following the filing of the petition. Imports

normally will be considered massive when imports have increased by 15

percent or more during this ``relatively short period.'' Since there is

no verifiable information on the record with respect to NSC, KSC, Kobe,

Nisshin, and TCRRSC/Sahaviriya's import volumes, we must use the facts

available in accordance with section 776(a) of the Act. Accordingly, we

examined U.S. Customs data on imports of cold-rolled steel products

from Japan and Thailand in order to determine whether these data

reasonably preclude an increase in shipments of 15 percent or more

within a relatively short period for any of these companies.

These statistics, in the case of cold-rolled steel from Japan,

cover numerous HTS categories that include merchandise other than

subject merchandise. Therefore, we cannot rely on these data in

determining if massive shipments of cold-rolled steel from Japan

occurred over a relatively short time. See Notice of Final

Determination of Sales at Less Than Fair Value: Stainless Steel Sheet

and Strip in Coils from Japan (``Stainless Steel from Japan''), 64 FR

30574 (June 8, 1999). Moreover, these data do not permit the Department

to ascertain the import volumes for any individual company that failed

to provide verifiable information. As a result, in accordance with

section 776(b) of the Act, we have used an adverse inference in

applying facts available, and determine that there were massive imports

from NSC, KSC, Kobe, and Nisshin during a relatively short period. See,

e.g., Notice of Final Determination of Sales at Less Than Fair Value:

Collated Roofing Nails from Taiwan (``Roofing Nails from Taiwan''), 62

FR 51427 (October 1, 1997) and Notice of Final Determination of Sales

at Less Than Fair Value and Final Affirmative Finding of Critical

Circumstances: Elastic Rubber Tape from India (``Elastic Rubber Tape

from India''), 64 FR 19123 (April 19, 1999). Because all of the

necessary criteria have been met, in accordance with section 733(e)(1)

of the Act, the Department preliminarily finds that critical

circumstances exist with respect to cold-rolled steel products imported

from NSC, KSC, Kobe, and Nisshin.

With respect to Thailand, we were able to determine that the U.S.

Customs data on imports of cold-rolled steel products from Thailand

covers HTS categories that include only subject merchandise. Based on

our analysis of these statistics and other information on the record,

we determined that massive imports of subject merchandise from TCRSSC/

Sahaviriya did not occur over the comparison period (three months

following the filing of the petition). Because the criterion necessary

to find critical circumstances, in accordance with section 733(e)(1) of

the Act, has not been met, the Department preliminarily finds that

critical circumstances do not exist for imports of cold-rolled steel

products from Thailand imported from TCRSSC/Sahaviriya.

It is the Department's normal practice to conduct its critical

circumstances analysis of companies in the ``all others'' group based

on the experience of investigated companies. See Notice of Final

Determination of Sales at Less Than Fair Value: Certain Steel Concrete

Reinforcing Bars from Turkey (``Rebars from Turkey''), 62 FR 9737, 9741

(March 4, 1997) (the Department found that critical circumstances

existed for the majority of the companies investigated, and therefore

concluded that critical circumstances also existed for companies

covered by the ``all others'' rate). However, the Department does not

automatically extend an affirmative critical circumstances

determination to companies covered by the ``all others'' rate. See

Stainless Steel from Japan. Instead, the Department considers the

traditional critical circumstances criteria with respect to the

companies covered by the ``all others'' rate.

Consistent with Stainless Steel from Japan, the Department has, in

this case, applied the traditional critical circumstances criteria to

the ``all others'' category for the antidumping investigations of cold

rolled steel from Japan and Thailand. First, the dumping margins for

the ``all others'' categories, 39.28 percent for Japan and 67.97

percent for Thailand (see Suspension of Liquidation, below), exceed the

25 percent threshold necessary to impute knowledge of dumping. Second,

based on the ITC's preliminary material injury determination, we also

find that importers knew or should have known that there would be

material injury from sales of the dumped merchandise by respondents

other than NSC, KSC, Kobe, Nisshin and TCRSSC/ Sahaviriya.

However, the Department has not found that there are massive

imports for the ``all others'' companies in the Japan and Thailand

investigations. First, we have not used adverse facts available

concerning massive imports. Unlike the mandatory respondents and other

companies that refused to provide information upon request at the

outset of the case, the ``all others'' companies have not failed to act

to the best of their ability. The Department does not use adverse

inferences with respect to firms whose individual data have not been

analyzed due to the Department's own administrative constraints, as is

the case in the Japan proceeding.\2\ See, e.g., Notice of Preliminary

Critical Circumstances Determination: Honey from the People's Republic

of China, 60 FR 29824, (June 6, 1995)). Second, there is no evidence of

massive imports from ``all others'' companies in the Japan and Thailand

cases.

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

\2\ As far as the Department has been able to determine, there

was only a single producer/exporter of subject merchandise from

Thailand during the POI.

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

While we normally rely on our findings for the selected mandatory

respondents, in the Japan case our determinations with respect to all

of the mandatory respondents were based on adverse facts available.

Therefore, we have not used these findings as a basis for our

determination with respect to all other companies. Further, in

accordance with Notice of Final Determination of Sales at Less Than

Fair Value: Hot-Rolled Flat-Rolled Carbon-Quality Steel Products from

Japan, 64 FR 24239 (May 6, 1999), the Department considered whether

U.S. Customs data on imports of cold rolled steel products from Japan

[[Page 60417]]

could be used to make a determination regarding the ``all others''

category. In the case of Japan, however, these statistics cover

numerous HTS categories that include merchandise other than subject

merchandise. Therefore, we cannot rely on these data in determining if

there were massive imports for the ``all others'' category for Japan.

See Stainless Steel from Japan. The Department does not have any other

data indicating massive imports from the companies in question.

Therefore, the Department does not find massive imports with regard to

the ``all others'' category in the Japan case.

In the case of Thailand, we determined that there were not massive

imports from the one mandatory respondent. Although we made this

determination on the basis of the facts available, we did not use an

adverse inference. Therefore, we have considered this as evidence of no

massive imports from all other companies. Further, we were able to

analyze the U.S. Customs data on imports of cold rolled steel products

from Thailand because these statistics did not include HTS categories

covering merchandise other than subject merchandise. However, our

analysis showed that massive imports did not occur during the

``relatively short period''. As a result, the Department does not find

massive imports in regard to the ``all others'' categories in the

Thailand case.

Because the massive imports criterion necessary to find critical

circumstances has not been met with respect to firms other than NSC,

KSC, Kobe, and Nisshin, the Department preliminarily finds that

critical circumstances do not exist for the ``all others'' category in

the Japan and Thailand investigations.

Suspension of Liquidation

In accordance with section 733(d) of the Act, we are directing the

U.S. Customs Service to suspend liquidation of all entries of cold-

rolled steel products exported from Japan by KSC, NSC, Kobe and Nisshin

that are entered, or withdrawn from warehouse, for consumption on or

after the date which is 90 days prior to the date of publication of

this notice in the Federal Register. For entries of cold-rolled steel

products from Argentina and Thailand, and merchandise exported by all

other companies in Japan, we are directing the U.S. Customs Service to

suspend liquidation of those entries that are entered, or withdrawn

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

this notice in the Federal Register. We are also instructing the

Customs Service to require a cash deposit or the posting of a bond

equal to the dumping margin, as indicated in the chart below. These

instructions suspending liquidation will remain in effect until further

notice.

The dumping margins are provided below.

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

Margin

Manufacturer/exporter (percent)

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

Argentina:

Siderar Limited........................................ 24.53

All Others............................................. 24.53

Japan:

Nippon Steel Corporation............................... 53.04

Kawasaki Steel Corporation............................. 53.04

Kobe Steel, Ltd........................................ 53.04

Nisshin Steel Co., Ltd................................. 53.04

All Others............................................. 39.28

Thailand:

TCRSSC/Sahaviriya...................................... 80.67

All Others............................................. 67.97

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

ITC Notification

In accordance with section 733(f) of the Act, we have notified the

ITC of our determinations. If our final antidumping determinations are

affirmative, the ITC will determine whether these imports are

materially injuring, or threaten material injury to, the U.S. industry.

The deadline for that ITC determination would be the later of 120 days

after the date of these preliminary determinations or 45 days after the

date of our final determinations.

Public Comment

For the investigations of cold-rolled steel products from

Argentina, Japan and Thailand, case briefs must be submitted no later

than 50 days after the publication of this notice in the Federal

deadline for submission of case briefs. A list of authorities used, a

table of contents, and an executive summary of issues should accompany

any briefs submitted to the Department. Executive summaries should be

limited to five pages total, including footnotes.

Section 774 of the Act provides that the Department will hold a

hearing to afford interested parties an opportunity to comment on

arguments raised in case or rebuttal briefs, provided that such a

hearing is requested by any interested party. If a request for a

hearing is made in an investigation, the hearing will tentatively be

held two days after the deadline for submission of the rebuttal briefs,

at the U.S. Department of Commerce, 14th Street and Constitution

Avenue, NW, Washington, DC 20230. In the event that the Department

receives requests for hearings from parties to several cold-rolled

cases, the Department may schedule a single hearing to encompass all

those cases. Parties should confirm by telephone the time, date, and

place of the hearing 48 hours before the scheduled time.

Interested parties who wish to request a hearing, or to participate

if one is requested, must submit a written request within 30 days of

the publication of this notice. Requests should specify the number of

participants and provide a list of the issues to be discussed. Oral

presentations will be limited to issues raised in the briefs.

If these investigations proceed normally, we will make our final

determinations in the investigations of cold-rolled steel products from

Argentina, Japan and Thailand no later than 75 days after the date of

this preliminary determination.

These determinations are published pursuant to sections 733(d) and

777(i)(1) of the Act.

Dated: November 1, 1999.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

[FR Doc. 99-29064 Filed 11-4-99; 8:45 am]

BILLING CODE 3510-DS-P

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.