Notice of Preliminary Determination of Sales at Less Than Fair Value: Certain Cold-Rolled Flat-Rolled Carbon-Quality Steel Products From Venezuela

DEPARTMENT OF COMMERCE

International Trade Administration

A-307-815

Notice of Preliminary Determination of Sales at Less Than Fair

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

From Venezuela

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: November 15, 1999.

FOR FURTHER INFORMATION CONTACT: Maureen McPhillips or Linda Ludwig,

Import Administration, International Trade Administration, U.S.

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

Washington, DC, 20230; telephone: (202) 482-0193 or (202) 482-3833,

respectively.

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

(Department) regulations are to the regulations at 19 CFR Part 351,

(April, 1999).

Preliminary Determination

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

quality steel products (cold-rolled steel products) from Venezuela are

being, 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

margin of sales at LTFV is shown in the ``Suspension of Liquidation''

section of this notice.

Case History

On June 21, 1999, the Department initiated antidumping duty

investigations of imports of 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. See Notice of

Initiation of Antidumping Duty Investigations: Certain Cold-Rolled

Flat-Rolled Carbon-Quality Steel Products, 64 FR 34194 (June 25, 1999)

(Initiation Notice). Since the initiation of this investigation, the

following events have occurred:

On June 21, 1999, the Department invited interested parties to

submit comments on the proposed model match criteria. On June 28, 1999,

Bethlehem Steel Corporation, Gulf States Steel, Inc., Ispat Inland,

Inc., LTV Steel Company, Inc., National Steel Corporation, Steel

Dynamics, Inc., U.S. Steel Group, a unit of USX Corporation, Weirton

Steel Corporation, and United Steelworkers of America (collectively,

``petitioners'') stated that we should revise the category

``annealing'' to account more precisely for important differences in

processing, pricing, functions, and customer expectations. In addition,

petitioners recommended that the Department include an additional

category under ``QUALITY,'' for motor lamination steels. On June 22,

1999, the Department issued Section A of the antidumping duty

questionnaire to Sidor, the only known exporter of subject merchandise

in Venezuela. On July 9, 1999, the Department issued Sections B through

E to Sidor. On July 16, 1999, the United States International Trade

Commission (ITC) notified the Department of its affirmative preliminary

injury determination in this case. The Department received Sidor's

response to Section A of the questionnaire on July 20, 1999.

Petitioners filed comments on Sidor's response to Section A on August

3, 1999. The Department issued a supplemental questionnaire for Section

A on August 24, 1999 in order to clarify and/or correct the information

and data submitted in the original questionnaire. Sidor failed to

respond to Sections B through D of the questionnaire and the

Department's supplemental questionnaire for Section A.

The Department set aside a period for all interested parties to

raise issues regarding product coverage. From July through October

1999, the Department

[[Page 61827]]

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, November 1,

1999 (Scope Memorandum) 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.

Scope of Investigation

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

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

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

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

Mechanical Properties

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

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

Tensile Strength....................... 162 Kgf/mm \2\.

Hardness............................... 475 Vickers

hardness number.

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

[[Page 61828]]

Physical Properties

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

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

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

0.04

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

0.05

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

Compressive Stress: 10 to 40 Kgf/mm \2\

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.

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.

[[Page 61829]]

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:

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 0.023 0.03 0.08 0.02 0.08 ..... 0.008

(Aiming (Aiming (Aiming

0.018 0.05) 0.005)

Max.)

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

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 0.023 0.03 0.08 0.02 0.08 ..... 0.008

(Aiming (Aiming (Aiming

0.018 0.05) 0.005)

Max.)

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

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:

[[Page 61830]]

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

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

Other properties:

Carbide: fully spheroidized having > 80% of carbides, which are

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.

Period of Investigation

The period of this investigation (POI) is April 1, 1998 through

March 31, 1999.

Facts Available

Section 776(a)(2) of the Act provides that if an interested party

withholds information that has been requested by the Department, fails

to provide such information in a timely manner, or in the form

requested, significantly impedes a proceeding under the antidumping

statute, or provides information that cannot be verified, the

Department shall, subject to subsections 782(c)(1) and (e) of the Act,

use facts otherwise available in reaching the applicable determination.

Because Sidor failed to provide Section B (home market sales), Section

C (U.S. sales), and Section D (cost of production) information, we must

base its margin entirely on the facts otherwise available.

Sidor submitted a response to Section A of the Department's

questionnaire, but did not respond to Section B through D of the

questionnaire in a timely manner. We note that although Sidor requested

additional time to respond to these sections of our questionnaire, this

request was denied because it was made after the deadline for response

had already passed. See ``Letter to the Secretary of Commerce from

Counsel for Sidor'', August 31, 1999 and ``Letter to Counsel for Sidor

from the Department of Commerce'', September 3, 1999. In addition,

Sidor failed to respond to the Department's supplemental Section A

questionnaire of August 24, 1999. Because Sidor failed to respond to

the required sections of the antidumping duty questionnaire, the

Department finds the company has significantly impeded this

investigation. Consequently, under sections 776(a)(2)(B) and (C) of the

Act, the Department must use facts otherwise available in making its

determination.

In selecting from among the facts otherwise available, section

776(b) of the Act authorizes the Department to use an adverse inference

if the Department finds that a party has failed to cooperate by not

acting to the best of its ability to comply with requests for

information. See also Statement of Administrative Action (SAA)

accompanying the URAA, H.R. Rep. No. 316, 103d Cong, 2d Sess. at 870

(1994). Such adverse inference may include reliance on information

derived from the petition. To determine whether the respondent

``cooperated'' by ``acting to the best of its ability'' under section

776(b), the Department considers, among other facts, the accuracy and

completeness of submitted information and whether the respondent has

hindered the calculation of accurate dumping margins. See, e.g.,

Certain Welded Carbon Steel Pipes and Tubes from Thailand; Final

Results of Antidumping Duty Administrative Review, 62 FR 53808, 53819-

53820, (October 16, 1997); Brass Sheet and Strip from Germany; Final

Results of Antidumping Duty Administrative Review, 63 FR 42823-42824

(August 11, 1998).

Sidor's complete refusal to reply to the Department's requests for

home market and U.S. sales information and cost of production

information demonstrates that Sidor has failed to act to the best of

its ability in this investigation. Thus, the Department has determined

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

inference is warranted with regard to Sidor. Consistent with Department

practice in cases in which a respondent fails to cooperate to the best

of its ability by refusing to respond to entire sections of the

questionnaire, and pursuant to section 776(b)(1) of the Act, as facts

available we have applied a margin based on the highest margin alleged

in the petition. See, e.g., Notice of Final Determination of Sales at

Less Than Fair Value: Certain Steel Concrete Reinforcing Bars From

Turkey, 62 FR 9737-9738 (March 4, 1997).

Section 776(c) of the Act requires the Department to corroborate,

to the extent practicable, secondary information used as facts

available. Secondary

[[Page 61831]]

information is described in the SAA (at 870) as ``[i]nformation derived

from the petition that gave rise to the investigation or review, the

final determination concerning the subject merchandise, or any previous

review under section 751 concerning the subject merchandise.''

The SAA further provides that ``corroborate'' means simply that the

Department will satisfy itself that the secondary information to be

used has probative value. See SAA at 870. Thus, to corroborate

secondary information, to the extent practicable, the Department will

examine the reliability and relevance of the information used.

During the Department's pre-initiation analysis of the petition, we

reviewed the adequacy and accuracy of the information in the petition,

to the extent appropriate information was available for this purpose

(e.g., import statistics, foreign market research reports, and data

from U.S. producers). See Notice of Initiation and ``Import

Administration AD Investigation Initiation Checklist,'' (June 21,

1999). The estimated dumping margins of the petitioners were based on

two price quotes from trading companies for sales to unaffiliated U.S.

purchasers and import values declared to the U.S. Customs compared to

two high and low ex-factory prices obtained from market research

consultants. The Department determined the adequacy and accuracy of the

information from which the petition margin was calculated by reviewing

all of the data presented and by requesting clarification and

confirmation from petitioners and their sources as needed. See

Attachment B to the Initiation Checklist and Memorandum to the File:

Telephone Conversation with Market Research Firm Regarding the Petition

for the Imposition of Antidumping Duties (June 21, 1999). In addition,

for purposes of this preliminary determination, the Department compared

the export prices alleged by petitioners, based on price quotations

obtained from trading companies, for sales to unaffiliated first

purchasers with the average unit values of U.S. imports classified

under the appropriate HTS number during the same months as the U.S.

sales.

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

subject merchandise derived by 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, 51412 (October 1, 1997). The Department

was provided no information by the respondents or other interested

parties, and is aware of no other independent sources of information

that would enable it to corroborate home market prices further for this

preliminary determination. The implementing regulation to section 776

of the Act, at 19 CFR 351.308(d), 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.'' We note also 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. Based on the above, we find

that the estimated margins set forth in the petition have probative

value.

The All-Others Rate

The foreign manufacturer/exporter in this investigation is being

assigned a dumping margin on the basis of facts otherwise available.

Section 735(c)(5) of the Act provides that, where the dumping margins

established for all exporters and producers individually investigated

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,

including weight averaging the zero, de minimis, and the margins based

on facts available. See also SAA at 873. In this case, the margin

assigned to the only company investigated is based on adverse facts

available. Therefore, consistent with the statute and the SAA, we are

using an alternative method. As our alternative, we are basing the all

others rate on a simple average of the margins in the petition. As a

result, the all others rate is 42.93 percent.

Critical Circumstances

On June 10, 1999, the petitioners made a timely allegation that

there is a reasonable basis to believe or suspect that critical

circumstances exist with respect to imports of subject merchandise from

Venezuela. 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'' described in section

351.206(i) 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 Venezuela, we find that there is no

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. Therefore, we must look

to whether there was importer knowledge under section 733(e)(1)(A)(ii).

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 EP sales margins of 25

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

and Brake Rotors From the People's Republic of China, 62 FR 9160, 9164

(February 28, 1997). As discussed above, we have applied, as adverse

facts available for Sidor, the highest of the dumping margins presented

in the petition and corroborated by the Department. Because this margin

is in excess of 25 percent, we impute knowledge of dumping in regard to

exports by Sidor. See Stainless Steel Sheet and Strip in Coils from

Japan, 64 FR 30574 (June 8, 1999).

Moreover, 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 may look to the

[[Page 61832]]

preliminary injury determination of the ITC. See Brake and Brake Rotors

from the PRC, 62 FR at 9164. 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. See Id. The ITC has found that a reasonable

indication of present material injury exists in regard to Venezuela.

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 Sidor.

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

``relatively short period,'' the Department ordinarily bases its

analysis on import data for at least the three months preceding (the

``base period'') and following (the ``comparison period'') the filing

of the petition. See 19 CFR 351.206(i). Imports normally will be

considered massive when imports during the comparison period have

increased by 15 percent or more compared to imports during the base

period. See 19 CFR 351.206(h). However, as stated in the Department's

regulations, at section 351.206(i), if the Secretary finds that

importers, exporters, or producers had reason to believe, at some time

prior to the beginning of the proceeding, that a proceeding was likely,

then the Secretary may consider a period of not less than three months

from that earlier time.

Because Sidor did not respond fully to our antidumping

questionnaire, we must base our determination regarding massive imports

on the facts available. In this case, Sidor is the only known producer

and exporter of subject merchandise from Venezuela, and U.S. Census

data are reasonably specific to exports of subject merchandise from

Venezuela. Therefore, we have determined that it is reasonable to use

these data as facts available in this case.

In the present case, petitioners argue that importers, exporters,

or producers of cold-rolled steel had reason to believe that, based on

press reports, an antidumping proceeding was likely long before the

filing of the petition. To determine whether, prior to the filing of

the petition, there was reason to believe that a proceeding was likely,

the Department examined press reports in late 1998 regarding rising

imports and the likelihood of anti-dumping actions against imports of

cold-rolled steel to the United States. Press reports established that

by the beginning of November 1998, importers, exporters, or producers

knew or should have known that a proceeding was likely concerning cold-

rolled products from South America (see Journal of Commerce, November

4, 1998). Because Venezuela is a major South American producer of cold-

rolled steel, we find such press reports sufficient to establish that,

as of November 1998, importers, exporters or producers from Venezuela

knew or should have known that a proceeding was likely concerning cold-

rolled products from Venezuela. Thus, the Department has determined

that it is appropriate to compare imports before and after November

1998 in our examination of whether there were massive imports, rather

than compare imports before and after the date the petition was filed.

The Department compared the import volumes from January-October 1998 to

November 1998-August 1999, the maximum period for which we had reliable

data in this case, and found that U.S. Census data shows more than a

100 percent increase in imports of subject merchandise from Venezuela

during this period. Thus, U.S. Census data indicate that imports from

Venezuela, and thus imports from Sidor, the only known producer/

exporter of subject merchandise in Venezuela, were far above the

minimum level normally considered ``massive'' by the Department.

Therefore, pursuant to section 733(e) of the Act and section 351.206(h)

of the Department's regulations, we preliminarily determine that there

have been massive imports of cold-rolled steel from Sidor over a

relatively short period of time. Accordingly, consistent with

Department practice, we have determined that critical circumstances

exist for Sidor.

All Others

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). Where the dumping margins for all

investigated respondents are based entirely on adverse facts available,

however, the Department does not automatically extend an affirmative

critical circumstances determination to companies covered by the ``all

others'' rate. See Stainless Steel Sheet from Japan, 64 FR 30574 (June

8, 1999). 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 investigation of cold

rolled steel from Venezuela. First, the dumping margin for the ``all

others'' category, 42.93 percent (see Suspension of Liquidation,

below), exceeds 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 Sidor.

However, the Department, in selecting the facts available, has not

made an adverse inference that there are massive imports for the ``all

others'' category in the Venezuela investigation. Since Sidor, the

mandatory respondent, is currently the only known exporter of cold-

rolled steel in Venezuela, we have determined that the information

available indicates no massive imports for the ``all others'' category.

As a result, because the massive imports criterion necessary to find

critical circumstances has not been met with respect to firms other

than Sidor, the Department finds that critical circumstances do not

exist for the ``all others'' category in the Venezuelan investigation.

Suspension of Liquidation

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

Customs to suspend liquidation of all imports of subject merchandise

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

after the date of publication of this notice in the Federal Register.

In addition, for Sidor, we are directing U.S. Customs to suspend

liquidation of all imports of subject merchandise that are entered, or

withdrawn from warehouse, for consumption on or after the date that is

90 days prior to the date of publication of this notice. We will

instruct U.S. Customs to require a cash deposit or the posting of a

bond equal to the percentage margin, as indicated in the chart below.

These suspension-of-liquidation instructions will remain in

[[Page 61833]]

effect until further notice. The dumping margin is as follows:

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

Weighted-

average

Producer/manufacture exporter margin

(percent)

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

Sidor...................................................... 56.37

All Others................................................. 42.93

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

The all others rate, which we derived from the average of the

margins calculated in the petition, applies to all entries of subject

merchandise other than those exported by the named respondent.

ITC Notification

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

ITC of our determination. If our final determination is affirmative,

the ITC will determine whether these imports are materially injuring,

or threaten material injury, to the U.S. industry. The deadline for the

ITC determination is the later of 120 days after the date of this

preliminary determination or 45 days after the date of our final

determination.

Public Comment

Case briefs or other written comments in at least ten copies must

be submitted to the Assistant Secretary for Import Administration no

later than fifty days after the publication of this notice in the

Federal Register. Rebuttal briefs must be filed no later than fifty-

five days after the publication of this notice in the Federal Register.

A list of authorities used and an executive summary of issues should

accompany any briefs submitted to the Department. Such a summary should

be limited to five pages total, including footnotes. In accordance with

section 774 of the Act, we will hold a public hearing, if requested, to

afford interested parties an opportunity to comment on arguments raised

in case or rebuttal briefs. 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, N.W., Washington,

D.C. 20230. 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 to the Assistant

Secretary for Import Administration, U.S. Department of Commerce, Room

1870, within 30 days of the publication of this notice. Requests should

contain: (1) The party's name, address, and telephone number; (2) the

number of participants; and (3) a list of the issues to be discussed.

Oral presentations will be limited to issues raised in the briefs.

If this investigation proceeds normally, we will make our final

determination within 75 days after the date of this preliminary

determination.

This determination is issued and published in accordance with

sections 733(d ) and 777(i)(1) of the Act.

Dated: November 1, 1999.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

[FR Doc. 99-29762 Filed 11-12-99; 8:45 am]

BILLING CODE 3510-DS-P