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

DEPARTMENT OF COMMERCE

International Trade Administration

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

Certain Hot-Rolled Lead and Bismuth Carbon Steel Products From

the United Kingdom: Final Results of Changed-Circumstances Antidumping

and Countervailing Duty Administrative Reviews

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of final results of changed-circumstances antidumping

and countervailing duty administrative reviews.

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SUMMARY: On October 5, 1999, the Department of Commerce published a

notice of initiation and preliminary results of changed-circumstances

antidumping and countervailing duty administrative reviews of the

antidumping and countervailing duty orders on hot-rolled lead and

bismuth carbon steel products from the United Kingdom, in which we

preliminarily determined that Niagara LaSalle (UK) Limited is the

successor-in-interest to Glynwed Metals Processing Limited for purposes

of determining antidumping and countervailing duty liability. We are

now affirming our preliminary results.

EFFECTIVE DATE: November 30, 1999.

FOR FURTHER INFORMATION CONTACT: Rebecca Trainor or Kate Johnson

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

Enforcement, Import Administration, International Trade Administration,

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

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

(202) 482-3208, respectively.

SUPPLEMENTARY INFORMATION:

The Applicable Statute

Unless otherwise indicated, all citations to the Tariff Act of

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

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

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

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

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

(1998).

Background

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

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

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

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

companion countervailing duty order (58 FR 15327).

On August 18, 1999, Niagara LaSalle (UK) Limited (Niagara)

submitted a letter stating that it is the successor-in-interest to

Glynwed Metals Processing Limited (Glynwed), and requested that the

Department conduct a changed-circumstances review to determine whether

Niagara should receive the same antidumping and countervailing duty

treatment as is accorded Glynwed with respect to the subject

merchandise. Niagara requested that the result of the Department's

changed-circumstances review be retroactive to May 21, 1999, the date

of its acquisition of Glynwed.

On October 5, 1999, we published a notice of initiation and

preliminary results of changed-circumstances antidumping and

countervailing duty administrative reviews (64 FR 53994 ) in which we

preliminarily found that Niagara is the successor-in-interest to

Glynwed for purposes of determining antidumping and countervailing duty

liability. We stated that this finding would be effective as of the

publication date of our final results for the purposes of antidumping

duties, and as of May 21, 1999 for purposes of countervailing duties,

if affirmed in our final results. We received comments from Niagara on

October 15, 1999.

Scope of the Review

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

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

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

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

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

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

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

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

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

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

in this review are provided for under subheadings 7213.20.00.00 and

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

enter the United States under the following HTSUS subheadings:

7213.31.30.00; 7213.31.60.00; 7213.39.00.30; 7213.39.00.60;

7213.39.00.90; 7213.91.30.00; 7213.91.45.00; 7213.91.60.00; 7213.99.00;

7214.40.00.10, 7214.40.00.30, 7214.40.00.50; 7214.50.00.10;

7214.50.00.30, 7214.50.00.50; 7214.60.00.10; 7214.60.00.30;

7214.60.00.50; 7214.91.00; 7214.99.00; 7228.30.80.00; and

7228.30.80.50. HTSUS subheadings are provided for convenience and

customs purposes. The written description of the scope of this

proceeding is dispositive.

Interested Party Comments

Niagara argues that, while the Department properly recognized that

Niagara's antidumping deposit rate as of May 21, 1999, should be that

of the former Glynwed, the preliminary notice

[[Page 66881]]

fails to apply the correct rate as of that date. Niagara argues that

the Department's determination to apply Glynwed's antidumping duty

deposit rate to Niagara prospectively from the publication date of the

final results, is contrary to the Department's finding that Niagara is

the successor-in-interest to Glynwed as of May 21, 1999, and

inconsistent with the retroactive application of Glynwed's

countervailing duty deposit rate to Niagara. Niagara states that this

failure to retroactively apply Glynwed's antidumping deposit rate of

7.69 percent to Niagara unjustly subjects it to the higher all-others

rate of 25.82 percent for the entire period from May 21, 1999, to the

date on which the final results in this case are published.

Finally, Niagara asserts that it has no practical means of

obtaining a refund of the higher deposits, since the costs of

undertaking an administrative review would exceed the value of the

excess deposits it was erroneously required to pay.

Department's Position

We disagree with Niagara that it has been treated inconsistently

with respect to the applicable cash deposit rates under the antidumping

and countervailing duty orders. The basis for Niagara's apparent

misunderstanding is that it fails to recognize that Glenwyd, the

predecessor company to Niagara, was excluded, ab initio, from the

countervailing duty order, but has always been subject to the

antidumping duty order. As such, Glenwyd, and now its successor-in-

interest Niagara, was never liable for any estimated cash deposits

under the countervailing duty order. Thus, with the Department's

determination that Niagara is the successor-in-interest to Glenwyd,

Niagara (like Glenwyd) is not now, and never was subject to the

countervailing duty order. Therefore, with respect to the

countervailing duty order, it is appropriate to apply the changed

circumstances-determination retroactively to May 21, 1999, the date

Glenwyd became Niagara. (This is analogous to revocation, which may

also apply retroactively. See, e.g., Certain Fresh Cut Flowers From

Ecuador: Final Results of Changed Circumstances Antidumping Duty

Administrative Review; Revocation of Order; Termination of

Administrative Reviews, 64 FR 56327, Oct. 9, 1999.)

However, with respect to the antidumping duty order, it is

appropriate to change the estimated cash deposit rate for Niagara only

as of the effective date of the Department's final changed-

circumstances determination. Because Glenwyd was always subject to the

antidumping duty order, it was always potentially liable for estimated

cash deposits. Further, any new company under the antidumping duty

order in question, even if it were subsequently determined to be the

successor-in-interest to an existing company, would also be subject to

estimated cash deposits.

In this instance, subject merchandise was entered under the name of

Niagara, a company not heretofore assigned its own rate. Accordingly,

its entries were properly subject to the all-others cash deposit rate

at the time of entry. The all-others rate is by its very nature a

prospective rate in that it is simply an estimate of the amount of

duties to be paid by importers on future entries. It is not the

assessment rate. Furthermore, in accordance with section 751(a)(2)(C)

of the Act, a company's estimated cash deposit rate is only changed as

the result of an administrative review. Thus, until the Department

makes a final determination that a company subject to this antidumping

duty order should be assigned a different cash deposit rate, the cash

deposit rate assigned to its entries is the rate in effect at the time

of entry.

Accordingly, in this instance, it is appropriate that the

applicable cash deposit rate for Niagara's entries prior to these final

results is the all-others cash deposit rate. That rate will, of course,

be changed prospectively to Glenwyd's previous rate upon the effective

date of this notice because the Department has determined that Niagara

is, in fact, the successor-in-interest to Glenwyd. However, because

cash deposits are only estimates of the amount of antidumping duties

that will be due, changes in cash deposit rates are not made

retroactive. Any given cash deposit rate may, ultimately, be too high

or too low. If Niagara believes that the deposits paid exceed the

actual amount of dumping, it is entitled to request a review of those

entries to determine the proper assessment rate and receive a refund of

any excess deposits. This is the normal operation of our retrospective

system.

Final Results

We determine that Niagara is the successor-in-interest to Glynwed

for purposes of determining antidumping and countervailing duty

liability. Because Glynwed is excluded from the countervailing duty

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

regard to countervailing duties, all shipments of the subject

merchandise produced and sold by Niagara (formerly Glynwed) entered, or

withdrawn from warehouse, for consumption on or after May 21, 1999, the

date of Niagara's acquisition of Glynwed. With regard to antidumping

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

Niagara (formerly Glynwed) for all shipments of the subject merchandise

entered, or withdrawn from warehouse, for consumption on or after the

publication date of these final results of this changed-circumstances

review.

We are issuing and publishing this determination and notice in

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

351.216 of the Department's regulations.

Dated: November 19, 1999.

Joseph A. Spetrini,

Acting Assistant Secretary for Import Administration.

[FR Doc. 99-31098 Filed 11-29-99; 8:45 am]

BILLING CODE 3510-DS-P