[Federal Register Volume 73, Number 175 (Tuesday, September 9, 2008)]
[Notices]
[Pages 52294-52296]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-20925]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[A-533-810]


Stainless Steel Bar From India: Notice of Final Results of 
Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On March 7, 2008, the Department of Commerce (``Department'') 
published the preliminary results of the administrative review of the 
antidumping duty order on stainless steel bar (``SSB'') from India. 
This review covers sales of SSB from India with respect to two 
producers/exporters: D.H. Exports Pvt. Ltd. (``DHE'') and Sunflag Iron 
& Steel Co. Ltd. (``Sunflag''), during the period February 1, 2006, 
through January 31, 2007.
    We have noted the changes made since the preliminary results in the 
``Changes Since the Preliminary Results'' section, below. The final 
results are listed below in the ``Final Results of Review'' section.

DATES: Effective Date: September 9, 2008.

FOR FURTHER INFORMATION CONTACT: Devta Ohri or Scott Holland, AD/CVD 
Operations, Office 1, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone (202) 482-
3853 and (202) 482-1279, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On February 21, 1995, the Department published in the Federal 
Register the antidumping duty order on SSB from India. See Antidumping 
Duty Orders: Stainless Steel Bar From Brazil, India and Japan, 60 FR 
9661 (February 21, 1995). On February 2, 2007, the Department published 
a notice in the Federal Register providing an opportunity for 
interested parties to request an administrative review of this order 
for the period February 1, 2006, through January 31, 2007. See 
Antidumping or Countervailing Duty Order, Finding, or Suspended 
Investigation; Opportunity To Request Administrative Review, 72 FR 5007 
(February 2, 2007). The Department published in the Federal Register 
the preliminary results of this review on March 7, 2008. See Stainless 
Steel Bar From India: Notice of Preliminary Results and Partial 
Rescission of Antidumping Duty Administrative Review, 73 FR 12382 
(March 7, 2008) (``Preliminary Results''). On March 20, 2008, the 
Department published a correction notice to the Preliminary Results. 
See Stainless Steel Bar From India: Notice of Preliminary Results and 
Partial Rescission of Antidumping Duty Administrative Review, 73 FR 
15049 (March 20, 2008).
    Following the Preliminary Results, the Department issued two 
supplemental questionnaires to both DHE and Sunflag. The Department 
received DHE's responses on March 20, 2008, and April 2, 2008. The 
Department received Sunflag's responses on April 2, 2008, and July 7, 
2008. On June 24, 2008, the Department published a notice extending the 
deadline for these final results to September 3, 2008. See Stainless 
Steel Bar From India: Notice of Extension of Time Limit for the Final 
Results of the 2006-2007 Antidumping Duty Administrative Review, 73 FR 
35639 (June 24, 2008).
    We invited interested parties to comment on the Preliminary 
Results. On July 16, 2008, the Petitioners \1\ and DHE submitted case 
briefs.\2\ In its case brief, DHE requested that the Department 
consider the purchase order date as the U.S. date of sale, rather than 
the invoice date. To support this request, DHE provided the Department 
with unsolicited new information in the form of a revised U.S. sales 
database containing purchase order dates for its U.S. sales. On July 
17, 2008, the Petitioners filed a rebuttal brief. The Petitioners 
requested that the Department reject and return to DHE the new factual 
information submitted in its case brief. According to the Petitioners, 
the Department did not request this new date of sale information and 
the deadline for the submission of new factual information had passed, 
as per 19 CFR 351.301(b)(2). On July 17, 2008, the Department rejected 
DHE's case brief because it contained unsolicited new factual 
information. See July 17, 2008, Letter from Brandon Farlander to DHE, 
which is on file in the Central Records Unit (``CRU'') in room 1117 of 
the main Department building. The Department instructed DHE to re-file 
its case brief excluding the unsolicited new factual information 
relating to purchase order date. DHE submitted its revised case brief, 
excluding the unsolicited new factual information, on July 21, 2008.
---------------------------------------------------------------------------

    \1\ Carpenter Technology Corporation, Valbruna Slater Stainless, 
Inc., Electralloy Corporation, a Division of G.O. Carlson, Inc.
    \2\ DHE incorrectly called this submission its ``rebuttal 
brief.''
---------------------------------------------------------------------------

    On July 22, 2008, Sunflag filed a rebuttal brief. On August 8, 
2008, the Department rejected Sunflag's July 22, 2008 (dated July 19, 
2008) rebuttal brief because it contained unsolicited new factual 
information relating to certain rent paid to affiliate Ridge Farm 
Developers. See August 8, 2008, Letter from Brandon Farlander to 
Sunflag, which is on file in the CRU in room 1117 of the main 
Department building. The Department instructed Sunflag to re-file its 
rebuttal brief excluding the unsolicited new factual information. On 
August 18, 2008, the Department received Sunflag's revised rebuttal 
brief, excluding the unsolicited new factual information.

Scope of the Order

    Imports covered by the order are shipments of SSB. SSB means 
articles of stainless steel in straight lengths that have been either 
hot-rolled, forged, turned, cold-drawn, cold-rolled or otherwise cold-
finished, or ground, having a uniform solid cross-section along their 
whole length in the shape of circles, segments of circles, ovals, 
rectangles (including squares), triangles, hexagons, octagons, or other 
convex polygons. SSB includes cold-finished

[[Page 52295]]

SSBs that are turned or ground in straight lengths, whether produced 
from hot-rolled bar or from straightened and cut rod or wire, and 
reinforcing bars that have indentations, ribs, grooves, or other 
deformations produced during the rolling process.
    Except as specified above, the term does not include stainless 
steel semi-finished products, cut-to-length flat-rolled products (i.e., 
cut-to-length rolled products which if less than 4.75 mm in thickness 
have a width measuring at least 10 times the thickness, or if 4.75 mm 
or more in thickness have a width which exceeds 150 mm and measures at 
least twice the thickness), wire (i.e., cold-formed products in coils, 
of any uniform solid cross-section along their whole length, which do 
not conform to the definition of flat-rolled products), and angles, 
shapes, and sections.
    The SSB subject to these reviews is currently classifiable under 
subheadings 7222.11.00.05, 7222.11.00.50, 7222.19.00.05, 7222.19.00.50, 
7222.20.00.05, 7222.20.00.45, 7222.20.00.75, and 7222.30.00.00 of the 
Harmonized Tariff Schedule of the United States (``HTSUS''). Although 
the HTSUS subheadings are provided for convenience and customs 
purposes, our written description of the scope of the order is 
dispositive.
    On May 23, 2005, the Department issued a final scope ruling that 
SSB manufactured in the United Arab Emirates out of stainless steel 
wire rod from India is not subject to the scope of this order. See 
Memorandum from Team to Barbara E. Tillman, ``Antidumping Duty Orders 
on Stainless Steel Bar from India and Stainless Steel Wire Rod from 
India: Final Scope Ruling,'' dated May 23, 2005, which is on file in 
the Central Records Unit in room 1117 of the main Department building. 
See also Notice of Scope Rulings, 70 FR 55110 (September 20, 2005).

Period of Review

    The period of review (``POR'') is February 1, 2006, through January 
31, 2007.

Applicable Statute

    Unless otherwise indicated, all statutory citations are to the 
Tariff Act of 1930, as amended (``the Act''). In addition, all 
references to the Department of Commerce's regulations are to 19 CFR 
Part 351.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this review are addressed in the September 3, 2008, ``Issues and 
Decision Memorandum for 2006-2007 Antidumping Duty Administrative 
Review of Stainless Steel Bar from India'' (``Decision Memorandum''), 
which is hereby adopted by this notice. Attached to this notice as an 
appendix is a list of the issues which parties have raised and to which 
we have responded in the Decision Memorandum. Parties can find a 
complete discussion of all issues raised in this review and the 
corresponding recommendations in this public memorandum, which is on 
file in the Department's CRU, which is located in room 1117 of the main 
Department building. In addition, a complete version of the Decision 
Memorandum can be accessed directly on the Web at http://ia.ita.doc.gov/frn. The paper copy and electronic version of the 
Decision Memorandum are identical in content.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made 
adjustments to the Preliminary Results calculations for DHE and 
Sunflag. Brief descriptions of the company-specific changes are 
discussed below.

A. DHE

    On March 27, 2008, the Department requested that DHE report the 
per-unit entered value of subject merchandise that entered into the 
United States during the POR. DHE submitted this information on April 
2, 2008. However, DHE calculated the per-unit entered value by dividing 
the total entered values for all shipments of subject merchandise 
during the POR by the sum of the total quantities entered during the 
POR, i.e., a simple average of all shipments.
    For the final results, we have re-calculated the per-unit entered 
value based upon a ratio of the invoice specific, total entered value, 
to the total quantity that is reflected on the U.S. Customs Form 7501 
documentation supplied by DHE, rather than an average of all shipments. 
See Final Results Calculation Memorandum for D.H. Exports Pvt. Ltd., 
dated September 3, 2008.

B. Sunflag

    For the final results, we are adjusting Sunflag's general and 
administrative expense ratio upward to account for rent paid to 
affiliate Ridge Farm Developers for leased office space. See Final 
Results Calculation Memorandum for Sunflag Iron & Steel Co. Ltd., dated 
September 3, 2008 (``Sunflag Final Calculation Memorandum''). We have 
also increased Sunflag's cost of production by including interest on an 
unsecured interest-free loan from an affiliate. See Sunflag Final 
Calculation Memorandum.

Results of the COP Test

    Pursuant to section 773(b)(2)(C) of the Act, where less than 20 
percent of a respondent's sales of a given product were at prices less 
than the cost of production (``COP''), we did not disregard any below-
cost sales of that product because we determined that the below-cost 
sales were not made in substantial quantities. Where 20 percent or more 
of a respondent's sales of a given product during the POR were at 
prices less than the COP, we determined such sales of that model were 
made in substantial quantities within an extended period of time in 
accordance with section 773(b)(2)(B) and (C) of the Act. Because we 
compared prices to the POR-average COP, we also determined that such 
sales were not made at prices which would permit recovery of all costs 
within a reasonable period of time, in accordance with section 
773(b)(2)(D) of the Act. In such cases, for both DHE and Sunflag, we 
disregarded these below-cost sales of a given product and used the 
remaining sales as the basis for determining NV, in accordance with 
section 773(b)(1) of the Act.

Final Results of Review

    As a final result of our review, we find that the following 
weighted-average percentage margins exist for the period February 1, 
2006, through January 31, 2007:

------------------------------------------------------------------------
                                                             Weighted-
                  Exporter/Manufacturer                   average margin
                                                            percentage
------------------------------------------------------------------------
D.H. Exports Pvt. Ltd...................................           10.21
Sunflag Iron & Steel Co. Ltd............................            6.08
------------------------------------------------------------------------

Assessment Rates

    The Department shall determine, and U.S. Customs and Border 
Protection (``CBP'') shall assess, antidumping duties on all 
appropriate entries. For DHE and Sunflag, the Department will issue 
appropriate assessment instructions directly to CBP 15 days after 
publication of the final results of review.
    Pursuant to 19 CFR 351.212(b)(1), for all sales made by respondents 
for which they have reported the importer of record and the entered 
value of the U.S. sales, we have calculated importer-specific 
assessment rates based on the ratio of the total amount of antidumping 
duties calculated for the examined sales to the total entered value of 
those sales. We have used Sunflag's reported entered values for the 
final results. However, as noted above in the

[[Page 52296]]

``Changes Since the Preliminary Results'' section, we have adjusted 
DHE's reported entered values.
    To determine whether the duty assessment rates were de minimis, in 
accordance with the requirement set forth in 19 CFR 351.106(c)(2), we 
calculated importer-specific ad valorem rates based on the Sunflag's 
entered values and DHE's adjusted entered values. Where the assessment 
rate is above de minimis, we will instruct CBP to assess duties on all 
entries of subject merchandise by that importer. Pursuant to 19 CFR 
351.106(c)(2), we will instruct CBP to liquidate without regard to 
antidumping duties any entries for which the assessment rate is de 
minimis (i.e., less than 0.50 percent).
    The Department clarified its ``automatic assessment'' regulation on 
May 6, 2003. See Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003). This 
clarification applies to entries of subject merchandise during the POR 
produced by the respondent for which it did not know its merchandise 
was destined for the United States. In such instances, we will instruct 
CBP to liquidate unreviewed entries at the all-others rate if there is 
no rate for the intermediate company(ies) involved in the transaction. 
For a full discussion of this clarification, see Antidumping and 
Countervailing Duty Proceedings: Assessment of Antidumping Duties, 68 
FR 23954 (May 6, 2003).

Cash Deposit Requirements

    The following antidumping duty deposits are effective for all 
shipments of SSB from India entered, or withdrawn from warehouse, for 
consumption, effective on or after the publication date of these final 
results of administrative review, as provided by section 751(a)(1) of 
the Act: (1) The cash deposit rates for the reviewed company will be 
the rate listed above (except no cash deposit will be required if a 
company's weighted-average margin is de minimis); (2) for merchandise 
exported by manufacturers or exporters not covered in this review but 
covered in the original less-than-fair-value investigation or a 
previous review, the cash deposit rate will continue to be the most 
recent rate published in the final determination or final results for 
which the manufacturer or exporter received an individual rate; (3) if 
the exporter is not a firm covered in this review, the previous review, 
or the original investigation, but the manufacturer is, the cash 
deposit rate will be the rate established for the most recent period 
for the manufacturer of the merchandise; and (4) if neither the 
exporter nor the manufacturer is a firm covered in this or any previous 
reviews, the cash deposit rate will be 12.45 percent, the ``all 
others'' rate established in the less than fair value investigation. 
See Stainless Steel Bar from India; Final Determination of Sales at 
Less Than Fair Value, 59 FR 66915 (December 28, 1994). These cash 
deposit requirements shall remain in effect until publication of the 
final results of the next administrative review.

Notification to Importers

    This notice serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of doubled antidumping duties.

Notification Regarding Administrative Protective Orders

    This notice also serves as a reminder to parties subject to 
administrative protective orders (``APOs'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305, which continues 
to govern business proprietary information in this segment of the 
proceeding. Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation which is subject to sanction.
    We are issuing and publishing these final results of review in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: September 3, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix I

List of Comments in the Decision Memorandum

Comments Relating to D.H. Exports Pvt. Ltd.

Comment 1: Alleged Missing Attachments
Comment 2: Direct Material Costs--Use of Pre-POR Costs

Comments Relating to Sunflag Iron & Steel Co. Ltd.

Comment 3: Sunflag's Ferrochrome Purchases from Affiliate Navbharat 
Ventures
Comment 4: Rent Sunflag Paid to Affiliate, Ridge Farm Developers, 
for New Delhi Office
Comment 5: Rent Sunflag Paid to Affiliate, Haryana Television, for 
Faridabad Office
Comment 6: Adjustment to Interest on Working Capital Loan
Comment 7: Imputed Interest on Unsecured Interest-Free Loan from 
Affiliate Sunflag Ltd. UK
Comment 8: Home Market Imputed Credit Expenses
[FR Doc. E8-20925 Filed 9-8-08; 8:45 am]
BILLING CODE 3510-DS-P