[Federal Register Volume 74, Number 184 (Thursday, September 24, 2009)]
[Notices]
[Pages 48716-48719]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-23112]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-836]
Certain Cut-to-Length Carbon-Quality Steel Plate From the
Republic of Korea: Preliminary Results of Antidumping Duty
Administrative Review and Intent To Rescind Administrative Review in
Part
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On March 24, 2009, in response to a request from interested
parties, the Department of Commerce (the Department) published a notice
of initiation of the administrative review of the antidumping duty
order on certain cut-to-length carbon-quality steel plate (CTL plate)
from the Republic of Korea (Korea). The review covers four
manufacturers/exporters. The period of review is February 1, 2008,
through January 31, 2009. We have preliminarily determined that sales
have been made below normal value by certain companies subject to this
review. We invite interested parties to comment on these preliminary
results. Parties who submit comments in this review are requested to
submit with each argument a statement of the issue and a brief summary
of the argument.
DATES: Effective Date: September 24, 2009.
FOR FURTHER INFORMATION CONTACT: Yang Jin Chun or Richard Rimlinger,
AD/CVD Operations, Office 5, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
5760 and (202) 482-4477, respectively.
SUPPLEMENTARY INFORMATION:
Background
On February 10, 2000, the Department published in the Federal
Register the antidumping duty order on CTL plate from Korea. See Notice
of Amendment of Final Determinations of Sales at Less Than Fair Value
and Antidumping Duty Orders: Certain Cut-To-Length Carbon-Quality Steel
Plate Products From France, India, Indonesia, Italy, Japan and the
Republic of Korea, 65 FR 6585 (February 10, 2000). On February 4, 2009,
the Department published in the Federal Register a notice of
opportunity to request an administrative review of the antidumping duty
order on CTL plate from Korea. See Antidumping or Countervailing Duty
Order, Finding, or Suspended Investigation; Opportunity To Request
Administrative Review, 74 FR 6013 (February 4, 2009). On February 27,
2009, pursuant to section 751(a)(1) of the Tariff Act of 1930, as
amended (the Act), and 19 CFR 351.213(b), Dongkuk Steel Mill Co., Ltd.
(DSM), requested that the Department review its sales of subject
merchandise from Korea and Nucor Corporation, the domestic interested
party in this review, requested that the Department review the sales of
subject merchandise from Korea produced or exported by Daewoo
International Corporation (Daewoo), Hyosung Corporation (Hyosung),
Hyundai Mipo Dockyard Co., Ltd. (Hyundai Mipo), and JeongWoo Industrial
Machine Co., Ltd. (JeongWoo), during the period of review. On March 24,
2009, in accordance with 19 CFR 351.221(c)(1)(i), the Department
initiated the administrative review of the antidumping duty order on
CTL plate from Korea produced and/or exported by DSM, Daewoo, Hyosung,
Hyundai Mipo, and JeongWoo for the period of review. See Initiation of
Antidumping and Countervailing Duty Administrative Reviews and Requests
for Revocation in Part, 74 FR 12310, 12312 (March 24, 2009).
On April 1, 2009, for purposes of selecting respondents in this
review, we released the data we obtained from U.S. Customs and Border
Protection (CBP) on March 16, 2009, for this review to interested
parties which have access to business-proprietary information under the
Administrative Protective Order. See the April 1, 2009, memorandum to
the File entitled ``Certain Cut-to-Length Carbon-Quality Steel Plate
from the Republic of Korea: CBP Data'' (CBP Data Memo). On April 8,
2009, DSM withdrew its request that the Department review its sales of
subject merchandise. On May 7, 2009, we issued a quantity-and-value
questionnaire to Daewoo, Hyosung, Hyundai Mipo, and JeongWoo. See the
May 12, 2009, memorandum to the File entitled ``Certain Cut-to-Length
Carbon Quality Steel Plate from the Republic of Korea: Release of
Quantity-and-Value Questionnaire'' (Q&V Release Memo). On June 5, 2009,
we rescinded the review in part with respect to CTL plate from Korea
produced and/or exported by DSM. See Certain Cut-to-Length Carbon-
Quality Steel Plate from the Republic of Korea: Partial Rescission of
Antidumping Duty Administrative Review, 74 FR 27015 (June 5, 2009).
Scope of the Order
The products covered by the antidumping duty order are certain hot-
rolled carbon-quality steel: (1) Universal
[[Page 48717]]
mill plates (i.e., flat-rolled products rolled on four faces or in a
closed box pass, of a width exceeding 150 mm but not exceeding 1250 mm,
and of a nominal or actual thickness of not less than 4 mm, which are
cut-to length (not in coils) and without patterns in relief), of iron
or non-alloy quality steel; and (2) flat-rolled products, hot-rolled,
of a nominal or actual thickness of 4.75 mm or more and of a width
which exceeds 150 mm and measures at least twice the thickness, and
which are cut-to-length (not in coils). Steel products included in the
scope of the order are of rectangular, square, circular, or other shape
and of rectangular or non-rectangular cross section where such non-
rectangular 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. Steel
products that meet the noted physical characteristics that are painted,
varnished, or coated with plastic or other non-metallic substances are
included within the scope. Also, specifically included in the scope of
the order are high strength, low alloy (HSLA) steels. HSLA steels are
recognized as steels with micro-alloying levels of elements such as
chromium, copper, niobium, titanium, vanadium, and molybdenum. Steel
products included in the scope, regardless of Harmonized Tariff
Schedule of the United States (HTSUS) definitions, are products in
which: (1) Iron predominates, by weight, over each of the other
contained elements, (2) the carbon content is two percent or less, by
weight, and (3) none of the elements listed below is equal to or
exceeds the quantity, by weight, respectively indicated: 1.80 percent
of manganese, or 1.50 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, or 0.41 percent of titanium, or 0.15 percent of vanadium, or
0.15 percent zirconium. All products that meet the written physical
description, and in which the chemistry quantities do not equal or
exceed any one of the levels listed above, are within the scope of the
order unless otherwise specifically excluded. The following products
are specifically excluded from the order: (1) Products clad, plated, or
coated with metal, whether or not painted, varnished or coated with
plastic or other non-metallic substances; (2) SAE grades (formerly AISI
grades) of series 2300 and above; (3) products made to ASTM A710 and
A736 or their proprietary equivalents; (4) abrasion-resistant steels
(i.e., USS AR 400, USS AR 500); (5) products made to ASTM A202, A225,
A514 grade S, A517 grade S, or their proprietary equivalents; (6) ball
bearing steels; (7) tool steels; and (8) silicon manganese steel or
silicon electric steel.
Imports of steel plate are currently classified in the HTSUS under
subheadings 7208.40.30.30, 7208.40.30.60, 7208.51.00.30, 7208.51.00.45,
7208.51.00.60, 7208.52.00.00, 7208.53.00.00, 7208.90.00.00,
7210.70.30.00, 7210.90.90.00, 7211.13.00.00, 7211.14.00.30,
7211.14.00.45, 7211.90.00.00, 7212.40.10.00, 7212.40.50.00,
7212.50.00.00, 7225.40.30.50, 7225.40.70.00, 7225.50.60.00,
7225.99.00.90, 7226.91.50.00, 7226.91.70.00, 7226.91.80.00, and
7226.99.00.00. The HTSUS subheadings are provided for convenience and
customs purposes. The written description of the merchandise covered by
the order is dispositive.
Intent To Rescind in Part
In accordance with 19 CFR 351.213(d)(3), we will rescind an
administrative review in part if we conclude that there were no exports
of subject merchandise during the period of review. On May 20, 2009,
Daewoo submitted a letter stating that it had no shipments of subject
merchandise during the period of review. Daewoo's claim of no shipments
is consistent with CBP data on the record of the review. See CBP Data
Memo. Further, we have received no comments on Daewoo's May 20, 2009,
submission. Because we preliminarily find that Daewoo had no shipments
of subject merchandise during the period of review, we intend to
rescind the administrative review with respect to Daewoo. If we
continue to find at the time of our final results that Daewoo had no
shipments of CTL plate from Korea, we will rescind the administrative
review with respect to Daewoo.
Use of Adverse Facts Available
For the reasons discussed below, we determine that the use of
adverse facts available is appropriate for the preliminary results with
respect to Hyosung, Hyundai Mipo, and JeongWoo.
A. Use of Facts Available
Section 776(a)(2) of the Act provides that, if an interested party
withholds information requested by the administering authority, fails
to provide such information by the deadlines for submission of the
information and in the form or manner requested, significantly impedes
a proceeding under this title, or provides such information but the
information cannot be verified as provided in section 782(i) of the
Act, the Department shall use facts otherwise available in reaching the
applicable determination.
On May 7, 2009, we transmitted our questionnaire to Hyosung,
Hyundai Mipo, and JeongWoo via Federal Express. We confirmed that
Hyundai Mipo and JeongWoo signed for and received the questionnaire on
May 11, 2009, and Hyosung signed for and received the questionnaire on
May 12, 2009. See Q&V Release Memo. The due date for the responses to
our questionnaire was May 18, 2009. The Department never received a
response from Hyosung, Hyundai Mipo, or JeongWoo.
Because Hyosung, Hyundai Mipo, and JeongWoo did not provide their
responses to the Department's questionnaire, Hyosung, Hyundai Mipo, and
JeongWoo failed to provide any information to the Department within the
meaning of section 776(a)(2) of the Act. As a result, we are unable to
calculate margins for Hyosung, Hyundai Mipo, and JeongWoo and,
therefore, must rely entirely on facts available.
B. Application of Adverse Inferences for Facts Available
In selecting among the facts otherwise available, section 776(b) of
the Act provides that, if the Department finds that an interested party
has failed to cooperate by not acting to the best of its ability to
comply with a request for information, the Department may use an
inference adverse to the interests of that party. In addition, the
Statement of Administrative Action accompanying the Uruguay Round
Agreements Act, H.R. Rep. 103-316, Vol. 1, 103d Cong. (1994), reprinted
in 1994 U.S.C.C.A.N. 4040 (SAA), establishes that the Department may
employ an adverse inference ``to ensure that the party does not obtain
a more favorable result by failing to cooperate than if it had
cooperated fully.'' See SAA at 870. The SAA also instructs the
Department to consider, in employing adverse inferences, ``the extent
to which a party may benefit from its own lack of cooperation.'' Id.
Moreover, ``affirmative evidence of bad faith on the part of a
respondent is not required before the Department may make an adverse
inference.'' See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27340 (May 19, 1997).
[[Page 48718]]
We find that, by failing completely to respond to our
questionnaire, Hyosung, Hyundai Mipo, and JeongWoo withheld requested
information and thus failed to cooperate to the best of their
abilities. Therefore, we find it appropriate to use an inference that
is adverse to these companies' interests in selecting from among the
facts otherwise available. By doing so, we ensure that these companies
will not obtain a more favorable rate by failing to cooperate than had
they cooperated fully.
C. Selection of Information Used as Facts Available
Where the Department applies an adverse facts-available rate
because a respondent failed to cooperate by not acting to the best of
its ability to comply with a request for information, section 776(b) of
the Act authorizes the Department to rely on information derived from
the petition, a final determination, a previous administrative review,
or other information placed on the record. See also 19 CFR 351.308(c)
and the SAA at 870.
For the preliminary results, we have selected 32.70 percent as the
adverse facts-available dumping margin for Hyosung, Hyundai Mipo, and
JeongWoo. This rate is the rate we assigned as adverse facts available
to Tae Chang Steel Co., Ltd. (TC Steel), which failed to submit its
response to our antidumping questionnaire in the administrative review
of this proceeding for the period February 1, 2006, through January 31,
2007. See Certain Cut-to-Length Carbon-Quality Steel Plate Products
From the Republic of Korea: Preliminary Results of Antidumping Duty
Administrative Review and Intent To Rescind Administrative Review in
Part, 72 FR 65701, 65702-03 (November 23, 2007) (CTL Plate from Korea
2006-07 Prelim), unchanged in Certain Cut-to-Length Carbon-Quality
Steel Plate Products From the Republic of Korea: Final Results of
Antidumping Duty Administrative Review and Rescission of Administrative
Review in Part, 73 FR 15132, 15133 (March 21, 2008) (CTL Plate from
Korea 2006-07 Final) (collectively CTL Plate from Korea 2006-07). In
CTL Plate from Korea 2006-07, the adverse facts-available rate of 32.70
percent which we assigned to TC Steel was the highest product-specific
margin we had calculated based on data reported by a respondent. See
CTL Plate from Korea 2006-07 Prelim, 72 FR at 65702-03, and CTL Plate
from Korea 2006-07 Final, 73 FR at 15133. We have selected this rate
because we have never reviewed Hyosung, Hyundai Mipo, and JeongWoo in a
prior segment of this proceeding and we do not have any additional
information about these three companies. Id. Moreover, we believe this
rate is sufficiently high to ensure that Hyosung, Hyundai Mipo, and
JeongWoo do not obtain a more favorable result by failing to cooperate.
D. Corroboration of Information
Section 776(c) of the Act provides that, when the Department relies
on secondary information as facts available, it must corroborate, to
the extent practicable, 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 be used has probative value. See SAA at 870. The SAA
also states that independent sources used to corroborate may include,
for example, published price lists, official import statistics, and
customs data as well as information obtained from interested parties
during the particular proceeding. Id.
To corroborate secondary information, to the extent practicable,
the Department normally examines the reliability and relevance of the
information to be used. See, e.g., Ball Bearings and Parts Thereof from
France, et al.: Preliminary Results of Antidumping Duty Administrative
Reviews and Intent to Rescind Reviews in Part, 73 FR 25654, 25657 (May
7, 2008), unchanged in Ball Bearings and Parts Thereof From France, et
al.: Final Results of Antidumping Duty Administrative Reviews and
Rescission of Reviews in Part, 73 FR 52823, 52824 (September 11, 2008)
(collectively AFBs 18). Unlike other types of information such as input
costs or selling expenses, there are no independent sources for
calculated dumping margins. The only sources for antidumping duty
margins are administrative determinations. Thus, with respect to an
administrative review, if the Department chooses to use as facts
available a calculated dumping margin from a prior segment of the
proceeding, it is not necessary to question the reliability of the
margin for that time period. See AFBs 18 and Antifriction Bearings and
Parts Thereof from France, et al.: Preliminary Results of Antidumping
Duty Administrative Reviews, Partial Rescission of Administrative
Reviews, Notice of Intent To Rescind Administrative Reviews, and Notice
of Intent To Revoke Order in Part, 69 FR 5949, 5953 (February 9, 2004),
unchanged in Antifriction Bearings and Parts Thereof From France, et
al.: Final Results of Antidumping Duty Administrative Reviews,
Rescission of Administrative Reviews in Part, and Determination To
Revoke Order in Part, 69 FR 55574, 55576-77 (September 15, 2004).
With respect to the relevance aspect of corroboration, the
Department will consider information reasonably at its disposal to
determine whether a margin continues to have relevance. Where
circumstances indicate that the selected margin is not appropriate as
adverse facts available, the Department will disregard the margin and
determine an appropriate margin. For example, in Fresh Cut Flowers From
Mexico; Final Results of Antidumping Duty Administrative Review, 61 FR
6812, 6814 (February 22, 1996), the Department disregarded the highest
margin in that case as best information available (the predecessor to
facts available) because the margin was based on another company's
uncharacteristic business expense resulting in an unusually high
margin. Similarly, the Department does not apply a margin that has been
discredited or judicially invalidated. See D & L Supply Co. v. United
States, 113 F.3d 1220, 1221 (CAFC 1997).
In this review, there are no circumstances present to indicate that
the selected margin is not appropriate as adverse facts available.
Moreover, there is no information on the record of this review that
demonstrates that 32.70 percent, which we assigned to TC Steel as an
adverse facts-available rate in CTL Plate from Korea 2006-07, is not an
appropriate adverse facts-available rate for Hyosung, Hyundai Mipo, and
JeongWoo. Because there are no calculated margins for any other
respondents in this administrative review, we examined transaction-
specific margins from the administrative review of the antidumping duty
order on CTL plate from Korea for the period February 1, 2007, through
January 31, 2008, and we found a number of transaction-specific margins
in our calculation for DSM which were higher than 32.70 percent. See
the September XX, 2009, memorandum to the File entitled ``Certain Cut-
to-Length Carbon-Quality Steel Plate from the Republic of Korea:
Placement on Record'' for details which contain DSM's business-
proprietary information. With the information at our disposal for the
corroboration of this adverse facts-available rate, we find that the
rate of 32.70 percent is corroborated to the greatest extent
practicable in accordance with section 776(c) of the Act.
Because we are making an adverse inference with regard to Hyosung,
Hyundai Mipo, and JeongWoo based on the most recent information at our
disposal, we preliminarily find that the
[[Page 48719]]
rate of 32.70 percent is a reasonable indication of the margins that
Hyosung, Hyundai Mipo, and JeongWoo would have received on their U.S.
transactions had they responded to our request for information. We
preliminarily find that use of the rate of 32.70 percent as adverse
facts available is sufficiently high to ensure that Hyosung, Hyundai
Mipo, and JeongWoo do not benefit from failing to cooperate in our
review by refusing to respond to our questionnaire. See CTL Plate from
Korea 2006-07 Final, 73 FR at 15133.
Preliminary Results of the Review
As a result of our review, we preliminarily determine that the
weighted-average dumping margins for CTL plate from Korea for the
period February 1, 2008, through January 31, 2009, are as follows:
------------------------------------------------------------------------
Margin
Company (percent)
------------------------------------------------------------------------
Hyosung................................................ 32.70
Hyundai Mipo........................................... 32.70
JeongWoo............................................... 32.70
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Disclosure and Public Comment
We will disclose the draft liquidation instructions to parties to
this review within five days of the date of publication of this notice.
See 19 CFR 351.224(b). Any interested party may request a hearing
within 30 days of the date of publication of this notice. See 19 CFR
351.310. Interested parties who wish to request a hearing or to
participate in a hearing if a hearing is requested must submit a
written request to the Assistant Secretary for Import Administration
within 30 days of the date of publication of this notice. Requests
should contain the following: (1) The party's name, address, and
telephone number; (2) the number of participants; (3) a list of issues
to be discussed.
Issues raised in the hearing will be limited to those raised in the
case briefs. See 19 CFR 351.310(c). Case briefs from interested parties
may be submitted not later than 30 days after the date of publication
of this notice of preliminary results of review. See 19 CFR
351.309(c)(1)(ii). Rebuttal briefs from interested parties, limited to
the issues raised in the case briefs, may be submitted not later than
five days after the time limit for filing the case briefs or comments.
See 19 CFR 351.309(d)(1) and 19 CFR 351.310(c). Any hearing, if
requested, will be held two days after the scheduled date for
submission of rebuttal briefs. See 19 CFR 351.310(d). Parties who
submit case briefs or rebuttal briefs in this proceeding are requested
to submit with each argument a statement of the issue, a summary of the
arguments not exceeding five pages, and a table of statutes,
regulations, and cases cited. See 19 CFR 351.309(c)(2). The Department
will issue the final results of this administrative review, including
the results of its analysis of issues raised in any such written
briefs, not later than 120 days after the date of publication of this
notice. See section 751(a)(3)(A) of the Act.
Assessment Rates
Pursuant to 19 CFR 351.212(b), the Department will determine, and
CBP shall assess, antidumping duties on all appropriate entries.
Because we are relying on total adverse facts available to establish
the dumping margins for Hyosung, Hyundai Mipo, and JeongWoo, we intend
to instruct CBP to apply a dumping margin of 32.70 percent to CTL plate
from Korea that was produced and/or exported by Hyosung, Hyundai Mipo,
and JeongWoo and entered, or withdrawn from warehouse, for consumption
during the period of review.
The Department intends to issue appropriate assessment instructions
to CBP 15 days after publication of the final results of review.
Cash-Deposit Requirements
The following deposit requirements will be effective upon
publication of the notice of final results of administrative review for
all shipments of steel plate from Korea entered, or withdrawn from
warehouse, for consumption on or after the date of publication, as
provided by section 751(a)(2)(C) of the Act: (1) The cash-deposit rates
for Hyosung, Hyundai Mipo, and JeongWoo will be the rate established in
the final results of this review; (2) for previously reviewed or
investigated companies not listed above, the cash-deposit rate will
continue to be the company-specific rate published for the most recent
period; (3) if the exporter is not a firm covered in this review, a
prior review, or the less-than-fair-value 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; (4) if
neither the exporter nor the manufacturer has its own rate, the cash-
deposit rate will be 0.98 percent,\1\ the all-others rate established
in the less-than-fair-value investigation, adjusted for the export-
subsidy rate in the companion countervailing duty investigation. These
deposit requirements, when imposed, shall remain in effect until
further notice.
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\1\ See the September XX, 2009, memorandum to the File entitled
``Certain Cut-to-Length Carbon-Quality Steel Plate from the Republic
of Korea: All-Others Cash-Deposit Rate'' for details on the
calculation of this rate.
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Notification to Importers
This notice also serves as a preliminary reminder to importers of
their responsibility under 19 CFR 351.402(f) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during the period of review. Failure to comply
with this requirement could result in the Department's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of doubled antidumping duties.
These preliminary results of administrative review are issued and
published in accordance with sections 751(a)(1) and 777(i) of the Act
and 19 CFR 351.221(b)(4).
Dated: September 18, 2009.
Carole A. Showers,
Acting Deputy Assistant Secretary for Policy and Negotiations.
[FR Doc. E9-23112 Filed 9-23-09; 8:45 am]
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