[Federal Register: December 7, 2005 (Volume 70, Number 234)]
[Notices]
[Page 72781-72787]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07de05-29]
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DEPARTMENT OF COMMERCE
International Trade Administration
A-428-839
A-489-814
A-570-902
Initiation of Antidumping Duty Investigations: Carbon and Certain
Alloy Steel Wire Rod from Germany, Turkey, and the People's Republic of
China
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: December 7, 2005.
FOR FURTHER INFORMATION CONTACT: Tyler Weinhold (Germany), John Drury
(Turkey), or Matthew Renkey (People's Republic of China), AD/CVD
Operations, Import Administration, International Trade Administration,
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW,
Washington, DC 20230; telephone: (202) 482-1121, (202) 482-0195 and
(202) 482-2312, respectively.
SUPPLEMENTARY INFORMATION:
INITIATION OF INVESTIGATIONS
The Petitions
On November 10, 2005, the Department of Commerce (``the
Department'') received Petitions (``the Petitions'') concerning imports
of carbon and certain alloy steel wire rod (``CASWR'') from Germany
(``German Petition''), Turkey (``Turkish Petition''), and the People's
Republic of China (``PRC'')(``PRC Petition'') filed in proper form by
Connecticut Steel Corp., Gerdau Ameristeel U.S. Inc., Keystone
Consolidated Industries, Inc., ISG Georgetown, Inc. (Mittal Steel
U.S.A. Georgetown), and Rocky Mountain Steel Mills (``Petitioners'') on
behalf of the domestic industry producing CASWR. The period of
investigation (``POI'') for Germany and Turkey is October 1, 2004,
through September 30, 2005. The POI for the PRC is April 1, 2005,
through September 30, 2005.
In accordance with section 732(b) of the Tariff Act of 1930, as
amended (``the Act''), Petitioners alleged that imports of CASWR from
Germany, Turkey and the PRC are being, or are likely to be, sold in the
United States at less than fair value within the meaning of section 731
of the Act, and that such imports are materially injuring and threaten
to injure an industry in the United States.
Scope of Investigations
The merchandise subject to this scope is certain hot-rolled
products of carbon steel and alloy steel, in coils, of
[[Page 72782]]
approximately circular cross section, 4.75 mm or more, but less than
19.00 mm, in solid cross-sectional diameter. Specifically excluded are
steel products possessing the above-noted physical characteristics and
meeting the Harmonized Tariff Schedule of the United States (``HTSUS'')
definitions for (a) stainless steel; (b) tool steel; (c) high nickel
steel; (d) ball bearing steel; and (e) concrete reinforcing bars. Also
excluded are free machining steel products (i.e., products that contain
by weight one or more of the following elements: 0.03 percent or more
of lead, 0.05 percent or more of bismuth, 0.08 percent or more of
sulfur, more than 0.04 percent of phosphorus, more than 0.05 percent of
selenium, or more than 0.01 percent of tellurium).
All products meeting the physical description of subject
merchandise that are not specifically excluded are included in this
scope. The products under review are currently classifiable under
subheadings 7213.91.3011, 7213.91.3015, 7213.91.3092, 7213.91.4500,
7213.91.6000, 7213.99.0030, 7213.99.0090, 7227.20.0000, and
7227.90.6050 of the HTSUS. Although the HTSUS subheadings are provided
for convenience and customs purposes, the written description of the
scope of this proceeding is dispositive.
Comments on Scope of Investigations
During our review of the Petitions, we discussed the scope with
Petitioners to ensure that it accurately reflects the product for which
the domestic industry is seeking relief. Moreover, as discussed in the
preamble to the Department's regulations, we are setting aside a period
for interested parties to raise issues regarding product coverage. See
Antidumping Duties; Countervailing Duties; Final Rule, 62 FR 27296,
27323 (May 19, 1997). The Department encourages all interested parties
to submit such comments within 20 calendar days of publication of this
initiation notice. Comments should be addressed to Import
Administration's Central Records Unit in Room 1870, U.S. Department of
Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 20230
- Attention: Robert James. The period of scope consultations is
intended to provide the Department with ample opportunity to consider
all comments and consult with interested parties prior to the issuance
of the preliminary determinations.
Determination of Industry Support for the Petitions
Section 732(b)(1) of the Act requires that a petition be filed by
or on behalf of the domestic industry. In order to determine whether a
petition has been filed by or on behalf of the industry, the
Department, pursuant to section 732(c)(4)(A) of the Act, determines
whether a minimum percentage of the relevant industry supports the
petition. A petition meets this requirement if the domestic producers
or workers who support the petition account for: (i) at least 25
percent of the total production of the domestic like product; and (ii)
more than 50 percent of the production of the domestic like product
produced by that portion of the industry expressing support for, or
opposition to, the petition. Moreover, section 732(c)(4)(D) of the Act
provides that, if the petition does not establish support of domestic
producers or workers accounting for more than 50 percent of the total
production of the domestic like product, the Department shall: (i) poll
the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A), or
(ii) determine industry support using a statistically valid sampling
method.
Section 771(4)(A) of the Act defines the ``industry'' as the
producers of a domestic like product. Thus, to determine whether a
petition has the requisite industry support, the statute directs the
Department to look to producers and workers who produce the domestic
like product. The International Trade Commission (``ITC''), which is
responsible for determining whether the domestic industry has been
injured, must also determine what constitutes a domestic like product
in order to define the industry. While both the Department and the ITC
must apply the same statutory definition regarding the domestic like
product (section 771(10) of the Act), they do so for different purposes
and pursuant to a separate and distinct authority. In addition, the
Department's determination is subject to limitations of time and
information. Although this may result in different definitions of the
like product, such differences do not render the decision of either
agency contrary to law. See USEC, Inc. v. United States, 132 F. Supp.
2d 1, 8 (CIT 2001), citing Algoma Steel Corp. Ltd. v. United States,
688 F. Supp. 639, 644 (1988), aff'd 865 F.2d 240 (Fed. Cir. 1989),
cert. denied 492 U.S. 919 (1989).
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation,'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, Petitioners do not offer
a definition of domestic like product distinct from the scope of the
investigation. See Germany Initiation Checklist, Turkey Initiation
Checklist, and PRC Initiation Checklist at Attachment II (Industry
Support). Based on our analysis of the information submitted in the
Petitions we have determined there is a single domestic like product,
carbon and certain alloy steel wire rod, and we have analyzed industry
support in terms of that domestic like product.
Our review of the data provided in the Petitions, Supplements to
the Petitions, dated November 18, 2005, and November 22, 2005, and
other information readily available to the Department indicates that
Petitioners have established industry support representing at least 25
percent of the total production of the domestic like product; and more
than 50 percent of the production of the domestic like product produced
by that portion of the industry expressing support for or opposition to
the Petitions, requiring no further action by the Department pursuant
to section 732(c)(4)(D) of the Act. In addition, the Department
received no opposition to the Petitions from domestic producers of the
like product. Therefore, the domestic producers (or workers) who
support the Petitions account for at least 25 percent of the total
production of the domestic like product, and the requirements of
section 732(c)(4)(A)(i) of the Act are met. Furthermore, the domestic
producers who support the Petitions account for more than 50 percent of
the production of the domestic like product produced by that portion of
the industry expressing support for, or opposition to, the Petitions.
Thus, the requirements of section 732(c)(4)(A)(ii) of the Act also are
met. Accordingly, the Department determines that the Petitions were
filed on behalf of the domestic industry within the meaning of section
732(b)(1) of the Act. See Germany Initiation Checklist, Turkey
Initiation Checklist, and PRC Initiation Checklist at Attachment II
(Industry Support).
The Department finds that Petitioners filed the Petitions on behalf
of the domestic industry because they are interested parties as defined
in section 771(9)(E) and (F) of the Act and have demonstrated
sufficient industry support with respect to the antidumping
investigations that it is requesting the Department initiate. See
Germany
[[Page 72783]]
Initiation Checklist, Turkey Initiation Checklist, and PRC Initiation
Checklist at Attachment II (Industry Support).
U.S. Price and Normal Value
The following is a description of the allegation of sales at less
than fair value upon which the Department based its decision to
initiate these investigations on Germany, Turkey, and the PRC. The
sources of data for the deductions and adjustments relating to the U.S.
price, home-market price (Germany and Turkey), constructed value
(Germany and Turkey), and the factors of production (PRC only) are also
discussed in the country-specific Initiation Checklist. See Germany
Initiation Checklist, Turkey Initiation Checklist, and PRC Initiation
Checklist. Should the need arise to use any of this information as
facts available under section 776 of the Act in our preliminary or
final determinations, we will reexamine the information and revise the
margin calculations, if appropriate.
Turkey
Export Price (``EP'')
Petitioners based U.S. price on EP. Petitioners obtained a price
for a sale to an end user of the subject merchandise within the POI.
Petitioners provided an affidavit with the information. See Volume II
of the Turkish Petition at Exhibit 5. The price quoted is for a
specific grade, quality, and diameter falling within the scope of this
petition. Export price was the basis for U.S. price because CASWR was
offered for sale to an unaffiliated U.S. purchaser prior to the date of
importation. Petitioners deducted from the offer price the expenses
associated with exporting and delivering the product: foreign inland
freight, foreign brokerage and handling, ocean freight and insurance,
U.S. port charges, and a three percent trading company markup, which
was based upon research from a market research company as customary for
this type of transaction. See Volume II of the Turkish Petition at page
5, Exhibit 6, and Exhibit 9. In addition, Petitioners adjusted for
differences in imputed credit expenses by subtracting home market
credit expenses to the home market price and by adding U.S. imputed
credit expenses to the home market price. See Volume II of the Turkish
Petition at Exhibit 6, and Supplement to the Turkish Petition, dated
November 18, 2005, at Revised Exhibit 10, and Supplement to the Turkish
Petition, dated November 22, 2005 at 2nd Revised Exhibit 6.
The price quoted was delivered to the customer and included foreign
inland freight, and insurance, U.S. import duties and port fees, U.S.
inland freight, and an estimated trading company resale markup. See
Volume II of the Turkish Petition at Exhibit 6, and Supplement to the
Turkish Petition, dated November 18, 2005, at Revised Exhibit 10, and
Supplement to the Turkish Petition, dated November 22, 2005, at 2nd
Revised Exhibit 6.
Normal Value (``NV'')
To calculate NV, Petitioners provided a price quote from Habas
Sinai ve Tibbi Galar Istihsal Endustrisi AS (``Habas Sinai''), a
Turkish producer of CASWR. The information was obtained from a
confidential market research company. The price quote is for a specific
grade, quality and diameter falling within the scope of this petition,
with FOB mill (i.e., ex-works) delivery terms. See Volume II of the
Turkish Petition at pages 1-2 and Memorandum to the File, Telephone
Call to Market Research Firm Regarding the Antidumping Petition on
Carbon and Certain Alloy Steel Wire Rod (CASWR) from Turkey dated
November 18, 2005. Petitioners made adjustments for imputed credit
expenses. See Volume II of the Turkish Petition at Exhibit 3 and 4, and
Supplement to the Turkish Petition, dated November 18, 2005, at
Attachment 1 and Revised Exhibit 10. The Turkish HM price per metric
ton was converted to short tons using the standard conversion factor.
No additional adjustments were made to derive the HM price.
Cost of Production
Petitioners have provided information demonstrating reasonable
grounds to believe or suspect that sales of CASWR in the home market
were made at prices below the fully absorbed cost of production
(``COP''), within the meaning of section 773(b) of the Act, and
requested that the Department conduct a country-wide sales-below-cost
investigation. Pursuant to section 773(b)(3) of the Act, COP consists
of the cost of manufacturing (``COM''); selling, general and
administrative (``SG&A'') expenses; financial expenses; and packing
expenses. Petitioners calculated COM and packing expenses based on the
weighted-averaged production experiences of U.S. CASWR producers during
the POI, adjusted for known differences between the costs incurred to
manufacture CASWR in the United States and in Turkey using publicly
available data. To calculate SG&A and financial expenses, Petitioner
relied on the fiscal year 2003 financial statements of Habas Sinai.
Based upon a comparison of the prices of the foreign-like product
in the home market to the calculated COP of the product, we find
reasonable grounds to believe or suspect that sales of the foreign like
product were made below the COP, within the meaning of section
773(b)(2)(A)(i) of the Act. Accordingly, the Department is initiating a
country-wide cost investigation. See Turkey Initiation Checklist.
Normal Value based on Constructed Value (``CV'')
Pursuant to sections 773(a)(4), 773(b) and 773(e) of the Act,
Petitioners also based NV on CV. Petitioners calculated CV using the
same COM, SG&A, financial and packing figures used to compute the COP.
Petitioners then calculated profit based on the FY 2003 financial
statements of a Turkish CASWR producer, Habas Sinai. See Turkey
Initiation Checklist.
Germany
Export Price
To calculate EP, Petitioners obtained a price for a sale of subject
merchandise, made within the POI, manufactured by B.E.S. Brandenburger
Electrostahlwerke, GmbH (``Brandenburger'') and sold through
Brandenburger's affiliated trading company, Riva Stahl. Petitioners
provided an affidavit with this information. See Volume II of the
German Petition at page 2 and Exhibit 5. The price quoted is for a
specific grade, quality, and diameter falling within the scope of this
petition.
The price quoted was FOB U.S. port, and included foreign inland
freight charges, ocean freight and insurance from Germany, and U.S.
port fees. See Volume II of the German Petition at pages 2, 3, and 4
and Exhibit 5, and Supplement to the German Petition, dated November
18, 2005, at Attachment 1.
Petitioners deducted a three percent mark-up based upon the actual
experience of Stemcor, an international steel trading company, as a
publicly available surrogate for Riva's experiences. See Volume II of
the German Petition at pages 2 and 3 and Exhibit 8 and Supplement to
the German Petition, dated November 18, 2005, at Attachment 1.
Normal Value
To calculate NV, Petitioners obtained a price for subject
merchandise, as offered for sale by Brandenburger to an unaffiliated
customer in the home market. This information was provided by a market
researcher. The price quote
[[Page 72784]]
is for a specific grade, quality, and diameter falling within the scope
of this petition. See Supplement to the German Petition, dated November
19, 2005, Foreign Market Research Declaration, and Memorandum to the
File, Telephone Call to Market Research Firm Regarding the Antidumping
Petition on Carbon and Certain Alloy Steel Wire Rod (CASWR) from
Germany dated November 18, 2005.
Petitioners made adjustments to home market gross price for foreign
inland freight expense and imputed credit expense. See Volume II of the
German Petition at pages 1 and 2 and Exhibit 2 and Supplement to the
Petition, dated November 15, 2005, Foreign Market Research Declaration
at Exhibit 1. To calculate the reported foreign inland freight,
petitioners relied on a survey of quotes gathered by the market
researcher. See Memorandum to the File, Telephone Call to Market
Research Firm Regarding the Antidumping Petition on CASWR from Germany
dated November 18, 2005.
Cost of Production
Petitioners have provided information demonstrating reasonable
grounds to believe or suspect that sales of CASWR in the home market
were made at prices below the fully absorbed COP, within the meaning of
section 773(b) of the Act, and requested that the Department conduct a
country-wide sales-below-cost investigation. Petitioners calculated COM
and packing expenses based on the weight-averaged production
experiences of certain U.S. CASWR producers during the POI, adjusted
for known differences between the costs incurred to manufacture CASWR
in the United States and in Germany. To calculate SG&A and financial
expenses, Petitioners relied on the fiscal year 2003 financial
statements of Brandenburger.
Based upon a comparison of the prices of the foreign like product
in the home market to the calculated COP of the product, we find
reasonable grounds to believe or suspect that sales of the foreign like
product were made below the COP, within the meaning of section
773(b)(2)(A)(i) of the Act. Accordingly, the Department is initiating a
country-wide cost investigation. See Germany Initiation Checklist.
Normal Value Based on Constructed Value
Pursuant to sections 773(a)(4), 773(b) and 773(e) of the Act,
petitioners also based NV on CV. Petitioners calculated CV using the
same COM, SG&A, financial, and packing figures used to compute the COP.
See Volume II of the Petition at page 2 and Exhibit 1. Petitioners then
calculated profit based on the FY 2004 financial statements of two
German producers of the same general class of merchandise. See Germany
Initiation Checklist
PRC
Export Price
Petitioners based their U.S. price on information regarding a
Chinese quoted offer price as relayed by a U.S. customer. Petitioners
based U.S. price on EP because the offer was made by an unidentified
trading company to a U.S. customer. The Department deducted from the
offer price the expenses associated with exporting and delivering the
product: foreign inland freight, foreign brokerage and handling, ocean
freight and insurance, U.S. port charges, and trading company markup.
See PRC Initiation Checklist.
Normal Value
The Petitioners stated that the PRC is a non-market economy
(``NME'') and no determination to the contrary has yet been made by the
Department. In previous investigations, the Department has determined
that the PRC is an NME. See Notice of Final Determination of Sales at
Less Than Fair Value: Chlorinated Isocyanurates From the People's
Republic of China, 70 FR 24502 (May 10, 2005), Notice of Final
Determination of Sales at Less Than Fair Value and Affirmative Critical
Circumstances: Magnesium Metal from the People's Republic of China, 70
FR 9037 (February 24, 2005) and Notice of Final Determination of Sales
at Less Than Fair Value: Certain Tissue Paper Products from the
People's Republic of China, 70 FR 7475 (February 14, 2005). In
accordance with section 771(18)(C)(i) of the Act, the presumption of
NME status remains in effect until revoked by the Department. The
presumption of NME status for the PRC has not been revoked by the
Department and remains in effect for purposes of the initiation of this
investigation. Accordingly, because available information does not
permit the NV of the merchandise to be determined under section 773(a)
of the Act, the NV of the product is appropriately based on factors of
production valued in a surrogate market-economy country in accordance
with section 773(c) of the Act. In the course of this investigation,
all parties will have the opportunity to provide relevant information
related to the issues of the PRC's NME status and the granting of
separate rates to individual exporters.
The Petitioners identified India as the surrogate country arguing
that India is an appropriate surrogate, pursuant to section 773(c)(4)
of the Act, because it is a market-economy country that is at a
comparable level of economic development to the PRC and is a
significant producer and exporter of CASWR. See Volume II of the
Petition at pages 6-7. Based on the information provided by the
Petitioners, we believe that its use of India as a surrogate country is
appropriate for purposes of initiating this investigation. After the
initiation of the investigation, the Department will solicit comments
regarding surrogate country selection. Also, pursuant to 19 CFR
351.301(c)(3)(i), interested parties will be provided an opportunity to
submit publicly available information to value factors of production
within 40 days after the date of publication of the preliminary
determination.
The Petitioners explained that the production process for CASWR
occurs in two stages: the melt shop and rolling mill. In the melt shop
a furnace melts scrap steel or pig iron. The molten steel then enters a
continuous caster which casts the liquid steel into billets. Next, in
the rolling mill, the billets are reheated, rolled into CASWR, cooled,
coiled and bundled for shipment. See Volume II of the Petition at page
9. The Petitioners stated that the manufacturing cost of CASWR in the
United States is typical of world-wide steel making costs and,
therefore, the use of the U.S. producers' production costs and/or
consumption rates represents the best information reasonably available
to the Petitioners at this time. See Volume II of the Petition at page
8. In building-up the factors of production, the Petitioners started
with inputs into the production of billets as the primary input in
CASWR.
The Petitioners provided a dumping margin calculation using the
Department's NME methodology as required by 19 CFR 351.202(b)(7)(i)(C).
See Volume II of the Petition at Exhibit 18, and Supplement to the
Petition, dated November 18, 2005, at Attachment 3. To determine, for
each raw material, the quantities of inputs used by the PRC
manufacturers to produce CASWR, the Petitioners relied on the
production experience and actual consumption rates of three U.S. CASWR
producers. See PRC Initiation Checklist.
In accordance with section 773(c)(4) of the Act, the Petitioners
valued factors of production, where possible, using reasonably
available, public surrogate country data. To value certain factors of
production, the Petitioners used Monthly Statistics of the Foreign
Trade of India, as published by the Directorate General of Commercial
Intelligence and
[[Page 72785]]
Statistics of the Ministry of Commerce and Industry, Government of
India, and compiled by World Trade Atlas (``WTA''). See PRC Initiation
Checklist.
For values expressed in Indian rupees, the Department used a simple
average of the daily exchange rate for the POI to convert these values
from rupees to U.S. dollars in accordance with our standard practice.
The Petitioners used a different source for their exchange rates since
rates covering the entire POI were not yet available on Import
Administration's website at the time that the Petitioners filed the PRC
Petition. However, such rates are now available at ia.ita.doc.gov/
exchange/india.txt, and we have used them in our calculations. See PRC
Initiation Checklist.
The Department calculates and publishes the surrogate values for
labor to be used in NME cases on its website. Therefore, to value
labor, the Petitioners used a labor rate of $0.97 per hour, in
accordance with the Department's regulations. See 19 CFR 351.408(c)(3)
and Supplement to the Petition, dated November 18, 2005, at Attachment
3.
The Petitioners calculated surrogate financial ratios (overhead,
SG&A, and profit) using information obtained from the Tata Iron and
Steel Company Ltd. (``Tata'') 2004-2005 Annual Report. See Volume II of
the Petition at pages 15-17 and Exhibit 17. Tata is an Indian producer
of CASWR. In this case, the Department has accepted the financial
information from the Tata 2004-2005 Annual Report for the purposes of
initiation, because these data appear to be the best information
currently available to the Petitioners. However, the Department has
made certain changes to the Petitioners' financial ratio calculations.
See PRC Initiation Checklist.
Fair Value Comparisons
Based on the data provided by Petitioners, there is reason to
believe that imports of CASWR from Germany, Turkey and the PRC are
being, or are likely to be, sold in the United States at less than fair
value. Based on comparisons of EP to NV, calculated in accordance with
section 773(a) of the Act, and of EP to CV, the range of the revised
estimated dumping margins for CASWR are 50.25 percent to 81.88 percent
for Germany, and 29.23 percent to 77.76 percent for Turkey. Based on
comparisons of EP to NV, calculated in accordance with section 773(c)
of the Act, the estimated revised weighted-average dumping margin for
CASWR from the PRC is 321.76 percent.
Allegations and Evidence of Material Injury and Causation
With regard to Germany, Turkey and the PRC, Petitioners allege that
the U.S. industry producing the domestic like product is being
materially injured, or is threatened with material injury, by reason of
the individual and cumulated imports of the subject merchandise sold at
less than NV. Petitioners contend that the industry's injured condition
is illustrated by the decline in customer base, lost sales, market
share, domestic shipments, prices and profit. We have assessed the
allegations and supporting evidence regarding material injury and
causation, and we have determined that these allegations are properly
supported by adequate evidence and meet the statutory requirements for
initiation. See Germany Initiation Checklist, Turkey Initiation
Checklist, and PRC Initiation Checklist at Attachment III (Injury).
Initiation of Antidumping Investigations
Based upon our examination of the Petitions on CASWR, we find that
these Petitions meet the requirements of section 732 of the Act.
Therefore, we are initiating antidumping duty investigations to
determine whether imports of CASWR are being, or are likely to be, sold
in the United States at less than fair value. Unless postponed, we will
make our preliminary determinations no later than 140 days after the
date of these initiations.
Separate Rates and Quantity and Value Questionnaire
The Department recently modified the process by which exporters and
producers may obtain separate-rate status in NME investigations. See
Policy Bulletin 05.1: Separate-Rates Practice and Application of
Combination Rates in Antidumping Investigations involving Non-Market
Economy Countries (Separate Rates and Combination Rates Bulletin),
(April 5, 2005), available on the Department's Website at http://ia.ita.doc.gov/policy/bull05-1.pdf.
The process now requires the
submission of a separate-rate status application. Based on our
experience in processing the separate rates applications in the
antidumping duty investigations of Artists Canvas, Diamond Sawblades
and CLPP (see Initiation of Antidumping Duty Investigation: Certain
Artist Canvas From the People's Republic of China, 70 FR 21996, 21999
(April 28, 2005), Initiation of Antidumping Duty Investigations:
Diamond Sawblades and Parts Thereof from the People's Republic of China
and the Republic of Korea, 70 FR 35625, 35629 (June 21, 2005), and
Initiation of Antidumping Duty Investigations: Certain Lined Paper
Products from India, Indonesia, and the People's Republic of China, 70
FR 58374, 58379 (October 6, 2005)), we have modified the application
for this investigation to make it more administrable and easier for
applicants to complete. The specific requirements for submitting the
separate-rates application in this investigation are outlined in detail
in the application itself, which will be available on the Department's
Website at http://ia.ita.doc.gov on the date of publication of this
initiation notice in the Federal Register. Please refer to this
application for all instructions.
NME Respondent Selection and Quantity and Value Questionnaire
For NME investigations, it is the Department's practice to request
quantity and value information from all known exporters identified in
the petition. In addition, the Department typically requests the
assistance of the NME government in transmitting the Department's
quantity and value questionnaire to all companies who manufacture and
export subject merchandise to the United States, as well as to
manufacturers who produce the subject merchandise for companies who
were engaged in exporting subject merchandise to the United States
during the period of investigation. The quantity and value data
received from NME exporters is used as the basis to select the
mandatory respondents. Although many NME exporters respond to the
quantity and value information request, at times some exporters may not
have received the quantity and value questionnaire or may not have
received it in time to respond by the specified deadline.
The Department is now publicizing its requirement that quantity and
value responses must be submitted for both the quantity and value
questionnaire and the separate-rates application by the respective
deadlines in order to receive consideration for separate-rate status.
This new procedure will be applied to all future investigations.
Appendix I of this notice contains the quantity and value questionnaire
that must be submitted by all NME exporters. In addition, the
Department will post the quantity and value questionnaire along with
the filing instructions on the IA Website (http://ia.ita.doc.gov). This
quantity and value questionnaire is due no later than 15 calendar days
from the date of publication of this notice. Consistent with Department
practice, if a deadline
[[Page 72786]]
falls on a weekend, federal holiday, or any other day when the
Department is closed, the Department will accept the response on the
next business day. See Notice of Clarification: Application of ``Next
Business Day'' rule for Administrative Determination Deadlines Pursuant
to the Tariff Act of 1930, as amended, 70 FR 24533 (May 10, 2005). The
Department will continue to send the quantity and value questionnaire
to those exporters identified in the Petition and the NME government.
Use of Combination Rates in an NME Investigation
The Department will calculate combination rates for certain
respondents that are eligible for a separate rate in this
investigation. The Separate Rates and Combination Rates Bulletin,
states:
{w{time} hile continuing the practice of assigning separate rates
only to exporters, all separate rates that the Department will now
assign in its NME investigations will be specific to those producers
that supplied the exporter during the period of investigation. Note,
however, that one rate is calculated for the exporter and all of the
producers which supplied subject merchandise to it during the period of
investigation. This practice applies both to mandatory respondents
receiving an individually calculated separate rate as well as the pool
of non-investigated firms receiving the weighted-average of the
individually calculated rates. This practice is referred to as the
application of ``combination rates'' because such rates apply to
specific combinations of exporters and one or more producers. The cash-
deposit rate assigned to an exporter will apply only to merchandise
both exported by the firm in question and produced by a firm that
supplied the exporter during the period of investigation.
Separate Rates and Combination Rates Bulletin, at page 6.
Distribution of Copies of the Petitions
In accordance with section 732(b)(3)(A) of the Act, copies of the
public versions of the Petition has been provided to the Government of
Germany, the Government of Turkey, and the Government of the PRC.
International Trade Commission Notification
We have notified the ITC of our initiations, as required by section
732(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 25 days after the date
on which it receives notice of these initiations, whether there is a
reasonable indication that imports of CASWR from Germany, Turkey and
the PRC are causing material injury, or threatening to cause material
injury, to a U.S. industry. See section 733(a)(2) of the Act. A
negative ITC determination will result in the investigations being
terminated; otherwise, these investigations will proceed according to
statutory and regulatory time limits.
This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: November 30, 2005.
Stephen J. Claeys,
Acting Assistant Secretary for Import Administration.
ATTACHMENT I
Where it is not practicable to examine all known producers/
exporters of subject merchandise, section 777A(c)(2) of the Tariff Act
of 1930 (as amended) permits us to investigate 1) a sample of
exporters, producers, or types of products that is statistically valid
based on the information available at the time of selection, or 2)
exporters and producers accounting for the largest volume and value of
the subject merchandise that can reasonably be examined.
In the chart provided below, please provide the total quantity and
total value of all your sales of merchandise covered by the scope of
this investigation (see scope section of this notice), produced in the
PRC, and exported/shipped to the United States during the period April
1, 2005, through September 30, 2005.
----------------------------------------------------------------------------------------------------------------
Market Total Quantity Terms of Sale Total Value
----------------------------------------------------------------------------------------------------------------
United States..........................................
--------------------------------------------------------
1. Export Price Sales..................................
2......................................................
a. Exporter name...............................
b. Address.....................................
c. Contact.....................................
d. Phone No....................................
e. Fax No......................................
3. Constructed Export Price Sales......................
4. Further Manufactured................................
Total Sales............................................
----------------------------------------------------------------------------------------------------------------
Total Quantity:
Please report quantity on a short ton basis. If any
conversions were used, please provide the conversion formula and
source.
Terms of Sales:
Please report all sales on the same terms (e.g., free on
board).
Total Value:
All sales values should be reported in U.S. Dollars.
Please indicate any exchange rates used and their respective dates and
sources.
Export Price Sales:
Generally, a U.S. sale is classified as an export price
sale when the first sale to an unaffiliated person occurs before
importation into the United States.
Please include any sales exported by your company directly
to the United States;
Please include any sales exported by your company to a
third-country market economy reseller where you had knowledge that the
merchandise was destined to be resold to the United States.
If you are a producer of subject merchandise, please
include any sales manufactured by your company that were subsequently
exported by an affiliated exporter to the United States.
Please do not include any sales of merchandise
manufactured in Hong Kong in your figures.
[[Page 72787]]
Constructed Export Price Sales:
Generally, a U.S. sale is classified as a constructed
export price sale when the first sale to an unaffiliated person occurs
after importation. However, if the first sale to the unaffiliated
person is made by a person in the United States affiliated with the
foreign exporter, constructed export price applies even if the sale
occurs prior to importation.
Please include any sales exported by your company directly
to the United States;
Please include any sales exported by your company to a
third-country market economy reseller where you had knowledge that the
merchandise was destined to be resold to the United States.
If you are a producer of subject merchandise, please
include any sales manufactured by your company that were subsequently
exported by an affiliated exporter to the United States.
Please do not include any sales of merchandise
manufactured in Hong Kong in your figures.
Further Manufactured:
Further manufacture or assembly costs include amounts
incurred for direct materials, labor and overhead, plus amounts for
general and administrative expense, interest expense, and additional
packing expense incurred in the country of further manufacture, as well
as all costs involved in moving the product from the U.S. port of entry
to the further manufacturer.
[FR Doc. 05-23738 Filed 12-6-05; 8:45 am]
BILLING CODE 3510-DS-S