67 FR 31181, May 9, 2002

DEPARTMENT OF COMMERCE

International Trade Administration

[A-357-816]
 
Notice of Preliminary Determination of Sales at Less Than Fair 
Value, Postponement of Final Determination, and Preliminary Negative 
Determination of Critical Circumstances: Certain Cold-Rolled Carbon 
Steel Flat Products From Argentina

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

ACTION: Notice of preliminary determination of sales at less than fair 
value and preliminary negative determination of critical circumstances.

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

SUMMARY: We preliminarily determine that certain cold-rolled carbon 
steel flat products from Argentina are being, or are likely to be, sold 
in the United States at less than fair value, as provided in section 
733(b) of the Tariff Act of 1930, as amended. In addition, we 
preliminarily determine that critical circumstances do not exist for 
imports of cold-rolled carbon steel flat products from Argentina.
    Interested parties are invited to comment on this preliminary 
determination.

EFFECTIVE DATE: May 9, 2002.

FOR FURTHER INFORMATION CONTACT: J. David Dirstine, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 
20230; telephone: (202) 482-4033.

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. In addition, unless 
otherwise indicated, all citations to the Department of Commerce 
(``Department's'') regulations are to the regulations at 19 CFR part 
351 (April 2001).

Background

    Since the initiation of this investigation (Initiation of 
Antidumping Duty Investigations: Certain Cold-Rolled Carbon Steel Flat 
Products From Argentina, Australia, Belgium, Brazil, France, Germany, 
India, Japan, Korea, the Netherlands, New Zealand, the People's 
Republic of China, the Russian Federation, South Africa, Spain, Sweden, 
Taiwan, Thailand, Turkey and Venezuela, 66 FR 54198 (October 26, 2001) 
(``Initiation Notice'')), the following events have occurred.
    On November 13, 2001, the United States International Trade 
Commission (``ITC'') preliminarily determined that there is a 
reasonable indication that imports of certain cold-rolled steel 
products from Argentina are materially injuring the United States 
industry (see Certain Cold-Rolled Steel Products From Argentina, 
Australia, Belgium, Brazil, France, Germany, India, Japan, Korea, the 
Netherlands, New Zealand, the People's Republic of China, the Russian 
Federation, South Africa, Spain, Sweden, Taiwan, Thailand, Turkey and 
Venezuela, 66 FR 57985 (November 19, 2001)).
    On November 29, 2001, we selected the largest producer/exporter of 
cold-rolled steel from Argentina as a mandatory respondent in this 
proceeding. (See Memorandum to Laurie Parkhill, Director Office 3, from 
The Team regarding Selection of Respondents dated November 29, 2001, 
for further details.) We issued the antidumping questionnaire to 
Siderar S.A.I.C. (``Siderar'') on November 29, 2001.
    On December 7, 2001, the petitioners \1\ alleged that there is a 
reasonable basis to believe or suspect critical circumstances exist 
with respect to the antidumping investigations of cold-rolled carbon 
steel flat products from Argentina, Australia, China, India, the 
Netherlands, Russia, South Africa, South Korea, and Taiwan. On December 
14, 2001, the petitioners supplemented

[[Page 31182]]

their December 7, 2001, submission with additional information.
---------------------------------------------------------------------------

    \1\ The petitioners in the concurrent antidumping duty 
investigations are Bethlehem Steel Corporation, LTV Steel Company, 
National Steel Corporation, Nucor Corporation, Steel Dynamics, Inc., 
United States Steel LLC, WCI Steel, Inc., and Weirton Steel 
Corporation. Weirton Steel Corporation is not a petitioner in the 
Netherlands case. Effective January 1, 2002, the party previously 
known as ``United States Steel LLC'' changed its name to ``United 
States Steel Corporation.''
---------------------------------------------------------------------------

    During the period January through April 2002, the Department 
received responses to sections A, B, and C, of the Department's 
original and supplemental questionnaires from Siderar.
    On February 7, 2002, pursuant to 19 CFR 351.205(e), the petitioners 
made a timely request to postpone the preliminary determination. We 
granted this request on February 14, 2002, and postponed the 
preliminary determination until no later than April 26, 2002. (See 
Postponement of Preliminary Determinations of Antidumping Duty 
Investigations: Certain Cold-Rolled Carbon Steel Flat Products from 
Argentina, Australia, Belgium, Brazil, France, Germany, India, Japan, 
Korea, the Netherlands, New Zealand, the People's Republic of China, 
the Russian Federation, South Africa, Spain, Sweden, Taiwan, Thailand, 
Turkey and Venezuela, 67 FR 8227 (February 22, 2002)).
    On February 15, 2002, we received an allegation from the 
petitioners that Siderar sold cold-rolled products in Argentina at 
prices below the cost of production during the period of investigation. 
Based on our analysis of the allegation we determined that there are 
reasonable grounds to believe or suspect that Siderar had made home-
market sales below its cost of production and on March 15, 2002, we 
initiated a sales-below-cost investigation of Siderar's home-market 
sales.
    In accordance with 19 CFR 351.206(c)(2)(i), because the petitioners 
submitted the critical circumstances allegation more than twenty days 
before the scheduled date of the preliminary determination, the 
Department must issue the preliminary critical circumstances 
determination not later than the date of the preliminary determination. 
A full discussion of our analysis may be found below and in the 
critical circumstances memorandum from Richard W. Moreland to Faryar 
Shirzad, dated April 26, 2002 (Preliminary Negative Determination of 
Critical Circumstances--Argentina). A public version of this memorandum 
is on file at the Import Administration Central Records Unit, in Room 
B-099 of the Department of Commerce Building.

Postponement of Final Determination and Extension of Provisional 
Measures

    Pursuant to section 735(a)(2) of the Act, on April 18, 2002, 
Siderar requested that, in the event of an affirmative preliminary 
determination in this investigation, the Department postpone its final 
determination until not later than 135 days after the date of the 
publication of the preliminary determination in the Federal Register 
and extend the provisional measures to not more than six months. In 
accordance with 19 CFR 351.210(b)(2)(ii) and (e), because (1) our 
preliminary determination is affirmative, (2) Siderar accounts for a 
significant proportion of exports of the subject merchandise, and (3) 
no compelling reasons for denial exist, we are granting the 
respondent's request and are postponing the final determination until 
no later than 135 days after the publication of this notice in the 
Federal Register. Suspension of liquidation will be extended 
accordingly.

Scope of Investigation

    For purposes of this investigation, the products covered are 
certain cold-rolled (cold-reduced) flat-rolled carbon-quality steel 
products. For a full description of the scope of this investigation, 
please see the Scope Appendix attached to this notice.

Period of Investigation

    The period of investigation (``POI'') is July 1, 2000, through June 
30, 2001.

Fair Value Comparisons

    To determine whether sales of cold-rolled steel from Argentina to 
the United States were made at less than fair value (``LTFV''), we 
compared the export price (``EP'') or constructed export price 
(``CEP'') to the normal value (``NV''), as described in the ``Export 
Price,'' ``Constructed Export Price,'' and ``Normal Value'' sections of 
this notice, below. In accordance with section 777A(d)(1)(A)(i) of the 
Act, we compared POI weighted-average EPs or CEPs to weighted-average 
NVs.

Product Comparisons

    In accordance with section 771(16) of the Act, we considered all 
products produced and sold by the respondent in the home market during 
the POI that fit the description in the ``Scope of Investigation'' 
section of this notice to be foreign like products for purposes of 
determining appropriate product comparisons to U.S. sales. We compared 
U.S. sales to sales of identical merchandise made in the home market. 
Where there were no sales of identical merchandise in the home market 
made in the ordinary course of trade to compare to U.S. sales, we 
compared U.S. sales to sales of the most similar foreign like product 
made in the ordinary course of trade. In making the product 
comparisons, we matched foreign like products based on the physical 
characteristics reported by the respondents in the following order of 
importance: hardening and tempering, painting, carbon level, quality, 
yield strength, minimum thickness, thickness tolerance, edge finish, 
form, leveling, annealing, and surface finish.

Export Price

    In accordance with section 772(a) of the Act, we calculated EP for 
those sales where the merchandise was sold to the first unaffiliated 
purchaser in the United States prior to importation or to an 
unaffiliated purchaser for exportation to the United States. We based 
EP on the packed delivered price to unaffiliated purchasers in the 
United States. We also made deductions for movement expenses in 
accordance with section 772(c)(2)(A) of the Act; these included, where 
appropriate, ocean freight, marine insurance, U.S. brokerage and 
handling, U.S. customs duties (including harbor maintenance fees and 
merchandise processing fees), and U.S. inland freight expenses (freight 
from port to the customer).

Constructed Export Price

    In accordance with section 772(b) of the Act, we calculated CEP for 
those sales where the merchandise was sold (or agreed to be sold) in 
the United States, before or after the date of importation, by or for 
the account of the producer or exporter, or by a seller affiliated with 
the producer or exporter, to an unaffiliated purchaser.
    We based CEP on packed FOB prices to unaffiliated purchasers in the 
United States. We also made deductions for movement expenses in 
accordance with section 772(c)(2)(A) of the Act. These included, where 
appropriate, domestic inland freight (i.e., inland freight expense from 
plant/warehouse to port of exit), ocean freight, marine insurance, U.S. 
brokerage and handling, U.S. customs duties, U.S. stevedoring and 
wharfage charges, and U.S. inland freight expenses (i.e., freight from 
port to customer). In accordance with section 772(d)(1) of the Act and 
19 CFR 351.402(b), we deducted those selling expenses associated with 
economic activities occurring in the United States, including direct 
selling expenses (e.g., imputed credit costs) and indirect selling 
expenses (e.g., inventory carrying costs).
    Pursuant to section 772(d)(3) of the Act, we reduced the starting 
price further by an amount for profit to arrive at the CEP. In 
accordance with section 772(f) of the Act, we calculated the CEP profit 
rate using the expenses incurred by Siderar on its sales of the subject 
merchandise in the United States and the foreign like product in the 
home

[[Page 31183]]

market and the profit associated with those sales. See Antidumping Duty 
Investigation on Cold-Rolled Carbon Steel Flat Products from 
Argentina--Preliminary Determination Analysis Memorandum for Siderar 
S.A.I.C. (``Siderar'') from J. David Dirstine to File, dated April 26, 
2002 (``Preliminary Analysis Memorandum'').

Normal Value

A. Home-Market Viability

    In order to determine whether there is a sufficient volume of sales 
in the home market to serve as a viable basis for calculating NV (i.e., 
the aggregate volume of home-market sales of the foreign like product 
is equal to or greater than five percent of the aggregate volume of 
U.S. sales), we compared the respondent's volume of home-market sales 
of the foreign like product to the volume of U.S. sales of the subject 
merchandise, in accordance with section 773(a)(1)(B) of the Act. 
Because the respondent's aggregate volume of home-market sales of the 
foreign like product was greater than five percent of its aggregate 
volume of U.S. sales for the subject merchandise, we determined that 
the home market is viable for the respondent.

B. Cost-of-Production Analysis

    Based on our analysis of a sales-below-cost allegation submitted by 
the petitioners on February 15, 2002, we found that there were 
reasonable grounds to believe or suspect that sales of cold-rolled 
steel in the home market were made at prices below their cost of 
production (COP) in accordance with section 773(b)(2)(A)(i) of the Act. 
Accordingly, pursuant to section 773(b) of the Act, we initiated an 
investigation of sales-below-cost for Siderar to determine whether 
sales were made at prices below their respective COP (see letter to 
Siderar from Laurie Parkhill, Office Director, AD/CVD Enforcement, 
dated March 15, 2002).
2. Calculation of COP
    In accordance with section 773(b)(3) of the Act, we calculated COP 
based on the sum of the cost of materials and fabrication for the 
foreign like product, plus an amount for general and administrative 
expenses (``G&A'') and interest expenses (see ``Test of Home-Market 
Sales Prices'' section below for treatment of home-market selling 
expenses). We relied on the COP data submitted by Siderar except as 
noted below.
    A. We adjusted the reported transfer price for certain raw material 
inputs purchased from an affiliated company to reflect the market price 
for such inputs which, in turn, increased the total cost of 
manufacturing of each model.
    B. We have adjusted the total cost of manufacture upward to reflect 
the difference between product-specific and product grouping or product 
``family'' costs at the two plants where Siderar produced the subject 
merchandise. Siderar did not provide product-specific costs for the 
products produced at one of its plants, as we had requested, and we 
found that, for products where we had both product-specific and 
product-``family'' costs, the ``family'-specific costs were understated 
in comparison to the product-specific costs.
    C. We revised Siderar's G&A rate calculation to include other 
ordinary income, certain expense amounts, and termination of employee 
costs.
    D. We recalculated Siderar's financial-expense ratio. We divided 
the net interest expense reported on the financial statements 
(financial and holding results generated by liabilities less those 
generated by assets) by the cost of sales.
    See Memorandum from Laurens van Houten to Neal Halper, Director, 
Office of Accounting, dated April 26, 2002, Re: Cost of Production and 
Constructed Value Calculation Adjustments for the Preliminary 
Determination (``Cost Calculation Memorandum'').
2. Test of Home Market-Sales Prices
    On a product-specific basis, we compared the adjusted weighted-
average COP to the home-market sales of the foreign like product, as 
required under section 773(b) of the Act, in order to determine whether 
the sale prices were below the COP. The prices were exclusive of any 
applicable billing adjustments, movement charges, rebates, discounts, 
direct and indirect selling expenses, and packing expenses. In 
determining whether to disregard home-market sales made at prices less 
than their COP, we examined, in accordance with sections 773(b)(1)(A) 
and (B) of the Act, whether such sales were made (1) within an extended 
period of time in substantial quantities, and (2) at prices which 
permitted the recovery of all costs within a reasonable period of time.
3. Results of the COP Test
    Pursuant to section 773(b)(2)(C) of the Act, where less than 20 
percent of the respondent's sales of a given product during the POI are 
at prices less than the COP, we do not disregard any below-cost sales 
of that product because we determine that in such instances 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 
POI are at prices less than the COP, we determine that the below-cost 
sales represent ``substantial quantities'' within an extended period of 
time, in accordance with section 773(b)(1)(A) of the Act. In such 
cases, we also determine whether such sales were made at prices which 
would not permit recovery of all costs within a reasonable period of 
time, in accordance with section 773(b)(1)(B) of the Act.
    We found that, for certain specific products, more than 20 percent 
of Siderar's home-market sales were at prices less than the COP and, in 
addition, such sales did not provide for the recovery of costs within a 
reasonable period of time. We therefore excluded these sales and used 
the remaining sales, if any, as the basis for determining NV, in 
accordance with section 773(b)(1) of the Act. For those U.S. sales of 
subject merchandise for which there were no comparable home-market 
sales in the ordinary course of trade (e.g., at above-cost prices), we 
compared those sales to constructed value (``CV''), in accordance with 
section 773(a)(4) of the Act.
4. Calculation of Constructed Value
    Section 773(a)(4) of the Act provides that where NV cannot be based 
on comparison market sales, NV may be based on CV. Accordingly, for 
Siderar, when sales of comparison products could not be found, either 
because there were no sales of a comparable product or all sales of the 
comparable products failed the COP test, we based NV on CV.
    In accordance with section 773(e)(1) and (e)(2)(A) of the Act, we 
calculated CV based on the sum of the cost of materials and fabrication 
for the subject merchandise, plus amounts for selling expenses, G&A, 
interest, profit, and U.S. packing costs. We calculated the cost of 
materials and fabrication based on the methodology described in the 
``Calculation of COP'' section of this notice. In accordance with 
section 773(e)(2)(A) of the Act, we based selling expenses, G&A, and 
profit on the amounts incurred and realized by the company in 
connection with the production and sale of the foreign like product in 
the ordinary course of trade for consumption in the foreign market.

C. Level of Trade

    Section 773(a)(1)(B)(i) of the Act states that, to the extent 
practicable, the Department will calculate NV based on sales at the 
same level of trade (``LOT'') as the EP or CEP. Sales are made at 
different LOTs if they are made at different marketing stages (or their

[[Page 31184]]

equivalent). See 19 CFR 351.412(c)(2). Substantial differences in 
selling activities are a necessary, but not sufficient, condition for 
determining that there is a difference in the stages of marketing. Id.; 
see also Notice of Final Determination of Sales at Less Than Fair 
Value: Certain Cut-to-Length Carbon Steel Plate From South Africa, 62 
FR 61731, 61732 (November 19, 1997). In order to determine whether the 
comparison sales were at different stages in the marketing process than 
the U.S. sales, we reviewed the distribution system in each market 
(i.e., the ``chain of distribution''),\2\ including selling 
functions,\3\ class of customer (``customer category''), and the level 
of selling expenses for each type of sale.
---------------------------------------------------------------------------

    \2\ The marketing process in the United States and comparison 
markets begin with the producer and extends to the sale to the final 
user or consumer. The chain of distribution between the two may have 
many or few links, and the respondent's sales occur somewhere along 
this chain. In performing this evaluation, we considered the 
narrative responses of the respondent to properly determine where in 
the chain of distribution the sale appears to occur.
    \3\ Selling functions associated with a particular chain of 
distribution help us to evaluate the level(s) of trade in a 
particular market. For purposes of this preliminary determination, 
we have organized the common cold-rolled steel product functions 
into four major categories: sales process and marketing support, 
freight and delivery, inventory and warehousing, and quality 
assurance/warranty services.
---------------------------------------------------------------------------

    Pursuant to section 773(a)(1)(B)(i) of the Act, in identifying LOTs 
for EP and comparison-market sales (i.e., NV based on either home-
market or third-country prices), we consider the starting prices before 
any adjustments. For CEP sales, we consider only the selling activities 
reflected in the price after the deduction of expenses and profit under 
section 772(d) of the Act. See Micron Technology, Inc. v. United 
States, 243 F.3d 1301, 1314-1315 (Fed. Cir. March 7, 2001).
    When the Department is unable to find sales of the foreign like 
product in the comparison market at the same LOT as the EP or CEP, the 
Department may compare the U.S. sale to sales at a different LOT in the 
comparison market. In comparing EP or CEP sales at a different LOT in 
the comparison market, where available data make it practicable, we 
make a LOT adjustment under section 773(a)(7)(A) of the Act. Finally, 
for CEP sales only, if a NV level of trade is more remote from the 
factory than the CEP level of trade and there is no basis for 
determining whether the difference in LOTs between NV and CEP affected 
price comparability (i.e., no LOT adjustment was practicable), the 
Department shall grant a CEP offset, as provided in section 
773(a)(7)(B) of the Act. See Notice of Final Determination of Sales at 
Less Than Fair Value: Certain Cut-to-Length Carbon Steel Plate from 
South Africa, 62 FR 61731 (November 19, 1997).
    We obtained information from Siderar regarding the marketing stages 
involved in making the reported home-market and U.S. sales, including a 
description of the selling activities performed by the respondent for 
each channel of distribution. Siderar's LOT findings are summarized 
below.
    Siderar reported two channels of distribution in the home market--
steel service centers (i.e., distributors) and end-users. The selling 
activities associated with all sales were similar (e.g., freight and 
delivery arrangements, inventory maintenance, market research, sales 
forecasting and after-sales service) and, based on our analysis of the 
selling activities, we considered the two channels of distribution to 
constitute one LOT.
    In the U.S. market, Siderar reported two channels of distribution 
(i.e., CEP sales to its U.S. affiliate, Siderca Corporation, who sells 
``back-to-back'' to unaffiliated U.S. customers and maintains no 
inventory), and EP sales to unaffiliated customers in the United 
States. After making deductions pursuant to section 772(d) of the Act, 
we found that Siderar performed basically the same sales functions for 
both channels of distribution in the U.S. market (e.g., inventory 
maintenance, sales forecasting and after-sales service, market 
research, and freight and delivery arrangements) and we considered both 
of these channels to be the same LOT.
    Because the selling activities associated with the home-market LOT 
were not substantially different from than those associated with the 
U.S. LOT, we considered the home-market LOT to be the same as the U.S. 
LOT. Therefore, no LOT adjustment was necessary and we made no CEP-
offset adjustment to NV.

D. Calculation of Normal Value Based on Comparison-Market Prices

    We calculated NV based on delivered prices to unaffiliated 
customers. We made deductions, where appropriate, from the starting 
price for rebates. We also made deductions for movement expenses (i.e., 
inland freight expense from plant/warehouse to customer) under section 
773(a)(6)(B)(ii) of the Act. In addition, we made adjustments under 
section 773(a)(6)(C)(iii) of the Act and 19 CFR 351.410 for differences 
in circumstances of sale for imputed credit expenses and we adjusted 
for differences in merchandise where we were unable to match identical 
products. We also deducted home-market packing costs and added U.S. 
packing costs in accordance with section 773(a)(6)(A) and (B) of the 
Act. Finally, in accordance with section 773(a)(6)(B)(iii) of the Act, 
we made a reduction to NV for the amount of the indirect tax 
(``reintegro'') not collected on exports of subject merchandise to the 
United States.

Currency Conversion

    We made currency conversions into U.S. dollars in accordance with 
section 773A(a) of the Act based on the exchange rates in effect on the 
dates of the U.S. sales as certified by the Federal Reserve Bank.

Verification

    As provided in section 782(i) of the Act, we will verify all 
information relied upon in making our final determination.

Critical Circumstances

    Section 733(e)(1) of the Act provides that the Department will 
preliminarily determine that critical circumstances exist if there is a 
reasonable basis to believe or suspect that: (A)(i) there is a history 
of dumping and material injury by reason of dumped imports in the 
United States or elsewhere of the subject merchandise; or (ii) the 
person by whom, or for whose account, the merchandise was imported knew 
or should have known that the exporter was selling the subject 
merchandise at less than its fair value and that there was likely to be 
material injury by reason of such sales; and (B) there have been 
massive imports of the subject merchandise over a relatively short 
period.
    Section 351.206(h)(1) of the Department's regulations provides 
that, in determining whether imports of the subject merchandise have 
been ``massive,'' the Department normally will examine the following 
information: (i) the volume and value of the imports; (ii) seasonal 
trends; and (iii) the share of domestic consumption accounted for by 
the imports. In addition, section 351.206(h)(2) of the Department's 
regulations provides that, ``In general, unless the imports during the 
``relatively short period'' have increased by at least 15 percent over 
the imports during an immediately preceding period of comparable 
duration, the Secretary will not consider the imports massive.''
    Section 351.206(i) of the Department's regulations defines 
``relatively short period'' as generally the period beginning on the 
date the proceeding begins (i.e., the date the petition is filed) and 
ending at least three months later. This section provides further that, 
if the

[[Page 31185]]

Department ``finds that importers, or exporters or producers, had 
reason to believe, at some time prior to the beginning of the 
proceeding, that a proceeding was likely,'' then the Department may 
consider a period of not less than three months from that earlier time.
    In determining whether the above statutory criteria have been 
satisfied, we examined the following information: (1) The evidence 
presented in the petitioners' submissions of December 7, 2001, and 
January 14, 2002; (2) new evidence obtained since the initiation of the 
less-than-fair-value (``LTFV'') investigations (i.e., additional import 
statistics released by the Census Bureau); and (3) the ITC's 
affirmative preliminary injury determination (see Certain Cold-Rolled 
Steel Products From Argentina, Australia, Belgium, Brazil, China, 
France, Germany, India, Japan, Korea, Netherlands, New Zealand, Russia, 
South Africa, Spain, Sweden, Taiwan, Thailand, Turkey, and Venezuela, 
International Trade Commission Investigations Nos. 701-TA-422-425 and 
731-TA-964-983 Preliminary Determination, 66 FR 57985 (November 19, 
2001)).

History of Dumping

    In determining whether a history of dumping and material injury 
exists, the Department generally considers current or recent 
antidumping duty orders on the subject merchandise from the country in 
question in the United States and current orders in any other country. 
See Carbon and Alloy Steel Wire Rod From Germany, Mexico, Moldova, 
Trinidad and Tobago, and Ukraine: Notice of Preliminary Determination 
of Critical Circumstances, 67 FR 6224 (February 11, 2002) (Carbon and 
Alloy Steel Wire Rod). Because we are not aware of any existing 
antidumping order in any country on cold-rolled carbon steel flat 
products from Argentina, we do not find a history of dumping from 
Argentina, pursuant to section 733(e)(1)(A)(i) of the Act. However, the 
Department may look to the second criterion for determining whether 
importers knew or should have known that exporters were selling subject 
merchandise from Argentina at LTFV prices.

Importer Knowledge of Injurious Dumping

    In determining whether there is a reasonable basis to believe or 
suspect that an importer knew or should have known the exporter was 
selling cold-rolled steel at less than fair value, the Department 
normally considers margins of 25 percent or more for export price (EP) 
sales and 15 percent or more for CEP sales sufficient to impute 
importer knowledge of sales at LTFV. See Carbon and Alloy Steel Wire 
Rod, 67 FR 6224, 6225.
    The Department normally bases its decision with respect to 
knowledge on the margins determined in the preliminary determination. 
Therefore, for purposes of this preliminary determination of critical 
circumstances, we are relying on the margin calculated for Siderar for 
this preliminary determination. Because this margin is greater than 25 
percent (see ``Suspension of Liquidation'' section below) in the case 
of Argentina, which has both EP and CEP sales, we find that there is a 
reasonable basis to impute knowledge of dumping with respect to imports 
from Argentina.

Material Injury

    In determining whether there is a reasonable basis to believe or 
suspect that an importer knew or should have known that there was 
likely to be material injury by reason of dumped imports, the 
Department normally will look to the preliminary injury determination 
of the ITC. If the ITC finds a reasonable indication of present 
material injury to the relevant U.S. industry, the Department will 
determine that a reasonable basis exists to impute importer knowledge 
that material injury is likely by reason of dumped imports. See Final 
Determination of Sales at Less Than Fair Value: Certain Cut-To-Length 
Carbon Steel Plate from the People's Republic of China, 62 FR 61964 
(November 20, 1997). In this case, the ITC preliminarily found that 
there is a reasonable indication that an industry in the United States 
is materially injured or threatened with material injury by reason of 
imports of subject merchandise from South Africa. See Determinations 
and Views of the Commission, Investigations Nos. 701-TA-422-425 and 
731-TA-964-983, Publication 3471 (November 2001) (ITC Determination). 
Due to the ITC's finding of material injury, we preliminarily determine 
that there is a reasonable basis to believe or suspect that importers 
knew or should have known that imports of cold-rolled steel from 
Argentina were likely to cause material injury.

Massive Imports

    In determining whether there are ``massive imports'' over a 
``relatively short period,'' pursuant to section 733(e)(1)(B) of the 
Act, the Department normally compares the import volumes of the subject 
merchandise for at least three months immediately preceding the filing 
of the petition (i.e., the ``base period'') to a comparable period of 
at least three months following the filing of the petition (i.e., the 
``comparison period''). However, as stated in 19 CFR 351.206(i), ``if 
the Secretary finds importers, or exporters or producers, had reason to 
believe, at some time prior to the beginning of the proceeding, that a 
proceeding was likely, then the Secretary may consider a time period of 
not less than three months from that earlier time.'' Imports normally 
will be considered massive when imports during the comparison period 
have increased by 15 percent or more compared to imports during the 
base period. We used company-specific shipment data and determined that 
there were no massive imports. We also found no massive imports for 
companies in the all other category. For a detailed analysis, see the 
memorandum from Richard Moreland to Faryar Shirzad, dated April 26, 
2002 (Preliminary Negative Determination of Critical Circumstances--
Argentina).

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, we are directing 
the Customs Service to suspend liquidation of all imports of subject 
merchandise that are entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of this notice in the 
Federal Register. We will instruct the Customs Service to require a 
cash deposit or the posting of a bond equal to the weighted-average 
amount by which the NV exceeds the CEP, as indicated in the chart 
below. These suspension-of-liquidation instructions will remain in 
effect until further notice. The weighted-average dumping margins are 
as follows:

------------------------------------------------------------------------
                                                              Weighted-
                                                               average
                   Exporter/manufacturer                        margin
                                                              percentage
------------------------------------------------------------------------
Siderar....................................................        70.56
All Others.................................................    ** 70.56
------------------------------------------------------------------------
** As Siderar was the only respondent that we investigated, we used
  Siderar's margin as the all-others rate.

ITC Notification

    In accordance with section 733(f) of the Act, we have notified the 
ITC of our determination. If our final determination is affirmative, 
pursuant to 735(b)(2) the ITC will determine before the later of 120 
days after the date of this preliminary determination or 45 days after 
our final determination whether these imports are materially injuring, 
or threaten material injury to, the U.S. industry.

[[Page 31186]]

Disclosure

    We will disclose the calculations used in our analysis to parties 
in this proceeding in accordance with 19 CFR 351.224(b).

Public Comment

    Case briefs for this investigation must be submitted to the 
Department no later than seven days after the date of the final 
verification report issued in this proceeding. Rebuttal briefs must be 
filed five days from the deadline date for case briefs. A list of 
authorities used, a table of contents, and an executive summary of 
issues should accompany any briefs submitted to the Department. 
Executive summaries should be limited to five pages total, including 
footnotes. Section 774 of the Act provides that the Department will 
hold a public hearing to afford interested parties an opportunity to 
comment on arguments raised in case or rebuttal briefs, provided that 
such a hearing is requested by an interested party. If a request for a 
hearing is made in this investigation, the hearing will tentatively be 
held three days after the rebuttal brief deadline date at the U.S. 
Department of Commerce, 14th Street and Constitution Avenue, N.W., 
Washington, D.C. 20230. Parties should confirm by telephone the time, 
date, and place of the hearing 48 hours before the scheduled time.
    Interested parties who wish to request a hearing, or to participate 
if one is requested, must submit a written request to the Assistant 
Secretary for Import Administration, U.S. Department of Commerce, Room 
1870, within 30 days of the publication of this notice. Requests should 
contain: (1) The party's name, address, and telephone number; (2) the 
number of participants; and (3) a list of the issues to be discussed. 
Oral presentations will be limited to issues raised in the briefs.
    We will make our final determination by no later than 135 days 
after the publication of this notice in the Federal Register.
    This determination is published pursuant to sections 733(f) and 
777(i) of the Act.

    Dated: April 26, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix

Scope of the Investigations

    For purposes of this investigation, the products covered are 
certain cold-rolled (cold-reduced) flat-rolled carbon-quality steel 
products, neither clad, plated, nor coated with metal, but whether 
or not annealed, painted, varnished, or coated with plastics or 
other non-metallic substances, both in coils, 0.5 inch wide or 
wider, (whether or not in successively superimposed layers and/or 
otherwise coiled, such as spirally oscillated coils), and also in 
straight lengths, which, if less than 4.75 mm in thickness having a 
width that is 0.5 inch or greater and that measures at least 10 
times the thickness; or, if of a thickness of 4.75 mm or more, 
having a width exceeding 150 mm and measuring at least twice the 
thickness. The products described above may be rectangular, square, 
circular or other shape and include products of either rectangular 
or non-rectangular cross-section.
    Specifically included in this scope are vacuum degassed, fully 
stabilized (commonly referred to as interstitial-free (IF)) steels, 
high strength low alloy (HSLA) steels, and motor lamination steels. 
IF steels are recognized as low carbon steels with micro-alloying 
levels of elements such as titanium and/or niobium added to 
stabilize carbon and nitrogen elements. HSLA steels are recognized 
as steels with micro-alloying levels of elements such as chromium, 
copper, niobium, titanium, vanadium, and molybdenum. Motor 
lamination steels contain micro-alloying levels of elements such as 
silicon and aluminum.
    Steel products included in the scope of this investigation, 
regardless of definitions in the HTSUS, are products in which: (1) 
Iron predominates, by weight, over each of the other contained 
elements; (2) the carbon content is 2 percent or less, by weight, 
and; (3) none of the elements listed below exceeds the quantity, by 
weight, respectively indicated: 1.80 percent of manganese, or 2.25 
percent of silicon, or 1.00 percent of copper, or 0.50 percent of 
aluminum, or 1.25 percent of chromium, or 0.30 percent of cobalt, or 
0.40 percent of lead, or 1.25 percent of nickel, or 0.30 percent of 
tungsten, or 0.10 percent of molybdenum, or 0.10 percent of niobium 
(also called columbium), or 0.15 percent of vanadium, or 0.15 
percent of zirconium.
    All products that meet the written physical description, and in 
which the chemistry quantities do not exceed any one of the noted 
element levels listed above, are within the scope of this 
investigation unless specifically excluded. The following products, 
by way of example, are outside and/or specifically excluded from the 
scope of this investigation:
     SAE grades (formerly also called AISI grades) above 
2300;
     Ball bearing steels, as defined in the HTSUS;
     Tool steels, as defined in the HTSUS; Silico-manganese 
steel, as defined in the HTSUS;
     Silicon-electrical steels, as defined in the HTSUS, 
that are grain-oriented;
     Silicon-electrical steels, as defined in the HTSUS, 
that are not grain-oriented and that have a silicon level exceeding 
2.25 percent;
     All products (proprietary or otherwise) based on an 
alloy ASTM specification (sample specifications: ASTM A506, A507);
     Non-rectangular shapes, not in coils, which are the 
result of having been processed by cutting or stamping and which 
have assumed the character of articles or products classified 
outside chapter 72 of the HTSUS;
     Silicon-electrical steels, as defined in the HTSUS, 
that are not grain-oriented and that have a silicon level less than 
2.25 percent, and (a) fully-processed, with a core loss of less than 
0.14 watts/pound per mil (0.001 inch), or (b) semi-processed, with 
core loss of less than 0.085 watts/pound per mil (0.001 inch);
     Certain shadow mask steel, which is aluminum killed 
cold-rolled steel coil that is open coil annealed, has an ultra-
flat, isotropic surface, and which meets the following 
characteristics:

Thickness: 0.001 to 0.010 inch
Width: 15 to 32 inches
Chemical Composition:

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

------------------------------------------------------------------------
Element....................................  C
------------------------------------------------------------------------
Weight %...................................  0.002%
------------------------------------------------------------------------

     Certain flapper valve steel, which is hardened and 
tempered, surface polished, and which meets the following 
characteristics:

Thickness: 1.0 mm
Width: 152.4 mm
Chemical Composition:

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

----------------------------------------------------------------------------------------------------------------------------------
Element...........................  C                       Si                      Mn                      P                      S
--------------------------------------------------------------------------------------------------------------------------------------------------------
Weight%...........................  0.90-1.05               0.15-0.35               0.30-0.50               0.03        0.006
--------------------------------------------------------------------------------------------------------------------------------------------------------

Mechanical Properties:

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

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

[[Page 31187]]


Hardness...............................  475 Vickers hardness number
----------------------------------------------------------------------------------------------------------------

Physical Properties:

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

----------------------------------------------------------------------------------------------------------------
Flatness...............................  0.2% of nominal strip width
----------------------------------------------------------------------------------------------------------------

Microstructure: Completely free from decarburization. Carbides are 
spheroidal and fine within 1% to 4% (area percentage) and are 
undissolved in the uniform tempered martensite.
Non-metallic Iclusion:

------------------------------------------------------------------------
                                              Area percentage
------------------------------------------------------------------------
Sulfide Inclusion................  0.04 %
Oxide Inclusion..................  0.05%
------------------------------------------------------------------------

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

------------------------------------------------------------------------
          Thickness (mm)                   Roughness (m)
------------------------------------------------------------------------
t 0.209...............  Rz 0.5
0.209 t 0.310.........  Rz 0.6
0.310 t 0.440.........  Rz 0.7
0.440 t 0.560.........  Rz 0.8
0.560 t..........................  Rz 1.0
------------------------------------------------------------------------

     Certain ultra thin guage steel strip, which meets the 
following characteristics:

Thickness: 0.100 mm  7%
Width: 100 to 600 mm
Chemical Composition:

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

--------------------------------------------------------------------------------------------------------------------------------------------------------
Element.........................  C                   Mn                  P                   S                   A1                  Fe
--------------------------------------------------------------------------------------------------------------------------------------------------------
Weight %........................  0.07     0.2-0.5             0.05     0.05     0.07     Balance
--------------------------------------------------------------------------------------------------------------------------------------------------------

Mechanical Properties:

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

----------------------------------------------------------------------------------------------------------------
Hardness...............................  Full Hard (Hv 180 minimum)
Total Elongation.......................  3%
Tensile Strength.......................  600 to 850 N/mm
----------------------------------------------------------------------------------------------------------------

Physical Properties:

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

----------------------------------------------------------------------------------------------------------------
Surface Finish.........................  0.3 micron
Camber (in 2.0 m)......................  3.0 mm
Flatness (in 2.0 m)....................  0.5 mm
Edge Burr..............................  0.01 mm greater than thickness
Coil Set (in 1.0 m)....................  75.0 mm
----------------------------------------------------------------------------------------------------------------

     Certain silicon steel, which meets the following 
characteristics:

Thickness: 0.024 inch  .0015 inch
Width: 33 to 45.5 inches
Chemical Composition:

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

--------------------------------------------------------------------------------------------------------------------------------------------------------
Element.........................  C                   Mn                  P                            S          Si                  Al
--------------------------------------------------------------------------------------------------------------------------------------------------------
Min. Weight %...................                                                                                  0.65
Max. Weight %...................  0.004               0.4                 0.09                0.009                                   0.4
--------------------------------------------------------------------------------------------------------------------------------------------------------

Mechanical Properties:

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

------------------------------------------------------------------------
Hardness..........................  B 60-75 (AIM 65)
------------------------------------------------------------------------

Physical Properties:

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

----------------------------------------------------------------------------------------------------------------
Finish..............................  Smooth (30-60 microinches)
Gamma Crown (in 5 inches)...........  0.0005 inch, start measuring one-quarter inch from slit edge
Flatness............................  20 I-UNIT max
Coating.............................  C3A-.08A max. (A2 coating acceptable)
Camber (in any 10 feet).............  \1/16\ inch
Coil Size I.D.......................  20 inches
----------------------------------------------------------------------------------------------------------------

Magnetic Properties:

[[Page 31188]]



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

------------------------------------------------------------------------
Core Loss (1.5T/60 Hz) NAAS.....  3.8 Watts/Pound max
Permeability (1.5T/60 Hz) NAAS..  1700 gauss/oersted typical
                                  1500 minimum
------------------------------------------------------------------------

     Certain aperture mask steel, which has an ultra-flat 
surface flatness and which meets the following characteristics:

Thickness: 0.025 to 0.245 mm
Width: 381-1000 mm
Chemical Composition:

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

--------------------------------------------------------------------------------------------------------------------------------------------------------
Element............................                    C                                      N                                      Al
--------------------------------------------------------------------------------------------------------------------------------------------------------
Weight %...........................  0.01                                   0.004 to 0.007                         0.007
--------------------------------------------------------------------------------------------------------------------------------------------------------

     Certain annealed and temper-rolled cold-rolled 
continuously cast steel, which meets the following characteristics:

Chemical Composition:

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

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Element........................       C            Mn           P                S                Si               Al               As           Cu               B                    N
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Min. Weight %..................  0.02         0.20                                                        0.03                                                                0.003
Max. Weight %..................  0.06         0.40         0.02         0.023 (Aiming 0.018  0.03         0.08 (Aiming 0.05)   0.02         0.08                              0.008 (Aiming
                                                                         Max.)                                                                                                 0.005)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Non-metallic Inclusions: Examination with the S.E.M. shall not 
reveal individual oxides >1 micron (0.000039 inch) and inclusion 
groups or clusters shall not exceed 5 microns (0.000197 inch) in 
length.
Surface Treatment as follows: The surface finish shall be free of 
defects (digs, scratches, pits, gouges, slivers, etc.) and suitable 
for nickel plating.
Surface Finish:

----------------------------------------------------------------------------------------------------------------
                                                    Roughness, RA Microinches (Micrometers)
                             -----------------------------------------------------------------------------------
                                          Aim                        Min.                        Max.
----------------------------------------------------------------------------------------------------------------
Extra Bright................  5 (0.1)...................  0 (0).....................  7 (0.2)
----------------------------------------------------------------------------------------------------------------

     Certain annealed and temper-rolled cold-rolled 
continuously cast steel, in coils, with a certificate of analysis 
per Cable System International (``CSI'') Specification 96012, with 
the following characteristics:

Chemical Composition:

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

--------------------------------------------------------------------------------------------------------------------------------------------------------
Element.........................                C                            Mn                             P                             S
--------------------------------------------------------------------------------------------------------------------------------------------------------
Max. Weight %...................  0.13                          0.60                          0.02                          0.05
--------------------------------------------------------------------------------------------------------------------------------------------------------

Physical and Mechanical Properties:

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

------------------------------------------------------------------------
Base Weight............................  55 pounds
Theoretical Thickness..................  0.0061 inch (10
                                          percent of theoretical
                                          thickness)
Width..................................  31 inches
Tensile Strength.......................  45,000-55,000 psi
Elongation.............................  minimum of 15 percent in 2
                                          inches
------------------------------------------------------------------------

     Concast cold-rolled drawing quality sheet steel, ASTM 
a-620-97, Type B, or single reduced black plate, ASTM A-625-92, Type 
D, T-1, ASTM A-625-76 and ASTM A-366-96, T1-T2-T3 Commercial bright/
luster 7a both sides, RMS 12 maximum. Thickness range of 0.0088 to 
0.038 inches, width of 23.0 inches to 36.875 inches.
     Certain single reduced black plate, meeting ASTM A-625-
98 specifications, 53 pound base weight (0.0058 inch thick) with a 
Temper classification of T-2 (49-57 hardness using the Rockwell 30 T 
scale).
     Certain single reduced black plate, meeting ASTM A-625-
76 specifications, 55 pound base weight, MR type matte finish, TH 
basic tolerance as per A263 trimmed.
     Certain single reduced black plate, meeting ASTM A-625-
98 specifications, 65 pound base weight (0.0072 inch thick) with a 
Temper classification of T-3 (53-61 hardness using the Rockwell 30 T 
scale).
     Certain cold-rolled black plate bare steel strip, 
meeting ASTM A-625 specifications, which meet the following 
characteristics:

Chemical Composition:

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

--------------------------------------------------------------------------------------------------------------------------------------------------------
Element.........................                C                            Mn                             P                             S
--------------------------------------------------------------------------------------------------------------------------------------------------------
Max. Weight %...................  0.13                          0.60                          0.02                          0.05
--------------------------------------------------------------------------------------------------------------------------------------------------------

Physical and Mechanical Properties:

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

------------------------------------------------------------------------
Thickness....................  0.0058 inch 0.0003 inch
Hardness.....................  T2/HR 30T 50-60 aiming

[[Page 31189]]


Elongation...................  15%
Tensile Strength.............  51,000.0 psi 4.0 aiming
------------------------------------------------------------------------

     Certain cold-rolled black plate bare steel strip, in 
coils, meeting ASTM A-623, Table II, Type MR specifications, which 
meet the following characteristics:

Chemical Composition:

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

--------------------------------------------------------------------------------------------------------------------------------------------------------
Element.........................                C                            Mn                             P                             S
--------------------------------------------------------------------------------------------------------------------------------------------------------
Max. Weight %...................  0.13                          0.60                          0.04                          0.05
--------------------------------------------------------------------------------------------------------------------------------------------------------

Physical and Mechanical Properties:

------------------------------------------------------------------------
                  1
-------------------------------------
Thickness...........................  0.0060 inch (0.0005
                                       inch)
Width...............................  10 inches (+ \1/4\ to \3/8\ inch/-
                                       0)
Tensile Strength....................  55,000 psi max.
Elongation..........................  Minimum of 15 percent in 2 inches
------------------------------------------------------------------------

     Certain ``blued steel'' coil (also known as ``steamed 
blue steel'' or ``blue oxide''), with a thickness of 0.30 mm to 0.42 
mm and width of 609 mm to 1219 mm, in coil form;
     Certain cold-rolled steel sheet, coated with porcelain 
enameling prior to importation, which meets the following 
characteristics:

Thickness (nominal): 0.019 inch
Width: 35 to 60 inches
Chemical Composition:

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

----------------------------------------------------------------------------------------------------------------
Element.....................  C                           O                           B
----------------------------------------------------------------------------------------------------------------
Max. Weight %...............  0.004
----------------------------------------------------------------------------------------------------------------
Min. Weight %...............  ..........................  0.010                       0.012
----------------------------------------------------------------------------------------------------------------

     Certain cold-rolled steel, which meets the following 
characteristics:

    Width: >66 inches
    Chemical Composition:

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

--------------------------------------------------------------------------------------------------------------------------------------------------------
Element.........................  C                             Mn                            P                             Si
--------------------------------------------------------------------------------------------------------------------------------------------------------
Max. Weight %...................  0.07                          0.67                          0.14                          0.03
--------------------------------------------------------------------------------------------------------------------------------------------------------

Physical and Mechanical Properties:

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

------------------------------------------------------------------------
Thickness Range (mm).........................  0.800-2.000
------------------------------------------------------------------------
Min. Yield Point (MPa).......................  265
------------------------------------------------------------------------
Max Yield Point (MPa)........................  365
------------------------------------------------------------------------
Min. Tensile Strength (MPa)..................  440
------------------------------------------------------------------------
Min. Elongation %............................  26
------------------------------------------------------------------------

     Certain band saw steel, which meets the following 
characteristics:

    Thickness:  1.31 mm
    Width:  80 mm
    Chemical Composition:

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

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Element..........................  C                      Si                     Mn                     P                      S                      Cr                    Ni
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Weight %.........................  1.2 to 1.3             0.15 to 0.35           0.20 to 0.35           0.03        0.007       0.3 to 0.5            0.25
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Other properties:
Carbide: Fully spheroidized having >80% of carbides, which are 
 0.003 mm and uniformly dispersed
Surface finish: Bright finish free from pits, scratches, rust, 
cracks, or seams Smooth edges.
Edge camber (in each 300 mm of length):  7 mm arc height
Cross bow (per inch of width): 0.015 mm max.
     Certain transformation-induced plasticity (TRIP) steel, 
which meets the following characteristics:

Variety 1

Chemical Composition:

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

----------------------------------------------------------------------------------------------------------------
Element.....................  C                           Si                          Mn
----------------------------------------------------------------------------------------------------------------
Min. Weight %...............  0.09                        1.0                         0.90

[[Page 31190]]


Max. Weight %...............  0.13                        2.1                         1.7
----------------------------------------------------------------------------------------------------------------

    Physical and Mechanical Properties:

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

------------------------------------------------------------------------
Thickness Range (mm)..............  1.000-2.300 (inclusive)
------------------------------------------------------------------------
Min. Yield Point (MPa)............  320
------------------------------------------------------------------------
Max Yield Point (MPa).............  480
------------------------------------------------------------------------
Min. Tensile Strength (MPa).......  590
------------------------------------------------------------------------
Min. Elongation %.................  24 (if 1.000-1.199 thickness range)
------------------------------------------------------------------------
                                    25 (if 1.200-1.599 thickness range)
------------------------------------------------------------------------
                                    26 (if 1.600-1.999 thickness range)
------------------------------------------------------------------------
                                    27 (if 2.000-2.300 thickness range)
------------------------------------------------------------------------

Variety 2

Chemical Composition:

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

----------------------------------------------------------------------------------------------------------------
Element.....................  C                           Si                          Mn
----------------------------------------------------------------------------------------------------------------
Min. Weight %...............  0.12                        1.5                         1.1
----------------------------------------------------------------------------------------------------------------
Max. Weight %...............  0.16                        2.1                         1.9
----------------------------------------------------------------------------------------------------------------

    Physical and Mechanical Properties:

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

------------------------------------------------------------------------
Thickness Range (mm)................  1.000-2.300 (inclusive)
------------------------------------------------------------------------
Min. Yield Point (MPa)..............  340
------------------------------------------------------------------------
Max Yield Point (MPa)...............  520
------------------------------------------------------------------------
Min. Tensile Strength (MPa).........  690
------------------------------------------------------------------------
Min. Elongation %...................  21 (if 1.000-1.199 thickness
                                       range)
                                      22 (if 1.200-1.599 thickness
                                       range)
------------------------------------------------------------------------
                                      23 (if 1.600-1.999 thickness
                                       range)
------------------------------------------------------------------------
                                      24 (if 2.000-2.300 thickness
                                       range)
------------------------------------------------------------------------

Variety 3

Chemical Composition:

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

----------------------------------------------------------------------------------------------------------------
Element.....................  C                           Si                          Mn
----------------------------------------------------------------------------------------------------------------
Min. Weight %...............  0.13                        1.3                         1.5
----------------------------------------------------------------------------------------------------------------
Max. Weight %...............  0.21                        2.0                         2.0
----------------------------------------------------------------------------------------------------------------

Physical and Mechanical Properties:

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

----------------------------------------------------------------------------------------------------------------
Thickness Range (mm)...................  1.200-2.300 (inclusive)
----------------------------------------------------------------------------------------------------------------
Min. Yield Point (MPa).................  370
----------------------------------------------------------------------------------------------------------------
Max Yield Point (MPa)..................  570
----------------------------------------------------------------------------------------------------------------
Min. Tensile Strength (MPa)............  780
----------------------------------------------------------------------------------------------------------------

[[Page 31191]]


Min. Elongation %......................  18 (if 1.200-1.599 thickness range)
----------------------------------------------------------------------------------------------------------------
                                         19 (if 1.600-1.999 thickness range)
----------------------------------------------------------------------------------------------------------------
                                         20 (if 2.000-2.300 thickness range)
----------------------------------------------------------------------------------------------------------------

     Certain cold-rolled steel, which meets the following 
characteristics:

Variety 1

Chemical Composition:

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

--------------------------------------------------------------------------------------------------------------------------------------------------------
Element.........................  C                             Mn                            P                             Cu
--------------------------------------------------------------------------------------------------------------------------------------------------------
Min. Weight %...................  ............................  ............................  ............................  0.15
--------------------------------------------------------------------------------------------------------------------------------------------------------
Max. Weight %...................  0.10                          0.40                          0.10                          0.35
--------------------------------------------------------------------------------------------------------------------------------------------------------

Physical and Mechanical Properties:

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

----------------------------------------------------------------------------------------------------------------
Thickness Range (mm)...................  0.600-0.800
----------------------------------------------------------------------------------------------------------------
Min. Yield Point (MPa).................  185
----------------------------------------------------------------------------------------------------------------
>Max Yield Point (MPa).................  285
----------------------------------------------------------------------------------------------------------------
Min. Tensile Strength (MPa)............  340
----------------------------------------------------------------------------------------------------------------
Min. Elongation........................  31 (ASTM standard 31% = JIS standard 35%)
----------------------------------------------------------------------------------------------------------------

Variety 2

    Chemical Composition:

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

--------------------------------------------------------------------------------------------------------------------------------------------------------
Element.........................  C                             Mn                            P                             Cu
--------------------------------------------------------------------------------------------------------------------------------------------------------
Min. Weight %...................  ............................  ............................  ............................  0.15
--------------------------------------------------------------------------------------------------------------------------------------------------------
Max. Weight %...................  0.05                          0.40                          0.08                          0.35
--------------------------------------------------------------------------------------------------------------------------------------------------------

Physical and Mechanical Properties:

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

----------------------------------------------------------------------------------------------------------------
Thickness Range (mm)...................  0.800-1.000
----------------------------------------------------------------------------------------------------------------
Min. Yield Point (MPa).................  145
----------------------------------------------------------------------------------------------------------------
Max Yield Point (MPa)..................  245
----------------------------------------------------------------------------------------------------------------
Min. Tensile Strength (MPa)............  295
----------------------------------------------------------------------------------------------------------------
Min. Elongation %......................  31 (ASTM standard 31% = JIS standard 35%)
----------------------------------------------------------------------------------------------------------------

Variety 3

Chemical Composition:

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

--------------------------------------------------------------------------------------------------------------------------------------------------------
Element.......................       C          Si          Mn           P           S             Cu            Ni          Al       Nb, V,       Mo
                                                                                                                                       Ti, B
--------------------------------------------------------------------------------------------------------------------------------------------------------
Max. Weight %.................  0.01        0.05        0.40        0.10        0.023       0.15-.35         0.35        0.10       0.10       0.30
--------------------------------------------------------------------------------------------------------------------------------------------------------

Physical and Mechanical Properties:

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

------------------------------------------------------------------------
Thickness (mm).............................  0.7
Elongation %...............................   35
------------------------------------------------------------------------

     Porcelain enameling sheet, drawing quality, in coils, 
0.014 inch in thickness, +0.002, -0.000, meeting ASTM A-424-96 Type 
1 specifications, and suitable for two coats.
     Porcelain enameling sheet whether or not coated prior 
to importation with the following additional characteristics:
    Cold-rolled steel for porcelain enameling, the foregoing being 
continuous annealed cold-reduced steel with a nominal thickness of 
not more than 0.48 mm and widths from 762 mm to 1,524 mm, having a 
chemical composition, by weight, of not more than 0.004 percent 
carbon, nor more than 0.010 percent aluminum, 0.006 percent or more 
of nitrogen, 0.012 percent or more of boron, and more than 0.005 
percent silicon, and 0.010 percent or more of oxygen; having no 
intentional addition of and less than 0.002 percent by weight of 
titanium, no intentional addition of and less than 0.002 percent by 
weight of vanadium, no intentional addition of and less than 0.002 
percent by weight of niobium, and no intentional addition of and 
less than 0.002 percent of antimony; having a yield strength of from 
179.3 MPa to 344.7 MPa, a tensile strength of from 303.7 MPa to 
413.7 MPa, a percent of elongation of from 28 percent to 46 percent 
on a standard ASTM sample with a 5.08 mm gauge length; for Fishscale 
resistance; hydrogen traps provided; with a product shape of flat 
after

[[Page 31192]]

annealing, with flat defined as less than or equal to 1 I unit with 
no coil set.
    The merchandise subject to this investigation is typically 
classified in the HTSUS at subheadings: 7209.15.0000, 7209.16.0030, 
7209.16.0060, 7209.16.0090, 7209.17.0030, 7209.17.0060, 
7209.17.0090, 7209.18.1530, 7209.18.1560, 7209.18.2550, 
7209.18.6000. 7209.25.0000, 7209.26.0000, 7209.27.0000, 
7209.28.0000, 7209.90.0000, 7210.70.3000, 7210.90.9000, 
7211.23.1500, 7211.23.2000, 7211.23.3000, 7211.23.4500, 
7211.23.6030, 7211.23.6060, 7211.23.6085, 7211.29.2030, 
7211.29.2090, 7211.29.4500, 7211.29.6030, 7211.29.6080, 
7211.90.0000, 7212.40.1000, 7212.40.5000, 7212.50.0000, 
7225.19.0000, 7225.50.6000, 7225.50.7000, 7225.50.8010, 
7225.50.8085, 7225.99.0090, 7226.19.1000, 7226.19.9000, 
7226.92.5000, 7226.92.7050, 7226.92.8050, and 7226.99.0000.
    Although the HTSUS subheadings are provided for convenience and 
Customs purposes, the written description of the merchandise under 
investigation is dispositive.

Scope Issues

    In the Initiation Notice, we invited all interested parties to 
raise issues and comment regarding the product coverage under the 
scope of these investigations. We received numerous comments, 
including scope clarification and scope exclusion requests. The 
requests covered approximately 80 cold-rolled steel products.
    In our review of the comments, we found that, in the 
overwhelming majority of the cases, parties disagreed on whether or 
not the exclusion should be granted. Both requesters and petitioners 
provided factual information and argument in support of their 
position. We are currently analyzing the information provided.
    All parties, however, have agreed to the exclusion from the 
scope of these investigations of porcelain enameling sheet. This 
exclusion covers the following product:
    Porcelain enameling sheet whether or not coated prior to 
importation with the following additional characteristics:
    Porcelain enameling cold-rolled sheet, the foregoing being 
continuous annealed cold-reduced steel with a nominal thickness of 
not more than 0.48 mm and widths from 762 mm to 1,524 mm, having a 
chemical composition, by weight, of not more than 0.004 percent 
carbon, nor more than 0.010 percent aluminum, 0.006 percent or more 
of nitrogen, 0.012 percent or more of boron, and more than 0.005 
percent silicon, and 0.010 percent or more of oxygen; having no 
intentional addition of and less than 0.002 percent by weight of 
titanium, no intentional addition of and less than 0.002 percent by 
weight of vanadium, no intentional addition of and less than 0.002 
percent by weight of niobium, and no intentional addition of and 
less than 0.002 percent of antimony; having a yield strength of from 
179.3 MPa to 344.7 MPa, a tensile strength of from 303.7 MPa to 
413.7 MPa, a percent of elongation of from 28 percent to 46 percent 
on a standard ASTM sample with a 5.08 mm gauge length; for Fishscale 
resistance; hydrogen traps provided; with a product shape of flat 
after annealing, with flat defined as less than or equal to 1 I unit 
with no coil set.
    Therefore, with regard to porcelain enameling cold-rolled sheet, 
we have amended the scope of these investigations to exclude this 
product as described above (see preceding Scope of the 
Investigations section). We will instruct Customs accordingly.
    With regard to all other products for which an exclusion was 
requested, we have determined that it is not practicable for the 
Department to complete the analysis of each request by the issuance 
of the notice of preliminary determination. This is due to a number 
of factors, including the large number of requests and the 
complexity of the issues involved. We will issue a decision 
memorandum containing the Department's preliminary determination on 
all product exclusion requests submitted in the course of these 
investigations at the earliest possible date but not later than May 
24, 2002.
    We invite parties to comment on our preliminary determination on 
this issue. Parties will have three weeks to comment from the date 
of issuance of the memorandum.

[FR Doc. 02-11182 Filed 5-8-02; 8:45 am]
BILLING CODE 3510-DS-P