[Federal Register Volume 62, Number 223 (Wednesday, November 19, 1997)]
[Notices]
[Pages 61780-61787]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30395]


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DEPARTMENT OF COMMERCE

International Trade Administration
[A-821-808]


Suspension of Antidumping Duty Investigation: Certain Cut-to-
Length Carbon Steel Plate From the Russian Federation

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

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SUMMARY: The Department of Commerce (the Department) has suspended the 
antidumping duty investigation involving certain cut-to-length carbon 
steel plate (CTL plate) from the Russian Federation. The basis for this 
action is an agreement between the Department and the Ministry of 
Foreign Economic Relations and Trade of the Russian Federation (MINFER) 
wherein MINFER has agreed to restrict the volume of direct or indirect 
exports to the United States of CTL plate from all Russian producers/
exporters and to revise its prices to eliminate completely sales of 
this merchandise to the United States at less than fair value.

EFFECTIVE DATE: October 24, 1997.

FOR FURTHER INFORMATION CONTACT: Nithya Nagarajan, or Eugenia Chu, 
Office of AD/CVD Enforcement III, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th & Constitution 
Avenue N.W., Washington, D.C. 20230; telephone (202) 482-1324, or (202) 
482-3964 respectively.

SUPPLEMENTARY INFORMATION:

Background

    On December 3, 1996, the Department initiated an antidumping 
investigation under section 732 of the Tariff Act of 1930, (the Act), 
as amended, to determine whether imports of CTL plate from the Russian 
Federation are being or are likely to be sold in the United States at 
less than fair value (61 FR 64051 (December 3, 1996)). On December 19, 
1996, the United States International Trade Commission (ITC) notified 
the Department of its affirmative preliminary injury determination (see 
ITC Investigation Nos. 731-TA-753-756). On June 11, 1997, the 
Department preliminarily determined that CTL plate is being, or is 
likely to be, sold in the United States at less than fair value (LTFV), 
as provided in section 733 of the Tariff Act of 1930, as amended by the 
Uruguay Round Agreements Act (62 FR 31967, (June 11, 1997)).
    The Department and MINFER initialed a proposed agreement suspending 
this investigation on September 24, 1997. On September 25, 1997, we 
invited interested parties to provide written comments on the agreement 
and received comments from Geneva Steel, Gulf States Steel, Bethlehem 
Steel Corp., U.S. Steel Group, United Steel Workers of America, and the 
Government of the Russian Federation.
    The Department and MINFER signed the final suspension agreement on 
October 24, 1997.

Scope of Investigation

    See Notice of Final Determination of Sales at Less Than Fair Value: 
Certain Cut-to-Length Carbon Steel Plate From Ukraine, signed on 
October 24, 1997.

Suspension of Investigation

    The Department consulted with the parties to the proceeding and has 
considered the comments submitted with respect to the proposed 
suspension agreement. In accordance with Section 734 (l) of the Act, we 
have determined that the agreement will prevent the suppression or 
undercutting of price levels of domestic products by imports of the 
merchandise under investigation, that the agreement is in the public 
interest, and that the agreement can be monitored effectively. See 
October 24, 1997, Public Interest Memorandum. We find, therefore, that 
the criteria for suspension of an investigation pursuant to section 
734(l) of the Act have been met. The terms and conditions of this 
agreement, signed October 24, 1997, are set forth in Annex 1 to this 
notice.
    Pursuant to section 734(f)(2)(A) of the Act, the suspension of 
liquidation of all entries of cut-to-length carbon steel plate from the 
Russian Federation entered or withdrawn from warehouse, for 
consumption, as directed in our notice of ``Preliminary Determination 
of Sales at Less Than Fair Value: Cut-to-Length Carbon Steel Plate from 
the Russian Federation'' and ``Postponement of the Final Determination: 
Cut-to-Length Carbon Steel Plate from the Russian Federation'' is 
hereby terminated. Any cash deposits on entries of cut-to-length carbon 
steel plate from the Russian Federation pursuant to that suspension of 
liquidation shall be refunded and any bonds shall be released.
    On October 14, 1997 we received a request from petitioners 
requesting that we continue the investigation. We received separate 
requests for continuation from Bethlehem Steel Corp., U.S. Steel Corp. 
(A Unit of USX Corporation), and the United Steelworkers of America, 
interested parties under section 771(9)(D) of the

[[Page 61781]]

Act. Pursuant to these requests, we have completed the investigation in 
accordance with section 734(g) of the Act, and have notified the 
International Trade Commission (ITC) of our determination. If the ITC's 
injury determination is negative, the agreement will have no force or 
effect, and the investigation will be terminated (see section 
734(f)(3)(A) of the Act). If the ITC's determination is affirmative, 
the Department will not issue an antidumping duty order as long as the 
suspension agreement remains in force (see section 734(f)(3)(B) of the 
Act).
    This notice is published pursuant to section 734(f)(1)(A) of the 
Act.

    Dated: November 7, 1997.
Robert S. LaRussa,
Assistant Secretary for Import Administration.

Agreement Suspending the Antidumping Investigation on Cut-To-Length 
Carbon Steel Plate From the Russian Federation

    For the purpose of encouraging free and fair trade in cut-to-length 
carbon steel plate (``steel plate''), establishing more normal market 
relations, and preventing the suppression or undercutting of price 
levels of the domestic product, the United States Department of 
Commerce (``U.S. DOC'') and the Ministry of Foreign Economic Relations 
and Trade of the Russian Federation (``MINFER of Russia'') enter into 
this suspension agreement (``the Agreement'').
    Pursuant to this Agreement, MINFER of Russia will restrict the 
volume of direct and indirect exports to the United States of steel 
plate from all Russian producers/exporters, subject to the terms and 
provisions set forth below.
    On the basis of this Agreement, pursuant to the provisions of 
Section 734(1) of the Tariff Act of 1930, as amended (19 U.S.C. 
1673c(1)), (see Appendix II), U.S. DOC shall suspend its antidumping 
investigation with respect to steel plate produced in Russia, subject 
to the terms and provisions set forth below. Further, U.S. DOC will 
instruct the U.S. Customs Service to terminate the suspension of 
liquidation of, and release any cash deposit or bond posted on, the 
steel plate covered by this Agreement as of the effective date of this 
Agreement.

I. Definitions

    For purposes of this Agreement, the following definitions apply.
    A. ``Date of Export'' for imports of steel plate to the United 
States shall be considered the date on which the Export License/
Temporary Document was issued.
    B. ``Parties to the Proceeding'' means any interested party, within 
the meaning of section 353.2(k) of the Department's Regulations, which 
actively participates through written submission of factual information 
or written argument.
    C. ``Indirect Exports'' means arrangements as defined in Section 
III.E of this Agreement and exports from Russia through one or more 
third countries, whether or not such exports are further processed, 
insofar as they remain within the scope of the Agreement, and includes 
further processing which results in minor alterations, or under certain 
limited circumstances, as described in Section VII. G., further 
processing which results in substantial transformation as a result of 
an attempt to circumvent the Agreement, whether or not such exports are 
sold in one or more third countries prior to importation into the 
United States and whether or not the Russian producer knew the product 
was destined to enter the United States.
    D. For purposes of this Agreement, ``United States'' shall comprise 
the customs territory of the United States of America (the 50 States, 
the District of Columbia and Puerto Rico) and foreign trade zones 
located in the territory of the United States.
    E. ``For Consumption'' means all steel plate sold to customers, 
such as, trading companies, distributors, resellers, end-users, or 
service centers.
    F. ``End-User'' means an entity, such as a steel service center, 
reseller, trading company, end-user. etc. which consumes steel plate as 
defined in Section I.E.
    G. ``Date of Sale'' is defined as the date on which price and 
quantity become firm, e.g., the specification date or, the date of the 
contract if the contract fixes the price and quantity for more than one 
year. as recorded in the company s records kept in the ordinary course 
of business.
    H. ``Export License/Temporary Document'' is the document issued by 
(``MINFER'') of Russia which serves also as both a quota certificate 
and a certificate of origin. An Export License/Temporary Document must 
accompany all shipments of steel plate from Russia to the United 
States, and must contain all of the information enumerated in the 
Appendix I to this Agreement, except that Date of Entry, Importer of 
Record, Final Destination, and Other, may be omitted if unknown to 
MTNFFR of Russia and the licensee.
    I. Reference Price'' means the price calculated by U.S. DOC, as 
described in Section IV, on a quarterly basis to be used as a floor 
price for sales of steel plate to the United States.
    J. ``Relevant Period'' for the export limit of this Agreement means 
the period from January I through December 31 of each year that the 
Agreement is in effect, except that the First Relevant Period shall be 
the period from October 24, 1997 through December 31, 1998. The Final 
Relevant Period shall be the period from January 1, 2002 through 
October 23, 2002.

II. Product Coverage

    The products covered by this Agreement include hot-rolled iron and 
non-alloy steel universal mill steel plates (i.e., flat-rolled products 
rolled on four faces or in a closed box pass. of a width exceeding 150 
mm but not exceeding 1250 mm and of a thickness of not less than 4 mm, 
not in coils and without patterns in relief), of rectangular shape, 
neither clad, plated nor coated with metal, whether or not painted, 
varnished, or coated with plastics or other non-metallic substances; 
and certain iron and non-alloy steel flat-rolled products not in coils, 
of rectangular shape. hot-rolled, neither clad, plated, nor coated with 
metal. whether or not painted, varnished, or coated with plastics or 
other nonmetallic substances, 4.75 mm or more in thickness and of a 
width which exceeds 150 mm and measures at least twice the thickness. 
Included as steel plate in this Agreement are flatrolled products of 
nonrectangular cross-section where such cross-section is achieved 
subsequent to the rolling process (i.e., products which have been 
``worked after rolling'') for example. products which have been beveled 
or rounded at the edges. This merchandise is currently classifiable in 
the Harmonized Tariff Schedule of the United States (``HTS'') under 
item numbers 7208.40.3030, 7208.40.3060. 7208.51.0030, 7208.51.0045, 
7208.51.0060, 7208.52.0000, 7208.53.0000, 7208.90.0000, 7210.70.3000, 
7210.90.9000, 7211.13.0000, 7211.14.0030, 7211.14.0045, 7211.90.0000, 
7212.40.1000, 7212.40.5000, 7212.50.0000. Excluded from steel plate 
within the scope of this Agreement is grade X-70 steel plate. Although 
the HTS subheadings are provided for convenience and customs purposes, 
the written description of the scope of this Agreement is dispositive.
    The products covered by the above definition shall be referred to 
hereinafter as ``steel plate''.

[[Page 61782]]

III. Export Limits

    A. The export limit for each Relevant Period shall be 100,000 
metric tons of steel plate, except that for the First Relevant Period 
the export limit shall be 118,630 metric tons of steel plate and for 
the Final Relevant Period the export limit shall be 81,370 metric tons 
of steel plate. No later than 60 days prior to the end of the First 
Relevant Period, U.S. DOC shall calculate an upward or downward 
adjustment to the next Relevant Period's export limit based upon the 
changes in U.S. apparent consumption for steel plate. U.S. apparent 
consumption will be calculated using of financial statistics of the 
U.S. Census Bureau and data from the American Iron and Steel Institute 
regarding domestic shipments. The maximum adjustment will be plus or 
minus no more than 6 percent per Relevant Period, and will be 
calculated by comparing the most recent twelve months of data for U.S. 
apparent consumption available to U.S. DOC at the time of the 
calculation, to the level of the previous corresponding twelve months 
of data. U.S. DOC will then apply the adjustment to the Relevant 
Period's export limit. U.S. DOC will similarly adjust the export limit 
every Relevant Period, and the effects of the adjustments shall be 
cumulative.
    Deductions from the export limit shall be made based on the ``Date 
of Export'', as defined in Section I. MINFER of Russia will not issue 
Export Licenses/Temporary Documents accounting for more than sixty 
percent of the export limits for any Relevant Period during either 
semi-annual period within such Relevant Period. The two semi-annual 
periods within the Relevant Period are defined as: (I) January 1 
through June 30; and (2) July 1 through December 31 and except that for 
the First Relevant Period, the two semi-annual periods are defined as: 
(1) the period beginning on October 24, 1997 through May 31 1998; and 
(2) the period June 17 1998 through December 31, 1998. and for the 
Final Relevant Period, the semi-annual periods are defined as: (1) 
January 1, 2002 through May 31, 2002; and (2) June 1, 2001 through 
October 23, 2002.
    B. On and after October 24, 1997, MINFER of Russia will restrict 
the volume of direct or indirect exports of steel plate to the United 
States, and the transfer and withdrawal from inventory of steel plate 
(consistent with the provisions of Section III.D) in accordance with 
the export limit then in effect.
    C. Any amount delivered during a Relevant Period shall not when 
cumulated with all prior deliveries in such Relevant Period, exceed the 
export limit for that Relevant Period except as provided for in Section 
III.G.
    D. Any inventories of steel plate currently held in the United 
States by a Russian entity and imported into the United States between 
November 5, 1996, and October 24 1997. will be subject to the following 
conditions:
    1. Such inventories will not be transferred or withdrawn from 
inventory for consumption in the United States without an Export 
License/Temporary Document issued by MINFER of Russia. Any such 
transfers or withdrawals from inventory shall be deducted from the 
export limit in effect at the time the Export License/Temporary 
Document is issued.
    2. A request for an Export License/Temporary Document under this 
provision shall be accompanied by a report specifying the data pursuant 
to the provisions of Russian legislation, in particular, the identity 
of the original exporter and importer, the customer, if known, the 
original date of export and entry into the United States, if known, the 
quantity expressed in metric tons, and a complete description of the 
steel plate (including heat numbers and other available identifying 
documentation).
    E. Any arrangement involving the exchange, sale, or delivery of 
steel plate products from Russia whether or not further processed 
within the meaning of I.C., to the degree it can be shown to have 
resulted in the sale or delivery in the United States of steel plate 
products from a country other than Russia, will be counted toward the 
export limit under this Agreement. Any such transaction that does not 
comply with the requirements of Section V will be deducted from the 
export limit pursuant to Section VII.
    F. When steel plate is imported into the United States and is 
subsequently re-exported, or re-packaged and re-exported or further 
processed within the meaning of I.C. and re-exported, the export limit 
shall be increased by the quantity re-exported. Such increase will be 
applicable to the Relevant Period corresponding to the time of such re-
export. Such increase will be applied only after U.S. DOC receives, and 
has the opportunity to verify, evidence demonstrating original 
importation. any repackaging or further processing, and subsequent 
exportation.
    G. Export Licenses/Temporary Documents issued for a given Relevant 
Period may not be used after the expiration of that Relevant Period, 
except that Export Licenses/Temporary Documents not used during the 
Relevant Period may be used during the first three months of the 
following Relevant Period, up to a maximum of 15 percent of the export 
limit for that following Relevant Period. Such ``carried-over'' quota 
shall be counted against the export limit applicable to the previous 
Relevant Period.
    Export Licenses/Temporary Documents for up to 15 percent of the 
export limit for a subsequent Relevant Period may be issued as early as 
45 days prior to the beginning of the subsequent Relevant Period. Such 
``carried-back'' quota shall be counted against the export limit 
applicable to the following Relevant Period.
    H. For the first 120 days after October 24, 1997, steel plate shall 
be admitted into the United States with a ``Temporary Document.''
    The volume of any such imports will be deducted from the export 
limit applicable to the First Relevant Period. A full reporting of any 
such imports, which must correspond to the information detailed in 
Appendix I.B. to this Agreement, must be submitted to U.S. DOC no later 
than 45 days after the conclusion of the 120 day period. This data must 
be sorted on the basis of date of export and must be set forth on a 
transaction-specific basis.

IV. Reference Price

    A. Steel plate will not be sold below the reference price in effect 
on the date of sale.
    B. The reference price issued quarterly by U.S. DOC shall be 
released by September 1, December 1, March 1, and June 1 of each year 
and shall be effective on October 1, January 1, April 1, and July 1, 
respectively. The reference price for the First Relevant Period shall 
be issued and effective on October 24. 1997. Either party is entitled 
to request consultations regarding the calculation of reference prices.
    C. The reference price for the First Relevant Period shall be as 
follows:

A36--$300.00 per metric ton
AS72--$325.00 per metric ton

    Until such time as U.S. DOC and MINFER of Russia agree, after 
consultations, upon reference prices for other grades of steel plate, 
only grades A36 and A572 rnay be exported to the United States. 
Consultations regarding reference prices for other grades of steel 
plate shall be held within 30 days of a request and shall be completed 
within 15 days.
    D. For each subsequent Relevant Period, the reference price will be 
adjusted on a quarterly basis to reflect the change in the BLS Producer 
Price Index (PPI) for carbon steel plate over the three months for 
which data is available preceding the date on which the reference price 
is issued.

[[Page 61783]]

    If the last month of BLS PPI for the three-month period preceding 
the date on which the reference price is issued has fallen by more than 
2.6 percent from the average of the first two months of the period, the 
reference price will be adjusted on the basis of the PPI for the last 
month of the three-month period.
    E. MINFER of Russia will ensure that, with respect to merchandise 
covered by each Export License/Temporary Document, the Russian unit 
values of steel plate exports will equal or exceed the reference price 
at equivalent points in the transaction chain. The reference price will 
be F.O.B. port. MINFER of Russia will ensure that contracts and all 
relevant documentation will be available to U.S. DOC and will be 
subject to verification.

V. Export License/Temporary Document

    A. MINFER of Russia shall restrict the volume of direct or indirect 
exports of steel plate to the United States by means of annual quota 
allocations and Export Licenses/Temporary Documents. Export Licenses/
Temporary Documents shall be issued by MINFER of Russia for all direct 
or indirect exports of steel plate to the United States in accordance 
with the export limit in Section III and the reference price in Section 
IV.
    B. Thirty days following the allocation of quota rights for any 
Relevant Period.
    MINFER of Russia shall provide to U.S. DOC a notice identifying 
each quota recipient and the volume of quota which each recipient has 
been accorded (``notice of quota allocation results''). MINFER of 
Russia shall not be required to seek the approval of U.S. DOC for 
changing the volume of quota assigned to individual quota recipients. 
MINFER of Russia shall inform U.S. DOC of any changes in the volume of 
quota assigned to individual quota recipients within 60 days of the 
date on which such changes become effective.
    C. Before it issues an Export License/Temporary Document, MINFER of 
Russia will ensure that the Relevant Period's export limit is not 
exceeded and that the price for the steel plate is at or above the 
reference price.
    D. MINFER of Russia shall take measures, as may be necessary, to 
make effective the obligations resulting from the reference price, 
export limits and Export Licenses/Temporary Documents. MINFER of Russia 
will inform U.S. DOC of any violations concerning reference price, 
export limits and/or Export Licenses/Temporary Documents which come to 
its attention and the measures taken with respect thereto.
    U.S. DOC will inform MINFER of Russia of violations concerning the 
reference price, export limits, and/or Export Licenses/Temporary 
Documents which come to its attention and the actions taken with 
respect thereto.
    E. Export Licenses/Temporary Documents will be issued sequentially, 
endorsed against the export limit for the Relevant Period, and will 
reference the notice of quota allocation results for the appropriate 
Relevant Period.
    F. Export License/Temporary Document must be issued no earlier than 
90 days before the day on which the steel plate is accepted-by a 
transportation company, as indicated in the bill of lading or a 
comparable transportation document, for export. Export License/
Temporary Document must be also issued in English.
    G. On and after October 24, 1997, the United States shall require 
presentation of an original stamped Export License/Temporary Document 
as a condition for entry of steel plate into the United States. The 
United States will prohibit the entry of any steel plate not 
accompanied by an original stamped Export License/Temporary 
Document.<SUP>1</SUP>
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    \1\ The validity of an Export License/Temporary Document will 
not be affected by a subsequent change of an HTS number.
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VI. Implementation

    In order to effectively restrict the volume of exports of steel 
plate to the United States, MINFER of Russia agrees to implement the 
following procedures no later than 90 days after October 24 1997, 
except as noted in Section VI.A.:
    A. Establish a quota and licensing program for all exports of steel 
plate to, or destined directly or indirectly for consumption in, the 
United States no later than 120 days after October 24, 1997.
    B. Ensure compliance by any official Russian institution, chamber, 
or other entities authorized by the Government of Russia all Russian 
producers, exporters, brokers. and traders of the steel plate, and 
their relevant affiliated parties; as well as relevant trading 
companies/resellers utilized by the Russian producer to make sales to 
the United States. with all procedures established in order to 
effectuate this Agreement.
    C. Collect information-from all Russian producers, exporters, 
brokers, and traders of steel plate, and their relevant affiliated 
parties, as well as relevant trading companies/resellers utilized by 
the Russian producer, on the sale of the steel plate, and report such 
information pursuant to Article VIII.A of this Agreement
    D. Issue Export Licenses/Temporary Documents to Russian producers 
and exporters of steel plate for the duration of this Agreement in 
accordance with Russian legislation.
    E. Impose strict measures, such as prohibition from participation 
in the export limits allowed by the Agreement. in the event that any 
Russian entity does not comply in full with the terms of the Agreement.
    F. Require that purchasers agree not to circumvent this Agreement, 
report to MINFER of Russia subsequent arrangement entered into for the 
sale, exchange, or loan to the United States of steel plate purchased 
from Russia, and include these same provisions in any subsequent 
contracts involving steel plate purchased from Russia.
    G. For purposes of this Agreement the duration of validity of 
Export Licenses/Temporary Documents will be six (6) months. U.S. D.O.C. 
and MINFER of Russia may agree to an extension of the validity of the 
Export License/Temporary Document in cases of force majeure.

VII. Anticircumvention

    A. MINFER of Russia will take all appropriate measures under 
Russian law to prevent circumvention of this Agreement. It shall 
respond promptly to conduct an inquiry into allegations of 
circumvention, including allegations raised by U.S. DOC, and shall 
complete such inquiries in a timely manner (normally within 45 days). 
MINFER of Russia shall notify U.S. DOC of the results of its inquiries 
within 15 days of the conclusion of such inquiries. Within 15 days of a 
request from U.S. DOC, MINFER of Russia shall share with U.S. DOC all 
information received or collected by MINFER of Russia regarding its 
inquiries, its analysis of such information, and the results of such 
inquiries. MINFER of Russia will require all Russian exporters of steel 
plate to include a provision in their contracts for sales to countries 
other than the United States that the steel plate sold through such 
contracts cannot be re-exported, transshipped, or swapped to the United 
States, or otherwise used to circumvent the export limits of this 
Agreement. This requirement does not apply to exports to the United 
States through a third country which are accompanied by a valid Export 
License/Temporary Document. MINFER of Russia will also establish 
appropriate mechanisms to enforce this requirement.
    B. If, in an inquiry pursuant to Section VI.A, MINFER of Russia 
determines that a Russian entity has participated in a transaction that 
resulted in circumvention of the export limits of this Agreement, then 
MINFER

[[Page 61784]]

of Russia shall impose measures on such company including, but not 
limited to, denial of access to a quota for the steel plate. 
Additionally, MINFER of Russia shall deduct an amount of steel plate 
equivalent to the amount involved in such circumvention from the export 
limit and shall immediately notify U.S. DOC of the amount deducted. If 
sufficient tonnage is not available in the current Relevant Period, 
then the remaining amount necessary shall be deducted from the 
subsequent Relevant Period.
    C. If MINFER of Russia determines that a company from a third 
country has circumvented the Agreement and the parties agree that no 
Russian entity participated in or had knowledge of such activities, 
then the parties shall hold consultations for the purpose of sharing 
information regarding such circumvention and reaching mutual agreement 
on the appropriate measures to be taken to eliminate such 
circumvention. If the parties are unable to reach mutual agreement 
within 45 days, then U.S. DOC may take appropriate measures, such as 
deducting the amount of steel plate involved in such circumvention from 
the export limit, or instructing U.S. Customs to deny entry to any 
steel plate sold by the entity found to be circumventing the Agreement, 
taking into account all relevant factors. Before taking such measures 
U.S. DOC will notify MINFER of Russia of the facts and reasons 
constituting the basis for U.S. DOC's intended action and will afford 
MINFER of Russia 15 days in which to comment.
    D. If U.S. DOC determines that a Russian entity participated in 
circumvention the parties shall hold consultations for the purpose of 
sharing evidence regarding such circumvention and reaching mutual 
agreement on an appropriate resolution of the problem. If the parties 
are unable to reach mutual agreement within 60 days, U.S. DOC may take 
appropriate measures, such as deducting the amount of steel plate 
involved in such circumvention from the export limit or instructing 
U.S. Customs to deny entry to any steel plate sold by the entity found 
to be circumventing the Agreement. Before taking such measures, U.S. 
DOC will notify MINFER of Russia of the facts and reasons constituting 
the basis for U.S. DOC's intended action and will afford MINFER of 
Russia 30 days in which to comment.
    E. U.S. DOC shall direct the U.S. Customs Service to require all 
importers of steel plate into the United States, regardless of stated 
country of origin, to submit at the time of entry a written statement 
certifying that the steel plate being imported was not obtained under 
any arrangement, swap, or other exchange which would result in the 
circumvention of the export limits established by this Agreement. Where 
U.S. DOC has reason to believe that such a certification has been made 
falsely, U.S. DOC will refer the matter to the U.S. Customs Service or 
U.S. Department of Justice for further action.
    F. U.S. DOC will take the following factors into account in 
distinguishing normal steel plate market arrangements, swaps, or other 
exchanges from arrangements, swaps, or other exchanges which would 
result in the circumvention of the export limits established by this 
Agreement:
    1. Existence of any verbal or written arrangements which would 
result in the circumvention of the export limits established by this 
Agreement;
    2. Existence of any arrangement as defined in Section III.E that 
was not reported to U.S. DOC pursuant to Section VIII;
    3. Existence and function of any subsidiaries or affiliates of the 
parties involved;
    4. Existence and function of any historical and/or traditional 
trading patterns among the parties involved;
    5. Deviations (and reasons for deviation) from the above patterns, 
including physical conditions of relevant steel plate facilities;
    6. Existence of any payments unaccounted for by previous or 
subsequent deliveries, or any payments to one party for steel plate 
delivered or swapped by another party;
    7. Sequence and timing of the arrangements; and
    8. Any other information relevant to the transaction or 
circumstances.
    G. ``Swaps'' include, but are not limited to:
    Ownership swaps--involve the exchange of ownership of steel plate 
without physical transfer. These may include exchange of ownership of 
steel plate in different countries, so that the parties obtain 
ownership of products located in different countries, or exchange of 
ownership of steel plate produced in different countries, so that the 
parties obtain ownership of products of different national origin.
    Flag swaps--involve the exchange of indicia of national origin of 
steel plate, without any exchange of ownership.
    Displacement swaps--involve the sale or delivery of steel plate 
from Russia to an intermediary country (or countries) which can be 
shown to have resulted in the ultimate delivery or sale into the United 
States of displaced steel plate, regardless of the sequence of the 
transaction.
    H. U.S. DOC will enter its determinations regarding circumvention 
into the record of the Agreement.
    I. MINFER of Russia may request an extension of up to 15 days for 
any of the deadlines mentioned in this Section.

VIII. Monitoring

    MINFER of Russia will provide to U.S. DOC such information as is 
necessary and appropriate to monitor the implementation of and 
compliance with the terms of this Agreement. U.S. DOC shall provide 
semi-annual reports to MINFER of Russia indicating the volume of 
imports of the steel plate to the United States, together with such 
additional information as is necessary and appropriate to monitor the 
implementation of this Agreement.

A. Reporting of Data

    Beginning on October 24, 1997, MINFER of Russia shall collect and 
provide to U.S. DOC information for exports to the United States set 
forth in the agreed format in the Appendix I to this Agreement. All 
such information will be provided to U.S. DOC by March 31st of each 
year for exports to the United States during the period from July 1st 
through December 31st. In addition, such information will be provided 
to U.S. DOC by September 30th for exports from January 1st through June 
30th, or within 90 days of a request made by U.S. DOC. Such information 
will be subject to the verification provision identified in Section 
VIII.C of this Agreement. MINFER of Russia agrees to provide Export 
Licenses/Temporary Documents to only those Russian producers/exporters 
which permit verification and full reporting of data. U.S. DOC may 
disregard any information submitted after the deadlines set forth in 
this Section or any information which it is unable to verify to its 
satisfaction.
    Aggregate quantity and value of exports of steel plate to each 
third country will be provided to U.S. DOC by March 31st of each year 
for exports during the period from July 1st through December 31st. In 
addition, such information will be provided to U.S. DOC by September 
30th for exports from January 1st through June 30th.
    Upon request by the U.S. DOC, transaction-specific data for exports 
of steel plate to third country(ies) and home market sales of steel 
plate will also be reported in the format provided in the Appendix I. 
This information shall be provided within 45 days of the request. 
However, MINFER of Russia

[[Page 61785]]

may request an extension of up to 30 days.
    Both Parties recognize that the effective monitoring of this 
Agreement may require that MINFER of Russia provide information 
additional to that which is identified above. Accordingly, U.S. DOC may 
establish additional reporting requirements, as appropriate, during the 
course of this Agreement.
    U.S. DOC shall provide notice to MINFER of Russia of any additional 
reporting requirements no later than 45 days prior to the period 
covered by such reporting requirements unless a shorter notice period 
is mutually agreed.
    MINFER of Russia may request an extension of up to 30 days for any 
of the deadlines mentioned in this Section.

B. Other Sources for Monitoring

    U.S. DOC will review publicly available data as well as U.S. 
Customs entry summaries and other of financial import data from the 
Bureau of the Census, on a monthly basis, to determine whether there 
have been imports that are inconsistent with the provisions of this 
Agreement.
    U.S. DOC will monitor Bureau of the Census computerized records, 
which include the quantity and value of each entry. Because these 
records do not provide other specific entry information, such as the 
identity of the producer/exporter which may be responsible for such 
sales, U.S. DOC may request the U.S. Customs Service to provide such 
information. U.S. DOC may request other additional documentation from 
the U.S. Customs Service.
    U.S. DOC may also request the U.S. Customs Service to direct ports 
of entry to forward an Antidumping Report of Importations for entries 
of the steel plate during the period this Agreement is in effect.

C. Verification

    MINFER of Russia will permit full verification of all information 
related to the administration of this Agreement, on an annual basis or 
more frequently, as the U.S. D.O.C. deems necessary to ensure that 
MINFER of Russia is in full compliance with the terms of the Agreement. 
Such verifications may take place in association with scheduled 
consultations whenever possible.

IX. Disclosure and Comment

    A. U.S. DOC shall make available to representatives of each party 
to the proceeding, under appropriately-drawn administrative protective 
orders consistent with U.S. laws and regulations, business proprietary 
information submitted to U.S. DOC semi-annually or upon request, and in 
any administrative review of this Agreement.
    B. Not later than 45 days after the date of disclosure under 
Section VIII.A, the parties to the proceeding may submit written 
comments to U.S. DOC, not to exceed 30 pages.
    C. During the anniversary month of this Agreement each party to the 
proceeding may request a hearing on issues raised during the preceding 
Relevant Period. If such a hearing is requested, it will be conducted 
in accordance with U.S. laws and regulations.

X. Consultations

    MINFER of Russia and U.S. DOC shall hold consultations regarding 
matters concerning the implementation operation including the 
calculation of reference prices, and/or enforcement of this Agreement. 
Such consultations will be held each year during the anniversary month 
of this Agreement. Additional consultations may be held at any other 
time upon request of either MINFER of Russia or U.S. DOC.

XI. Violations of the Agreement

A. Violation

    ``Violation'' means noncompliance with the terms of this Agreement 
caused by an act or omission, in accordance with U.S. Laws and 
regulations.
    MINFER of Russia and U.S. DOC will inform the other Party of any 
violations of the Agreement which come to their attention and the 
action taken with respect thereto.
    Exports in excess of the export limits set out in this Agreement 
shall not be considered a violation of this Agreement or an indication 
the Agreement no longer meets the requirements of U.S. laws and 
regulations where such exports are inconsequential, inadvertent, and 
are applied against the export limits of the following Relevant Period.
    Prior to making a determination of an alleged violation, U.S. DOC 
will engage in emergency consultations. Such consultations shall begin 
no later than 21 days from the day of request and shall provide for 
full review, but in no event will exceed 40 days. After consultations, 
U.S. DOC will provide MINFER of Russia 20 days within which to provide 
comments. U.S. DOC will make a determination within 30 days after the 
date established for submission of comments by MINFER of Russia.

B. Appropriate Action

    If U.S. DOC determines that this Agreement is being or has been 
violated, U.S. DOC will take such action as it determines is 
appropriate under the U.S. laws and regulations.
    C. MINFER of Russia may request an extension of up to 15 days for 
any of the deadlines mentioned in this Section.

XII. Duration

    The export limit provided for in Section III of this Agreement 
shall remain in force from October 24, 1997 through October 23, 2002.
    U.S. DOC will, upon receiving a proper request made by MINFER of 
Russia, conduct an administrative review under the U.S. laws and 
regulations. U.S. DOC expects to terminate this Agreement and the 
underlying investigation no later than 5 years from October 24, 1997, 
provided that no Russian entity has been found to have violated the 
Agreement in any substantive manner. Such review and termination shall 
be conducted with U.S. laws and regulations.
    MINFER of Russia may terminate this Agreement at any time upon 
notice to U.S. DOC. Termination shall be effective 60 days after such 
notice is given to U.S. DOC. Upon termination at the request of MINFER 
of Russia, the provisions of U.S. laws and regulations shall apply.

XIII. Other Provisions

    A. U.S. DOC finds that this Agreement is in the public interest, 
that effective monitoring of this Agreement by the United States is 
practicable, and that this Agreement will prevent the suppression or 
undercutting of price levels of United States domestic steel plate 
products by imports of the steel plate subject to this Agreement.
    B. U.S. DOC does not consider any of the obligations concerning 
exports of steel plate to the United States undertaken by MINFER of 
Russia pursuant to this Agreement relevant to the question of whether 
firms in the underlying investigation would be entitled to separate 
rates, should the investigation be resumed for any reason.
    C. The English and Russian language versions of this Agreement 
shall be authentic and equally binding, with the English version being 
controlling.
    D. All provisions of this Agreement, including the provisions of 
the Preamble, shall have equal force.
    E. For all purposes hereunder, the signatory Parties shall be 
represented by, and all communications and notices shall be given and 
addressed to:

Department: U.S. Department of Commerce, Assistant Secretary for Import 
Administration, International Trade Administration, Washington, D.C. 
20230

[[Page 61786]]

Ministry: Head of Department for the Regulation of External Economic 
Activities of the Ministry for Foreign Economic Relations and Trade of 
the Russian Federation, 18/1 Ovchinnikovskaya naberezhnaya, 
Moscow<difference> 1 13324, Russia

XIV. Effective Date

    The effective date of this Agreement suspending the antidumping 
investigation on cut-to-length carbon steel plate from Russia shall be 
October 24, 1997.

    Signed on this 24th day of October, 1997.

    For U.S. DOC.
Robert LaRussa,
Assistant Secretary for Import Administration.

    For MINFER of Russia.
Vladimir M. Chibirev,
Acting Trade Representative of the Russian Federation to the United 
States.

Appendix I

    In accordance with the established format, MINFER of Russia 
shall collect and provide to U.S. DOC all information necessary to 
ensure compliance with this Agreement. This information will be 
provided-to U.S. DOC on a semi-annual basis.
    MINFER of Russia will collect and maintain data on exports to 
the United States on a continuous basis. Sales data for the home 
market, and data for exports to countries other than the United 
States. will be reported upon request.
    MINFER of Russia will provide a narrative explanation to 
substantiate all data collected in accordance with the following 
formats.

A. Report of Inventories

    Report by location, the inventories held by Russian entities in 
the United States and imported into the United States during the 
period November 5, 1996 through October 24, 1997.

l. Quantity: Indicate original units of measure and in metric tons.
2. Location: Identify where the inventory is currently being held. 
Provide the name and address for the location.
3. Titled Party: Name and address of party who legally has title to 
the steel plate.
4. Export License/Temporary Document Number: Indicate the number(s) 
relating to each entry now being held in inventory.
5. Certificate of Origin Number(s): Indicate the number(s) relating 
to each sale or entry.
6. Date of Original Export: Date the Export License/Temporary 
Document is issued.
7. Date of Entry: Date the steel plate entered the United States or 
the date book transfer took place.
8. Original Importer: Name and address.
9. Original Exporter: Name and address.
10. Complete Description of Merchandise: Include heat numbers, HTS 
numbers, physical description. ASTM specification, and other 
available information.

B. Exports to The United States

    MINFER of Russia will provide all Export License/Temporary 
Document, which shall contain the following information except that 
information requested in item #9, date of entry, item #10, importer 
of record, item #16, final destination, and item #17 other, may be 
omitted if unknown to MINFFR of Russia and the Russian licensee.

1. Export License/Temporary Document: Indicate the number(s) 
relating to each sale and or entry.
2. Complete Description of Merchandise: Include the 10 digit HTS 
category, and the ASTM or equivalent grade.
3. Quantity: Indicate in metric tons.
4. F.O.B. Sales Value: Indicate currency used.
5. Unit Price: Indicate currency used per metric ton.
6. Date of Sale: The date all essential terms of the order (i.e, 
price and quantity) become fixed.
7. Sales Order Number(s): Indicate the number(s) relating to each 
sale and/or entry.
8. Date of Export: Date the Export License/Temporary Document is 
Issued.
9. Date of Entry: Date the merchandise entered the United States or 
the date book transfer took place.
10. Importer of Record: Name and address.
11. Trading Company: Name and address of trading company involved in 
sale.
12. Customer: Name and address of the first unaffiliated party 
purchasing from the Russian exporter.
13. Customer Relationship: Indicate whether the customer is 
affiliated or unaffiliated to the Russian exporter.
14. Quota Allocated to Exporter: Indicate the total amount of quota 
allocated to the individual exporter during the Relevant Period.
15. Quota Remaining: Indicate the remaining quota available to the 
individual exporter during the Relevant Period.
16. Final Destination: The complete name and address of the end-
user.
17. Other: The identity of any party(ies) in the transaction chain 
between the customer and the final destination/end-user.

Mill Certification

    MINFER of Russia shall ensure that all shipments of steel plate 
exported to the United States pursuant to this Agreement, shall be 
accompanied by a copy of the original mill certification, which 
includes the heat number(s).

C. Exports Other Than to The United States

    Pursuant to Section VIII, paragraph A, MINFER of Russia will 
provide country-specific volume and value information for exports of 
steel plate to third countries, upon request, regardless of whether 
MINFER of Russia licenses exports of steel plate to such 
country(ies). The following information shall be provided except 
that information requested in item #6, date of entry, #7, importer 
of record, and item #10, may be omitted if unknown to MINFER of 
Russia and the Russian licensee.

1. Export License/Temporary Document: Indicate the number(s) 
relating to each sale and/or entry, if any.
2. Quantity: Indicate in original units of measure sold and/or 
entered in metric tons.
3. Date of Sale: The date all essential terms of the order (i.e., 
price and quantity) become fixed.
4. Sales Order Number(s): Indicate the number(s) relating to each 
sale and/or entry.
5. Date of Export: Date Export License/ Temporary Document is 
issued, if any.
6. Date of Entry: Date the merchandise entered the third country or 
the date a book transfer took place.
7. Importer of Record: Name and address.
8. Customer: Name and address of the first unaffiliated party 
purchasing from the Russian exporter.
9. Customer Relationship: Indicate whether the customer is 
affiliated or unaffiliated.
10. Other: The identity of any party(ies) in the transaction chain 
between the customer and the final destination.

D. Home Market Sales

    Pursuant to Section VIII, paragraph A, the MINFER of Russia will 
provide home market volume and value information for sales of steel 
plate, upon request. The following information shall be provided 
with the exception of item #6, if unknown to MINFER of Russia and 
the Russian producer/exporter.
1. Quantity: Indicate in original units of measure sold and/or 
entered in metric tons. .
2. Date of Sale: The date all essential terms of order (i.e., price 
and quantity) become fixed.
3. Sales Order Number(s): Indicate the number(s) relating to each 
sale and/or entry.
4. Customer: Name and address of the first unaffiliated party 
purchasing from the Russian exporter.
5. Customer Relationship: Indicate whether the customer is 
affiliated or unaffiliated.
6. Other: The identity of any party(ies) in the transaction chain 
between the customer and the final destination.

Appendix II

    Section 734 (1) of the Tariff Act of 1930 as amended:

(1) Special Rule for Non-Market Economy Countries

    (I) In General.--The administering authority may suspend an 
investigation under this subtitle upon acceptance of an agreement 
with a non-market economy country to restrict the volume of imports 
into the United States of the merchandise under investigation only 
if the administering authority determines that:

(A) such agreement satisfies the requirements of subsection (d), and
(B) will prevent the suppression or undercutting of price levels of 
domestic products by imports of the merchandise under investigation.

    (2) Failure of Agreements.--If the administering authority 
determines that the agreement accepted under this subsection no

[[Page 61787]]

longer prevents the suppression or undercutting of domestic prices 
of merchandise manufactured in the United States, the provisions of 
subsection (I) shall apply.

[FR Doc. 97-30395 Filed 11-18-97; 8:45 am]
BILLING CODE 3510-DS-P