Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices 61773

Customer Certification

MINFER shall ensure that all customers of

the CTL plate shall certify that the

merchandise imported into-the United States

pursuant to this Agreement shall not be

loaned or swapped.

Mill Certification

MINFER shall ensure that all shipments of

CTL 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. Sales to Countries Other Than the United

States

Pursuant to Section VIII, paragraph A,

MINFER will provide country-specific

volume and value information for all exports

of CTL plate to third countries.

1. Customs Export Declaration Number:

Indicates the number(s) related to each

shipment.

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 of Export

Certification is issued.

6. Importer of Record: Name and address.

7. Customer: Name and address of the first

unaffiliated party purchasing from the

Ukrainian producer/exporter.

8. Customer Relationship: Indicate whether

the customer is affiliated or unaffiliated.

9. Name of Vessel: Identity of the name of

vessel for each shipment to third countries.

10. Other: The identity of any subsequent

trading company in the transaction chain

pursuant to Section VII.B.

11. Estimated Date of Entry: Date the

merchandise entered the third country or the

date a book transfer took place.

D. Home Market Sales

Pursuant to Section VIII.A., MINFER will

provide home market sales data for those

companies which represent substantially all

of domestic production of CTL plate. For

these companies, the MINFER will report all

home market sales of CTL plate for those

grades listed in Section IV. C. Of the

Agreement.

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 the order (i.e., price and quantity become

fixed.

3. Sales Order Number(s): Indicate the

number(s) relating to each sale.

4. Customer: Name and address of the first

unaffiliated party purchasing from the

Ukrainian producer.

5. Customer Relationship: Indicate whether

the customer is affiliated or unaffiliated.

[FR Doc. 97–30392 Filed 11–18–97; 8:45 am]

BILLING CODE 3510–DS–P

DEPARTMENT OF COMMERCE

International Trade Administration

[A–570–849]

Suspension of Antidumping Duty

Investigation: Certain Cut-to-Length

Carbon Steel Plate From the People’s

Republic of China

AGENCY: Import Administration,

International Trade Administration,

Department of Commerce.

SUMMARY: The Department of Commerce

(the Department) has suspended the

antidumping investigation on cut-tolength carbon steel plate from the

People’s Republic of China (PRC). The

basis for the suspension is an agreement

by the Government of the PRC to restrict

the volume of direct and indirect

exports to the United States of cut-tolength carbon steel plate from all PRC

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:

Edward Yang, Import Administration,

International Trade Administration,

U.S. Department of Commerce, 14th

Street and Constitution Avenue, N.W.,

Washington, D.C. 20230; telephone:

(202) 482–3910.

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 People’s Republic of China 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 threat of injury

determination (see ITC Investigation

Nos. 731–TA–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 31958,

(June 11, 1997)).

The Department and the People’s

Republic of China 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, Liaoning, Anshan, Bao Steel,

Shanghai Pudong and WISCO.

The Department and the Government

of the People’s Republic of China signed

the final suspension agreement on

October 24, 1997.

Scope of the Investigation

See Notice of Final Determination of

Sales at Less than Fair Value: Certain

Cut-to-Length Carbon Steel Plate from

the People’s Republic of China, 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 Public

Interest Memorandum, dated October

24, 1997. 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 People’s Republic of

China 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 People’s Republic of China’’

and ‘‘Postponement of the Final

Determination: Cut-to-Length Carbon

Steel Plate from the People’s Republic of

China’’ is hereby terminated. Any cash

deposits on entries of cut-to-length

carbon steel plate from the People’s

Republic of China 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

Act. Pursuant to these requests, we have
61774 Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices

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.

Annex 1—Agreement Suspending the

Antidumping Investigation on Certain

Cut-to-Length Carbon Steel Plate From

the People’s Republic of China

For purposes of encouraging free and

fair trade in certain cut-to-length carbon

steel plate (CTL plate), establishing

more normal market relations, and

preventing the suppression or

undercutting of price levels of the

domestic products by imports of the

merchandise subject to this Agreement,

the United States Department of

Commerce (‘‘the Department’’) and the

Government of the People’s Republic of

China enter into this suspension

agreement (‘‘the Agreement’’).

Pursuant to this Agreement, the

Government of the People’s Republic of

China will restrict the volume of direct

and indirect exports to the United States

of CTL plate from all Chinese

producers/exporters, subject to the

terms and provisions set forth below.

For any of the deadlines mentioned in

this Agreement, the Ministry of Foreign

Trade and Economic Cooperation

(‘‘MOFTEC’’) may request an extension

which will be considered by the

Department if it is received in writing

prior to the deadline in question and

includes reasons for the extension.

On the basis of this Agreement,

pursuant to the provisions of Section

734(1) of the Tariff Act of 1930, as

amended, by the Uruguay Round

Agreements Act, as effective on January

1, 1995 (‘‘the Act’’) (19 U.S.C. 1673c(1)),

the Department shall suspend its

antidumping investigation with respect

to CTL plate produced in the People’s

Republic of China, subject to the terms

and provisions set forth below. Further,

the Department will instruct the U.S.

Customs Service (‘‘Customs’’) to

terminate the suspension of liquidation

of, and release any cash deposit or bond

posted on, CTL 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

CTL plate into the United States shall be

considered the date the export license

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

submissions of factual information or

written argument.

C. ‘‘Indirect Exports’’ means

arrangements as defined in Section III.E

of this Agreement and exports from the

People’s Republic of China 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 Chinese

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

Colombia and Puerto Rico) and foreign

trade zones located in the territory of

the United States of America.

E. ‘‘For Consumption’’ means all CTL

plate sold to customers, such as, trading

companies, distributors, resellers, endusers, or service centers.

F. Customer means an entity, such as

a steel service center, reseller, trading

company, end-user, etc., which

consumes CTL 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, in the case of a long-term contract,

the date of contract, as recorded in the

company’s records kept in the ordinary

course of business.

H. ‘‘Export License’’ is the document

issued by the Ministry of Foreign Trade

and Economic Cooperation

(‘‘MOFTEC’’) which must accompany

all shipments of CTL plate from the

People’s Republic of China to the

United States, and must contain all of

the information enumerated in the

Appendix to this Agreement, except that

the categories Date of Entry, Importer of

Record, Final Destination, and Other

may be omitted if unknown to the

MOFTEC and the licensee. An export

license shall be required for customs

clearance into the United States.

I. ‘‘Reference Price’’ means the price

calculated by the Department, as

described in Section IV, on a quarterly

basis to be used as a floor price for sales

of Chinese CTL plate into the United

States.

J. ‘‘Relevant Period’’ for the export

limits of the Agreement means the

period November 1, through October 31

of each year that the Agreement is in

effect.

II. Product Coverage

The products covered by this

Agreement include hot-rolled iron and

non-alloy steel universal mill plates

(i.e., flat-rolled products rolled on four

faces or in a closed box pass, of a width

exceeding 150 mm but not exceeding

1250 mm and of a 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 nonmetallic substances; and

certain iron and non-alloy steel flatrolled 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 subject

merchandise in this Agreement are flatrolled products of nonrectangular crosssection 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 bevelled or

rounded at the edges. This merchandise

is currently classified 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. Although the HTS

subheadings are provided for

convenience and customs purposes, the

written description of the scope of this

Agreement is dispositive.
Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices 61775

Specifically excluded from subject

merchandise within the scope of this

Agreement is grade X–70 steel plate.

III. Export Limit

A. The export limit for CTL plate for

the first Relevant Period shall be

150,000 metric tons. Until such time as

reference prices are agreed to for other

grades, only grade A36 may be exported.

Of this export limit, not more than

25,000 metric tons may be utilized in

selling CTL plate which is 0.375 inches

or less in actual or nominal thickness,

and not more than 25,000 metric tons

may be utilized in selling CTL plate

which is three inches or more in actual

or nominal thickness. No later than 60

days prior to the end of the first

Relevant Period, the Department shall

calculate an upward or downward

adjustment to the next Relevant Period’s

quota based upon changes in U.S.

apparent consumption for steel plate.

U.S. apparent consumption will be

calculated using official statistics from

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 the

Department at the time of the

calculation to the level of the previous

corresponding twelve months of data.

The Department will then apply the

adjustment to the Relevant Period’s

export limit. The Department will

similarly adjust the export limit every

Relevant Period, and the effects of the

adjustment will be cumulative.

Deductions from the export limits shall

be made based on the ‘‘Date of Export’’,

as defined in Section I. No more than

sixty percent of the export limit for any

Relevant Period may be licensed during

each half (six-month period) within a

given Relevant Period.

B. On and after the effective date of

this Agreement, the Government of the

People’s Republic of China will restrict

the volume of direct and indirect

exports of CTL plate to the United

States, and the transfer and withdrawal

from inventory of CTL plate (consistent

with the provisions of Section III.D), in

accordance with the export limits then

in effect.

C. Export licenses may not be issued

for more than the entire amount of quota

allocated in any given Relevant Period.

Any CTL plate exported during a

Relevant Period shall not when

cumulated with all prior exports in such

Relevant Period exceed the export limit

for that Relevant Period.

D. Any inventories of CTL plate

currently held in the United States by a

Chinese legal entity and imported into

the United States between November 5,

1996 and the effective date of this

Agreement 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

issued by MOFTEC. Any such transfers

or withdrawals from inventory shall be

deducted from the export limits in effect

at the time the Export License is issued.

2. A request for an Export License

under this provision shall be

accompanied by a report containing the

information set forth in the Appendix to

this Agreement.

E. Any arrangement involving the

exchange, sale, or delivery of CTL plate

products from the People’s Republic of

China, whether or not further processed,

to the degree it results in the sale or

delivery in the United States of CTL

plate from a country other than the

People’s Republic of China, is subject to

the requirements of Section V and will

be counted toward the export limits.

Any such transaction that does not

comply with the requirements of

Section V will be deducted from the

export limits pursuant to Section VII.

F. Where CTL plate is imported into

the United States and is subsequently

re-exported or re-packaged and reexported, the export limits shall be

increased by the quantity of product reexported. Such increase will be

applicable to the Relevant Period

corresponding to the time of such reexport. Such increase will be applied

only after the Department receives, and

has the opportunity to verify, evidence

demonstrating original importation, any

re-packaging, and subsequent

exportation. The re-exported material

must be identical to the imported

material.

G. Export Licenses for a given

Relevant Period may not be issued after

the expiration of the Relevant Period,

except that Export Licenses not so

issued may be issued 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 limits applicable to the previous

Relevant Period.

Export Licenses for up to 15 percent

of the export limits 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 limits applicable to

the following Relevant Period.

H. For the first 90 days after the

effective date of this Agreement, CTL

plate shall be admitted into the United

States with a temporary Export License.

The volume of any such imports will

be deducted from the export limits

applicable to the first Relevant Period.

A full reporting of any such imports,

which must correspond to the United

States sales information detailed in the

Appendix to this Agreement, must be

submitted to the Department no later

than 30 days after the conclusion of the

90 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. CTL plate will not be sold below

the reference price on the date of sale.

Each grade of CTL plate shall have its

own reference price, and all such

reference prices shall be calculated in

the same manner.

B. The reference price issued

quarterly by the Department shall be

released by October 1, January 1, April

1, and July 1 of each year and shall be

effective on November 1, February 1,

May 1, and August 1, respectively. The

reference price for the first Relevant

Period is set forth in Section IV.C. of

this Agreement and shall remain

effective until revised by the

Department pursuant to this paragraph

IV.B. 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:

Grade of CTL

plate Reference price

A36 ................... $350.00 per metric ton.

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 for carbon steel plate for the most

recent three months for which data is

available preceding the date on which

the reference price is issued. If the last

month of the BLS PPI for carbon steel

plate 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 quarter,

the reference price will be adjusted on

the basis of the BLS PPI for carbon steel

plate for the last month of the threemonth period.

E. MOFTEC will ensure that, with

respect to merchandise covered by each
61776 Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices

Export License, the Chinese unit values

of imports of CTL plate into the United

States will equal or exceed the reference

price at equivalent points in the

transaction chain. The reference price

will be at a level in the transaction

chain as far upstream as possible (i.e.,

F.O.B Chinese ocean port, (excluding

Hong Kong)). MOFTEC will ensure that

contracts and all relevant

documentation will be available to the

Department and will be subject to

verification.

F. CTL plate imported after the

effective date of the Agreement,

exported from the People’s Republic of

China prior to October 24, 1997 and

sold pursuant to a contract in effect on

or before August 31, 1997, in which the

price to the first unrelated purchaser in

the United States is fixed at a specific

and definite amount with respect to the

import at issue, shall not be subject to

reference price restrictions. Consistent

with Section III.H, the volume of such

imports shall be deducted from the

export limits.

V. Export License

A. MOFTEC will restrict the volume

of direct and indirect exports of CTL

plate to the United States by means of

annual quota allocations and Export

Licenses. Export Licenses shall be

issued by MOFTEC for all direct and

indirect exports of CTL plate to the

United States in accordance with the

export limits in section III and the

reference price in section IV.

B. Thirty days following the annual

allocation of quota rights for any

Relevant Period, MOFTEC shall provide

to the Department a written report

identifying each quota recipient and the

volume of quota which each recipient

has been accorded (‘‘report of quota

allocation results’’). MOFTEC may

reallocate the volume of quota among

quota recipients without prior approval

from the Department, but must inform

the Department in writing within thirty

days of such reallocation.

C. Before it issues an Export License,

MOFTEC will ensure that the Relevant

Period’s export limit is not exceeded

and that the price for the CTL plate is

at or above the reference price on the

date of sale. The quantity specified on

each export license may vary up to ten

percent above or below the quantity

actually shipped under that license.

MOFTEC, however, will ensure that the

total amount of CTL plate shipped

under such licenses does not exceed the

export limit for the Relevant Period.

D. MOFTEC shall take action,

including the imposition of penalties, as

may be necessary to make effective the

obligations resulting from the price

restrictions, export limits, and Export

Licenses. MOFTEC will inform the

Department, in writing, of any

violations concerning the price

restrictions, export limits, or Export

Licenses which come to its attention

and the action taken with respect

thereto.

The Department will inform MOFTEC

in writing of violations concerning the

price restrictions, export limits, and/or

Export Licenses which come to its

attention and the action taken with

respect thereto.

E. Export Licenses will be issued

sequentially, endorsed against the

export limit for the Relevant Period, and

will reference the report of quota

allocation results for the appropriate

Relevant Period.

F. Export Licenses must be issued no

earlier than 90 days before the day on

which the merchandise is accepted by a

transportation company, as indicated in

the bill-of-lading or a comparable

transportation document, for export.

Export Licenses must contain an English

language translation.

G. On and after the effective date of

this Agreement, the United States shall

require presentation of an Export

License as a condition for entry of CTL

plate into the United States. The United

States will prohibit the entry of any CTL

plate not accompanied by an Export

License.

H. For purposes of this Agreement,

the duration of the validity of the Export

License will be a period of 180 days.

VI. Implementation

In order to effectively restrict the

volume of exports of CTL plate to the

United States, MOFTEC agrees to

implement the following procedures no

later than 90 days after the effective date

of this Agreement.

A. Establish, through MOFTEC, an

export licensing program for all exports

of CTL plate to, or destined directly or

indirectly for consumption in, the

United States.

B. Ensure compliance by any official

Chinese institution, chamber, or other

entities authorized by the Government

of the People’s Republic of China, all

producers, exporters, brokers, and

traders of CTL plate, and their affiliated

parties, as well as independent trading

companies/resellers utilized by the

Chinese producer to make sales to the

United States, with all procedures

established in order to effectuate this

Agreement.

C. Collect information from all

producers, exporters, brokers, and

traders of the CTL plate to the United

States, and their affiliated parties; as

well as independent trading companies/

resellers utilized by the Chinese

producer, on the sale of the CTL plate,

and report such information pursuant to

Section VIII(A) of this Agreement.

D. Prohibit, by law, direct and

indirect exports to the United States of

CTL plate except under Export Licenses

issued pursuant to Section V.A and

impose strict sanctions, such as

penalties or prohibition from

participation in the export limits

allowed by the Agreement, in the event

that any Chinese or Chinese-affiliated

party does not comply in full with all

terms of the Agreement.

E. Require that purchasers agree: not

to circumvent this Agreement; to report

to MOFTEC any subsequent

arrangement(s) entered into for the sale,

exchange, or loan to a person or entity

in the United States of CTL plate

purchased from the People’s Republic of

China; and to ensure that these same

provisions are included in any

subsequent contracts involving CTL

plate purchased from the People’s

Republic of China.

F. Prohibit direct and indirect exports

to the United States of CTL plate which

is not die-stamped with the mark of the

producing mill and which is not marked

with the People’s Republic of China as

the country of origin.

VII. Anticircumvention

A. MOFTEC will take all appropriate

measures under Chinese law to prevent

circumvention of this Agreement. It

shall respond promptly to conduct an

inquiry into any and all allegations of

circumvention, including allegations

raised by the Department, and shall

complete such inquiries in a timely

manner (normally within 45 days).

MOFTEC shall notify the Department, in

writing, of the results of its inquiries

within ten days of the conclusion of

such inquiries. Within 15 days of a

request from the Department, MOFTEC

shall share with the Department all

information received or collected by

MOFTEC regarding its inquiries, its

analysis of such information and the

results of such inquiries. MOFTEC will

require all exporters of CTL plate to

include a provision in their contracts for

sales to countries other than the United

States that the CTL plate sold through

such contracts cannot be re-exported,

transhipped, or swapped to the United

States, or otherwise used to circumvent

the export limits of this Agreement.

MOFTEC will also establish appropriate

mechanisms to enforce this

requirement.

B. MOFTEC shall advise within one

month after the effective date of this

Agreement that all contracts for sales of

CTL plate to third countries by Chinese
Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices 61777

producers/exporters shall include a

clause which stipulates the following:

that in the event that their customer

sells the merchandise to another trading

company it must provide the identity of

the subsequent trading company to the

Government of the People’s Republic of

China.

Given the critical need to prevent

circumvention, both Governments agree

to share information to the greatest

extent their national legislation will

allow. Therefore, MOFTEC agrees to use

its maximum efforts to provide

transaction specific data for all third

country sales to the final end-user.

C. If, in an inquiry pursuant to

paragraph A, MOFTEC determines that

a Chinese company has participated in

a transaction that resulted in

circumvention of the export limits of

this Agreement, then MOFTEC shall

impose penalties on such company

including, but not limited to, denial of

access to the CTL plate quota.

Additionally, MOFTEC shall deduct an

amount of CTL plate equivalent to the

amount involved in such circumvention

from the export limit and shall

immediately notify the Department, in

writing, 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.

D. If MOFTEC determines that a

company from a third country has

circumvented the Agreement and the

parties agree that no Chinese entity

participated in or had knowledge of

such activities, then the parties shall

hold consultations for the purpose of

sharing evidence regarding such

circumvention and reaching mutual

agreement on the appropriate steps to be

taken to eliminate such circumvention,

such as MOFTEC prohibiting sales of

Chinese CTL plate to the company

responsible or reducing CTL plate

exports to the country in question. If the

parties are unable to reach a mutual

agreement within 45 days, then the

Department may take appropriate

action, such as deducting the amount of

CTL plate involved in such

circumvention from the export limit, or

instructing Customs to deny entry to

any CTL plate sold by the entity found

to be circumventing the Agreement,

taking into account all relevant factors.

Before taking such action, the

Department will notify MOFTEC of the

facts and the reasons constituting the

basis for the Department’s intended

action and will afford MOFTEC ten days

in which to comment.

E. If the Department determines that

a Chinese or third country 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 45 days, the Department may

take appropriate action, such as

deducting the amount of CTL plate

involved in such circumvention from

the export limit, or instructing Customs

to deny entry to any CTL plate sold by

the entity found to be circumventing the

Agreement. Before taking such action,

the Department will notify MOFTEC of

the facts and reasons constituting the

basis for the Department’s intended

action and will afford MOFTEC ten days

in which to comment.

F. The Department shall direct the

U.S. Customs Service to require all

importers of CTL plate into the United

States, regardless of stated country of

origin, to submit at the time of entry a

written statement certifying that the

CTL 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

the Department has reason to believe

that such a certification has been made

falsely, the Department will refer the

matter to Customs or the Department of

Justice for further action.

G. Given the fungibility of the world

steel market, the Department will take

the following factors into account in

distinguishing normal steel 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 the Department pursuant to

Section VIII.A;

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 producing facilities;

6. Existence of any payments

unaccounted for by previous or

subsequent deliveries, or any payments

to one party for merchandise delivered

or swapped by another party;

7. Sequence and timing of the

arrangements; and

8. Any other information relevant to

the transaction or circumstances.

H. ‘‘Swaps’’ include, but are not

limited to:

Ownership swaps—involve the

exchange of ownership of any type of

CTL plate product(s), without physical

transfer. These may include exchange of

ownership of CTL plate products in

different countries, so that the parties

obtain ownership of products located in

different countries; or exchange of

ownership of CTL plate products

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 CTL plate

products, without any exchange of

ownership.

Displacement swaps—involve the sale

or delivery of any type of steel

product(s) from the People’s Republic of

China 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 CTL

plate products of any type, regardless of

the sequence of the transaction. Two

years after the effective date of this

Agreement, this provision with regard to

displacement swaps will cease to exist

unless the Department determines that

there has been evidence of displacement

swaps during the preceding two years.

I. The Department will enter its

determinations regarding circumvention

into the record of the Agreement.

VIII. Monitoring

MOFTEC will provide to the

Department such information as is

necessary and appropriate to monitor

the implementation of and compliance

with the terms of this Agreement. The

Department shall provide semi-annual

reports to MOFTEC indicating the

volume of imports of the CTL 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 the effective date of this

Agreement, MOFTEC shall collect and

provide to the Department the

information set forth, in the agreed

format, in the Appendix to this

Agreement. All such information will be

provided to the Department by May 30

of each year for exports and aggregate

home market sales during the period

November 1 through April 30, and by

November 30 of each year for exports

during the period May 1 through

October 31, or within 90 days of a
61778 Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices

request made by the Department.

MOFTEC agrees to provide transactionspecific information for home market

sales upon demand, within 30 days of

a request made by the Department. Such

information will be subject to the

verification provision identified in

Section VIII.C of this Agreement.

MOFTEC agrees to allow sales of CTL

plate only through those brokers and

trading companies which permit

verification and full reporting of data.

The Department 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 by HTS category to each third

country will be provided to the

Department by July 30 of each year for

exports during the period November 1

through April 30 and by January 31 of

each year for exports during period May

1 through October 31.

Transaction-specific data for all third

country sales will also be reported on

the schedule provided above in the

format provided in the Appendix.

However, if the Department concludes

that transaction-specific data is not

necessary for a given period, it will

notify MOFTEC at least 90 days before

the reporting deadline that transactionspecific sales data need not be reported.

If the Department determines that such

data is relevant in connection with

Section VII and requests information on

transactions for one or more third

countries during a period for which the

Department waived complete reporting,

MOFTEC will provide the data listed in

the Appendix for those specific

transactions within 90 days of the

request.

Both governments recognize that

effective monitoring of this Agreement

may require that MOFTEC provide

information additional to that which is

identified above. Accordingly, the

Department may establish additional

reporting requirements, as appropriate,

during the course of this Agreement.

The Department shall provide notice to

MOFTEC 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.

B. Other Sources for Monitoring

The Department will review publiclyavailable data as well as Customs Form

7501 entry summaries and other official

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.

The Department will monitor Bureau

of the Census IM–115 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, the

Department may request the U.S.

Customs Service to provide such

information. The Department may

request other additional documentation

from the U.S. Customs Service.

The Department may also request the

U.S. Customs Service to direct ports of

entry to forward an Antidumping Report

of Importations for entries of the CTL

plate during the period this Agreement

is in effect.

C. Verification

MOFTEC will permit full verification

of all information affiliated to the

administration of this Agreement,

including verification of the Chinese

producer and the trading companies/

brokers utilized in making sales/

shipments to the United States, on an

annual basis or more frequently, as the

Department deems necessary to ensure

that the Government of the People’s

Republic of China 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. The Department shall make

available to representatives of each

party to the proceeding, under

appropriately-drawn administrative

protective orders consistent with the

Department’s Regulations, business

proprietary information submitted to the

Department semi-annually or upon

request, and in any administrative

review of this Agreement.

B. Not later than 30 days after the date

of disclosure under Section VII.A, the

parties to the proceeding may submit

written comments to the Department,

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 Section 751 of the Act

(19 U.S.C. 1675) and applicable

regulations.

X. Consultations

MOFTEC and the Department 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

MOFTEC or the Department.

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 Section 353.19 of the Department’s

Regulations.

Each party 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 the Agreement

or an indication that 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, the Department will

engage in emergency consultations.

Such consultations shall begin no later

than 14 days from the day of request

and shall provide for full review, but in

no event will exceed 30 days. After

consultations, the Department will

provide MOFTEC 20 days within which

to provide comments. The Department

will make a determination within 30

days of the date established for

submission of comments by MOFTEC.

B. Appropriate Action

If the Department determines that this

Agreement is being or has been violated,

the Department will take such action as

it determines is appropriate under 734(i)

of the Act and Section 353.19 of the

Department’s Regulations.

XII. Duration

The export limits provided for in

Section III of this Agreement shall

remain in force from the effective date

of this Agreement through November 1,

2002.

The Department will, upon receiving

a proper request no later than November

1, 2001, conduct an administrative

review under Section 751 of the Act.

The Department expects to terminate

this Agreement and the underlying

investigation no later than November 1,

2002, provided that the People’s

Republic of China has not been found to

have violated the Agreement in any

substantive manner. Such review and

termination shall be conducted
Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices 61779

consistent with section 353.25 of the

Department’s Regulations.

The Government of the People’s

Republic of China may terminate this

Agreement at any time upon notice to

the Department. Termination shall be

effective 60 days after such notice is

given to the Department. Upon

termination at the request of MOFTEC,

the provisions of Section 734(i) of the

Act shall apply.

XIII. Conditions

The Department recognizes that it

may determine during the life of this

Agreement that the Chinese CTL plate

industry is a market-oriented industry,

or that the People’s Republic of China

is a market economy country. In either

event, the Department may:

(a) Enter into a new suspension

agreement under Section 734(b) or

734(c) of the Act; or

(b) If the investigation was not

completed under section 353.18(i) of the

Department’s regulations, afford

MOFTEC a full opportunity to submit

new information, and take such

information into account in reaching its

final determination—provided that all

parties to the proceeding are given a full

opportunity to submit factual

information and argument in rebuttal; or

(c) If the investigation was completed

under section 353.18(i), consider a

request made no later than 30 days after

termination of the Agreement to

conduct a changed circumstances

review under Section 751(b).

XIV. Other Provisions

A. In entering into this Agreement,

MOFTEC does not admit that any sales

of CTL plate subject to this Agreement

have been made at less than fair value

or that such sales have materially

injured, or threatened material injury to,

an industry or industries in the United

States.

B. The Department 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 CTL

plate products by imports of the

merchandise subject to this Agreement.

C. The Department does not consider

any of the obligations concerning

exports of CTL plate to the United States

undertaken by MOFTEC 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.

D. The English language version of

this Agreement shall be controlling.

E. For all purposes hereunder, the

Department and the signatory

Government of the People’s Republic of

China shall be represented by, and all

communications and notices shall be

given and addressed to:

U.S. Department of Commerce,

Assistant Secretary for Import

Administration, International Trade

Administration, Washington, D.C.

20230

Government of the People’s Republic of

China, Ministry of Foreign Trade and

Economic Cooperation of the People’s

Republic of China, Beijing 100731

XV. Effective Date

The effective date of this Agreement

suspending the antidumping

investigation on CTL plate from the

People’s Republic of China shall be

October 24, 1997.

Signed on this 24th day of October, 1997.

For the U.S. Department of Commerce.

Robert S. LaRussa,

Assistant Secretary for Import

Administration.

For the Government of the People’s

Republic of China.

Shi Jianxin,

Minister Counsellor, Embassy of the People’s

Republic of China.

Appendix

In accordance with the established format,

MOFTEC shall collect and provide to the

Department all information necessary to

ensure compliance with this Agreement. This

information will be provided to the

Department on a semi-annual basis, or upon

request.

MOFTEC will collect and maintain data on

exports to the United States, and to countries

other than the United States, on a continuous

basis and provide the prescribed information

to the Department.

MOFTEC will report the aggregate volume

and value of home market sales of CTL plate

for those companies which exported to the

United States in the same reporting period as

specified in Section VIII.A. For these

companies, MOFTEC will report the

aggregate home market sales of CTL plate for

the grade listed in Section IV. C. of the

Agreement. Upon demand, MOFTEC will

provide the information requested in the

‘‘Home Market Sales’’ section.

MOFTEC will provide a narrative

explanation to substantiate all data collected

in accordance with the following formats.

Report of Inventories

Report, by location, the inventories of CTL

plate held by a Chinese legal entity in the

United States and imported into the United

States during the period November 5, 1996,

through the effective date of the Agreement.

1. Quantity: Indicate original units of

measure (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 beneficial title to the

merchandise.

4. Contract Registration Number: Indicate

the number(s) relating to each entry now

being held in inventory.

5. Export License Number: Indicate the

number(s) relating to each sale or entry.

6. Date of Original Export: Date the Export

License is issued.

7. Date of Entry: Date the merchandise

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 number, physical

description, ASTM specification, and other

available information.

Exports to the United States

MOFTEC will provide all Export Licenses

issued to Chinese entities which shall

contain the following information with the

exception that information requested in item

#9, date of entry, item #10, Importer of

Record; item #16, final destination, item #17,

other, may be omitted if unknown to

MOFTEC and the licensee.

1. Export License number(s): 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 per metric ton.

6. Date of Sale: The date all essential terms

of order (i.e., price and quantity) become

fixed.

7. Sales Order Number (s): Indicate the

specification number/order number relating

to each sale and/or shipment.

8. Date of Export: Date the export license

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

Chinese producer/exporter.

13. Customer Relationship: Indicate

whether the customer is affiliated or

unaffiliated with the Chinese producer/

exporter.

14. Quota Allocated to Exporter: Indicate

the total amount of quota allocated to the

individual Chinese producer/exporter during

the Relevant Period.

15. Quota Remaining: Indicate the

remaining quota available to the individual

Chinese producer/exporter during the

Relevant Period.

16. Final Destination: Indicate the

complete name and address of the end-user.

17. Other: Indicate the identity of any

party(ies) in the transaction chain between

the customer and the final destination/end

user.

Customer Certification

MOFTEC shall ensure that all customers of

the CTL plate shall certify that the
61780 Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices

merchandise imported into the United States

pursuant to this Agreement shall not be

loaned or swapped.

Mill Certification

MOFTEC shall ensure that all shipments of

CTL 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).

Sales to Countries Other Than the United

States

Pursuant to Section VIII, paragraph A,

MOFTEC will provide country-specific

volume and value information for all exports

of CTL plate to third countries. The following

information shall be provided except that

information requested in item #6, importer of

record, and item #10, other, may be omitted

if unknown to MOFTEC and the licensee.

1. Customs Export Declaration Number:

Indicate the number(s) related to each

shipment.

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 of Export

Certification is issued.

6. Importer of Record: Name and address.

7. Customer: Name and address of the first

unaffiliated party purchasing from the

Chinese producer/exporter.

8. Customer Relationship: Indicate whether

the customer is affiliated or unaffiliated.

9. Name of Vessel: Identify the name of

vessel for each shipment to third countries.

10. Other: The identity of any subsequent

trading company in the transaction chain

pursuant to Section VII.B.

11. Estimated Date of Entry: Date the

merchandise entered the third country or the

date a book transfer took place.

Home Market Sales

Pursuant to Section VIII.A., MOFTEC will

provide transaction-specific home market

information for sales of subject merchandise,

upon demand. The following information

shall be provided, except that information

requested in item #6 may be omitted if

unknown to MOFTEC and the licensee.

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 the 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

affiliated party purchasing from the Chinese

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.

[FR Doc. 97–30394 Filed 11–18–97; 8:45 am]

BILLING CODE 3510–DS–P

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.

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-toLength 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