[Federal Register Volume 62, Number 223 (Wednesday, November 19, 1997)]
[Notices]
[Pages 61766-61773]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30392]


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DEPARTMENT OF COMMERCE

International Trade Administration
[A-823-808]


Suspension of Antidumping Duty Investigation: Certain Cut-to-
Length Carbon Steel Plate From Ukraine

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 Ukraine. The basis for this action is an 
agreement between the Department and the Government of Ukraine wherein 
the Government of Ukraine has agreed to restrict the volume of direct 
or indirect exports to the United States of CTL plate from all 
Ukrainian 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 Ukraine 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 31958, (June 11, 1997)).
    The Department and the Government of Ukraine initialed a proposed 
agreement suspending this investigation on September 24, 1997. On 
September 25, 1997, we invited interested parties

[[Page 61767]]

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 Ukraine.
    The Department and the Government of Ukraine 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 
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 
Ukraine 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 Ukraine'' and 
``Postponement of the Final Determination: Cut-to-Length Carbon Steel 
Plate from Ukraine'' is hereby terminated. Any cash deposits on entries 
of cut-to-length carbon steel plate from Ukraine 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 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 Certain Cut-To-
Length Carbon Steel Plate From Ukraine

    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 Ukraine enter into this suspension 
agreement (``the Agreement'').
    Pursuant to this Agreement, the Government of Ukraine will restrict 
the volume of direct and indirect exports to the United States of CTL 
plate from all Ukrainian 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, by the Uruguay 
Round Agreements Act, as effective on January 1, 1995 (``the Act'') (l9 
U.S.C. 1673c(1)), the Department shall suspend its antidumping 
investigation with respect to CTL plate produced in Ukraine, 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 subject merchandise 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 Ukraine 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 Ukrainian 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. end-users, 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 Economic Relations (``MINFER'') which must accompany all 
shipments of CTL plate from Ukraine to the United States, and must 
contain all of the information enumerated in the Appendix to this 
Agreement, except that Date of Entry and Final Destination may be 
omitted if unknown to the MINFER and the licensee. It 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 Ukrainian CTL plate into the United 
States.

[[Page 61768]]

    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 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 subject merchandise in this Agreement are flat-rolled 
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 
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.
    Specifically excluded from subject merchandise within the scope of 
this Agreement is grade X-70 steel plate.

III. Export Limits

    A. The export limit for CTL plate for the first Relevant Period 
shall be 158,000 metric tons. Of this export limit not more than 20,000 
metric tons may be utilized in selling CTL plate which is 0.375 inches 
or less in actual or nominal thickness. The parties also agree that an 
increase in the export limit for each subsequent Relevant Period shall 
be made under the following circumstances: (1) The Government of 
Ukraine shall receive a 5 percent increase in the export limit for each 
subsequent Relevant Period if the weighted-average F.O.B. sales price 
for A36 plate over 0.375 inches exceeds the reference price by more 
than 5 percent during the most recently completed Relevant Period; (2) 
this increase in the export limit may be used only for exports of A36 
plate which is over 0.375 inches in thickness; (3) the determination to 
increase the export limit for each subsequent Relevant Period will be 
made by the Department based on the Government of Ukraine's compliance 
with all relevant data reporting requirements.
    B. 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 export limit 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. MINFER will not issue Export 
Licenses accounting for more than sixty percent of the export limit for 
any Relevant Period during either semi-annual period within such 
Relevant Period.
    C. On and after the effective date of this Agreement, the 
Government of Ukraine 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.E), in accordance with the export limits then in effect.
    D. Any export of CTL plate shall not when cumulated with all prior 
exports in such Relevant Period exceed the export limit for that 
Relevant Period.
    E. Any inventories of CTL plate currently held in the United States 
by a Ukrainian 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 MINFER. 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.
    F. Any arrangement involving the exchange, sale, or delivery of CTL 
plate products from Ukraine, 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 Ukraine, 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.
    G. Where CTL plate is imported into the United States and is 
subsequently re-exported or re-packaged and re-exported, the export 
limits shall be increased by the quantity of product 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 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.
    H. 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.

[[Page 61769]]

IV. Reference Price

    A. CTL plate will not be sold below the reference price. 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..............................  $359.00 per metric ton.              
A572.............................  387.00 per metric ton.               
A516.............................  390.00 per metric ton.               
API-2H...........................  530.00 per metric ton.               
------------------------------------------------------------------------

    The reference price for API-2Y will be determined at a later date.
    Until such time as the Department and MINFER agree upon references 
prices for other grades of CTL plate, only grades A36, A572, A516, and 
API-2H may be exported to the United States.
    Best efforts will be made by the Department and MINFER to consult 
for the purpose of establishing references prices for other grades of 
CTL plate by November 30, 1997.
    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 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 will ensure that with respect to merchandise covered by 
each Export License, the Ukrainian 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.). MINFER will ensure that contracts and all relevant 
documentation will be available to the Department and will be subject 
to verification.

V. Export License

    A. The Government of Ukraine will restrict the volume of direct and 
indirect exports of CTL plate to the United States by means of Export 
Licenses. Export Licenses shall be issued by MINFER 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. MINFER shall issue Export Licenses on a first-come-first-serve 
basis for all Ukrainian producers.
    C. Before it issues an Export License, MINFER 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.
    D. MINFER 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. MINFER 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 MINFER in writing of violations 
concerning the price restrictions, export limits 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 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. The validity of Export License shall be six (6) months, except 
that no more than 90 days shall elapse between the date of issuance of 
the Export License and the date on which the merchandise is cleared 
through Ukrainian customs for export.

VI. Implementation

    In order to effectively restrict the volume of exports of CTL plate 
to the United States, the Government of Ukraine agrees to implement the 
following procedures no later than 90 days after the effective date of 
this Agreement, except as provided for in VI.A.:
    A. Establish, through MINFER, an export licensing program for all 
exports of CTL plate to, or destined directly or indirectly for 
consumption in, the United States, as of the effective date of the 
Agreement.
    B. Ensure compliance by any official Ukrainian institution, 
chamber, or other entities authorized by the Government of Ukraine, all 
producers, exporters, brokers, and traders of CTL plate, and their 
affiliated parties, as well as independent trading companies/ resellers 
utilized by the Ukrainian 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 Ukrainian producer, on the sale of the CTL plate, and report 
such information pursuant to Section VIII (A) of this Agreement.
    D. The Government of Ukraine, by law, will prohibit 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 Ukrainian or 
Ukrainian-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 MINFER any subsequent arrangement entered into for the 
sale, exchange, or loan to a person or entity in the United States of 
CTL plate purchased from Ukraine; and to include these same provisions 
in any subsequent contracts involving CTL plate purchased from Ukraine.
    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 Ukraine as the country of origin.

VII. Anticircumvention

    A. MINFER will take all appropriate measures under Ukrainian 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

[[Page 61770]]

timely manner (normally within 45 days). MINFER 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, MINFER shall share with the Department all information 
received or collected by MINFER regarding its inquiries, its analysis 
of such information and the results of such inquiries. MINFER 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. MINFER will also 
establish appropriate mechanisms to enforce this requirement.
    B. MINFER of Ukraine shall advise within one month after the 
effective date of this Agreement that all contracts for sales of CTL 
plate to third countries by Ukrainian 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 MINFER.
    Given the critical need to prevent circumvention, both Governments 
agree to share information to the greatest extent their national 
legislation will allow. Therefore, MINFER 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, MINFER determines 
that a Ukrainian company has participated in a transaction that 
resulted in circumvention of the export limits of this Agreement, then 
MINFER shall impose penalties on such company including, but not 
limited to, denial of access to the CTL plate quota. Additionally, 
MINFER 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 MINFER determines that a company from a third country has 
circumvented the Agreement and the parties agree that no Ukrainian 
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 
MINFER prohibiting sales of Ukrainian 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 MINFER of the facts and the reasons constituting the basis for 
the Department's intended action and will afford MINFER ten days in 
which to comment.
    E. If the Department determines that a Ukrainian/ 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 MINFER 
of the facts and reasons constituting the basis for the Department's 
intended action and will afford MINFER 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 U.S. Customs or 
the U.S. 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, of 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 Ukraine 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.
    I. The Department will enter its determinations regarding 
circumvention into the record of the Agreement.

VIII. Monitoring

    MINFER 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 MINFER indicating the volume of imports 
of the CTL plate to

[[Page 61771]]

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, MINFER 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 the 15th of each month for 
exports to the United States occurring during the previous month. For 
exports to countries other than the United States and for home market 
sales, all such information will be provided to the Department by May 
30 of each year for exports and home market sales during the period 
November 1 through April 30, and by November 30 of each year for 
exports and sales during May 1 through October 31, or within 90 days of 
a request made by the Department. All information will be subject to 
the verification provision identified in Section VIII.C of this 
Agreement. MINFER 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 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 
MINFER at least 90 days before the reporting deadline that transaction-
specific 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, MINFER will 
provide the data listed in the Appendix for those specific transactions 
within 90 days of the request.
    MINFER will also report transaction-specific data for home market 
sales as specified in the Appendix to this Agreement.
    Both governments recognize that effective monitoring of this 
Agreement may require that MINFER 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 MINFER 
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 publicly-available data as well as 
Customs Form 7501 entry summaries and other 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.
    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

    MINFER will permit full verification of all information affiliated 
to the administration of this Agreement, including verification of the 
Ukrainian 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 Ukraine 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

    MINFER 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 MINFER 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.
    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 MINFER 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 MINFER.

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 limit provided for in Section III of this Agreement 
shall remain in force from the effective date of this Agreement through 
November 1, 2002.

[[Page 61772]]

    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 
Ukraine has not been found to have violated the Agreement in any 
substantive manner. Such review and termination shall be conducted 
consistent with Section 353.25 of the Department's Regulations.
    The Government of Ukraine 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 MINFER, 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 Ukrainian CTL plate industry is a market-
oriented industry, or that Ukraine 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 MINFER 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. MINFER does not admit that any 
sales of the merchandise 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 
MINFER 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 Ukraine shall be represented by, an all communications 
and notices shall be given and addressed to:

Department of Commerce

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

Government of Ukraine

Ministry of Foreign Economic Relations and Trade of Ukraine, 8 Livivska 
Square, Kiev, GSP. 655,254655, Ukraine

XV. Effective Date

    The effective date of this Agreement suspending the antidumping 
investigation on CTL plate from Ukraine shall be October 24, 1997.

    Signed on this 24 day of October, 1997.

    For the U.S. Department of Commerce.
Robert S. LaRussa,
Assistant Secretary for Import Administration.

    For the Government of Ukraine.
Sergei Gryshchenko,
Deputy Minister for Ministry of Industrial Policy.

Appendix

    In accordance with the established format, MINFER 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.
    MINFER 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.
    MINFER will report home market sales for those companies which 
represent substantially all of domestic production of CTL plate. For 
these companies, MINFER will report all home market sales of CTL 
plate for those grades listed in Section IV. C. Of the Agreement.
    MINFER 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 of CTL plate held by an 
Ukrainian 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.

B. Exports to the United States

    MINFER will provide all Export Licenses issued to Ukrainian 
entities which shall contain the following information with the 
exception that information requested in item #9, date of entry, item 
10, importer of record, and item #16, final destination may be 
omitted if unknown to MINFER 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 Ukrainian producer/exporter.
    13. Customer Relationship: Indicate whether the customer is 
affiliated or unaffiliated to the Ukrainian producer/exporter.
    14. Remaining Export Limit: Indicate the remaining export limit 
available to the Ukrainian producers during the Relevant Period.
    15. Final Destination: The complete name and address of the end-
user.

[[Page 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