61766 Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices

Comment 13: Wood

Respondents claim that the wood it

utilizes in packing/loading was verified

through invoices provided to the

Department.

Petitioners argue that the Department

should use its PAI information and

conversion factor to value wood.

Department Position

Based on both Petitioners’ and

Respondents’ submissions and briefs,

we have used Respondents’ value for

softwood and applied Petitioners’

conversion methodology to calculate a

factor for wood packing. See Final

Determination Calculation

Memorandum, dated October 24, 1997.

Comment 14: Publicly Available

Information (PAI)

Petitioners argue that the Department

should use the factor value information

contained in it submissions because this

information is the only reliable PAI on

the surrogate values of the factors, and

because the information submitted by

Respondents is based on an

inappropriate surrogate country and is

fraught with errors.

Respondents argue that the

Department should not use Petitioners’

PAI. Respondents argue that the

Department should change its surrogate

from Brazil to Poland (Comment 3).

Respondents argue that much of the

information on the record concerning

material factors for Poland are UN

statistics corresponding to the statistics

submitted by Petitioners themselves for

Brazil, as well as to statistics used by

the Department in its preliminary

determination.

Department Position

We do not agree with Petitioners’

contention that its own publicly

available information is the only reliable

information for valuing factors.

However, as stated throughout this

notice, the Department has continued to

use Brazil as the surrogate for the final

determination. Therefore, whether the

information on Poland is reliable is

irrelevant, as we have only used PAI

from Brazil to value factors in this

investigation.

Continuation of Suspension of

Liquidation

On October 24, 1997, the Department

signed a suspension agreement with the

Government of Ukraine (the

Agreement). Therefore, we will instruct

Customs to terminate the suspension of

liquidation of all entries of cut-to-length

carbon steel plate from Ukraine. Any

cash deposits of entries of cut-to-length

carbon steel plate from Ukraine 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 a separate request from the

United Steelworkers of America, an

interested party under section 771(9)(D)

of the Act, on October 14, 1997.

Pursuant to these requests, we have

continued and completed the

investigation in accordance with section

734(g) of the Act. We have found the

following margins of dumping:

Manufacturer/producer/exporter

Weight-average percentage

margin

Azovstal .................................... 81.43

Ilyich .......................................... 155.00

Ukraine-Wide Rate ................... 237.91

The Ukraine-wide rate applies to all

entries of subject merchandise except

for entries from Azovstal and Ilyich.

ITC Notification

In accordance with section 735(d) of

the Act, we have notified the ITC of our

determination. As our final

determination is affirmative, the ITC

will determine, within 45 days, whether

these imports are causing material

injury, or threat of material injury, to an

industry in the United States. If the

ITC’s injury determination is negative,

the agreement will have no force or

effect, and the investigation shall be

terminated. See section 734(f)(3)(A) of

the Act. If, on the other hand, the

Commission’s determination is

affirmative, the Agreement shall remain

in force but the Department shall not

issue an antidumping duty order so long

as (1) the Agreement remains in force,

(2) the Agreement continues to meet the

requirements of subsection (d) and (1) of

the Act, and the parties to the

Agreement carry out their obligations

under the Agreement in accordance

with its terms. See section 734(f)(3)(B)

of the Act.

This determination is published

pursuant to section 735(d) of the Act.

Dated: October 24, 1997.

Robert S. LaRussa,

Assistant Secretary for Import

Administration.

[FR Doc. 97–30391 Filed 11–18–97; 8:45 am]

BILLING CODE 3510–DS–P

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.

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

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.
61768 Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices

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 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 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.

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.
Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices 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
61770 Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices

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

MINFER will provide the data listed in

the Appendix for those specific

transactions within 90 days of the

request.

MINFER will also report transactionspecific 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 publiclyavailable 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.
61772 Federal Register / Vol. 62, No. 223 / Wednesday, November 19, 1997 / Notices

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.
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