Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices 1103

1The petitioners in this investigation are

Bethlehem Steel Corporation, Gulf States Steel, the

Independent Steelworkers Union, Ispat Inland

Steel, LTV Steel Company Inc., National Steel

Corporation (not a petitioner in the Japan case),

Steel Dynamics, U.S. Steel Group (a unit of USX

Corporation), Weirton Steel Corporation, and

United Steelworkers of America.

2Section A of the questionnaire requests general

information concerning a company’s corporate

structure and business practices, the merchandise

under investigation that it sells, and the manner in

which it sells that merchandise in all of its markets.

Section B requests a complete listing of all home

market sales, or, if the home market is not viable,

of sales in the most appropriate third-country

market. Section C requests a complete listing of U.S.

sales. Section D requests information on the cost of

production (COP) of the foreign like product and

the constructed value (CV) of the merchandise

under investigation.

ITC Notification

In accordance with section 733(f) of

the Act, we have notified the ITC of our

determination. If our final antidumping

determination is affirmative, the ITC

will determine whether these imports

are materially injuring, or threaten

material injury to, the U.S. industry.

The deadline for that ITC determination

would be the later of 120 days after the

date of these preliminary determination

or 45 days after the date of our final

determination.

Public Comment

Case briefs for this investigation must

be submitted no later than one week

after the issuance of the verification

reports. Rebuttal briefs must be filed

within five days after the deadline for

submission of case briefs. A list of

authorities used, a table of contents, and

an executive summary of issues should

accompany any briefs submitted to the

Department. Executive summaries

should be limited to five pages total,

including footnotes.

Section 774 of the Act provides that

the Department will hold a hearing to

afford interested parties an opportunity

to comment on arguments raised in case

or rebuttal briefs, provided that such a

hearing is requested by any interested

party. If a request for a hearing is made

in an investigation, the hearing will

tentatively be held two days after the

deadline for submission of the rebuttal

briefs, at the U.S. Department of

Commerce, 14th Street and Constitution

Avenue, NW, Washington, D.C. 20230.

In the event that the Department

receives requests for hearings from

parties to several cold-rolled cases, the

Department may schedule a single

hearing to encompass all those cases.

Parties should confirm by telephone the

time, date, and place of the hearing 48

hours before the scheduled time.

Interested parties who wish to request

a hearing, or to participate if one is

requested, must submit a written

request within 30 days of the

publication of this notice. Requests

should specify the number of

participants and provide a list of the

issues to be discussed. Oral

presentations will be limited to issues

raised in the briefs.

If this investigation proceeds

normally, we will make our final

determination no later than 135 days

after the date of publication of this

notice in the Federal Register.

This determination is issued pursuant

to sections 733(d) and 777(i)(1) of the

Act.

Dated: December 28, 1999.

Holly A. Kuga,

Acting Assistant Secretary for Import

Administration.

[FR Doc. 00–297 Filed 1–6–00; 8:45 am]

BILLING CODE 3510–DS–P

DEPARTMENT OF COMMERCE

International Trade Administration

[A–560–807]

Notice of Preliminary Determination of

Sales at Less Than Fair Value and

Postponement of Final Determination:

Certain Cold-Rolled Flat-Rolled

Carbon-Quality Steel Products From

Indonesia

AGENCY: Import Administration,

International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: January 7, 2000.

FOR FURTHER INFORMATION CONTACT:

Arland DiGirolamo or Gabriel Adler at

(202) 482–1278 or (202) 482–1442,

respectively; Import Administration,

Room 1870, International Trade

Administration, U.S. Department of

Commerce, 14th Street and Constitution

Avenue, NW, Washington, DC 20230.

The Applicable Statute and Regulations

Unless otherwise indicated, all

citations to the statute are references to

the provisions effective January 1, 1995,

the effective date of the amendments

made to the Tariff Act of 1930 (the Act)

by the Uruguay Round Agreements Act

(URAA). In addition, unless otherwise

indicated, all citations to Department of

Commerce (Department) regulations

refer to the regulations codified at 19

CFR part 351 (April 1999).

Preliminary Determinations

We preliminarily determine that coldrolled flat-rolled carbon-quality steel

products (cold-rolled steel products)

from Indonesia are being sold, or are

likely to be sold, in the United States at

less than fair value (LTFV), as provided

in section 733 of the Act. The estimated

margins of sales at LTFV are shown in

the Suspension of Liquidation section of

this notice.

Case History

This investigation was initiated on

June 21, 1999.1 See Initiation of

Antidumping Duty Investigations:

Certain Cold-Rolled Flat-Rolled CarbonQuality Steel Products from Argentina,

Brazil, the People’s Republic of China,

Indonesia, Japan, the Russian

Federation, Slovakia, South Africa,

Taiwan, Thailand, Turkey, and

Venezuela, 64 FR 34194 (June 25, 1999)

(Initiation Notice). Since the initiation

of the investigation, the following

events have occurred.

The Department issued an

antidumping questionnaire to PT

Krakatau, the only known producer of

cold rolled steel products in Indonesia,

on June 22, 1999 (Section A) and July

9, 1999 (Sections B through D).2 We

issued supplemental questionnaires

where appropriate. PT Krakatau

submitted timely responses to the

Department’s questionnaires.

On July 16, 1999, the United States

International Trade Commission (the

ITC) preliminarily determined that there

is a reasonable indication that imports

of the products under investigation are

materially injuring the United States

industry. See Certain Cold-Rolled Steel

Products From Argentina, Brazil, China,

Indonesia, Japan, Russia, Slovakia,

South Africa, Taiwan, Thailand,

Turkey, and Venezuela: Determinations,

64 FR 41458 (July 30, 1999).

On November 5, 1999, the Department

postponed the preliminary

determination in this case for 30 days in

accordance with section 733(c) of the

Act and 19 CFR 351.205(b)(2). See

Notice of Postponement of Preliminary

Antidumping Duty Determinations:

Certain Cold-Rolled Flat-Rolled CarbonQuality Steel Products from Indonesia,

the People’s Republic of China, Taiwan

and Turkey, 64 FR 61825 (November 15,

1999).

Postponement of Final Determination

and Extension of Provisional Measures

Section 735(a)(2) of the Act provides

that a final determination may be

postponed until not later than 135 days

after the date of the publication of the

preliminary determination if, in the

event of an affirmative preliminary

determination, a request for such

postponement is made by exporters who

account for a significant proportion of

1104 Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices

exports of the subject merchandise or if,

in the event of a negative preliminary

determination, a request for such

postponement is made by the

petitioners. The Department’s

regulations, at 19 CFR 351.210(e)(2),

require that requests by respondents for

postponement of a final determination

be accompanied by a request for

extension of provisional measures from

a four-month period to not more than

six months. On October 22, 1999, PT

Krakatau filed a request for the

postponement of the final determination

in the event of an affirmative

preliminary determination. On October

28, PT Krakatau filed a request for the

extension of provisional measures from

a four-month period to not more than

six months in the event that the

Department postpones the final

determination. Accordingly, since we

have made an affirmative preliminary

determination, we have postponed the

final determination until not later than

135 days after the date of the

publication of the preliminary

determination.

Period of Investigation

The period of the investigation (POI)

is April 1, 1998 through March 31, 1999.

This period corresponds to the

respondent’s four most recent fiscal

quarters prior to the month of the filing

of the petition (i.e., June 1999).

Scope of Investigation

For purposes of this investigation, the

products covered are certain cold-rolled

(cold-reduced) flat-rolled carbon-quality

steel products, neither clad, plated, nor

coated with metal, but whether or not

annealed, painted, varnished, or coated

with plastics or other non-metallic

substances, both in coils, 0.5 inch wide

or wider, (whether or not in

successively superimposed layers and/

or otherwise coiled, such as spirally

oscillated coils), and also in straight

lengths, which, if less than 4.75 mm in

thickness having a width that is 0.5 inch

or greater and that measures at least 10

times the thickness; or, if of a thickness

of 4.75 mm or more, having a width

exceeding 150 mm and measuring at

least twice the thickness. The products

described above may be rectangular,

square, circular or other shape and

include products of either rectangular or

non-rectangular cross-section 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.

Specifically included in this scope are

vacuum degassed, fully stabilized

(commonly referred to as interstitial-free

(IF)) steels, high strength low alloy

(HSLA) steels, and motor lamination

steels. IF steels are recognized as low

carbon steels with micro-alloying levels

of elements such as titanium and/or

niobium added to stabilize carbon and

nitrogen elements. HSLA steels are

recognized as steels with micro-alloying

levels of elements such as chromium,

copper, niobium, titanium, vanadium,

and molybdenum. Motor lamination

steels contain micro-alloying levels of

elements such as silicon and aluminum.

Steel products included in the scope

of this investigation, regardless of

definitions in the Harmonized Tariff

Schedules of the United States

(HTSUS), are products in which: (1)

Iron predominates, by weight, over each

of the other contained elements; (2) the

carbon content is 2 percent or less, by

weight, and; (3) none of the elements

listed below exceeds the quantity, by

weight, respectively indicated:

1.80 percent of manganese, or

2.25 percent of silicon, or

1.00 percent of copper, or

0.50 percent of aluminum, or

1.25 percent of chromium, or

0.30 percent of cobalt, or

0.40 percent of lead, or

1.25 percent of nickel, or

0.30 percent of tungsten, or

0.10 percent of molybdenum, or

0.10 percent of niobium (also called

columbium), or

0.15 percent of vanadium, or

0.15 percent of zirconium.

All products that meet the written

physical description, and in which the

chemistry quantities do not exceed any

one of the noted element levels listed

above, are within the scope of this

investigation unless specifically

excluded. The following products, by

way of example, are outside and/or

specifically excluded from the scope of

this investigation:

• SAE grades (formerly also called AISI

grades) above 2300;

• Ball bearing steels, as defined in the

HTSUS;

• Tool steels, as defined in the HTSUS;

• Silico-manganese steel, as defined in

the HTSUS;

• Silicon-electrical steels, as defined in

the HTSUS, that are grain-oriented;

• Silicon-electrical steels, as defined in

the HTSUS, that are not grainoriented and that have a silicon

level exceeding 2.25 percent;

• All products (proprietary or

otherwise) based on an alloy ASTM

specification (sample specifications:

ASTM A506, A507);

• Silicon-electrical steels, as defined in

the HTSUS, that are not grainoriented and that have a silicon

level less than 2.25 percent, and (a)

fully-processed, with a core loss of

less than 0.14 watts/pound per mil

(.001 inches), or (b) semi-processed,

with core loss of less than 0.085

watts/pound per mil (.001 inches);

• Certain shadow mask steel, which is

aluminum killed cold-rolled steel

coil that is open coil annealed, has

an ultra-flat, isotropic surface, and

which meets the following

characteristics:

Thickness: 0.001 to 0.010 inches

Width: 15 to 32 inches

CHEMICAL COMPOSITION:

Element ................................................................................................................................................................................................ C

Weight % ............................................................................................................................................................................................. < 0.002%

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

Thickness: ≤1.0 mm

Width: ≤ 152.4 mm

CHEMICAL COMPOSITION:

Element ....................................................................................... C Si Mn P S

Weight % ..................................................................................... 0.90–1.05 0.15–0.35 0.30–0.50 ≤ 0.03 ≤ 0.006

Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices 1105

MECHANICAL PROPERTIES

Tensile Strength ....................................................................................... ≥ 162 Kgf/mm 2

Hardness .................................................................................................. ≥ 475 Vickers hardness number

PHYSICAL PROPERTIES

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

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

NON-METALLIC INCLUSION

Area percentage

Sulfide Inclusion ................................................................................................................................................................................... ≤0.04%

Oxide Inclusion .................................................................................................................................................................................... ≤0.05%

Compressive Stress: 10 to 40 Kgf/mm2.

SURFACE ROUGHNESS

Thickness (mm) Roughness

(μm)

t ≤0.209 ................................................................................................................................................................................................ Rz ≤0.5

0.209 < t ≤0.310 .................................................................................................................................................................................. Rz ≤0.6

0.310 < t ≤0.440 .................................................................................................................................................................................. Rz ≤0.7

0.440 < t ≤0.560 .................................................................................................................................................................................. Rz ≤0.8

0.560 < t .............................................................................................................................................................................................. Rz ≤1.0

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

Thickness: ≤0.100 mm +/¥7%

Width: 100 to 600 mm

CHEMICAL COMPOSITION

Element ............................................................. C Mn P S Al Fe

Weight % ........................................................... ≤0.07 0.2–0.5 ≤0.05 ≤0.05 ≤0.07 Balance

MECHANICAL PROPERTIES

Hardness .................................................................................................. Full Hard (Hv 180 minimum)

Total Elongation ........................................................................................ <3%

Tensile Strength ....................................................................................... 600 to 850 N/mm2

PHYSICAL PROPERTIES

Surface Finish ........................................................................................... ≤0.3 micron

Camber (in 2.0 m) .................................................................................... <3.0 mm

Flatness (in 2.0 m) ................................................................................... ≤0.5 mm

Edge Burr ................................................................................................. <0.01 mm greater than thickness

Coil Set (in 1.0 m) .................................................................................... <75.0 mm

• Certain silicon steel, which meets the following characteristics:

Thickness: 0.024 inches +/¥.0015 inches

Width: 33 to 45.5 inches

CHEMICAL COMPOSITION

Element ............................................................. C Mn P S Si Al

Min. Weight % ................................................... 0.65

Max. Weight % .................................................. 0.004 0.4 0.09 0.009 0.4

MECHANICAL PROPERTIES

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

1106 Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices

PHYSICAL PROPERTIES

Finish ........................................................................................................ Smooth (30–60 microinches).

Gamma Crown (in 5 inches) .................................................................... 0.0005 inches, start measuring 1⁄4 inch from slit edge.

Flatness .................................................................................................... 20 I–UNIT max.

Coating ..................................................................................................... C3A–.08A max. (A2 coating acceptable).

Camber (in any 10 feet) ........................................................................... 1⁄16 inch.

Coil Size I.D .............................................................................................. 20 inches.

MAGNETIC PROPERTIES

Core Loss (1.5T/60 Hz) ............................................................................ 3.8 Watts/Pound max.

NAAS

Permeability (1.5T/60 Hz) ......................................................................... 1700 gauss/oersted typical.

NAAS ........................................................................................................ 1500 minimum.

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

Thickness: 0.025 to 0.245 mm

Width: 381–1000 mm

CHEMICAL COMPOSITION

Element ............................................................................................................................................ C N Al

Weight % .......................................................................................................................................... < 0.01 0.004 to

0.007

< 0.007

• Certain tin mill black plate, annealed and temper-rolled, continuously cast, which meets the following characteristics:

CHEMICAL COMPOSITION

Element ........................ C Mn P S Si Al As Cu B N

Min. Weight % .............. 0.02 0.20 0.03 0.003

Max. Weight % ............. 0.06 0.40 0.02 0.023

(Aiming

0.018

Max.)

0.03 0.08

(Aiming

0.05)

0.02 0.08 0.008 (Aiming 0.005)

Non-metallic Inclusions: Examination with the S.E.M. shall not reveal individual oxides >1 micron (0.000039 inches)

and inclusion groups or clusters shall not exceed 5 microns (0.000197 inches) in length.

Surface Treatment as follows:

The surface finish shall be free of defects (digs, scratches, pits, gouges, slivers, etc.) and suitable for nickel plating.

SURFACE FINISH

Roughness, RA Microinches (Micrometers)

Aim Min. Max.

Extra Bright ....................................................................................................................................... 5 (0.1) 0 (0) 7 (0.2)

• Certain full hard tin mill black plate, continuously cast, which meets the following characteristics:

CHEMICAL COMPOSITION

Element ........... C Mn P S Si Al As Cu B N

Min. Weight % 0.02 0.20 0.03 0.003

Max. Weight % 0.06 0.40 0.02 0.023 (Aiming

0.018 Max.)

0.03 0.08 (Aiming

0.05)

0.02 0.08 0.008 (Aiming

0.005)

Non-metallic Inclusions: Examination with the S.E.M. shall not reveal individual oxides > 1 micron (0.000039 inches)

and inclusion groups or clusters shall not exceed 5 microns (0.000197 inches) in length.

Surface Treatment as follows:

The surface finish shall be free of defects (digs, scratches, pits, gouges, slivers, etc.) and suitable for nickel plating.

Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices 1107

SURFACE FINISH

Roughness, RA Microinches (Micrometers)

Aim Min. Max.

Stone Finish ..................................................................................................................................... .16 (0.4) 8 (0.2) 24 (0.6)

• Certain ‘‘blued steel’’ coil (also known as ‘‘steamed blue steel’’ or ‘‘blue oxide’’) with a thickness and size of 0.38

mm × 940 mm × coil, and with a bright finish;

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

Thickness (nominal): ≤ 0.019 inches

Width: 35 to 60 inches

CHEMICAL COMPOSITION

Element ............................................................................................................................................ C O B

Max. Weight % ................................................................................................................................. 0.004

Min. Weight % .................................................................................................................................. 0.010 0.012

• Certain band saw steel, which meets the following characteristics:

Thickness: ≤ 1.31 mm

Width: ≤ 80 mm

CHEMICAL COMPOSITION

Element ...................... C Si Mn P S Cr Ni

Weight % .................... 1.2 to 1.3 0.15 to 0.35 0.20 to 0.35 ≤ 0.03 ≤ 0.007 0.3 to 0.5 ≤ 0.25

Other properties:

Carbide: fully spheroidized having >

80% of carbides, which are ≤ 0.003

mm and uniformly dispersed

Surface finish: bright finish free from

pits, scratches, rust, cracks, or

seams

Smooth edges

Edge camber (in each 300 mm of

length): ≤ 7 mm arc height

Cross bow (per inch of width): 0.015

mm max.

The merchandise subject to this

investigation is typically classified in

the HTSUS at subheadings:

7209.15.0000, 7209.16.0030,

7209.16.0060, 7209.16.0090,

7209.17.0030, 7209.17.0060,

7209.17.0090, 7209.18.1530,

7209.18.1560, 7209.18.2550,

7209.18.6000. 7209.25.0000,

7209.26.0000, 7209.27.0000,

7209.28.0000, 7209.90.0000,

7210.70.3000, 7210.90.9000,

7211.23.1500, 7211.23.2000,

7211.23.3000, 7211.23.4500,

7211.23.6030, 7211.23.6060,

7211.23.6085, 7211.29.2030,

7211.29.2090, 7211.29.4500,

7211.29.6030, 7211.29.6080,

7211.90.0000, 7212.40.1000,

7212.40.5000, 7212.50.0000,

7225.19.0000, 7225.50.6000,

7225.50.7000, 7225.50.8010,

7225.50.8085, 7225.99.0090,

7226.19.1000, 7226.19.9000,

7226.92.5000, 7226.92.7050,

7226.92.8050, and 7226.99.0000.

Although the HTSUS subheadings are

provided for convenience and U.S.

Customs Service (U.S. Customs)

purposes, the written description of the

merchandise under investigation is

dispositive.

The Department set aside a period for

all interested parties to raise issues

regarding product coverage. From July

through October 1999, the Department

received responses from a number of

parties including importers,

respondents, consumers, and

petitioners, aimed at clarifying the

scope of the investigation. See

Memorandum to Joseph A. Spetrini

(Scope Memorandum), November 1,

1999, for a list of all persons submitting

comments and a discussion of all scope

comments. There are several scope

exclusion requests for products which

are currently covered by the scope of

this investigation that are still under

consideration by the Department. These

items are considered to be within the

scope for this preliminary

determination; however, these requests

will be reconsidered for the final

determination. See Scope

Memorandum.

Selection of Respondents

Section 777A(c)(1) of the Act directs

the Department to calculate individual

dumping margins for each known

exporter and producer of the subject

merchandise. We determined that PT

Krakatau was the only known exporter

of subject merchandise and therefore

chose it as the only respondent from

Indonesia. This company accounted for

100 percent of all known exports of the

subject merchandise during the POI.

Product Comparisons

In accordance with section 771(16) of

the Act, all products produced by the

respondents covered by the description

in the Scope of Investigation section,

above, and sold in Indonesia during the

POI are considered to be foreign like

products for purposes of determining

appropriate product comparisons to

U.S. sales. We have relied on 14 criteria

to match U.S. sales of subject

merchandise to comparison-market

sales of the foreign like product:

hardening and tempering, paint, carbon

level, quality, yield strength, minimum

thickness, thickness tolerance, width,

edge finish, form, temper rolling,

leveling, annealing, and surface finish.

These characteristics have been

weighted by the Department where

appropriate. Where there were no sales

of identical merchandise in the home

market to compare to U.S. sales, we

compared U.S. sales to the next most

similar foreign like product on the basis

of the characteristics listed above.

Fair Value Comparisons

To determine whether sales of coldrolled steel products from Indonesia

were made in the United States at less

than fair value, we compared the export

1108 Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices

3 Investigations involving exports from countries

with highly inflationary economies require special

methodologies for comparing prices and calculating

CV and COP. The Department generally considers

that an inflation rate in excess of 25 percent

warrants application of a calculation methodology

that takes into account the effect of high inflation

on prices and costs. See Notice of Preliminary

Determination of Sales at Less Than Fair Value:

Stainless Steel Sheet and Strip in Coils from South

Korea, 64 FR 137, 139 (January 4, 1999). Based on

the Wholesale Price Index (WPI) obtained from the

International Monetary Fund (IMF), we determined

that Indonesia experienced inflation of

approximately 40 percent over the course of the

POI. PT Krakatau has argued that the Department

should not employ a high inflation analysis because

the high inflation that occurred during the POI was

isolated to the first six months of the period. We

will consider this issue further for the final

determination, and invite parties to comment.

4 In accordance with section 773(b)(2)(C)(i) of the

Act, we determined that sales made below the COP

were made in substantial quantities if the volume

of such sales represented 20 percent or more of the

volume of sales under consideration for the

determination of NV.

price (EP) to the normal value (NV), as

described in the Export Price and

Normal Value sections of this notice. In

accordance with section

777A(d)(1)(A)(i) of the Act, we

calculated weighted-average EPs for

comparison to weighted-average normal

values. Indonesia experienced high

inflation during the POI, as measured by

the Wholesale Price Index, published in

the June 1999 issue of International

Financial Statistics. Accordingly, to

avoid distortions caused by the effects

of high inflation on prices, consistent

with our practice in cases involving

high inflation, we calculated EPs and

NVs on a monthly-average basis, rather

than a POI average basis.3 See Notice of

Preliminary Determination of Sales at

Less Than Fair Value and Postponement

of Final Determination: Certain Pasta

from Turkey, 61 FR 1351, 1354 (January

19, 1996).

Export Price

In accordance with section 772 of the

Act, we calculated an EP for each sale.

Section 772(a) of the Act defines EP as

the price at which the subject

merchandise is first sold before the date

of importation by the exporter or

producer outside the United States to an

unaffiliated purchaser in the United

States or to an unaffiliated purchaser for

exportation to the United States.

Consistent with this definition, we have

found that PT Krakatau made only EP

sales during the POI.

We based EP on ex-factory and FOB

prices to unaffiliated customers in the

United States. In accordance with

section 772(c)(2) of the Act, we made

deductions from the starting price,

where appropriate, for movement

expenses including foreign brokerage

and inland freight from the factory to

the foreign port.

Normal Value

A. Selection of Comparison Markets

Section 773(a)(1) of the Act directs

that NV be based on the price at which

the foreign like product is sold in the

home market, provided that the

merchandise is sold in sufficient

quantities (or value, if quantity is

inappropriate) and that there is no

particular market situation that prevents

a proper comparison with the EP. The

statute contemplates that quantities (or

value) will normally be considered

insufficient if they are less than five

percent of the aggregate quantity (or

value) of sales of the subject

merchandise to the United States.

PT Krakatau has a viable home market

of cold-rolled steel products, and it

reported home market sales data for

purposes of the calculation of NV.

In deriving NV, we made adjustments

as detailed in the Calculation of Normal

Value Based on Home Market Prices

and Calculation of Normal Value Based

on Constructed Value, below.

B. Cost of Production Analysis

Based on allegations made by

petitioner in this case in a submission

dated September 29, 1999, and in

accordance with section 773(b)(2)(A)(i)

of the Act, we found reasonable grounds

to believe or suspect that sales of coldrolled steel products made in Indonesia

were made at prices below the COP. As

a result, the Department has conducted

an investigation to determine whether

PT Krakatau made sales in its home

market at prices below their respective

COPs during the POI within the

meaning of section 773(b) of the Act. We

conducted the COP analysis described

below.

1. Calculation of COP. In accordance

with section 773(b)(3) of the Act, we

calculated a weighted-average COP

based on the sum of the cost of materials

and fabrication for the foreign like

product, plus amounts for the home

market general and administrative

(G&A) expenses, selling expenses,

commissions, packing expenses, and

interest expenses. As noted above, we

determined that the Indonesian

economy experienced significant

inflation during the POI. Therefore, in

order to avoid the distorting effect of

inflation on our comparison of costs and

prices, we computed indexed monthly

costs based on the weighted average of

all monthly costs as indexed over the

POI. See, e.g., Certain Steel Concrete

Reinforcing Bar from Turkey, 64 FR

49510, 49153 (September 10, 1999).

We relied on the COP data submitted

by PT Krakatau in its cost questionnaire

response, except, as noted below, in

specific instances where the submitted

costs were not appropriately quantified

or valued: (a) we adjusted the reported

depreciation expense to account for the

effects of inflation, (b) we computed the

respondent’s G&A and financial expense

ratios on a constant currency basis using

monthly IMF WPI indices, and (c) we

recalculated the reported G&A and

financial expense ratios to reflect certain

expenses and offsets that had not been

completely accounted for by the

respondent.

2. Test of Home Market Sales Prices.

We compared the adjusted weightedaverage COP to the home market sales

of the foreign like product, as required

under section 773(b) of the Act, in order

to determine whether these sales had

been made at prices below the COP

within an extended period of time (i.e.,

a period of one year) in substantial

quantities 4 and whether such prices

were sufficient to permit the recovery of

all costs within a reasonable period of

time.

On a model-specific basis, we

compared the revised COP to the home

market prices, less any applicable

movement charges, discounts and

rebates.

3. Results of the COP Test. Pursuant

to section 773(b)(2)(C) of the Act, where

less than 20 percent of a respondent’s

sales of a given product were at prices

less than the COP, we did not disregard

any below-cost sales of that product

because we determined that the belowcost sales were not made in ‘‘substantial

quantities.’’ Where 20 percent or more

of a respondent’s sales of a given

product during the POI were at prices

less than the COP, we determined such

sales to have been made in ‘‘substantial

quantities’’ within an extended period

of time in accordance with section

773(b)(2)(B) of the Act. In such cases,

because we compared prices to

(indexed) POI average costs, we also

determined that such sales were not

made at prices that would permit

recovery of all costs within a reasonable

period of time, in accordance with

section 773(b)(2)(D) of the Act.

Therefore, we disregarded the belowcost sales.

We found that, for certain models of

cold-rolled steel products, more than 20

percent of the home market sales by PT

Krakatau were made within an extended

period of time at prices less than the

COP. Further, the prices did not provide

for the recovery of costs within a

Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices 1109

reasonable period of time. We therefore

disregarded these below-cost sales and

used the remaining sales as the basis for

determining NV, in accordance with

section 773(b)(1) of the Act. For those

U.S. sales of cold-rolled steel products

for which there were no comparable

home market sales in the ordinary

course of trade, we compared EPs to CV

in accordance with section 773(a)(4) of

the Act. See Calculation of Normal

Value Based on Constructed Value,

below.

C. Calculation of Normal Value Based

on Home Market Prices

We performed price-to-price

comparisons where there were sales of

comparable merchandise in the home

market that did not fail the cost test.

We calculated NV based on delivered

or FOB prices and made deductions

from the starting price, where

appropriate, for foreign brokerage and

handling fees, foreign inland freight

from the plant to the customer, and

insurance. In addition, we made

circumstance-of-sale (COS) adjustments

for direct expenses, where appropriate,

in accordance with section

773(a)(6)(C)(iii) of the Act. These

expenses included imputed credit

expenses and bank charges. In

accordance with sections 773(a)(6)(A)

and (B) of the Act, we deducted home

market packing costs and added U.S.

packing costs.

D. Calculation of Normal Value Based

on Constructed Value

Section 773(a)(4) of the Act provides

that, where NV cannot be based on

comparison-market sales, NV may be

based on CV. Accordingly, for those

models of cold-rolled steel products for

which we could not determine the NV

based on comparison-market sales,

either because there were no sales of a

comparable product or all sales of the

comparison products failed the COP

test, we based NV on constructed value.

Section 773(e)(1) of the Act provides

that constructed value shall be based on

the sum of the cost of materials and

fabrication for the imported

merchandise plus amounts for selling,

general, and administrative expenses

(SG&A), profit, and U.S. packing costs.

We calculated the cost of materials and

fabrication based on the methodology

described in the Calculation of COP

section of this notice, above. We based

SG&A and profit on the actual amounts

incurred and realized by the respondent

in connection with the production and

sale of the foreign like product in the

ordinary course of trade for

consumption in the comparison market,

in accordance with section 773(e)(2)(A)

of the Act.

In addition, we used U.S. packing

costs as described in the Export Price

section of this notice, above.

We made adjustments to CV for

differences in COS in accordance with

section 773(a)(8) of the Act and 19 CFR

351.410. These involved the deduction

of direct selling expenses incurred on

home market sales from, and the

addition of U.S. direct selling expenses

to, constructed value.

Level of Trade

In accordance with section

773(a)(1)(B) of the Act, to the extent

practicable, we determine NV based on

sales in the comparison market at the

same level of trade (LOT) as the EP

transaction. The NV LOT is that of the

starting-price sales in the comparison

market or, when NV is based on CV, that

of the sales from which we derive SG&A

expenses and profit. The U.S. LOT for

EP Sales is also the level of the startingprice sale, which is usually from

exporter to importer.

To determine whether NV sales are at

a different LOT than EP, we examine

stages in the marketing process and

selling functions along the chain of

distribution between the producer and

the unaffiliated customer. If the

comparison-market sales are at a

different LOT and the difference affects

price comparability, as manifested in a

pattern of consistent price differences

between the sales on which NV is based

and comparison-market sales at the LOT

of the export transaction, we make an

LOT adjustment under section

773(a)(7)(A) of the Act. See Notice of

Final Determination of Sales at Less

Than Fair Value: Certain Cut-to-Length

Carbon Steel Plate from South Africa,

62 FR 61731 (November 19, 1997).

In implementing these principles in

this investigation, we obtained

information from PT Krakatau about the

marketing stages involved in the

reported U.S. and home market sales,

including a description of the selling

activities performed by the respondent

for each channel of distribution. In

identifying LOTs for EP and home

market sales, we considered the selling

functions reflected in the starting price

before any adjustments.

In the home market, PT Krakatau sells

to end-users and local trading

companies. The respondent provides

extensive selling functions to all home

market customers, irrespective of the

channel of distribution. These include

technical assistance and customer

support. Therefore, we find that all sales

in the home market were made at a

single LOT. In the U.S. market, PT

Krakatau sells to trading companies

only. In contrast to home market sales,

the respondent provides no technical

assistance, customer support, or any

other selling function for U.S. sales.

Therefore, we find that all sales in the

U.S. market were made at a single LOT,

which is different from the home market

LOT. Since the record contains no

information that would allow us to

determine the extent, if any, to which

this difference in LOTs affects price

comparability, we have not made an

LOT adjustment for this preliminary

determination.

Currency Conversions

We made currency conversions into

U.S. dollars in accordance with section

773A of the Act based on exchange rates

in effect on the dates of the U.S. sales.

The Department’s preferred source for

exchange rates is the Federal Reserve

Bank. However, since the Federal

Reserve Bank does not publish exchange

rates for the Indonesian rupiah, we have

relied on exchange rates obtained from

the Dow Jones Service, as published in

the Wall Street Journal.

Verification

In accordance with section 782(i) of

the Act, we intend to verify all

information relied upon in making our

final determinations.

Suspension of Liquidation

In accordance with section 733(d) of

the Act, we are directing the Customs

Service to suspend liquidation of all

entries of cold-rolled steel products

from Indonesia, that are entered, or

withdrawn from warehouse, for

consumption on or after the date of

publication of this notice in the Federal

Register. We are also instructing the

Customs Service to require a cash

deposit or the posting of a bond equal

to the weighted-average amount by

which the NV exceeds the EP or CEP, as

indicated in the chart below. These

instructions suspending liquidation will

remain in effect until further notice.

The weighted-average dumping

margin is provided below:

Manufacturer/exporter Margin

(percent)

PT Krakatau .............................. 49.28

All Others .................................. 49.28

ITC Notification

In accordance with section 733(f) of

the Act, we have notified the ITC of our

determination. If our final antidumping

determination is affirmative, the ITC

will determine whether the imports

covered by this determination are

1110 Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices

1The petitioners in this investigation are

Bethlehem Steel Corporation, Gulf States Steel, the

Independent Steelworkers Union, Ispat Inland

Steel, LTV Steel Company Inc., National Steel

Corporation (not a petitioner in the Japan case),

Steel Dynamics, U.S. Steel Group (a unit of USX

Corporation), Weirton Steel Corporation, and

United Steelworkers of America.

2Both versions of the questionnaire were issued

because VSZ had requested that the NME status of

Slovakia be revoked.

materially injuring, or threaten material

injury to, the U.S. industry. The

deadline for that ITC determination

would be the later of 120 days after the

date of this preliminary determination

or 45 days after the date of our final

determination.

Public Comment

Case briefs for this investigation must

be submitted no later than one week

after the issuance of the verification

reports. Rebuttal briefs must be filed

within five days after the deadline for

submission of case briefs. A list of

authorities used, a table of contents, and

an executive summary of issues should

accompany any briefs submitted to the

Department. Executive summaries

should be limited to five pages total,

including footnotes.

Section 774 of the Act provides that

the Department will hold a hearing to

afford interested parties an opportunity

to comment on arguments raised in case

or rebuttal briefs, provided that such a

hearing is requested by any interested

party. If a request for a hearing is made

in an investigation, the hearing will

tentatively be held two days after the

deadline for submission of the rebuttal

briefs, at the U.S. Department of

Commerce, 14th Street and Constitution

Avenue, NW, Washington, D.C. 20230.

In the event that the Department

receives requests for hearings from

parties to several cold-rolled cases, the

Department may schedule a single

hearing to encompass all those cases.

Parties should confirm by telephone the

time, date, and place of the hearing 48

hours before the scheduled time.

Interested parties who wish to request

a hearing, or to participate if one is

requested, must submit a written

request within 30 days of the

publication of this notice. Requests

should specify the number of

participants and provide a list of the

issues to be discussed. Oral

presentations will be limited to issues

raised in the briefs.

If this investigation proceeds

normally, we will make our final

determination no later than 135 days

after the date of publication of this

notice in the Federal Register.

This determination is published

pursuant to sections 733(f) and 777(i)(1)

of the Act.

Dated: December 28, 1999.

Holly A. Kuga,

Acting Assistant Secretary for Import

Administration.

[FR Doc. 00–298 Filed 1–6–00; 8:45 am]

BILLING CODE 3510–DS–P

DEPARTMENT OF COMMERCE

International Trade Administration

[A–859–801]

Notice of Preliminary Determination of

Sales at Less Than Fair Value and

Postponement of Final Determination:

Certain Cold-Rolled Flat-Rolled

Carbon-Quality Steel Products From

Slovakia

AGENCY: Import Administration,

International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: January 7, 2000.

FOR FURTHER INFORMATION CONTACT:

Doug Campau or Abdelali Elouaradia, at

(202) 482–1784 or (202) 482–0498,

respectively; Import Administration,

Room 1870, International Trade

Administration, U.S. Department of

Commerce, 14th Street and Constitution

Avenue, NW, Washington, DC 20230.

The Applicable Statute and Regulations

Unless otherwise indicated, all

citations to the statute are references to

the provisions effective January 1, 1995,

the effective date of the amendments

made to the Tariff Act of 1930 (the Act)

by the Uruguay Round Agreements Act

(URAA). In addition, unless otherwise

indicated, all citations to the

Department of Commerce’s (the

Department’s) regulations refer to the

regulations codified at 19 CFR part 351

(April 1999).

Preliminary Determination

We preliminarily determine that

certain cold-rolled flat-rolled carbonquality steel products (cold-rolled steel

products) from Slovakia are being sold,

or are likely to be sold, in the United

States at less than fair value (LTFV), as

provided in section 733 of the Act. The

estimated margins of sales at LTFV are

shown in the Suspension of Liquidation

section of this notice.

Case History

This investigation was initiated on

June 21, 1999.1 See Initiation of

Antidumping Duty Investigations:

Certain Cold-Rolled Flat-Rolled CarbonQuality Steel Products from Argentina,

Brazil, the People’s Republic of China,

Indonesia, Japan, the Russian

Federation, Slovakia, South Africa,

Taiwan, Thailand, Turkey, and

Venezuela, 64 FR 34194 (June 25, 1999)

(Initiation Notice). Since the initiation

of the investigation, the following

events have occurred:

On June 22 and July 29, 1999, the

Department issued section A nonmarket economy (NME) and market

economy 2 antidumping questionnaires,

respectively, to VSZ, a.s. (VSZ), the only

known exporter of subject merchandise

in Slovakia. As of the date of initiation

of this investigation, Slovakia was still

considered an NME country. On June

25, 1999, the Department received a

letter from VSZ, requesting, on behalf of

the Government of Slovakia, that the

Department revoke the NME status of

Slovakia under section 771(18)(A) of the

Act. On July 2, 1999, the Department

initiated a formal inquiry into Slovakia’s

NME status. While the Department

conducted this inquiry, VSZ voluntarily

submitted responses to both the

Department’s market economy

questionnaire and the Department’s

NME questionnaire.

On July 16, 1999, the United States

International Trade Commission (ITC)

preliminarily determined that there was

a reasonable indication that imports of

the products under investigation were

materially injuring the United States

industry. See Certain Cold-Rolled Steel

Products From Argentina, Brazil, China,

Indonesia, Japan, Russia, Slovakia,

South Africa, Taiwan, Thailand,

Turkey, and Venezuela: Determinations,

64 FR 41458 (July 30, 1999).

On October 13, 1999, the Department

revoked Slovakia’s NME status. See

Memorandum to Robert S. LaRussa

(October 13, 1999). Thereafter, this

investigation continued under the

Department’s market economy

procedures. See Revocation of

Slovakia’s Non Market Economy Status,

below.

On October 19, 1999, the Department

postponed the preliminary

determination in this case for 30 days in

accordance with section 733(c) of the

Act and 19 CFR 351.205(b)(2). See

Notice of Postponement of Preliminary

Antidumping Duty Determinations:

Certain Cold-Rolled Flat-Rolled CarbonQuality Steel Products from Slovakia, 64

FR 57842 (October 27, 1999). On

December 6, 1999, the Department

further extended the deadline for the

preliminary determination to December

28, 1999. See Notice of Postponement of

Preliminary Antidumping Duty

Determinations: Certain Cold-Rolled

Flat-Rolled Carbon-Quality Steel