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

Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices 1111

Products from Slovakia, 64 FR 69491

(December 13, 1999).

On November 9, 1999, the petitioners

requested that the Department initiate a

below-cost sales investigation. After

examining the petitioner’s request, on

November 10, 1999, the Department

initiated a below-cost sales

investigation. See Memorandum from

Gary Taverman to Holly Kuga

(November 10, 1999).

We issued supplemental

questionnaires where appropriate.

Responses to those questionnaires were

timely filed, and we have incorporated

the information provided in those

responses into this preliminary

determination.

Postponement of Final Determination

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

exports of the subject merchandise, or 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 28, 1999, VSZ requested

that, in the event of an affirmative

preliminary determination in this

investigation, the Department postpone

its final determination until not later

than 135 days after the date of the

publication of an affirmative

preliminary determination in the

Federal Register. VSZ also included a

request to extend the provisional

measures to not more than six months.

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%

1112 Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices

• 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

MECHANICAL PROPERTIES

Tensile Strength ....................................................................................... ≥162 Kgf/mm2

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/mmT22.

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

Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices 1113

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)

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) NAAS ................................................................. 3.8 Watts/Pound max.

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

1114 Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices

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

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

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

mm x 940 mm x 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 0 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 United

States 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), dated 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.

Product Comparisons

In accordance with section 771(16) of

the Act, all products produced by the

respondent covered by the description

in the Scope of Investigation section,

above, and sold in Slovakia 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 as listed above.

Revocation of Slovakia’s Non-Market

Economy Status

In determining whether to revoke

NME-country status under section

771(18)(A) of the Act, the Department

must take into account the following

factors under section 771(18)(B): (1) The

extent to which the currency of the

foreign country is convertible into the

currency of other countries; (2) the

extent to which wage rates in the foreign

country are determined by free

Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices 1115

3 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.

bargaining between labor and

management; (3) the extent to which

joint ventures or other investments by

firms of other foreign countries are

permitted in the foreign country; (4) the

extent of government ownership or

control of the means of production; (5)

the extent of government control over

the allocation of resources and over the

price and output decisions of

enterprises; and (6) such other factors as

the administrating authority considers

appropriate.

Since its emergence as an

independent, democratic state, Slovakia

has made significant progress in its

transformation into a market economy

country. The Slovak currency is now

fully convertible. Wages in Slovakia are

largely determined by free bargaining

between labor and management. Trade

has been liberalized and tariffs reduced,

and the Slovak government is actively

promoting foreign investment and

business ventures. Industry, agriculture

and services have all been privatized,

and the power to make decisions related

to the allocation of resources, and over

pricing and output decisions, now rests

with the private sector. Based on the

preponderance of evidence related to

economic reforms in Slovakia, analyzed

as required under section 771(18)(B) of

the Act, the Department revoked

Slovakia’s NME country status, effective

January 1, 1998. See Memorandum to

Robert S. LaRussa (October 13, 1999).

Fair Value Comparisons

To determine whether sales of coldrolled steel products from Slovakia were

made in the United States at LTFV, we

compared the export price (EP) to the

normal value (NV), as described in the

Export Price and Normal Value sections

of this notice, below. In accordance with

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

calculated weighted-average EPs for

comparison to weighted-average NVs.

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 or offered for

sale, before the date of importation by

the exporter or producer outside of 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 VSZ

made only EP sales during the POI.

We calculated EP based on cost and

freight (C&R) packed prices charged to

the first unaffiliated customer 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 inland

freight and inland insurance for

shipment from the mill to the port of

export, foreign warehousing expenses,

and ocean freight. We added interest

revenue to the starting price for sales

that had been paid late and for which

the respondent collected actual interest

revenue. See Preliminary Calculation

Memorandum (December 28, 1999).

We note that, according to VSZ’s

reported data, certain of VSZ’s U.S.

sales were unpaid as of the date of this

preliminary determination. Petitioners

asserted that all of VSZ’s unpaid sales

should be treated as bad debt and,

therefore, that the Department should

treat such unpaid sales amounts as a

direct selling expense. VSZ claims that

it is still negotiating the payment of all

reported sales, and because, as specified

in its financial statement, the sales have

not been written off, it would be

inappropriate to treat the amount of the

sales as direct selling expenses.

We have preliminarily accepted VSZ’s

claim that it has not written off the

amounts due on any of the U.S. sales.

We have, however, recalculated the

imputed credit expenses for U.S. sales

for which payment had not yet been

received by setting the date of payment

equal to the date of signature of this

preliminary determination. We intend

to examine this issue closely at

verification.

Normal Value

A. Selection of Comparison Market

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.

VSZ had a viable home market for

cold-rolled steel products, and reported

home market sales data for purposes of

the calculation of NV.

In deriving NV, we made certain

adjustments as detailed in the

Calculation of Normal Value Based on

Home-Market Prices and Calculation of

Normal Value Based on Constructed

Value sections of this notice, below.

B. Cost of Production Analysis

As noted above, on November 8, 1999,

petitioners filed a below-cost sales

allegation against VSZ. After analyzing

the allegation, in accordance with

section 773(b)(2)(A)(i) of the Act, we

found reasonable grounds to believe or

suspect that VSZ’s sales of cold-rolled

steel products in Slovakia were made at

prices below the COP. See

Memorandum from Gary Taverman to

Holly Kuga (November 10, 1999). As a

result, the Department conducted an

investigation to determine whether VSZ

made home market sales during the POI

at prices below their respective COPs,

within the meaning of section 773(b) of

the Act.

1. Calculation of COP

In accordance with section 773(b)(3)

of the Act, we calculated a weightedaverage COP based on the sum of VSZ’s

costs of materials and fabrication for the

foreign like product, plus amounts for

general and administrative expenses

(G&A), selling expenses, commissions,

packing expenses and interest expenses.

We relied on the COP data submitted by

VSZ in its cost questionnaire response.

2. Test of Home-Market Sales Prices

We compared the weighted-average

COP for VSZ to 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 3 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 below-cost 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

1116 Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices

an extended period of time in

accordance with section 773(b)(2)(B) of

the Act. In such cases, because we

compared prices to 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. 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 ex-factory

prices and made deductions from the

starting price, where appropriate, for

inland freight. 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

included imputed credit expenses,

warranty expenses, and other direct

selling expenses. We recalculated the

imputed credit expenses for U.S. sales

for which payment had not yet been

received by setting the date of payment

equal to the date of signature of this

preliminary determination. See

Preliminary Calculation Memorandum

(December 28, 1999). We also made

adjustments to the starting price for

discounts and rebates.

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 CV.

Section 773(e) of the Act provides that

CV shall be based on the sum of the

respondent’s cost of materials,

fabrication, selling, general and

administrative (SG&A) expenses and

profit. In accordance with section

773(e)(2)(A) of the Act, we based SG&A

expenses and profit on the amounts

incurred and realized in connection

with the production and sale of the

foreign like product in the ordinary

course of trade, for consumption in the

foreign country. In addition, we relied

on 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, CV.

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 normal-value 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 starting-price 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 a

level-of-trade 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 VSZ about the

marketing stages involved in the

reported United States and home market

sales, including a description of the

selling activities performed by VSZ 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.

VSZ claimed to have two LOTs in the

NV market and one LOT in the U.S.

market. We examined VSZ’s

distribution system, including selling

functions, classes of customers, and

selling expenses. We found that the

selling functions—which included

warranty, freight, processing of sales

documents, and technical advice—were

sufficiently similar in the United States

and home markets to establish a single,

same level of trade in both markets. It

was thus unnecessary, for this

preliminary determination, to make any

level-of-trade adjustment for

comparison of EP and normal value.

Currency Conversions

We made currency conversions into

United States dollars in accordance with

section 773A(a) of the Act based on

exchange rates in effect on the dates of

the United States sales, as certified by

the Dow Jones Business Information

Services.

Verification

In accordance with section 782(i) of

the Act, we intend to verify all

information relied upon in making our

final determination.

Suspension of Liquidation

In accordance with section 733(d) of

the Act, we are directing Customs to

suspend liquidation of all entries of

cold-rolled steel products from

Slovakia, 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 Customs to require a

cash deposit or the posting of a bond

equal to the weighted-average amount

by which the NV exceeds the EP, as

indicated in the chart below. These

instructions suspending liquidation will

remain in effect until further notice.

The weighted-average dumping

margins are provided below.

Manufacturer/exporter Margin

(percent)

VSZ ....................................... 32.83

All others ............................... 32.83

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 United States

industry. The deadline for that ITC

determination would be the later of 120

days after the date of these preliminary

Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices 1117

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 US 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 and

published 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. 00–299 Filed 1–6–00; 8:45 am]

BILLING CODE 3510–DS–P

DEPARTMENT OF COMMERCE

International Trade Administration

[A–570–854]

Preliminary Determination of Sales at

Less Than Fair Value and

Postponement of Final Determination:

Certain Cold-Rolled Flat-Rolled Carbon

Quality Steel Products From The

People’s Republic of China

AGENCY: Import Administration,

International Trade Administration,

Department of Commerce.

ACTION: Notice of preliminary

determination of sales at less than fair

value.

EFFECTIVE DATE: January 7, 2000.

FOR FURTHER INFORMATION CONTACT:

Gideon Katz or Karla Whalen, Import

Administration, International Trade

Administration, U.S. Department of

Commerce, 14th Street and Constitution

Avenue NW, Washington, DC 20230;

telephone: (202) 482–1102 or (202) 482–

1391, respectively.

The Applicable Statue

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’s regulations are to the

regulations at 19 CFR part 351 (1998).

Preliminary Determination

We determine preliminarily that

certain cold-rolled flat-rolled carbon

quality steel products (‘‘cold-rolled

steel’’) from the People’s Republic of

China (‘‘PRC’’) 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 Act. The estimated

margins are shown in the ‘‘Suspension

of Liquidation’’ section of this notice.

Case History

Since the initiation of this

investigation (64 FR 34194, June 25,

1999) (‘‘Notice of Initiation’’), the

following events have occurred:

On June 22, 1999, we sent a Section

A questionnaire to the Chinese Ministry

of Foreign Trade and Economic

Cooperation (‘‘MOFTEC’’), the Embassy

of the People’s Republic of China in

Washington, D.C. (‘‘Embassy’’) with

instructions to forward the

questionnaire to all producers/exporters

of the subject merchandise explaining

that these companies must respond by

the due date. We also sent a copy of the

questionnaire to Baoshan Iron and Steel

Corporation, which was specifically

named in the petition. We received no

response from MOFTEC nor the

Embassy, but we received a response

from Shanghai Baosteel Group

Corporation (‘‘Baosteel’’).

On July 23, 1999, the United States

International Trade Commission (‘‘ITC’’)

issued an affirmative preliminary injury

determination in the case (See ITC

Investigations Nos. 701–TA–393–396

and 731TA–829–840). The ITC found

that there is a reasonable indication that

an industry in the United States is

threatened with material injury by

reason of imports from the PRC of coldrolled steel. On July 9, 1999, we issued

an antidumping questionnaire, Sections

C–E to MOFTEC and to the Embassy

with instructions to forward the

questionnaire to all producers/exporters

of the subject merchandise and that

these companies must respond by the

due date. We also sent a courtesy copy

of the same questionnaire to Baosteel.

The questionnaire is divided into four

sections. Section A requests general

information concerning a company’s

corporate structure and business

practices, the merchandise under

investigation that it sells, and the sales

of the merchandise in all of its markets.

Section C requests home market sales

listings. Section D requests information

on the factors of production of the

subject merchandise. Section E requests

information on further manufacturing.

On July 1, 6, and 20, 1999, Baosteel

submitted its section A response.

Baosteel, a producer of subject

merchandise, also submitted Section A

on behalf of two wholly-owned

subsidiaries, Baosteel Group

International Trade, Inc. (‘‘Baosteel

ITC’’) and Baosteel America, Inc.

(‘‘BaoMei’’). On August 30, 1999,

Baosteel submitted its response to

sections C, D and E of the questionnaire.

On August 24, 1999, we issued a

Section A supplemental questionnaire

to Baosteel. On September 10, 1999, we

issued Sections C, D, and E

supplemental questionnaire to Baosteel.

Baosteel submitted its Section A

supplemental questionnaire response on

September 14, 1999. Baosteel submitted

its Sections C, D, and E, supplemental

questionnaire response on October 4,

1999.

On September 3, 1999, we requested

publicly-available information for

valuing the factors of production and for

surrogate country selection. Petitioners

had already provided comments on

surrogate values to be used in this

investigation in their petition of June 2,

1999. Respondents provided their