Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices 1095

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.

Procurement List: Filter, Air

Conditioning, 4130–00–951–1208.

Beverly L. Milkman,

Executive Director.

[FR Doc. 00–369 Filed 1–6–00; 8:45 am]

BILLING CODE 6353–01–P

POSTAL SERVICE BOARD OF

GOVERNORS

Sunshine Act Meeting

Governors Vote To Close Meeting

By telephone vote on December 27,

1999, a majority of the Governors

contacted and voting, the Governors

voted to close to public observation a

meeting held in Washington, D.C., via

teleconference. The Governors

determined that prior public notice was

not possible.

ITEM CONSIDERED:

Succession Planning for the Office of

the Governors.

GENERAL COUNSEL CERTIFICATION:

The General Counsel of the United

States Postal Service has certified that

the meeting was properly closed under

the Government in the Sunshine Act.

CONTACT PERSON FOR MORE INFORMATION:

Requests for information about the

meeting should be addressed to the

Secretary of the Board, Thomas J.

Koerber, at (202) 268–4800.

Thomas J. Koerber,

Secretary.

[FR Doc. 00–481 Filed 1–5–00; 12:51 pm]

BILLING CODE 7710–12–M

DEPARTMENT OF COMMERCE

International Trade Administration

[A–583–834]

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

Taiwan

AGENCY: Import Administration,

International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: January 7, 2000.

FOR FURTHER INFORMATION CONTACT:

Abdelali Elouaradia or Keir Whitson at

(202) 482–0498 and (202) 482–1777,

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 Determination

We preliminarily determine that

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

products) from Taiwan 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, 1999, the Department

issued Section A antidumping

questionnaires to all known exporters of

subject merchandise in Taiwan,

including all of those named in the

original petition. 2

On July 9, 1999, the Department

selected China Steel Corporation (CSC)

as a mandatory respondent in this

investigation and issued Sections B, C,

and D of the antidumping questionnaire

to CSC. See Respondent Selection

Memo, July 9, 1999. In addition, on July

19, 1999, we received a request from

Taiwan Tokkin Co., Ltd. (Taiwan

Tokkin) that it be included as a

voluntary respondent in this

investigation. Subsequently, on August

6, 1999, we accepted Taiwan Tokkin as

a voluntary respondent. However, we

did not issue the questionnaire to

Taiwan Tokkin because on July 22,

1999, the company informed us that it

had already obtained copies of each

section.

Responses to various sections of the

Department’s questionnaire were

received from Taiwan Tokkin and CSC

between July and September 1999. We

issued supplemental questionnaires

where appropriate.

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).

In their comments on Taiwan

Tokkin’s questionnaire responses,

petitioners raised the issue of whether

the country of origin of Taiwan Tokkin’s

exports to the United States was

actually Japan. Subsequently, Taiwan

Tokkin submitted comments on this

issue on September 27, 1999. Additional

comments were submitted by

petitioners and Taiwan Tokkin on

October 15, 1999, and, October 21, 1999,

respectively. See Taiwan Tokkin—

Country of Origin, below.

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

1096 Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices

postponement is made by exporters who

account for a significant proportion of

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 25, 1999, CSC 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. CSC 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 each

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 nonrectangular cross-section where such

cross-section is achieved subsequent to

the rolling process (i.e., products which

have been ‘‘worked after rolling’’)—for

example, products which have been

beveled or rounded at the edges.

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 1097

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/mm 2

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/mm 2

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)

1098 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) 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.

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 1099

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 × 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 % .................................................................................................................................. 0.01 00.012

• 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.

Facts Available

In its response to Section B of the

Department’s antidumping

questionnaire, CSC reported a code

designated ‘‘X’’ for certain home market

sales observations in response to

requested categories for yield strength,

standard thicknesses, and standard

widths. The Department issued a

supplemental questionnaire requesting,

in part, that CSC re-code these

observations in conformity with the

categories provided in the original

questionnaire. CSC replied that it did

not have the necessary information in

its records to comply with the

Department’s questionnaire categories

and that it had used the ‘‘X’’ code to

designate those areas where it did not

have the necessary information. In order

to avoid introducing any distortions

from product misclassification in the

fair value comparison of CSC’s home

market sales to its U.S. sales, we have

determined that we cannot use the

product characteristics with a code

designated as ‘‘X’’ for certain home

market sales and, therefore, the use of

facts otherwise available is necessary in

this situation, pursuant to section 776(a)

of the Act.

Section 776(a) of the Act provides that

‘‘if an interested party or any other

person—(A) withholds information that

has been requested by the administering

authority; (B) fails to provide such

information by the deadlines for the

submission of the information or in the

form and manner requested, subject to

subsections (c)(1) and (e) of section 782;

(C) significantly impedes a proceeding

under this title; or (D) provides such

information but the information cannot

be verified as provided in section 782(i),

the administering authority and the

Commission shall, subject to section

782(d), use the facts otherwise available

1100 Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices

in reaching the applicable

determination under this title.’’ The

statute requires that certain conditions

be met before the Department may resort

to the facts otherwise available. Where

the Department determines that a

response to a request for information

does not comply with the request,

section 782(d) of the Act provides that

the Department will so inform the party

submitting the response and will, to the

extent practicable, provide that party

the opportunity to remedy or explain

the deficiency. If the party fails to

remedy the deficiency within the

applicable time limits, the Department

may, subject to section 782(e), disregard

all or part of the original and subsequent

responses, as appropriate. Briefly,

section 782(e) provides that the

Department ‘‘shall not decline to

consider information that is submitted

by an interested party and is necessary

to the determination but does not meet

all the applicable requirements

established by the administering

authority’’ if the information is timely,

can be verified, is not so incomplete that

it cannot be used, and if the interested

party acted to the best of its ability in

providing the information. Where all of

these conditions are met, and the

Department can use the information

without undue difficulties, the statute

requires it to do so.

As noted above, we determined that

we cannot rely on home market sales for

which certain product characteristics

were designated as ‘‘X.’’ Therefore, in

accordance with section 776(a) of the

Act, we have determined that use of

facts available is appropriate. Since it is

not possible to determine the extent to

which these sales might have served as

comparison merchandise for U.S. sales,

we have assigned to any U.S. sales that

did not have identical matches the

weighted-average margin calculated for

all identical matches.

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. However, section

777A(c)(2) of the Act gives the

Department discretion, when faced with

a large number of exporters/producers,

to limit its examination to a reasonable

number of such companies if it is not

practicable to examine all companies.

Where it is not practicable to examine

all known producers/exporters of

subject merchandise, this provision

permits the Department to investigate

either: (1) A sample of exporters,

producers, or types of products that is

statistically valid based on the

information available at the time of

selection, or (2) exporters and producers

accounting for the largest volume of the

subject merchandise that can be

reasonably examined.

After consideration of the

complexities expected to arise in this

proceeding and the resources available

to the Department, we determined that

it was not practicable in this

investigation to examine a large number

of producers/exporters of subject

merchandise. Instead, we found that,

given our resources, we would be able

to investigate the producer/exporter

with the greatest export volume, as

identified above. Because CSC

accounted for more than 50 percent of

all known exports of the subject

merchandise from Taiwan during the

POI, we selected CSC as the sole

respondent. Additionally, on August 6,

1999, we granted a request from Taiwan

Tokkin that it be included as a

voluntary respondent in this

investigation.

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 Taiwan 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.

Fair Value Comparisons

To determine whether sales of coldrolled steel products from Taiwan were

made in the United States at less than

fair value, we compared the export 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 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 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 CSC and Taiwan Tokkin

made only EP sales during the POI.

For CSC and Taiwan Tokkin, we

calculated EP based on packed prices

charged to the first unaffiliated

customer in the United States. We based

EP on ex-factory and FOB prices to

unaffiliated customers in the United

States. We made deductions from the

starting price, where appropriate, for

movement expenses including foreign

brokerage, loading and inland freight

from the factory to the foreign port.

Finally, for Taiwan Tokkin, we

increased the starting price by the

amount of duty drawback.

Taiwan Tokkin based its duty

drawback calculation on a ratio of

kilograms of raw material required to

produce one kilogram of finished coldrolled strip. We note that the ratio

permitted under the drawback scheme

appears to be at odds with Taiwan

Tokkin’s own production information.

Accordingly, we will examine this issue

closely at verification to determine

whether we should continue to include

the reported amount for duty drawback

in our calculation of EP for the final

determination.

Taiwan Tokkin—Country of Origin

Taiwan Tokkin’s reported U.S. sales

were for merchandise that was first

imported into Taiwan from Japan as

cold-rolled coil, processed by Taiwan

Tokkin, and then exported to the United

States as cold-rolled strip. As previously

mentioned, petitioners raised the issue

of whether the country of origin of

Taiwan Tokkin’s exports to the United

States is actually Japan. In their

comments on this issue, petitioners

argued that Taiwan Tokkin’s production

process does not substantially transform

the merchandise and, therefore, it

retains Japanese country of origin. In

support of this contention, they put

forth the following arguments: (1)

Taiwan Tokkin’s imported and exported

material are both cold-rolled products

and stay within the same class or kind

of merchandise; (2) under U.S. Customs

regulations 19 CFR 120.20 dealing with

the country of origin, a change in

HTSUS heading from 7209 to 7211, as

Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices 1101

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.

occurs in this case, does not change the

country of origin; and (3) Taiwan

Tokkin’s production process does not

make any dramatic changes to the

product, and the substantial

transformation of the merchandise

occurs in Japan where it was processed

from slabs into hot bands and then coldrolled into coils.

Taiwan Tokkin contends that the

imported merchandise is substantially

transformed in Taiwan and, therefore,

acquires Taiwanese country of origin.

Taiwan Tokkin argues that (1) Taiwan

Tokkin’s production process of slitting

and repeated cold-rolling and annealing

significantly changes the physical

characteristics of the imported material

and imparts a spring like-quality to the

product, with higher tensile strength

and flexibility; (2) while the raw

material has no other use than for

conversion into cold-rolled strip, the

finished product is used in the

production of end-products such as tape

measures, springs and parts of

electronic machinery; and (3) the value

added to the merchandise through its

production process is significant.

We have preliminarily accepted

Taiwan Tokkin’s claim that its

merchandise sold to the United States is

of Taiwanese origin. However, we

intend to continue our analysis of this

issue based on our findings at

verification and comments submitted by

the interested parties. We invite

interested parties in this proceeding to

submit comments or information

concerning this issue, including

arguments for the appropriate treatment

of Taiwan Tokkin’s sales if the

Department determines that the country

of origin of the merchandise in question

is Japan.

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.

CSC and Taiwan Tokkin had viable

home markets of cold-rolled steel

products, and they reported home

market sales data for purposes of the

calculation of NV.

In deriving NV, we made adjustments

as detailed in 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 contained in the

petition and in accordance with section

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

reasonable grounds to believe or suspect

that sales of cold-rolled steel products

made in Taiwan were made at prices

below the COP. See Initiation Notice, 64

FR 34194 (June 25, 1999). As a result,

the Department conducted an

investigation to determine whether CSC

and Taiwan Tokkin made home market

sales during the POI at prices below

their respective COPs, 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 weightedaverage COP based on the sum of CSC’s

and Taiwan Tokkin’s respective 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

CSC and Taiwan Tokkin in their

respective supplemental cost

questionnaire responses, except as

noted below, where the submitted costs

were not appropriately quantified or

valued.

CSC

We adjusted CSC’s reported scarp

recovery values to account for the

overstatement of scrap credits resulting

from the inclusion of downgraded

products. Secondly, we adjusted CSC’s

G&A and financial expense rations. For

the G&A expense ratio, we included

certain revenues and expenses that had

been excluded from the reported

amount. In addition, we adjusted the

cost of goods sold figure to be on the

same basis as the reported cost of

manufacturing. For the financial

expense ratio, we adjusted the cost of

goods sold figure to be on the same basis

as the reported cost of manufacturing.

Taiwan Tokkin. Taiwan Tokkin

adjusted its reported conversion costs

by excluding costs associated with

packing, freight, royalties, and including

costs associated with direct labor.

Tokkin calculated this adjustment as a

percentage of conversion costs, but

applied the adjustment to the total cost

of manufacturing. We revised Taiwan

Tokkin’s cost adjustment percentage to

one based on total cost of

manufacturing, so that the adjustment

percentage matches the basis to which

it is applied.

Taiwan Tokkin did not submit revised

conversion costs for one control number

(CONNUM) for merchandise produced

prior to the POI but sold during the POI.

Therefore, we assigned to that

CONNUM the reported direct material

costs and the conversion costs of a

CONNUM with the most similar

product characteristics.

We adjusted Taiwan Tokkin’s G&A

and financial expense ratios by

excluding certain costs from the cost of

goods sold used in the denominator to

ensure that the denominator is on the

same basis as the cost of manufacturing

to which the ratios are being applied.

We adjusted Taiwan Tokkin’s financial

expense ratio to include certain

financial expenses that had been

omitted from the submitted calculation.

2. Test of Home-Market Sales Prices

We compared the weighted-average

COP for Taiwan Tokkin and CSC,

adjusted where appropriate (see above),

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

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,

1102 Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Notices

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 the 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.

For CSC and Taiwan Tokkin, we

calculated NV based on delivered or

FOB 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 and

warranty expenses. For CSC, we also

adjusted for discounts and rebates. In

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

and (B) of the Act, for both CSC and

Taiwan Tokkin, we deducted home

market packing costs and added U.S.

packing costs.

In addition, the Department notes that

CSC, during the fourth quarter of the

POI, instituted a ‘‘special incentive

program’’ for certain customers in the

home market. These sales were included

for purposes of calculating NV for the

preliminary determination. At

verification, the Department will

conduct a detailed examination of this

program in order to determine whether

or not the Department should continue

to include these sales in its calculation

of NV for the final determination.

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)(1) of the Act provides

that CV shall be based on the sum of

each respondent’s cost of materials,

fabrication, interest expense, selling,

general and administrative (SG&A)

expenses and profit. We made

adjustments to each respondent’s

reported cost as indicated above in the

COP section. In accordance with section

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

expenses and profit on the amounts

incurred and realized by each

respondent 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, for each respondent 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, 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 each respondent about

the marketing stages involved in the

reported U.S. and home market sales,

including a description of the selling

activities performed by the respondents

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.

With respect to each respondent’s EP

sales, in this investigation we found a

single LOT in the United States, and a

single, identical LOT in the home

market. It was thus unnecessary to make

any level-of-trade adjustment for

comparison of EP and home market

prices. See Memorandum to the File:

Preliminary Determination Calculation

Memorandum for Taiwan Tokkin Co.,

Ltd., November 8, 1999, and

Memorandum to the File: Preliminary

Determination Calculation

Memorandum for China Steel

Corporation, November 8, 1999.

Currency Conversions

We made currency conversions into

U.S. dollars in accordance with section

773A(a) of the Act based on exchange

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

sales, as certified by the Federal Reserve

Bank.

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 U.S. Customs

to suspend liquidation of all entries of

cold-rolled steel products from Taiwan,

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 U.S. 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)

CSC .......................................... 14.80

Taiwan Tokkin .......................... 4.72

All Others .................................. 14.80 4

4 In accordance with section 735(c)(5) of the

Act and section 351.204(d)(3) of the Department’s regulations, we excluded the weightedaverage dumping margin for Taiwan Tokkin, a

voluntary respondent in this investigation, from

the calculation of the all-others rate.

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