[Federal Register Volume 74, Number 44 (Monday, March 9, 2009)]
[Notices]
[Pages 10019-10022]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-4908]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-846]


Certain Hot-Rolled Flat-Rolled Carbon Quality Steel Products From 
Japan: Preliminary Results of Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) is conducting an 
administrative review of the antidumping duty order on certain hot-
rolled flat-rolled carbon quality steel products (hot-rolled steel) 
from Japan. The United States Steel Corporation (Petitioner) requested 
administrative reviews of JFE Steel Corporation (JFE), Nippon Steel 
Corporation (Nippon), and Kobe Steel, Ltd. (Kobe). This review covers 
exports of subject merchandise to the United States during the period 
June 1, 2007 through May 31, 2008.
    We preliminarily determine that, in accordance with sections 776(a) 
and (b) of the Tariff Act of 1930, as amended (the Act), adverse facts 
available (AFA) should be applied to JFE, Nippon, and Kobe for not 
cooperating with the Department in this administrative review. The 
antidumping margins assigned to these companies are listed in the 
Preliminary Results of Review section of this notice. Interested 
parties are invited to comment on these preliminary results.

EFFECTIVE DATE: March 9, 2009.

FOR FURTHER INFORMATION CONTACT: Martha Douthit, AD/CVD Operations, 
Office 6, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230; telephone: (202) 482-5050.

Background

    On June 29, 1999, the Department published the antidumping duty 
order on hot-rolled steel from Japan in the Federal Register. See 
Antidumping Duty Order: Certain Hot-Rolled Flat-Rolled Carbon-Quality 
Steel Products from Japan, 64 FR 34778 (June 29, 1999).
    On June 9, 2008, the Department published a notice of opportunity 
to request an administrative review of this order. See Antidumping or 
Countervailing Duty Order, Finding, or Suspended Investigation: 
Opportunity to Request Administrative Review, 73 FR 32557 (June 9, 
2008). The Department received a timely request for a review from 
Petitioner, covering JFE, Nippon, and Kobe. On July 30, 2008, the 
Department published its initiation notice for the administrative 
review of these companies under the antidumping order on hot-rolled 
steel from Japan. See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, and Request for Revocation in Part, and 
Deferral of Administrative Review, 73 FR 44220 (July 30, 2008).
    The Department issued Sections A through E of its original 
questionnaire to JFE, Nippon, and Kobe.\1\ The deadlines to submit 
responses to the Department's questionnaire were September 1, 2008 for 
Section A, and September 17, 2008 for Sections B through E, for JFE and 
Nippon, and October 14, 2008 for Section A, and October 30, 2008 for 
Sections B through E for Kobe.
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    \1\ Section 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 (this section is not applicable to respondents in 
non-market economy (NME) cases). 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. Section E 
requests information on further manufacturing.
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    On August 12, 2008, JFE Corporation submitted a letter stating 
that, effective April 1, 2003, Kawasaki Steel Corporation had changed 
its name to JFE as part of a merger with NKK Corporation.\2\ On August 
19, 2008, Nippon submitted a letter stating that it would not be 
submitting a response to the Department's questionnaire. Neither JFE, 
Nippon, nor Kobe submitted any response to the Department's 
questionnaire.
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    \2\ The Department has not previously determined whether JFE is 
a successor to Kawasaki Steel Corporation or NKK Corporation nor has 
it been requested to do so in this review.
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Scope of the Order

    The merchandise covered by this order consists of certain hot-
rolled flat-rolled carbon-quality steel products of a rectangular 
shape, of a width of 0.5 inch or greater, neither clad, plated, nor 
coated with metal and whether or not painted, varnished, or coated with 
plastics or other non-metallic substances, in coils (whether or not in 
successively superimposed layers) regardless of thickness, and in 
straight lengths, of a thickness less than 4.75 mm and of a width 
measuring at least 10 times the thickness. Universal mill plate (i.e., 
flat-rolled products rolled on four faces or in a closed box pass, of a 
width exceeding 150 mm but not exceeding 1250 mm and of a thickness of 
not less than 4 mm, not in coils and without patterns in relief) of a 
thickness not less than 4.0 mm is not included within the scope of this 
order.
    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 the substrate for 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. The substrate for 
motor lamination steels contains micro-alloying levels of elements such 
as silicon and aluminum. Steel products to be included in the scope of 
this investigation, regardless of Harmonized Tariff Schedule of the 
United States (HTSUS) definitions, 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
1.50 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
0.012 percent of boron, or
0.10 percent of molybdenum, or
0.10 percent of niobium, or
0.41 percent of titanium, or
0.15 percent of vanadium, or
0.15 percent of zirconium.
    All products that meet the physical and chemical description 
provided above are within the scope of this order unless otherwise 
excluded. The following products, by way of example, are outside and/or 
specifically excluded from the scope of this order:
    <bullet> Alloy hot-rolled steel products in which at least one of 
the chemical

[[Page 10020]]

elements exceeds those listed above (including e.g., ASTM 
specifications A543, A387, A514, A517, and A506).
    <bullet> SAE/AISI grades of series 2300 and higher.
    <bullet> Ball bearing steels, as defined in the HTSUS.
    <bullet> Tool steels, as defined in the HTSUS.
    <bullet> Silico-manganese (as defined in the HTSUS) or silicon 
electrical steel with a silicon level exceeding 1.50 percent.
    <bullet> ASTM specifications A710 and A736.
    <bullet> USS abrasion-resistant steels (USS AR 400, USS AR 500).
    <bullet> Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

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              C                       Mn                 P                 S                Si               Cr               Cu               Ni
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0.10-0.14%...................  0.90% Max.......  0.025% Max......  0.005% Max......  0.30-0.50%.....  0.50-0.70%.....  0.20-0.40%.....  0.20% Max.
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Width = 44.80 inches maximum; Thickness = 0.063-0.198 inches; Yield Strength = 50,000 ksi minimum; Tensile Strength = 70,000-88,000 psi.

    Hot-rolled steel coil which meets the following chemical, physical 
and mechanical specifications:

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               C                         Mn                   P                   S                  Si                  Cr                  Cu                  Ni                   Mo
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0.10-0.16%.....................  0.70-0.90%........  0.025% Max........  0.006% Max........  0.30-0.50%........  0.50-0.70%........  0.25% Max.........  0.20% Max.........  0.21% Max.
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Width = 44.80 inches maximum; Thickness = 0.350 inches maximum; Yield Strength = 80,000 ksi minimum; Tensile Strength = 105,000 psi Aim.

    Hot-rolled steel coil which meets the following chemical, physical 
and mechanical specifications:

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              C                       Mn                 P                 S                Si                Cr                Cu                Ni              V (wt.)              Cb
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0.10-0.14%...................  1.30-1.80%......  0.025% Max......  0.005% Max......  0.30-0.50%......  0.50-0.70%......  0.20-0.40%......  0.20% Max.......  0.10% Max.......  0.08% Max
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Width = 44.80 inches maximum; Thickness = 0.350 inches maximum; Yield Strength = 80,000 ksi minimum; Tensile Strength = 105,000 psi Aim.

    Hot-rolled steel coil which meets the following chemical, physical 
and mechanical specifications:

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               C                         Mn                   P                   S                  Si                  Cr                  Cu                  Ni                  Nb                  Ca                   Al
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
0.15% Max......................  1.40% Max.........  0.025% Max........  0.010% Max........  0.50% Max.........  1.00% Max.........  0.50% Max.........  0.20% Max.........  0.005% Min........  Treated...........  0.01-0.07%
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Width = 39.37 inches; Thickness = 0.181 inches maximum; Yield Strength = 70,000 psi minimum for thicknesses 0.148 inches and 65,000 psi minimum for thicknesses > 0.148 inches; Tensile Strength = 80,000 psi minimum.

    Hot-rolled dual phase steel, phase-hardened, primarily with a 
ferritic-martensitic microstructure, contains 0.9 percent up to and 
including 1.5 percent silicon by weight, further characterized by 
either (i) tensile strength between 540 N/mm2 and 640 N/mm2 and an 
elongation percentage 26 percent for thicknesses of 2 mm and above, or 
(ii) a tensile strength between 590 N/mm2 and 690 N/mm2 and an 
elongation percentage 25 percent for thicknesses of 2mm and above.
    Hot-rolled bearing quality steel, SAE grade 1050, in coils, with an 
inclusion rating of 1.0 maximum per ASTM E 45, Method A, with excellent 
surface quality and chemistry restrictions as follows: 0.012 percent 
maximum phosphorus, 0.015 percent maximum sulfur, and 0.20 percent 
maximum residuals including 0.15 percent maximum chromium. Grade ASTM 
A570-50 hot-rolled steel sheet in coils or cut lengths, width of 74 
inches (nominal, within ASTM tolerances), thickness of 11 gauge (0.119 
inch nominal), mill edge and skin passed, with a minimum copper content 
of 0.20%.
    The merchandise subject to this order is classified in the HTSUS at 
subheadings: 7208.10.15.00, 7208.10.30.00, 7208.10.60.00, 
7208.25.30.00, 7208.25.60.00, 7208.26.00.30, 7208.26.00.60, 
7208.27.00.30, 7208.27.00.60, 7208.36.00.30, 7208.36.00.60, 
7208.37.00.30, 7208.37.00.60, 7208.38.00.15, 7208.38.00.30, 
7208.38.00.90, 7208.39.00.15, 7208.39.00.30, 7208.39.00.90, 
7208.40.60.30, 7208.40.60.60, 7208.53.00.00, 7208.54.00.00, 
7208.90.00.00, 7210.70.30.00, 7210.90.90.00, 7211.14.00.30, 
7211.14.00.90, 7211.19.15.00, 7211.19.20.00, 7211.19.30.00, 
7211.19.45.00, 7211.19.60.00, 7211.19.75.30, 7211.19.75.60, 
7211.19.75.90, 7212.40.10.00, 7212.40.50.00, and 7212.50.00.00. Certain 
hot-rolled flat-rolled carbon-quality steel covered by this order, 
including: vacuum degassed, fully stabilized; high strength low alloy; 
and the substrate for motor lamination steel may also enter under the 
following tariff numbers: 7225.11.00.00, 7225.19.00.00, 7225.30.30.50, 
7225.30.70.00, 7225.40.70.00, 7225.99.00.90, 7226.11.10.00, 
7226.11.90.30, 7226.11.90.60, 7226.19.10.00, 7226.19.90.00, 
7226.91.50.00, 7226.91.70.00, 7226.91.80.00, and 7226.99.00.00. 
Although the HTSUS subheadings are provided for convenience and Customs 
purposes, the written description of the merchandise is dispositive.

Analysis

Application of Facts Available

    Sections 776(a)(1) and (2) of the Act provide that, if necessary 
information is not available on the record, or if an interested party 
or any other person (A) withholds information that has been requested 
by the administering authority; (B) fails to provide such

[[Page 10021]]

information in a timely matter or in the form or manner requested 
subject to subsections 782(c)(1) and (e) of the Act; (C) significantly 
impedes a proceeding under the antidumping statute; or (D) provides 
such information but the information cannot be verified as provided in 
section 782(i) of the Act, the administering authority shall, subject 
to section 782(d) of the Act, use facts otherwise available in reaching 
the applicable determination.
    JFE, Nippon, and Kobe did not respond to the Department's 
questionnaire. Thus, the information necessary for the Department to 
conduct its analysis is not available in the record. See Section 
776(a)(1) of the Act. Also, JFE's, Nippon's, and Kobe's failure to 
respond to the Department's questionnaire constitutes a refusal to 
provide the Department with information necessary to conduct its 
antidumping analysis. See Sections 776(a), (2)(A), and (B) of the Act. 
As JFE, Nippon, and Kobe have withheld necessary information that has 
been requested by the Department, the Department shall, pursuant to 
sections 776(a)(1), (2)(A), and (2)(B) of the Act, use facts otherwise 
available to reach the applicable determination. JFE, Nippon, and Kobe 
have not submitted any requested information regarding this review; 
therefore sections 782(d) and (e) of the Act are not applicable. See 
e.g., Carbazole Violet Pigment 23 from the People's Republic of China: 
Preliminary Results and Partial Rescission of Antidumping Duty 
Administrative Review, 73 FR 52007 (September 8, 2008) (CVP-23) 
(unchanged in the final results).
    Section 776(b) of the Act provides that, if the Department finds 
that an interested party has failed to comply by not acting to the best 
of its ability to comply with a request of information, the Department 
may use an adverse inference in selecting from among the facts 
otherwise available. Because JFE, Nippon, and Kobe did not respond to 
the Department's questionnaire, the Department finds that these 
companies have failed to cooperate by not acting to the best of their 
ability to comply with the Department's request for information. JFE, 
Nippon, and Kobe did not request additional time to respond to the 
questionnaire. Further, Nippon affirmatively stated on the record that 
it would not submit a response. By withholding the requested 
information, JFE, Nippon, and Kobe prevented the Department from 
conducting any company-specific analysis or calculating dumping margins 
for the POR. Therefore, pursuant to section 776(b) of the Act, the 
Department may preliminarily determine that an inference that is 
adverse to the interests of JFE, Nippon, and Kobe is warranted. Section 
776(b) of the Act also provides that an adverse inference may include 
reliance on information derived from the petition, the final 
determination in the investigation segment of the proceeding, a 
previous review under section 751 of the Act or a determination under 
section 753 of the Act, or any other information placed on the record.
    The Department's practice, when selecting an adverse facts 
available rate from among the possible sources of information, has been 
to ensure that the margin is sufficiently adverse ``as to effectuate 
the statutory purposes of the adverse facts available rule to induce 
respondents to provide the Department with complete and accurate 
information in a timely manner.'' See e.g., Notice of Final 
Determination of Sales at Less than Fair Value: Static Random Access 
Memory Semiconductors from Taiwan, 63 FR 8909, 8932 (February 23, 
1998). Additionally, the Department's practice has been to assign the 
highest margin determined for any party in the less-than-fair-value 
(LTFV) investigation, or in any administrative review of a specific 
order, to respondents who have failed to cooperate with the Department. 
See e.g., CVP-23.
    The Department is assigning JFE, Nippon, and Kobe an AFA rate of 
40.26 percent ad valorem, the margin calculated in the section 129 
redetermination of the original LTFV investigation using information 
provided by Kawasaki Steel Corporation (Kawasaki), and the highest rate 
determined for any party in any segment of this case. See Notice of 
Determination Under Section 129 of the Uruguay Round Agreements Act: 
Antidumping Measures on Certain Hot-Rolled Flat-Rolled Carbon-Quality 
Steel Products from Japan, 67 FR 71936, 71939 (December 3, 2002) (HR 
from Japan129).
    Section 776(c) of the Act provides that the Department shall, to 
the extent practicable, corroborate ``secondary information'' used for 
facts available by reviewing independent sources reasonably at its 
disposal. Secondary information is information derived from the 
petition that gave rise to the investigation or review, the final 
determination concerning the subject merchandise, or any previous 
review under section 751 concerning the subject merchandise. 
Information from a prior segment of the proceeding, such as that used 
here, constitutes secondary information. See e.g., CVP-23. To 
``corroborate'' means that the Department will satisfy itself that the 
secondary information to be used has probative value. See id. To the 
extent practicable, the Department will examine the reliability and 
relevance of the information to be used. Unlike other types of 
information, such as input costs or selling expenses, there are no 
independent sources from which the Department can derive calculated 
dumping margins. The only source for dumping margins is administrative 
determinations. In an administrative review, if the Department chooses 
as AFA a calculated dumping margin from a prior segment of the 
proceeding, it is not necessary to question the reliability of the 
margin for that period. Id.
    In making a determination as to the relevance aspect of 
corroboration, the Department will consider information reasonably at 
its disposal as to whether there are circumstances that would render a 
margin not relevant. Where circumstances indicate that the selected 
margin is not appropriate as adverse facts available, the Department 
will disregard the margin and determine an appropriate margin. For 
example, in Fresh Cut Flowers from Mexico: Final Results of Antidumping 
Duty Administrative Review, 61 FR 6812 (February 22, 1996), the 
Department disregarded the highest margin as ``best information 
available'' (the predecessor to ``facts available'') since the margin 
was based on another company's uncharacteristic business expense that 
resulted in an unusually high dumping margin. Similarly, the Department 
does not apply a margin that has been discredited. See D&L Supply Co. 
v. United States, 113 F.3d 1220, 1224 (Fed. Cir. 1997) (the Department 
will not use a margin that has been judicially invalidated). None of 
these unusual circumstances is present here, and there is no evidence 
indicating that the margin used as facts available in this review is 
not appropriate.
    Absent any other information, we find the calculated rate from the 
investigation, as modified by HR from Japan129, to be appropriate in 
this case and the requirements of section 776(c) of the Act are 
satisfied.

Preliminary Results of Review

    We preliminarily determine that the following dumping margins 
exist:

------------------------------------------------------------------------
                                                                Margin
                   Manufacturer/exporter                      (percent)
------------------------------------------------------------------------
JFE Steel Corporation......................................        40.26
Nippon Steel Corporation...................................        40.26
Kobe Steel, Ltd............................................        40.26
------------------------------------------------------------------------


[[Page 10022]]

Duty Assessment

    Upon publication of the final results of this review, the 
Department shall determine, and U.S. Customs and Border Protection 
(CBP) shall assess, antidumping duties on all appropriate entries. For 
the period June 1, 2007 through May 31, 2008, we preliminarily 
determine the antidumping duty margin to be 40.26 percent for JFE, 
Nippon, and Kobe. If these preliminary results are adopted in our final 
results of this review, the Department will instruct CBP to assess 
antidumping duties on all appropriate entries. The Department intends 
to issue appropriate assessment instructions directly to CBP 15 days 
after the date of publication of the final results of this review.
    The Department clarified its ``automatic assessment'' regulation on 
May 6, 2003. See Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) (Assessment 
Policy Notice). This clarification applies to entries of subject 
merchandise during the POR produced by any company included in the 
final results of review for which the reviewed company did not know 
that the merchandise it sold to the intermediary (e.g., a reseller, 
trading company, or exporter) was destined for the United States. In 
such instances, the Department will instruct CBP to liquidate un-
reviewed entries at the all-others rate if there is no rate for the 
intermediary involved in the transaction. See Assessment Policy Notice 
for a full discussion of this clarification.

Cash Deposit Requirements

    The following cash deposit rates will be effective with respect to 
all shipments of hot-rolled steel from Japan entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results, as provided for by section 751(a)(1) of the Act: (1) For 
JFE, Nippon, and Kobe, the cash deposit rate will be the rate 
established in the final results of this administrative review; (2) for 
previously reviewed or investigated companies not listed above, the 
cash deposit rate will be the company-specific rate established for the 
most recent period; (3) if the exporter is not a firm covered in this 
review, a prior review, or the LTFV investigation, but the manufacturer 
is, the cash deposit rate will be the rate established for the most 
recent period for the manufacturer of the subject merchandise; and (4) 
if neither the exporter nor the manufacturer is a firm covered by this 
review, a prior review, or the LTFV investigation, the cash deposit 
rate shall be the all-others rate established in the section 129 
redetermination of the LTFV investigation, which is 22.92 percent. See 
HR from Japan 129. These deposit rates, when imposed, shall remain in 
effect until further notice.

Public Comment

    Pursuant to section 351.309 of the Department's regulations, 
interested parties may submit written comments in response to these 
preliminary results. Unless the deadline is extended by the Department, 
case briefs are to be submitted within 30 days after the date of 
publication of this notice, and rebuttal briefs, limited to arguments 
raised in case briefs, are to be submitted no later than five days 
after the time limit for filing case briefs. Parties who submit 
arguments in this proceeding are requested to submit with the argument: 
(1) A statement of the issues, and (2) a brief summary of the argument. 
Case and rebuttal briefs must be served on interested parties in 
accordance with section 351.303(f) of the Department's regulations.
    Also, pursuant to section 351.310(c) of the Department's 
regulations, within 30 days of the date of publication of this notice, 
interested parties may request a public hearing on arguments to be 
raised in the case and rebuttal briefs. Unless the Department specifies 
otherwise, the hearing, if requested, will be held two days after the 
date for submission of rebuttal briefs. Parties will be notified of the 
time and location.
    The Department will publish the final results of this 
administrative review, including the results of its analysis of issues 
raised in any case or rebuttal brief, no later than 120 days after 
publication of these preliminary results, unless extended. See section 
351.213(h) of the Department's regulations.

Notification to Importers

    This notice serves as a preliminary reminder to importers of their 
responsibility under section 351.402(f) of the Department's regulations 
to file a certificate regarding the reimbursement of antidumping duties 
prior to liquidation of the relevant entries during this review period. 
Failure to comply with this requirement could result in the Secretary's 
presumption that reimbursement of antidumping duties occurred and the 
subsequent assessment of double antidumping duties.
    These preliminary results of administrative review are issued and 
published in accordance with sections 751(a)(1) and 777(i)(1) of the 
Act.

    Dated: March 2, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.
[FR Doc. E9-4908 Filed 3-6-09; 8:45 am]
BILLING CODE 3510-DS-P