[Federal Register Volume 74, Number 80 (Tuesday, April 28, 2009)]
[Notices]
[Pages 19199-19201]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-9676]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-580-816


Certain Corrosion-Resistant Carbon Steel Flat Products from the 
Republic of Korea: Notice of Amended Final Results of the Fourteenth 
Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On March 16, 2009, the Department of Commerce (the Department) 
published its final results of the fourteenth administrative review for 
certain corrosion-resistant carbon steel flat products (CORE) from the 
Republic of Korea (Korea) for the period from August 1, 2006, through 
July 31, 2007. We are amending our final results to correct ministerial 
errors made in the calculation of the dumping margins for Dongbu Steel 
Co., Ltd., (Dongbu), Hyundai HYSCO (HYSCO), and Pohang Iron & Steel 
Co., Ltd. (POSCO) and Pohang Coated Steel Co., Ltd. (POCOS) 
(collectively, the POSCO), pursuant to section 751(h) of the Tariff Act 
of 1930, as amended (the Act).

EFFECTIVE DATE: April 28, 2009.

FOR FURTHER INFORMATION CONTACT: Christopher Hargett, AD/CVD 
Operations, Office 3, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
4161.

SUPPLEMENTARY INFORMATION:

Background

    On March 16, 2009, the Department published its final results of 
the fourteenth administrative review for CORE from Korea for the period 
from August 1, 2006, through July 31, 2007. See Certain Corrosion-
Resistant Carbon Steel Flat Products from the Republic of Korea: Notice 
of Final Results of the Fourteenth Administrative Review and Partial 
Rescission, 74 FR 11082 (March 16, 2009) (Final Results).
    On March 17, 2009, pursuant to 19 CFR 351.224(c), United States 
Steel Corporation (U.S. Steel), POSCO, and HYSCO submitted comments 
alleging ministerial errors, and requested that the Department correct 
these alleged ministerial errors. On March 23, 2009, U.S. Steel and 
Nucor Corporation (Nucor) submitted responses to the ministerial error 
allegations made by HYSCO and POSCO.
    On March 17, 2009, U.S. Steel alleged that, with respect to Dongbu, 
the Department inadvertently used the difference between the payment 
date and the date of sale as the credit period for the calculation of 
credit expense in the home market instead of using Dongbu's submitted 
customer-specific credit period. Further, U.S. Steel alleged that, with 
respect to HYSCO, the Department used the incorrect beginning and 
ending day for the period reviewed for calculation of the comparison 
market and margin programs.
    On March 17, 2009, POSCO alleged that: 1) the Department did not 
use the whole month for the beginning and ending window period of the 
comparison market and margin programs; 2) the Department inadvertently 
included the variable for indirect selling expenses incurred in Korea 
on export sales (``DINDIRSU'') to be converted from Korean Won to U.S. 
Dollars, when DINDIRSU was reported in U.S. Dollars and did not need to 
be converted; and 3) the Department should have included negative 
dumping margins in the calculation of the weighted-average dumping 
margin, instead of applying the methodology which denies offsets for 
non-dumped sales.
    On March 17, 2009, HYSCO alleged that the Department incorrectly 
applied an interest expense ratio based on the 2006 consolidated 
financial statement for calculation of the 2007 interest expense. HYSCO 
argued that there is information on the record that would allow the 
Department to calculate the actual interest expenses for fiscal year 
2007. HYSCO also alleged that the Department did not make the full 
deductions of transportation expenses and ``other expenses'' in its 
calculation of the general and administrative (G&A) expense ratio for 
2007.
    On March 23, 2009, U.S. Steel and Nucor responded to POSCO's 
ministerial error allegations arguing: 1) that the Department intended 
to apply the zeroing methodology to POSCO's margin calculations, and 
that it is not a ministerial error, and 2) that the change of the 
window period in the comparison market and margin programs, and the 
change to the treatment of DINDIRSU will have no appreciable difference 
on the margin. Thus, the Department should not publish an amended Final 
Results.
    On March 23, 2009, U.S. Steel also responded to HYSCO's ministerial 
error allegations. U.S. Steel argued that: 1) the Department intended 
to make changes to the G&A expense ratio by applying the 2006 movement 
expense ratio to total selling expenses, and to exclude the ``others'' 
category from the non-operating income, and thus, the changes are not 
ministerial errors; 2) the Department intended to apply the calculated 
ratio of long-term to short-term interest rates using 2006 data to the 
2007 calculation of interest expenses, and thus, the changes are not 
ministerial errors; and 3) HYSCO's proposed changes are based on new 
factual information, not previously on the record of this proceeding.
    On March 25, 2009, Union Steel Manufacturing Co., Ltd. filed a 
summons and complaint with the Court of International Trade (CIT) 
challenging various aspects of the Final Results.
    Pursuant to 19 C.F.R. 351.224(e), due to the number of ministerial 
error allegations, and the number of submissions regarding the 
ministerial error allegations, the Department has not found it 
practicable to analyze comments received and correct any potential 
errors within 30 days of the publication of the Final Results.

Scope of the Order

    This order covers cold-rolled (cold-reduced) carbon steel flat-
rolled carbon steel products, of rectangular shape, either clad, 
plated, or coated with corrosion-resistant metals such as zinc, 
aluminum, or zinc-, aluminum-, nickel- or iron-based alloys, whether or 
not

[[Page 19200]]

corrugated or painted, varnished or coated with plastics or other 
nonmetallic substances in addition to the metallic coating, in coils 
(whether or not in successively superimposed layers) and of a width of 
0.5 inch or greater, or in straight lengths which, if of a thickness 
less than 4.75 millimeters, are of a width of 0.5 inch or greater and 
which measures at least 10 times the thickness or if of a thickness of 
4.75 millimeters or more are of a width which exceeds 150 millimeters 
and measures at least twice the thickness, as currently classifiable in 
the Harmonized Tariff Schedule of the United States (HTSUS) under item 
numbers 7210.30.0030, 7210.30.0060, 7210.41.0000, 7210.49.0030, 
7210.49.0090, 7210.61.0000, 7210.69.0000, 7210.70.6030, 7210.70.6060, 
7210.70.6090, 7210.90.1000, 7210.90.6000, 7210.90.9000, 7212.20.0000, 
7212.30.1030, 7212.30.1090, 7212.30.3000, 7212.30.5000, 7212.40.1000, 
7212.40.5000, 7212.50.0000, 7212.60.0000, 7215.90.1000, 7215.90.3000, 
7215.90.5000, 7217.20.1500, 7217.30.1530, 7217.30.1560, 7217.90.1000, 
7217.90.5030, 7217.90.5060, 7217.90.5090. Included in this order are 
corrosion-resistant flat-rolled products of 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. 
Excluded from this order are flat-rolled steel products either plated 
or coated with tin, lead, chromium, chromium oxides, both tin and lead 
(terne plate), or both chromium and chromium oxides (tin-free steel), 
whether or not painted, varnished or coated with plastics or other 
nonmetallic substances in addition to the metallic coating. Also 
excluded from this order are clad products in straight lengths of 
0.1875 inch or more in composite thickness and of a width which exceeds 
150 millimeters and measures at least twice the thickness. Also 
excluded from this order are certain clad stainless flat-rolled 
products, which are three-layered corrosion-resistant carbon steel 
flat-rolled products less than 4.75 millimeters in composite thickness 
that consist of a carbon steel flat-rolled product clad on both sides 
with stainless steel in a 20[percnt]-60[percnt]-20[percnt] ratio.
    These HTSUS item numbers are provided for convenience and customs 
purposes. The written descriptions remain dispositive.

Amended Final Results of Review

    After analyzing U.S. Steel's comments, we have determined, in 
accordance with section 751(h) of the Act and 19 CFR 351.224, that the 
Department has made a ministerial error in the final results 
calculation for Dongbu in this administrative review. The Department 
has re-calculated Dongbu's credit expense using the customer-specific 
credit period, as reported by Dongbu. For a detailed discussion of the 
ministerial error, see ``Memorandum from James Terpstra to Melissa 
Skinner, re: Amended Final Results for the Fourteenth Administrative 
Review of the Antidumping Duty Order on Certain Corrosion-Resistant 
Carbon Steel Flat Products from the Republic of Korea (Period of 
Review: August 1, 2006, through July 31, 2007): Allegations of 
Ministerial Errors,'' dated April 20, 2009 (Ministerial Error memo); 
see also ``Memorandum from Christopher Hargett to James Terpstra, re: 
Amended Final Results in the 06/07 Administrative Review on Corrosion-
Resistant Carbon Steel Flat Products from Korea: Calculation Memorandum 
for Dongbu Steel Co., Ltd.,'' dated April 20, 2009.
    After analyzing POSCO's comments, we have determined that we erred 
by not beginning the window period on the first day of the month in 
question and not ending the window period on the last day of the month 
in question. Further, we agree that we incorrectly included DINDRSU to 
the list of variables to be converted from Korean Won to U.S. Dollars. 
We disagree with POSCO regarding the treatment of sales that may have 
occurred for which the export price (or constructed export price) 
exceeded normal value. The Department's treatment of any such sales 
that may have occurred was not a ministerial error.
    The Department agrees with Nucor that the changes to the 
calculations of POSCO's margin in this administrative review do not 
result in a revised rate. Although the calculated rate for POSCO 
remains unchanged, the Department is making the aforementioned 
programming changes in accordance with the Department's practice. See 
Ministerial Error memo; see also ``Memorandum from Christopher Hargett 
to James Terpstra, re: Amended Final Results in the 06/07 
Administrative Review on Corrosion-Resistant Carbon Steel Flat Products 
from Korea: Calculation Memorandum for Pohang Iron & Steel Company, 
Ltd. (POSCO), and Pohang Coated Steel Co., Ltd.(POCOS)(collectively, 
the POSCO Group),'' dated April 20, 2009.
    After analyzing HYSCO's comments, we have determined that we did 
not make a clerical error with regard to the financial expense ratio. 
In order to be consistent with the facts on the record, we chose to 
follow the exact interest income allocation methodology that HYSCO used 
in the 2006 financial expense ratio calculation in its section D 
questionnaire response, dated February 4, 2008. This methodology 
reasonably allocates interest income based on a ratio of short-term and 
long-term deposits.
    With regard to the error allegation on movement expenses, we agree 
with HYSCO that we made a clerical error by inadvertently not deducting 
the total Freight and Export Expenses from the SG&A calculation. The 
record demonstrates that both of these line items are most likely 
related to freight-out. Regarding the ``others income'' in the 
calculation of HYSCO's G&A expenses, we find that the Department 
intended to exclude the ``others income'' as an offset to G&A.
    With regard to the error allegation that we used the incorrect 
beginning and ending day for the period reviewed for calculation of the 
comparison market and margin programs, we agree with U.S. Steel that we 
used the incorrect beginning and ending day. Therefore, in accordance 
with the Department's practice, we are correcting theses dates to 
reflect the first and last dates of the sales in question. See 
Ministerial Error memo; see also ``Memorandum from Christopher Hargett 
to James Terpstra, Amended Final Results of the Fourteenth 
Administrative Review of Certain Corrosion-Resistant Carbon Steel Flat 
Products from Korea: Calculation Memorandum for Hyundai HYSCO,'' dated 
April 20, 2009.
    We are revising the review-specific average rate to reflect the 
weighted average rate based on the amended results of the companies 
subject to the instant review. See ``Memorandum from Christopher 
Hargett to James Terpstra, Amended Final Results in the 06/07 
Administrative Review of Corrosion-Resistant Carbon Steel Flat Products 
from Korea: Calculation of Review-Specific Average Rate,'' dated April 
20, 2009.
    In accordance with section 751(h) of the Act, we are amending the 
final results of the antidumping duty administrative review of CORE 
from Korea for the period August 1, 2006, to July 31, 2007. As a result 
of correcting the ministerial errors discussed above, and in the 
company-specific memos

[[Page 19201]]

listed above, the following margins apply:

----------------------------------------------------------------------------------------------------------------
                           Company                                  Final Margin          Amended Final Margin
----------------------------------------------------------------------------------------------------------------
Dongbu......................................................                      1.85                      1.90
POSCO.......................................................                      0.53                      0.53
HYSCO.......................................................                      1.57                      1.52
Review - Specific Average\1\................................                      5.01                      5.01
----------------------------------------------------------------------------------------------------------------
\1\ The review-specific average rate is applicable to LG Chem., Ltd., and Dongkuk Industries Co., Ltd. This rate
  is based on the weighted average of the margins calculated for those companies selected for individual review,
  excluding de minimis margins or margins based entirely on adverse facts available, and do not change after
  recalculating the margins for Dongbu, POSCO and HYSCO.

Assessment

    The Department will determine, and U.S. Customs and Border 
Protection (CBP) shall assess, antidumping duties on all appropriate 
entries, pursuant to 19 CFR 351.212(b). The Department calculated 
importer-specific duty assessment rates on the basis of the ratio of 
the total antidumping duties calculated for the examined sales to the 
total entered value of the examined sales for that importer. Where the 
assessment rate is above de minimis, we will instruct CBP to assess 
duties on all entries of subject merchandise by that importer. The 
Department intends to issue appropriate assessment instructions 
directly to CBP 15 days after publication of these amended final 
results of review.
    The Department clarified its ``automatic assessment''' regulation 
on May 6, 2003 (68 FR 23954). This clarification applies to POR entries 
of subject merchandise produced by companies examined in this review 
(i.e., companies for which a dumping margin was calculated) where the 
companies did not know that their merchandise was destined for the 
United States. In such instances, we will instruct CBP to liquidate 
unreviewed entries at the all-others rate if there is no rate for the 
intermediate company(ies) involved in the transaction. For a full 
discussion of this clarification, see Antidumping and Countervailing 
Duty Proceedings: Assessment of Antidumping Duties, 68 FR 23954 (May 6, 
2003).

Cash Deposit Requirements

    The following deposit requirements will be effective upon 
publication of the final results of this administrative review for all 
shipments of CORE from Korea entered, or withdrawn from warehouse, for 
consumption on or after the publication date of these final results, as 
provided by section 751(a) of the Act: (1) for companies covered by 
this review, the cash deposit rate will be the rate listed above; (2) 
for previously reviewed or investigated companies other than those 
covered by this review, 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 
less-than-fair-value investigation, but the producer 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 producer is a firm covered in this review, a prior 
review, or the investigation, the cash deposit rate will be 17.70 
percent, the all-others rate established in the less-than-fair-value 
investigation. These deposit requirements shall remain in effect until 
further notice.

Reimbursement of Duties

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f) to file a certificate regarding 
the reimbursement of antidumping and/or countervailing duties prior to 
liquidation of the relevant entries during this review period. Failure 
to comply with this requirement could result in the presumption that 
reimbursement of antidumping and/or countervailing duties occurred and 
the subsequent increase in antidumping duties by the amount of 
antidumping and/or countervailing duties reimbursed.

Administrative Protective Order

    This notice also is the only reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305. Timely written 
notification of the return/destruction of APO materials or conversion 
to judicial protective order is hereby requested. Failure to comply 
with the regulations and the terms of an APO is a sanctionable 
violation.
    These amended final results of administrative review and notice are 
issued and published in accordance with sections 751(a)(1) and (h), and 
777(i)(1) of the Act, and 19 CFR 351.224.

    Dated: April 22, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.
[FR Doc. E9-9676 Filed 4-27-09; 8:45 am]
BILLING CODE 3510-DS-S