[Federal Register: April 25, 2003 (Volume 68, Number 80)]
[Notices]
[Page 20373-20376]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25ap03-32]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-877]
Notice of Final Determination of Sales at Less Than Fair Value:
Lawn and Garden Steel Fence Posts From the People's Republic of China
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of final determination of sales at less than fair value.
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SUMMARY: We determine that lawn and garden steel fence posts (fence
posts) from the People's Republic of China (PRC) are being sold, or are
likely to be sold, in the United States at less than fair value (LTFV),
as provided in section 735 of the Tariff Act of 1930, as amended (the
Act). The estimated margins of sales at LTFV are shown in the Final
Determination of Investigation section of this notice.
EFFECTIVE DATE: April 25, 2003.
FOR FURTHER INFORMATION CONTACT: Salim Bhabhrawala or Chris Welty,
Group II, Office 5, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
1784, (202) 482-0186, respectively.
SUPPLEMENTARY INFORMATION:
Case History
The preliminary determination in this investigation was published
on December 4, 2002. See Notice of Preliminary Determination of Sales
at Less Than Fair Value and Postponement of Final Determination: Lawn
and Garden Steel Fence Posts from the People's Republic of China, 67 FR
72141 (December 4, 2002) (Preliminary Determination). Since the
preliminary determination, the following events have occurred.
We conducted verification of the questionnaire responses of
Shanghai BaoSteel International Economic and Trading Corporation, Ltd.
(BaoSteel),\1\ Hebei Metals and Minerals Import and Export Corporation
(Hebei), and China Nanyang Import & Export Corporation (Nanyang),\2\
from January 13 through
[[Page 20374]]
January 24, 2003. See Verification of Sales and Factors of Production
Data Submitted by Shanghai BaoSteel International Economic and Trading
Corporation, Ltd. (Feb. 20, 2003); Verification of Sales and Factors of
Production Data Submitted by Hebei Metals and Minerals Import and
Export Corporation and its Suppliers, (Mar. 4, 2003); and Verification
of Sales and Factor of Production Data Submitted by China Nanyang
Import & Export Co., Ltd. (Mar. 4, 2003).
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\1\ Hangzhou Hongyuan Sporting Goods Company, Ltd. was the
producer of the subject merchandise sold by BaoSteel during the
period of investigation (POI).
\2\ Tianjin Shenyuan Steel Company, Ltd. and Tianjin Sunny Steel
Products Company, Ltd. were the producers of the subject merchandise
sold by Nanyang during the POI.
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On January 15, 2003, the petitioner \3\ submitted information to
support its contention that the price of BaoSteel's market-economy
supplied input should not be included in the calculation of normal
value. See Issues and Decision Memorandum for the Final Determination
of the Antidumping Duty Investigation of Lawn and Garden Steel Fence
Posts from the People's Republic of China, from Holly A. Kuga, Acting
Deputy Assistant Secretary, Import Administration, to Joseph A.
Spetrini, Acting Assistant Secretary for Import Administration
(Decision Memorandum) dated April 18, 2003, at Comment 2.
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\3\ The petitioner in this investigation is Steel City
Corporation.
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Respondents Hebei and Nanyang filed surrogate value information and
data on January 21, 2003.
On February 23, 2003, the Department of Commerce (the Department)
issued a correction to the Preliminary Determination, correcting the
scope of the investigation to be consistent with the International
Trade Commission's preliminary determination. See Lawn and Garden Steel
Fence Posts from China, 67 FR 42581 (June 24, 2002). No other changes
were made to the Preliminary Determination. See Correction: Notice of
Preliminary Determination of Sales at Less Than Fair Value and
Postponement of Final Determination: Lawn and Garden Steel Fence Posts
from the People's Republic of China, 68 FR 8737 (Feb. 25, 2003).
On March 13, 2003, Hebei, Nanyang, and the petitioner filed case
briefs. BaoSteel did not file a case brief. On March 17, 2003, the
Department filed a letter rejecting the petitioner's March 13, 2003,
case brief because it contained untimely filed new information. We
asked the petitioner to resubmit its case brief in compliance with the
Department's specific redaction instructions contained within that
letter. (See Letter from the Department to Steel City Corporation dated
March 17, 2003). On March 18, 2003, the petitioner submitted a revised
version of its case brief, complying with the Department's instructions
in the Department's March 17, 2003, letter. The petitioner also filed
its rebuttal brief on March 18, 2003. All three respondents filed
rebuttal briefs on March 24, 2003.
No hearing was requested by the interested parties in this
proceeding.
Scope of Investigation
For purposes of this investigation, the products covered consist of
all ``U'' shaped or ``hat'' shaped lawn and garden fence posts made of
steel and/or any other metal, weighing 1 pound or less per foot, and
produced in the PRC. The fence posts included within the scope of this
investigation weigh up to 1 pound per foot and are made of steel and/or
any other metal. Imports of these products are classified under the
following categories: fence posts, studded with corrugations, knobs,
studs, notches or similar protrusions with or without anchor posts and
exclude round or square tubing or pipes.
These posts are normally made in two different classes, light and
heavy duty. Light duty lawn and garden fence posts are normally made of
14 gauge steel (0.068 inches--0.082 inches thick), 1.75 inches wide, in
3, 4, 5, or 6 foot lengths. These posts normally weigh approximately
0.45 pounds per foot and are packaged in mini-bundles of 10 posts and
master bundles of 400 posts. Heavy duty lawn and garden steel fence
posts are normally made of 13 gauge steel (0.082 inches--0.095 inches
thick), 3 inches wide, in 5, 6, 7, and 8 foot lengths. Heavy duty posts
normally weigh approximately 0.90 pounds per foot and are packaged in
mini-bundles of 5 and master bundles of 200. Both light duty and heavy
duty posts are included within the scope of the investigation.
Imports of these products are classified under the Harmonized
Tariff Schedule of the United States (HTSUS) subheading 7326.90.85.35.
Fence posts classified under subheading 7308.90 are also included
within the scope of the investigation if the fence posts are made of
steel and/or metal.
Specifically excluded from the scope are other posts made of steel
and/or other metal including ``tee'' posts, farm posts, and sign posts,
regardless of weight.\4\ Although the HTSUS subheadings are provided
for convenience and U.S. Customs Service (Customs) purposes, the
written description of the merchandise under investigation is
dispositive.
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\4\ Tee posts are made by rolling red hot steel into a ``T''
shape. These posts do not have tabs or holes to help secure fencing
to them and have primarily farm and industrial uses.
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Period of Investigation
The POI is October 1, 2001, through March 31, 2002.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this proceeding and to which we have responded are listed in the
Appendix to this notice and addressed in the Decision Memorandum, which
is hereby adopted by this notice. Parties can find a complete
discussion of the issues raised in this investigation and the
corresponding recommendations in this public memorandum which is on
file in the Central Records Unit (CRU), room B-099 of the main
Department building. In addition, a complete version of the Decision
Memorandum can be accessed directly on the internet at http://ia.ita.doc.gov.
The paper copy and electronic version of the Decision
Memorandum are identical in content.
Non-Market Economy
The Department has treated the PRC as an non-market economy (NME)
country in all its past antidumping investigations. See e.g., Notice of
Final Determination of Sales at Less Than Fair Value: Ferrovanadium
From the People's Republic of China, 67 FR 71137, 71138 (Nov. 29,
2002); and Notice of Final Determination of Sales at Less Than Fair
Value: Certain Circular Welded Carbon-Quality Steel Pipe From the
People's Republic of China, 67 FR 36570, 36571 (May 24, 2002). An NME
country designation remains in effect until it is revoked by the
Department. See section 771(18)(C) of the Act. The respondents in this
investigation have not requested revocation of the PRC's NME status.
Therefore, we have continued to treat the PRC as an NME country in this
investigation. For further details, see the Preliminary Determination.
Separate Rates
In our Preliminary Determination, we found that all three
responding companies met the criteria for the application of separate,
company-specific antidumping duty rates. We have not received any other
information since the preliminary determination which would warrant
reconsideration of our separates rates determination with respect to
these companies. For a complete discussion of the Department's
determination that the respondents are entitled to a separate rate, see
the Preliminary Determination.
The PRC-Wide Rate
In the preliminary determination, we found that the use of adverse
facts
[[Page 20375]]
available for the PRC-wide rate was appropriate for other exporters in
the PRC based on our presumption that those respondents who failed to
demonstrate entitlement to a separate rate constitute a single
enterprise under common control by the Chinese government. The PRC-wide
rate applies to all entries of the merchandise under investigation
except for entries from Hebei, entries from Nanyang which were produced
by Tianjin Shenyuan Steel Company, Ltd. or Tianjin Sunny Steel Products
Company, Ltd., and entries from BaoSteel which were produced by
Hangzhou Hongyuan Sporting Goods Company, Ltd.
When analyzing the petition for purposes of the initiation, the
Department reviewed all of the data upon which the petitioners relied
in calculating the estimated dumping margin and determined that the
margin in the petition was appropriately calculated and supported by
adequate evidence in accordance with the statutory requirements for
initiation. In order to corroborate the petition margin for purposes of
using it as adverse facts available, we examined the price and cost
information provided in the petition in the context of our preliminary
determination. For further details, see Memorandum from Christopher
Smith to Gary Taverman, Corroboration of Secondary Information, dated
November 27, 2002 (Preliminary Corroboration Memorandum). We received
no comments on this decision and continue to find in this final
determination that the rate contained in the petition, as recalculated,
has probative value. We have continued to apply this rate in the final
determination. For further discussion, see Preliminary Determination.
Since the preliminary determination, we have obtained new
information regarding several surrogate values. In order to take into
account the more recent information, we recalculated the petition
margin using, where possible, revised surrogate values to value the
petitioners' consumption rates. As a result of this recalculation, the
PRC-wide rate is, for the final determination, 15.61 percent. See
Memorandum from Christopher Smith to the File, Corroboration of
Secondary Information, dated April 18, 2003.
Surrogate Country
For purposes of the final determination, we continue to find that
India remains the appropriate surrogate country for the PRC. For
further discussion and analysis regarding the surrogate country
selection for the PRC, see the Preliminary Determination.
Verification
As provided in section 782(i) of the Act, we verified the
information submitted by the respondents for use in our final
determination. We used standard verification procedures including
examination of relevant accounting and production records, and original
source documents provided by the respondents. For changes from the
Preliminary Determination as a result of verification, see the Changes
Since the Preliminary Determination section below.
Changes Since the Preliminary Determination
Based on our findings at verification and on our analysis of the
comments received, we have made the following adjustments to the
calculation methodologies used in the preliminary determination. These
adjustments are discussed in detail in the Decision Memorandum; Final
Calculation of Antidumping Duty Investigation of Lawn and Garden Steel
Fence Posts From the People's Republic of China for Shanghai BaoSteel
International Economic and Trading Co., Ltd. (Apr. 18, 2003)
(BaoSteel's Final Calculation Memorandum); Final Calculation of
Antidumping Duty Investigation of Lawn and Garden Steel Fence Posts
From the People's Republic of China for Hebei Metals and Minerals
Import and Export Corporation (Apr. 18, 2003) Hebei's Final Calculation
Memorandum); and Final Calculation of Antidumping Duty Investigation of
Lawn and Garden Steel Fence Posts From the People's Republic of China
for China Nanyang Import & Export Corporation (Apr. 18, 2003)
(Nanyang's Final Calculation Memorandum).
BaoSteel
1. We revised our calculation of freight costs for the factors of
production to include the revised distances identified during
verification. See BaoSteel's Final Calculation Memorandum.
2. We revised the calculations for the following packing materials
for BaoSteel as a result of changes discovered at verification: packing
labels, plastic hanging ties, and plastic ties. See id.
Hebei
1. Hebei omitted certain bank fees from its reporting of U.S.
sales. Accordingly, we have included these verified fees as adjustments
to U.S. price. See Hebei's Final Calculation Memorandum.
2. We removed non-subject ``T-posts'' from Hebei's U.S. sales
database. See id.
3. We revised our calculation of freight costs for the factors of
production to include the revised distances identified during
verification. See id.
4. We revised certain packing material weights to account for
remeasurements conducted at verification. See id.
5. We revised the electricity factor for one of Hebei's suppliers
in accordance with our verification findings. See id.
Nanyang
1. As reported by Nanyang during the company's presentation of
minor corrections at verification, the company omitted certain bank
fees from its reporting of U.S. sales. Accordingly, we have included
these verified fees as adjustments to U.S. price. See Nanyang's Final
Calculation Memorandum.
2. At verification, certain differences were found between reported
transportation distances and remeasured distances. We have revised the
transportation distances previously used to reflect the remeasured
amounts. See id.
3. We revised our calculation for certain rivet costs to reflect
changes in weight, loss rate, and consumption rates discovered at
verification. See id.
4. We revised our acid bath and phosphate acid calculations to
reflect changes in input allocations discovered at verification. See
id.
5. At verification, certain differences were found between reported
packing material weights and remeasured weights. We have revised the
packing material weights previously used to reflect the remeasured
amounts. See id.
6. We revised certain electricity calculations to reflect changes
in electricity consumption discovered as a result of verification. See
id.
7. We revised certain labor calculations to reflect changes in
labor allocations discovered as a result of verification. See id.
8. We revised certain calculations for steel coil scrap production
to reflect changes in steel allocations discovered as a result of
verification. See id.
Surrogate Values
1. We adjusted the surrogate value for steel coil to reflect
updated surrogate data. See Decision Memorandum at Comment 3.
2. We adjusted the surrogate values for the following packing
materials to reflect updated surrogate data: steel screws, nails, wood
pallets, wood, plastic sheet/strips, foam, plastic twine, and steel
pallets. See id.
[[Page 20376]]
3. We revised the surrogate value for hydrochloric acid to reflect
less aberrational data. See Decision Memorandum at Comment 4.
4. We revised the surrogate value for brokerage and handling to
include a more representative and contemporaneous source of surrogate
data. See Decision Memorandum at Comment 5.
5. We revised the surrogate value for labor to reflect the
Department's updated wage rate regression calculation. See Decision
Memorandum at Comment 6.
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B)(ii) of the Act, we are
directing the Customs Service to continue suspension liquidation of
entries of subject merchandise from the PRC, with the exception of
merchandise exported by Shanghai BaoSteel International Economic and
Trading Co., Ltd. which was produced by Hangzhou Hongyuan Sporting
Goods Company, Ltd., and merchandise exported by China Nanyang Import &
Export corporation which was produced by Tianjin Shenyuan Steel
Company, Ltd. or Tianjin Sunny Steel Products Company, Ltd., that are
entered, or withdrawn from warehouse, for consumption on or after
December 4, 2002 (the date of publication of the Preliminary
Determination in the Federal Register). We will instruct the Customs
Service to require a cash deposit or the posting of a bond equal to the
weighted-average amount by which NV exceeds the U.S. price, as
indicated in the chart below. These suspension-of-liquidation
instructions will remain in effect until further notice.
Final Determination
We determine that the following weighted-average percentage margins
exist for the period October 1, 2001, through March 31, 2002:
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Weighted-
average
Manufacturer/Exporter margin
(percent)
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Shanghai BaoSteel International Economic and Trading Co., 0.00
Ltd.......................................................
Hebei Metals and Minerals Imports and Export Corporation... 6.60
China Nanyang Import & Export Corporation.................. 1.42
PRC-Wide Rate.............................................. 15.61
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The PRC-wide rate applies to all entries of the merchandise under
investigation except for entries from Hebei, entries from Nanyang which
were produced by Tianjin Shenyuan Steel company, Ltd. or Tianjin Sunny
Steel Products Company, Ltd., and entries from BaoSteel which were
produced by Hangzhou Hongyuan Sporting Goods Company, Ltd.
International Trade Commission Notification
In accordance with section 735(d) of the Act, we have notified the
International Trade Commission (ITC) of our determination. As our final
determination is affirmative, the ITC will determine, within 45 days,
whether these imports are materially injuring, or threaten material
injury to, the U.S. industry. If the ITC determines that material
injury, or threat of material injury does not exist, the proceeding
will be terminated and all securities posted will be refunded or
cancelled. If the ITC determines that such injury does exist, the
Department will issue an antidumping duty order directing Customs
officials to assess antidumping duties on all imports of subject
merchandise entered for consumption on or after the effective date of
the suspension of liquidation.
Notification Regarding Administrative Protective Order (APO)
This notice also serves as a reminder to parties subject to APO of
their responsibility concerning the disposition of proprietary
information disclosed under APO in accordance with 19 CFR 351.305.
Timely notification of 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.
This determination is issued and published in accordance with
sections 735(d) and 777(i)(1) of the Act.
Dated: April 18, 2003.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
Appendix--Decision Memorandum
Comment 1: Department's Acceptance of New Information
Comment 2: Use of BaoSteel's Market Economy Steel Value
Comment 3: Surrogate Value Selection for Steel Coil and Packing
Materials
Comment 4: Surrogate Value Selection for Powder Coating, Coal, and
Hydrochloric Acid
Comment 5: Surrogate Value Selection for Selection for Brokerage and
Handling
Comment 6: Surrogate Value Selection for Labor
Comment 7: Exclusion of Labor Costs from Calculation of Surrogate
Overhead and SG&A Ratios
Comment 8: Use of Gross, Rather Than Net, Material Costs in the
Calculation of Surrogate Overhead and SG&A Ratios
[FR Doc. 03-10257 Filed 4-24-03; 8:45 am]
BILLING CODE 3510-DS-M