Daily Rules, Proposed Rules, and Notices of the Federal Government
If these preliminary results are adopted in the final results of this administrative review, we will instruct U.S. Customs and Border Protection (CBP) to assess antidumping duties on all appropriate entries of subject merchandise during the POR. Additionally, we are rescinding this review with respect to POSCO because this company has been revoked from the antidumping duty order.
On August 19, 1993, the Department published the antidumping duty order on CORE from Korea.
On October 6, 2011, the Department placed on the record and distributed to all interested parties under administrative protective order a memorandum stating that we intend to limit the number of companies individually examined during this review and attaching proprietary data to be used for selection of companies for individual examination in this administrative review.
During the most recently completed segments of the proceeding in which HYSCO and Dongbu participated,
From December 2011 through August 2012, Dongbu and HYSCO submitted timely responses to the Department's questionnaires.
On October 28 and November 22, 2011, Union submitted requests to be considered a mandatory respondent by the Department.
Although Union was not selected as a mandatory respondent, it submitted a voluntary response and has requested to be treated as a voluntary respondent.
On October 28, 2011, POSCO submitted its request to be considered a voluntary respondent by the Department, but it withdrew its request to participate as a voluntary respondent for this administrative review on November 10, 2011. As mentioned,
The POR covered by this review is August 1, 2010, through July 31, 2011.
This order covers 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 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, 7210.49.0091, 7210.49.0095, 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, and 7217.90.5090. Included in the order are flat-rolled products of non-rectangular cross-section where such cross-section is achieved subsequent to the rolling process including products which have been beveled or rounded at the edges (
These HTSUS item numbers are provided for convenience and customs purposes. The written descriptions remain dispositive.
Generally, we have looked to section 735(c)(5) of the Act, which provides instructions for calculating the all-others rate in an investigation, for guidance when calculating the rate for respondents not selected for individual examination. Section 735(c)(5)(A) of the Act instructs that we do not calculate an all-others rate using any zero or
In this review, we have calculated weighted-average dumping margins of zero or
On May 8 and 24, 2012, petitioners submitted targeted dumping allegations with regard to HYSCO and Dongbu, respectively.
The petitioners note that they conducted their own targeted dumping analyses of Dongbu's and HYSCO's U.S. sales using the Department's targeted dumping methodology as applied in
On August 7, 2012, Dongbu submitted its response to petitioners' May 24, 2012, targeted dumping allegation submitted with regard to Dongbu. Dongbu argued that there is no statutory authority for applying the targeted dumping exception provided in section 777A(d)(1)(B) of the Act to this administrative review. Moreover, Dongbu claimed that a decision to apply the average-to-transaction methodology with zeroing in this review would completely undermine the recent change to the Department's zeroing practice in reviews that was announced in the
HYSCO did not comment on the targeted dumping allegation submitted by the petitioners.
For purposes of these preliminary results, the Department did not conduct a targeted dumping analysis. In calculating the preliminary weighted-average dumping margin, the Department applied the calculation methodology adopted in the
In accordance with section 771(16) of the Act, we considered all CORE products produced by the respondents, meeting the description of the scope of the order, and sold in the home market during the POR to be foreign like products. As the basis for NV, we first identified home market sales in the ordinary course of trade of foreign like product which was identical to the subject merchandise sold in the United States. Where there were no sales in the ordinary course of trade of identical merchandise in the home market to compare to U.S. sales, we identified home market sales of the most similar foreign like product on the basis of the characteristics listed in Appendix V of the Department's antidumping questionnaire.
To determine whether sales of CORE by the respondents to the United States were made at prices less than NV, we compared U.S. prices, based either on the export price (EP) or the constructed export price (CEP), to the NV, as described in the “Export Price/Constructed Export Price” and “Normal Value” sections of this notice. In particular, the Department compared monthly, weighted-average EPs or CEPs with monthly, weighted-average normal values, and granted offsets for negative comparison results in the calculation of the weighted-average dumping margin for each respondent.
For the price to the United States, we used, as appropriate, EP or CEP, in accordance with sections 772(a) and (b) of the Act. We calculated EP when the merchandise was sold by the producer or exporter outside of the United States directly to the first unaffiliated purchaser in the United States prior to importation and when CEP was not otherwise warranted based on the facts on the record. We calculated CEP for those sales where a person in the United States, affiliated with the foreign exporter or acting for the account of the exporter, made the sale to the first unaffiliated purchaser in the United States of the subject merchandise. We based EP and CEP on the packed prices and the applicable delivery terms to the first unaffiliated customer in, or for exportation to, the United States.
For U.S. prices based on EP, we made deductions for movement expenses in accordance with section 772(c)(2)(A) of the Act, which included, where appropriate, foreign inland freight to the port, foreign brokerage, international freight, marine insurance, U.S. inland freight from the port to warehouse, U.S. warehouse expenses, U.S. inland freight from the warehouse to the unaffiliated customer, U.S. brokerage and handling expenses, and U.S. customs duty.
In accordance with section 772(b) of the Act, we calculated CEP where the record established that sales made by HYSCO and Dongbu were made in the United States after importation. HYSCO's and Dongbu's respective affiliates in the United States (1) took title to the subject merchandise and (2) invoiced and received payment from the unaffiliated U.S. customers for their sales of the subject merchandise to those U.S. customers.
In its section A questionnaire response, HYSCO requested that the Department excuse it from reporting information for certain POR sales of subject merchandise imported by its wholly owned U.S. subsidiary, HYSCO America Company (HAC), that were further manufactured after importation and sold as non-subject merchandise in the United States, claiming that determining CEP for sales through HAC would be unreasonably burdensome.
Section 772(e) of the Act provides that when the value added in the United States by an affiliated party is likely to exceed substantially the value of the subject merchandise, the Department shall use one of the following prices to
The record evidence shows that the value added by the affiliated party to the subject merchandise after importation in the United States was significantly greater than the 65 percent threshold we use in determining whether the value added in the United States by an affiliated party substantially exceeds the value of the subject merchandise.
The appropriate methodology for determining the CEP for sales whose value has been substantially increased through U.S. further manufacturing generally must be made on a case-by-case basis.
Based on a comparison of the aggregate quantity of home market and U.S. sales, we determined that the quantity of the foreign like product sold in the exporting country was sufficient to permit a proper comparison with the sales of the subject merchandise to the United States, pursuant to section 773(a)(1) of the Act. Therefore, in accordance with section 773(a)(1)(B)(i) of the Act, we based NV on the price at which the foreign like product was first sold for consumption in the home market, in usual commercial quantities and in the ordinary course of trade. We increased NV by U.S. packing costs in accordance with section 773(a)(6)(A) of the Act.
Where appropriate, we deducted inland freight from the plant to distribution warehouse, warehouse expense, inland freight from the plant/warehouse to customer, and packing, pursuant to section 773(a)(6)(B) of the Act. Additionally, we made adjustments to NV, where appropriate, for credit and warranty expenses, in accordance with section 773(a)(6)(C)(iii) of the Act. Where appropriate, we added interest revenue, and applied billing adjustments to the gross unit price.
For purposes of calculating NV, section 771(16) of the Act defines “foreign like product” as merchandise which is either (1) identical or (2) similar to the merchandise sold in the United States. When no identical products are sold in the home market, the products which are most similar to the product sold in the United States are identified. When the NV is based on the prices of sales for the most similar products, an adjustment is made to the NV for differences in cost attributable to differences in the actual physical characteristics between the products sold in the United States and in the home market.
As stated above, in the most recently completed segments of this proceeding in which HYSCO and Dongbu participated, the Department found and disregarded sales that failed the cost test for each of these companies. Therefore, for this review, the Department has reasonable grounds to believe or suspect that sales of the foreign like products under consideration for the determination of NV may have been made at prices below the COP as provided by section 773(b)(2)(A)(ii) of the Act. Pursuant to section 773(b)(1) of the Act, the Department conducted a COP investigation of sales in the home market by HYSCO and Dongbu.
We calculated the COP based on the sum of the cost of materials and fabrication for the foreign like product, plus amounts for SG&A expenses and packing, in accordance with section 773(b)(3) of the Act. Except as noted below, the Department relied on the COP data submitted by HYSCO and Dongbu in their supplemental section D questionnaire responses.
HYSCO provided information showing that it purchased substrate (i.e., hot-rolled coil) from affiliated parties. The substrate is a major input into production of the merchandise-under-consideration, and, therefore, we have applied the major input rule to value such purchases. As a result, we adjusted HYSCO's substrate costs pursuant to section 773(f)(3) of the Act. In addition, for the preliminary results we used the cost of manufacturing adjusted to reflect the differences in temper rolling costs.
Based on our review of the record evidence, neither Dongbu nor HYSCO appeared to experience significant changes in the cost of manufacturing during the POR.
As required under section 773(b)(2) of the Act, we compared the POR weighted-average COP to the per-unit price of the home market sales of the foreign like product to determine whether these sales had been made at prices below the COP within an extended period of time in substantial quantities, and whether such prices were sufficient to permit the recovery of all costs within a reasonable period of time. We determined the net home market prices for the below cost test by subtracting from the gross unit price any applicable movement charges, discounts, rebates, direct and indirect selling expenses, and packing expenses.
Pursuant to section 773(b)(2)(C)(i) of the Act, where less than 20 percent of sales of a given product were at prices less than the COP, we disregarded no 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 the respondent's home market sales of a given model were at prices less than the COP, we disregarded the below-cost sales because: (1) they were made within an extended period of time in “substantial quantities,” in accordance with sections 773(b)(2)(B) and (C) of the Act; and (2) based on our comparison of prices to the weighted-average COPs, they were at prices which would not permit the recovery of all costs within a reasonable period of time, in accordance with section 773(b)(2)(D) of the Act.
As a result of our analysis for these preliminary results, for HYSCO and Dongbu, we have disregarded certain home markets sales priced below COP in accordance with section 773(b)(1) of the Act.
For those home market products for which there were sales at prices above the COP for HYSCO and Dongbu, we based NV on home market prices. In these preliminary results, we were able to match all U.S. sales to contemporaneous sales, made in the ordinary course of trade, of either an identical or a similar foreign like product, based on the matching characteristics identified in Appendix V of the original questionnaire. We calculated NV based on free on board (FOB) mill or delivered prices to unaffiliated customers, or prices to affiliated customers which were determined to be at arm's length (
In accordance with section 773(a)(6)(C)(iii) of the Act, we adjusted for differences in the circumstances of sale. These circumstances included differences in imputed credit expenses and other direct selling expenses, such as the expense related to bank charges and factoring.
Dongbu and HYSCO reported that they made sales in the home market to affiliated parties. The Department calculates NV based on a sale to an affiliated party only if it is satisfied that the price to the affiliated party is comparable to the price at which sales are made to parties not affiliated with the producer or exporter,
To test whether these sales were made at arm's length, we compared the reported home market prices of sales to affiliated and unaffiliated customers with applied billing adjustments, including interest revenue, net of all movement charges, direct selling expenses, discounts, rebates, and packing. In accordance with the Department's current practice, if the prices charged to an affiliated party were, on average, between 98 and 102 percent of the prices charged to unaffiliated parties at the same level-of-trade for merchandise identical or most similar to the merchandise sold to the affiliated party, we considered the sales to be at arm's-length prices.
In accordance with section 773(a)(1)(B) of the Act, we determined NV based on sales in the home market at the same level of trade (LOT) as the EP or CEP sales, to the extent possible. When there were no sales at the same LOT, we compared U.S. sales to comparison market sales at the most similar LOT.
Pursuant to 19 CFR 351.412, to determine whether EP or CEP sales and NV sales were at different LOTs, we examined stages in the marketing process and selling functions along the chain of distribution between the producer and the unaffiliated (or arm's-length) customers. If the home market sales are at a different LOT and the differences affect price comparability, as manifested in a pattern of consistent price differences between sales at different LOTs in the country in which NV is determined, we will make an LOT adjustment under section 773(a)(7)(A) of the Act. For CEP sales, if the NV LOT is at a more advanced stage of distribution than the CEP LOT, and the data available do not provide an appropriate basis to determine an LOT adjustment, we will grant a CEP offset, as provided in section 773(a)(7)(B) of the Act.
We did not make an LOT adjustment under 19 CFR 351.412(e) because there was only one home market LOT for each respondent and we were unable to identify a pattern of consistent price differences attributable to differences in LOTs.
For a detailed description of our LOT methodology and a summary of company-specific LOT findings for these preliminary results,
For purposes of these preliminary results, we made currency conversions in accordance with section 773A(a) of the Act, based on the official exchange rates published by the Federal Reserve Bank.
As a result of this review, we preliminarily find that the following weighted-average dumping margins exist:
The Department intends to disclose calculations performed within five days of the date of publication of this notice to the parties to this proceeding in accordance with 19 CFR 351.224(b). Interested parties may submit case briefs no later than 30 days after the date of publication of these preliminary results of review.
An interested party may request a hearing within 30 days of publication of these preliminary results.
The Department shall determine, and CBP shall assess, antidumping duties on all appropriate entries. If the weighted-average dumping margin for particular respondents is above
The Department clarified its “automatic assessment” regulation on May 6, 2003.
For the companies which were not selected for individual review, we will calculate an assessment rate based on the weighted average of the cash deposit rates calculated for the companies selected for individual review.
We intend to issue liquidation instructions to CBP 15 days after publication of the final results of this review.
The following deposit rates 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, as provided by section 751(a)(2)(C) of the Act: (1) The cash deposit rates for the companies listed above will be the rates established in the final results of this review, except if the rate is less than 0.5 percent and, therefore,
This notice serves as a preliminary reminder to importers of their responsibility under 19 CFR 351.402(f)(2) 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 review are issued and published in accordance with sections751(a)(1) and 777(i)(1) of the Act.