Antidumping: Tin mill products from Japan,
[Federal Register: November 30, 1999 (Volume 64, Number 229)]
[Notices]
[Page 66892-66894]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30no99-69]
DEPARTMENT OF COMMERCE
International Trade Administration
[A-588-854]
Initiation of Antidumping Duty Investigation: Certain Tin Mill Products From Japan
AGENCY: Import Administration, International Trade Administration, Department of Commerce.
EFFECTIVE DATE: November 30, 1999.
FOR FURTHER INFORMATION CONTACT: Samantha Denenberg at (202) 482-1386 or Linda Ludwig at (202) 482-3833, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 20230.
Initiation of Investigations
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 the Department's regulations are references to the provisions codified at 19 CFR Part 351 (1998).
The Petition
On October 28, 1999, the Department of Commerce (``the Department'') received a petition filedin proper form by Weirton Steel Corporation, Independent Steelworkers Union, and United Steelworkers of America, AFL-CIO (collectively petitioners). The Department received supplemental information to the petition on November 8, 1999.
In accordance with section 732(b) of the Act, petitioners allege that imports of certain tin mill products (``TMP'') from Japan are being, or are likely to be, sold in the United States at less than fair value within the meaning of section 731 of the Act, and that such imports are materially injuring an industry in the United States.
The Department finds that petitioners filedthese petitions on behalf of the domestic industry because they are interested parties as defined in sections 771(9)(C) and (D) of the Act and they have demonstrated sufficient industry support with respect to the antidumping investigation they are requesting the Department to initiate (see Determination of Industry Support for the Petition below).
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Scope of Investigation
The scope of this investigation includes tin mill flat-rolled products that are coated or plated with tin, chromium or chromium oxides. Flat-rolled steel products coated with tin are known as tin plate. Flat-rolled steel products coated with chromium or chromium oxides are known as tin-free steel or electrolytic chromium-coated steel. The scope includes all the noted tin mill products regardless of thickness, width, form (in coils or cut sheets), coating type (electrolytic or otherwise), edge (trimmed, untrimmed or further processed, such and scroll cut), coating thickness, surface finish, temper, coating metal (tin, chromium, chromium oxide), reduction (single-or double-reduced), and whether or not coated with a plastic material.
The merchandise subject to this investigation is classified in the Harmonized Tariff Schedule of the United States (``HTSUS''), under HTSUS subheadings 7210.11.0000, 7210.12.0000, 7210.50.0000, 7212.10.0000, and 7210.50.0000 if of non-alloy steel and under HTSUS subheadings 7225.99.0090, and 7226.99.0000 if of alloy steel. Although the subheadings are provided for convenience and Customs purposes, our written description of the scope of this investigation is dispositive.
Determination of Industry Support for the Petition
Section 732(b)(1) of the Act requires that a petition be filedon behalf of the domestic industry. Section 732(c)(4)(A) of the Act provides that a petition meets this requirement if the domestic producers or workers who support the petition account for: (1) at least 25 percent of the total production of the domestic like product; and (2) more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the petition.
Section 771(4)(A) of the Act defines the ``industry'' as the producers of a domestic like product. Thus, to determine whether the petition has the requisite industry support, the statute directs the Department to look to producers and workers who produce the domestic like product. The International Trade Commission (ITC), which is responsible for determining whether ``the domestic industry'' has been injured, must also determine what constitutes a domestic like product in order to define the industry. While both the Department and the ITC must apply the same statutory definition regarding the domestic like product (section 771(10) of the Act), they do so for different purposes and pursuant to separate and distinct authority. In addition, the Department's determination is subject to limitations of time and information. Although this may result in different definitions of the like product, such differences do not render the decision of either agency contrary to the law.‹SUP›1‹/SUP›
\1\ See Algoma Steel Corp. Ltd., v. United States, 688 F. Supp. 639, 642-44 (CIT 1988); High Information Content Flat Panel Displays and Display Glass Therefore from Japan: Final Determination; Rescission of Investigation and Partial Dismissal of Petition, 56 FR 32376, 32380-81 (July 16, 1991).
Section 771(10) of the Act defines the domestic like product as ``a product which is like, or in the absence of like, most similar in characteristics and uses with, the article subject to an investigation under this title.'' Thus, the reference point from which the domestic like product analysis begins is ``the article subject to an investigation,'' i.e., the class or kind of merchandise to be investigated, which normally will be the scope as defined in the petition. Moreover, petitioners do not offer a definition of domestic like product distinct from the scope of the investigation.
The domestic like product referred to in the petition is the single domestic like product defined in the ``Scope of Investigation'' section, above. The Department has no basis on the record to find the petition's definition of the domestic like product to be inaccurate. The Department has, therefore, adopted the domestic like product definition set forth in the petition. In this case, the Department has determined that the petition and supplemental information to the petition contain adequate evidence of sufficient industry support (see Attachment to the Initiation Checklist Re: Industry Support, November 17, 1999). Producers and workers supporting the petition represent over 50 percent of total production of the domestic like product. Accordingly, both tests under section 732(c)(4)(A) are satisfied, and the Department determines that this petition is filedon behalf of the domestic industry within the meaning of 732(b)(1) of the Act.
Export Price and Normal Value
The following are descriptions of the allegations of sales at less than fair value upon which our decision to initiate this investigation is based. Should the need arise to use any of this information in our preliminary or final determinations for purposes of facts available under section 776 of the Act, we may re-examine the information and revise the margin calculations, if appropriate. Japan
Petitioners identified Nippon Steel Corporation, NKK Corporation, Kawasaki Steel Corporation, and Toyo Kohan Co. Ltd. as possible exporters of TMP from Japan. Petitioners further identified these exporters as the primary producers of subject merchandise in Japan. Petitioners based export price (``EP'') for imports from Japan on import values as recorded in official U.S. Department of Commerce IM- 145 statistics. In calculating import values, petitioners used the customs values reported for the HTS categories which represent imports of tin plate (e.g., HTSUS 7210.12.0000) and imports of tin free steel (e.g., HTSUS 7210.50.0000). Petitioners used average customs values for each product (for the month of June 1999) which approximate the FOB price of the merchandise, packaged and ready for delivery in the exporter's country. Petitioners did not deduct foreign inland freight and handling in Japan because they had no information regarding these expenses.
With respect to normal value (``NV''), petitioners stated that the volume of Japanese home market sales was sufficient to form a basis for normal value, pursuant to section 773(a)(1)(C)(ii) of the Act. Petitioners constructed normal values based on the average prices of tin mill products sold in Japan by Nippon Steel Corporation (``Nippon'') to large end users during June 1999. Petitioners determined that, because Nippon is the largest producer of the subject merchandise in the Japanese market, Nippon's prices would be representative of the normal value in the Japanese tin mill market. The Japanese home market prices for five sample models of tin plate products and thirteen sample models of tin free steel were obtained by foreign market research consultants in Japan. The prices used in the calculation of NV were delivered, VAT exclusive prices. Petitioners derived NV by deducting a commission from the delivered price, which represents payment made to large trading companies. Petitioners also deducted expenses for freight, handling, and other movement related expenses such as storage during transportation and tolls. For the calculation of dumping margins, petitioners compared the average unit value for all five sample sales of tin plate to the average customs value for the corresponding HTSUS item for the month of June 1999, and the average unit value for all thirteen sample sales of tin free steel to the
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average customs value for the corresponding HTSUS item for the month of June 1999.
The estimated dumping margins in the petition, based on a comparison between Nippon's home market prices and U.S. prices derived from IM-145 statistics, range from 0.78 percent to 95.29 percent.
Fair Value Comparisons
Based on the data provided by petitioners, there is reason to believe that imports of certain tin mill products from Japan are being, or are likely to be, sold at less than fair value.
Allegations and Evidence of Material Injury and Causation
The petition alleges that the U.S. industry producing the domestic like product is being materially injured, and is threatened with material injury, by reason of the imports of the subject merchandise sold at less than fair value. Petitioners explained that the industry's injured condition is evident in the declining trends in net operating profits, net sales volumes, and capacity utilization. The allegations of injury and causation are supported by relevant evidence including U.S. Customs import data, lost sales, and pricing information. The Department assessed the allegations and supporting evidence regarding material injury and causation, and determined that these allegations are supported by accurate and adequate evidence and meet the statutory requirements for initiation (see Attachments to Initiation Checklist, Re: Material Injury, November 17, 1999).
Initiation of Antidumping Investigations
Based upon our examination of the petition on TMP and petitioners' supplemental information clarifying the petition, we have found that the petition meets the requirements of section 732 of the Act. Therefore, we are initiating an antidumping duty investigation to determine whether imports of certain tin mill products from Japan are being, or are likely to be, sold in the United States at less than fair value. Unless the deadline is extended, we will make our preliminary determination no later than 140 days after the date of publication of this notice.
Distribution of Copies of the Petitions
In accordance with section 732(b)(3)(A) of the Act, a copy of the public version of each petition has been provided to the representatives of Japan. We will attempt to provide a copy of the public version of each petition to each exporter named in the petition (as appropriate).
International Trade Commission Notification
We have notified the ITC of our initiation, as required by section 732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will determine, by December 13, 1999, whether there is a reasonable indication that imports of certain tin mill products from Japan are causing material injury, or threatening to cause material injury, to a U.S. industry. A negative ITC determination will result in the investigation being terminated; otherwise, these investigations will proceed according to statutory and regulatory time limits.
This notice is published pursuant to section 777(i) of the Act.
Dated: November 17, 1999. Joseph A. Spetrini, Acting Assistant Secretary for Import Administration.
[FR Doc. 99-30972Filed11-29-99; 8:45 am]
BILLING CODE 3510-DS-P
