You are on page 1of 11

Federal Register / Vol. 70, No.

152 / Tuesday, August 9, 2005 / Notices 46137

Based on the EA, RUS has concluded review no later than 120 days from the that responded to the questionnaire,
that the proposed action will not have date of publication of this notice. only two, Chia Far and YUSCO,
a significant effect to various resources, FOR FURTHER INFORMATION CONTACT: reported that they sold subject
including important farmland, Melissa Blackledge (Chia Far) or Karine merchandise to the United States during
floodplains, wetlands, cultural Gziryan (YUSCO); AD/CVD Operations the POR.
resources, threatened and endangered Office 4, Import Administration, On November 10, 2004, we notified
species and their critical habitat, air and International Trade Administration, the following companies by letter that if
water quality, and noise. U.S. Department of Commerce, 14th they did not respond to the
RUS has also determined that there Street and Constitution Avenue, NW., Department’s requests for information
would be no negative impacts of the Washington, DC 20230; telephone (202) by November 17, 2004, the Department
proposed project on minority 482–3518 or (202) 482–4081, may use adverse facts available (‘‘AFA’’)
communities and low-income respectively. in determining their dumping margins:
communities as a result of the Tang Eng, Goang Jau Shing, Chien
construction of the project. SUPPLEMENTARY INFORMATION: Shing, PFP Taiwan, Yieh Mau, Yieh
Dated: July 21, 2005. Background Trading, and Yieh Loong. In November
2004, Tang Eng, Yieh Mau, and Yieh
James R. Newby, On July 1, 2004, the Department Loong reported that they did not sell or
Assistant Administrator, Electric Program, published a notice of opportunity to ship subject merchandise to the United
Rural Utilities Service. request an administrative review of the States during the POR.
[FR Doc. 05–15675 Filed 8–8–05; 8:45 am] antidumping duty order on SSSS from Throughout this administrative
BILLING CODE 3410–15–P Taiwan. See Antidumping or review, the Department has issued
Countervailing Duty Order, Finding, or supplemental questionnaires to Chia Far
Suspended Investigation; Opportunity and YUSCO, and petitioners have
DEPARTMENT OF COMMERCE to Request Administrative Review, 69 submitted comments regarding the
FR 39903 (July 1, 2004). In response to respondents’ questionnaire responses.
International Trade Administration this opportunity notice, on July 30, The petitioners have also submitted
[A–583–831] 2004, petitioners and one producer/ comments regarding Ta Chen and the
exporter, Chia Far, requested that the Emerdex companies.
Stainless Steel Sheet and Strip in Coils Department conduct an administrative On March 9, 2005, the Department
from Taiwan: Preliminary Results and review covering the period July 1, 2003, extended the deadline for issuing the
Partial Rescission of Antidumping through June 30, 2004. Based on these preliminary results in this
Duty Administrative Review requests, the Department initiated an administrative review until August 1,
administrative review of the following 2005. See Stainless Steel Sheet and
AGENCY: Import Administration, sixteen companies: Ta Chen Stainless Strip in Coils from Taiwan: Extension of
International Trade Administration, Pipe Co., Ltd. (‘‘Ta Chen’’), Tung Mung Time Limits for Preliminary Results of
Department of Commerce. Development Co. Ltd. (‘‘Tung Mung’’), Antidumping Duty Administrative
EFFECTIVE DATE: August 9, 2005. China Steel Corporation (‘‘China Steel’’), Review, 70 FR 11614 (March 9, 2005).
SUMMARY: In response to a request from Yieh Mau Corp. (‘‘Yieh Mau’’), Chain
petitioners 1 and one Taiwanese Scope of the Order
Chon Industrial Co., Ltd. (‘‘Chain
manufacturer/exporter, Chia Far Chon’’), Goang Jau Shing Enterprise Co., The products covered by the order on
Industrial Factory Co., Ltd. (‘‘Chia Far’’), Ltd. (‘‘Goang Jau Shing’’), PFP Taiwan SSSS from Taiwan are certain stainless
the Department of Commerce (‘‘the Co., Ltd. (‘‘PFP Taiwan’’), Yieh Loong steel sheet and strip in coils. Stainless
Department’’) is conducting an Enterprise Company, Ltd. (‘‘Yieh steel is an alloy steel containing, by
administrative review of the Loong’’), Tang Eng Iron Works weight, 1.2 percent or less of carbon and
antidumping duty order on stainless Company, Ltd. (‘‘Tang Eng’’), Yieh 10.5 percent or more of chromium, with
steel sheet and strip in coils (‘‘SSSS’’) Trading Corporation (‘‘Yieh Trading’’), or without other elements. The subject
from Taiwan. This review covers six Chien Shing Stainless Steel Company sheet and strip is a flat–rolled product
producers/exporters of the subject Ltd. (‘‘Chien Shing’’), Chia Far, Yieh in coils that is greater than 9.5 mm in
merchandise. The period of review United Steel Corporation (‘‘YUSCO’’), width and less than 4.75 mm in
(‘‘POR’’) is July 1, 2003, through June Emerdex Stainless Flat–Rolled Products, thickness, and that is annealed or
30, 2004. Inc., Emerdex Stainless Steel, Inc., and otherwise heat treated and pickled or
The Department has preliminarily the Emerdex Group (‘‘the Emerdex otherwise de–scaled. The subject sheet
determined that all but one of the companies’’). See Initiation of and strip may also be further processed
companies subject to this review made Antidumping and Countervailing Duty (e.g., cold–rolled, polished, aluminized,
U.S. sales at prices less than normal Administrative Reviews and Request for coated, etc.) provided that it maintains
value (‘‘NV’’). If these preliminary Revocation in Part, 69 FR 52857 (August the specific dimensions of sheet and
results are adopted in our final results 30, 2004). strip following such processing.
of administrative review, we will During September, October, and
instruct U.S. Customs and Border November, 2004, the Department issued
structure and business practices, the merchandise
Protection (‘‘CBP’’) to assess under review that it sells, and the manner in which
its antidumping questionnaire to all of it sells that merchandise in all of its markets.
antidumping duties on all appropriate the companies for which a review was Section B requests a complete listing of all home
entries. Interested parties are invited to initiated except the Emerdex companies market sales, or, if the home market is not viable,
comment on these preliminary results of (for further discussion of the Emerdex
of sales in the most appropriate third-country
market (this section is not applicable to respondents
review. We will issue the final results of companies, see the section of this notice in non-market economy (NME) cases). Section C
entitled ‘‘Partial Final Rescission of requests a complete listing of U.S. sales. Section D
1 The petitioners are Allegheny Ludlum, AK Steel requests information on the cost of production
Corporation, Butler Armco Independent Union, J&L Review,’’ below).2 Of the six companies (COP) of the foreign like product and the
Specialty Steel, Inc., United Steelworks of America, constructed value (CV) of the merchandise under
AFL-CIO/CLC, and Zanesville Armco Independent 2 Section A of the questionnaire requests general review. Section E requests information on further
Organization. information concerning a company’s corporate manufacturing.

VerDate jul<14>2003 15:52 Aug 08, 2005 Jkt 205001 PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 E:\FR\FM\09AUN1.SGM 09AUN1
46138 Federal Register / Vol. 70, No. 152 / Tuesday, August 9, 2005 / Notices

The merchandise subject to this order by weight, between 0.37 and 0.43 between 50 and 300 oersteds. This
is currently classifiable in the HTSUS at percent carbon, between 1.15 and 1.35 product is most commonly used in
subheadings: 7219.13.00.31, percent molybdenum, and between 0.20 electronic sensors and is currently
7219.13.00.51, 7219.13.00.71, and 0.80 percent manganese. This steel available under proprietary trade names
7219.13.00.81, 7219.14.00.30, also contains, by weight, phosphorus of such as ‘‘Arnokrome III.’’ ‘‘Arnokrome
7219.14.00.65, 7219.14.00.90, 0.025 percent or less, silicon of between III’’ is a trademark of the Arnold
7219.32.00.05, 7219.32.00.20, 0.20 and 0.50 percent, and sulfur of Engineering Company.
7219.32.00.25, 7219.32.00.35, 0.020 percent or less. The product is Certain electrical resistance alloy steel
7219.32.00.36, 7219.32.00.38, manufactured by means of vacuum arc is also excluded from the scope of this
7219.32.00.42, 7219.32.00.44, remelting, with inclusion controls for order. This product is defined as a non–
7219.33.00.05, 7219.33.00.20, sulphide of no more than 0.04 percent magnetic stainless steel manufactured to
7219.33.00.25, 7219.33.00.35, and for oxide of no more than 0.05 American Society of Testing and
7219.33.00.36, 7219.33.00.38, percent. Flapper valve steel has a tensile Materials (‘‘ASTM’’) specification B344
7219.33.00.42, 7219.33.00.44, strength of between 210 and 300 ksi, and containing, by weight, 36 percent
7219.34.00.05, 7219.34.00.20, yield strength of between 170 and 270 nickel, 18 percent chromium, and 46
7219.34.00.25, 7219.34.00.30, ksi, plus or minus 8 ksi, and a hardness percent iron, and is most notable for its
7219.34.00.35, 7219.35.00.05, (‘‘Hv’’) of between 460 and 590. Flapper resistance to high temperature
7219.35.00.15, 7219.35.00.30, valve steel is most commonly used to corrosion. It has a melting point of 1390
7219.35.00.35, 7219.90.00.10, produce specialty flapper valves in degrees Celsius and displays a creep
7219.90.00.20, 7219.90.00.25, compressors. rupture limit of 4 kilograms per square
7219.90.00.60, 7219.90.00.80, Also excluded is a product referred to millimeter at 1000 degrees Celsius. This
7220.12.10.00, 7220.12.50.00, as suspension foil, a specialty steel steel is most commonly used in the
7220.20.10.10, 7220.20.10.15, product used in the manufacture of production of heating ribbons for circuit
7220.20.10.60, 7220.20.10.80, suspension assemblies for computer breakers and industrial furnaces, and in
7220.20.60.05, 7220.20.60.10, disk drives. Suspension foil is described rheostats for railway locomotives. The
7220.20.60.15, 7220.20.60.60, as 302/304 grade or 202 grade stainless product is currently available under
7220.20.60.80, 7220.20.70.05, steel of a thickness between 14 and 127 proprietary trade names such as ‘‘Gilphy
7220.20.70.10, 7220.20.70.15, microns, with a thickness tolerance of 36.’’ ‘‘Gilphy 36’’ is a trademark of
7220.20.70.60, 7220.20.70.80, plus-or-minus 2.01 microns, and surface Imphy, S.A.
7220.20.80.00, 7220.20.90.30, glossiness of 200 to 700 percent Gs. Certain martensitic precipitation–
7220.20.90.60, 7220.90.00.10, Suspension foil must be supplied in coil hardenable stainless steel is also
7220.90.00.15, 7220.90.00.60, and widths of not more than 407 mm, and excluded from the scope of this order.
7220.90.00.80. with a mass of 225 kg or less. Roll marks This high–strength, ductile stainless
Although the HTSUS subheadings are may only be visible on one side, with steel product is designated under the
provided for convenience and customs no scratches of measurable depth. The Unified Numbering System (‘‘UNS’’) as
purposes, the Department’s written material must exhibit residual stresses S45500–grade steel, and contains, by
description of the merchandise covered of 2 mm maximum deflection and weight, 11 to 13 percent chromium, and
by this order is dispositive. flatness of 1.6 mm over 685 mm length. 7 to 10 percent nickel. Carbon,
Excluded from the scope of this order Certain stainless steel foil for manganese, silicon and molybdenum
are the following: (1) Sheet and strip automotive catalytic converters is also each comprise, by weight, 0.05 percent
that is not annealed or otherwise heat excluded from the scope of the order. or less, with phosphorus and sulfur
treated and pickled or otherwise de– This stainless steel strip in coils is a each comprising, by weight, 0.03
scaled, (2) sheet and strip that is cut to specialty foil with a thickness of percent or less. This steel has copper,
length, (3) plate (i.e., flat–rolled between 20 and 110 microns used to niobium, and titanium added to achieve
stainless steel products of a thickness of produce a metallic substrate with a aging, and will exhibit yield strengths as
4.75 mm or more), (4) flat wire (i.e., honeycomb structure for use in high as 1700 Mpa and ultimate tensile
cold–rolled sections, with a prepared automotive catalytic converters. The strengths as high as 1750 Mpa after
edge, rectangular in shape, of a width of steel contains, by weight, carbon of no aging, with elongation percentages of 3
not more than 9.5 mm), and (5) razor more than 0.030 percent, silicon of no percent or less in 50 mm. It is generally
blade steel. Razor blade steel is a flat– more than 1.0 percent, manganese of no provided in thicknesses between 0.635
rolled product of stainless steel, not more than 1.0 percent, chromium of and 0.787 mm, and in widths of 25.4
further worked than cold–rolled (‘‘cold– between 19 and 22 percent, aluminum mm. This product is most commonly
reduced’’), in coils, of a width of not of no less than 5.0 percent, phosphorus used in the manufacture of television
more than 23 mm and a thickness of of no more than 0.045 percent, sulfur of tubes and is currently available under
0.266 mm or less, containing, by weight, no more than 0.03 percent, lanthanum proprietary trade names such as
12.5 to 14.5 percent chromium, and of less than 0.002 or greater than 0.05 ‘‘Durphynox 17.’’ ‘‘Durphynox 17’’ is a
certified at the time of entry to be used percent, and total rare earth elements of trademark of Imphy, S.A.
in the manufacture of razor blades. See more than 0.06 percent, with the Finally, three specialty stainless steels
Chapter 72 of the HTSUS, ‘‘Additional balance iron. Permanent magnet iron– typically used in certain industrial
U.S. Note’’ 1(d). chromium-cobalt alloy stainless strip is blades and surgical and medical
In response to comments by interested also excluded from the scope of this instruments are also excluded from the
parties, the Department also determined order. This ductile stainless steel strip scope of the order. These include
that certain specialty stainless steel contains, by weight, 26 to 30 percent stainless steel strip in coils used in the
products were excluded from the scope chromium, and 7 to 10 percent cobalt, production of textile cutting tools (e.g.,
of the investigation and the subsequent with the remainder of iron, in widths carpet knives). This steel is similar to
order. These excluded products are 228.6 mm or less, and a thickness AISI grade 420, but containing, by
described below. between 0.127 and 1.270 mm. It exhibits weight, 0.5 to 0.7 percent of
Flapper valve steel is defined as magnetic remanence between 9,000 and molybdenum. The steel also contains,
stainless steel strip in coils containing, 12,000 gauss, and a coercivity of by weight, carbon of between 1.0 and

VerDate jul<14>2003 15:52 Aug 08, 2005 Jkt 205001 PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 E:\FR\FM\09AUN1.SGM 09AUN1
Federal Register / Vol. 70, No. 152 / Tuesday, August 9, 2005 / Notices 46139

1.1 percent, sulfur of 0.020 percent or and Partial Rescission of Antidumping respondent. The party requesting an
less, and includes between 0.20 and Duty Administrative Review, 62 FR administrative review ‘‘must bear the
0.30 percent copper and between 0.20 53287, 53288 (October 14, 1997). relatively small burden imposed on it by
and 0.50 percent cobalt. This steel is the regulation to name names’’ of the
Partial Final Rescission of Review
sold under proprietary names such as appropriate respondent in its review
‘‘GIN4 Mo.’’ The second excluded On October 27, 2004, the Department request. See Floral Trade Council of
stainless steel strip in coils is similar to issued a letter to petitioners noting that Davis, California v. United States, et al.,
AISI 420–J2 and contains, by weight, while 19 C.F.R. § 351.213 provides that 1993 WL 534598 (December 22, 1993).
carbon of between 0.62 and 0.70 domestic interested parties may request See also Potassium Permanganate From
percent, silicon of between 0.20 and a review of ‘‘specified individual the People’s Republic of China:
0.50 percent, manganese of between exporters or producers covered by the Rescission of Antidumping Duty
0.45 and 0.80 percent, phosphorus of no order,’’ record information indicates the Administrative Review, 68 FR 58306,
more than 0.025 percent and sulfur of Emerdex companies are U.S. 58307 (October 9, 2003) (the Department
no more than 0.020 percent. This steel corporations located in California, rescinded the review noting that the
has a carbide density on average of 100 rather than producers or exporters party requested a review of a U.S.
carbide particles per 100 square covered by the order on SSSS from importer, rather than an exporter or
microns. An example of this product is Taiwan.3 See also petitioners’ producer of subject merchandise).
‘‘GIN5’’ steel. The third specialty steel September 10, 2004, submission to the Where this burden has not been met, the
has a chemical composition similar to Department. Therefore, we informed ‘‘ITA is not required to conduct an
AISI 420 F, with carbon of between 0.37 petitioners that the Department intends investigation to determine who should
and 0.43 percent, molybdenum of to rescind the instant review with be investigated in an administrative
between 1.15 and 1.35 percent, but respect to the Emerdex companies. review proceeding.’’ See Floral Trade
lower manganese of between 0.20 and Petitioners, however, claim that the Council of Davis, California v. United
0.80 percent, phosphorus of no more following record information supports States et al., 707 F. Supp. 1343, 1345
than 0.025 percent, silicon of between their contention that ‘‘Emerdex’’ is a (February 16, 1989). Moreover,
0.20 and 0.50 percent, and sulfur of no Taiwanese exporter, supplier, or petitioners’ failure to name the actual
more than 0.020 percent. This product producer of subject merchandise: (1) a parties to be reviewed has deprived
is supplied with a hardness of more 2003 Dun & Bradstreet Business importers of notice that their imports
than Hv 500 guaranteed after customer Information Report for Emerdex could be affected by the review. As the
processing, and is supplied as, for Stainless Flat Roll Products Inc. Court of International Trade (‘‘CIT’’)
example, ‘‘GIN6.’’ This list of uses is (‘‘Emerdex Flat Roll’’) indicating the stated, the Department’s initiation
illustrative and provided for descriptive company ‘‘operates blast furnaces or notice ‘‘serves to notify any interested
purposes only. ‘‘GIN4 Mo,’’ ‘‘GIN5’’ and steel mills, specializing in the party that the antidumping duty rate on
‘‘GIN6’’ are the proprietary grades of manufacture of stainless steel,’’ (2) goods obtained from exporters named in
Hitachi Metals America, Ltd. Emerdex Flat Roll’s 2003 U.S. income the notice of initiation for an
tax return indicating at least 25% of the administrative review may be affected
Partial Preliminary Rescission of company is owned by someone in
Review by the outcome of that review. So
Taiwan, 3) the 2002 financial statement apprised, ‘‘importers could participate
Seven respondents, Ta Chen, Yieh of Ta Chen showing the second largest in the administrative review in an effort
Mau, Chain Chon, Tung Mung, Tang accounts payable balance for the to ensure that the calculation of
Eng, Yieh Loong, and China Steel, company was owed to Emerdex. antidumping duties on those products
certified to the Department that they did According to petitioners, the principal was correct.’’ See Transcom, Inc. and
not ship subject merchandise to the input used by Ta Chen in production is L&S Bearing Company v. United States,
United States during the POR. The SSSS.4 Based upon the above 182 F.3d 876, 880 (June 16, 1999). Here,
Department subsequently obtained CBP information, petitioners urge the no such notice was given because
information in order to substantiate the Department to explore this matter petitioners failed to name the foreign
respondents’ claims. See Memorandum further by issuing a series of questions exporters or producers to be reviewed.
From Melissa Blackledge To The File, regarding affiliation to any parent Lastly, we note that none of the
U.S. Customs and Border Protection company that Emerdex might have in information placed on the record by
Data Query Results, dated August 1, Taiwan (via Emerdex Flat Roll or Ta petitioners demonstrates that there is an
2005. Thus, the evidence on the record Chen). Emerdex parent corporation in Taiwan
does not indicate that Ta Chen, Yieh Notwithstanding petitioners’ that produces or exports subject
Mau, Chain Chon, Tung Mung, Tang arguments, we find it appropriate to merchandise. The Dunn & Bradstreet
Eng, Yieh Loong, or China Steel rescind the instant review with respect report and Ta Chen’s accounts payable
exported subject merchandise to the to the Emerdex companies rather than balance relate to the Emerdex
United States during the POR. undertake an examination of those U.S. companies located in California, not
Therefore, in accordance with 19 C.F.R. companies, and their affiliates, in order companies located in Taiwan.5
§ 351.213(d)(3) and consistent with the to determine the appropriate
Department’s practice, we are 5 Additionally, the Department has obtained
preliminarily rescinding our review 3 Neither
petitioners, nor the Department, were information from Dunn & Bradstreet indicating that
with respect to Ta Chen, Yieh Mau, able to locate any company in Taiwan named Emerdex Flat Roll is a wholesaler of stainless steel
Chain Chon, Tung Mung, Tang Eng, ‘‘Emerdex’’ or with ‘‘Emerdex’’ as part of its name. products, not a producer. See the Memorandum
4 Ta Chen has been a respondent in the From Melissa Blackledge To The File regarding the
Yieh Loong, and China Steel. See, e.g., antidumping duty proceeding involving stainless Dun & Bradstreet Business Information Report
Certain Welded Carbon Steel Pipe and steel butt-weld pipe fittings from Taiwan. In the submitted by Collier Shannon Scott, PLLC on behalf
Tube from Turkey; Final Results and 2002-2003 segment of that proceeding, the of petitioners. The information the Department
Partial Rescission of Antidumping Department found Ta Chen to be affiliated to the obtained from Dunn & Bradstreet is consistent with
Emerdex companies (these companies imported the business activity code reported for Emerdex Flat
Administrative Review, 63 FR 35190, stainless steel-butt-weld pipe fittings into the Roll in the company’s 2003 U.S. income tax return
35191 (June 29, 1998); Certain Fresh Cut United States). As noted above, Ta Chen is also a and the information reported to the Department in
Flowers from Columbia; Final Results respondent in the instant administrative review. Continued

VerDate jul<14>2003 15:52 Aug 08, 2005 Jkt 205001 PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 E:\FR\FM\09AUN1.SGM 09AUN1
46140 Federal Register / Vol. 70, No. 152 / Tuesday, August 9, 2005 / Notices

Furthermore, Emerdex Flat Roll’s 2003 Department’s antidumping The record shows that PFP Taiwan,
U.S. tax return does not state that the questionnaire. Yieh Trading, Goang Jau Shing, and
company has a parent corporation in On November 10, 2004, the Chien Shing failed to cooperate to the
Taiwan. Rather, the tax return simply Department informed these companies best of their abilities, within the
notes that during the tax year, a ‘‘foreign by letter that failure to respond to the meaning of section 776(b) of the Act. As
person’’ in Taiwan owned, directly or requests for information by November noted above, PFP Taiwan, Yieh Trading,
indirectly, either 25% or more of the 17, 2004, may result in the use of AFA Goang Jau Shing, and Chien Shing failed
company’s voting shares or 25% or in determining their dumping margins. to provide any response to the
more of the total value of all classes of These four manufacturers/exporters, Department’s requests for information.
the company’s stock. The information in however, did not respond to the As a general matter, it is reasonable for
the tax return does not indicate that the Department’s November 10, 2004, letter. the Department to assume that these
‘‘foreign person’’ is a company, let alone Because these respondents failed to companies possessed the records
a company that produces or exports provide any of the necessary necessary to participate in this review;
subject merchandise. Accordingly, the information requested by the however, by not supplying the
Department is rescinding the instant Department, pursuant to section information the Department requested,
review with respect to the Emerdex 776(a)(2)(A) of the Act, we have based these companies failed to cooperate to
companies. the dumping margins for these the best of their abilities. As these
companies on the facts otherwise companies have failed to cooperate to
Use of Facts Available available. the best of their abilities, we are
Section 776(a)(2) of the Tariff Act of Use of Adverse Inferences applying an adverse inference in
1930, as amended (‘‘the Act’’), provides determining their dumping margin
Section 776(b) of the Act states that if pursuant to section 776(b) of the Act. As
that if any interested party: (A)
the Department ‘‘finds that an interested
withholds information that has been AFA, we have assigned these companies
party has failed to cooperate by not
requested by the Department, (B) fails to a dumping margin of 21.10 percent,
acting to the best of its ability to comply
provide such information by the which is the highest appropriate
with a request for information from the
deadlines for submission of the dumping margin from this or any prior
administering authority or the
information or in the form or manner segment of the instant proceeding. This
Commission, the administering
requested, (C) significantly impedes an rate was the highest petition margin and
authority or the Commission ..., in
antidumping investigation, or (D) was used as AFA in a number of the
reaching the applicable determination
provides such information but the segments in the instant proceeding. See,
under this title, may use an inference
information cannot be verified, the e.g., Stainless Steel Sheet and Strip from
that is adverse to the interests of that
Department shall, subject to section party in selecting from among the facts Taiwan; Final Results and Partial
782(d) of the Act, use facts otherwise otherwise available.’’ See also Statement Rescission of Antidumping Duty
available in making its determination. of Administrative Action (‘‘SAA’’) Administrative Review, 67 FR 6682
Section 782(d) of the Act provides accompanying the Uruguay Round (February 13, 2002) (‘‘1999–2000 AR of
that, if the Department determines that Agreements Act (URAA), H. Rep. No. SSSS from Taiwan’’). See also Stainless
a response to a request for information 103–316 at 870 (1994). Section 776(b) of Steel Sheet and Strip in Coils from
does not comply with the request, the the Act goes on to note that an adverse Taiwan: Notice of Court Decision, 67 FR
Department will inform the person inference may include reliance on 63887 (October 16, 2002).
submitting the response of the nature of information derived from (1) the The Department notes that while the
the deficiency and shall, to the extent petition; (2) a final determination in the highest dumping margin calculated
practicable, provide that person the investigation under this title; (3) any during this or any prior segment of the
opportunity to remedy or explain the previous review under section 751 or instant proceeding is 36.44 percent, as
deficiency. If that person submits determination under section 753; or (4) argued by petitioners, this margin
further information that continues to be any other information on the record. represents a combined rate applied to a
unsatisfactory, or this information is not Adverse inferences are appropriate channel transaction in the investigative
submitted within the applicable time ‘‘to ensure that the party does not obtain phase of this proceeding, and it is based
limits, the Department may, subject to a more favorable result by failing to on middleman dumping by Ta Chen.
section 782(e) of the Act, disregard all cooperate than if it had cooperated See Final Results of Redetermination
or part of the original and subsequent fully.’’ See SAA at 870; Borden, Inc. v. Pursuant to Court Remand, (Nov. 29,
responses, as appropriate. United States, 4 F. Supp. 2d 1221 (CIT 2000) affirmed by 219 F. Supp. 2d 1333,
The evidence on the record of this 1998); Mannesmannrohren–Werke AG v. 1345 (CIT 2002), aff’d 354 F. 3d 1371,
review establishes that, pursuant to United States, 77 F. Supp. 2d 1302 (CIT 1382 (Fed. Cir. 2004). Where
section 776(a)(2)(A) of the Act, the use 1999). The Court of Appeals for the circumstances indicate that a particular
of total facts available is warranted in Federal Circuit (‘‘CAFC’’), in Nippon dumping margin is not appropriate as
determining the dumping margin for Steel Corporation v. United States, 337 AFA, the Department will disregard the
PFP Taiwan, Yieh Trading, Goang Jau F.3d 1373, 1380 (Fed. Cir. 2003), margin and determine another more
Shing, and Chien Shing, because these provided an explanation of the ‘‘failure appropriate one as facts available. See
companies failed to provide requested to act to the best of its ability’’ standard, Fresh Cut Flowers from Mexico; Final
information. Specifically, these holding that the Department need not Results of Antidumping Duty
companies failed to respond to the show intentional conduct existed on the Administrative Review, 61 FR 6812,
part of the respondent, but merely that 6814 (February 22, 1996) (where the
the 2002-2003 administrative review of stainless a ‘‘failure to cooperate to the best of a Department disregarded the highest
steel butt-weld pipe fittings from Taiwan. See Ta respondent’s ability’’ existed, i.e., dumping margin for use as AFA because
Chen’s January 23, 2004, supplemental information was not provided ‘‘under the margin was based on another
questionnaire response (at B-2) from the stainless
steel butt-weld pipe fittings case (on November 5,
circumstances in which it is reasonable company’s uncharacteristic business
2004, at Enclosure 6, petitioners placed this page to conclude that less than full expense, resulting in an unusually high
on the record of the instant review). cooperation has been shown.’’ Id. dumping margin). Because a dumping

VerDate jul<14>2003 15:52 Aug 08, 2005 Jkt 205001 PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 E:\FR\FM\09AUN1.SGM 09AUN1
Federal Register / Vol. 70, No. 152 / Tuesday, August 9, 2005 / Notices 46141

margin based on middleman dumping margin, the Department considered agent relationship was not valid during
would be inappropriate, given that the whether a margin derived from the POR. See Stainless Steel Sheet and
record does not indicate that any of PFP middleman dumping was relevant to Strip in Coils from Taiwan: Final
Taiwan’s, Yieh Trading’s, Goang Jau PFP Taiwan’s, Yieh Trading’s, Goang Results and Partial Rescission of
Shing’s, and Chien Shing’s exports to Jau Shing’s, and Chien Shing’s Antidumping Duty Administrative
the United States during the POR commercial experience, and determined Review, 67 FR 6682 (February 13, 2002)
involved a middleman, the Department the use of this margin was and the accompanying Issues and
has, consistent with previous reviews, inappropriate. The Department has Decision Memorandum at Comment 23
continued to use as AFA the highest determined that there is no evidence on (upheld by CIT in Chia Far Industrial
dumping margin from any segment of the record of this case, however, which Factory Co. Ltd. v. United States, et al.,
the proceeding for a producer’s direct would render the 21.10 percent 343 F. Supp. 2d 1344, 1356 (August 2,
exports to the United States, without dumping margin irrelevant. Thus, we 2004)). The Department has continued
middleman dumping, which is 21.10 find that the rate of 21.10 percent is to treat Chia Far and Lucky Medsup as
percent. sufficiently corroborated for purposes of affiliated parties throughout this
Section 776(c) of the Act requires that the instant administrative review. proceeding.
the Department, to the extent In the instant administrative review,
practicable, corroborate secondary Affiliation
however, Chia Far contends that it is no
information from independent sources YUSCO longer affiliated with Lucky Medsup
that are reasonably at its disposal. because: (1) there is no cross–ownership
Secondary information is defined as During the course of this
administrative review, petitioners have between Chia Far and Lucky Medsup
‘‘{i}nformation derived from the and no sharing of officers or directors,
petition that gave rise to the argued that YUSCO is under common
control with certain companies, and (2) Lucky Medsup’s owner operates
investigation or review, the final independently of Chia Far as a
determination concerning the subject thus it is affiliated with these
companies. Specifically, petitioners middleman, (3) Lucky Medsup’s
merchandise, or any previous review transactions with Chia Far are at arm’s
under section 751 concerning the contend that through direct and indirect
interests and Board of Director positions length, (4) there are no exclusive
subject merchandise.’’ See SAA at 870. distribution contracts between Lucky
The SAA clarifies that ‘‘corroborate’’ associated with YUSCO’s Chairman, Mr.
Lin, YUSCO is affiliated with a number Medsup and Chia Far (the one that
means that the Department will satisfy existed in 1994, was terminated in
itself that the secondary information to of companies, including Yieh Loong and
China Steel. As has been the case in 1995), and (5) Lucky Medsup is not
be used has probative value. See SAA at
prior segments of this proceeding, we obligated to sell Chia Far’s merchandise
870. As noted in Tapered Roller
find that the facts on the record do not and Chia Far is not obligated to sell
Bearings, Four Inches or Less in Outside
demonstrate that YUSCO is affiliated through Lucky Medsup in the United
Diameter, and Components Thereof,
with Yieh Loong or China Steel. Nor do States.
from Japan; Preliminary Results of
Antidumping Duty Administrative we conclude that the facts support a We, however, find the fact pattern in
Reviews and Partial Termination of finding that YUSCO is affiliated with the instant review mirrors that which
Administrative Reviews, 61 FR 57391, any of the other companies identified by existed when the Department found the
57392 (November 6, 1996), to petitioners. Because our discussion of parties to be affiliated. First and
corroborate secondary information, the this issue necessitates the use of foremost, Chia Far could not provide
Department will, to the extent business proprietary information, we any documents in response to the
practicable, examine the reliability and have addressed the issue in the Department’s request that it demonstrate
relevance of the information. memorandum to Barbara E. Tillman, that the agency agreement was
The rate of 21.10 percent constitutes Acting Deputy Assistant Secretary for terminated and the principal–agent
secondary information. The Department Import Administration, covering the relationship no longer exists. See Chia
corroborated the information used to subject of affiliation. Far’s March 25, 2002, supplemental
establish the 21.10 percent rate in the questionnaire response at page 1.
Chia Far Furthermore, Chia Far’s degree of
less than fair value (‘‘LTFV’’)
investigation in this proceeding, finding During the first administrative review involvement in Lucky Medsup’s U.S.
the information to be both reliable and in this proceeding, the Department sales is similar to that found in prior
relevant. See Notice of Final found Chia Far and its U.S. reseller, reviews. Specifically, Chia Far played a
Determination of Sales at Less Than Lucky Medsup Inc. (‘‘Lucky Medsup’’), role in the sales negotiation process
Fair Value: Stainless Steel Sheet and to be affiliated by way of a principal– with the end–customer (Chia Far was
Strip in Coils from Taiwan, 64 FR agency relationship. The Department informed of the identity of the end–
30592, 30592 (June 8, 1999) (‘‘Final primarily based its finding on: (1) a customers and the sales terms that they
Determination’’); see also 1999–2000 AR document evidencing the existence of a had requested before it set its price to
of SSSS from Taiwan, 67 FR 6682, 6684 principal–agent relationship, (2) Chia Luck Medsup), Lucky Medsup’s sales
and accompanying Issues and Decision Far’s degree of involvement in sales order confirmation identifies Chia Far as
Memorandum at Comment 28. Nothing between Lucky Medsup and its the manufacturer, and Chia Far shipped
on the record of this instant customers, (3) evidence indicating Chia the merchandise directly to end–
administrative review calls into Far knew the identity of Lucky customers and provided technical
question the reliability of this rate. Medsup’s customers, and the customers assistance directly to certain end–
Furthermore, with respect to the were aware of Chia Far, (4) Lucky customers. Lastly, as was true in prior
relevancy aspect of corroboration, the Medsup’s operations as a ‘‘go–through’’ segments of this proceeding, during the.
Department will consider information who did not maintain any inventory or instant POR Lucky Medsup did not
reasonably at its disposal as to whether further manufacture products, and (5) maintain inventory or further
there are circumstances that would Chia Far’s inability to provide any manufacture SSSS. Therefore, we
render a margin not relevant. As documents to support its claim that the continue to find that Chia Far is
discussed above, in selecting this document evidencing the principal– affiliated with Lucky Medsup.

VerDate jul<14>2003 15:52 Aug 08, 2005 Jkt 205001 PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 E:\FR\FM\09AUN1.SGM 09AUN1
46142 Federal Register / Vol. 70, No. 152 / Tuesday, August 9, 2005 / Notices

Identifying Home Market Sales margin on total AFA. See petitioners’ yard, it could not prove the
Section 773 (a)(1)(B) of the Act April 14, 2005, and April 28, 2005, merchandise was exported to a third
defines NV as the price at which foreign submissions to the Department. country, and therefore, it included those
For these preliminary results, we have sales in its reported home market sales.
like product is first sold (or, in the
not rejected YUSCO’s sales databases in Although Chia Far stated that it does not
absence of a sale, offered for sale) for
favor of total AFA because information definitively know whether the SSSS in
consumption in the exporting country
on the record indicates that YUSCO question will be exported, the
(home market), in the usual commercial
knew, or should have known, the Department has preliminarily
quantities and in the ordinary course of
merchandise that it sold was for determined that, based the fact that
trade and, to the extent practicable, at
consumption in the home market based these sales were sent to a container yard
the same level of trade as the export
upon the particular facts and or placed in a container by Chia Far at
price (‘‘EP’’) or constructed export price
circumstances surrounding the sales. the request of the home market
(‘‘CEP’’). In implementing this Thus, there is information on the record customer, Chia Far should have known
provision, the CIT has found that sales that allows the Department to identify that the SSSS in question was not for
should be reported as home market sales YUSCO’s home market sales. consumption in the home market.
if the producer ‘‘knew or should have Specifically, YUSCO reported that it Therefore, the Department has
known that the merchandise {it sold} sold SSSS to a certain home market preliminarily excluded these sales from
was for home consumption based upon customer who was planning to further Chia Far’s home market sales database.
the particular facts and circumstances process the SSSS into non–subject
surrounding the sales.’’ See Tung Mung merchandise and then export the Comparison Methodology
Development Co., Ltd. & Yieh United merchandise. Further, YUSCO delivered In order to determine whether the
Steel Corp. v. United States and the merchandise to this customer at a respondents sold SSSS to the United
Allegheny Ludlum Corp., et al., Slip Op. location that had facilities to further States at prices less than NV, the
01–83 (CIT 2001); citing INA Walzlager process the SSSS into non–subject Department compared the EP and CEP
Schaeffler KG v. United States, 957 F. merchandise. YUSCO reported these of individual U.S. sales to the monthly
Supp. 251 (1997). Conversely, if the sales in its HM3 database. See YUSCO’s weighted–average NV of sales of the
producer knew or should have known April 4, 2005, supplemental foreign like product made in the
the merchandise that it sold to home questionnaire response at 11. Because ordinary course of trade. See section
market customers was not for home the record indicates that YUSCO knew 777A(d)(2) of the Act; see also section
market consumption, it should exclude at the time of sale that this merchandise 773(a)(1)(B)(i) of the Act. Section
such sales from its home market sales would be consumed in the home 771(16) of the Act defines foreign like
database. Even though a producer may market, the Department has product as merchandise that is identical
sell merchandise destined for preliminarily considered sales to this or similar to subject merchandise and
exportation by a home market customer, home market customer to be home produced by the same person and in the
if that merchandise is used to produce market sales. In its HM4 database same country as the subject
non–subject merchandise in the home YUSCO reported its sales to an affiliated merchandise. Thus, we considered all
market, it is consumed in the home home market customer, who has the products covered by the scope of the
market and such sales will be ability to further process the SSSS into order, that were produced by the same
considered to be home market sales. See non–subject merchandise but did not person and in the same country as the
Final Determination of Sales at Less inform YUSCO about its plans regarding subject merchandise, and sold by
Than Fair Value: Certain Hot–Rolled possible further manufacturing prior to YUSCO and Chia Far in the comparison
Carbon Steel Flat Products, Certain exportation. YUSCO delivered these market during the POR, to be foreign
Cold–Rolled Carbon Steel Plate sales to the affiliated customer’s like products, for the purpose of
Products, Certain Corrosion–Resistant processing plant. See YUSCO’s determining appropriate product
Carbon Steel Flat Products, and Certain November 22, 2004, Sections B–C comparisons to SSSS sold in the United
Cut–to-Length Carbon Steel Plate From questionnaire response at 2, 3. States. During the POR, Chia Far sold
Korea, 58 FR 37176, 37182 (July 9, Consistent with the approach taken in subject merchandise and foreign like
1993). the prior administrative review of this product that it made from hot- and
The issue of whether respondents order, we have considered YUSCO’s cold–rolled stainless steel coils
have properly reported home market sales to an affiliated home market (products covered by the scope of the
sales has arisen in each of the prior customer delivered to the customer’s order) purchased from unaffiliated
segments of the instant proceeding. It is further processing plant to be home parties. Chia Far further processed the
also an issue in the instant market sales. hot- and cold–rolled stainless steel coils
administrative review. by performing one or more of the
Chia Far following procedures: cold–rolling,
YUSCO In its November 15, 2004, bright annealing, surface finishing/
Throughout the instant administrative questionnaire response, Chia Far stated shaping, slitting. We did not consider
review, petitioners have questioned the that it has reason to believe that some Chia Far to be the producer of the
accuracy of YUSCO’s home market sales of the home market customers to whom merchandise under review if it
database. Specifically, petitioners claim it sold SSSS during the POR may have performed insignificant processing on
that YUSCO has not properly addressed exported the merchandise. Specifically, the coils (e.g., annealing, slitting,
the very important part of the Chia Far indicated that it shipped some surface finishing). See Stainless Steel
Department’s knowledge test - of the SSSS it sold to home market Plate in Coils from Belgium: Final
consumption of YUSCO’s merchandise customers during the POR to a container Results of Antidumping Duty
in Taiwan before exportation. As a yard or placed the SSSS in an ocean Administrative Review, 69 FR 74495
result, petitioners maintain that the shipping container at the home market (December 14, 2004) and the
Department cannot rely upon the sales customer’s request. Chia Far stated that accompanying Issues and Decision
databases submitted by YUSCO and even though the merchandise was Memorandum at Comment 4 (listing
must base the company’s dumping containerized or sent to a container painting, slitting, finishing, pickling,

VerDate jul<14>2003 15:52 Aug 08, 2005 Jkt 205001 PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 E:\FR\FM\09AUN1.SGM 09AUN1
Federal Register / Vol. 70, No. 152 / Tuesday, August 9, 2005 / Notices 46143

oiling, and annealing as minor not otherwise warranted based on the applicable, foreign inland freight
processing for flat–rolled products). facts of the record, we based the price expense (from Chia Far’s plant to the
Furthermore, we did not consider Chia of the sale on EP, in accordance with port of exportation), brokerage and
Far to be the producer of the cold–rolled section 772 (a) of the Act. On the other handling expense, international ocean
products that it sold if it was not the hand, when Chia Far sold subject freight expense, marine insurance
first party to cold roll the coils. The merchandise to unaffiliated purchasers expense, container handling charges,
cold–rolling process changes the surface in the United States after importation and harbor construction fees.
quality and mechanical properties of the through its U.S. affiliate, Lucky Medsup, Additionally, we added to the starting
product and produces useful we based the price of the sale on CEP, price an amount for duty drawback
combinations of hardness, strength, in accordance with section 773(b) of the pursuant to section 772(c)(1)(B) of the
stiffness, and ductility. Further cold– Act. Although Chia Far based the date Act. We calculated CEP using packed
rolling does not appear to change the of sale for its EP and CEP transactions prices to the first unaffiliated purchaser
fundamental character of a product that on the order confirmation date, in in the United States from which we
has already been cold–rolled. Thus, we response to questions from the deducted foreign inland freight expense
considered the original party that cold– Department, Chia Far reported (from Chia Far’s plant to the port of
rolled the product to be its producer. information showing that the material exportation), brokerage and handling
The Department compared U.S. sales terms of U.S. sales changed after the expense, international ocean freight
to sales made in the comparison market order confirmation date (e.g., changes to expense, marine and inland insurance
within the contemporaneous window the ordered quantity in excess of the expense, container handling charges,
period, which extends from three allowable variation). See Chia Far’s harbor construction fees, other U.S.
months prior to the U.S. sale until two March 18, 2005, supplemental transportation expenses and U.S. duty.
months after the sale. Where there were questionnaire response at page 5 and Additionally, we added to the starting
no sales of identical merchandise made attachment C–21. See also Chia Far’s price an amount for duty drawback
in the comparison market in the December 13, 2004, supplemental pursuant to section 772(c)(1)(B) of the
ordinary course of trade, the Department questionnaire response at page 6 where Act. In accordance with section
compared U.S. sales to sales of the most Chia Far indicated the material terms of 772(d)(1) of the Act, we deducted from
similar foreign like product made in the U.S. sales can change after the initial the starting price selling expenses
ordinary course of trade. In making agreement. associated with economic activities
product comparisons, the Department Normally, the Department considers occurring in the United States,
selected identical and most similar the respondent’s invoice date as including direct and indirect selling
foreign like products based on the recorded in its business records to be expenses. Furthermore, we deducted
physical characteristics reported by the the date of sale unless a date other than from the starting price the profit
respondents in the following order of the invoice date better reflects the date allocated to expenses deducted under
importance: grade, hot- or cold–rolled, on which the company establishes the sections 772(d)(1) and (d)(2) of the Act
gauge, surface finish, metallic coating, material terms of sale. See 19 C.F.R. in accordance with sections 772(d)(3)
non–metallic coating, width, temper, § 351.401(i). Given that changes to the and 772(f) of the Act. We computed
and edge. Where there were no material terms of sale occurred after the profit by deducting from total revenue
appropriate sales of the foreign like order confirmation date, the record does realized on sales in both the U.S. and
product to compare to a U.S. sale, we not support using the reported date of comparison markets, all expenses
compared the price of the U.S. sale to sale. Therefore, we have preliminarily associated with those sales. We then
constructed value (‘‘CV’’), in accordance used invoice date as the date of sale for allocated profit to expenses incurred
with section 773(a)(4) of the Act. Chia Far’s EP and CEP transactions. with respect to U.S. economic activity,
However, consistent with the based on the ratio of total U.S. expenses
Export Price and Constructed Export
Department’s practice, where the to total expenses for both the U.S. and
Price
invoice was issued after the date of comparison markets.
The Department based the price of shipment to the first unaffiliated U.S.
each of YUSCO’s U.S. sales of subject customer, we relied upon the date of Normal Value
merchandise on EP, as defined in shipment as the date of sale. See Certain After testing home market viability,
section 772(a) of the Act, because the Cold–Rolled and Corrosion Resistant whether comparison–market sales to
merchandise was sold, prior to Carbon Steel Flat Products From Korea; affiliates were at arm’s–length prices,
importation, to unaffiliated purchasers Final Results of Antidumping Duty and whether comparison–market sales
in the United States, and CEP was not Administrative Reviews, 64 FR 12927, were at below–cost prices, we
otherwise warranted based on the facts 12935 (March 16, 1999), citing Certain calculated NV as noted in the ‘‘Price–to-
of the record. We calculated EP using Cold–Rolled and Corrosion Resistant Price Comparisons’’ and ‘‘Price–to-CV
packed prices to unaffiliated purchasers Carbon Steel Flat Products From Korea; Comparisons’’ sections of this notice.
in the United States from which we Final Results of Antidumping Duty
deducted, where applicable, inland 1. Home Market Viability
Administrative Reviews, 63 FR 13170,
freight expenses (from YUSCO’s plant to 13172–73 (March 18, 1998) (‘‘in these In accordance with section
the port of exportation), international final results we have followed the 773(a)(1)(B) of the Act, to determine
freight expenses, brokerage and Department’s methodology from the whether there was a sufficient volume
handling charges, container handling final results of the third reviews, and of sales in the home market to serve as
fees, and certification fees in accordance have based date of sale on invoice date a viable basis for calculating NV (i.e.,
with section 772(c) of the Act. from the U.S. affiliate, unless that date the aggregate volume of home market
We based the price of Chia Far’s U.S. was subsequent to the date of shipment sales of the foreign like product is
sales of subject merchandise on EP or from Korea, in which case that shipment greater than or equal to five percent of
CEP, as appropriate. Specifically, when date is the date of sale.’’). the aggregate volume of U.S. sales), we
Chia Far sold subject merchandise to We calculated EP using packed prices separately compared the aggregate
unaffiliated purchasers in the United to unaffiliated purchasers in the United volume of YUSCO’s and Chia Far’s
States prior to importation, and CEP was States from which we deducted, where home market sales of the foreign like

VerDate jul<14>2003 15:52 Aug 08, 2005 Jkt 205001 PO 00000 Frm 00012 Fmt 4703 Sfmt 4703 E:\FR\FM\09AUN1.SGM 09AUN1
46144 Federal Register / Vol. 70, No. 152 / Tuesday, August 9, 2005 / Notices

product to the aggregate volume of their suspect that during the instant POR, we did not disregard any below–cost
U.S. sales of subject merchandise. YUSCO and Chia Far sold the foreign sales of that product because the below–
Because the aggregate volume of like product in the home market at cost sales were not made in ‘‘substantial
YUSCO’s and Chia Far’s home market prices below the cost of producing the quantities.’’ Where 20 percent or more
sales of the foreign like product is merchandise. See section of a respondent’s sales of a given
greater than five percent of the aggregate 773(b)(2)(A)(ii) of the Act. As a result, product were made at prices less than
volume of their respective U.S. sales of the Department initiated a COP inquiry the COP during the POR, we determined
subject merchandise, we determined for both YUSCO and Chia Far. such sales to have been made in
that the home market is viable for each ‘‘substantial quantities’’ and within an
A. Calculation of COP
of these respondents and have used the extended period of time pursuant to
home market as the comparison market. In accordance with section 773(b)(3) sections 773(b)(2)(B) and (C) of the Act.
of the Act, for each unique foreign like In such cases, because we used POR
2. Arm’s–Length Test product sold by the respondents during average costs, we also determined, in
YUSCO reported that it made sales in the POR, we calculated a weighted– accordance with section 773(b)(2)(D) of
the home market to affiliated and average COP based on the sum of the the Act, that such sales were not made
unaffiliated end users and distributors/ respondent’s materials and fabrication at prices which would permit recovery
retailers. The Department will calculate costs, home market selling general and of all costs within a reasonable period
NV based on sales to an affiliated party administrative (‘‘SG&A’’) expenses, of time. Based on this test, we
only if it is satisfied that the prices including interest expenses, and disregarded below–cost sales. Where all
charged to the affiliated party are packing costs. We made the following sales of a specific product were at prices
comparable to the prices charged to adjustments to YUSCO’s cost data: (1) below the COP, we disregarded all sales
parties not affiliated with the producer, we increased the reported cost of inputs of that product.
i.e., the sales are at arm’s–length. See purchased from affiliated suppliers to
section 773(f)(2) of the Act and 19 C.F.R. reflect the higher of the transfer price or Price–to-Price Comparisons
§ 351.403(c). Where the home market market price as required by section Where it was appropriate to base NV
prices charged to an affiliated customer 773(f)(2) of the Act, and (2) we adjusted on prices, we used the prices at which
were, on average, found not to be arm’s– YUSCO’s reported general and the foreign like product was first sold
length prices, sales to the affiliated administrative (G&A) expense ratio to for consumption in Taiwan, in usual
customer were excluded from our exclude certain income. See Analysis commercial quantities, in the ordinary
analysis. To test whether YUSCO’s sales Memorandum for the Preliminary course of trade, and, to the extent
to affiliates were made at arm’s–length Results of Review for Stainless Steel possible, at the same level of trade
prices, the Department compared the Sheet and Strip in Coils From Taiwan (‘‘LOT’’) as the comparison EP or CEP
starting prices of sales to affiliated and Yieh United Steel Corp., Ltd. (August 1, sale.
unaffiliated customers net of all 2005) (‘‘YUSCO Preliminary Analysis We based NV on the prices of home
movement charges, direct selling Memorandum’’). See also Analysis market sales to unaffiliated customers
expenses, and packing. Pursuant to 19 Memorandum for the Preliminary and to affiliated customers to whom
C.F.R. § 351.403(c), and in accordance Results of Review for Stainless Steel sales were made at arm’s–length prices.
with the Department’s practice, when Sheet and Strip in Coils From Taiwan We excluded from our analysis home
the prices charged to affiliated parties - Chia Far Industrial Factory Co., Ltd. market sales of merchandise identified
were, on average, between 98 and 102 (August 1, 2005) (‘‘Chia Far Preliminary by the Department as having been
percent of the prices charged to Analysis Memorandum’’). manufactured by parties other than the
unaffiliated parties for merchandise respondents. Merchandise
comparable to that sold to the affiliated B. Test of Home Market Prices manufactured by parties other than the
party, we determined that the sales to In order to determine whether sales respondents was not sold in the U.S.
the affiliated party were at arm’s–length were made at prices below the COP, on market during the POR. We made price
prices. See Antidumping Proceedings: a product–specific basis we compared adjustments, where appropriate, for
Affiliated Party Sales in the Ordinary each respondent’s weighted–average physical differences in the merchandise
Course of Trade, 67 FR 69186 COPs, adjusted as noted above, to the in accordance with section
(November 15, 2002). YUSCO’s prices of its home market sales of 773(a)(6)(C)(ii) of the Act. In accordance
affiliated home market customer did not foreign like product, as required under with sections 773(a)(6)(A), (B), and (C)
pass the arm’s–length test. Therefore, section 773(b) of the Act. In accordance of the Act, where appropriate, we
we have disregarded YUSCO’s sales to with section 773(b)(1)(A) and (B) of the deducted from the starting price rebates,
its affiliated home market customer in Act, in determining whether to warranty expenses, movement expenses,
favor of that customer’s downstream disregard home market sales made at home market packing costs, credit
sales of foreign like product to its first prices less than the COP, we examined expenses and other direct selling
unaffiliated customer. whether such sales were made: (1) in expenses and added U.S. packing costs
substantial quantities within an and, for NVs compared to EPs, credit
3. Cost of Production (‘‘COP’’) Analysis
extended period of time, and (2) at expenses, and other direct selling
In the previous administrative review prices which permitted the recovery of expenses. In accordance with the
in this proceeding, the Department all costs within a reasonable period of Department’s practice, where all
determined that YUSCO and Chia Far time. We compared the COP to home contemporaneous matches to a U.S. sale
sold the foreign like product in the market sales prices, less any applicable resulted in difference–in-merchandise
home market at prices below the cost of movement charges and discounts. adjustments exceeding 20 percent of the
producing the merchandise and cost of manufacturing the U.S. product,
excluded such sales from the C. Results of the COP Test
we based NV on CV.
calculation of NV. Based on the results Pursuant to section 773(b)(2)(C) of the
of the previous administrative review, Act, where less than 20 percent of a Price–to-CV Comparisons
the Department determined that there respondent’s sales of a given product In accordance with section 773(a)(4)
are reasonable grounds to believe or were made at prices less than the COP, of the Act, we based NV on CV when

VerDate jul<14>2003 15:52 Aug 08, 2005 Jkt 205001 PO 00000 Frm 00013 Fmt 4703 Sfmt 4703 E:\FR\FM\09AUN1.SGM 09AUN1
Federal Register / Vol. 70, No. 152 / Tuesday, August 9, 2005 / Notices 46145

we were unable to compare the U.S. sale (the CEP offset provision). See Notice of types of customers, distributors and end
to a home market sale of an identical or Final Determination of Sales at Less users, through one channel of
similar product. For each unique SSSS Than Fair Value: Certain Carbon Steel distribution. Chia Far provided the same
product sold by the respondents in the Plate from South Africa, 62 FR 61731 selling functions for home market sales
United States during the POR, we (November 19, 1997). to both customer categories, such as
calculated a weighted–average CV based In determining whether separate providing technical advice, making
on the sum of the respondent’s materials LOTs exist, we obtained information freight and delivery arrangements,
and fabrication costs, SG&A expenses, from YUSCO and Chia Far regarding the processing orders, providing after–sale
including interest expenses, packing marketing stages for the reported U.S. warehousing, providing after–sale
costs, and profit. In accordance with and home market sales, including a packing services, performing warranty
section 773(e)(2)(A) of the Act, we based description of the selling activities services, and post–sale processing. See
SG&A expenses and profit on the performed by YUSCO and Chia Far for Chia Far’s September 22, 2004, Section
amounts incurred and realized by the each channel of distribution. Generally, A Questionnaire Response at Exhibit A–
respondent in connection with the if the reported LOTs are the same, the 6. Based on the similarity of the selling
production and sale of the foreign like functions and activities of the seller at functions and the fact that one channel
product, in the ordinary course of trade, each level should be similar. of distribution serviced the two types of
for consumption in Taiwan. We based Conversely, if a party reports that LOTs customers, we preliminarily determine
selling expenses on weighted–average are different for different groups of that there is one LOT in the home
actual home market direct and indirect sales, the selling functions and activities market.
selling expenses. In calculating CV, we of the seller for each group should be For the U.S. market, Chia Far reported
adjusted the reported costs as described dissimilar. that it made sales to unaffiliated
in the COP section above. YUSCO reported that it sold foreign distributors directly and through its U.S.
like product in the home market affiliate, Lucky Medsup. Since the
Level of Trade through one channel of distribution and Department bases the LOT of CEP sales
In accordance with section at one LOT. See YUSCO’s November 22, on the price in the United States after
773(a)(1)(B) of the Act, to the extent 2004, Questionnaire Response at B–29. making CEP deductions under section
practicable, we determined NV based on In this channel of distribution, YUSCO 772(d) of the Act, we based the LOT of
sales in the comparison market at the provided the following selling Chia Far’s CEP sales on the price after
same LOT as the EP or CEP sales. For functions: inland freight, invoicing, deducting selling expenses.
NV, the LOT is based upon the level of packing, warranty services, and Chia Far performed the same selling
the starting–price sales in the technical advice. Because there is only functions, such as arranging freight and
comparison market or, when NV is one sales channel in the home market delivery, providing after–sale packing
based on CV, that of the sales from involving similar functions for all sales, services, processing orders, providing
which we derive SG&A expenses and we preliminarily determine that there is technical advice, and performing
profit. For EP sales, the U.S. LOT is also one LOT in the home market. warranty services for all U.S. customers,
based upon the level of the starting In addition, YUSCO reported that it including Lucky Medsup’s customers.
price sale, which is usually from the sold subject merchandise to customers See Chia Far’s September 22, 2004,
exporter to the importer. For CEP sales, in the United States through one Section A Questionnaire Response at
it is the level of the constructed sale channel of distribution and at one LOT. Exhibit A–6. Based on the similarity of
from the exporter to the importer. The See YUSCO’s November 15, 2004, selling functions to the same customer
Department adjusts CEP, pursuant to Questionnaire Response at A–14. In this type, we preliminarily determine that
section 772(d) of the Act, prior to channel of distribution, YUSCO there is one LOT in the United States.
performing the LOT analysis, as provided the following selling To determine whether NV is at a
articulated by 19 C.F.R. § 351.412. See functions: arranging freight and different LOT than the U.S. transactions,
Micron Technology, Inc. v. United delivery, invoicing, and packing. the Department compared home market
States, 243 F.3d, 1301, 1315 (Fed. Cir. YUSCO did not incur any other selling activities with those for EP and
2001). expenses in the United States for its CEP transactions. The Department made
To determine whether NV sales are at U.S. sales. Because the one sales the comparison after deducting
a different LOT than the EP or CEP channel in the United States involves expenses associated with selling
sales, we examine stages in the similar functions for all sales, we activities occurring in the United States
marketing process and selling functions preliminarily determine that there is from the CEP. See section 772(d) of the
along the chain of distribution between one LOT in the United States. Act. Chia Far engaged in the following
the producer and the unaffiliated Based upon our analysis of the selling selling activities for both the home and
customer. If the comparison–market functions performed by YUSCO, we U.S. markets: providing technical
sales are at a different LOT, and the preliminarily determine that YUSCO advice, warranty services, freight and
difference affects price comparability, as sold the foreign like product and subject delivery arrangements, packing, and
manifested in a pattern of consistent merchandise at the same LOT. Although order processing. See AQR at Exhibit A–
price differences between the sales on YUSCO provided technical advice and 6 and A–7. Chia Far’s selling activities
which NV is based and comparison– warranty services in the home market, in the home and U.S. markets differed
market sales at the LOT of the export but not in the U.S. market, these in that additional activity was required
transaction, we make a LOT adjustment services were rarely provided in the to ship subject merchandise to U.S.
under section 773(a)(7)(A) of the Act. home market and thus, there is no customers (i.e., arranging international
Finally, for CEP sales, if the NV level is significant difference between the freight and marine insurance) and it
more remote from the factory than the selling functions performed in the home engaged in post–sale processing and
CEP level and there is no basis for and U.S. markets. Therefore, we post–sale warehousing in the home
determining whether the difference in preliminarily determine that a LOT market, but not the U.S. market. While
the levels between NV and CEP affects adjustment is not warranted. Chia Far may have engaged in certain
price comparability, we adjust NV Chia Far reported that it sold subject selling activities in the home market
under section 773(A)(7)(B) of the Act merchandise in the home market to two that it did not perform in the U.S.

VerDate jul<14>2003 15:52 Aug 08, 2005 Jkt 205001 PO 00000 Frm 00014 Fmt 4703 Sfmt 4703 E:\FR\FM\09AUN1.SGM 09AUN1
46146 Federal Register / Vol. 70, No. 152 / Tuesday, August 9, 2005 / Notices

market, according to Chia Far, the instruct CBP to assess the importer– Public Comment
significance of these activities is specific rate uniformly on the entered
minimal. Based on the foregoing, the customs value of all entries of subject According to 19 C.F.R. § 351.224(b),
Department determined that the merchandise made by the importer the Department will disclose any
differences between the home and U.S. during the POR. Since YUSCO did not calculations performed in connection
market selling activities do not support report the entered value of its sales, we with the preliminary results of review
a finding that Chia Far’s sales in the calculated per–unit assessment rates for within 10 days of publicly announcing
home market were made at a different its merchandise by aggregating the the preliminary results of review. Any
LOT than U.S. sales. dumping margins calculated for all U.S. interested party may request a hearing
In its questionnaire response, Chia Far sales to each importer and dividing this within 30 days of publication of this
requested a CEP offset (noting that there amount by the total quantity of those notice. See 19 C.F.R. § 351.310(c). If
is only one LOT in the home market). sales. To determine whether the per– requested, a hearing will be held 44
See AQR at A–14. The Department will days after the date of publication of this
unit duty assessment rates were de
grant a CEP offset if NV is at a more notice, or the first workday thereafter.
minimis (i.e., less than 0.50 percent ad
advanced LOT than the CEP Interested parties are invited to
valorem), in accordance with the
transactions and there is no basis for comment on the preliminary results.
requirement set forth in 19 C.F.R.
determining whether the difference in The Department will consider case
the levels between NV and CEP affects § 351.106(c)(2), we calculated importer–
specific ad valorem ratios based on the briefs filed by interested parties within
price comparability (e.g., a LOT 30 days after the date of publication of
adjustment is not possible because there export prices. For the respondents
receiving dumping margins based upon this notice. Also, interested parties may
is only one LOT in the home market).
AFA, the Department will instruct CBP file rebuttal briefs, limited to issues
Here, the Department has not found the
to liquidate entries according to the raised in case briefs. The Department
NV LOT to be more advanced than the
CEP LOT and thus, it has not granted AFA ad valorem rate. The Department will consider rebuttal briefs filed not
Chia Far a CEP offset. will issue appropriate appraisement later than five days after the time limit
instructions directly to CBP within 15 for filing case briefs. Parties who submit
Currency Conversion days of publication of the final results arguments are requested to submit with
Pursuant to section 773A(a) of the of review. each argument (1) a statement of the
Act, we converted amounts expressed in issue, (2) a brief summary of the
foreign currencies into U.S. dollar Cash Deposit Rates argument, and (3) a table of authorities.
amounts based on the exchange rates in The following cash deposit Further, we request that parties
effect on the dates of the U.S. sales, as requirements will be effective for all submitting written comments provide
certified by the Federal Reserve Bank. shipments of the subject merchandise the Department with a diskette
Preliminary Results of Review entered, or withdrawn from warehouse, containing the public version of those
for consumption on or after the comments. Unless the deadline is
As a result of this review, we extended pursuant to section
preliminarily determine that the publication date of the final results of
this administrative review, as provided 751(a)(3)(A) of the Act, the Department
following weighted–average dumping will issue the final results of this
margins exist for the period July 1, 2003, by section 751(a)(1) of the Act: (1) the
cash deposit rate for each of the administrative review, including the
through June 30, 2004:
reviewed companies will be the rate results of our analysis of the issues
Weighted–Average listed in the final results of this review raised by the parties in their comments,
Manufacturer/Exporter/ within 120 days of publication of the
Margin (except if the rate for a particular
Reseller (percentage) company is de minimis, i.e., less than preliminary results. The assessment of
0.5 percent, no cash deposit will be antidumping duties on entries of
Yieh United Steel Cor-
poration (‘‘YUSCO’’) .. 0.00 required for that company), (2) for merchandise covered by this review and
Chia Far Industrial Fac- previously reviewed or investigated future deposits of estimated duties shall
tory Co., Ltd. (‘‘Chia companies not listed above, the cash be based on the final results of this
Far’’) .......................... 1.37 deposit rate will continue to be the review.
Goang Jau Shing Enter- company–specific rate published for the
prise Co., Ltd. ........... 21.10 Notification to Importers
most recent review period, (3) if the
PFP Taiwan Co., Ltd. ... 21.10
Yieh Trading Corpora- exporter is not a firm covered in this This notice also serves as a
tion ............................ 21.10 review, a prior review, or the less–than- preliminary reminder to importers of
Chien Shing Stainless fair–value (LTFV) investigation, but the their responsibility under 19 C.F.R.
Steel Company Ltd. .. 21.10 manufacturer is, the cash deposit rate § 351.402(f)(2) to file a certificate
will be the rate established for the most regarding the reimbursement of
Assessment Rates recent period for the manufacturer of antidumping duties prior to liquidation
Upon completion of this the subject merchandise, and (4) the of the relevant entries during this
administrative review, the Department cash deposit rate for all other review period. Failure to comply with
shall determine, and CBP shall assess, manufacturers or exporters will this requirement could result in the
antidumping duties on all appropriate continue to be 12.61 percent, the ‘‘all Secretary’s presumption that
entries. In accordance with 19 C.F.R. others’’ rate established in the LTFV reimbursement of antidumping duties
§ 351.212(b)(1), where possible, the investigation. See Final Determination, occurred and the subsequent assessment
Department calculated importer– 64 FR 30592. These required cash of double antidumping duties.
specific assessment rates for deposit rates, when imposed, shall
We are issuing and publishing this
merchandise subject to this review. remain in effect until publication of the
notice in accordance with sections
Where the importer–specific assessment final results of the next administrative
751(a)(1) and 777(i)(1) of the Act.
rate is above de minimis, we will review.

VerDate jul<14>2003 15:52 Aug 08, 2005 Jkt 205001 PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 E:\FR\FM\09AUN1.SGM 09AUN1
Federal Register / Vol. 70, No. 152 / Tuesday, August 9, 2005 / Notices 46147

Dated: August 1, 2005. • To develop metrics for the Policy, (202) 606–6930, or by e-mail at
Joseph A. Spetrini, effectiveness of SA tools. ABorgstrom@cns.gov. Individuals who
Acting Assistant Secretary for Import The SA Metrics Project surveys use a telecommunications device for the
Administration. current SA tools and develops a deaf (TTY–TDD) may call (202) 565–
[FR Doc. E5–4306 Filed 8–8–05; 8:45 am] classification scheme, grouping SA tools 2799 between 8:30 a.m. and 5 p.m.
(Billing Code: 3510–DS–S) with similar functionality or capability. eastern time, Monday through Friday.
A set of metrics and tests are developed ADDRESSES: Comments may be
for each tool class. Source/object code submitted, identified by the title of the
DEPARTMENT OF COMMERCE vulnerability scanners are an example of information collection activity, to (1)
one possible class. A series of Corporation for National and
National Institute of Standards and Workshops will be used to: Community Service, and (2) the Office
Technology • Validate the tool classes. of Information and Regulatory Affairs.
• Establish priorities for the order in Please send comments to:
Notice of Workshop To Participate in which SA tool classes are tested. 1. Corporation for National and
the Development of Software • Help determine the required and Community Service, Attn: Amy
Assurance Metrics optional functionality for each class of Borgstrom, Associate Director of Policy
AGENCY: National Institute of Standards SA tools. for AmeriCorps, by any of the following
and Technology, Commerce. After a tool class is selected, two methods within 30 days from the
ACTION: Notice of workshop. requirements, metrics, and tests for date of publication in this Federal
these functionalities are developed. Register:
SUMMARY: The National Institute of Classification and testing activities can (a) By fax to: (202) 606–3476,
Standards and Technology (NIST) proceed simultaneously. As a result, a Attention: Amy Borgstrom, Associate
announces the first in a series of draft specification and test methodology Director of Policy for AmeriCorps; and
planned workshops being held in for the highest priority tool class is (b) Electronically by e-mail to:
support of NIST’s Software Assurance developed. Further information on the ABorgstrom@cns.gov; and
Metrics and Tool Evaluation (SAMATE) project, including the Project Plan, may 2. Office of Information and
project. NIST is working with industry, be found at the Project’s Web site Regulatory Affairs, Attn: Ms. Katherine
academia, and users: http://samate.nist.gov/ and on other SA Astrich, OMB Desk Officer for the
• To identify deficiencies in software forums. Corporation for National and
assurance (SA) methods and tools Community Service, by any of the
Dated: August 3, 2005. following two methods within 30 days
• To develop metrics for the
Matthew Heyman, from the date of publication in this
effectiveness of SA tools.
NIST invites parties interested in Chief of Staff. Federal Register:
these issues to contribute to the [FR Doc. 05–15724 Filed 8–8–05; 8:45 am] (a) By fax to: (202) 395–6974,
specification of such metrics and to the BILLING CODE 3510–13–P Attention: Ms. Katherine Astrich, OMB
development of reference data sets Desk Officer for the Corporation for
capable of testing the effectiveness of National and Community Service; and
SA tools. These reference data sets, (b) Electronically by e-mail to:
CORPORATION FOR NATIONAL AND
when used during an SA tool’s Katherine_T._Astrich@omb.eop.gov.
COMMUNITY SERVICE
development, can aid in building a SUPPLEMENTARY INFORMATION: The OMB
correct implementation with regard to Information Collection; Submission for is particularly interested in comments
these metrics. OMB Emergency Review, Comment which:
The first workshop ‘‘Defining the Request • Evaluate whether the proposed
State of the Art in Software Security collection of information is necessary
Tools’’ is being held at NIST AGENCY: Corporation for National and for the proper performance of the
Gaithersburg August 10 and 11. Future Community Service. functions of the Corporation, including
Workshops will be announced on the ACTION: Notice. whether the information will have
Project’s Web site http:// practical utility;
SUMMARY: The Corporation for National • Evaluate the accuracy of the
samate.nist.gov/ and on other SA
and Community Service (hereinafter the agency’s estimate of the burden of the
forums.
‘‘Corporation’’), has submitted a public proposed collection of information,
DATES: The first workshop is being held information collection request (ICR)
at NIST Gaithersburg August 10, 9 a.m. including the validity of the
entitled AmeriCorps Application methodology and assumptions used;
to 5 p.m. and August 11, 2005, 9 a.m. Instructions: State Competitive, State • Propose ways to enhance the
to 1 p.m. Education Award, National Direct, quality, utility, and clarity of the
FOR FURTHER INFORMATION CONTACT: For National Direct Education Award, information to be collected; and
further information, you may visit the National Professional Corps, Indian • Propose ways to minimize the
Software Assurance Metrics Project Tribes, States and Territories without burden of the collection of information
Website at http://samate.nist.gov/. In Commissions, and National Planning, to on those who are to respond, including
addition, you may telephone Dr. Paul E. the Office of Management and Budget through the use of appropriate
Black at (301) 975–4794, or by e-mail at: (OMB) for review and approval in automated, electronic, mechanical, or
paul.black@nist.gov. accordance with the Paperwork other technological collection
SUPPLEMENTARY INFORMATION: In support Reduction Act of 1995, Pub. L. 104–13, techniques or other forms of information
of its Software Assurance Metrics and (44 U.S.C. Chapter 35). A copy of this technology, e.g., permitting electronic
Tool Evaluation (SAMATE) project, ICR, with applicable supporting submissions of responses.
NIST is working with industry, documentation, may be obtained by
academia, and users: contacting the Corporation for National Comments
• To identify deficiencies in software and Community Service, AmeriCorps, Description: Since the President’s Call
assurance (SA) methods and tools Amy Borgstrom, Associate Director of to Service, many Americans have

VerDate jul<14>2003 15:52 Aug 08, 2005 Jkt 205001 PO 00000 Frm 00016 Fmt 4703 Sfmt 4703 E:\FR\FM\09AUN1.SGM 09AUN1

You might also like