65 FR 41050, July 3, 2000 A-307-803 Sunset Review Public Document MEMORANDUM TO: Troy H. Cribb Acting Assistant Secretary for Import Administration FROM: Jeffrey A. May Director Office of Policy SUBJECT: Issues and Decision Memo for the Sunset Review of Gray Portland Cement and Cement Clinker From Venezuela; Final Results Summary We have analyzed the case brief of interested parties in the sunset review of the suspended antidumping duty investigation covering gray portland cement and cement clinker ("portland cement") from Venezuela. We recommend that for our final results you approve the positions we have developed in the Discussion of the Issues section of this memorandum. Below is the complete list of the issues in this sunset review for which we received substantive responses and rebuttals by parties: 1. Magnitude of the margin likely to prevail History of the Suspended Investigation: On November 4, 1991, the Department published an affirmative preliminary determination in the antidumping duty investigation on portland cement from Venezuela, in which the Department preliminarily found that weighted- average dumping margins for Cementos Caribe, C.A. ("Caribe"), Venezolana de Cementos, S.A.C.A. ("Vencemos"), and all others were 50.02 percent, 49.20 percent, and 49.26 percent, respectively. (1) On February 27, 1992, the Department published the notice of an agreement announcing its decision to suspend the antidumping duty investigation. The Department stated that (1) the proposed suspension agreement of the antidumping duty investigation (the "suspension agreement") between the Department and Caribe and Vencemos will eliminate dumping of the subject merchandise, (2) the suspension agreement can be monitored effectively, and (3) the suspension agreement is in the public interest. A final determination was not issued in this case, and the Department has not conducted an administrative review of the suspension agreement. (2) The suspension agreement remains in effect for all manufacturers/exporters of portland cement from Venezuela. Background: On February 28, 2000, the Department published the preliminary results of the sunset review of the suspended antidumping duty investigation on portland cement from Venezuela (65 FR 10467). On April 10, 2000, within the applicable deadline specified in 19 CFR 351.309(c)(1)(i), the Department received a case brief on behalf of the Committee for Fairly Traded Venezuelan Cement ("the domestic interested parties") (3). We did not receive case briefs from respondent interested parties. Discussion of the Issues In accordance with section 751(c)(1) of the Act, the Department conducted this sunset review to determine whether termination of the antidumping duty order would be likely lead to continuation or recurrence of dumping. Section 752(c) of the Act provides that, in making this determination, the Department shall consider the weighted-average dumping margins determined in the investigation and subsequent reviews and the volume of imports of the subject merchandise for the period before and the period after the issuance of the antidumping duty order or suspension agreement. In addition, section 752(c)(3) of the Act provides that the Department shall provide to the International Trade Commission ("the Commission") the magnitude of the margin of dumping likely to prevail if the order or suspension agreement is revoked. Magnitude of the Margin Likely to Prevail Interested Party Comments Comment 1: In their case brief, the domestic interested parties generally agree with the Department's preliminary determination; nonetheless, they suggest that the margins the Department has preliminarily determined to provide to the Commission represent only the minimum margins that are supported by evidence. The domestic interested parties contend that, therefore, the Department would have been justified to find higher margins based on information available to the Department in making its preliminary determination, and that the Department "would be warranted in reporting" such higher margins to the Commission. (See the domestic interested parties' April 10, 2000, case brief at 1 and 6-7.) Department's Position: In the Sunset Policy Bulletin, the Department stated that it will normally provide to the Commission the margin that was determined in the final determination in the original investigation. In addition, we stated that, where the Department did not issue a final determination because the investigation was suspended and continuation was not requested, we may use the margin that was determined in the preliminary determination in the original investigation. Further, for companies not specifically investigated, or for companies that did not begin shipping until after the order was issued, the Department normally will provide a margin based on the all-others rate from the investigation. (See section II.B.1 of the Sunset Policy Bulletin.) Exceptions to this policy include the use of a more recently calculated margin, where appropriate, and consideration of duty absorption determinations. (See sections II.B.2 and 3 of the Sunset Policy Bulletin.) As we explained in the preliminary results of the sunset review, the weighted-average dumping margins in the preliminary determination of the investigation reflect Venezuelan manufacturers/exporters' behavior absent the discipline of the suspension agreement, given that, based on the facts in this case, there is no recently calculated margin or duty-absorption finding. Therefore, we determine that the margins calculated in the original investigation are probative of the behavior of Venezuelan manufacturers/exporters of the subject merchandise if the suspended investigation wereterminated. Accordingly, the Department will report to the Commission the company-specific and all-others rates from the original investigation as the margins likely to prevail if the order were revoked. Final Results of Review As a result of this review, the Department finds that termination of the suspended antidumping investigation would be likely to lead to continuation or recurrence of dumping at the following weighted-average margins: ------------------------------------------------------------------------ Manufacturer/Exporter Margin (percent) ------------------------------------------------------------------------ Vencemos -------------------------------------------- 50.02 Caribe ---------------------------------------------- 49.20 All others ------------------------------------------ 49.26 ------------------------------------------------------------------------ Recommendation Based on our analysis of the comments received, we recommend adopting all of the above positions. If these recommendations are accepted, we will publish the final results of review in the Federal Register. AGREE____ DISAGREE____ Troy H. Cribb Acting Assistant Secretary for Import Administration (Date) _________________________________________________________________________ footnotes: 1. See Notice of Preliminary Determination of Sales at Less Than Fair Value: Gray Portland Cement and Clinker From Venezuela, 56 FR 56390 (November 4, 1991). 2. Although the Ad Hoc Committeec of Florida Producers of Gray Portland Cement requested twice that the Department conduct administrative reviews, in each case, the Ad Hoc Committee withdrew its request. (See Gray Portland Cement and Clinker From Venezuela; Termination of Administrative Review, 59 FR 9187 (February 25, 1994); and Gray Portland Cement and Clinker From Venezuela; Termination of Administrative Review, 59 FR 40521 (August 9, 1994).) 3. The domestic interested parties identifies its members as follows: Florida Crushed Stone Co., Florida Rock Industries, Inc., Rinker Materials Corp., Tarmac America Inc., and Southdown, Inc. (See the domestic interested parties's September 1, 1999, substantive response, appendix B.) According to the domestic interested parties, its members account for 100 percent of domestic production capacity of cement clinker within the Florida Region. (See id.)