64 FR 53994 October 5, 1999 DEPARTMENT OF COMMERCE International Trade Administration [A-412-810, C-412-811] Certain Hot-Rolled Lead and Bismuth Carbon Steel Products From the United Kingdom: Initiation and Preliminary Results of Changed- Circumstances Antidumping and Countervailing Duty Administrative Reviews AGENCY: Import Administration, International Trade Administration, Department of Commerce. ACTION: Notice of initiation and preliminary results of changed- circumstances antidumping and countervailing duty administrative reviews. ----------------------------------------------------------------------- SUMMARY: The Department of Commerce has received information sufficient to warrant initiation of a changed-circumstances administrative review of the antidumping and countervailing duty orders on hot-rolled lead and [[Page 53995]] bismuth carbon steel products from the United Kingdom. Based on this information, we preliminarily determine that Niagara LaSalle (UK) Limited is the successor-in-interest to Glynwed Metals Processing Limited for purposes of determining antidumping and countervailing duty liability. Interested parties are invited to comment on these preliminary results. EFFECTIVE DATE: October 5, 1999. FOR FURTHER INFORMATION CONTACT: Rebecca Trainor or Kate Johnson (Antidumping) or Dana Mermelstein (Countervailing), Office of AD/CVD Enforcement, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, N.W., Washington, D.C. 20230; telephone (202) 482-4007, (202) 482-4929, or (202) 482-3208, respectively. SUPPLEMENTARY INFORMATION: The Applicable Statute Unless otherwise indicated, all citations to the Tariff Act of 1930, as amended (the Act), are references to the provisions effective January 1, 1995, the effective date of the amendments made to the Act by the Uruguay Round Agreements Act (URAA). In addition, unless otherwise indicated, all citations to the Department of Commerce's (the Department's) regulations are to the regulations at 19 CFR Part 351 (April 1999). Background On March 22, 1993, the Department published in the Federal Register the antidumping duty order on certain hot-rolled lead and bismuth carbon steel products from the United Kingdom (58 FR 15324). Also, on March 22, 1993, the Department published in the Federal Register the companion countervailing duty order (58 FR 15327). On August 18, 1999, Niagara LaSalle (UK) Limited (Niagara LaSalle UK) submitted a letter stating that it is the successor-in-interest to Glynwed Metals Processing Limited (Glynwed), and requested that the Department conduct a changed-circumstances review to determine whether Niagara LaSalle UK should receive the same antidumping and countervailing duty treatment as is accorded Glynwed with respect to the subject merchandise. Niagara LaSalle UK requested that the result of the Department's changed- circumstances review be retroactive to May 21, 1999, the date of its acquisition of Glynwed. Scope of the Review The products covered by this review are hot-rolled bars and rods of nonalloy or other alloy steel, whether or not descaled, containing by weight 0.03 percent or more of lead or 0.05 percent or more of bismuth, in coils or cut lengths, and in numerous shapes and sizes. Excluded from the scope of this review are other alloy steels (as defined by the Harmonized Tariff Schedule of the United States (HTSUS) Chapter 72, note 1 (f)), except steels classified as other alloy steels by reason of containing by weight 0.4 percent or more of lead, or 0.1 percent or more of bismuth, tellurium, or selenium. Also excluded are semi- finished steels and flat-rolled products. Most of the products covered in this review are provided for under subheadings 7213.20.00.00 and 7214.30.00.00 of the HTSUS. Small quantities of these products may also enter the United States under the following HTSUS subheadings: 7213.31.30.00; 7213.31.60.00; 7213.39.00.30; 7213.39.00.60; 7213.39.00.90; 7213.91.30.00; 7213.91.45.00; 7213.91.60.00; 7213.99.00; 7214.40.00.10, 7214.40.00.30, 7214.40.00.50; 7214.50.00.10; 7214.50.00.30, 7214.50.00.50; 7214.60.00.10; 7214.60.00.30; 7214.60.00.50; 7214.91.00; 7214.99.00; 7228.30.80.00; and 7228.30.80.50. HTSUS subheadings are provided for convenience and customs purposes. The written description of the scope of this proceeding is dispositive. Initiation and Preliminary Results of Review In a letter dated August 18, 1999, Niagara LaSalle UK advised the Department that, effective May 21, 1999, it had acquired Glynwed's steelmaking businesses, including two that are involved in manufacturing leaded steel subject to the antidumping and countervailing duty orders: Dudley Port Rolling Mills (Dudley Port), and George Gadd & Company (George Gadd). According to the submission, Niagara LaSalle UK was created as a subsidiary of Niagara Corporation, for the purpose of acquiring the assets of Glynwed's steel bar businesses. Niagara Corporation, a U.S. company, also owns Niagara LaSalle Corporation, a U.S. manufacturer of cold-finished steel bar. In its submission, Niagara LaSalle UK states that it purchased Glynwed's steel bar businesses as operating business units, and that all personnel, operations and facilities remain essentially unchanged. According to Niagara LaSalle UK, the only difference is that, on May 22, 1999, George Gadd and Dudley Port were combined to form a single business unit called Gadd Dudley Port Steel (Gadd Dudley Port). Thus, in accordance with section 751(b) of the Act, the Department is initiating a changed-circumstances review to determine whether Niagara LaSalle UK is the successor-in-interest to Glynwed for purposes of determining antidumping and countervailing duty liability with respect to the subject merchandise. In making such a successor-in- interest determination, the Department examines several factors including, but not limited to, changes in: (1) management; (2) production facilities; (3) supplier relationships; and (4) customer base. See, e.g., Brass Sheet and Strip from Canada: Final Results of Antidumping Duty Administrative Review, 57 FR 20460 (May 13, 1992) (Canadian Brass). While no single or several of these factors will necessarily provide a dispositive indication, the Department will generally consider the new company to be the successor to the previous company if its resulting operation is not materially dissimilar to that of its predecessor. See, e.g., Industrial Phosphoric Acid from Israel: Final Results of Changed Circumstances Review, 59 FR 6944 (February 14, 1994), Canadian Brass, and Fresh and Chilled Atlantic Salmon from Norway: Initiation and Preliminary Results of Changed Circumstances Antidumping Duty Administrative Review, 63 FR 50880 (September 23, 1998). Thus, if the evidence demonstrates that, with respect to the production and sale of the subject merchandise, the new company operates as the same business entity as the former company, the Department will accord the new company the same antidumping and countervailing duty treatment as its predecessor. We preliminarily determine that Niagara LaSalle UK is the successor-in-interest to Glynwed, following its acquisition of Glynwed. Niagara LaSalle UK submitted documentation supporting its claims that its acquisition of Glynwed's steelmaking businesses resulted in no significant changes in either production facilities, supplier relationships, customer base, or management. This documentation consisted of: (1) A letter from Niagara Corporation's president to all employees of the Steel Bar Businesses emphasizing the intended continuity in employment and operations; (2) the Sale of Business Agreement, stating that the business is being sold as a going concern; (3) a letter from Gadd Dudley Port to its suppliers shortly after the change in ownership, assuring suppliers of its continued business; (4) charts comparing the production facilities, billet suppliers, and customers, both before and after the acquisition; and (5) a chart comparing [[Page 53996]] the companies' management structures and employees both before and after the acquisition. These documents demonstrate that Glynwed's consolidated leaded steel bar business was purchased as a going concern, and its acquisition by Niagara LaSalle UK resulted in little or no change in production operations, facilities, personnel, supplier relationships and customer base, and that Niagara LaSalle UK's management team consists entirely of former Glynwed managers. Because Niagara LaSalle UK has presented evidence to establish a prima facie case of its successorship status, we find it appropriate to issue the preliminary results in combination with the notice of initiation in accordance with 19 CFR 351.221(c)(3)(ii). Thus, we preliminarily determine that Niagara LaSalle UK should receive the same antidumping and countervailing duty treatment with respect to certain hot-rolled lead and bismuth carbon steel products as the former Glynwed. With regard to countervailing duties, Glynwed is excluded from the countervailing duty order. Thus, if these preliminary results are adopted in our final results of this changed circumstances review, we will instruct the Customs Service to liquidate, without regard to countervailing duties, all entries entered, or withdrawn from warehouse, for consumption on or after May 21, 1999, the date of Niagara LaSalle UK's acquisition of Glynwed. With regard to antidumping duties, a cash deposit rate of 7.69 percent will be effective for all shipments of the subject merchandise entered, or withdrawn from warehouse, for consumption on or after the publication date of the final results of this changed circumstances review. Public Comment Any interested party may request a hearing within 10 days of publication of this notice. Any hearing, if requested, will be held no later than 21 days after the date of publication of this notice, or the first workday thereafter. Case briefs from interested parties may be submitted not later than 7 days after the date of publication of this notice. Rebuttal briefs, limited to the issues raised in those comments, may be filed not later than 14 days after the date of publication of this notice. All written comments shall be submitted in accordance with 19 CFR 351.303. Persons interested in attending the hearing, if one is requested, should contact the Department for the date and time of the hearing. The Department will publish the final results of this changed circumstances review, including the results of its analysis of issues raised in any written comments. We are issuing and publishing this determination and notice in accordance with sections 751(b)(1) and 777(i)(1) of the Act and section 351.216 of the Department's regulations. Dated: September 29, 1999. Robert S. LaRussa, Assistant Secretary for Import Administration. [FR Doc. 99-25873 Filed 10-4-99; 8:45 am] BILLING CODE 3510-DS-P