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REPORT OF FINDINGS
ON THE ANTI-DUMPING PROTEST AGAINST
THE IMPORTATION OF COLD ROLLED COILS/SHEETS FROM TAIWAN
(HS Hdg. Nos. 7209.15 00, 7209.16 00, 7209.17 00, 7209.18 90, 7209.25 00,
7209.26 00,
7209.27 00 and 7209.90 00) UNDER SECTION 301 OF THE TARIFF AND
CUSTOMS CODE, AS AMENDED
(Anti-Dumping Investigation No. 00-02)
(Public Version)
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24 April 2001
EXECUTIVE SUMMARY AND CONCLUSIONS
1. SUMMARY
On 28 June 1999, National Steel
Corporation filed an anti-dumping protest against the importation of Cold
Rolled Coils/Sheets from Taiwan. The law prevailing then was R.A. 7843,
otherwise known as the "Anti-Dumping Act of 1994". The preliminary
determination of this case was suspended on 17 January 2000 due to the pendency
at the Tariff Commission (TC) of an earlier case against the same product
originating from the said country of export. An affirmative determination by the
Tariff Commission of the first case will necessarily embrace the period covered
by the second case.
On 18 May 2000, pursuant to Tariff
Commission’s decision contained in the report of findings, the Secretary of
the Department of Trade and Industry (DTI) issued an order dismissing the first
anti-dumping case against Taiwan for lack of merit.
Thus, on 02 July 2000, the Secretary of
DTI formally resumed the anti-dumping investigation under the prevailing law RA
8752 otherwise known as the "Anti-Dumping Act of 1999".
The government
of Taiwan was officially notified by the Department of Trade and Industry -
Bureau of Import Services (DTI-BIS) of the anti-dumping investigation. Likewise,
the protestant, exporters, foreign producers, importers and other interested
parties were notified of the initiation. Notices to initiate said anti-dumping
investigation were published in the Manila Standard and the Philippine
Star on 07 July 2000.
On 12 December 2000, the DTI-BIS issued the results of its
preliminary determination:
* CRCs from Taiwan were
dumped into the Philippines at a margin ranging from US$ 21.62 – US$
74.37/MT or 6.63% to 26.98% of the export price. Said margins were above the
2% de minimis requirement.
* Volume of dumped
imports was 9.30% of total Philippine imports of the like product. Said volume
satisfied the 3% de minimis volume requirement.
* Dumping of Taiwan CRC
materially injured the local industry.
The DTI-BIS
preliminary investigation indicated an affirmative finding of the necessary
elements of dumping which merited the imposition of the corresponding surety
bond for the identified exporters from Taiwan, of cold rolled coils/sheets,
having a width of 600 mm or more, as exported to the Philippines within the
period of March 1998 to May 1999. Implementation of the imposition of dumping
bond was however suspended in the light of NSC’s production shutdown.
Pursuant to Section 301 of the Tariff and
Customs Code of the Philippines (TCCP), as amended, the DTI-BIS on 12 December
2000 endorsed the protest, together with its findings, to the Tariff Commission
(Commission) for formal investigation. The same was received by the Commission
on 13 December 2000.
Preliminary
Conference was held on 27 December 2000 for the purpose of exploring the
possibility of amicable settlement/price undertaking and to apprise the parties
on the schedule(s) and procedure of the public consultation, and other related
matters necessary for the speedy disposition of the case.
The parties in
attendance were the protestant NSC, importers/protestees Sonic Steel, Bacnotan
Steel Corporation, Philsteel, Puyat Steel Corporation and observers from
Wichimen Corporation, Multi-Metals Corporation and gentlemen from Taipei
Economic and Cultural Office in the Philippines.
The Commission encouraged the importers-protestees
to consolidate their respective position papers/initial memoranda for submission
to the Commission.
2. PERIOD OF INVESTIGATION
For dumping determination, the Commission
followed the POI adopted by the DTI-BIS covering the arrival of allegedly dumped
imports of CRC from Taiwan during the 15-month period from 01 March 1998 to May
31, 1999. With respect to injury, the period covered were the years 1996 to 1998
and from the months of 01 January to 31 May 1999.
3. CONCLUSIONS
3.1 On the Determination of Like Product
The DTI-BIS, in its preliminary
findings, included all shipments of CRCs in coil form from Taiwan falling
under HS Heading No 72.09 (HS Heading No.72.09 covers all cold-rolled
non-alloy steel coils and sheets, of widths of 600 mm or more, regardless of
thickness, carbon content and mechanical properties). In its formal
investigation, the Commission limited the coverage to JIS G 3141 Class
1-SPCC (for general application) which is the equivalent specification of
the domestically produced CRCs conforming to PNS 127 Class 1.
Having
examined the product under consideration and the locally manufactured
product, the Commission is satisfied that the domestically produced CRC, of
widths of 915 and 1220 mm and nominal thickness of 0.2 mm up to 1.6 mm, not
clad, plated or coated, whether annealed or unannealed, and conforming to
PNS 127 (Class 1) constitutes a "like product" to the product
under consideration, i.e., cold-rolled low carbon (0.12% max.) steel coils
and sheets conforming to JIS G 3141- SPCC, of widths of up to 1220 mm,
thickness of up to 1.35 mm and classified under HS subheading Nos. 7209.15
00, 7209.16 00, 7209.17 00, 7209.18 90, 7209.25 00, 7209.26 00, 7209.27 00
and 7209.90 00.
3.2 On Domestic Industry Support
NSC was the
largest manufacturer of CRC in the Philippines, accounting 55.53% or 357,500
MT of the total domestic capacity in 1996. As such, the protestant satisfied
the requirement of domestic industry support.
3.3 On Price Difference
3.3.1 Export Price
Estimates of export price were
based on the import entries submitted by the protestant, on file with
the Commission and verified commercial invoices of the exporters.
Export prices were adjusted to the
ex-factory level, (i.e., net of sea freight, inland freight, harbor
construction cost, commission, customs brokerage fees and other related
fees, trade promotion cost, etc.)
With respect to the other
exporters/traders who did not cooperate via submission of answers to the
questionnaire, the best information available (BIA) rule was applied to
them. In the case of Hua Ming Steel (identified trader of Sheng Yu),
Hillman Limited and Mitsubishi Motor, (identified traders of Yieh Phui),
their export prices were adjusted using their respective exporter’s/
manufacturer’s adjustment factors.
3.3.2 Normal Value
Normal value adopted for the three (3) Taiwanese exporters/manufacturers
namely; Ton Yi, Sheng Yu and Yieh Phui is the constructed normal value
(i.e., cost of production plus selling and administrative expenses plus
margin of profit). Respective domestic selling prices for
Ton Yi and Yieh Phui were not adopted because domestic sales for
specific sizes (thickness x width) during the POI were less than 5% of
its export sales to the Philippines. On the other hand, for Sheng Yu,
domestic sales transactions of Sheng Yu presented as evidence of
domestic selling prices were not adopted since these were mostly special
transaction sales, bearing very low prices which were not usually
bestowed to all domestic customers.
For Hua
Ming Steel (identified trader of Sheng Yu), Hillman Limited and
Mitsubishi Motors (identified traders of Yieh Phui), normal values
adopted were the constructed normal values of their respective
exporter/manufacturer. For other exporters/traders ( i.e., Kao Hsing,
Ornatube, Yieh Loong, DIH-Chun, Hsien-Juie, and Po-Chun), the best
information available was used i.e., constructed normal value of Sheng
Yu, being the highest constructed normal value.
Yieh
Loong’s normal value was not adopted because it was submitted during
the public hearing, which was beyond the required thirty (30) days to
respond to questionnaires. Thus, BIA was resorted to.
3.3.3 Adjusted Normal Values
Modification on the estimated
dumping margins was made as a result of the change in the constructed
normal value of Sheng Yu (deducting delivery, selling expenses and
commission having found to be part of export costs) and the inclusion of
six (6) shipments (6,758.37MT) of Hua Ming Steel which were not included
in the first estimation as contained in the staff report.
3.3.4 Dumping Margin
Except for Sheng Yu and Yieh
Phui, whose estimated dumping margin was de minimis at 1.19% and
1.66%,respectively, and Ton Yi and Hillman Limited with a negative
dumping margin at -0.17% and -3.34%, the computed dumping margins of
the rest of the identified exporters were all above de minimis (2%),
ranging from 3.84% to 45.59% of the export price.
3.4 On Negligible Volume of Dumped Imports
Dumped
imports accounted for 11.10% of the total Philippine imports. The volume
of dumped imports being above 3% is not negligible and therefore, for
purposes of Article 5.8 of the WTO Agreement on Anti-Dumping Practices,
there was no cause for termination of the investigation against Taiwan.
Note
that volume of dumped imports increased on account of inclusion of Hua
Ming Steel’s six (6) shipments aggregating to 6,758.37 MT found to be
all at dumped prices.
3.5 On the Determination of Material Injury and
Causal Linkage
3.5.1 Volume of Dumped Imports
Total
Philippine imports of CRC from Taiwan during the POI aggregated to
284,689 MT. Dumped imports (31,600 MT) constituted 11.10% of the total
Philippine CRC imports.
Dumping was significant in the 1st, 2nd
and 3rd quarter of 1988 and in the 1st quarter
of 1999, aggregating to 4,876MT, 6,493MT, 10,424MT and 4,837MT,
respectively. Relative shares were estimated at 15.43%, 20.55%, 32.99%
and 15.31%, in that order, of the total dumped imports.
The volume of dumped imports, being above 3%, was
not negligible. Therefore for purposes of Article 5.8 of the WTO
Agreement on Anti-Dumping Practices, there was no cause for
termination of the dumping investigation against Taiwan.
3.5.2 Price Effects
Price
Undercutting
The incidence or extent of price undercutting
was estimated using the monthly landed cost of dumped CRC from
Taiwan against the monthly domestic selling price of local CRC.
Undercutting was evident during the whole POI (March 1998-May
1999) as NSC’s CRC was sold at prices higher vis-à-vis the
imported counterpart ranging from 1.83% (4th quarter
1998) to 26.36% (1st quarter 1998).
Price
Depression
The incidence of price depression was evident in
the 2nd and 4th quarter of 1998. NSC’s CRC
cost of production during this period remained constant but despite
this NSC’s selling prices declined by 6.30% and 8.25%,
respectively. This resulted to a decline in EBIT by 91.22% in the 2nd
quarter of 1998 and incurring a deficit amounting to P1,408/MT in
the 4th quarter of the same year.
It was in the 4th quarter of 1998 when
NSC adopted pricing strategy of selling below cost to defend market
share.
Price
Suppression
There was no evidence of price suppression
during the POI.
3.5.3 Market Share
NSC’s market share was consistently on a
downtrend from 1996 to 1999, while share of other imports (imports
from other countries plus undumped imports from Taiwan) posted an
erratic trend, i.e., 43.97%, 49.51%,46.49% and 50.26%, during the same
period.
Dumped imports from Taiwan managed to capture a
6.43% share in the market in 1998. This caused a reduction in both
domestic industry’s and other imports’ share by 3.41% and 3.02%,
respectively. However, in the first five (5) months of 1999, other
imports dominated the market, increasing its share from 46.49% in 1998
(March-December) to 50.26%. In contrast NSC’s share decreased from
47.08% to 45.08%. Dumped imports held its share at 4.66%.
The decline in NSC’s share is attributed to
declining production, competition from dumped and undumped imports and
market contraction.
3.5.4 Production, Sales and Inventory
Production contracted from 1996 to 1998. This
dropped further to 86,000 MT in the first five (5) months of 1999. It
was in the 4th quarter of 1998 and 1st quarter
of 1999 when production declined by 34.29% and 18.84%, respectively.
In the 2nd quarter of 1999 (April-May) production volume
aggregated to 30,000 MT. The reduction in production led to a
corresponding decline in inventory levels from 57,000 MT in 1997 to
38,000 MT in 1998 and to only 18,000 MT in the first five (5) months
of 1999.
On the other hand, volume of sales dropped
consistently from 1997 up to the POI. Sales contracted by 10.17% and
7.55% in the 4th quarter of 1998 and 1st quarter
of 1999, respectively. It was in the 2nd quarter of 1999
(April-May) when sales volume reached only 38,000 MT.
Reduction in production, sales and inventory is
attributed to lack of funds (as discussed in Sec.3.3.7), the presence
of dumped imports, as well as competition from other imports.
3.5.5 Capacity Utilization
NSC's cold mill had an
annual rated capacity of 700,000 MT. Actual utilization steadily
declined from 69.57% in 1996 to 58.29% in 1997, to 37% in 1998 and to
12.29% in the first five months of 1999.
The persistent decline in NSC’s actual utilization
was due mainly to reduced sales brought about by contraction in the
market and shortage of working capital to finance raw material
procurement.
3.5.6 Cost of Production
The average cost of producing a metric ton of CRC
in 1998 was 45.78% higher than the 1997 level. The rise in cost was
attributable to the 48.48% and 37.41% increase in direct materials
(slabs) and conversion costs, respectively.
The peso depreciation, which started in the 3rd
quarter of 1997, effected an increase in the peso cost of imported
materials. This, together with limited working capital resulted in
low production levels, ultimately, translating into high cost of
production on a per unit basis.
3.5.7 Profitability
In 1997, NSC realized a P562M operating income.
Net profit came to P458M after deducting interest and other charges.
In 1998 and January-May 1999, however, the
company incurred gross losses amounting to P474M and P248M,
respectively. It was during this period that the company sold below
cost to defend its market position. With operating expenses
increasing relative to sales and sizeable interest and other
charges, net losses aggregated to P1,350M in 1998 and P654M in
January-May 1999.
3.5.8 Return on Sales
Operating income earned in 1997 led to a favorable
12.89% return on sales. On the other hand, operating losses incurred
in 1998 and the first five months of 1999 resulted in negative returns
of 15.73% and 20.36%, respectively.
3.5.9 Cash Flow
NSC’s difficulty to generate cash flow stems from
the following: (1) Additional loans and investments were hardly
forthcoming because the company was already highly leveraged (2)
Shortage of fresh funds, in addition to increasing peso cost of raw
materials and conversion cost resulted in lower production (3) Low
production and competition from imports in a contracting
market led to declining sales revenues. (4) Declining sales
revenues contributed to difficulties in generating working capital.
NSC’s working capital shortage was supported by
claims of NSC’s customers who were required prepayment for CRC orders
(validated from the customer’s sales contract) particularly on the 1st
quarter of 1999 until the time of its temporary closure on 07 November
1999. As a strategy to alleviate its shortage of working capital, to
enable it to purchase slabs, letters of credit were opened by NSC
customers (i.e., Chuayuco) as a form of advance payment for their CRC
purchases. In fact, Table I of NSC’s position paper dated 12 January
2001 stated that the 5,000 MT export sales deducted from the total sales
as payment for NSC’s slab purchases was an implied admission that NSC
sought financial assistance in its raw material (slab) procurement.
3.5.10 Investment and Ability to Raise Capital
NSC’s inability to generate investment and raise
capital was traced to the company’s internal problems which included
enormous debt and high interest cost.
In July 1998, NSC entered into a debt restructuring
agreement with its creditor banks. Despite this, the company failed to
service its loans because of poor cash flow.
NSC’s heavy debt servicing depleted its financial
resources, resulting in difficulty in sustaining operations and
eventually to the shutdown in November 1999.
3.5.11 Employment and Wages
Labor complement expanded by less than 1%, from 513 in
1997 to 517 in 1998. This contracted to 510 in the first five (5) months
of 1999, or a 1.35% drop.
3.5.12 Labor and Capital Productivity
The labor and capital productivity ratio is 1:275 and
1:14,899 in 1997, respectively. This means that for every metric ton of
CRC produced, P275 of labor and P14,899 of capital was utilized. In
1998, the relative share of labor and of capital to CRC manufacture rose
to P385 and P18,523 per metric ton, respectively. This is indicative
that CRC production is capital-intensive.
3.5.13 Factors Other Than Dumping
Competition From Normal (Undumped)
Imports
Other imports continued to improve its market
performance over the POI. It took part of the market supplied by NSC
and dumped imports, as its share grew from 46.49% (March - December
1998) to 50.26% (January – May 1999). The share of NSC contracted
from 47.08% to 45.08% in the same period, while that of dumped
imports declined from 6.43% to 4.66%.
Market Contraction
The Asian financial crisis effected, among
others, a slowdown in construction activities, a drastic reduction
in steel consumption and depressed world steel prices. Thus, NSC had
to deal with a contracting domestic market dominated by imports
whose prices were falling.
High Cost to
Produce
NSC’s average cost to produce CRC during the
POI in 1998 and 1999 was higher compared to its 1997 level. The high
cost of slabs, as a result of depreciation, contributed to the
increased cost of production and put the company at a cost
disadvantage.
Inefficient
Production of NSC
There have been numerous complaints from
customers (i.e., Bacnotan, Chuayuco and Puyat) on NSC’s quality
defects, delayed deliveries, inadequacy of supplies and failure to
deliver on sales contracts.
The problem of quality defects can be traced to
old technology and equipment automation, which in turn led to high
production cost on a per unit basis. On the other hand, delayed
deliveries, shortage of supplies and failure to deliver on sales
contracts can be attributed to lack of funds for slabs purchases.
Poor Financial
Performance
NSC's poor financial performance can be traced to
internal factors, primarily, import dependence on materials and
significant level of foreign debt. The company was susceptible to
changes in the world market prices of slabs resulting in high
production cost and relative uncompetitiveness vis-à-vis imported
CRCs. This affected sales revenues and internal generation of funds
(generation of funds from operations). Moreover, the inability to
generate sufficient funds internally puts NSC in a vulnerable
position with regard to debt servicing.
The financial crisis exacerbated the financial
position of the company. Operations were affected because the
currency depreciation raised the peso cost of importing slabs, and
consequently weakened further the ability to generate funds
internally. This impacted negatively on debt servicing which rose,
likewise because of the depreciation.
The crisis underscored a vicious cycle of
problems. The company, having difficulty raising funds internally,
had to depend on additional loans and investments to support
operations. But these were hardly forthcoming because the company
was already highly leveraged. Thus, funds to support operations and
service debt dwindled, resulting in intermittent production, to
contracting sales revenues and to further weakening of internal
funds generation.
Apart from these, the crisis brought with it a
contraction in the world demand for steel products, and a similar
contraction in local steel demand. What little production NSC could
sell in the market faced stiff competition from countries with
excess capacities, exporting CRCs to the Philippines at much lower
prices. NSC tried to defend its market share by selling below cost,
but all this achieved was to generate larger operating losses.
Thus, it is hardly surprising that the debt
restructuring effort undertaken in 1998 did little to improve the
financial position of NSC, and that the company finally shutdown its
operations in November 1999.
Foreign Currency Losses
As of 31 December 1997, the company had total
foreign currency losses of about P1.3 billion, which climbed to P1.7
billion and P1.8 billion in 1998 and 1999, respectively. The high cost
of money for the servicing of NSC's dollar-denominated loans as a
result of the peso depreciation had major adverse impact on the
company's financial position.
4. CAUSAL LINKAGE
NSC suffered injury as evidenced by declining market
share arising from low levels of production and sales, and resulting in poor
financial performance. The problem basically stemmed from high manufacturing
cost due to inefficient production technology and vulnerability to
fluctuations in the cost of imported slabs. This created a host of problems,
primarily, a limited capability to generate funds internally. NSC, during
the POI, was already highly leveraged and depended largely on internal funds
generation to service its debt and to support operations.
The financial crisis exacerbated the company's financial
condition. The crisis brought more intensive competition in the local market
because of the global steel market contraction. Countries with excess
capacities were exporting CRCs to the Philippines at low prices. Thus, NSC
was experiencing contracting market share because of the pressure brought
about by the crisis, on one hand, and the pressure of limited funds to
support operations, on the other.
The market contraction not only affected NSC's share but
that of dumped imports as well. During the POI, we see evidence that NSC was
losing market share to other imports rather than to dumped imports.
The currency depreciation that accompanied the crisis put
further pressure on the company. The peso cost of raw materials increased,
but more significantly, the peso cost of debt servicing surged.
The magnitude of injury suffered by the company cannot be
attributed to dumping from Taiwan. NSC's inability to support operations
because of its limited ability to generate funds internally compromised the
viability of the company. It severely lacked funds to bring operations to a
profitable level, and to service its mounting debt. Thus, it is hardly
surprising that the debt restructuring effort undertaken in 1998 did little
to improve the financial position of NSC and that the company finally
shutdown its operations in November 1999.
5. APPLICATION OF PROCEDURAL MATTERS UNDER R.A. 8752
(ANTI-DUMPING ACT OF 1999)
Procedural provisions of RA 8752 are applicable to the
instant anti-dumping case. In Republic vs. Court of Appeals, G.R. No. 92326,
January 24, 1992, the Court held:
"Procedural matters are governed by the law in force
when they arise, and procedural statutes are generally retroactive in that
they apply to pending proceedings and are not confined to those begun after
their enactment although, with respect to such pending proceedings, they
affect only procedural steps taken after their enactment." (205 SCRA
356).
6. DECISION
In view of the foregoing, the element of material injury
resulting from dumped imports from Taiwan not having been established, it is
ordered that the anti-dumping case against Taiwan be dismissed for lack of
merit.
INTRODUCTION
1. The Anti-Dumping Protest
On 28 June 1999, National Steel Corporation filed an
anti-dumping protest against the importation of Cold Rolled
Coils/Sheets from Taiwan, the law then prevailing was R.A. 7843
otherwise known as the "Anti-Dumping Act of 1994". The preliminary
determination of this case was suspended on 17 January 2000 due to the
pendency at the Tariff Commission (TC) of an earlier case against the same
product originating from the said country of export. The preliminary
determination was suspended because a positive determination by the Tariff
Commission of the first case will necessarily embrace the period covered by
the second case.
On 18 May 2000, pursuant to TC’s report of findings,
the Secretary of the Department of Trade and Industry (DTI) issued an order
dismissing the first anti-dumping case against Taiwan for lack of merit.
Thus, on 02 July 2000, the Secretary of DTI formally
resumed the anti-dumping investigation under the prevailing law RA 8752
otherwise known as the "Anti-Dumping Act of 1999".
The government of Taiwan was officially notified by the
Department of Trade and Industry - Bureau of Import Services (DTI-BIS) of
the anti-dumping investigation. Likewise, the protestant, exporters, foreign
producers, importers and other interested parties were notified of the
initiation. Notices to initiate said anti-dumping investigation were also
published in the Manila Standard and the Philippine Star on 07
July 2000.
On 12 December 2000, the DTI-BIS issued the results of its preliminary
determination:
 |
CRCs from Taiwan were
dumped into the Philippines at a margin ranging from US$ 21.62 – US$
74.37/MT or 6.63% to 26.98% of the export price. Said margins were above
the 2% de minimis requirement. |
|
Volume of dumped imports
was 9.30% of total Philippine imports of the like product. Said volume
satisfied the 3% de minimis volume requirement. |
|
Dumping of Taiwan CRC
materially injured the local industry. |
The DTI-BIS preliminary investigation indicated an
affirmative finding of the necessary elements of dumping which merited the
imposition of the corresponding surety bond for the identified exporters
from Taiwan of cold rolled coils/sheets having a width of 600 mm or more as
exported to the Philippines within the period of March 1998 to May 1999.
Implementation of the imposition of dumping bond was however suspended in
light of NSC’s production shutdown.
Pursuant to Section 301 of the Tariff and Customs Code of
the Philippines (TCCP), as amended, the DTI-BIS on 12 December 2000 endorsed
the protest together with its findings to the Tariff Commission (Commission)
for formal investigation. The same was received by the Commission on 13
December 2000.
2. The Investigation
2.1 Period of Investigation
For dumping determination, the Commission followed the
POI adopted by the DTI-BIS covering the arrival of allegedly dumped
imports of CRC from Taiwan during the 15-month period from 01 March 1998
to May 31, 1999. With respect to injury, the period covered were the years
1996 to 1998 and from the months of 01 January to 31 May 1999.
2.2 Notifications
In compliance with procedural requirements, notice of
the conduct of formal investigation by the Commission was published in the
Philippine Star on 22 December 2000 and The Manila Times on
23 December 2000. Individual notifications were sent on 20 December 2000
to the government of Taiwan, through its Taipei Economic and Cultural
Office (TECO) in the Philippines in Makati City, the Philippine Commercial
Attaché in Taipei, Taiwan, protestant – NSC, exporters-protestees and
importers-protestees, and other interested parties.
Generally, the contents of the notification letters
sent are: (a) formal notification of the interested parties for the
commencement of the anti-dumping investigation; (b) request for financial
data from importers and exporters and (c) invitation for the preliminary
conference.
2.3 Preliminary Conference
Preliminary Conference was held on 27 December 2000 for
the purpose of exploring the possibility of amicable settlement/price
undertaking and to apprise the parties on the schedule(s) and procedure of
the public consultation, and other related matters necessary for the
speedy disposition of the case.
The parties in attendance were the protestant NSC,
importers-protestees Sonic Steel, Bacnotan Steel Corporation, Philsteel,
Puyat Steel Corporation and observers from Wichimen Corporation,
Multi-Metals Corporation and gentlemen from Taipei Economic and Cultural
Office in the Philippines.
The Commission encouraged the importers-protestees to
consolidate their respective position papers/initial memoranda for
submission to the Commission.
On 03 January 2001, the Commission issued an order
covering the issues taken and agreed upon during the preliminary
conference, which were then given to all the interested parties. The
matters taken up were as follows:
|
Action Required |
Time Frame
|
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Submission of Initial Memoranda/Position Papers |
January 12, 2001
|
|
Ocular inspection, plant visits and verification by the Commission’s
Investigating Team |
December 27 – 2nd week of January 2001
|
|
Issuance of Staff Report |
February 01, 2001
|
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Comments of parties on the Staff Report particularly on the elements of
product comparability and price difference as these matters will be
excluded in the coverage of matters for discussion in the Public
Consultation. The findings of the Commission will be final unless
rebutted. |
February 06, 2001
|
|
Public Consultation will continue daily for five (5) days and will
commence from 9:00 AM and may extend until 5:00 PM. The Public
Consultation will focus on the aspect of material injury and causal
linkage. |
February 12-16, 2001
|
|
Submission of Principal Memoranda |
February 26, 2001
|
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Submission of comments on the Principal Memoranda |
March 03, 2001
|
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Disclosure of Essential Facts |
March 24-26, 2001
|
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Comments on the Essential Facts |
April 02, 2001
|
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Final Report/Submission to DTI Secretary |
April 12, 2001
|
Moreover, a representative of Bacnotan Steel
Corporation manifested that Bacnotan Steel Industries, Inc. be deleted as
one of the proper parties to the anti-dumping investigation to be
conducted by the Commission because they are involved in the production of
long steel products. The Presiding Officer ordered the same to be deleted.
Finally, the protestant (National Steel Corporation)
was reminded that pursuant to Section 27, last paragraph of the revised TC
IRR on dumping, non-payment of the cost of the investigation in the amount
of TEN THOUSAND PESOS (P10,00.00) within five (5) days from the notice of
billing is an indication that the Protestant is not serious in pursuing
the formal investigation and as such may cause the suspension of the
formal investigation and the running of the time for the Commission to
complete its formal investigation.
2.4 Submission of Initial Memoranda/Position Papers
2.4.1 National Steel Corporation (NSC)
Submission of NSC includes the following issues:
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CRCs and sheets
imported from Taiwan are similar or identical in sizes and
specifications to those locally produced, and are within the
capability of NSC to produce. Sheets are identical to coils in terms
of thickness and width and all other physical properties, except
length. Sheets are coils that are slit to desired lengths. |
|
NSC claims than it can
produce CRC under specifications of Japanese International Standard (JIS)
3141 SPCC sub-classified into annealed or full hard, JIS G 3141 SPCD
which is of drawing quality, American Standard (ASTM) A 366, and CRC
tailor-made to customer’s specifications. |
|
Dumping of CRC has
caused material injury to the domestic industry as evidenced by the
following: |
|
significant increase of imported CRC from Taiwan
in absolute terms in the first five months of 1999 as compared to
the total imports from the same country for the whole year of 1998.
Share of imports from Taiwan in terms of total imports increased
from 6.67% in 1996 to 13.46% in 1998, while the first five months of
1999 registered an increase of 22.48% of total Philippine imports
from January to May of 1999. |
|
significant drop in market share from 55.53% in
1996 to 49.33% in 1997 and further to 47.45% in 1998.
Despite the
contraction in the total Philippine market demand for CRC in 1998,
share of imports from Taiwan increased from 2.97% in 1996 to 7.07%
in 1998, and further to 13.01% in the first five months of 1999. |
|
cost of production increased by 45.78% from 1997
to 1998. The cost of production increased due to the decline
in the
production level. |
|
decline in domestic sales from 357,500 MT in 1996
and further to 180,000 MT in 1998. |
|
decline in profit by P 1.3billion, or a decline
of 394.98% from the 1997 net income. |
|
capacity utilization reduced from 73% in 1995 to
as low as 43% in 1998. |
2.4.2 Filipino Galvanizers Institute, Inc.
(FGI)
In compliance with the directive of the Commission, the
Filipino Galvanizers Institute, Inc., composed of ten (10) local
galvanizers namely: Bacnotan Steel, Chuayuco Steel, Group Steel, Jacinto
Steel, Luvismin Steel, Malayan Steel, Mindanao Steel, Puyat Steel, Sonic
Steel and Tower Steel, submitted their consolidated position as follows:
Issues Raised:
|
The basis of price
difference computation is misleading since the data presented in the
International Steel Review were used. These give a rough estimate of
the domestic prices. Accordingly, the only basis of home consumption
values of CRC in Taiwan should be the actual invoices issued by the
mills. |
|
NSC has no
capability to supply CRC sheets and in coils narrower than 914 mm.
Moreover, a major problem has been inconsistent quality of CRCs
supplied by the company. NSC materials fail to produce quality output
and are only limited to non-critical applications such as for
corrugated roofing sheets. |
|
Material
injury incurred by NSC is not dumping
related. Other factors such as high
production cost, non-competitive market
prices, technological obsolescence,
inadequate maintenance, inefficient
operations, etc., are some of the
weaknesses that led NSC to shutdown in
November 1999. |
2.5 Plant Visits/Verification
The Commission conducted data verification at Jacinto
Press Coat Corporation (JPCC) located at km 21 Quirino Highway, Novaliches,
Quezon City on 05 January 2001 and ocular inspection at their plant in
Sta. Rosa Marilao, Bulacan on 08 January 2001. The Commission failed to
conduct verification at Jacinto Iron and Steel Corporation since the
company ceased operations and the required data were not available.
On 20, 22 and 27 February 2001, the Commission
conducted ocular inspection and verification at Philsteel, Bacnotan Steel
Corporation and Puyat Steel Corporation and Chuayuco Steel Corporation,
respectively.
THE DOMESTIC INDUSTRY AND MARKET
1. Product Under Consideration
The domestic product is CRC in coil form, of nominal
thickness of 0.2 mm to 1.6 mm inclusive, in widths of 915 mm and 1220 mm and
conforms to the Philippine National Standard (PNS) 127 (Specification for
Cold-Rolled Steel Sheets and Strips), Class 1 (for general use application).
The domestic industry produces both unannealed (full hard (FH))
and annealed CRCs for various applications such as drums, appliances,
fabrication and for the production of galvanized or prepainted sheets. The
CRCs of thinner gauges are generally intended for galvanizing or pre-painting
applications.
2. Market Participants
2.1 Domestic Producers
Article 4.1 of the Agreement defines domestic industry as:
"Domestic producers as a whole of the like
products or to those of them whose collective output of the products
constitutes a major proportion of the total domestic production of those
products…"
* National Steel
Corporation (NSC)
Company Profile
NSC is an ISO 9002-certified manufacturer of CRC. Its
plant facilities are located within a 450 ha. lot in Camp Overton,
Suarez, Iligan City. The facilities were officially shutdown in November
of 1999. The company’s head office, originally located at NSC Bldg. 377 Gen. Gil
Puyat Ave., Makati City, was recently transferred to 88 Corporate Center
Building, Unit 2701 corner Balero and Sedeño St. Salcedo Village,
Makati City.
The company is currently under an Interim Management
Committee headed by Mr. Ibrahim Bin Bidin.
Answers to Questionnaire
The protestant provided production, financial,
import, export, sales, pricing and market information, as well as other
information related to CRC production and material injury.
Ocular Inspection
The Commission did not inspect NSC’s plant but
relied on ocular inspection reports covering previous CRC anti-dumping
cases. The plant visit report for the 04 and 05 November 1999 contains
the following information:
|
NSC has four (4) major
operating facilities, namely: (1) a hot-mill which produces HRCs and
plates from slabs; (2) a cold-mill for the production of CRC and TMBP;
(3) an electrolytic tinning line to produce tinplates; and (4) a plant
for the production of billets from steel scraps. Eighty per cent (80%)
of the hot mill’s output is consumed by the cold mill for the
production of CRC. |
|
The cold-mill facilities
consist of two (2) pickling lines, two (2) coil preparation lines, high
current density cleaning line, alkali cleaning line, recoiler line,
1-stand temper mill, 2-stand temper mill, 4-stand tandem mill, 5-stand
tandem mill, batch annealing furnace, and dehumidifier. Production
capacity is 700,000 MT a year. |
|
NSC produces CRC in
coil form, of nominal sizes ranging from 0.2 to 1.6 mm (thickness) and
915 and 1,220 mm (width). NSC’s CRC is of commercial quality and
categorized into unannealed (full hard) and annealed for roofing,
appliances, drumstock, tinplates, fabrication including welded pipes. |
Other Domestic Producers
There are two (2) other domestic producers of CRC,
namely, Steel Corp. of the Philippines (Steel Corp) and Core Steel
Pilipinas (Core Steel). No reply to the questionnaire was received from
the two companies.
2.2 Foreign Manufacturers/Exporters
2.2.1 Ton Yi Industries Corp. (Ton Yi)
The company is situated in Yung Kang City, Tainan Hsien,
Taiwan. Its product lines include tin mill blackplates, cold rolled steel
coils, tinplates, tin-free steel, round and rectangular cans, PP woven bags
and machinery and parts. Its cold rolling mill was established in 1996.
2.2.2 Sheng Yu Steel Co., Ltd. (SYSCO)
Situated in Hsiao Kang, Kaohsiung, Taiwan, SYSCO is a
listed company with its shares traded at the stock market in Taiwan. It is a
Sino-Japanese joint venture founded on 19 May 1973. Its product lines
include CRC, hot dip galvanized/galvalume steel coil and pre-painted hot dip
galvanized/galvalume steel coil. Its CRCs are manufactured in accordance
with the standards of JIS G3141, SPCC, in two (2) categories: full hard (FH)
and commercial quality (CQ).
Issue(s) Raised:
|
In its letter dated 21
December 2000, SYSCO disputed their inclusion as exporter of CRC to the
Philippines since the first anti-dumping case covering the same product was
dismissed for lack of merit. Moreover, they are concerned about the
continuance of the anti-dumping case bearing the fact that NSC has not been
operating since November 1999. The Commission in return has responded that
the second anti-dumping case is different from the first case based on the
following: |
|
The period of investigation
for the first case is January to December 1997 while the present dumping
case is March 1998 to May 1999. |
|
Non-operation of NSC does
not preclude the conduct of formal investigation by the Commission. The
protestant was still in commercial operation during the period of
investigation. NSC’s non-operation may have a bearing on the imposition of
the final definitive duty in case of positive finding. |
|
SYSCO is therefore included
as one of the exporters covered by the anti-dumping investigation. |
2.2.3 Yieh Phui Enterprise Co., Ltd. (Yieh Phui)
Established in April 1978, Yieh Phui (formerly Kuo
Chiao Enterprise Co., Ltd.) is situated in Chaio Tou Hsiang Kaohsiung
Hsien, Taiwan. It is the largest galvanized steel producer in Taiwan. Its
products include unannealed CRCs, coated galvanized steel coil, hot-dip
galvanized steel coils, 55% aluminum-zinc coated steel coils, pre-painted
galvanized steel coils, and 55% aluminum-zinc galvanized steel coils.
Issue(s) Raised:
|
The methodology
used by BIS on normal value calculation was incompatible with the
provisions of RA 8752 and the WTO Antidumping Agreement. Under the
agreement, special circumspection should be employed when the
authorities had no other choice but to resort to BIA. They asserted
that there was a misuse in the application of BIA or facts available
principle. Submissions of YP should not have been disregarded even
though they were not in the prescribed form, and the company should
have been informed that BIA was used. |
2.2.4 Other Exporters
Other exporters who did not cooperate and were
therefore governed by the provisions of Section 6.8 of the Agreement
for failure to submit responses include: Hsien-Juie International
Co., Ltd., MC Steel Trade, Ornatube Enterprises Co., Ltd., Steel
East, Pte., Ltd., Yieh Loong Ent. Co., Ltd., Po Chun Ent. Co. and
Kao Hsing Chang Iron and Steel Corp.
2.3 Importers
2.3.1 Puyat Steel Corp. (Puyat Steel)
Company Profile
Puyat Steel, founded in 1956, is a producer of
galvanized steel, pre-painted galvanized steel for roofing panels and
other steel products such as air conditioning and its parts, roofing,
materials for car parts, steel decking, lavatory, partition and fish
tanks.
In October 1998, the company inaugurated its
galvanizing plant at Rosario, Batangas City. The plant’s annual rated
capacity is 150,000 metric tons, but actual production is only 72,000
metric tons per year.
Plant Visit
The Commission conducted an ocular inspection of Puyat
Steel plant last 27 February 2001 in Rosario, Batangas. The following
information were gathered:
|
Total plant investment
is P2.0 billion. |
|
The plant is located on
a 30-hectare lot of which 15 hectares are utilized for the plant and
staff house. It is the first galvanizing plant using non-oxidizing
furnace technology at par with developed countries such as Korea,
Taiwan, Japan, US and Europe. |
|
The plant has eight (8)
roll forming machines and six (6) shearing machines. All machines and
technology assistance came from Belgium and France. |
|
The product lines are
G.I. sheets and coils under the brand name APO. Total rated capacity
is 30,000 MT per year for pre-painted iron sheets and 150,000 MT per
year for galvanized iron sheets. |
|
The major raw materials
of galvanized iron sheets are CRC and zinc. Puyat sources its CRC from
National Steel Corporation (NSC) when it was still in operation while
zinc is imported from France. Currently, CRC are imported either from
Korea, Taiwan or Japan. |
|
The plant has its own
power generator, wastewater treatment, gas supply and hydrogen supply
needed in the production process. |
Issue(s) Raised:
|
Imported CRC products
adhere to higher quality levels compared to NSC’s CRC in terms of
flatness, thickness tolerances, surface appearances, cleanliness and
mechanical properties. Thus, imported CRC are preferred and are used for
higher value added products such as colored and profiled long-span
roofing, and other applications requiring severe bending and
deformations. |
2.3.2 Jacinto Press Coat Corporation (JPCC)
Company Profile
JPCC was set up in February 1992. Its main function
is to fabricate LPG cylinder components and to press roofing
accessories, as well as to provide stamping services.
In 1994, the company undertook a new project and
developed its Drum Reconditioning Line or Steel Container Line, which
supplies reconditioned drums to oil and petrochemical customers such as
Petron, Shell and Caltex.
Plant Visit
|
The plant is located at
Sta. Rosa II, Marilao Bulacan. |
|
JPCC currently operates
on single shift, 8-hours per day. |
|
The customers include
Chemphil, Petron Corporation, Pilipinas Kao, Inc. |
|
Its raw material in the
production of drum is sourced mainly from South Korea. |
Issue(s) Raised:
|
CRC products purchased
from NSC have been found to have rust formation, particularly on the
side portion of the coils as inspected by JPCC’s Quality Control
Inspection Report dated 16 January 1999. |
2.3.2 Bacnotan Steel Corporation
Company Profile
Bacnotan Steel, a wholly-owned subsidiary of Bacnotan
Consolidated Industries, Inc., is engaged in the production of galvanized
and pre-painted GI sheets and pre-painted corrugated/ribbed sheets.
Plant Visit
The plant is located in Bo. Real, Calamba,
Laguna.
The plant consists of several production lines
situated in different locations within Bo. Real. These are the
continuous galvanizing line, which employs an alkali cleansing line, and
the color coating / pre-painting line.
Bacnotan Steel Corporation, a member of the Filipino
Galvanizers Institute (FGI), has a total installed capacity of 124,000
MT/year for galvanizing and 33,000 MT/year for pre-painting.
The major raw materials of galvanized iron
sheets/coils are CRCs (soft or annealed; full hard or unannealed) and
zinc ingots (prime western, high grade, special high grade, or
continuous galvanizing grade).
The company produces GI (galvanized iron) in sheets
and coils, and ISO 9002 and BPS certified roofing panels and accessories
under the brand name Union Duratile.
For pre-painting applications, the company uses CRCs
of thickness from 0.40 mm to 0.60 mm.
During the POI, the bulk of CRCs used by the company
were sourced from NSC.
Issues Raised
Product and delivery complaints were raised. Late
deliveries and non-compliance with given specifications were
experienced by the company specially during the months prior to NSC’s
shutdown. Product defects, such as center buckling, were also cited.
These bulges were noticeable in the finished product and affected
its quality. Bacnotan Steel Corporation has submitted product
complaints encountered within the POI. These were
substantiated/acknowledged by NSC.
2.3.3 Filipino Galvanizers Institute, Inc.
The Filipino Galvanizers Institute, Inc. (FGI) is
composed of ten (10) local galvanizers namely: Bacnotan Steel,
Chuayuco Steel, Group Steel, Jacinto Steel, Luvismin Steel, Malayan
Steel, Mindanao Steel, Puyat Steel, Sonic Steel and Tower Steel.
3. Industry Support
Article 5.4 of the Agreement states that an investigation
shall not be initiated unless the application has been made by or on behalf
of the domestic industry:
"The application shall be considered to have
been made "by or on behalf of the domestic industry" if it is
supported by those domestic producers whose collective output
constitutes more than 50 per cent of the total production of the like
product produced by that portion of the domestic industry expressing
either support for or opposition to the application. However, no
investigation shall be initiated when domestic producers expressly
supporting the application account for less than 25 per cent of total
production of the like product produced by the domestic industry."
NSC was the largest manufacturer of CRC in the
Philippines, accounting for 55.53% or 357,500 MT of the total domestic
capacity in 1996. As such, the protestant satisfied the requirement of
domestic industry support.
4. Market Shares
Table 1. NSC’s Market (In%)
|
Sources |
1996 |
1997 |
1998 |
1999
January-May
|
|
% Increase/(Decrease) |
|
|
|
|
|
Philippine Market |
|
(2.70%) |
(39.45%) |
|
|
NSC Sales |
|
(13.57%) |
(41.75%) |
|
|
Taiwan |
|
9.62% |
28.00% |
|
|
Imports from all countries except Taiwan |
|
10.96% |
(41.82%) |
|
|
Japan |
|
54.63% |
(57.21%) |
|
|
Russia |
|
25.44% |
(52.74%) |
|
|
Malaysia |
|
(29.69%) |
3.23% |
|
|
Korea |
|
(1.45%) |
57.33% |
|
|
Others |
|
2.72% |
(73.13%) |
|
|
Total Imports |
|
10.87% |
(37.21%) |
|
|
NSC Sales |
55.53% |
49.33% |
47.45% |
42.10% |
|
Imports from: |
|
|
|
|
|
Taiwan |
2.97% |
3.34% |
7.07% |
13.01% |
|
Japan |
7.74% |
12.31% |
8.70% |
5.68% |
|
Russia |
7.31% |
9.42% |
7.35% |
10.63% |
|
Malaysia |
6.25% |
4.51% |
7.70% |
4.71% |
|
Korea |
5.67% |
5.74% |
14.92% |
11.21% |
|
Others |
14.53% |
15.34% |
6.81% |
12.65% |
Source: NSC documents
Table 1 gives a breakdown of the Philippine market with NSC
as the major player in the local industry. Data shows that 1996 marked the
highest sales volume of NSC, at 357,500 MT or 55.53% share of total Philippine
market. In that year, NSC supplied more than half of the total domestic CRC
requirement of industrial users (galvanizers, drum makers and fabricators.
However, the year also marked the start of NSC’s declining sales, to 309,000
MT in 1997, 180,000 MT in 1998 and to 87,000 MT for the first five months of
1999. Thus, NSC’s share to total Philippine market contracted to 49.33% in
1997 and further to 42.10% from January to May 1999.
In contrast, the share of Philippine imports from Taiwan
started increasing from 2.97% in 1996, 3.34% in 1997, 7.07% in 1998 and 13.01%
for the period January to May of 1999.
The domestic requirement for CRC was augmented by imports
from other countries such as Korea, Japan, Malaysia and Russia. While imports
from these countries show erratic trends for 1996 to May of 1999, imports from
Taiwan steadily grew. A significant increase is observed for the first five
months of 1999, as imports for the period aggregated to 26,896.79 MT,
exceeding the 1998 import volume of 26,820.33 MT.
FINDINGS
1. On Like Product
1.1 Characteristics
1.1.1 Chemical Composition
The product under consideration conforms to the
Japanese standard, JIS G 3141 SPCC (Cold Rolled Carbon Steel
Sheets and Strips) Class 1 – SPCC (for general use).
The domestic industry, on the other hand,
produces CRC conforming to PNS 127 Class 1. PNS 127 (1988) was
adopted by the Bureau of Product Standards (BPS) using the Japanese
standard JIS G 3141-77, the American Standard for Testing and
Materials ASTM A109/M-77 (Specification for Steel Strip, Carbon,
Cold-Rolled (Metric)) and the International Standard ISO 3574-76
(Specification for Cold-Reduced Carbon Steel Sheet of Commercial and
Drawing Qualities). The requirements in PNS 127 are based mostly
from JIS G 3141-77. Under PNS 127 Class 1, the percentage chemical
composition specification is practically identical to JIS G 3141.
Table 2 - Element, (in %)
|
C |
Mn |
P |
S |
|
0.12 max |
0.50 max |
0.040 max |
0.045 max |
Source: PNS 127 (1988)
o
Mechanical Properties
The minimum tensile strength in both the Japanese
and the Philippine standard for Class 1 annealed CRC is 275 N/mm2
(28 Kgf/mm2). Both standards further state
that the tension test value does not usually apply to Class 1. In
terms of hardness, the limits in either the Rockwell or Vickers
scale are comparable for the same temper designation.
1.1.2 Physical Characteristics
a. Sizes (Dimensions)
The thickness of CRC imported from Taiwan
during the POI is between 0.17 mm to 1.35 mm, inclusive. The
thinner gauges of CRC (up to 0.38 mm) are generally intended for
galvanized and prepainted sheets, and are covered by the
mandatory standard PNS 127.
The 0.18 mm and 0.38 mm gauge thickness falls
within the 0.20 mm (+ 0.03 mm) and 0.40 mm (+
0.05 mm) nominal sizes, respectively, based on tolerances given
in PNS 127 and JIS G 3141.
NSC produces CRC in standard commercial
widths of either 915 mm (3 feet) or 1220 mm (4 feet). These
widths are based on domestic industry practice of specifying
steel sheets at 3 feet or 4 feet wide. Following the findings in
the anti-dumping investigation of CRC from Russia (A-D Inv. No.
98-01 ) and from Taiwan (A-D Inv. No. 98-01), CRCs with widths
greater than 1220 mm which are not produced by NSC are excluded
from the product coverage.
1.2 Manufacturing Methods and Technology
CRCs are produced by cold rolling (cold reduction)
HRC into the desired thickness. The general process involves cleaning of
HRC by passing through pickling tanks to remove the scale from the
hot-rolling operation, rinsing with water, and drying before subjecting
the material through a 4- or 5-stand cold mill to produce the CRC of
desired thickness.
Heat-treatment (annealing) is done to produce the
required mechanical properties of the CRC and is accomplished by using
either the continuous annealing (CA) method or batch method (BA). In the
latter method, the CRC is placed, for a certain period of time, in an
environment of inert gas contained in a bell-type electrically heated
furnace.
1.3 Uses
The domestic product and the imported CRC are
intended for the same applications, such as drums, appliances,
fabrication and for the production of galvanized or prepainted sheets.
1.4 Tariff Classification
Both protested importations and the domestic like
product fall under HS subheading Nos. 7209.15 00, 7209.16 00, 7209.17
00, 7209.18 90, 7209.25 00, 7209.26 00, 7209.27 00, and 7209.90 00.
Presented in Table 3 is the historical development of
the tariff rates for those products.
Table 3 - Historical Development of the Tariff Rates for CRC
|
P.D. 1464 |
E.O. 470(1) |
E.O. 264(2) |
E.O. 465(3) |
E.O. 276(4) |
E.O. 334(5) |
|
1978 |
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2000 |
2001-2004 |
|
20 |
20 |
20 |
20 |
15 |
10 |
10 |
10 |
7 |
7 |
7 |
3* |
3 |
(1)Effective 24 August 1991
(2)Effective 28 August 1995
(3)Effective 22 January 1998
(4)Effective 18 September 2000
(5)Effective 01 January 2001
*7% when CRC producers are able to supply at least 50% of market
requirement based on 1997 Philippine Iron and Steel Institute (PISI) data as
certified by the Board of Investments (BOI).
2. On Dumping
2.1 Export Price
Export price is the price paid or the selling price
to an importer in the Philippines of articles purchased at arms length
transaction, excluding any post exportation charges, such as, ocean
freight and overseas insurance.
Estimates of export price were based on the import
entries submitted by the protestant, on file with the Commission and the
verified commercial invoices of the exporters.
These were adjusted to the ex-factory level, (i.e.,
net of sea freight, inland freight, harbor construction cost,
commission, customs brokerage fees and other related fees, trade
promotion cost, etc.) Annex "A" presents details on
adjustments.
With respect to the other exporters/traders who did
not cooperate via submission of answers to the questionnaire, the best
information available (BIA) rule was applied to them. In the case of Hua
Ming Steel (identified trader of Sheng Yu), Hillman Limited and
Mitsubishi Motor, (identified traders of Yieh Phui), their export prices
were adjusted using their respective exporter’s/ manufacturer’s
adjustment factors.
Shown is the summary of the specific exporter’s
unadjusted and adjusted export prices during the POI:
Table 4- Specific Exporter’s Export Prices during
the POI
|
Exporter(s) |
FOB Export Prices
(US$/MT)
|
Adjusted Export Prices
(US$/MT)
|
|
Ton Yi Industries Corp. |
309-420 |
297-402 |
|
Sheng Yu Steel Co., Ltd. |
347-435 |
336-424 |
|
Yieh Phui Enterprise Co., Ltd. |
288-373 |
278-363 |
|
Hua Ming Steel |
287-308 |
276-297 |
|
Kao Hsing Chang Iron & Steel |
284-363 |
274-353 |
|
Ornatube Ent. Co., Inc. |
286-372 |
276-360 |
|
Po-Chun Ent. Co. |
306-346 |
269-333 |
|
Yieh Loong Ent. Co. |
357-377 |
347-367 |
|
Hillman Limited |
378-429 |
368-418 | |
