[Federal Register Volume 61, Number 135 (Friday, July 12, 1996)]
[Notices]
[Page 36706]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17805]


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DEPARTMENT OF COMMERCE

International Trade Administration
[C-412-815]


Notice of Court Decision: Certain Cut-to-Length Carbon Steel 
Plate from the United Kingdom

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

ACTION: Notice of Court Decision.

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SUMMARY: On June 4, 1996, the United States Court of International 
Trade (CIT) affirmed the remand determination made by the Department of 
Commerce (the Department) which used company-specific average useful 
life of renewable physical assets as the time period over which to 
allocate benefits from nonrecurring subsidies. British Steel Plc. et 
al. v. United States, Slip Op. 96-88 (British Steel III). In so doing, 
the Court rejected the Department's use of the U.S. Internal Revenue 
Service's Class Life Asset Depreciation Range System (the IRS tax 
tables) for allocating benefits as set forth in the ``Allocation 
Period'' section of its General Issues Appendix, which is appended to 
the Final Affirmative Countervailing Duty Determination: Certain Steel 
Products from Austria, 58 FR 37217, 37227 (July 9, 1993).

EFFECTIVE DATE: July 12, 1996.

FOR FURTHER INFORMATION CONTACT: Roy A. Malmrose, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 
20230; telephone: (202) 482-5414.

SUPPLEMENTARY INFORMATION: In its Final Affirmative Countervailing Duty 
Determination; Certain Steel Products From the United Kingdom, 58 FR 
37393 (July 9, 1993), the Department allocated benefits from 
nonrecurring subsidies, such as grants and equity, over the average 
useful life of renewable physical assets, as set out in the IRS tax 
tables. The Department's reasoning was fully set forth in the General 
Issues Appendix.
    On February 9, 1995, the CIT held that the Department's use of the 
IRS tax tables was unlawful because the Department did not adequately 
consider whether and to what extent the 15-year period from the IRS tax 
tables was reasonable based on the commercial and competitive benefits 
received by the firms under investigation. British Steel plc et al. v. 
United States, 879 F. Supp. 1254. In accordance with the CIT's 
instructions, the Department reexamined the allocation period in 
question. The Department found that an allocation methodology based 
upon the average useful life of assets (AUL) specific to each company 
was the most reasonable methodology that complied with the instructions 
of the Court. On June 4, 1996, the CIT affirmed the Department's remand 
determination. British Steel III.
    In its decision in Timken Co. v. United States, 893 F.2d 337 (Fed. 
Cir. 1990), the United States Court of Appeals for the Federal Circuit 
held that, pursuant to 19 U.S.C. section 1516a(e), the Department must 
publish a notice of a court decision which is not ``in harmony'' with a 
Department determination, and must suspend liquidation of entries 
pending a ``conclusive'' court decision. The CIT's decision in British 
Steel III on June 4, 1996, constitutes a decision not in harmony with 
the Department's final affirmative determination. Publication of this 
notice fulfills the Timken requirement.
    Accordingly, the Department will continue to suspend liquidation 
pending the expiration of the period of appeal, or, if appealed, until 
a ``conclusive'' court decision.

    Dated: July 2, 1996.
Barbara R. Stafford,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 96-17805 Filed 7-11-96; 8:45 am]
BILLING CODE 3510-DS-P