[Federal Register Volume 64, Number 137 (Monday, July 19, 1999)]
[Notices]
[Pages 38642-38650]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18372]


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DEPARTMENT OF COMMERCE

International Trade Administration
[A-821-809]


Suspension of Antidumping Duty Investigation: Hot-Rolled Flat-
Rolled Carbon-Quality Steel Products From the Russian Federation

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

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SUMMARY: The Department of Commerce (``the Department'') has suspended 
the antidumping duty investigation involving hot-rolled flat-rolled 
carbon-quality steel products (``hot-rolled steel'') from the Russian 
Federation (``Russia''). The basis for this action is an agreement 
between the Department and the Ministry of Trade of the Russian 
Federation (``MOT'') accounting for substantially all imports of hot-
rolled steel from Russia, wherein the MOT has agreed to restrict 
exports of hot-rolled steel from all Russian producers/exporters to the 
United States and to ensure that such exports are sold at or above the 
agreed reference price.
EFFECTIVE DATE: July 12, 1999.

FOR FURTHER INFORMATION CONTACT: Jean Kemp or Rick Johnson at (202) 
482-1131 and (202) 482-3818, respectively, Antidumping and 
Countervailing Duty Enforcement Group III, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On October 15, 1998, the Department initiated an antidumping duty 
investigation under section 732 of the Tariff Act of 1930 (``the 
Act''), as amended, to determine whether imports of hot-rolled steel 
from Russia are being or are likely to be sold in the United States at 
less than fair value (63 FR 56607 (October 22, 1998)). On November 16, 
1998, the United States International Trade Commission (``ITC'') 
notified the Department of its affirmative preliminary finding of 
threat of material injury in this case (see ITC Investigation Nos.701-
TA-384 and 731-TA-806-808). Additionally, on November 25, 1998, the ITC 
published its preliminary determination that there is a reasonable 
indication that an industry in the United States is threatened with 
material injury by reason of imports of the subject merchandise from 
Russia (63 FR 65221). On February 22, 1999, the Department 
preliminarily determined that hot-rolled steel is being, or is likely 
to be sold in the United States at less than fair value (``LTFV''), as 
provided in section 733 of the Act (64 FR 9312 (February 25, 1999)).
    The Department and the MOT initialed a proposed agreement 
suspending this investigation on February 22, 1999. On February 23, 
1999, we invited interested parties to provide written comments on the 
agreement. We received comments from petitioners (Bethlehem Steel 
Corp., Ispat Inland Inc., LTV Steel Company, Inc., National Steel 
Corp., U.S. Steel Group (a Unit of USX Corp.), California Steel 
Industries, Gallatin Steel Company, Geneva Steel, Gulf States Steel 
Inc., Ipsco Steel Inc., Steel Dynamics, Weirton Steel Corporation, and 
Independent Steelworkers Union), respondents in the investigation (JSC 
Severstal, Novolipetsk, and Magnitorgorsk) and other interested parties 
(Caterpillar Inc., Nucor Corporation, and Thyssen Inc., NA). We have 
taken these comments into account in the final version of the 
suspension agreement.
    The Department and MOT signed the final suspension agreement on 
July 12, 1999.

Scope of Investigation

    For a complete description of the scope of the investigation, see, 
Agreement Suspending the Antidumping Investigation on Hot-Rolled Flat-
Rolled Carbon Quality Steel Products from the Russian Federation, 
Appendix III, signed July 12, 1999, attached hereto.

Suspension of Investigation

    The Department consulted with the parties to the proceeding and has 
considered the comments submitted with respect to the proposed 
suspension agreement. In accordance with section 734(l) of the Act, we 
have determined that the agreement will prevent the suppression or 
undercutting of price levels of domestic products by imports of the 
merchandise under investigation (see Price Suppression Memorandum, 
dated July 12, 1999), that the agreement is in the public interest, and 
that the agreement can be monitored effectively (see Public Interest 
Memorandum, dated July 12, 1999). We find, therefore, that the criteria 
for suspension of an investigation pursuant to section 734(l) of the 
Act have been met. The terms and conditions of this agreement, signed 
July 12, 1999, are set forth in Appendix 1 to this notice.
    Pursuant to section 734(f)(2)(A) of the Act, the suspension of 
liquidation of all entries of hot-rolled steel from Russia entered, or 
withdrawn from warehouse, for consumption, as directed in our notices 
of Preliminary Determination of Sales at Less than Fair Value: Hot-
Rolled Flat-Rolled Carbon Quality Steel Products from the Russian 
Federation (64 FR 9312 (February 25, 1999)), Postponement of Final 
Determination of Antidumping Duty Investigation of Hot-Rolled Flat-
Rolled Carbon-Quality Steel From the Russian Federation (64 FR 24329 
(May 6, 1999)), and Postponement of Final Determination of Antidumping 
Duty Investigation of Hot-Rolled Flat-Rolled Carbon-Quality Steel From 
the Russian Federation (64 FR 31179 (June 10, 1999)) is hereby 
terminated. Any cash deposits on entries of hot-rolled steel from 
Russia pursuant to that suspension of liquidation shall be refunded and 
any bonds shall be released.
    This notice is published pursuant to section 734(f)(1)(A) of the 
Act.


[[Page 38643]]


    Dated: July 12, 1999.
Bernard T. Carreau,
Acting Assistant Secretary for Import Administration.

Appendix 1--Agreement Suspending the Antidumping Investigation on 
Hot-Rolled Flat-Rolled Carbon-Quality Steel Products from the 
Russian Federation

    For the purpose of encouraging free and fair trade in certain hot-
rolled flat-rolled carbon quality steel products (``Hot-Rolled Steel'') 
from the Russian Federation (``Russia''), establishing more normal 
market relations, and preventing the suppression or undercutting of 
price levels of the like product in the United States, the United 
States Department of Commerce (``DOC'') and the Ministry of Trade of 
the Russian Federation (``MOT'') of Russia enter into this suspension 
agreement (``the Agreement'').
    MOT will restrict exports of hot-rolled steel from all Russian 
producers and exporters to the United States, as provided below. DOC, 
pursuant to the U.S. antidumping law (see Appendix II), on the 
Effective Date of this Agreement, will suspend its antidumping 
investigation of Hot-Rolled Steel from Russia and instruct the U.S. 
Customs Service (``Customs'') immediately to terminate the suspension 
of liquidation and release any cash deposit or bond posted for entries 
of Hot-Rolled Steel covered by this Agreement.
    Accordingly, DOC and MOT agree as follows:

I. Definitions

    For purposes of this Agreement, the following definitions apply:
    A. ``Apparent U.S. Domestic Consumption'' means apparent U.S. 
domestic consumption determined using official statistics of the U.S. 
Bureau of the Census regarding imports and exports, and data from the 
American Iron and Steel Institute regarding domestic shipments, based 
on the methodology described in Appendix IV of this Agreement.
    B. ``Date of Export'' of Hot-Rolled Steel into the United States 
shall be the date on which MOT issued the Export License.
    C. ``Date of Sale'' means the date on which price and quantity 
become firm, e.g., the date the contract is signed or the specification 
date if the price and quantity become firm on that date, as reflected 
in Russian producers' records kept in the ordinary course of business.
    D. ``Effective Date'' of this Agreement means July 12, 1999.
    E. ``Export License'' is the document issued by MOT that serves as 
both an export limit certificate and a certificate of origin.
    F. ``Hot-Rolled Steel'' means the certain hot-rolled, flat-rolled, 
carbon quality steel products from Russia described in Appendix III.
    G. ``Indirect Exports'' means exports of Hot-Rolled Steel from 
Russia to the United States through one or more third countries, 
whether or not such exports are further processed, provided that the 
further processing does not result in a substantial transformation or a 
change in the country of origin.
    H. ``Moratorium Period'' means February 22, 1999, through December 
31, 1999.
    I. ``Party to the Proceeding'' means any producer, exporter, or 
importer of Hot-Rolled Steel, union of workers engaged in the 
production of Hot-Rolled Steel, associations of such parties, or the 
government of any country from which such merchandise is exported, that 
actively participated in the antidumping investigation, through written 
submission of factual information or written argument, as described in 
more detail in Appendix II.
    J. ``Export Limit Period'' means one of the following periods:
    Initial Export Limit Period--The Initial Export Limit Period shall 
begin on January 1, 2000, and end on December 31, 2000.
    Subsequent Export Limit Periods--The Subsequent Export Limit 
Periods shall consist of each subsequent one-year period, the first of 
which will begin the day after the Initial Export Limit Period ends and 
end one year later.
    K. ``Reference Price'' means the floor price calculated by DOC for 
sales of Hot-Rolled Steel for export to the United States, as described 
in Section III.
    L. ``United States'' means the customs territory of the United 
States of America (the 50 States, the District of Columbia and Puerto 
Rico) and foreign trade zones located within the territory of the 
United States.
    M. ``U.S. Purchaser'' means the first purchaser in the United 
States that is not affiliated with the Russian producer or exporter and 
all subsequent purchasers, from trading companies to consumers.
    N. ``Violation'' means noncompliance with the terms of this 
Agreement, whether through an act or omission, except for noncompliance 
that is inconsequential, inadvertent, or does not substantially 
frustrate the purposes of this Agreement.

II. Export Limits

    A. No Hot-Rolled Steel covered by this Agreement, whether exported 
directly or indirectly from Russia, shall be entered into the United 
States unless, when cumulated with all prior entries of Hot-Rolled 
Steel exported from Russia during the Export Limit Period in which that 
Hot-Rolled Steel was exported, it does not exceed the export limits set 
forth below.
    1. The export limit for the Moratorium Period shall be zero.
    2. The export limit for the Initial Export Limit Period (January 1, 
2000, to December 31, 2000) shall be 325,000 metric tons of Hot-Rolled 
Steel.
    3. The export limit for each subsequent Export Limit Period shall 
be as follows:

January 1, 2001, to December 31, 2001--500,000 MT
January 1, 2002, to December 31, 2002--675,000 MT
January 1, 2003, to December 31, 2003--725,000 MT

    4. The export limit for each subsequent Export Limit Period will be 
adjusted by:
    (a) First, the export limit for the previous Export Limit Period 
shall be increased by three per cent of that export limit;
    (b) Second, the number obtained under paragraph (a) shall be 
increased or decreased by the result of multiplying the export limit 
for the previous Export Limit Period by the percent change (up to three 
percent) in apparent U.S. domestic consumption of Hot-Rolled Steel 
during the most recent 12 months for which data is available at the 
time the DOC makes this calculation, compared to the previous 12 months 
(as described in Appendix IV).
    (c) Third, if MOT has elected to adopt a premium Reference Price 
for any Export Limit Period under Paragraph III.F., the export limit 
calculated pursuant to paragraphs (a) and (b) above shall be augmented 
by an additional allowance of five percent. This additional allowance 
shall apply only during the Export Limit Period in which the premium 
Reference Price applies.
    5. DOC shall determine export limits for each Subsequent Export 
Limit Period no later than 60 days prior to the beginning of that 
Export Limit Period.
    B. When Hot-Rolled Steel is imported into the United States and is 
subsequently re-exported, or re-packaged and re-exported, or further 
processed (but still covered by this Agreement) and re-exported, the 
amount re-exported shall be deducted from the amounts of exports that 
have been counted against the export limit for the Export Limit Period 
in which the re-export takes place. The deduction will be applied only 
after DOC has received, and has had the opportunity to verify,

[[Page 38644]]

evidence demonstrating the original importation, any repackaging or 
further processing, and subsequent exportation.
    C. MOT will not issue Export Licenses authorizing the exportation 
to the United States of Hot-Rolled Steel covered by this Agreement in 
any half of any Export Limit Period that exceeds 60 percent of the 
export limit for that Export Limit Period.
    D. Notwithstanding any other provision of this Agreement, up to 15 
per cent of the export limit for any Export Limit Period may be carried 
over to the Subsequent Export Limit Period and up to 15 per cent of the 
export limit for any Export Limit Period may be carried back to the 
last 60 days of the previous Export Limit Period. Any carried over or 
carried back allowance shall be counted against the export limit for 
the subsequent or previous Export Limit Period, respectively.
    E. If any Hot-Rolled Steel from Russia is entered into the United 
States during the Moratorium Period, DOC shall notify MOT of those 
entries and provide to MOT all of the information concerning those 
entries that DOC is able to disclose consistent with U.S. law. MOT 
shall respond within 15 days. If DOC determines that entries of Hot-
Rolled Steel from Russia have occurred during the Moratorium Period, 
DOC shall provide MOT with an opportunity for prompt consultations, 
which shall be completed within 60 days after DOC notifies MOT of the 
excessive entries. Once the consultations have been completed, unless 
DOC has concluded that entries did not occur during the Moratorium 
Period, DOC shall count against the export limit for the Initial Export 
Limit Period (and, if necessary, Subsequent Export Limit Period(s)) 
twice the volume of the entries during the Moratorium Period. Where a 
Russian producer or exporter was responsible for the entries during the 
Moratorium Period, MOT shall deny that producer or exporter Export 
Licenses for one year following the last date of entry. Where any other 
entity was involved with the entries, MOT shall, for one year after the 
last date of entry, deny Export Licenses for the distribution of any 
Hot-Rolled Steel involving that entity.
    F. If DOC receives information indicating that Hot-Rolled Steel 
from Russia may have entered into the United States in excess of the 
export limits established in Section II.A or below the reference price 
established in Section III.C, DOC shall notify MOT of those entries and 
provide to MOT all of the information concerning those entries that DOC 
is able to disclose consistent with U.S. law. MOT shall respond within 
15 days. If the information continues to indicate that these entries 
were in excess of the export limits or below the reference price, DOC 
shall provide MOT with an opportunity for prompt consultations, which 
shall be completed within 60 days after DOC's initial notification. 
Once the consultations have been completed, unless DOC concludes that 
the entries were not in excess of the export limits or below the 
reference price, DOC shall count against the export limit for either 
the current or subsequent Export Limit Period, as appropriate, 125 
percent of the volume of the entries in excess of the export limits or 
below the reference price. When a Russian producer or exporter was 
responsible for the entries in excess of the export limits or below the 
reference price, MOT shall deny that producer or exporter Export 
Licenses for six months following the last date of entry. When any 
other entity was involved with the entries in excess of the export 
limits or below the reference price, MOT shall, for one year after the 
last date of entry, deny Export Licenses for the distribution of any 
Hot-Rolled Steel involving that entity. The provisions of this section 
do not supercede the provisions of section IX of this Agreement if DOC 
determines that the entries were in excess of the export limits or 
below the reference price.

III. Reference Price

    A. MOT will ensure that Hot-Rolled Steel covered by this Agreement 
will not be sold at a price below the reference price in effect on the 
Date of Sale.
    B. DOC shall issue Reference Prices for each quarter of each 
calendar year 30 days before the beginning of that quarter.
    C. The Reference Prices for the first quarter of the Initial Export 
Limit Period shall be as follows:

------------------------------------------------------------------------
                                                              Price per
                          Grade(s)                            metric ton
------------------------------------------------------------------------
A36, A568, A569............................................         $255
A572, A607, A715...........................................          280
------------------------------------------------------------------------

    D. Until such time as DOC and MOT agree, after consultations, upon 
Reference Prices for other grades of Hot-Rolled Steel, only the above 
grades may be exported to the United States. Consultations regarding 
Reference Prices for other grades of Hot-Rolled Steel shall be held 
within 30 days of a request and shall be completed within 15 days.
    E. Thirty days before the start of each quarter of each Export 
Limit Period (beginning with the second quarter of 2000) the Reference 
Price will be increased or decreased to reflect the change in the 
weighted-average unit import values for Hot-Rolled Steel from all 
countries not subject to antidumping duty orders or investigations over 
the most recent three months for which data is available, as compared 
to the previous three months. If the weighted-average unit import value 
for such Hot-Rolled Steel during the last of those three months has 
risen or fallen by more than six percent from the average of the first 
two of those months, the Reference Price will be adjusted on the basis 
of the last month, but that adjustment may not raise or lower the 
Reference Price by more than 10 percent. The source of the unit import 
values will be publicly available import statistics from the U.S. 
Bureau of the Census. DOC will provide MOT with the worksheets 
supporting its calculation of each quarterly Reference Price at the 
time it provides the Reference Price to MOT.
    F. At the time DOC calculates the Reference Price for the first 
quarter of each Subsequent Export Limit Period under Paragraph III.E, 
MOT may elect to adopt a premium reference price that will apply 
throughout that Subsequent Export Limit Period. The premium reference 
price must be a minimum of ten percent above the Reference Price DOC 
calculates under Paragraph III.E. If MOT agrees to adopt a premium 
Reference Price, DOC will calculate adjustments to the Reference Price 
for the remaining three quarters of the Subsequent Export Limit Period 
on the basis of the premium price determined for the first quarter of 
the Subsequent Export Limit Period. The Reference Price for the first 
quarter of any Subsequent Export Limit Period following an Export Limit 
Period in which a premium Reference Price has applied, however, shall 
be determined on the basis of whatever non-premium Reference Price 
would have applied during the last quarter of the previous Export Limit 
Period if MOT had not elected to use a premium Reference Price for that 
Export Limit Period. If MOT adopts a premium Reference Price for any 
Export Limit Period, the export limit for that period will be increased 
as provided in Paragraph II.A.4(c).
    G. Reference Prices are F.O.B. port of export. If the sale for 
export is on terms other than F.O.B. port of export, MOT will ensure 
that the F.O.B. port of export price is not lower than the Reference 
Price.

IV. Implementation

    A. The United States shall require presentation of an original 
stamped

[[Page 38645]]

Export License as a condition for entry into the United States of Hot-
Rolled Steel covered by this Agreement, except where there are multiple 
shipments under a single license. For multiple shipments at multiple 
ports or multiple entries at one port, the original license shall be 
presented with the first entry and the volume entered at that time will 
be noted on the original license. Customs will provide the importer 
with a certified copy for presentation to Customs with the importer's 
next entry under that license. Subsequent entries at that port can be 
made from copies of the original which reflect all of the deductions 
made from the original license.
    B. Export Licenses must contain, for each grade of Hot-Rolled Steel 
covered by the license, the quantity in metric tons, dimensions (gauge, 
width, and length (in the case of coils, length, if appropriate)) unit 
price, and F.O.B. sales value. If necessary, additional information may 
be included on the Export License or, if necessary, a separate page 
attached to the Export License. DOC will deduct the quantity listed on 
each Export License from the export limit for the Export Limit Period 
in which the Date of Export falls. However, if the bills of lading for 
all of the shipments under an Export License establish that the actual 
imports into the United States under that license were less than the 
total volume listed on the license, DOC will reflect the actual amount 
as having been deducted from the volume listed on the export license, 
but, notwithstanding the carry-over and carry-back limitations in 
Paragraph II.D, will authorize MOT to issue a new Export License in the 
same or Subsequent Export Licensing Period authorizing additional 
exports equal in volume to the volume of the undershipment. Exports 
under such additional licenses will be counted against the export limit 
for the Export Limit Period containing the Date of Export of the 
undershipment. The United States will prohibit the entry of any Hot-
Rolled Steel from Russia not accompanied by an original stamped Export 
License, except as provided in Paragraph A.\1\
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    \1\ The validity of an Export License will not be affected by a 
subsequent change of an HTS number.
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    C. MOT will ensure compliance with all of the provisions of this 
Agreement. In order to ensure such compliance, MOT will take at least 
the following measures:
    1. Ensure that no steel subject to this Agreement is exported from 
Russia for entry into the United States during the Moratorium Period 
and that no steel subject to this Agreement is exported from Russia for 
entry into the United States during any Export Limit Period that 
exceeds the export limit for that Export Limit Period or that is priced 
below the Reference Price in effect on the date of sale.
    2. Establish an export limit licensing and enforcement program for 
all direct and indirect exports of Hot-Rolled Steel to the United 
States no later than 120 days after the Effective Date.
    3. Require that applications for Export Licenses be accompanied by 
a report containing all of the information listed in part A of Appendix 
I (Exports to the United States).
    4. Refuse to issue an Export License to any applicant that does not 
permit full verification and reporting under this Agreement of all of 
the information in the application.
    5. Issue Export Licenses sequentially, endorsed against the export 
limit for the relevant Export Limit Period, and reference any notice of 
export limit allocation results for the relevant Export Limit Period. 
Export Licenses shall remain valid for entry into the United States for 
six months. DOC and MOT may agree to an extension of the validity of 
the Export License in extraordinary circumstances.
    6. Issue Export Licenses in the English language and, at the 
discretion of MOT, also in the Russian language.
    7. Issue Export Licenses no earlier than 90 days before the day on 
which the Hot-Rolled Steel is accepted by a transportation company, as 
indicated in the bill of lading or a comparable transportation 
document, for export.
    8. Collect all existing information from all Russian producers, 
exporters, brokers, if applicable, traders of Hot-Rolled Steel, and 
their relevant affiliated parties, as well as relevant trading 
companies/resellers utilized by Russian producers, on the sale of Hot-
Rolled Steel, and report such information pursuant to Article VI of 
this Agreement.
    9. Permit full verification of all information related to the 
administration of this Agreement on an annual basis or more frequently, 
as DOC deems necessary, to ensure that MOT is in full compliance with 
this Agreement and that all Russian producers and exporters are in 
compliance with the requirements that MOT has placed upon them under 
this Agreement. This requirement applies to both Russian State 
documents and non-State documents, such as sales contracts. Such 
verifications will take place in association with scheduled 
consultations whenever possible.
    10. Ensure compliance with all procedures established in order to 
effectuate this Agreement by any official Russian institution, chamber, 
or other authorized Russian entity, and any Russian producer, exporter, 
broker, and trader of Hot-Rolled Steel, their relevant affiliated 
parties, and any relevant trading company or reseller utilized by a 
Russian producer to make sales to the United States.
    11. Impose strict measures, such as prohibition from participation 
in the export limits allowed by the Agreement, in the event that any 
Russian entity does not comply in full with the requirements 
established by MOT pursuant to this Agreement.

V. Anticircumvention

    A. MOT will take all necessary measures to prevent circumvention of 
this Agreement, including at least the following:
    1. Require that all Russian exporters of Hot-Rolled Steel agree, as 
a condition of being permitted to export any Hot-Rolled Steel, 
regardless of destination, not to engage in any of the following 
activities:
    a. Exporting to the United States Hot-Rolled Steel subject to this 
Agreement that is not accompanied by an Export License issued pursuant 
to this Agreement.
    b. Transshipping Hot-Rolled Steel that is subject to this Agreement 
to the United States through third countries unaccompanied by an Export 
License.
    c. Arranging for processing of Hot-Rolled Steel subject to this 
Agreement either in Russia or in any third country for exportation to 
the United States not accompanied by an Export License, but only if 
such processing is covered by the definition of ``indirect exports'' in 
Section I (G).
    d. Exchanging (``swapping'') Hot-Rolled Steel subject to this 
Agreement for non-subject Hot-Rolled Steel, so as to cause the non-
subject steel to be entered into the United States in place of the 
subject Hot-Rolled Steel, thereby evading the export limits under this 
Agreement. ``Swaps'' include, but are not limited to:
    i. Ownership swaps--involve the exchange of ownership of Hot-Rolled 
Steel without physical transfer. These may include exchange of 
ownership of Hot-Rolled Steel in different countries, so that the 
parties obtain ownership of products located in different countries, or 
exchange of ownership of Hot-Rolled Steel produced in different 
countries, so that the parties obtain ownership of products of 
different national origin.
    ii. Flag swaps--involve the exchange of indicia of national origin 
of Hot-

[[Page 38646]]

Rolled Steel, without any exchange of ownership.
    iii. Displacement Swaps--involve the sale or delivery of Hot-Rolled 
Steel from Russia to an intermediary country (or countries) which, 
regardless of the sequence of events, results in the ultimate sale or 
delivery into the United States of displaced hot-rolled steel, where 
the Russian exporter knew or had reason to know that the export sale 
would have that result.
    2. Require that all Russian exporters of Hot-Rolled Steel agree, as 
a condition of being permitted to export any Hot-Rolled Steel, 
regardless of destination, require all of their customers to agree, as 
part of the contract for sale:
    a. Not to engage in any of the activities listed in Section V.A.1 
of this Agreement. This requirement does not apply to exports to the 
United States that are accompanied by a valid Export License.
    b. To include that same requirement in any subsequent contracts for 
the sale or transfer of such steel, and to report to MOT subsequent 
arrangements entered into for the sale, transfer exchange, or loan to 
the United States of Hot-Rolled Steel covered by this Agreement.
    3. When MOT has received an allegation that circumvention has 
occurred, including an allegation from DOC, MOT shall promptly initiate 
an inquiry, normally complete the inquiry within 45 days and notify DOC 
of the results of the inquiry within 15 days after the conclusion of 
the inquiry.
    4. If MOT determines that a Russian entity has participated in a 
transaction circumventing this Agreement, MOT shall impose penalties 
upon such company including, but not limited to, denial of access to 
export certificates for Hot-Rolled Steel under this Agreement.
    5. If MOT determines that a Russian entity has participated in the 
circumvention of this Agreement, MOT shall count against the export 
limit for the Export Limit Period in which the circumvention took place 
an amount of Hot-Rolled Steel equivalent to the amount involved in such 
circumvention and shall immediately notify DOC of the amount deducted. 
If sufficient tonnage is not available in the current Export Limit 
Period, then the remaining amount shall be deducted from the subsequent 
Export Limit Period or Periods.
    6. If MOT determines that a company from a third country has 
circumvented the Agreement and DOC and MOT agree that no Russian entity 
participated in or had knowledge of such activities, then the Parties 
shall hold consultations for the purpose of sharing information 
regarding such circumvention and reaching mutual agreement on the 
appropriate measures to be taken to eliminate such circumvention. If 
the Parties are unable to reach mutual agreement within 45 days, then 
DOC may take appropriate measures, such as deducting the amount of Hot-
Rolled Steel involved in such circumvention from the export limit for 
the then-current Export Limit Period or a subsequent Period. Before 
taking such measures, DOC will notify MOT of the facts and reasons 
constituting the basis for DOC's intended action and will afford MOT 15 
days in which to comment.
    B. DOC will direct the U.S. Customs Service to require all 
importers of Hot-Rolled Steel into the United States, regardless of the 
stated country of origin of those imports, to submit a written 
statement, on the last day of every quarter, listing all entries of 
such merchandise and certifying that the Hot-Rolled Steel imported 
during that quarter was not obtained under any arrangement in 
circumvention of this Agreement. Where DOC has reason to believe that 
such a certification has been made falsely, DOC will refer the matter 
to the U.S. Customs Service or U.S. Department of Justice for further 
action.
    C. DOC will investigate any allegations of circumvention which are 
brought to its attention, both by asking MOT to investigate such 
allegations and by itself gathering relevant information. MOT will 
respond to requests from DOC for information relating to the 
allegations under Section VI.A.4. In distinguishing normal 
arrangements, swaps, or other exchanges in the Hot-Rolled Steel market 
from arrangements, swaps, or other exchanges which would result in the 
circumvention of the export limits established by this Agreement, DOC 
will take the following factors into account:
    1. Existence of any verbal or written arrangement leading to 
circumvention of this Agreement;
    2. Existence and function of any subsidiaries or affiliates of the 
parties involved;
    3. Existence and function of any historical and traditional 
patterns of production and trade among the parties involved, and any 
deviation from such patterns;
    4. Existence of any payments unaccounted for by previous or 
subsequent deliveries, or any payments to one party for Hot-Rolled 
Steel delivered or swapped by another party;
    5. Sequence and timing of the arrangements; and
    6. Any other information relevant to the transaction or 
circumstances.
    D. In the event that DOC determines that a Russian entity has 
participated in circumvention of this Agreement, DOC and MOT shall hold 
consultations for the purpose of sharing evidence regarding such 
circumvention and reaching mutual agreement on an appropriate 
resolution of the problem. If DOC and MOT are unable to reach mutual 
agreement within 60 days, DOC may take appropriate measures, such as 
deducting the amount of Hot-Rolled Steel involved in such circumvention 
from the export limit for the current Export Limit Period (or, if 
necessary, the Subsequent Export Limit Period) or instructing the U.S. 
Customs Service to deny entry to any Russian Hot-Rolled Steel sold by 
the entity found to be circumventing the Agreement. Before taking such 
measures, DOC will notify MOT of the basis for DOC's intended action 
and will afford MOT 30 days in which to comment. DOC will enter its 
determinations regarding circumvention into the record of the 
Agreement. MOT may request an extension of up to 15 days for any of the 
deadlines mentioned in this Section.

VI. Monitoring and Notifications

    A. MOT will collect and provide to DOC such information as is 
necessary and appropriate to monitor the implementation of, and 
compliance with, this Agreement, including the following:
    1. Thirty days following the allocation of export rights for any 
Export Limit Period, MOT shall notify DOC of each allocation recipient 
and the volume granted to each recipient. MOT also shall inform DOC of 
any changes in the volume allocated to individual quota recipients 
within 60 days of the date on which such changes become effective.
    2. MOT shall collect and provide to DOC information on exports to 
the United States in the format in Appendix I to this Agreement, and on 
the aggregate quantity and value of exports of Hot-Rolled Steel to all 
other countries. In addition to this information, MOT will also provide 
a list of heat numbers for each shipment to the United States. This 
information will be subject to verification. This information will be 
based on semi-annual periods (January 1 through June 30 and July 1 
through December 31), and will be provided no later than 90 days 
following the end of each half-year period, beginning on September 30, 
1999.
    3. Upon request by DOC, MOT shall also collect and provide to DOC, 
within 45 days of the request, transaction-specific data for sales of 
Hot-Rolled Steel within the Russian home market

[[Page 38647]]

or to any third country or countries, in the format provided in 
Appendix I.
    4. Within 15 days of a request from DOC for information concerning 
alleged circumvention or other violation of this Agreement, MOT shall 
share with DOC all information received or collected by MOT regarding 
its inquiries, its analysis of such information, and the results of 
such inquiries.
    5. MOT will inform DOC of any violations of any provisions of this 
Agreement that come to its attention and of the measures taken with 
respect thereto.
    6. MOT and DOC recognize that the effective monitoring of this 
Agreement may require that MOT provide information additional to that 
identified above. Accordingly, after consulting with MOT, DOC may 
establish additional reporting requirements consistent with the U.S. 
antidumping law, as appropriate, during the course of this Agreement. 
MOT shall also collect and provide to DOC, within 45 days of the 
request, any such additional information requested by DOC.
    B. MOT may request an extension of up to 30 days of any deadline in 
this section.
    C. DOC may disregard any information submitted after the deadlines 
set forth in this Section or any information which it is unable to 
verify to its satisfaction.
    D. DOC shall provide MOT with the following information relating to 
implementation and enforcement of this Agreement.
    1. Semi-annual reports indicating the volume of U.S. imports of 
Hot-Rolled Steel subject to this Agreement, together with such 
additional information as is necessary and appropriate to monitor 
compliance with the export limits. Such reports and information shall 
be provided within 120 days after the end of the last semi-annual 
period.
    2. Notice of any violations of any term of this Agreement.
    E. DOC will also monitor the following information relevant to this 
Agreement, and provide such information that is public to MOT upon 
request.
    1. Publicly available data as well as U.S. Customs entry summaries 
and other official import data from the U.S. Bureau of the Census, on a 
monthly basis, to determine whether there have been imports that are 
inconsistent with the provisions of this Agreement.
    2. U.S. Bureau of the Census computerized records, which include 
the quantity and value of each entry. Because these records do not 
provide other specific entry information, such as the identity of the 
producer/exporter which may be responsible for such sales, DOC may 
request the U.S. Customs Service to provide such information. DOC may 
request other additional documentation from the U.S. Customs Service.
    F. DOC may also request the U.S. Customs Service to direct ports of 
entry to forward an Antidumping Report of Importations for entries of 
Hot-Rolled Steel during the period this Agreement is in effect.

VII. Disclosure and Comment

    A. DOC shall make available to representatives of each Party to the 
Proceeding, under appropriately-drawn administrative protective orders 
consistent with U.S. laws and regulations, business proprietary 
information submitted to DOC semi-annually or upon request pursuant to 
this Agreement, and in any administrative review of this Agreement.
    B. Not later than 45 days after the date of disclosure under 
Section VII.A, the Parties to the Proceeding may submit written 
comments to DOC, not to exceed 30 pages.
    C. At the end of the Moratorium Period and each Export Limit 
Period, each Party to the Proceeding may request a hearing on issues 
raised during the Moratorium Period or the preceding Export Limit 
Period. If such a hearing is requested, it will be conducted in 
accordance with U.S. laws and regulations.

VIII. Consultations

    A. If, in response to a request by MOT at any time, DOC determines 
that the Reference Price calculated under Section III prevents Russian 
producers from participating in the U.S. market, MOT and DOC will 
promptly enter into consultations in order to review the market 
situation and the appropriateness of the Reference Price level.
    B. MOT and DOC shall hold consultations concerning the 
implementation, operation (including the calculation of Reference 
Prices) and enforcement of this Agreement each year during the 
anniversary month of this Agreement.
    C. Additional consultations on any aspect of this Agreement shall 
be held as soon as possible, but no later than 30 days, after a request 
by either MOT or DOC.
    D. If DOC receives information indicating that there has been a 
violation of this Agreement, DOC shall promptly request special 
consultations with MOT. Such consultations shall begin no later than 21 
days after the day of DOC's request, and must be completed within 40 
days after commencement. After completion of the consultations, DOC 
will provide MOT 20 days within which to provide comments.
    E. Two years after the effective date of this Agreement, DOC and 
MOT shall enter into additional consultations to review the extent to 
which this Agreement is accomplishing the purposes set forth in the 
preamble and make any revisions consistent with U.S. law that are 
appropriate in light of their mutual conclusions.

IX. Violations

    A. DOC will investigate any information relating to circumvention 
or other violations of this Agreement which is brought to its 
attention, both by asking MOT to investigate such allegations and by 
itself gathering relevant information. Prior to making a determination 
that a violation has occurred, DOC will engage in consultations with 
MOT, pursuant to Section V.D or VIII.D. of this Agreement.
    B. DOC will determine whether a violation has occurred within 30 
days after the date for submission of comments by MOT upon the 
allegation under Section VIII.D.
    C. If DOC determines that this Agreement is being or has been 
violated, DOC will take such action as it determines is appropriate 
under U.S. law and regulations.

X. Duration

    A. This Agreement will remain in force until the underlying 
antidumping proceeding is terminated in accordance with U.S. 
antidumping law.
    B. DOC will, upon receiving a proper request made by MOT, conduct 
an administrative review of this Agreement under U.S. laws and 
regulations.
    C. MOT or DOC may terminate this Agreement at any time upon written 
notice to the other party. Termination shall be effective 60 days after 
such notice is given. Upon termination of this Agreement, the 
provisions of U.S. antidumping law and regulations shall apply. In 
addition, DOC shall terminate this agreement if MOT withdraws from 
``The Agreement Concerning Trade In Certain Steel Products From The 
Russian Federation.'' Termination shall be effective 60 days after the 
written notice of MOT's withdrawal.

XI. Other Provisions

    A. DOC finds that this Agreement is in the public interest, that 
effective monitoring of this Agreement by the United States is 
practicable, and that this Agreement will prevent the

[[Page 38648]]

suppression or undercutting of price levels of United States domestic 
Hot-Rolled Steel products by imports of the Hot-Rolled Steel subject to 
this Agreement.
    B. DOC does not consider any of the obligations concerning exports 
of Hot-Rolled Steel to the United States undertaken by MOT pursuant to 
this Agreement relevant to the question of whether firms in the 
underlying investigation would be entitled to separate rates, should 
the investigation be resumed for any reason.
    C. The English and Russian language versions of this Agreement 
shall be authentic, with the English version being controlling.
    D. All provisions of this Agreement, including the provisions of 
the Preamble, shall have equal force.
    E. For all purposes hereunder, the signatory Parties shall be 
represented by, and all communications and notices shall be given and 
addressed to:

DOC:
U.S. Department of Commerce, Assistant Secretary for Import 
Administration, International Trade Administration, Washington, D.C. 
20230
MOT:
Department for State Regulation of External Economic Activities, 
Ministry of Trade of the Russian Federation, 18/1 Ovchinnikovskaya 
naberezhnaya, Moscow, 1 13324, Russia

    Signed on this 12th of July, 1999.

    For DOC:
Robert S. LaRussa,
Assistant Secretary for Import Administration.

    For MOT:
Roald Piskoppel,
Deputy Minister Ministry of Trade of the Russian Federation.

Appendix I

    In accordance with the established format, MOT shall collect and 
provide to DOC all information necessary to ensure compliance with 
this Agreement. This information will be provided to DOC on a semi-
annual basis.
    MOT will collect and maintain data on exports to the United 
States on a continuous basis. Sales data for the home market, and 
data for exports to countries other than the United States, will be 
reported upon request.
    MOT will provide a narrative explanation to substantiate all 
data collected in accordance with the following formats.

A. Exports to the United States

    MOT will provide all Export Licenses issued to Russian entities, 
which shall contain the following information with the exception 
that information requested in item #9, date of entry, item #110, 
importer of record, item #116, final destination, and item #117, 
other, may be omitted if unknown to MOT and the licensee.
1. Export License/Temporary Document: Indicate the number(s) 
relating to each sale and or entry.
2. Description of Merchandise: Include the 10 digit HTS category, 
the ASTM or equivalent grade, and the width and thickness of 
merchandise.
3. Quantity: Indicate in metric tons.
4. F.O.B. Sales Value: Indicate value and currency used.
5. Unit Price: Indicate unit price per metric ton and currency used
6. Date of Sale: The date all essential terms of the order (i.e, 
price and quantity) become fixed.
7. Sales Order Number(s): Indicate the number(s) relating to each 
sale and/or entry.
8. Date of Export: Date the Export License/Temporary Document is 
Issued.
9. Date of Entry: Date the merchandise entered the United States or 
the date book transfer took place.
10. Importer of Record: Name and address.
11. Trading Company: Name and address of trading company involved in 
sale.
12. Customer: Name and address of the first unaffiliated party 
purchasing from the Russian exporter.
13. Customer Relationship: Indicate whether the customer is 
affiliated or unaffiliated to the Russian exporter.
14. Allocation to Exporter: Indicate the total amount of quota 
allocated to the individual exporter during the Relevant Period.
15. Allocation Remaining: Indicate the remaining export limit 
allocation available to the individual exporter during the export 
limit period.
16. Final Destination: The complete name and address of the U.S. 
purchaser.
17. Other: The identity of any party(ies) in the transaction chain 
between the customer and the final destination/ U.S. purchaser.

B. Exports Other Than to the United States

    Pursuant to Section VI, paragraph A, MOT will provide country-
specific volume and value information for exports of Hot-Rolled 
Steel to third countries, upon request, regardless of whether MOT 
licenses exports of Hot-Rolled Steel to such country(ies). The 
following information shall be provided except that information 
requested in item #16, date of entry, #17, importer of record, and 
item #110, other, may be omitted if unknown to MOT and the Russian 
licensee.
1. Export License/Temporary Document: Indicate the number(s) 
relating to each sale and/or entry, if any.
2. Quantity: Indicate in original units of measure sold and/or 
entered in metric tons.
3. Date of Sale: The date all essential terms of the order (i.e., 
price and quantity) become fixed.
4. Sales Order Number(s): Indicate the number(s) relating to each 
sale and/or entry.
5. Date of Export: Date Export License/Temporary Document is issued, 
if any.
6. Date of Entry: Date the merchandise entered the third country or 
the date a book transfer took place.
7. Importer of Record: Name and address.
8. Customer: Name and address of the first unaffiliated party 
purchasing from the Russian exporter.
9. Customer Relationship: Indicate whether the customer is 
affiliated or unaffiliated.
10. Other: The identity of any party(ies) in the transaction chain 
between the customer and the final destination.

C. Home Market Sales

    Pursuant to Section VII, paragraph A, the MOT will provide home 
market volume and value information for sales of Hot-Rolled Steel, 
upon request. The following information shall be provided with the 
exception of item #6, other, if unknown to MOT and the Russian 
producer/exporter.
1. Quantity: Indicate in original units of measure sold and/or 
entered in metric tons.
2. Date of Sale: The date all essential terms of order (i.e., price 
and quantity) become fixed.
3. Sales Order Number(s): Indicate the number(s) relating to each 
sale and/or entry.
4. Customer: Name and address of the first unaffiliated party 
purchasing from the Russian exporter.
5. Customer Relationship: Indicate whether the customer is 
affiliated or unaffiliated.
6. Other: The identity of any party(ies) in the transaction chain 
between the customer and the final destination.

Appendix II

    Section 734 (1) of the Tariff Act of 1930 as amended, provides, in 
part, as follows:

(1) Special Rule for Non-Market Economy Countries.

    (I) In General.--The administering authority may suspend an 
investigation under this subtitle upon acceptance of an agreement 
with a non-market economy country to restrict the volume of imports 
into the United States of the merchandise under investigation only 
if the administering authority determines that
    (A)--such agreement satisfies the requirements of subsection 
(d), and
    (B)--will prevent the suppression or undercutting of price 
levels of domestic products by imports of the merchandise under 
investigation.
    (2) Failure of Agreements--If the administering authority 
determines that the agreement accepted under this subsection no 
longer prevents the suppression or undercutting of domestic prices 
of merchandise manufactured in the United States, the provisions of 
subsection (I) shall apply.
    Section 771(9) of the Tariff Act of 1930, as amended, provides 
in part, as follows:
    (9) Interested Party--The term ``interested party'' means--
    (A) A foreign manufacturer, producer, or exporter, or the United 
States importer, of subject merchandise under this title or a trade 
or business association a majority of the

[[Page 38649]]

members of which are producers, exporters, or importers of such mer 
chandise,
    (B) The government of a country in which such merchandise is 
produced or manufactured or from which such merchandise is exported,
    (C) A manufacturer, producer, or wholesaler in the United States 
of a domestic like product,
    (D) A certified union or recognized union or group of workers 
which is representative of an industry engaged in the manufacture, 
production, or wholesale in the United States of a domestic like 
product,
    (E) A trade or business association a majority of whose members 
manufacture, produce, or wholesale a domestic like product in the 
United States,
    (F) An association, a majority of whose members is composed of 
interested parties described in subparagraph (C), (D), or (E) with 
respect to a domestic like product, and
* * * * *

Appendix III

    For the purposes of this Agreement, ``Hot-rolled steel'' means 
certain hot-rolled flat-rolled carbon-quality steel products of a 
rectangular shape, of a width of 0.5 inch or greater, neither clad, 
plated, nor coated with metal and whether or not painted, varnished, 
or coated with plastics or other non-metallic substances, in coils 
(whether or not in successively superimposed layers) regardless of 
thickness, and in straight lengths, of a thickness less than 4.75 mm 
and of a width measuring at least 10 times the thickness.
    Universal mill plate (i.e., flat-rolled products rolled on four 
faces or in a closed box pass, of a width exceeding 150 mm but not 
exceeding 1250 mm and of a thickness of not less than 4 mm, not in 
coils and without patterns in relief) of a thickness not less than 
4.0 mm is not included within the scope of this agreement.
    Specifically included in this scope are vacuum degassed, fully 
stabilized (commonly referred to as interstitial-free (``IF'')) 
steels, high strength low alloy (``HSLA'') steels, and the substrate 
for motor lamination steels. IF steels are recognized as low carbon 
steels with micro-alloying levels of elements such as titanium and/
or niobium added to stabilize carbon and nitrogen elements. HSLA 
steels are recognized as steels with micro-alloying levels of 
elements such as chromium, copper, niobium, titanium, vanadium, and 
molybdenum. The substrate for motor lamination steels contains 
micro-alloying levels of elements such as silicon and aluminum.
    Steel products to be included in the scope of this agreement, 
regardless of HTSUS definitions, are products in which: (1) iron 
predominates, by weight, over each of the other contained elements; 
(2) the carbon content is 2 percent or less, by weight; and (3) none 
of the elements listed below exceeds the quantity, by weight, 
respectively indicated:

1.80 percent of manganese, or
1.50 percent of silicon, or
1.00 percent of copper, or
0.50 percent of aluminum, or
1.25 percent of chromium, or
0.30 percent of cobalt, or
0.40 percent of lead, or
1.25 percent of nickel, or
0.30 percent of tungsten, or
0.012 percent of boron, or
0.10 percent of molybdenum, or
0.10 percent of niobium, or
0.41 percent of titanium, or
0.15 percent of vanadium, or
0.15 percent of zirconium.

    All products that meet the physical and chemical description 
provided above are within the scope of this agreement unless 
otherwise excluded. The following products, by way of example, are 
outside and/or specifically excluded from the scope of this 
agreement:

     Alloy hot-rolled steel products in which at least one 
of the chemical elements exceeds those listed above (including e.g., 
ASTM specifications A543, A387, A514, A517, and A506).
     SAE/AISI grades of series 2300 and higher.
     Ball bearing steels, as defined in the HTSUS.
     Tool steels, as defined in the HTSUS.
     Silico-manganese (as defined in the HTSUS) or silicon 
electrical steel with a silicon level exceeding 1.50 percent.
     ASTM specifications A710 and A736.
     USS Abrasion-resistant steels (USS AR 400, USS AR 500).
     Hot-rolled steel coil which meets the following 
chemical, physical and mechanical specifications:

--------------------------------------------------------------------------------------------------------------------------------------------------------
              C                       Mn                 P                 S                Si                Cr               Cu               Ni
--------------------------------------------------------------------------------------------------------------------------------------------------------
0.10-0.14%...................  0.90% Max.......  0.025% Max......  0.005% Max......  0.30-0.50%......  0.50-0.70%.....  0.20-0.40%.....  0.20% Max.
--------------------------------------------------------------------------------------------------------------------------------------------------------

Width = 44.80 inches maximum;
Thickness = 0.063--0.198 inches;
Yield Strength = 50,000 ksi minimum;
Tensile Strength = 70,000--88,000 psi.

    Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                C                         Mn                   P                   S                  Si                  Cr                  Cu                  Ni                  Mo
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
0.10-0.16%......................  0.70-0.90%........  0.025% Max........  0.006% Max........  0.30-0.50%........  0.50-0.70%........  0.25% Max.........  0.20% Max.........  0.21% Max
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Width = 44.80 inches maximum; Thickness = 0.350 inches maximum;
Yield Strength = 80,000 ksi minimum;
Tensile Strength = 105,000 psi Aim.

    Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
               C                       Mn                 P                 S                Si                Cr                Cu                Ni              V(wt.)              Cb
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
0.10-0.14%....................  1.30-1.80%......  0.025% Max......  0.005% Max......  0.30-0.50%......  0.50-0.70%......  0.20-0.40%......  0.20% Max.......  0.10 Max........  0.08% Max.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Width = 44.80 inches maximum;
Thickness = 0.350 inches maximum;
Yield Strength = 80,000 ksi minimum;
Tensile Strength = 105,000 psi Aim.

    Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                C                         Mn                   P                   S                  Si                  Cr                  Cu                  Ni                  Nb                  Ca                  Al
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
0.15% Max.......................  1.40% Max.........  0.025% Max........  0.010% Max........  0.50% Max.........  1.00% Max.........  0.50% Max.........  0.20% Max.........  0.005% Min........  Treated...........  0.01-0.07%.
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 38650]]

Width = 39.37 inches;
Thickness = 0.181 inches maximum;
Yield Strength = 70,000 psi minimum for thicknesses  
0.148 inches and 65,000 psi minimum for thicknesses >0.148 inches;
Tensile Strength = 80,000 psi minimum.

    Hot-rolled dual phase steel, phase-hardened, primarily with a 
ferritic-martensitic microstructure, contains 0.9 percent up to and 
including 1.5 percent silicon by weight, further characterized by 
either (i) tensile strength between 540 N/mm\2\ and 640 N/mm\2\ and 
an elongation percentage 26 percent for thicknesses of 2 
mm and above, or (ii) a tensile strength between 590 N/mm\2\ and 690 
N/mm\2\ and an elongation percentage 25 percent for 
thicknesses of 2mm and above.
    Hot-rolled bearing quality steel, SAE grade 1050, in coils, with 
an inclusion rating of 1.0 maximum per ASTM E 45, Method A, with 
excellent surface quality and chemistry restrictions as follows: 
0.012 percent maximum phosphorus, 0.015 percent maximum sulfur, and 
0.20 percent maximum residuals including 0.15 percent maximum 
chromium.
     Grade ASTM A570-50 hot-rolled steel sheet in coils or 
cut lengths, width of 74 inches (nominal, within ASTM tolerances), 
thickness of 11 gauge (0.119 inches nominal), mill edge and skin 
passed, with a minimum copper content of 0.20 percent.

The covered merchandise is classified in the Harmonized Tariff 
Schedule of the United States (``HTSUS'') at subheadings: 
7208.10.15.00, 7208.10.30.00, 7208.10.60.00, 7208.25.30.00, 
7208.25.60.00, 7208.26.00.30, 7208.26.00.60, 7208.27.00.30, 
7208.27.00.60, 7208.36.00.30, 7208.36.00.60, 7208.37.00.30, 
7208.37.00.60, 7208.38.00.15, 7208.38.00.30, 7208.38.00.90, 
7208.39.00.15, 7208.39.00.30, 7208.39.00.90, 7208.40.60.30, 
7208.40.60.60, 7208.53.00.00, 7208.54.00.00, 7208.90.00.00, 
7210.70.30.00, 7210.90.90.00, 7211.14.00.30, 7211.14.00.90, 
7211.19.15.00, 7211.19.20.00, 7211.19.30.00, 7211.19.45.00, 
7211.19.60.00, 7211.19.75.30, 7211.19.75.60, 7211.19.75.90, 
7212.40.10.00, 7212.40.50.00, 7212.50.00.00. Certain hot-rolled 
flat-rolled carbon-quality steel covered include: vacuum degassed, 
fully stabilized; high strength low alloy; and the substrate for 
motor lamination steel may also enter under the following tariff 
numbers: 7225.11.00.00, 7225.19.00.00, 7225.30.30.50, 7225.30.70.00, 
7225.40.70.00, 7225.99.00.90, 7226.11.10.00, 7226.11.90.30, 
7226.11.90.60, 7226.19.10.00, 7226.19.90.00, 7226.91.50.00, 
7226.91.70.00, 7226.91.80.00, and 7226.99.00.00. Although the HTSUS 
subheadings are provided for convenience and Customs purposes, the 
written description of the covered merchandise is dispositive.

Appendix IV

    For purposes of this Agreement, Apparent U.S. Domestic 
Consumption will be estimated as follows, using data provided by the 
American Iron and Steel Institute and the U.S. Bureau of the Census 
in the following manner:

Apparent Consumption =
    Domestic Shipments of Hot-Rolled Steel 2
---------------------------------------------------------------------------

    \2\ Hot-Rolled Steel = Carbon Plates In Coils (AISI Data) + 
Carbon Hot-Rolled Sheets (AISI Data) + Carbon Hot-Rolled Strip (AISI 
Data).
---------------------------------------------------------------------------

    +Imports of Hot-Rolled Steel 3
---------------------------------------------------------------------------

    \3\ Imports of Hot-Rolled Steel = Carbon Plates In Coils (AISI 
Data) + Carbon Hot-Rolled Sheets (AISI Data) + Carbon Hot-Rolled 
Strip (AISI Data) + Imports of HTS Numbers 7225303050, 7225307000, 
7225407000, 7226917000, 7226918000 (Data from the U.S. Bureau of the 
Census on Imports for Consumption, as reported by the International 
Trade Commission's Trade DataWeb).
---------------------------------------------------------------------------

    -Exports of Hot-Rolled Steel 4

    \4\ Exports of Hot-Rolled Steel = Carbon Plates in Coils (AISI 
Data) + Carbon Hot-Rolled Sheets (AISI Data) + Carbon Hot-Rolled 
Strip (AISI Data).

    The definition of shipments used here, while as close as 
practically possible, is not identical to the imports as defined in 
---------------------------------------------------------------------------
Paragraph I.F and Appendix III of this Agreement.

[FR Doc. 99-18372 Filed 7-16-99; 8:45 am]
BILLING CODE 3510-DS-P