[Federal Register Volume 65, Number 49 (Monday, March 13, 2000)]
[Notices]
[Pages 13368-13370]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-6088]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-201-810]


Certain Cut-to-Length Carbon Steel Plate From Mexico: Final 
Results of Countervailing Duty Administrative Review

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

ACTION: Notice of Final Results of Countervailing Duty Administrative 
Review.

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SUMMARY: On September 8, 1999, the Department of Commerce (the 
Department) published in the Federal Register its preliminary results 
of the administrative review of the countervailing duty order on 
certain cut-to-length carbon steel plate (CTL Plate) from Mexico for 
the period January 1, 1997 through December 31, 1997.
    Based on our analysis of the comments received, we have made 
changes to the net subsidy rate. Therefore, the final results differ 
from the preliminary results. The final net subsidy rate for the 
reviewed company is listed below in the section entitled ``Final 
Results of Review.''

EFFECTIVE DATE: March 13, 2000.

FOR FURTHER INFORMATION CONTACT: Norbert Gannon or Eric B. Greynolds, 
Office of AD/CVD Enforcement VI, Import Administration, U.S. Department 
of Commerce, Room 4012, 14th Street and Constitution Avenue, N.W., 
Washington, D.C. 20230; telephone (202) 482-2786.

SUPPLEMENTARY INFORMATION:

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions of the Tariff Act of 1930, as amended by 
the Uruguay Round Agreements Act (URAA) effective January 1, 1995 (the 
Act). The Department is conducting this administrative review in 
accordance with section 751(a) of the Act. All citations to the 
Department's regulations reference 19 CFR Part 351(April 1998), unless 
otherwise indicated. Because the request for this administrative review 
was filed before January 1, 1999, the Department's substantive 
countervailing duty regulations, which were published in the Federal 
Register on November 25, 1998 (63 FR 65348), do not govern this review.

Background

    On September 8, 1999, the Department published the preliminary 
results of the administrative review of the countervailing duty order 
on certain cut-to-length carbon steel plate from Mexico. See Certain 
Cut-to-Length Carbon Steel Plate from Mexico: Preliminary Results of 
Countervailing Duty Administrative Review, 64 FR 48796 (September 8, 
1999) (Preliminary Results). This review covers one manufacturer/
exporter, Altos Hornos de Mexico, S.A. (AHMSA). The review covers the 
period January 1, 1997 through December 31, 1997, and twenty-one 
programs.

Scope of the Review

    The products covered by this administrative review are certain cut-
to-length carbon steel plates. These products include hot-rolled carbon 
steel universal mill plates (i.e., flat-rolled products rolled on four 
faces or in a closed box pass, of a width exceeding 150 millimeters but 
not exceeding 1,250 millimeters and of a thickness of not less than 4 
millimeters, not in coils and without patterns in relief), of 
rectangular shape, neither clad, plated nor coated with metal, whether 
or not painted, varnished, or coated with plastics or other nonmetallic 
substances; and certain hot-rolled carbon steel flat-rolled products in 
straight lengths, of rectangular shape, hot rolled, neither clad, 
plated, nor coated with metal, whether or not painted, varnished, or 
coated with plastics or other nonmetallic substances, 4.75 millimeters 
or more in thickness and of a width which exceeds 150 millimeters and 
measures at least twice the thickness, as currently classifiable in the 
Harmonized Tariff Schedules of the United States (HTSUS) under item 
numbers 7208.31.0000, 7208.32.0000, 7208.33.1000, 7208.33.5000, 
7208.41.0000, 7208.42.0000, 7208.43.0000, 7208.90.0000, 7210.70.3000, 
7210.90.9000, 7211.11.0000, 7211.12.0000, 7211.21.0000, 7211.22.0045, 
7211.90.0000, 7212.40.1000, 7212.40.5000, and 7212.50.0000. Included in 
this administrative review are flat-rolled products of nonrectangular 
cross-section where such cross-section is achieved subsequent to the 
rolling process (i.e., products which have been ``worked after 
rolling'')--for example, products which have been bevelled or rounded 
at the edges. Excluded from this administrative review is grade X-70 
plate. HTSUS subheadings are provided for convenience and Customs 
purposes.

[[Page 13369]]

The written description of the scope of this proceeding is dispositive.

Analysis of Comment Received

    All issues raised in the case and rebuttal briefs by parties to 
this administrative review are addressed in the ``Issues and Decision 
Memorandum'' (Decision Memorandum) from Holly Kuga, Acting Deputy 
Assistant Secretary, Import Administration, to Robert S. LaRussa, 
Assistant Secretary for Import Administration, dated March 6, 2000, 
which is hereby adopted and incorporated by reference into this notice. 
A list of issues which parties have raised and to which we have 
responded, all of which are in the Decision Memorandum, is attached to 
this notice as Appendix I. Parties can find a complete discussion of 
all issues raised in this review and the corresponding recommendations 
in this public memorandum which is on file in room B-099 of the Main 
Commerce Building. In addition, a complete version of the Decision 
Memorandum can be accessed directly on the World Wide Web at 
www.ita.doc.gov/import__admin/records/frn, under the heading 
``Mexico.'' The paper copy and electronic version of the Decision 
Memorandum are identical in content.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made certain 
changes to the net subsidy rate. Any changes are discussed in the 
relevant sections of the Decision Memorandum.

Final Results of Review

    In accordance with 19 CFR 351.221(b)(4)(i), we calculated an 
individual subsidy rate for each producer/exporter subject to this 
review. We will instruct the U.S. Customs Service (Customs) to assess 
countervailing duties as indicated below on all appropriate entries. 
For the period January 1, 1997 through December 31, 1997, we determine 
the net subsidy rate for the reviewed company to be as follows:

                                 Margin
------------------------------------------------------------------------
                    Manufacturer/exporter                       Percent
------------------------------------------------------------------------
AHMSA........................................................      10.42
------------------------------------------------------------------------

    We will instruct Customs to assess countervailing duties as 
indicated above. The Department will also instruct Customs to collect 
cash deposits of estimated countervailing duties in the percentages 
detailed above of the f.o.b. invoice price on all shipments of the 
subject merchandise from reviewed companies, entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of the 
final results of this review.
    Because the URAA replaced the general rule in favor of a country-
wide rate with a general rule in favor of individual rates for 
investigated and reviewed companies, the procedures for establishing 
countervailing duty rates, including those for non-reviewed companies, 
are now essentially the same as those in antidumping cases, except as 
provided for in section 777A(e)(2)(B) of the Act. The requested review 
will normally cover only those companies specifically named. See 19 CFR 
351.213(b). Pursuant to 19 CFR 351.212(c), for all companies for which 
a review was not requested, duties must be assessed at the cash deposit 
rate, and cash deposits must continue to be collected at the rate 
previously ordered. As such, the countervailing duty cash deposit rate 
applicable to a company can no longer change, except pursuant to a 
request for a review of that company. See Federal-Mogul Corporation and 
The Torrington Company v. United States, 822 F. Supp. 782 (CIT 1993); 
Floral Trade Council v. United States, 822 F. Supp. 766 (CIT 1993). 
Therefore, the cash deposit rates for all companies except those 
covered by this review will be unchanged by the results of this review.
    We will instruct Customs to continue to collect cash deposits for 
non-reviewed companies at the most recent company-specific or country-
wide rate applicable to the company. Accordingly, the cash deposit 
rates that will be applied to non-reviewed companies covered by this 
order will be the rate for that company established in the most 
recently completed administrative proceeding conducted under the Act, 
as amended by the URAA. If such a review has not been conducted, the 
rate established in the most recently completed administrative 
proceeding pursuant to the statutory provisions that were in effect 
prior to the URAA amendments is applicable. See Final Affirmative 
Countervailing Duty Determination: Certain Steel Products from Mexico, 
58 FR 37352 (July 9, 1993) (Certain Steel 1993). These rates shall 
apply to all non-reviewed companies until a review of a company 
assigned these rates is requested. In addition, for the period January 
1, 1997 through December 31, 1997, the assessment rates applicable to 
all non-reviewed companies covered by this order are the cash deposit 
rates in effect at the time of entry.
    This notice serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305. Timely written notification of 
return/destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and the terms of an APO is a sanctionable violation.
    This administrative review and notice are in accordance with 
section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)).

    Dated: March 6, 2000.
Robert S. LaRussa,
Assistant Secretary for Import Administration.

Appendix I--Issues in Discussed in Decision Memorandum

[www.ita.doc.gov/import__admin/records/frn, under the heading 
(``Mexico'')]

Methodology and Background Information

I. Subsidies Valuation Information
    A. Allocation Period
    B. Discount Rates
II. Change in Ownership
    A. Background
    B. Change in Ownership Calculation Methodology
III. Inflation Methodology

Analysis of Programs

I. Programs Conferring Subsidies
    A. GOM Equity Infusions
    B. 1986 Assumption of AHMSA's Debt
    C. 1988 and 1990 Debt Restructuring of AHMSA Debt and the 
Resulting Discounted Prepayment in 1996 of AHMSA's Restructured Debt 
Owed to the GOM
    D. IMIS Research and Development Grants
    E. Pre-privatization Lay-off Financing from the GOM and the 1991 
Equity Infusion in Connection with the Debt-to-Equity Swap of 
PROCARSA Shares
    F. Bancomext Export Loans
    G. PITEX Duty-Free Imports for Companies That Export
    H. Immediate Deduction
II. Programs Determined To Be Not Countervailable
    A. Committed Investment
    B. The Mexican Corporation of Materials Research, S.A. de C.V. 
(COMIMSA)
    C. Waiver of Taxes on AHMSA Purchase of Fundadora de Monterrey, 
S.A. de C.V. (FMSA)
    D. Discounted Freight Rates
    E. Promotion of Highly Exportable Companies (ALTEX)
III. Other Programs Examined
    A. Nafinsa Long-Term Loans
IV. Programs Not Used
    A. Bancomext Short-Term Import Financing
    B. FONEI Long-Term Financing
    C. Export Financing Restructuring
    D. Bancomext Trade Promotion Services and Technical Support

[[Page 13370]]

    E. ECEX
    F. Article 15 & 94 Loans
V. Analysis of Comments
    Comment 1: Requested Use of Facts Available
    Comment 2: The 1988 and 1990 Debt Restructuring of AHMSA Debt 
and the Resulting Discounted Prepayment in 1996 of AHMSA's 
Restructured Debt Owed to the GOM
    Comment 3: Discount Rates Used by the Department as Part of Its 
Significant Inflation Methodology
    Comment 4: Use of Certain Company-Specific Loans in the 
Derivation of Short-Term and Long-Term Benchmark Interest Rates
    Comment 5: Committed Investment
    Comment 6: Value-Added Taxes (VAT) Under the Program for 
Temporary Import for Producing Products for Export (PITEX)
    Comment 7: Machinery and Auxiliary Materials Imported Under 
PITEX
    Comment 8: Immediate Deduction
    Comment 9: Nafinsa Long-Term Loans
    Comment 10: The Department's Compliance With the SCM Agreement 
Regarding Its Initiation of Investigations of New Subsidies Alleged 
During the POR

[FR Doc. 00-6088 Filed 3-10-00; 8:45 am]
BILLING CODE 3510-DS-P