[Federal Register Volume 65, Number 59 (Monday, March 27, 2000)]
[Notices]
[Pages 16176-16178]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-7493]



[[Page 16176]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-428-817]


Certain Corrosion-Resistant Carbon Steel Flat Products; Cold-
Rolled Carbon Steel Flat Products; and Cut-to-Length Carbon Steel Plate 
Products From Germany; Preliminary Results of Full Sunset Reviews

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

ACTION: Notice of preliminary results of full sunset reviews: Certain 
corrosion-resistant carbon steel flat products; cold-rolled carbon 
steel flat products; and cut-to-length carbon steel plate products from 
Germany.

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SUMMARY: On September 1, 1999, the Department of Commerce (``the 
Department'') initiated sunset reviews of the countervailing duty 
orders on certain corrosion-resistant carbon steel flat products, cold-
rolled carbon steel flat products, and cut-to-length carbon steel plate 
products (collectively the ``steel products'') from Germany (64 FR 
47767) pursuant to section 751(c) of the Tariff Act of 1930, as amended 
(``the Act''). On the basis of notices of intent to participate filed 
on behalf of domestic interested parties and substantive responses 
filed on behalf of domestic and respondent interested parties, the 
Department is conducting full (240-day) sunset reviews. As a result of 
these reviews, the Department preliminarily finds that revocation of 
the countervailing duty orders would be likely to lead to continuation 
or recurrence of countervailing subsidies at the levels indicated in 
the Preliminary Results of Review section of this notice.

EFFECTIVE DATE: March 27, 2000.

FOR FURTHER INFORMATION CONTACT: Eun W. Cho or Melissa G. Skinner, 
Office of Policy for Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
1698 or (202) 482-1560, respectively.

SUPPLEMENTARY INFORMATION:

The Applicable Statute

    Unless otherwise indicated, all citations to the Act are references 
to the provisions effective January 1, 1995, the effective date of the 
amendments made to the Act by the Uruguay Round Agreements Act 
(``URAA''). In addition, unless otherwise indicated, all citations to 
the Department regulations are to 19 CFR Part 351 (1999). Guidance on 
methodological or analytical issues relevant to the Department's 
conduct of sunset reviews is set forth in the Department Policy 
Bulletin 98:3--Policies Regarding the Conduct of Five-year (``Sunset'') 
Reviews of Antidumping and Countervailing Duty Orders; Policy Bulletin, 
63 FR 18871 (April 16, 1998) (Sunset Policy Bulletin).

Background

    On September 1, 1999, the Department initiated sunset reviews of 
the countervailing duty orders on the steel products from Germany (64 
FR 47767). We invited parties to comment. On the basis of notices of 
intent to participate filed on behalf of domestic interested parties 
and substantive responses filed on behalf of domestic and respondent 
interested parties, the Department is conducting full (240-day) sunset 
reviews. The Department is conducting these sunset reviews in 
accordance with sections 751 and 752 of the Act.
    In accordance with section 751(c)(5)(C)(v) of the Act, the 
Department may treat a review as extraordinarily complicated if it is a 
review of a transition order (i.e., an order in effect on January 1, 
1995). These reviews concern transition orders within the meaning of 
section 751(c)(6)(C)(i) of the Act. Therefore, on December 22, 1999, 
the Department determined that the sunset reviews of the countervailing 
duty orders on the steel products from Germany are extraordinarily 
complicated and extended the time limit for completion of the 
preliminary results of these reviews until not later than March 19, 
2000, in accordance with section 751(c)(5)(B) of the Act.\1\
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    \1\ See Extension of Time Limit for Preliminary Results of Full 
Five-Year Reviews, 64 FR 71726 (December 22, 1999).
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Scope of Review

    The products covered by these reviews are certain corrosion-
resistant carbon steel flat products, cold-rolled carbon steel flat 
products, and cut-to-length steel plate products from Germany.
    (1) Certain corrosion-resistant carbon steel flat products: The 
scope of countervailing duty order of certain corrosion-resistant 
carbon steel flat products (``corrosion-resistant'') includes flat-
rolled carbon steel products, of rectangular shape, either clad, 
plated, or coated with corrosion-resistant metals such as zinc, 
aluminum, or zinc-, aluminum-, nickel- or iron-based alloys, whether or 
not corrugated or painted, varnished or coated with plastics or other 
nonmetallic substances in addition to the metallic coating, in coils 
(whether or not in successively superimposed layers) and of a width of 
0.5 inch or greater, or in straight lengths which, if of a thickness 
less than 4.75 millimeters, are of a width of 0.5 inch or greater and 
which measures at least 10 times the thickness or if of a thickness of 
4.75 millimeters or more are of a width which exceeds 150 millimeters 
and measures at least twice the thickness, as currently classifiable in 
the Harmonized Tariff Schedule (``HTS'') under item numbers 
7210.31.0000, 7210.39.0000, 7210.41.0000, 7210.49.0030, 7210.49.0090, 
7210.60.0000, 7210.70.6030, 7210.70.6060, 7210.70.6090, 7210.90.1000, 
7210.90.6000, 7210.90.9000, 7212.21.0000, 7212.29.0000, 7212.30.1030, 
7212.30.1090, 7212.30.3000, 7212.30.5000, 7212.40.1000, 7212.40.5000, 
7212.50.0000, 7212.60.0000, 7215.90.1000, 7215.90.5000, 7217.12.1000, 
7217.13.1000, 7217.19.1000, 7217.19.5000, 7217.22.5000, 7217.23.5000, 
7217.29.1000, 7217.29.5000, 7217.32.5000, 7217.33.5000, 7217.39.1000, 
and 7217.39.5000. Included in this scope are flat-rolled products of 
non-rectangular 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 scope are flat-rolled steel 
products either plated or coated with tin, lead, chromium, chromium 
oxides, both tin and lead (``terne plate''), or both chromium and 
chromium oxides (``tin-free steel''), whether or not painted, varnished 
or coated with plastics or other nonmetallic substances in addition to 
the metallic coating. Also excluded from this scope are clad products 
in straight lengths of 0.1875 inch or more in composite thickness and 
of a width which exceeds 150 millimeters and measures at least twice 
the thickness. Also excluded from this scope are certain clad stainless 
flat-rolled products, which are three-layered corrosion-resistant 
carbon steel flat-rolled products less than 4.75 millimeters in 
composite thickness that consist of a carbon steel flat-rolled product 
clad on both sides with stainless steel in a ``20 percent-60 percent-20 
percent'' ratio.

[[Page 16177]]

    On September 22, 1999, the Department issued the final results of a 
changed circumstances review and revoked the order with respect to 
certain corrosion-resistant steel.\2\
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    \2\ See Notice of Final Results of Changed Circumstances 
Antidumping Duty and Countervailing Duty Reviews and Revocation of 
Orders in Part: Certain Corrosion-Resistant Carbon Steel Flat 
Products From Germany, 64 FR 51292 (September 22, 1999). The 
Department noted that the affirmative statement of no interest by 
petitioners, combined with the lack of comments from interested 
parties, is sufficient to warrant partial revocation. This partial 
revocation applies to certain corrosion-resistant deep-drawing 
carbon steel strip, roll-clad on both sides with aluminum (AlSi) 
foils in accordance with St3 LG as to EN 10139/10140. The 
merchandise's chemical composition encompasses a core material of U 
St 23 (continuous casting) in which carbon is less than 0.08 
percent; manganese is less than 0.30 percent; phosphorous is less 
than 0.20 percent; sulfur is less than 0.015 percent; aluminum is 
less than 0.01 percent; and the cladding material is a minimum of 99 
percent aluminum with silicon/copper/iron of less than 1 percent. 
The products are in strips with thicknesses of 0.07mm to 4.0mm 
(inclusive) and widths of 5mm to 800mm (inclusive). The thickness 
ratio of aluminum on either side of steel may range from 3 percent/
94 percent/3 percent to 10 percent/80 percent/10 percent.
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    (2) Certain cold-rolled carbon steel flat products: The scope of 
countervailing duty order of certain cold-rolled carbon steel flat 
products includes cold-rolled (cold-reduced) carbon steel flat-rolled 
products, of rectangular shape, neither clad, plated nor coated with 
metal, whether or not painted, varnished or coated with plastics or 
other nonmetallic substances, in coils (whether or not in successively 
superimposed layers) and of a width of 0.5 inch or greater, or in 
straight lengths which, if of a thickness less than 4.75 millimeters, 
are of a width of 0.5 inch or greater and which measures at least 10 
times the thickness or if of a thickness of 4.75 millimeters or more 
are of a width which exceeds 150 millimeters and measures at least 
twice the thickness, as currently classifiable in the Harmonized Tariff 
Schedule (``HTS'') under item numbers 7209.11.0000, 7209.12.0030, 
7209.12.0090, 7209.13.0030, 7209.13.0090, 7209.14.0030, 7209.14.0090, 
7209.21.0000, 7209.22.0000, 7209.23.0000, 7209.24.1000, 7209.24.5000, 
7209.31.0000, 7209.32.0000, 7209.33.0000, 7209.34.0000, 7209.41.0000, 
7209.42.0000, 7209.43.0000, 7209.44.0000, 7209.90.0000, 7210.70.3000, 
7210.90.9000, 7211.30.1030, 7211.30.1090, 7211.30.3000, 7211.30.5000, 
7211.41.1000, 7211.41.3030, 7211.41.3090, 7211.41.5000, 7211.41.7030, 
7211.41.7060, 7211.41.7090, 7211.49.1030, 7211.49.1090, 7211.49.3000, 
7211.49.5030, 7211.49.5060, 7211.49.5090, 7211.90.0000, 7212.40.1000, 
7212.40.5000, 7212.50.0000, 7217.11.1000, 7217.11.2000, 7217.11.3000, 
7217.19.1000, 7217.19.5000, 7217.21.1000, 7217.29.1000, 7217.29.5000, 
7217.31.1000, 7217.39.1000, and 7217.39.5000. Included in this scope 
are flat-rolled products of non-rectangular 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 
scope is certain shadow mask steel; i.e., aluminum-killed, cold-rolled 
steel coil that is open-coil annealed, has a carbon content of less 
than 0.002 percent, is of 0.003 to 0.012 inch in thickness, 15 to 30 
inches in width, and has an ultra flat, isotropic surface.
    (3) Certain cut-to-length carbon steel plate products: The scope of 
countervailing duty order on certain cut-to-length carbon steel plate 
products (``cut-to-length steel'') includes 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 Schedule (``HTS'') under item numbers 7208.40.3030, 
7208.40.3060, 7208.51.0030, 7208.51.0045, 7208.51.0060, 7208.52.0000, 
7208.53.0000, 7208.90.0000, 7210.70.3000, 7210.90.9000, 7211.13.0000, 
7211.14.0030, 7211.14.0045, 7211.90.0000, 7212.40.1000, 7212.40.5000, 
and 7212.50.0000. Included are flat-rolled products of non-rectangular 
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 is grade X-70 plate.
    On August 25, 1999, the Department issued the final results of a 
changed-circumstances review revoking the order in part, with respect 
to certain carbon cut-to-length steel plate with a maximum thickness of 
80 mm in steel grades BS 7191, 355 EM and 355 EMZ, as amended by Sable 
Offshore Energy Project Specification XB MOO Y 15 0001, types 1 and 
2.\3\
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    \3\ See Certain Cut-to-Length Carbon Steel Plate from Finland, 
Germany, and United Kingdom: Final Results of Changed Circumstances 
Antidumping Duty and Countervailing Duty Reviews, and Revocation of 
Orders in Part, 64 FR 46343 (August 25, 1999).
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    The HTS item numbers are provided for convenience and custom 
purposes. The written description remains dispositive.

Analysis of Comments Received

    All issues raised in substantive responses and rebuttals by parties 
to these sunset reviews are addressed in the Issues and Decision 
Memorandum (``Decision Memo'') from Jeffrey A. May, Director, Office of 
Policy, Import Administration, to Richard W. Moreland, Acting Assistant 
Secretary for Import Administration, dated March 20, 2000, which is 
hereby adopted and incorporated by reference into this notice. The 
issues discussed in the attached Decision Memo include the likelihood 
of continuation or recurrence of countervailable subsidy, the net 
countervailable subsidy likely to prevail were the order revoked, and 
the nature of the subsidy. 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 B-099, the Central 
Records Unit, of the Main Commerce building.
    In addition, a complete version of the Decision Memo can be 
accessed directly on the Web at www.ita.doc.gov/import--admin/records/
frn. The paper copy and electronic version of the Decision Memo are 
identical in content.

Preliminary Results of Review

    We preliminarily determine that revocation of the countervailing 
duty orders would be likely to lead to continuation or recurrence of a 
countervailable subsidy at the following net subsidy rates.

------------------------------------------------------------------------
                                                                Margin
                   Manufacturer/exporters                     (percent)
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Corrosion-resistant carbon steel flat products: Country-            0.54
 wide rate.................................................

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Cold-rolled carbon steel flat products: Country-wide rate..         0.55
Cut-to-length steel plate products:
    Salzgitter.............................................         1.62
    TKS....................................................         0.51
    Country-wide (Dillinger)...............................        14.84
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    Although the programs included in our calculation of the net 
countervailable subsidy likely to prevail if the orders were revoked do 
not fall within the definition of an export subsidy under Article 
3.1(a) of the Subsidies Agreement, they may be subsidies described in 
Article 6, if the net countervailable subsidy exceeds five percent, as 
measured in accordance with Annex IV of the Subsidies Agreement. The 
Department, however, has no information with which to make such a 
calculation; nor do we believe it appropriate to attempt such a 
calculation in the course of a sunset review. Moreover, we note that as 
of January 1, 2000, Article 6.1 has ceased to apply (see Article 31 of 
the Subsidies Agreement). As such, we are providing the Commission the 
following program descriptions:
    Capital Investment Grants: This non-recurring program provided 
grants to reimburse a certain percentage of acquisition-cost of assets 
purchased or produced after July 1981 but prior to January 1986.
    Investment Premium Act: Under this non-recurring program, which was 
supposedly in effect from 1969 through 1989, grants were provided to 
companies investing in specific regions of Germany for projects 
implemented by the company within three years of the certification.
    Joint Scheme: This non-recurring program, which was signed in 
October 1969 and came into force in January 1970, was designed to 
assist companies in depressed areas.
    Aid for Closure of Steel Operations: Based on two laws, this non-
recurring program was created to reduce the economic and social costs 
of plant closings in the steel industry between 1987 and 1990.
    Upswing East: This non-recurring program was established to provide 
a special investment allowance in five new states in Berlin.
    TRA/BvS: The purpose of this non-recurring program is to take over 
the government-held assets in the former GDR and place them within the 
competition-directed market economy of the unified Germany.
    SVK grant: The Government of Saarland and Dillinger's parent 
company, Usinor Sacilor, created a new holding company, DHS, making 
Dillinger and Saarstahl wholly-owned subsidiaries of DHS. In this 
restructuring process, the governments of Germany and Saarland forgave 
debts owed to them by Saarstahl. Also, private creditors forgave 
Saarstahl's debts as a part of the aforementioned restructuring.
    Structural Improvement Aids: This program was created to provide 
funds for companies in the iron and steel industry to cover severance 
pay and transitional assistance for steel workers affected by the 
restructuring plan within the industry and to assist steel companies 
with the costs associated with plant closures.
    Ruhr District Action Program: This program provided grants for 
investments in the Ruhr region. Under this program, grants relating to 
environmental protection were available exclusively to the steel 
industry.
    ECSC 56: This program was created to provide assistance to persons 
who lost their jobs in iron, steel, and coal industries.
    ECSC 54: This program was available only to the iron, steel, and 
coal industries to purchase new equipment or finance modernization.
    ECSC 54 Interest: This program was available only to the iron, 
steel, and coal industries providing rebates during the restructuring 
and modernization of the industry beginning in the 1980's.
    Any interested party may request a hearing within 30 days of 
publication of this notice in accordance with 19 CFR 351.310(c). Any 
hearing, if requested, will be held on May 17, 2000. Interested parties 
may submit case briefs no later than May 8, 2000, in accordance with 19 
CFR 351.309(c)(1)(i). Rebuttal briefs, which must be limited to issues 
raised in the case briefs, may be filed not later than May 15, 2000. 
The Department will issue a notice of final results of this sunset 
review, which will include the results of its analysis of issues raised 
in any such comments and/or at a hearing, no later than July 27, 2000.
    We are issuing and publishing this determination and notice in 
accordance with sections section 751(c), 752, and 777(i) of the Act.

    Dated: March 20, 2000.
Richard W. Moreland,
Acting Assistant Secretary for Import Administration.
[FR Doc. 00-7493 Filed 3-24-00; 8:45 am]
BILLING CODE 3510-DS-P