[Federal Register Volume 65, Number 67 (Thursday, April 6, 2000)]
[Notices]
[Pages 18063-18065]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-8555]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-427-810]


Corrosion-Resistant Carbon Steel Flat Products from France; Final 
Results of Expedited Sunset Review of Countervailing Duty Order

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

ACTION: Notice of Final Results of Expedited Sunset Review: Corrosion-
Resistant Carbon Steel Flat Products from France.

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SUMMARY: On September 1, 1999, the Department of Commerce (``the 
Department'') initiated a sunset review of the countervailing duty 
order on corrosion-resistant carbon steel flat products from France (64 
FR 47767) pursuant to section 751(c) of the Tariff Act of 1930, as 
amended (``the Act''). On the basis of a notice of intent to 
participate and adequate substantive comments filed on behalf of the 
domestic interested parties, as well as inadequate response from 
respondent interested parties, the Department determined to conduct an 
expedited (120 day) sunset review. Based on our analysis of the 
comments received, we find that revocation of the countervailing duty 
order would be likely to lead to continuation or recurrence of a 
countervailable subsidy at the levels listed below in the section 
entitled Final Results of the Review.

EFFECTIVE DATE: April 6, 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 a sunset review of 
the countervailing duty order on corrosion-resistant carbon steel flat 
products from France (64 FR 47767). We invited parties to comment. On 
the basis of a notice of intent to participate and adequate substantive 
response filed on behalf of the domestic interested parties, as well as 
inadequate response from respondent interested parties, the Department 
determined to conduct an expedited (120 day) sunset review. The 
Department is conducting this sunset review 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). This review concerns a transition order within the meaning of 
section 751(c)(6)(C)(i) of the Act. Therefore, on December 22, 1999, 
the Department determined that the sunset review of the countervailing 
duty order on corrosion-resistant steel from France is extraordinarily 
complicated and extended the time limit for completion of the final 
results of this review until not later than March 29, 2000, in 
accordance with section 751(c)(5)(B) of the Act.\1\
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    \1\ See Extension of Time Limit for Final Results of Expedited 
Five-Year Reviews, 64 FR 71726 (December 22, 1999).
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Scope of Review

    The products covered by this order are certain corrosion-resistant 
carbon steel flat products from France. These products include 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 of the United States (``HTSUS'') 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

[[Page 18064]]

other nonmetallic substances in addition to the metallic coating. Also 
excluded from the 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 the 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%-60%-20% ratio.
    The HTSUS item numbers are provided for convenience and customs 
purposes. The written description remains dispositive.

Analysis of Comments Received

    All issues raised in substantive responses by parties to this 
sunset review are addressed in the Issues and Decision Memorandum 
(``Decision Memo'') from Jeffrey A. May, Director, Office of Policy, 
Import Administration, to Robert S. LaRussa, Assistant Secretary for 
Import Administration, dated March 29, 2000, which is hereby adopted by 
this notice. The issues discussed in the attached Decision Memo include 
the likelihood of continuation or recurrence of 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.

Final Results of Review

    We determine that revocation of the countervailing duty order would 
be likely to lead to continuation or recurrence of the subsidy at the 
following net countervailable subsidy.\2\
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    \2\ In Inland Steel Industries, Inc. v. U.S., 188 F3d. 1349 
(Fed. Cir. 1999), the court affirmed several lower court decisions 
which had changed the net countervailing subsidy rate to 15.13 
percent from the 15.12 percent calculated in the original 
investigation.

------------------------------------------------------------------------
                                                                 Margin
                    Manufacturer/exporters                     (percent)
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Usinor.......................................................     15.13
Country-wide.................................................     15.13
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    Although the programs included in our calculation of the net 
countervailable subsidy likely to prevail if the order were revoked do 
not fall within Article 3 of the Subsidies Agreement, some or all of 
them may be subsidies as described in Article 6.1. For example, the net 
countervailable subsidy may exceed 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 only providing the Commission the following 
program descriptions:
    (1) PACS/FIS: This program of equity infusions was devised to 
restructure Usinor and its massive debt.
    (2) Grants in the Form of Shareholders' Advances: The Government of 
France (``GOF'') financed the recurring needs of Usinor through 
shareholders' advances beginning in 1982. These shareholders' advance 
carried no interest and there was no precondition for receipt of these 
funds.
    (3) Investment Subsidies: Under this program the French companies 
would receive subsides from the GOF for the purchase of fixed assets. 
Because the relevant parties did not provide sufficient information, 
based on best information available, the Department determined that the 
Investment Subsidies are specific rather than generally available.
    (4) Grants in the Form of Cancellation of Debt: The two former 
private majority shareholders of Usinor canceled a portion of debt owed 
to them by Usinor. The Department found that the debt forgiveness was 
provided at the direction of the GOF and, hence, countervailable.
    (5) ECSC 54: Under this program, investment loans are provided by 
the European Union for the purpose of purchasing new equipment or 
financing modernization. Because these loans are only available to 
companies in steel and coal industries, the Department found the loans 
countervailable.
    (6) CFDI: Under this program participative loans, which were by law 
available to all French companies, were issued by the CFDI. The 
borrower paid a lower-than-market interest rate plus a share of future 
profits according to an agreed upon formula. Because the GOF could not 
provide sufficient information, the Department determined that loans 
under this program are de facto limited to specific enterprise or 
industry and that, therefore, these loans are countervailable to the 
extent that they were provided on terms inconsistent with commercial 
considerations.
    (7) ECSC 56: The main purpose of these grants are to assist workers 
affected by the restructuring of the coal and steel industries. Because 
the Department did not have information pertaining to some specific 
details, it assumed that the extra government contribution relieved 
Usinor of an obligation and, therefore, is countervailable in its 
entirety.
    (8) Other Loan Guarantees: These guarantees were provided by, or 
were provided to guarantee loans from, Credit National, bank syndicates 
in which Credit National, participated, Caisse des Depots et 
Consignations, Groupement de l'Industrie Siderurgique, FDES, the ECSC, 
and the European Investment Bank. Because relevant parties did not 
provide sufficient information, the Department found, based on best 
information available, inter alia, the fees associated with these loan 
guarantees are specific rather than generally available, and therefore, 
countervailable.
    (9) Other Participative Loans: Because the Department had no 
information regarding the category of these loans and about the 
programs and because these loans were not reported, based on best 
information available and the calculation of the benefit from these 
loans, the Department determined that these loans are countervailable.
    This notice also serves as the only reminder to parties subject to 
administrative protective orders (``APO'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305 of the 
Department's regulations. Timely notification of the return or 
destruction of APO materials or conversion to judicial protective order 
is hereby requested. Failure to comply with the regulations and terms 
of an APO is a violation which is subject to sanction.
    We are issuing and publishing this determination and notice in 
accordance with sections section 751(c), 752, and 777(i) of the Act.


[[Page 18065]]


    Dated: March 29, 2000.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 00-8555 Filed 4-5-00; 8:45 am]
BILLING CODE 3510-DS-P