[Federal Register Volume 65, Number 122 (Friday, June 23, 2000)]
[Notices]
[Pages 39129-39131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-15961]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-475-812]


Grain-Oriented Electrical Steel From Italy; Preliminary Results 
of Full Sunset Review of Countervailing Duty Order

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

ACTION: Notice of preliminary results of full sunset review: grain-
oriented electrical steel from Italy.

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SUMMARY: On December 1, 1999, the Department of Commerce (``the 
Department'') initiated a sunset review of the countervailing duty 
order on grain-oriented electrical steel (``GOES'') from Italy (64 FR 
67247) 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 responses from respondent interested 
parties, the Department determined to conduct an full (240-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 Preliminary Results of Review.

EFFECTIVE DATE: June 23, 2000.

FOR FURTHER INFORMATION CONTACT: Kathryn B. McCormick or James Maeder 
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-
1930 or (202) 482-3330, 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 December 1, 1999, the Department initiated a sunset review of 
the countervailing duty order on GOES from Italy (64 FR 67247), 
pursuant to section 751(c) of the Act. The Department received a notice 
of intent to participate on behalf of Allegheny Ludlum Corporation 
(``Allegheny Ludlum''), AK Steel Corporation (``AK Steel''), Butler 
Armco Independent Union, the United Steelworkers of America AFL-CIO/
CLC, and the Zanesville Armco Independent Union (collectively, 
``domestic interested parties''), within the applicable deadline 
(December 16, 1999) specified in section 351.218(d)(1)(i) of the Sunset 
Regulations. Allegheny Ludlum and AK Steel claimed interested-party 
status under section 771(9)(C) of the Act, as U.S. producers of a 
domestic like product. The unions listed above are interested parties 
pursuant to section 771(9)(D) of the Act, because they are certified or 
recognized unions or groups of workers representative of the industry 
engaged in the manufacture, production, or wholesale in the United 
States of the domestic like product.
    Domestic interested parties state that Alleghney Ludlum, Armco Inc. 
(``Armco''), United Steel Workers of America, Butler Armco Independent 
Union, and Zanesville Armco Independent Union were the petitioners in 
the initial investigation (see January 3, 2000, substantive response of 
domestic interested parties at 5). Domestic interested parties note 
that, on September 30, 1999, AK Steel acquired Armco, and assumed 
control of Armco's production of GOES. Id. Accordingly, AK Steel is the 
successor of petitioner Armco, and has replaced Armco as domestic 
interested party for purposes of this sunset review and all other 
administrative reviews. Id. Additionally, domestic interested parties 
state that they are participants in the ongoing administrative review. 
Id.
    On December 20, 1999, we received a response from the European 
Union Delegation of the European Commission (``EC'') expressing its 
willingness to participate in this review as the authority responsible 
for defending the interest of the Member States of the

[[Page 39130]]

European Union (``EU'') (see December 20, 1999, response of the EC at 
1-2). On December 29, 1999, we received a response from the Government 
of Italy (``GOI'') expressing its willingness to participate in this 
review, as the government of a country in which subject merchandise is 
produced and exported. The EC and GOI note that they have in the past 
participated in this proceeding (see December 20, 1999, response of the 
EC at 2, and the December 29, 1999, response of the GOI at 1).
    On January 3, 2000, we received a complete substantive response 
from domestic interested parties, within the 30-day deadline specified 
in the Sunset Regulations under section 351.218(d)(3)(i), and a 
complete substantive responses from Acciai Speciali Terni S.p.A. 
(``AST'') and Acciai Speciali Terni USA, Inc. (``AST-USA''), respondent 
interested parties under section 771(9)(A) of the Act because AST is a 
foreign producer and exporter of the subject merchandise and AST-USA is 
an importer of subject merchandise.
    On January 10, 2000, we received rebuttal comments from domestic 
interested parties. Pursuant to 19 CFR 351.218 (e)(2)(i), the 
Department determined to conduct a full (240-day) sunset review of this 
order.\1\
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    \1\ See June 19, 2000, Memorandum for Jeffrey A. May, Re: GOES 
from Italy; Adequacy of Respondent Interested Party Response to the 
Notice of Initiation.
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    On January 12, 2000, we requested from the GOI and AST 
clarification of the data submitted in their responses of December 29, 
1999, and January 3, 2000, respectively, to be submitted by January 22, 
2000.\2\ On January 21, 2000, we received a response from AST in 
response to the Department's request for additional information 
concerning the volume of company shipments; we also received a request 
from the GOI, which we granted, for an extension of the deadline to 
submit a response until February 1, 2000. Subsequently, on February 1, 
2000, we received a response from the GOI to our above request.
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    \2\ See January 12, 2000, Letters from Jeffrey A. May to Lewis 
E. Leibowitz, counsel to AST and AST-USA, and Enrico Nardi, First 
Counselor for Economic and Commercial Affairs, Embassy of Italy.
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    On February 11, 2000, the Department received the public version of 
a document from domestic interested parties in which they state that, 
despite the new information from the GOI, their research indicates that 
there have been significant volumes of GOES shipped by AST to the 
United States (see February 11, 2000, comments of domestic interested 
parties at 2-3). Further, domestic interested parties requested that 
the Department require AST to provide specific information in a 
supplemental response concerning the disposition of each shipment 
listed in the domestic interested parties' exhibit (id. at 3); however, 
the Department did not comply with this request.
    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)(i) of the Act. Accordingly, on January 20, 2000, the 
Department determined that the sunset review of GOES from Italy is 
extraordinarily complicated, and extended the time limit for completion 
of the preliminary results of this review until not later than June 19, 
2000 (65 FR 3206), in accordance with section 751(c)(5)(B) of the Act.

Scope of Review

    The merchandise subject to this review is Italian GOES, which is a 
flat-rolled alloy steel product containing by weight at least 0.6 
percent of silicon, not more than 0.08 percent of carbon, not more than 
1.0 percent of aluminum, and no other element in an amount that would 
give the steel the characteristics of another alloy steel, of a 
thickness of no more than 0.56 millimeter, in coils of any width, or in 
straight lengths which are of a width measuring at least ten times the 
thickness. The merchandise is currently classifiable in the Harmonized 
Tariff Schedule (``HTS'') under item numbers 7225.10.0030, 
7226.10.1030, 7226.10.5015, and 7226.10.5065. Although HTS subheadings 
are provided for convenience and customs purposes, our written 
description of the scope of this proceeding is 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 Troy H. Cribb, Acting Assistant Secretary for 
Import Administration, dated June 19, 2000, which is hereby adopted by 
this notice. The issues discussed in the Decision Memo include the 
likelihood of continuation or recurrence of subsidy and the net 
countervailable subsidy likely to prevail were the order revoked. 
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 memo are identical in 
content.

Preliminary 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.

------------------------------------------------------------------------
                                                               Net
                                                         countervailable
                   Producer/exporter                       subsidy  (in
                                                             percent)
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All producers/exporters from Italy.....................          24.46
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Nature of the Subsidy

    In the Sunset Policy Bulletin (63 FR 18876), the Department states 
that, consistent with section 752(a)(6) of the Act, the Department will 
provide to the Commission information concerning the nature of the 
subsidy, and whether the subsidy is a subsidy described in Article 3 or 
Article 6.1 of the Subsidies Agreement. Although the programs at issue 
do not fall within Article 3 of the Subsidies Agreement, some or all of 
them could be found to be inconsistent with Article 6.1. For example, 
the net countervailable subsidy may exceed five percent. 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 
with program descriptions in our Decision Memo.
    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 August 16, 2000, in accordance 
with 19 CFR 351.310(d). Interested parties may submit case briefs no 
later than August 7, 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 August 14, 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

[[Page 39131]]

any such comments, no later than October 26, 2000.
    This five-year (``sunset'') review and notice are in accordance 
with sections 751(c), 752, and 777(i)(1) of the Act.

    Dated: June 19, 2000.
Richard W. Moreland,
Acting Assistant Secretary for Import Administration.
[FR Doc. 00-15961 Filed 6-22-00; 8:45 am]
BILLING CODE 3510-DS-P