[Federal Register Volume 66, Number 9 (Friday, January 12, 2001)]
[Notices]
[Pages 2885-2887]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-975]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-475-812]


Grain-Oriented Electrical Steel From Italy; 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 July 7, 2000, the Department of Commerce (the Department) 
published in the Federal Register its preliminary results of the 
administrative review of the countervailing duty order on grain-
oriented electrical steel for the period January 1, 1998 through 
December 31, 1998.
    Based on our analysis of the comments received, and the decision of 
the Court of Appeals for the Federal Circuit in Delverde S.r.L. v. 
United States, 202 F.3d 1360 (Fed. Cir. 2000) (Delverde III), the 
Department has reexamined its change in ownership analysis and 
methodology. As a result, 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: January 12, 2001.

FOR FURTHER INFORMATION CONTACT: Stephanie Moore or Darla Brown, Office 
of AD/CVD Enforcement VI, Group II, Import Administration, U.S. 
Department of Commerce, Room 4012, 14th Street and Constitution Avenue, 
N.W., Washington, D.C. 20230. Telephone numbers (202) 482-3692 or (202) 
482-2849, respectively.

SUPPLEMENTARY INFORMATION:

Applicable Statute

    Unless otherwise indicated, all citations to the statute are 
references to the provisions of the Tariff Act of 1930 (the Act), as 
amended by the Uruguay Round Agreements Act (URAA) effective January 1, 
1995. In addition, unless otherwise indicated, all citations to the 
Department's regulations are to the regulations codified at 19 CFR part 
351 (1999).

Background

    On July 7, 2000, the Department published the preliminary results 
of the administrative review of the countervailing duty order on grain-
oriented electrical steel. See Grain-Oriented Electrical Steel from 
Italy; Preliminary Results of Countervailing Duty Administrative Review 
and Extension of Time Limit for Final Results of Countervailing Duty 
Administrative Review, 65 FR 41950 (July 7, 2000). This review covers 
one manufacturer/exporter, Acciai Speciali Terni S.p.A. (AST). The 
review covers the period January 1, 1998 through December 31, 1998, and 
28 programs.
    In the preliminary results, the Department invited interested 
parties to comment in their case briefs on the implications for this 
proceeding, if any, of the Delverde III decision. Both petitioners and 
AST provided comments in their case and rebuttal briefs. On September 
28, 2000, we sent a questionnaire soliciting information from AST, the 
Government of Italy (GOI) and the European Commission (EC) regarding 
the change in ownership issue. On October 20, 2000, AST submitted its 
response. The Department issued supplemental questionnaires to the 
respondents on October 27, 2000, and received responses on November 14, 
2000.
    On November 21, 2000, the Department issued its interpretation of 
Delverde III and its revised change in ownership approach in the Draft 
Results of Redetermination Pursuant to Court Remand, Acciai Speciali 
Terni S.p.A. v. United States (Draft Redetermination), which pertains 
to the Final Affirmative Countervailing Duty Determination: Stainless 
Steel Plate in Coils from Italy, 64 FR 15508 (March 31, 1999). On 
November 22, 2000, we placed the public version of this Draft 
Redetermination on the record of this administrative review and 
provided interested parties an opportunity to comment on the change in 
ownership approach set forth in the Draft Redetermination. On December 
6, 2000, petitioners and AST submitted comments. A public hearing was 
held on December 15, 2000, in which both parties participated. On 
December 19, 2000, the Department issued the Final Results of 
Redetermination Pursuant to Court Remand, Acciai Speciali Terni S.p.A. 
v. United States (Final Redetermination), which was placed on this 
record as well.

Scope of the Review

    Imports covered by this review are shipments of grain-oriented 
electrical steel from Italy, 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 millimeters, in coils of any width, or in straight lengths which 
are of a width measuring at least 10 times the thickness. The products 
covered by this review are provided for under the following item 
numbers of the Harmonized Tariff Schedule of the United States (HTSUS): 
7225.10.0030, 7226.10.1030, 7226.10.5015, and 7226.10.5065. Although 
the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the scope of this proceeding is 
dispositive.

Analysis of Comment Received

    All issues raised in the case and rebuttal briefs submitted by 
parties to this administrative review are addressed in the ``Issues and 
Decision Memorandum'' (Decision Memorandum) from Holly A. Kuga, Acting 
DAS, Group II, Import Administration, to Troy H. Cribb, Assistant 
Secretary for Import Administration, dated concurrent with this notice, 
which is hereby adopted 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 internet at http://ita.doc.gov/import_admin/records/frn, under the heading ``Italy.'' The paper copy and electronic version 
of the Decision Memorandum are identical in content.

[[Page 2886]]

Changes Since the Preliminary Results

    Based on our analysis of comments received, and the Department's 
revised change in ownership approach based on the Court's ruling in 
Delverde III, we have made certain changes to the net subsidy rate. 
These changes are discussed in the relevant sections of the Decision 
Memorandum.

Final Results of Review

    In accordance with 19 CFR 351.212(b), we calculated an individual 
subsidy rate for the producer/exporter subject to this review. We will 
instruct the U.S. Customs (Customs) to assess countervailing duties as 
indicated below on all appropriate entries. For the period January 1, 
1998, through December 31, 1998, we determine the net subsidy rate for 
the reviewed company to be as follows:

------------------------------------------------------------------------
                                 Margin
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                   Manufacturer/Exporter                       Percent
------------------------------------------------------------------------
AST........................................................        14.25
------------------------------------------------------------------------

    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: Grain-Oriented Electrical Steel from 
Italy, 59 FR 18357 (April 18, 1994). 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, 1998, through 
December 31, 1998, 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 is issued and published in accordance 
with sections 751(a)(1) and 777(i)(1) of the Act (19 U.S.C. 1675(a)(1) 
and 19 U.S.C. 1677f(i)(1)).

    Dated: January 3, 2002.
Richard W. Moreland,
Acting Assistant Secretary for Import Administration.

Appendix I--Issues Discussed in Decision Memorandum

http://ita.doc.gov/import_ admin/records/frn, under the heading 
(``Italy'').

Methodology and Background Information

I. Change in Ownership
    A. Background and Calculation Methodology
II. Subsidies Valuation Information
    A. Allocation Period
    B. Equityworthiness
    C. Creditworthiness
    D. Benchmark / Discount Rate
III. Facts Available
    A. Adverse Facts Available

Analysis of Programs

I. Programs Conferring Subsidies
    A. Equity Infusions
    B. Debt Forgiveness: 1988-1990 Restructuring Plan
    C. Debt Forgiveness: 1993-1994 Restructuring Plan
    D. Interest Contributions on IRI Loans/Bond Issues under Law 
675/77
    E. Pre-Privatization Retirement Benefits under Law 451/94
    F. Exchange Rate guarantees under Law 796/76

European Commission Programs

    A. ECSC Loans under Article 54
    B. European Social Fund (ESF)
II. Programs Not Used
    A. Rotation Fund
    B. Grants Under Law 10/81--Energy Conservation
    C. Brite-EuRam Project Grants
    D. Loan from IRI to KAI for the Purchase of AST
    E. Lending from the Ministry of Industry under Law 675/77
    F. Mortgage Loans from the Ministry of Industry Under Law 675/77
    G. Personnel Retraining Grants under Law 675/77
    H. Capital Grants under Law 675/77
    I. Reductions of the VAT under Law 675/77
    J. Worker Training under Law 181/89 (Early Retirement Provision)
    K. Reindustrialization under Law 181/89
    L. Law 488/92 Investment Grants
    M. Subsidized Export Financing Under Law 227/77
    N. Finsider Loans
    O. Interest Subsidies under Law 617/81
    P. Financing under Law 464/7
    Q. Interest Contributions under the Sabatini Law (Law 1329/65)
    R. Social Security Exemptions
    S. ILOR and IRPEG Exemptions
    T. Law 345/92: Benefits for Early Retirement Program Name
III. Analysis of Comments
    Comment 1: Change In Ownership (Privatization)--Interpretation 
of Delverde III
    Comment 2: The Department's New Change In Ownership Approach
    Comment 3: Successor-in-Interest Test
    Comment 4: WTO Implications on Change in Ownership
    Comment 5: Application of the Department's New Approach to 
Change In Ownership
    Comment 6: Facts Otherwise Available
    Comment 7: Spin-Off Transactions
    Comment 8: 1993 Debt Forgiveness Apportionment
    Comment 9: 1993 Gross Debt vs. Net Debt
    Comment 10: 1993 Creditworthiness
    Comment 11: Countervailability of European Social Fund

[[Page 2887]]

    Comment 12: Countervailability of European Coal and Steel 
Community Article 54 Loans
    Comment 13: Countervailability of Pre-Privatization Retirement 
Benefits under Law 451/94
    Comment 14: 1988 Equity Infusion

[FR Doc. 01-975 Filed 1-11-01; 8:45 am]
BILLING CODE 3510-DS-P