[Federal Register Volume 66, Number 136 (Monday, July 16, 2001)]
[Notices]
[Pages 37007-37009]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-17719]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-357-815]


Final Affirmative Countervailing Duty Determination: Certain Hot-
Rolled Carbon Steel Flat Products From Argentina

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

ACTION: Notice of final affirmative countervailing duty investigation.

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SUMMARY: On February 21, 2001, the Department of Commerce (the 
Department) published in the Federal Register its preliminary 
affirmative determination in the countervailing duty investigation of 
certain hot-rolled carbon steel flat products from Argentina for the 
period January 1, 1999 through December 31, 1999.
    The net subsidy rates in the Final Determination differ from those 
of the Preliminary Determination. The revised final net subsidy rate 
for the investigated company is listed below in the ``Suspension of 
Liquidation'' section of this notice.

EFFECTIVE DATE: July 16, 2001.

FOR FURTHER INFORMATION CONTACT: Eric B. Greynolds at (202) 482-6071 or 
Darla Brown at (202) 482-2849, Office of AD/CVD Enforcement VI, Group 
II, Import Administration, International Trade Administration, U.S. 
Department of Commerce, Room 4012, 14th Street and Constitution Avenue, 
NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions effective January 1, 1995, the effective 
date of the amendments made to the Tariff Act of 1930 (the Act) by the 
Uruguay Round Agreements Act (URAA). In addition, unless otherwise 
indicated, all citations to the Department's regulations are to the 
regulations codified at 19 CFR part 351 (2000).

Background

    On February 21, 2001, the Department published the results of its 
preliminary determination in the investigation of certain hot-rolled 
carbon steel flat products from Argentina. See Notice of Preliminary 
Affirmative Countervailing Duty Determination and Alignment of Final 
Countervailing Duty Determination With Final Antidumping Duty 
Determination: Certain Hot-Rolled Carbon Steel Flat Products from 
Argentina, 66 FR 10990 (February 21, 2001) (Preliminary Determination). 
We invited interested parties to comment on the Preliminary 
Determination. On March 8, 2001, we received comments from petitioners. 
We received no other comments.
    This investigation covers a single producer/exporter, Siderar 
Sociedad Anomina Industrial & Commercial (Siderar) for the period 
January 1, 1999 through December 31, 1999.

Scope of the Investigation

    The merchandise subject to this investigation is certain hot-rolled 
flat-rolled carbon-quality steel products of a rectangular shape, of a 
width of 0.5 inch or greater, neither clad, plated, nor coated with 
metal and whether or not painted, varnished, or coated with plastics or 
other non-metallic substances, in coils (whether or not in successively 
superimposed layers), regardless of thickness, and in straight lengths, 
of a thickness of less than 4.75 mm and of a width measuring at least 
10 times the thickness. Universal mill plate (i.e., flat-rolled 
products rolled on four faces or in a closed box pass, of a width 
exceeding 150 mm, but not exceeding 1250 mm, and of a thickness of not 
less than 4 mm, not in coils and without patterns in relief) of a 
thickness not less than 4.0 mm is not included within the scope of this 
investigation.
    Specifically included within the scope of this investigation are 
vacuum degassed, fully stabilized (commonly referred to as 
interstitial-free (IF)) steels, high strength low alloy (HSLA) steels, 
and the substrate for motor lamination steels. IF steels are recognized 
as low carbon steels with micro-alloying levels of elements such as 
titanium or niobium (also commonly referred to as columbium), or both, 
added to stabilize carbon and nitrogen elements. HSLA steels are 
recognized as steels with micro-alloying levels of elements such as 
chromium, copper, niobium, vanadium, and molybdenum. The substrate for 
motor lamination steels contains micro-alloying levels of elements such 
as silicon and aluminum.

[[Page 37008]]

    Steel products included in the scope of this investigation, 
regardless of definitions in the Harmonized Tariff Schedule of the 
United States (HTS), are products in which: (i) Iron predominates, by 
weight, over each of the other contained elements; (ii) the carbon 
content is 2 percent or less, by weight; and (iii) none of the elements 
listed below exceeds the quantity, by weight, respectively indicated:
    1.80 percent of manganese, or
    2.25 percent of silicon, or
    1.00 percent of copper, or
    0.50 percent of aluminum, or
    1.25 percent of chromium, or
    0.30 percent of cobalt, or
    0.40 percent of lead, or
    1.25 percent of nickel, or
    0.30 percent of tungsten, or
    0.10 percent of molybdenum, or
    0.10 percent of niobium, or
    0.15 percent of vanadium, or
    0.15 percent of zirconium.
    All products that meet the physical and chemical description 
provided above are within the scope of this investigation unless 
otherwise excluded. The following products, by way of example, are 
outside or specifically excluded from the scope of this investigation:
     Alloy hot-rolled steel products in which at least one of 
the chemical elements exceeds those listed above (including, e.g., ASTM 
specifications A543, A387, A514, A517, A506).
     SAE/AISI grades of series 2300 and higher.
     Ball bearings steels, as defined in the HTS.
     Tool steels, as defined in the HTS.
     Silico-manganese (as defined in the HTS) or silicon 
electrical steel with a silicon level exceeding 2.25 percent.
     ASTM specifications A710 and A736.
     USS Abrasion-resistant steels (USS AR 400, USS AR 500).
     All products (proprietary or otherwise) based on an alloy 
ASTM specification (sample specifications: ASTM A506, A507).
     Non-rectangular shapes, not in coils, which are the result 
of having been processed by cutting or stamping and which have assumed 
the character of articles or products classified outside chapter 72 of 
the HTS.
    The merchandise subject to this investigation is classified in the 
HTS at subheadings: 7208.10.15.00, 7208.10.30.00, 7208.10.60.00, 
7208.25.30.00, 7208.25.60.00, 7208.26.00.30, 7208.26.00.60, 
7208.27.00.30, 7208.27.00.60, 7208.36.00.30, 7208.36.00.60, 
7208.37.00.30, 7208.37.00.60, 7208.38.00.15, 7208.38.00.30, 
7208.38.00.90, 7208.39.00.15, 7208.39.00.30, 7208.39.00.90, 
7208.40.60.30, 7208.40.60.60, 7208.53.00.00, 7208.54.00.00, 
7208.90.00.00, 7211.14.00.90, 7211.19.15.00, 7211.19.20.00, 
7211.19.30.00, 7211.19.45.00, 7211.19.60.00, 7211.19.75.30, 
7211.19.75.60, and 7211.19.75.90. Certain hot-rolled flat-rolled 
carbon-quality steel covered by this investigation, including: vacuum 
degassed fully stabilized; high strength low alloy; and the substrate 
for motor lamination steel may also enter under the following tariff 
numbers: 7225.11.00.00, 7225.19.00.00, 7225.30.30.50, 7225.30.70.00, 
7225.40.70.00, 7225.99.00.90, 7226.11.10.00, 7226.11.90.30, 
7226.11.90.60, 7226.19.10.00, 7226.19.90.00, 7226.91.50.00, 
7226.91.70.00, 7226.91.80.00, and 7226.99.00.00. Subject merchandise 
may also enter under 7210.70.30.00, 7210.90.90.00, 7211.14.00.30, 
7212.40.10.00, 7212.40.50.00, and 7212.50.00.00. Although the HTS 
subheadings are provided for convenience and U.S. Customs purposes, the 
Department's written description of the merchandise under investigation 
is dispositive.

Analysis of Comments Received

    All issues raised in the sole brief submitted in this 
countervailing duty investigation are addressed in the ``Issues and 
Decision Memorandum'' (Decision Memorandum) from Bernard T. Carreau, 
Deputy Assistant Secretary, AD/CVD Enforcement II, to Faryar Shirzad, 
Assistant Secretary for Import Administration, dated July 9, 2001, 
which is hereby adopted by this notice. The Department's responses to 
issues petitioners raised are included in the Decision Memorandum, 
which is attached to this notice as Appendix I. This public memorandum, 
which is on file in room B-099 of the Main Commerce Building, also 
contains a complete discussion of the issues raised in this 
investigation and the corresponding recommendations. In addition, a 
complete version of the Decision Memorandum can be accessed directly on 
the World Wide Web at http://ia.ita.doc.gov, under the heading 
``Federal Register Notices.'' The paper copy and electronic version of 
the Decision Memorandum are identical in content.

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we have 
calculated an individual rate for the company under investigation, 
Siderar. With respect to the ``all others'' rate, section 
705(c)(5)(A)(ii) of the Act provides that if the countervailable 
subsidy rates established for all exporters and producers individually 
investigated are determined entirely under section 776 of the Act, the 
Department may use any reasonable method to establish an ``all others'' 
rate for exporters and producers not individually investigated. In this 
case, although the rate for the only other investigated company is 
based entirely on facts available under section 776 of the Act, there 
is no other information on the record upon which we could determine an 
``all others'' rate. As a result, we have used the rate for Siderar as 
the ``all others'' rate.

------------------------------------------------------------------------
             Producer/exporter                    Net subsidy rate
------------------------------------------------------------------------
Siderar...................................  41.69% Ad Valorem.
All Others................................  41.69 % Ad Valorem.
------------------------------------------------------------------------

    In accordance with our preliminary affirmative determination, we 
instructed the U.S. Customs Service to suspend liquidation of all 
entries of certain hot-rolled carbon steel flat products from 
Argentina, which were entered or withdrawn from warehouse, for 
consumption on or after February 21, 2001, the date of the publication 
of our preliminary determination in the Federal Register. In accordance 
with section 703(d) of the Act, we instructed the U.S. Customs Service 
to discontinue the suspension of liquidation for merchandise entered on 
or after June 21, 2001, but to continue the suspension of liquidation 
of entries made between February 21, 2001 and June 20, 2001.
    We will reinstate suspension of liquidation under section 706(a) of 
the Act for all entries if the ITC issues a final affirmative injury 
determination and will require a cash deposit of estimated 
countervailing duties for such entries of merchandise in the amounts 
indicated above. If the ITC determines that material injury, or threat 
of material injury, does not exist, this proceeding will be terminated 
and all estimated duties deposited or securities posted as a result of 
the suspension of liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided that the ITC 
confirms that it will not disclose

[[Page 37009]]

such information, either publically or under an administrative 
protective order (APO), without the written consent of the Assistant 
Secretary for Import Administration.
    If the ITC determines that material injury, or threat of material 
injury, does not exist, these proceedings will be terminated. If 
however, the ITC determines that such injury does exist, we will issue 
a countervailing duty order.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Failure to comply is a violation of the APO.
    This determination is published pursuant to sections 705(d) and 
777(i) of the Act.

    Dated: July 9, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix I--Issues and Decision Memorandum

Methodology and Background Information

I. Use of Facts Available
II. Change in Ownership
III. Subsidies Valuation Information
    A. Allocation Period
    B. Equityworthiness
    C. Calculation of Discount Rate and Creditworthiness
IV. Programs Determined to Confer Subsidies
    A. Equity Infusions Bestowed From 1986 Through 1990
    B. GOA Assumption of SOMISA Debt
    C. Relief from Liquidation Costs
    D. Additional Subsidies From Reorganization/Privatization Under 
Decree 1144/92
    E. Investment Commitment
    F. Rebate of Indirect Taxes (Reembolso)
    G. Pre- and Post-Shipment Export Financing
    H. Zero-Tariff Turn Key Bill
V. Total Ad Valorem Rate
VI. Analysis of Comments
    Comment 1: Siderar's Uncreditworthiness
    Comment 2: Relief from Liquidation Costs

[FR Doc. 01-17719 Filed 7-13-01; 8:45 am]
BILLING CODE 3510-DS-P