[Federal Register Volume 66, Number 166 (Monday, August 27, 2001)]
[Notices]
[Pages 45007-45009]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-21606]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-423-809]


Stainless Steel Plate in Coils From Belgium: 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 April 23, 2001, the Department of Commerce published in the 
Federal Register its preliminary results of administrative review of 
the countervailing duty order on stainless steel plate in coils from 
Belgium for the

[[Page 45008]]

period September 4, 1998 through December 31, 1999. Based on our 
analysis of the comments received, we have made changes to ALZ N.V.'s 
net subsidy rate, and, as a result, the final results differ from the 
preliminary results. The final net subsidy rate for ALZ N.V. is listed 
below in the section entitled ``Final Results of Review.''

EFFECTIVE DATE: August 27, 2001.

FOR FURTHER INFORMATION CONTACT: Melani Miller, Jarrod Goldfeder, or 
Anthony Grasso, AD/CVD Enforcement, Group I, Office 1, Import 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone (202) 482-
0116, (202) 482-0189, or (202) 482-3853, respectively.

SUPPLEMENTARY INFORMATION:

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions of section 751(a) of the Tariff Act of 
1930, as amended by the Uruguay Round Agreements Act (``URAA'') 
effective January 1, 1995 (``the Act''). Similarly, unless otherwise 
indicated, all citations to the Department of Commerce's (``the 
Department'') regulations are to the current regulations as codified at 
19 CFR Part 351 (2000), including the new substantive countervailing 
duty regulations published in the Federal Register on November 25, 1998 
(63 FR 65348).

Background

    On May 11, 1999, the Department published in the Federal Register 
the countervailing duty order on stainless steel plate in coils from 
Belgium. See Notice of Amended Final Determinations: Stainless Steel 
Plate in Coils from Belgium and South Africa; and Notice of 
Countervailing Duty Orders: Stainless Steel Plate in Coils from 
Belgium, Italy and South Africa, 64 FR 25288 (May 11, 1999). In 
accordance with section 351.213(b)(1) of the Department's regulations, 
this review of the order covers ALZ N.V. (``ALZ''), the only company 
for which a review was specifically requested. This review covers 27 
programs.
    Since the publication of Stainless Steel Plate in Coils from 
Belgium: Preliminary Results of Countervailing Duty Administrative 
Review, 66 FR 20425 (April 23, 2001) (``Preliminary Results''), the 
following events have occurred.
    On April 25, 2001, the Department issued a supplemental 
questionnaire to ALZ. On May 3, 2001, ALZ submitted its response to 
this supplemental questionnaire.
    On May 22, 2001, the Government of Belgium (``GOB'') and the 
Government of Flanders (``GOF'') filed their combined case brief. On 
May 24, 2001, the petitioners in this proceeding (Allegheny Ludlum 
Corp., Armco, Inc., Lukens Inc., and United Steelworkers of America, 
AFL-CIO/CLC) and ALZ filed their case briefs. On June 8, 2001, the 
petitioners and ALZ filed rebuttal briefs. The GOB and the GOF did not 
file a rebuttal brief. The Department did not conduct a hearing in this 
review because none was requested.

Scope of the Review

    Imports covered by this review are shipments of certain stainless 
steel plate in coils. Stainless steel is an alloy steel containing, by 
weight, 1.2 percent or less of carbon and 10.5 percent or more of 
chromium, with or without other elements. The subject plate products 
are flat-rolled products, 254 mm or over in width and 4.75 mm or more 
in thickness, in coils, and annealed or otherwise heat treated and 
pickled or otherwise descaled. The subject plate may also be further 
processed (e.g., cold-rolled, polished, etc.) provided that it 
maintains the specified dimensions of plate following such processing. 
Excluded from the scope of this order are the following: (1) Plate not 
in coils, (2) plate that is not annealed or otherwise heat treated and 
pickled or otherwise descaled, (3) sheet and strip, and (4) flat bars. 
In addition, certain cold-rolled stainless steel plate in coils is also 
excluded from the scope of this order. The excluded cold-rolled 
stainless steel plate in coils is defined as that merchandise which 
meets the physical characteristics described above that has undergone a 
cold-reduction process that reduced the thickness of the steel by 25 
percent or more, and has been annealed and pickled after this cold 
reduction process.
    The merchandise subject to this order is currently classifiable in 
the Harmonized Tariff Schedule of the United States (``HTSUS'') at 
subheadings: 7219.11.00.30, 7219.11.00.60, 7219.12.00.05, 
7219.12.00.20, 7219.12.00.25, 7219.12.00.50, 7219.12.00.55, 
7219.12.00.65, 7219.12.00.70, 7219.12.00.80, 7219.31.00.10, 
7219.90.00.10, 7219.90.00.20, 7219.90.00.25, 7219.90.00.60, 
7219.90.00.80, 7220.11.00.00, 7220.20.10.10, 7220.20.10.15, 
7220.20.10.60, 7220.20.10.80, 7220.20.60.05, 7220.20.60.10, 
7220.20.60.15, 7220.20.60.60, 7220.20.60.80, 7220.90.00.10, 
7220.90.00.15, 7220.90.00.60, and 7220.90.00.80. Although the HTSUS 
subheadings are provided for convenience and for U.S. Customs Service 
(``Customs'') purposes, the written description of the scope of the 
order is dispositive.

Period of Review

    According to section 351.213(e)(2)(ii) of the Department's 
regulations, the first administrative review of a countervailing duty 
order should cover the period from the initial date of suspension of 
liquidation of the subject merchandise to the end of the most recently 
completed fiscal year. In this case, suspension of liquidation began on 
September 4, 1998. See Preliminary Countervailing Duty Determination 
and Alignment of Final Countervailing Duty Determination With Final 
Antidumping Duty Determination: Stainless Steel Plate in Coils From 
Belgium, 63 FR 47239 (September 4, 1998). Therefore, the period of 
review (``POR'') for which we are measuring countervailable subsidies 
is from September 4, 1998 through December 31, 1999.
    Because it is the Department's practice to calculate subsidy rates 
on an annual basis, we calculated a 1998 rate and a 1999 rate for ALZ. 
The rate calculated for 1998 will be applicable only to entries, or 
withdrawals from warehouse, for consumption made on and after September 
4, 1998 through the end of 1998.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this administrative review are addressed in the August 21, 2001 Issues 
and Decision Memorandum (``Decision Memorandum''), which is hereby 
adopted by this notice. Attached to this notice as an appendix is a 
list of the issues which parties have raised and to which we have 
responded in the Decision Memorandum. 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 the 
Central Records Unit, Room B-099 of the Department. In addition, a 
complete version of the Decision Memorandum can be accessed directly on 
the internet at http://ia.ita.doc.gov/frn/frnhome.htm. The paper copy 
and electronic version of the Decision Memorandum are identical in 
content.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made changes to 
ALZ's net subsidy rate by revising the allocation period used to 
allocate

[[Page 45009]]

certain non-recurring subsidies which have not been previously 
allocated.

Final Results of Review

    In accordance with section 351.221(b)(4)(i) of the Department's 
regulations, we calculated an individual subsidy rate for ALZ, the only 
producer/exporter subject to this administrative review. For the period 
September 4, 1998 through December 31, 1998, we determine the net 
subsidy rate for ALZ to be 3.25 percent; for January 1, 1999 and for 
the period May 11, 1999 through December 31, 1999, we determine the net 
subsidy rate for ALZ to be 1.78 percent. (In accordance with section 
703(d) of the Act, countervailing duties will not be assessed on 
entries made during the period January 2, 1999 through May 10, 1999.)
    We will instruct the Customs to assess countervailing duties as 
indicated above. The Department will also instruct Customs to collect 
cash deposits of estimated countervailing duties at the 1999 rate on 
the f.o.b. value of all shipments of the subject merchandise from ALZ 
entered, or withdrawn from warehouse, for consumption on or after the 
date of publication of the final results of this administrative 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 
section 351.213(b) of the Department's regulations. Pursuant to the 
Department's regulations at section 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 v. 
United States, 822 F.Supp. 782 (CIT 1993), and 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, are not 
changed by the results of this review.
    Therefore, 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 that company. Accordingly, the cash 
deposit rates that will be applied to non-reviewed companies covered by 
this order are those established in the most recently completed 
administrative proceeding conducted under 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 Certain Cut-to-Length Carbon Steel Plate from Mexico: 
Final Results of Countervailing Duty Administrative Review, 65 FR 
13368, 13369 (March 13, 2000). These rates shall apply to all non-
reviewed companies until a review of a company assigned these rates is 
requested. In addition, for the periods September 4, 1998 through 
January 1, 1999 and May 11, 2000 through December 31, 1999, 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 the Department's regulations at section 
351.305(a). Timely written notification of return or 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 and notice are 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: August 21, 2001.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.

Appendix--List of Issues Discussed in the Decision Memorandum

Methodology and Background Information

Responding Producers
Benchmarks for Long-term Loans and Discount Rates
Equity Methodology
Allocation Period

Analysis of Programs

I. Programs Determined to Confer Subsidies
    A. 1985 ALZ Share Subscriptions
    B. 1987 ALZ Common Share Transaction Between the GOB and Sidmar
    C. Industrial Reconversion Zones
    1. Alfin
    2. Albufin
    D. Regional Subsidies under the Economic Expansion Law of 1970
    1. Expansion Real Estate Tax Exemption
    2. Accelerated Depreciation
    E. Belgian Industrial Finance Company (``Belfin'') Loans
    F. Societe Nationale de Credite a l'Industrie (``SNCI'') Loans
    G. Subsidies Provided to Sidmar that are Attributable to ALZ
    1. 1984 Purchase of Sidmar's Common and Preference Shares
    2. Conversion of Sidmar's Debt to Equity (OCPC-to-PB) in 1985
    3. SidInvest
II. Programs Determined to Be Not Used During the POR
    A. Government of Belgium Programs
    1. Subsidies Provided to Sidmar that are Potentially 
Attributable to ALZ Water Purification Grants
    2. Societe Nationale pour la Reconstruction des Secteurs 
Nationaux
    3. Regional subsidies under the 1970 Law Investment and Interest 
Subsidies
    4. Reduced Social Security Contributions Pursuant to the Maribel 
Scheme (Article 35 of the Law of June 29, 1981)
    B. Government of Flanders Programs
    1. Regional subsidies under the 1970 Law
    a. Corporate Income Tax Exemption
    b. Capital Registration Tax Exemption
    c. Government Loan Guarantees
    d. 1993 Expansion Grant
    2. Special Depreciation Allowance
    3. Preferential Short-Term Export Credit
    4. Interest Rate Rebates
    C. Programs of the European Commission
    1. ECSC Article 54 Loans and Interest Rebates
    2. ECSC Article 56 Conversion Loans, Interest Rebates and 
Redeployment Aid
    3. European Social Fund Grants
    4. European Regional Development Fund Grants
    5. Resider II Program

Analysis of Comments

Comment 1: GOB Equity Infusions
Comment 2: Average Useful Life for Non-recurring Subsidies 
Benefitting Sidmar Which Have Not Been Previously Allocated
Comment 3: Reduced Social Security Contributions Pursuant to the 
Maribel Scheme
Comment 4: Cash Deposit Rate for Future Entries

[FR Doc. 01-21606 Filed 8-24-01; 8:45 am]
BILLING CODE 3510-DS-P