[Federal Register Volume 66, Number 189 (Friday, September 28, 2001)]
[Notices]
[Pages 49637-49639]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24406]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-560-813]


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

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

ACTION: Notice of Final Affirmative Countervailing Duty Investigation.

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SUMMARY: On April 20, 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 Indonesia for the period January 
1, 1999 through December 31, 1999.
    The net subsidy rate in the Final Determination differs from that 
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: September 28, 2001.

FOR FURTHER INFORMATION CONTACT: Stephanie Moore at (202) 482-3692 or 
Tipten Troidl at (202) 482-1767, 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 April 20, 2001, the Department published the preliminary results 
of investigation on certain hot-rolled carbon steel flat products from 
India. 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

[[Page 49638]]

Indonesia, 66 FR 20236, (April 20, 2001) (Preliminary Results). This 
investigation covers one manufacturer/exporter: P.T. Krakatau Steel 
(Krakatau). The investigation covers the period January 1, 1999, 
through December 31, 1999. The investigation covers 2 programs.
    We invited interested parties to comment on the Preliminary 
Determination. On August 10, 2001, we received comments from 
petitioners and respondents. On August 21, 2001, we received rebuttal 
comments from petitioners and respondents. A public hearing was held at 
the Department of Commerce on September 6, 2001.
    Although the deadline for this determination was originally 
September 17, 2001, in light of the events of September 11, 2001, and 
the subsequent closure of the Federal Government for reasons of 
security, the time frame for issuing this determination has been 
extended by four days.

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.
    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 case and rebuttal briefs by parties to 
this investigation are addressed in the ``Issues and Decision 
Memorandum'' (Decision Memorandum) dated September 19, 2001, which is 
hereby adopted by 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 investigation 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 World Wide Web at http://www.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, 
Krakatau. The ``all others'' rate is the rate calculated for Krakatau, 
the sole company subject to this investigation. For the period January 
1 1999, through

[[Page 49639]]

December 31, 1999, we determine the following net subsidy rates:

------------------------------------------------------------------------
             Producer/exporter               Net subsidy rate  [percent]
------------------------------------------------------------------------
P.T. Krakatau Steel.......................  10.21 Ad Valorem.
All Others................................  10.21 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 
Indonesia, which were entered or withdrawn from warehouse, for 
consumption on or after April 20, 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 August 18, 2001, but to continue the suspension of liquidation 
of entries made between April 20, 2001 and August 17, 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 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: September 21, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix I--Issues and Decision Memorandum

Methodology and Background Information

I. Subsidies Valuation Information
    A. Allocation Period
    B. Creditworthiness and Calculation of Discount Rate
    C. Equityworthiness

Analysis of Programs

I. Programs Conferring Subsidies
    A. GOI Equity Infusions
    B. Two Step Loan
II. Program Determined To Be Not Countervailable
III. Program Determined To Be Not Used
    A. Rediscount Loans from the Bank of Indonesia
IV. Total Ad Valorem Rate
V. Analysis of Comments
    Comment 1: Effects of Hyperinflation during 1998
    Comment 2: GOI's Equity Infusion to Krakatau
    Comment 3: GOI's Equity Infusion Specific to Krakatau
    Comment 4: Use of Consolidated Total Sales as the Denominator
    Comment 5: Feasibility Study and Equityworthiness
    Comment 6: Two Step Loan Program
    Comment 7: GOI Equity Infusions applying Adverse Facts Available
    Comment 8: Krakatau's Creditworthiness

[FR Doc. 01-24406 Filed 9-27-01; 8:45 am]
BILLING CODE 3510-DS-P