[Federal Register Volume 66, Number 192 (Wednesday, October 3, 2001)]
[Notices]
[Pages 50410-50412]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24753]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-549-818]


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

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 Thailand. Based on our analysis 
of the questionnaire responses, verification, and comments submitted by 
interested parties, we determine that subsidies are being conferred on 
the manufacture, production and export of certain hot-rolled carbon 
steel flat products in Thailand. The subsidy rates in this final 
determination differ from those in the preliminary determination. The 
revised final subsidy rates for the investigated producers/exporters 
are listed below in the ``Suspension of Liquidation'' section of this 
notice.

EFFECTIVE DATE: October 3, 2001.

FOR FURTHER INFORMATION CONTACT: Dana Mermelstein at (202) 482-1391, 
Sean Carey at (202) 482-3964, Javier Barrientos at (202) 482-2243, or 
Scott Lindsay at (202) 482-3782, Office of AD/CVD Enforcement VII, 
Group III, Import Administration, International Trade Administration, 
U.S. Department of Commerce, Room 7866, 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 Tariff Act of 1930, as amended (the Act). 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 results of its 
preliminary determination in the investigation of certain hot-rolled 
carbon steel flat products from Thailand. See Notice of Preliminary 
Affirmative Countervailing Duty Determination and Alignment With Final 
Antidumping Duty Determinations: Certain Hot-Rolled Carbon Steel Flat 
Products From Thailand, 66 FR 20251 (April 20, 2001) (Preliminary 
Determination). We invited interested parties to comment on the 
preliminary determination.
    In early May, we issued a supplemental questionnaire to the Royal 
Thai Government (RTG) and Sahaviriya Steel Industries Public Company 
Limited (SSI) (the respondents). On May 30, 2001, we received 
questionnaire responses from SSI and the RTG. On June 13, 2001, the 
Department published its notice, postponing the final determination in 
this investigation until September 17, 2001, pursuant to the 
postponement of the final determination in the companion antidumping 
duty investigation of certain hot-rolled carbon steel flat products 
from Thailand, with which this investigation is aligned. See Notice of 
Postponement of Final Antidumping Duty Determination: Certain Hot-
Rolled Carbon Steel Flat Products from Thailand; and Notice of 
Postponement of Final Countervailing Duty Determinations: Certain Hot-
Rolled Carbon Steel Flat Products from Thailand and South Africa, 66 FR 
31888 (June 13, 2001).
    On June 14, 2001, Bethlehem Steel Corporation, Gallatin Steel 
Company, IPSCO Steel Inc., LTV Steel Company, Inc., National Steel 
Corporation, Nucor Corporation, Steel Dynamics, Inc., U.S. Steel Group, 
a unit of USX Corporation, Weirton Steel Corporation, Independent 
Steelworkers Union, and the United Steelworkers of America (the 
petitioners), submitted a new subsidy allegation in this investigation 
pursuant to section 351.311 of the Department's regulations. See 
section 775 of the Act and 19 CFR 351.311(b). Petitioners alleged that 
benefits were provided to Thai hot-rolled steel producers under the 
Ministry of Industry's (MOI's) Steel Industrial Restructuring Plan 
(SIRP). On June 28, 2001, the Department decided to initiate on this 
program. See Memorandum to the File Regarding MOI's SIP Allegation. We 
subsequently issued supplemental questionnaires to the RTG and SSI. On 
July 9, 2001, we received the RTG's and SSI's responses to these 
supplemental questionnaires.
    On July 9, 2001, we received comments from the petitioners 
regarding the verification of the questionnaire responses. Verification 
of the questionnaire responses submitted by the RTG and SSI took place 
from July 16 through 27, 2001. Respondents and petitioners submitted 
timely case and rebuttal briefs in this investigation. A public hearing 
was held 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 timeframe for issuing this determination has been 
extended by four days.

Scope of the Investigation

    The merchandise subject to this investigation is certain hot-rolled 
carbon steel flat 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

[[Page 50411]]

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 to be included in the scope of this investigation, 
regardless of definitions in the Harmonized Tariff Schedule of the 
United States (HTSUS), 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., 
American Society for Testing and Materials (ASTM) specifications A543, 
A387, A514, A517, A506).
     Society of Automotive Engineers (SAE)/American Iron & 
Steel Institute (AISI) grades of series 2300 and higher.
     Ball bearings steels, as defined in the HTSUS.
     Tool steels, as defined in the HTSUS.
     Silico-manganese (as defined in the HTSUS) 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 HTSUS.
    The merchandise subject to this investigation is classified in the 
HTSUS 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 carbon steel flat 
products 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 HTSUS 
subheadings are provided for convenience and U.S. Customs purposes, the 
Department's written description of the merchandise under investigation 
is dispositive.

Analysis of Programs and Analysis of Comments Received

    The programs under investigation, as well as the issues raised in 
the case and rebuttal briefs submitted in this countervailing duty 
investigation are discussed and addressed in the Issues and Decision 
Memorandum in the Final Affirmative Countervailing Duty Determination: 
Certain Hot-Rolled Carbon Steel Flat Products from Thailand, from 
Joseph A. Spetrini, Deputy Assistant Secretary for AD/CVD Enforcement 
III, to Faryar Shirzad, Assistant Secretary for Import Administration, 
dated September 19, 2001 (Decision Memorandum), which is hereby adopted 
by this notice. Attached to this notice as an appendix is a list of the 
programs under investigation, as well as 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 the programs and 
issues raised in this investigation, and the corresponding 
recommendations in this public memorandum, which is on file in the 
Department's Central Records Unit, in Room B-099. In addition, 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 a rate for the company under investigation. We have 
determined that the total estimated countervailable subsidy rate for 
SSI is 2.38 percent ad valorem. With respect to the ``all others'' 
rate, section 705(c)(5)(A)(i) of the Act requires that the ``all 
others'' rate equal the weighted-average countervailable subsidy rates 
established for exporters and producers individually investigated, 
excluding any zero and de minimis countervailable subsidy rates. 
Therefore, because SSI is the only producer/exporter, we are using its 
rate as the ``all others'' rate.

------------------------------------------------------------------------
             Producer/exporter                 Subsidy rate  (Percent)
------------------------------------------------------------------------
Sahaviriya Steel Industries Public Company  2.38 Ad Valorem
 Ltd.
All others................................  2.38 Ad Valorem
------------------------------------------------------------------------

    In accordance with our preliminary affirmative determination, we 
instructed the U.S. Customs Service (Customs) to suspend liquidation of 
all entries of certain hot-rolled carbon steel flat products from 
Thailand, 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, and to require a 
cash deposit or bond for such entries of the merchandise in the amounts 
indicated in the Preliminary Determination. In accordance with section 
703(d)of the Act, we instructed Customs 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

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Act for all entries if the ITC issues a final affirmative injury 
determination, and we will require a cash deposit of the 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 and notice are issued and published in 
accordance with 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

I. Subsidies Valuation Information
    A. Allocation Period
    B. Discount Rates
    C. Calculation of Ad Valorem Subsidy Rate
II. Programs Determined to Confer Subsidies
    A. Incentives Under the Investment Promotion Act
    1. Duty Exemptions on Imports of Machinery Under IPA Section 28
    2. Duty Exemptions on Imports of Raw and Essential Materials 
Under IPA Section 30
    3. Duty Exemptions on Imports of Raw and Essential Materials 
Under IPA Section 36(1)
    4. Additional Tax Deductions Under IPA Section 35
    B. Provision of Electricity For Less Than Adequate Remuneration
III. Programs Determined Not to Confer Subsidies
    A. SSI and PPC Debt Restructuring
    B. VAT Exemptions under the Investment Promotion Act
IV. Programs Determined to be Not Used
    A. Duty Exemptions to PPC under Investment Promotion Act Section 
29
    B. Corporate Income Tax Exemptions under IPA Section 31
    C. Incentive Under Investment Promotion Act Sections 36(2) and 
36(4)
    D. Ministry of Industry's Steel Industrial Restructuring Plan
    E. Loans from the Industrial Finance Corporation of Thailand and 
the Thai Export-Import Bank
    F. Other Loans and Loan Guarantees from Banks Owned, Controlled, 
or Influenced by the RTG
    G. Export Packing Credits
    H. Pre-shipment Finance Facilities
    I. Trust Receipt Financing for Raw Materials
    J. Export Insurance Program
    K. Tax Certificates for Export
    L. Import Duty Exemptions for Industrial Estates
    M. Export Processing Zone Incentives
V. Programs Determined Not to Exist
    A. IPA Subsidies for Construction of SSI's On-Site Power Plant
    B. Provision of Water Infrastructure for Less Than Adequate 
Remuneration
VI. Analysis of Comments
    Comment 1: Availability of IPA benefits to companies and 
industries within Thailand
    Comment 2: Tariff Rate for Duty Exemptions for Raw and Essential 
Materials UnderIPA Sections 30 and 36
    Comment 3: Countervailability of Section 36(1) Benefits
    Comment 4: Countervailability of a Portion of Section 36(1) 
Benefits
    Comment 5: Benefits under IPA Section 35(3)
    Comment 6: Countervailability of Section 28 Imports Identified 
by Respondents as Recurring
    Comment 7: Methodology for Calculating IPA Section 28 Benefits
    Comment 8: The Time Value of Money and Countervailability of VAT 
Exemptions under the Investment Promotion Act
    Comment 9: IPA Benefits and Investments by SSI's Initial 
Investors
    Comment 10: Provision of Electricity as General Infrastructure
    Comment 11: The Uniform National Tariff and Specificity
    Comment 12: Provision of Electricity and Adequate Remuneration
    Comment 13: PEA's Financial Performance and Adequacy of 
Remuneration
    Comment 14: Provision of Electricity and Adjustment of Benefit
    Comment 15: CDRAC List of 351 and Specificity
    Comment 16: Objective and Neutral Criteria and RTG Discretion
    Comment 17: SSI's BOI Certificate and Debt Restructuring
    Comment 18: Specificity and Facts Available
    Comment 19: SSI Loans before Debt Restructuring and 
Creditworthiness of PPC
    Comment 20: Benefit from Restructured Loans from Private 
Creditors
    Comment 21: Benefit from Private Creditors' Loans and Equity 
Infusions
    Comment 22: RTG Financial Contribution and SSI's Debt 
Restructuring
    Comment 23: Financial Contribution: The Bangkok Approach and 
CDRAC
    Comment 24: Terms of SSI's and PPC's Debt Restructuring and 
Financial Contribution from the RTG
VII. Total Ad Valorem Rate
VIII. Recommendation
[FR Doc. 01-24753 Filed 10-2-01; 8: 45 am]
BILLING CODE 3510-DS-P