[Federal Register Volume 66, Number 208 (Friday, October 26, 2001)]
[Notices]
[Pages 54218-54229]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-26939]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-357-817, C-351-835, C-427-823, C-580-849]


Notice of Initiation of Countervailing Duty Investigations: 
Certain Cold-Rolled Carbon Steel Flat Products From Argentina, Brazil, 
France, and the Republic of Korea

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce is initiating countervailing duty 
investigations to determine whether manufacturers, producers, or 
exporters of certain cold-rolled carbon steel flat products from 
Argentina, Brazil, France, and the Republic of Korea have received 
countervailable subsidies.

ACTION: Initiation of countervailing duty investigations.

-----------------------------------------------------------------------

EFFECTIVE DATE: October 26, 2001.

FOR FURTHER INFORMATION CONTACT: Suresh Maniam (Argentina, Brazil, and 
France) at (202) 482-0176 and Jonathon Lyons (Argentina and the 
Republic of Korea) at (202) 482-0374; Import Administration, 
International Trade Administration, U.S. Department of Commerce, Room 
3099, 14th Street and Constitution Avenue, NW., Washington, DC 20230.

Initiation of Investigations

The 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. In addition, unless otherwise 
indicated, all citations to the Department of Commerce's (the 
``Department'') regulations are references to the provisions codified 
at 19 CFR part 351 (April 2001).

The Petitions

    On September 28, 2001, the Department received petitions filed in 
proper form by Bethlehem Steel Corp., United States Steel LLC., LTV 
Steel Company, Inc., Steel Dynamics, Inc., National Steel Corp., Nucor 
Corp., WCI Steel, Inc., and Weirton Steel Corp. (collectively, ``the 
petitioners''). The Department received supplemental information to 
support the petition for France on October 3, 2001.
    In accordance with section 702(b)(1) of the Act, the petitioners 
allege that manufacturers, producers, or exporters of the subject 
merchandise from Argentina, Brazil, France, and the Republic of Korea 
receive countervailable subsidies within the meaning of section 701 of 
the Act, and that such imports are materially injuring, or threatening 
material injury to, an industry in the United States.
    The Department finds that the petitioners filed these petitions on 
behalf of the domestic industry because they are interested parties as 
defined in sections 771(9)(C) of the Act and they have demonstrated 
sufficient industry support. See ``Determination of Industry Support 
for the Petitions'' section, below.

Scope of Investigations

    For purposes of these investigations, the products covered are 
certain cold-rolled (cold-reduced) flat-rolled carbon-quality steel 
products, neither clad, plated, nor coated with metal, but whether or 
not annealed, painted, varnished, or coated with plastics or other non-
metallic substances, both in coils, 0.5 inch wide or wider, (whether or 
not in successively superimposed layers and/or otherwise coiled, such 
as spirally oscillated coils), and also in straight lengths, which, if 
less than 4.75 mm in thickness having a width that is 0.5 inch or 
greater and that measures at least 10 times the thickness; or, if of a 
thickness of 4.75 mm or more, having a width exceeding 150 mm and 
measuring at least twice the thickness. The products described above 
may be rectangular, square, circular or other shape and include 
products of either rectangular or non-rectangular cross-section.
    Specifically included in this scope are vacuum degassed, fully 
stabilized (commonly referred to as interstitial-free (``IF'')) steels, 
high strength low alloy (``HSLA'') steels, and motor lamination steels. 
IF steels are recognized as low carbon steels with micro-alloying 
levels of elements such as titanium and/or niobium added to stabilize 
carbon and nitrogen elements. HSLA steels are recognized as steels with 
micro-alloying levels of elements such as chromium, copper, niobium, 
titanium, vanadium, and molybdenum. Motor lamination steels contain 
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 Schedules of the 
United States (``HTSUS''), are products in which: (1) Iron 
predominates, by weight, over each of the other contained elements; (2) 
the carbon content is 2 percent or less, by weight, and; (3) none of 
the elements listed below exceeds the quantity, by

[[Page 54219]]

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 
(also called columbium), or 0.15 percent of vanadium, or 0.15 percent 
of zirconium.
    All products that meet the written physical description, and in 
which the chemistry quantities do not exceed any one of the noted 
element levels listed above, are within the scope of this investigation 
unless specifically excluded. The following products, by way of 
example, are outside and/or specifically excluded from the scope of 
this investigation:
     SAE grades (formerly also called AISI grades) above 2300;
     Ball bearing steels, as defined in the HTSUS;
     Tool steels, as defined in the HTSUS; Silico-manganese 
steel, as defined in the HTSUS;
     Silicon-electrical steels, as defined in the HTSUS, that 
are grain-oriented;
     Silicon-electrical steels, as defined in the HTSUS, that 
are not grain-oriented and that have a silicon level exceeding 2.25 
percent;
     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;
     Silicon-electrical steels, as defined in the HTSUS, that 
are not grain-oriented and that have a silicon level less than 2.25 
percent, and (a) fully-processed, with a core loss of less than 0.14 
watts/pound per mil (0.001 inch), or (b) semi-processed, with core loss 
of less than 0.085 watts/pound per mil (0.001 inch);
     Certain shadow mask steel, which is aluminum killed cold-
rolled steel coil that is open coil annealed, has an ultra-flat, 
isotropic surface, and which meets the following characteristics:

Thickness: 0.001 to 0.010 inch
Width: 15 to 32 inches

                          Chemical Composition
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Element...................................................             C
Weight %..................................................       0.002%
------------------------------------------------------------------------

 Certain flapper valve steel, which is hardened and tempered, 
surface polished, and which meets the following characteristics:
Thickness: 1.0 mm
Width: 152.4 mm

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element...................................             C           Si            Mn             P             S
Weight %..................................    0.90-1.05     0.15-0.35     0.30-0.50   0  0
                                                                                              .03          .006
----------------------------------------------------------------------------------------------------------------


                          Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Tensile Strength.......................  162 Kgf/mm\2\.
Hardness...............................  475 Vickers hardness
                                          number.
------------------------------------------------------------------------


                           Physical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Flatness...............................  0.2% of nominal strip width.
------------------------------------------------------------------------

    Microstructure: Completely free from decarburization. Carbides are 
spheroidal and fine within 1% to 4% (area percentage) and are 
undissolved in the uniform tempered martensite.

                         Non-Metallic Inclusion
------------------------------------------------------------------------
                                                     Roughness (m)
------------------------------------------------------------------------
Sulfide Inclusion................................  >0.04%
Oxide Inclusion..................................  >0.05%
------------------------------------------------------------------------

Compressive Stress: 10 to 40 Kgf/mm \2\

                            Surface Roughness
------------------------------------------------------------------------
                                                    Roughness  (m)
------------------------------------------------------------------------
t0.209................................  Rz0.5
0.209t0.310...........................  Rz0.6
0.310t0.440...........................  Rz0.7

[[Page 54220]]

 
0.440t0.560...........................  Rz0.8
0.560t...........................................  Rz1.0
------------------------------------------------------------------------

 Certain ultra thin gauge steel strip, which meets the 
following characteristics:
Thickness: 0.100 mm 7%
Width: 100 to 600 mm

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element.....................             C           Mn             P             S            Al            Fe
Weight %....................  0      0.2-0.5   0  0  0      Balance
                                      .07                         .05           .05           .07
----------------------------------------------------------------------------------------------------------------


                          Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Hardness...............................  Full Hard (Hv 180 minimum).
Total Elongation.......................  3%.
Tensile Strength.......................  600 to 850 N/mm \2\.
------------------------------------------------------------------------


                           Physical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Surface Finish.........................  0.3 micron.
Camber (in 2.0 m)......................  3.0 mm.
Flatness (in 2.0 m)....................  0.5 mm.
Edge Burr..............................  0.01 mm greater than thickness.
Coil Set (in 1.0 m)....................  75.0 mm.
------------------------------------------------------------------------

 Certain silicon steel, which meets the following 
characteristics:
Thickness: 0.024 inch  .0015 inch
Width: 33 to 45.5 inches

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element.....................             C           Mn             P             S            Si            Al
Min. Weight %...............  ............  ............  ............  ............         0.65   ............
Max. Weight %...............        0.004           0.4          0.09         0.009   ............          0.4
----------------------------------------------------------------------------------------------------------------


                          Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Hardness.....................................  B  60-75 (AIM 65)
------------------------------------------------------------------------


                           Physical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Finish.................................  Smooth (30-60 microinches).
Gamma Crown (in 5 inches)..............  0.0005 inch, start measuring
                                          one-quarter inch from slit
                                          edge.
Flatness...............................  20 I-UNIT max.
Coating................................  C3A-.08A max. (A2 coating
                                          acceptable).
Camber (in any 10 inch feet)...........  1/16.
Coil Size I.D..........................  20 inches.
------------------------------------------------------------------------


                                               Magnetic Properties
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Core Loss (1.5T/60 Hz) NAAS................  3.8 Watts/Pound max.
Permeability (1.5T/60 Hz) NAAS.............  1700 gauss/oersted typical, 1500 minimum.
----------------------------------------------------------------------------------------------------------------

 Certain aperture mask steel, which has an ultra-flat surface 
flatness and which meets the following characteristics:
 Thickness: 0.025 to 0.245 mm
 Width: 381-1000 mm

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element.........................................................             C                  N            Al
Weight %........................................................         0.01      0.004 to 0.007         0.007
----------------------------------------------------------------------------------------------------------------


[[Page 54221]]

 Certain annealed and temper-rolled cold-rolled continuously 
cast steel, which meets the following characteristics:

                                                                                      Chemical Composition
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Element.......................................................            C          Mn            P            S           Si           Al           As             Cu          B            N
Min. Weight %.................................................        0.02         0.20   ...........  ...........  ...........        0.03   ...........  ...........  ...........       0.003
Max. Weight %.................................................        0.06         0.40         0.02        0.023         0.03         0.08         0.02         0.08   ...........       0.008
                                                                                                          (Aiming                   (Aiming                                             (Aiming
                                                                                                       0.018 Max.)                    0.05)                                              0.005)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    Non-metallic Inclusions: Examination with the S.E.M. shall not 
reveal individual oxides >1 micron (0.000039 inch) and inclusion groups 
or clusters shall not exceed 5 microns (0.000197 inch) in length.
    Surface Treatment as follows:
    The surface finish shall be free of defects (digs, scratches, pits, 
gouges, slivers, etc.) and suitable for nickel plating.

                             Surface Finish
------------------------------------------------------------------------
                                 Roughness, RA microinches (micrometers)
                               -----------------------------------------
                                     Aim          Min.           Max
------------------------------------------------------------------------
Extra Bright..................      5 (0.1)         0 (0)       7 (0.2)
------------------------------------------------------------------------

 Certain annealed and temper-rolled cold-rolled continuously 
cast steel, in coils, with a certificate of analysis per Cable System 
International (``CSI'') Specification 96012, with the following 
characteristics:

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element.................................................             C           Mn             P             S
Max Weight %............................................         0.13          0.60          0.02          0.05
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Base Weight............................  55 pounds.
Theoretical Thickness..................  0.0061 inch (+/-10 percent of
                                          theoretical thickness).
Width..................................  31 inches.
Tensile Strength.......................  45,000-55,000 psi.
Elongation.............................  Minimum of 15 percent in 2
                                          inches.
------------------------------------------------------------------------

 Concast cold-rolled drawing quality sheet steel, ASTM a-620-
97, Type B, or single reduced black plate, ASTM A-625-92, Type D, T-1, 
ASTM A-625-76 and ASTM A-366-96, T1-T2-T3 Commercial bright/luster 7a 
both sides, RMS 12 maximum. Thickness range of 0.0088 to 0.038 inches, 
width of 23.0 inches to 36.875 inches.
 Certain single reduced black plate, meeting ASTM A-625-98 
specifications, 53 pound base weight (0.0058 inch thick) with a Temper 
classification of T-2 (49-57 hardness using the Rockwell 30 T scale).
 Certain single reduced black plate, meeting ASTM A-625-76 
specifications, 55 pound base weight, MR type matte finish, TH basic 
tolerance as per A263 trimmed.
 Certain single reduced black plate, meeting ASTM A-625-98 
specifications, 65 pound base weight (0.0072 inch thick) with a Temper 
classification of T-3 (53-61 hardness using the Rockwell 30 T scale).
 Certain cold-rolled black plate bare steel strip, meeting ASTM 
A-625 specifications, which meet the following characteristics:

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element.................................................             C           Mn             P             S
Max. Weight %...........................................         0.13          0.60          0.02          0.05
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness................................  0.0058 inch 0.0003 inch.
Hardness.................................  T2/HR 30T 50-60 aiming.
Elongation...............................  15%.
Tensile Strength.........................  51,000.0 psi 4.0
                                            aiming.
------------------------------------------------------------------------


[[Page 54222]]

 Certain cold-rolled black plate bare steel strip, in coils, 
meeting ASTM A-623, Table II, Type MR specifications, which meet the 
following characteristics:

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element.................................................             C           Mn             P             S
Max. Weight %...........................................         0.13          0.60          0.04          0.05
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness..............................  0.0060 inch (
                                          0.0005 inch).
Width..................................  10 inches (+ \1/4\ to \3/8\
                                          inch/-0).
Tensile Strength.......................  55,000 psi max.
Elongation.............................  Minimum of 15 percent in 2
                                          inches.
------------------------------------------------------------------------

 Certain ``blue steel'' coil (also known as ``steamed blue 
steel'' or ``blue oxide'') with a thickness of 0.30 mm to 0.42 mm and 
width of 609 mm to 1219 mm, in coil form;
 Certain cold-rolled steel sheet, coated with porcelain 
enameling prior to importation, which meets the following 
characteristics:
Thickness (nominal): 0.019 inch
Width: 35 to 60 inches

                          Chemical Composition
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Element.......................             C            O             B
Max. Weight %.................        0.004
Min. Weight %.................                      0.010         0.012
------------------------------------------------------------------------

 Certain cold-rolled steel, which meets the following 
characteristics:
Width: >66 inches

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element.................................................             C           Mn             P            Si
Max. Weight %...........................................         0.07          0.67          0.14          0.03
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Range (mm)............................  0.800-2.000
Min. Yield Point (MPa)..........................  265
Max Yield Point (MPa)...........................  365
Min. Tensile Strength (MPa).....................  440
Min. Elongation %...............................  26
------------------------------------------------------------------------

 Certain band saw steel, which meets the following 
characteristics:
Thickness:  1.31 mm
Width:  80 mm

                                                                  Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Element..........................                C              Si               Mn                P                S                 Cr             Ni
Weight %.........................      1.2 to 1.3     0.15 to 0.35     0.20 to 0.35   0.03  0.00      0.3 to 0.5             0.25
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Other properties:

Carbide: Fully spheroidized having >80% of carbides, which are 
 0.003 mm and uniformly dispersed
Surface finish: Bright finish free from pits, scratches, rust, cracks, 
or seams Smooth edges.
Edge camber (in each 300 mm of length):  7 mm arc height 
Cross bow (per inch of width): 0.015 mm max.
 Certain transformation-induced plasticity (TRIP) steel, which 
meets the following characteristics:

Variety 1

                          Chemical Composition
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Element.......................             C           Si            Mn
Min. Weight %.................         0.09           1.0          0.90
Max. Weight %.................         0.13           2.1          1.7
------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Range (mm)...................  1.000-2.300 (inclusive).

[[Page 54223]]

 
Min. Yield Point (MPa).................  320.
Max Yield Point (MPa)..................  480.
Min. Tensile Strength (MPa)............  590.
Min. Elongation %......................  24 (if 1.000-1.199 thickness
                                          range).
                                         25 (if 1.200-1.599 thickness
                                          range).
                                         26 (if 1.600-1.999 thickness
                                          range).
                                         27 (if 2.000-2.300 thickness
                                          range).
------------------------------------------------------------------------

Variety 2

                          Chemical Composition
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Element.......................             C           Si            Mn
Min. Weight %.................         0.12           1.5           1.1
Max. Weight %.................         0.16           2.1           1.9
------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Range (mm)...................  1.000-2.300 (inclusive).
Min. Yield Point (MPa).................  340.
Max. Yield Point (MPa).................  520.
Min. Tensile Strength (MPa)............  690.
Min. Elongation %......................  21 (if 1.000-1.199 thickness
                                          range).
                                         22 (if 1.200-1.599 thickness
                                          range).
                                         23 (if 1.600-1.999 thickness
                                          range).
                                         24 (if 2.000-2.300 thickness
                                          range).
------------------------------------------------------------------------

Variety 3

                          Chemical Composition
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Element.......................             C           Si            Mn
Min. Weight %.................         0.13           1.3           1.5
Max. Weight %.................         0.21           2.0           2.0
------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Range (mm)...................  1.200-2.300 (inclusive).
Min. Yield Point (MPa).................  370.
Max. Yield Point (MPa).................  570.
Min. Tensile Strength (MPa)............  780.
Min. Elongation %......................  18 (if 1.200-1.599 thickness
                                          range).
                                         19 (if 1.600-1.999 thickness
                                          range).
                                         20 (if 2.000-2.300 thickness
                                          range).
------------------------------------------------------------------------

 Certain cold-rolled steel, which meets the following 
characteristics:

Variety 1

                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element.................................................             C           Mn             P              Cu
Min. Weight %...........................................  ............  ............  ............         0.15
Max. Weight %...........................................         0.10          0.40          0.10          0.35
----------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Range (mm)...................  0.600-0.800
Min. Yield Point (MPa).................  185
Max. Yield Point (MPa).................  285
Min. Tensile Strength (MPa)............  340
Min. Elongation........................  31 (ASTM standard 31% = JIS
                                          standard 35%)
------------------------------------------------------------------------

Variety 2

[[Page 54224]]



                                              Chemical Composition
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Element.................................................             C           Mn             P              Cu
Min. Weight %...........................................  ............  ............  ............         0.15
Max. Weight %...........................................         0.05          0.40          0.08          0.35
----------------------------------------------------------------------------------------------------------------

Variety 3

                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness Range (mm)...................  0.800-1.000
Min. Yield Point (MPa).................  145
Max. Yield Point (MPa).................  245
Min. Tensile Strength (MPa)............  295
Min. Elongation %......................  31 (ASTM standard 31% = JIS
                                          standard 35%)
------------------------------------------------------------------------


                                                                  Chemical Composition
--------------------------------------------------------------------------------------------------------------------------------------------------------
                 ,                      ,           ,           ,           ,           ,           ,           ,           ,           ,
--------------------------------------------------------------------------------------------------------------------------------------------------------
Element.........................           C         Si          Mn           P           S            Cu        Ni          Al     Nb, Ti,          Mo
                                                                                                                                       V, B
Max. Weight %...................       0.01        0.05        0.40        0.10       0.023    0.15-.35        0.35        0.10        0.10        0.30
--------------------------------------------------------------------------------------------------------------------------------------------------------


                   Physical and Mechanical Properties
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Thickness (mm):........................................             0.7
Elongation %: ..............................              35
------------------------------------------------------------------------

     Porcelain enameling sheet, drawing quality, in coils, 
0.014 inch in thickness, +0.002, -0.000, meeting ASTM A-424-96 Type 1 
specifications, and suitable for two coats.
    The merchandise subject to this investigation is typically 
classified in the HTSUS at subheadings: 7209.15.0000, 7209.16.0030, 
7209.16.0060, 7209.16.0090, 7209.17.0030, 7209.17.0060, 7209.17.0090, 
7209.18.1530, 7209.18.1560, 7209.18.2550, 7209.18.6000, 7209.25.0000, 
7209.26.0000, 7209.27.0000, 7209.28.0000, 7209.90.0000, 7210.70.3000, 
7210.90.9000, 7211.23.1500, 7211.23.2000, 7211.23.3000, 7211.23.4500, 
7211.23.6030, 7211.23.6060, 7211.23.6085, 7211.29.2030, 7211.29.2090, 
7211.29.4500, 7211.29.6030, 7211.29.6080, 7211.90.0000, 7212.40.1000, 
7212.40.5000, 7212.50.0000, 7225.19.0000, 7225.50.6000, 7225.50.7000, 
7225.50.8010, 7225.50.8085, 7225.99.0090, 7226.19.1000, 7226.19.9000, 
7226.92.5000, 7226.92.7050, 7226.92.8050, and 7226.99.0000.
    Although the HTSUS subheadings are provided for convenience and 
U.S. Customs Service (``U.S. Customs'') purposes, the written 
description of the merchandise under investigation is dispositive.

Consultations

    Pursuant to section 702(b)(4)(A)(ii) of the Act, the Department 
invited representatives of the Governments of Argentina (``GOA''), 
Brazil (``GOB''), France (``GOF''), the Republic of Korea (``GOK''), 
and the European Commission (``EC'') for consultations with respect to 
the petitions filed. The GOK did not accept our invitation to hold 
consultations. On October 12, 2001, the Department held separate 
consultations with the GOA, GOB, and the GOF/EC. The GOA also submitted 
additional information on October 15, 2001. The points raised in the 
consultations are described in the individual country-specific 
consultation memoranda to the file dated October 12, 2001, which are on 
file in the Department's Central Records Unit, Room B-099 of the main 
Department of Commerce building.

Determination of Industry Support for the Petition

    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, when determining 
the degree of industry support, the statute directs the Department to 
look to producers and workers who produce the domestic like product. 
The International Trade Commission (``ITC''), which is responsible for 
determining whether ``the domestic industry'' has been injured, must 
also determine what constitutes a domestic like product in order to 
define the industry. While both the Department and the ITC must apply 
the same statutory definition regarding the domestic like product 
(section 771(10) of the Act), they do so for different purposes and 
pursuant to separate and distinct authority. In addition, the 
Department's determination is subject to limitations of time and 
information. Although this may result in different definitions of the 
like product, such differences do not render the decision of either 
agency contrary to the law.\1\
---------------------------------------------------------------------------

    \1\ See Algoma Steel Corp. Ltd., v. United States, 688 F.Supp. 
639, 642-44 (CIT 1988); High Information Content Flat Panel Displays 
and Display Glass from Japan: Final Determination; Rescission of 
Investigation and Partial Dismissal of Petition, 56 FR 32376, 32380-
81 (July 16, 1991).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation,'' i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petitions. Moreover, the petitioners do not offer a definition of 
domestic like product distinct from the scope of the investigation.
    The petitions cover certain cold-rolled steel as defined in the 
``Scope of the Investigations'' section, above, a single

[[Page 54225]]

class or kind of merchandise. The Department has no basis on the record 
to find the petitioners' definition of the domestic like product to be 
inaccurate. The Department, therefore, has adopted the domestic like 
product definition set forth in the petitions.
    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (1) at least 
25 percent of the total production of the domestic like product; and 
(2) more than 50 percent of the production of the domestic like product 
produced by that portion of the industry expressing support for or 
opposition to the petition. Finally, section 732(c)(4)(D) of the Act 
provides that if the petition does not establish support of domestic 
producers or workers accounting for more than 50 percent of the total 
production of the domestic like product, the administering agency 
shall: (i) poll the industry or rely on other information in order to 
determine if there is support for the petition as required by 
subparagraph (A), or (ii) determine industry support using any 
statistically valid sampling method to poll the industry.
    The Department has determined, pursuant to section 732(c)(4)(D), 
that there is support for the petitions as required by subparagraph 
(A). Specifically, the Department made the following determinations. 
For Argentina, Brazil, France, and the Republic of Korea, the 
petitioners established industry support representing over 50 percent 
of total production of the domestic like product. Therefore, the 
domestic producers or workers who support the petitions account for at 
least 25 percent of the total production of the domestic like product, 
and the requirements of section 732(c)(4)(A)(i) are met. Furthermore, 
because the Department received no opposition to the petitions, the 
domestic producers or workers who support the petitions account for 
more than 50 percent of the production of the domestic like product 
produced by that portion of the industry expressing support for or 
opposition to the petitions. Thus, the requirements of section 
732(c)(4)(A)(ii) are also met. Accordingly, the Department determines 
that the petitions were filed on behalf of the domestic industry within 
the meaning of section 732(b)(1) of the Act. See the Initiation 
Checklists for each country dated October 18, 2001 (``Initiation 
Checklist'').

Injury Test

    Because Argentina, Brazil, France, and the Republic of Korea are 
each a ``Subsidies Agreement Country'' within the meaning of section 
701(b) of the Act, section 701(a)(2) of the Act applies to these 
investigations. Accordingly, the ITC must determine whether imports of 
the subject merchandise from these countries materially injure, or 
threaten material injury to, an industry in the United States.

Allegations and Evidence of Material Injury and Causation

    The petitions allege that the U.S. industry producing the domestic 
like product is being materially injured, or is threatened with 
material injury, by reason of the individual and cumulated imports of 
the subject merchandise. The petitioners contend that the industry's 
injured condition is evident in the stagnation of U.S. producers' sales 
volumes and profits, the decline of their capacity utilization, the 
increase of U.S. inventories and closures of U.S. production 
facilities. The allegations of injury and causation are supported by 
relevant evidence including U.S. Customs import data, lost sales, and 
pricing information. We have examined the accuracy and adequacy of the 
evidence provided in the petitions and have determined that the 
petitions allege the elements necessary for the imposition of a duty 
under section 731 of the Act and contain information reasonably 
available to the petitioners supporting the allegations (see Initiation 
Checklists, Injury Allegation section).

Allegations of Subsidies

    Section 702(b) of the Act requires the Department to initiate a 
countervailing duty proceeding whenever an interested party files a 
petition on behalf of an industry that (1) alleges the elements 
necessary for the imposition of a duty under section 701(a), and (2) is 
accompanied by information reasonably available to the petitioners 
supporting the allegations.

Period of Investigation

    The period of investigation (``POI'') for which we are measuring 
subsidies is the calendar year 2000.

Initiation of Countervailing Duty Investigations

    The Department has examined the countervailing duty petitions on 
certain cold-rolled carbon steel flat products from Argentina, Brazil, 
France, and the Republic of Korea and found that they comply with the 
requirements of section 702(b) of the Act. Therefore, in accordance 
with section 702(b) of the Act, we are initiating a countervailing duty 
investigation in each country to determine whether manufacturers, 
producers, or exporters of certain cold-rolled carbon steel flat 
products from Argentina, Brazil, France, and the Republic of Korea 
receive countervailable subsidies (see Initiation Checklist for each 
country).
Argentina
    A. General. The petitioners argue that the Department's current 
formula for allocating non-recurring subsidies understates the time 
value of money, and thus undervalues every non-recurring subsidy. 
According to the petitioners, this undervaluing is biased in favor of 
the respondents, inconsistent with the statute and the Department's 
regulations, inconsistent with commercial reality, and inconsistent 
with other agency practices. In its place, the petitioners propose that 
the Department adopt a mid-year allocation methodology, which they 
claim would recognize that, on average, subsidies are received in the 
middle of the year, as opposed to the beginning of the year (as under 
our current methodology).
    In the past, we have considered and rejected the same argument 
advocated now by the petitioners that the Department's long-standing 
allocation formula should be replaced by a mid-year convention 
approach. See Preamble to the Department's CVD Regulations, 63 FR at 
65399; 1989 Proposed Regulations, 54 FR 23366, 23375-76 (May 31, 1989); 
Subsidies Appendix in Cold-Rolled Carbon Steel Flat-Rolled Products 
from Argentina: Final Affirmative Countervailing Duty Determination and 
Countervailing Duty Order, 49 FR 18006, 18018 (April 26, 1984); and 
Final Affirmative Countervailing Duty Determination: Certain Cut-to-
Length Carbon-Quality Steel Plate from France, 64 FR 73277, 73298 
(December 29, 1999) (``French Plate''). As we have explained on several 
occasions, our current allocation formula, codified at 19 CFR 
351.524(d)(1), has proven to be predictable and easy to administer. It 
has been implemented for almost twenty years without controversy in 
virtually every CVD proceeding, and its reasonableness has been upheld 
by the Court of International Trade in Michelin Tire Corp. v. United 
States, 6 CIT 320 (1983), vacated on other grounds, 9 CIT 38 (1985). 
Accordingly, for purposes of this initiation, we will continue applying 
our allocation formula as it stands in 19 CFR 351.524(d)(1). 
Consequently, with respect to Argentina, we will not examine any 
previously investigated subsidies

[[Page 54226]]

received prior to 1986, which have already been determined to have a 
fifteen-year average useful life (``AUL''), because these subsidies 
have already been fully allocated.
    B. Equityworthiness and Creditworthiness. The petitioners allege 
that the principal producer/exporter of subject merchandise in 
Argentina is Siderar Sociedad Anonima Industrial Y Comercial 
(``Siderar''). According to the petitioners, prior to 1993, Siderar was 
known as Sociedad Mixta Siderugica Argentina (``SOMISA''), and briefly 
from 1992 to 1993, was known as Aceros Parana S.A. (``APSA'').
    The petitioners claim that the Department previously found SOMISA 
to be unequityworthy from 1984 through 1990 in Cold-Rolled Carbon Steel 
Flat-Rolled Products From Argentina: Preliminary Results of 
Countervailing Duty Administrative Review, 62 FR 38257, 38260 (July 17, 
1997) (``1997 Cold-Rolled Prelim''). In addition, the petitioners 
allege that SOMISA was found uncreditworthy in 1992 in 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, 10994 (February 21, 2001) (``Hot-Rolled 
Prelim''). The petitioners claim that, although the determination of 
uncreditworthiness in that case was based on adverse facts available, 
the Department's decision was nonetheless supported by sufficient facts 
presented in the petition in that case. In particular, the petitioners 
state that, in the two years prior to 1992, SOMISA's return on sales 
worsened from negative seventy-nine percent in 1991 to negative eighty-
seven percent in 1992. Furthermore, according to the petitioners, 
SOMISA's operating margins were negative fifty-nine percent and 
negative eighty-one percent in 1991 and 1992, respectively, and that 
SOMISA's debt went from 388 million pesos in 1991 to 570 million pesos 
in 1992, while net worth fell from 717 million pesos to negative 913 
million pesos in the same period. The petitioners note that, in the 
Hot-Rolled Prelim, we stated that SOMISA was (1) losing approximately 
20 million dollars a month, (2) not a viable economic entity on its 
own, and (3) in a state of technical insolvency. 66 FR at 10994-95. 
Finally, the petitioners allege that SOMISA/APSA was unequityworthy in 
1992. Citing to Final Affirmative Countervailing Duty Determination: 
Certain Hot-Rolled Carbon Steel Flat Products from Argentina, 66 FR 
37007 (July 16, 2001) and accompanying Issues and Decision Memorandum, 
at section on ``Programs Determined to Confer Subsidies: Investment 
Commitment,'' the petitioners state that the Department implicitly 
found the company unequityworthy in a previous case because it 
countervailed ``committed investments'' as an equity infusion made in 
that year. In addition, the petitioners argue that, assuming the 
Department determines, as it did in the Hot-Rolled Prelim, to treat the 
``committed investments'' as being received in 1993 and 1994, it should 
open an equityworthiness/creditworthiness investigation for these 
years, and allow parties to comment.
    Unless a company provides new information to the contrary, once a 
determination of unequityworthiness has been made for certain years, 
the Department's practice is to continue to find that company 
unequityworthy for those same years in subsequent cases. See, e.g., 
Final Affirmative Countervailing Duty Determination: Certain Steel 
Products from Brazil, 58 FR 37295, 37297 (July 9, 1993) (``Brazil 
Certain Steel''). Based on our previous finding of unequityworthiness 
for SOMISA in 1997 Cold-Rolled Prelim from 1984 through 1990, we will 
consider this unequityworthiness in analyzing any equity infusions 
received in those years.
    The examination of creditworthiness is an attempt to determine if 
the company in question could obtain long-term financing from 
conventional commercial sources. 19 CFR 351.505(a)(4). Regarding the 
uncreditworthiness allegation for 1992, the financial information 
submitted in the Hot-Rolled Prelim, and restated again here, suggests 
that SOMISA may have not been able to obtain such financing in 1992. 
Therefore, if we find that SOMISA received any non-recurring grants, 
loans, or loan guarantees in 1992, we will investigate its 
creditworthiness in that year.
    In the case of a government equity infusion, the Department 
measures the benefit by examining the investment decision against the 
usual investment practice of a private investor. 19 CFR 351.507(a)(1). 
Specifically, the Department compares the purchase price paid by the 
government to prices paid for new shares by private investors, if such 
prices exist. 19 CFR 351.507(a)(2). If actual private investor prices 
are unavailable, the Department will determine the equityworthiness of 
a company at the time of the equity infusion. 19 CFR 351.507(a)(3). 
Regarding the unequityworthiness allegation for 1992, the determination 
that the committed investments were countervailable in the Hot-Rolled 
Prelim was based on adverse facts available. However, in this 
investigation, based on the same information used to determine 
creditworthiness in 1992, we find that the petitioners provided 
sufficient information demonstrating that SOMISA may have been 
unequityworthy in 1992. Therefore, if we find that SOMISA received any 
equity infusions in 1992, we will examine its equityworthiness in that 
year.
    Finally, regarding SOMISA's equityworthiness in 1993 and 1994, the 
petitioners have not provided any evidence that SOMISA may have been 
unequityworthy during that period. Absent such evidence, we will not 
examine SOMISA's equityworthiness during that period.
    C. Programs. We are including in our investigation the following 
programs alleged in the petition to have provided countervailable 
subsidies to producers and exporters of the subject merchandise in 
Argentina:

1. Equity Infusions
2. Assumption of Debt and Liquidation Costs
3. Subsidies Under Decree 1144/92
4. ``Committed Investment'' Into APSA
5. Export Subsidies
6. Zero Tariff Turnkey Bill
Brazil
    A. General. The petitioners argue that, as a result of cross-
ownership between Usinas Siderurgicas de Minas Gerais (``USIMINAS'') 
and Companhia Siderurgica Paulista (``COSIPA''), the Department should 
allocate subsidies received by both companies over the combined sales 
of both companies. In the course of this investigation, we will examine 
any cross-ownership between USIMINAS and COSIPA to determine how and 
whether to allocate subsidies among these companies.
    B. Equityworthiness and Creditworthiness. The petitioners allege 
that there are three principal producers of subject merchandise in 
Brazil: Companhia Siderurgica Nacional (``CSN''), USIMINAS, and COSIPA.
    Unless a company provides new information leading the Department to 
reconsider a previous finding of unequityworthiness or 
uncreditworthiness, once a determination of unequityworthiness or 
uncreditworthiness has been made for certain years, the Department's 
practice is to continue to find that company unequityworthy or 
uncreditworthy for those same years in subsequent cases. See, e.g., 
Brazil Certain Steel, 58 FR at 37297.

[[Page 54227]]

    The petitioners claim that CSN, USIMINAS, and COSIPA were 
previously found unequityworthy in various years. Based on our previous 
determinations, we initially find the following: CSN to be 
unequityworthy from 1986 through 1992; USIMINAS to be unequityworthy 
from 1986 through 1988; and COSIPA to be unequityworthy from 1986 
through 1989 and from 1992 through 1993. See Final Affirmative 
Countervailing Duty Determinations: Certain Cold Rolled Flat-Rolled 
Carbon-Quality Steel Products From Brazil, 65 FR 5536, 5546 (February 
4, 2000); Final Affirmative Countervailing Duty Determination: Certain 
Hot-Rolled Flat-Rolled Carbon-Quality Steel Products From Brazil, 64 FR 
38742, 38746 (July 19, 1999); and Brazil Certain Steel, 58 FR at 37297. 
Accordingly, we will take into account CSN's, USIMINAS's, and COSIPA's 
unequityworthiness if we determine that any of these companies received 
equity infusions in years in which they were determined to be 
unequityworthy.
    The petitioners also state that CSN, USIMINAS, and COSIPA were 
previously found uncreditworthy in various years. Based on our previous 
determinations, we initially find the following: CSN to be 
uncreditworthy from 1986 through 1992; USIMINAS to be unequityworthy 
from 1986 through 1988; and COSIPA to be unequityworthy from 1986 
through 1989 and from 1991 through 1993. See id. Accordingly, we will 
take into account CSN's, USIMINAS's, and COSIPA's uncreditworthiness if 
we determine that any of these companies received non-recurring grants, 
loans, or loan guarantees in years in which they were determined to be 
uncreditworthy.
    C. Programs. We are including in our investigation the following 
programs alleged in the petition to have provided countervailable 
subsidies to producers and exporters of the subject merchandise in 
Brazil:
    1. Equity Infusions into CSN, USIMINAS, and COSIPA
    2. PROEX
    We are not including in our investigation the following program 
alleged to benefit producers and exporters of the subject merchandise 
in Brazil:
    1. Exemption of Exports from Taxes under the Social Integration 
Program (``PIS'') and the Social Contribution of Billings (``COFINS'')
    In determining not to investigate this program, we stated the 
following in the Notice of Initiation of Countervailing Duty 
Investigations: Carbon and Certain Alloy Steel Wire Rod from Brazil, 
Canada, Germany, Trinidad and Tobago, and Turkey, 66 FR 49931, 49934 
(October 1, 2001):

    Within the context of a countervailing duty proceeding, taxes on 
revenues such as PIS and COFINS would generally be considered 
indirect taxes. (See 19 CFR 351.102(b) of the Department's 
regulations for the definition of an indirect tax.) In the case of 
these particular taxes, the Department's regulations at 19 CFR 
351.517(a) state that a benefit exists to the extent that the amount 
remitted or exempted exceeds the amount levied. There is no 
information in this instance of any excessive remission.

    Likewise, in this investigation, because we consider these taxes to 
be indirect and because there was no evidence of excessive remission 
presented in the petition, there is no basis to believe that a 
financial contribution was provided as required by section 771(5)(D) of 
the Act. Therefore, we will not investigate this allegation.
France
    A. General. As they did with respect to Argentina, the petitioners 
propose that, in considering subsidies to France, the Department adopt 
a mid-year allocation methodology, which they claim would recognize 
that, on average, subsidies are received in the middle of the year, as 
opposed to the beginning of the year (as under our current 
methodology). For the reasons stated above, in the ``General'' section 
for Argentina, we will continue to allocate non-recurring subsidies 
according to 19 CFR 531.524(d). Consequently, with respect to France, 
we will not examine the previously investigated subsidies received 
prior to 1987 (i.e., the ``Write-Off of PACS'' and ``Shareholder 
Advances Up Through 1986'' (see further discussion below)) which have 
already been determined to have a fourteen-year AUL, because these 
subsidies have already been fully allocated.
    B. Equityworthiness and Creditworthiness. The petitioners allege 
that the principal producer/exporter of subject merchandise in France 
is Usinor.
    The petitioners claim that Usinor was both unequityworthy and 
uncreditworthy up through 1988, consistent with our previous 
determination in Final Affirmative Countervailing Duty Determinations: 
Certain Steel Products From France, 58 FR 37304, 37305-06 (July 9, 
1993) (``French Certain Steel'').
    In French Certain Steel, we found Usinor to be unequityworthy from 
1986 through 1988. Id. at 37305 In the same determination, we found 
Usinor to be uncreditworthy from 1982 through 1988. Id. at 37306; see 
also French Plate, 64 FR at 73291 (Usinor was uncreditworthy from 1985 
through 1988); and Final Affirmative Countervailing Duty Determination: 
Stainless Steel Sheet and Strip in Coils From France, 64 FR 30774, 
30779 (June 8, 1999) (``French Stainless'') (Usinor was uncreditworthy 
from 1984 through 1988).
    Unless a company provides new information leading the Department to 
reconsider a previous finding of unequityworthiness or 
uncreditworthiness, once a determination of unequityworthiness or 
uncreditworthiness has been made for certain years, the Department's 
practice is to continue to find that company unequityworthy or 
uncreditworthy for those same years in subsequent cases. See, e.g., 
Brazil Certain Steel, 58 FR at 37297. Based on our previous 
determinations of unequityworthiness in French Plate, French Stainless, 
and French Certain Steel, for those years in which we found Usinor to 
be unequityworthy and which remain relevant in this investigation 
(i.e., from 1987 through 1988), we will consider its unequityworthiness 
if we find that any equity infusions were received during this period. 
Also, based on our previous determinations of uncreditworthiness, for 
those years in which we found Usinor to be uncreditworthy and which 
remain relevant in this investigation (i.e., from 1987 through 1988), 
we will consider its uncreditworthiness if we find that any non-
recurring subsidies, loans, or loan guarantees were received during 
this period.
    C. Programs. We are including in our investigation the following 
programs alleged in the petition to have provided countervailable 
subsidies to producers and exporters of the subject merchandise in 
France (note: some of these programs have certain parts that we will 
not be investigating (see Initiation Checklist for France)):

1. FIS Bonds
2. Shareholder Advances After 1986
3. GOF Advances for SODIs
4. Investment/Operating Subsidies
5. Funding for Electric Arc Furnaces
6. Funding for Myosotis Project
7. Repayable Grant to Sollac for ``Pre-Coating'' Technology
8. Tax Subsidies Under Article 39
9. ESF Grants
10. ECSC Article 54 Loans
11. ECSC Article 56 Funding
12. ERDF Funding
13. Funding Under Resider and Resider II

    In addition to those parts of the above programs we will not be 
investigating,

[[Page 54228]]

we are not including in our investigation the following programs 
alleged to benefit producers and exporters of the subject merchandise 
in France:
    1. Write-Off of PACS. The petitioners allege that certain debts of 
Usinor were converted into loans with special characteristics, or 
``PACS.'' In 1986, these PACS were converted into common stock, 
effectively releasing Usinor of its repayment obligations under the 
PACS. Consistent with our previous findings in French Plate, 64 FR at 
73281-82 and French Stainless, 64 FR at 63878-79, the petitioners claim 
that these conversions constitute countervailable equity infusions and 
request that the Department continue to countervail the subsidy.
    We do not intend to investigate this allegation. Because we have 
rejected the use of the petitioners' proposed mid-year allocation 
methodology (see ``General'' section above), all benefits under this 
program have been fully amortized over the applicable AUL prior to the 
POI.
    2. Shareholder Advances Up Through 1986. The petitioners claim that 
the GOF provided Usinor with grants in the form of shareholder advances 
in 1985 and 1986 to finance the revenue shortfall needs of both these 
companies. In 1986, the GOF converted these shareholder advances into 
common stock. However, no shares were ever received by the GOF with the 
conversion. According to the petitioners, the GOF provided roughly FF 
20 billion to Usinor in the years 1982 through 1986 in the form of 
these shareholder advances. Consistent with our previous findings in 
French Plate, 64 FR at 73282 and French Stainless, 64 FR at 63879, the 
petitioners claim that these conversions constitute countervailable 
equity infusions and request that the Department continue to 
countervail the subsidy.
    We do not intend to investigate this allegation. As discussed 
above, under ``Write-Off of PACS,'' because we have rejected the use of 
the petitioners' proposed mid-year allocation methodology (see 
``General'' section above), all benefits under this program have been 
fully amortized over the applicable AUL prior to the POI.
The Republic of Korea
    A. General. As they did with respect to Argentina and France, the 
petitioners propose that, in considering subsidies to the Republic of 
Korea, the Department adopt a mid-year allocation methodology, which 
they claim would recognize that, on average, subsidies are received in 
the middle of the year, as opposed to the beginning of the year (as 
under our current methodology). For the reasons stated above, in the 
``General'' section for Argentina, we will continue to allocate non-
recurring subsidies according to 19 CFR 531.524(d). Consequently, with 
respect to the Republic of Korea, we will not examine any previously 
investigated subsidies received prior to 1986, which have already been 
determined to have a fifteen-year AUL, because these subsidies have 
already been fully allocated.
    B. Programs. We are including in our investigation the following 
programs alleged in the petition to have provided countervailable 
subsidies to producers and exporters of the subject merchandise in the 
Republic of Korea (note: some of these programs have certain parts that 
we will not be investigating (see Initiation Checklist for the Republic 
of Korea)):

1. Loans Inconsistent with Commercial Consideration (GOK Directed 
Credit) Programs
2. Government Infrastructure Assistance at Kwangyang Bay
3. Asan Bay Infrastructure Subsidies
4. Other Subsidies Related to Operations at Asan Bay
5. Reserve for Export Loss (TERCL Article 16)
6. Reserve for Overseas Market Development (TERCL Article 17)
7. Technical Development Fund (TERCL Article 8)
8. Short-term Export Financing
9. Investment Tax Credits (under various TERCL Articles)
10. Electricity Discounts
11. Asset Revaluation--TERCL Article 56(2)
12. Tax Exemption for Balanced Development (TERCL Article 43)
13. Research and Development Subsidies
14. Special Depreciation for Energy-Saving Equipment
15. Export Insurance
16. POSCO's Provision of Steel Inputs at Less-Than-Adequate 
Remuneration (Dual Pricing Scheme for Input Products)
17. Government Grants to Dongbu
18. Special Depreciation for Union
19. Export Industry Facility Loans

    We are not including in our investigation the following programs 
alleged to benefit producers and exporters of the subject merchandise 
in the Republic of Korea:
    1. Reduction of Import Duties on Steelmaking Equipment. The 
petitioners allege that the GOK subsidizes steelmakers by waiving or 
reducing the eight percent tariff on imports of steelmaking equipment 
that cannot be purchased domestically. The petitioners provide a Korea 
Iron and Steel Report that shows that steel producers, including 
companies that produce cold-rolled steel, have benefitted from this 
program. The petitioners concede that the Department found these duty 
reductions not countervailable in Final Affirmative Countervailing Duty 
Determination: Structural Steel Beams From the Republic of Korea, 65 FR 
41051 (July 3, 2000) (``Structural Beams'') and in the Remand 
Determination Pursuant to Bethlehem Steel Corp., v. United States, Slip 
Op. 01-38, Court No.: 00-03-00116 (April 4, 2001) (``Carbon Plate 
Remand'') because they were part of a broader program of duty 
reductions, but argue that a specificity analysis must be undertaken 
for cold-rolled producers, and the steel industry as a whole.
    We are not investigating this allegation. The Department has 
examined this program in Structural Beams and found it not 
countervailable because the program did not meet any of the specificity 
criteria of section 771(5A) of the Act. This position was reaffirmed in 
the Carbon Plate Remand. The petitioners have provided no new 
information or evidence of changed circumstances to warrant a re-
examination of this program.
    2. Reduction of Import Duties on Hot-Rolled Steel. The petitioners 
allege that, in the Final Affirmative Countervailing Duty 
Determination: Certain Cut-to-length Carbon-Quality Steel Plate from 
the Republic of Korea, 64 FR 73176 (December 29, 1999) (``Carbon 
Plate''), it was discovered that the GOK subsidizes slab imports 
through a duty reduction program. Under the program, the petitioners 
assert that the GOK monitors the available supply of slabs and reduces 
the tariff rate on slabs when domestic supply contracts or when the 
domestic industry makes a request. The petitioners observe that, 
although the Department did not address this program in the Carbon 
Plate final determination, it did so in the Carbon Plate Remand, where 
it was found not countervailable. The petitioners allege that there is 
no indication that rigorous policing of the program's rules on physical 
incorporation and wastage takes place, and that any finding related to 
Korea's duty drawback system (which was investigated separately in 
Carbon Plate) would not apply to this distinct up-front duty exemption 
used by plate producers. The petitioners further allege that the 
Department must take the ``time value of money'' benefit associated 
with getting an up-front duty reduction into

[[Page 54229]]

account when determining the program benefit.
    The petitioners further assert that the Department must examine 
whether cold-rolled steel producers benefitted from hot-rolled steel 
duty reductions in the POI, given that hot-rolled steel is the main 
input into cold-rolled steel. As support for their claims, the 
petitioners provide a Ministry of Commerce, Industry and Energy 
announcement of a reduced duty rate for slabs in the second half of 
2000. Finally, the petitioners note that the Department found a similar 
program to be countervailable in the 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 20255 (April 20, 2001) (``Thailand Prelim''). Thus, the 
petitioners request that the Department initiate an investigation to 
examine the extent to which Korean cold-rolled steel producers may have 
benefitted from this program.
    We are not investigating this allegation. As the petitioners note, 
the Department examined this program in Carbon Plate Remand and found 
it to be not countervailable because the slabs to which it applied were 
physically incorporated into exported products, and because producers 
would have been entitled to duty drawback even if the duties were not 
waived up front. We also found that the ``time value of money'' issue 
asserted by the petitioners does not meet the benefit criteria of 
section 771(5)(E) of the Act. Further, the Department's preliminary 
finding in Thailand Prelim provides no insight into the Korean program 
at issue here. The petitioners have provided no new information or 
evidence of changed circumstances relating to the benefit conferred by 
this program to warrant re-examination at this time.
    3. R&D Aid for Anthracite Coal Technology & Related Price 
Stabilization Measures. The petitioners allege that the GOK subsidizes 
research related to technology permitting the use of sintered 
anthracite coal in steel production. The petitioners assert that POSCO 
has increased its use of anthracite coal as a result of this research 
and development assistance. The petitioners further allege that the GOK 
suppresses anthracite coal prices for users such as producers of 
subject merchandise through the Support Program for the Coal Industry, 
which was notified to the WTO in both 1997 and 1998. Petitioners also 
allege that the steel industry is the predominant user of anthracite 
coal, and thus the beneficiary of subsidized prices.
    As the petitioners have provided no information on research and 
development subsidies linked to the production or use of anthracite 
coal, we are not initiating an investigation on research and 
development subsidies. We also are not initiating an investigation as 
to whether producers of subject merchandise benefit from subsidized 
coal prices. Because coal can be used as an input in the production of 
subject merchandise, petitioners must provide sufficient evidence 
supporting their claim of an upstream subsidy under section 771(A) of 
the Act. Additionally, the petitioners would have to meet the 
requirements outlined in 19 CFR 351.523(a) in order for the Department 
to initiate an investigation of an upstream subsidy.

Distribution of Copies of the Petitions

    In accordance with section 702(b)(4)(A)(i) of the Act, a copy of 
the public version of the respective petitions has been provided to the 
GOA, GOB, GOF, GOK, and EC. We will attempt to provide a copy of the 
public version of the respective petitions to each exporter named in 
each petition, as provided for under 19 CFR 351.203(c)(2).

ITC Notification

    We have notified the ITC of our initiations, as required by section 
702(d) of the Act.

Preliminary Determination by the ITC

    The ITC will determine, no later than November 13, 2001, whether 
there is a reasonable indication that imports of certain cold-rolled 
carbon steel flat products from Argentina, Brazil, France, and the 
Republic of Korea are causing material injury, or threatening to cause 
material injury, to an industry in the United States. A negative ITC 
determination for any country will result in the investigation being 
terminated for that country; otherwise, these investigations will 
proceed according to statutory and regulatory time limits.
    This notice is issued and published pursuant to section 777(i) of 
the Act.

    Dated: October 18, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 01-26939 Filed 10-25-01; 8:45 am]
BILLING CODE 3510-DS-P