[Federal Register Volume 66, Number 232 (Monday, December 3, 2001)]
[Notices]
[Pages 60198-60200]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-29812]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-821, C-560-813]


Notice of Amended Final Determination and Notice of 
Countervailing Duty Orders: Certain Hot-Rolled Carbon Steel Flat 
Products From India and Indonesia

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

EFFECTIVE DATE: December 3, 2001.

FOR FURTHER INFORMATION CONTACT: Eric B. Greynolds (202) 482-6071 
(India), and Stephanie Moore (202) 482-3692 (Indonesia), Office of AD/
CVD Enforcement VI, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230.

[[Page 60199]]

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions of the Tariff Act of 1930, as amended by 
the Uruguay Round Agreements Act effective January 1, 1995 (the Act). 
In addition, unless otherwise indicated, all citations to the 
Department's regulations are to the current regulations codified at 19 
CFR part 351 (2001).

Scope of Orders

    For purposes of these orders, the products covered are certain hot-
rolled flat-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 
these orders.
    Specifically included within the scope of these orders are vacuum 
degassed, fully stabilized (commonly referred to as interstitial-free 
(IF)) steels, high strength low alloy (HSLA) steels, and the substrate 
for motor lamination steels. IF steels are recognized as low carbon 
steels with micro-alloying levels of elements such as titanium or 
niobium (also commonly referred to as columbium), or both, added to 
stabilize carbon and nitrogen elements. HSLA steels are recognized as 
steels with micro-alloying levels of elements such as chromium, copper, 
niobium, vanadium, and molybdenum. The substrate for motor lamination 
steels contains micro-alloying levels of elements such as silicon and 
aluminum.
    Steel products to be included in the scope of these orders, 
regardless of definitions in the Harmonized Tariff Schedule of the 
United States (HTS), are products in which: (i) Iron predominates, by 
weight, over each of the other contained elements; (ii) the carbon 
content is 2 percent or less, by weight; and (iii) none of the elements 
listed below exceeds the quantity, by weight, respectively indicated:

1.80 percent of manganese, or
2.25 percent of silicon, or
1.00 percent of copper, or
0.50 percent of aluminum, or
1.25 percent of chromium, or
0.30 percent of cobalt, or
0.40 percent of lead, or
1.25 percent of nickel, or
0.30 percent of tungsten, or
0.10 percent of molybdenum, or
0.10 percent of niobium, or
0.15 percent of vanadium, or
0.15 percent of zirconium.

    All products that meet the physical and chemical description 
provided above are within the scope of these orders unless otherwise 
excluded. The following products, by way of example, are outside or 
specifically excluded from the scope of these orders:
     Alloy hot-rolled steel products in which at least one of 
the chemical elements exceeds those listed above (including, e.g., ASTM 
specifications A543, A387, A514, A517, A506).
     SAE/AISI grades of series 2300 and higher.
     Ball bearings steels, as defined in the HTS.
     Tool steels, as defined in the HTS.
     Silico-manganese (as defined in the HTS) or silicon 
electrical steel with a silicon level exceeding 2.25 percent.
     ASTM specifications A710 and A736.
     USS Abrasion-resistant steels (USS AR 400, USS AR 500).
     All products (proprietary or otherwise) based on an alloy 
ASTM specification (sample specifications: ASTM A506, A507).
     Non-rectangular shapes, not in coils, which are the result 
of having been processed by cutting or stamping and which have assumed 
the character of articles or products classified outside chapter 72 of 
the HTS.
    The merchandise subject to these orders are classified in the HTS 
at subheadings: 7208.10.15.00, 7208.10.30.00, 7208.10.60.00, 
7208.25.30.00, 7208.25.60.00, 7208.26.00.30, 7208.26.00.60, 
7208.27.00.30, 7208.27.00.60, 7208.36.00.30, 7208.36.00.60, 
7208.37.00.30, 7208.37.00.60, 7208.38.00.15, 7208.38.00.30, 
7208.38.00.90, 7208.39.00.15, 7208.39.00.30, 7208.39.00.90, 
7208.40.60.30, 7208.40.60.60, 7208.53.00.00, 7208.54.00.00, 
7208.90.00.00, 7211.14.00.90, 7211.19.15.00, 7211.19.20.00, 
7211.19.30.00, 7211.19.45.00, 7211.19.60.00, 7211.19.75.30, 
7211.19.75.60, and 7211.19.75.90. Certain hot-rolled flat-rolled 
carbon-quality steel covered by these orders, including: Vacuum 
degassed fully stabilized; high strength low alloy; and the substrate 
for motor lamination steel may also enter under the following tariff 
numbers: 7225.11.00.00, 7225.19.00.00, 7225.30.30.50, 7225.30.70.00, 
7225.40.70.00, 7225.99.00.90, 7226.11.10.00, 7226.11.90.30, 
7226.11.90.60, 7226.19.10.00, 7226.19.90.00, 7226.91.50.00, 
7226.91.70.00, 7226.91.80.00, and 7226.99.00.00. Subject merchandise 
may also enter under 7210.70.30.00, 7210.90.90.00, 7211.14.00.30, 
7212.40.10.00, 7212.40.50.00, and 7212.50.00.00. Although the HTS 
subheadings are provided for convenience and U.S. Customs purposes, the 
Department's written description of the merchandise subject to these 
proceedings is dispositive.

Amended Final Determination for India

    On October 3, 2001, petitioners\1\ alleged ministerial errors in 
the calculations of the Final Affirmative Countervailing Duty 
Determination: Certain Hot-Rolled Carbon Steel Flat Products from 
India, 66 FR 49635 (September 28, 2001) (Final Determination), with 
respect to Essar Steel Limited (Essar) and the Steel Authority of India 
Limited (SAIL). On October 9, 2001, we received comments from SAIL 
regarding petitioners' ministerial error allegations.
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    \1\ The petitioners in these proceedings are 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 
Independent Steelworkers of America.
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    Regarding Essar, petitioners alleged that the Department 
incorrectly calculated the number of days outstanding for one of 
Essar's Pre-Shipment loans. We agree with petitioners and have 
recalculated the benefit under the program using the correct number of 
days outstanding.
    Regarding SAIL, petitioners alleged that the Department incorrectly 
calculated the ad valorem subsidy rate for SAIL's Steel Development 
Fund (SDF) loan that was outstanding during the period of investigation 
(POI). They argued that in calculating the benefit under the program, 
the Department properly calculated the benefit from the interest 
deferral granted to the company in each month but inadvertently failed 
to take into account the additional benefit received by SAIL from each 
month's interest deferral over the entire POI. In other words, they 
contended that the Department should calculate the benefit from the 
January interest payment deferral over a 12-month period, the benefit 
from the February interest payment deferral over an 11-

[[Page 60200]]

month period, etc. SAIL argued that if the Department agrees with 
petitioners, it should revise the approach advocated by petitioners so 
that the duration of each interest payment deferral period is 
calculated on the last day of each month, which was the day the 
interest payment was due. We agree with petitioners that we should take 
into account the benefit received by SAIL from each month's interest 
waiver over the entire POI. The Department's Countervailing Duty (CVD) 
Regulations state that interest-free loans and deferred interest 
payments should be treated as government-provided loans in the amount 
of the interest deferred. See Preamble to CVD Regulations at 63 FR 
65369 and 19 CFR 351.509(a)(2). Accordingly, we have revised our 
calculation under this program such that the benefit corresponds to the 
duration of each interest payment deferral period during the POI. In 
addition, in accordance with SAIL's comments, we have calculated the 
duration of each interest payment deferral period beginning on the last 
day of each month.
    Regarding SAIL, petitioners further alleged that with respect to 
the company's use of the Exemption of Pre-Shipment Export Credit from 
Interest Tax program, the Department inadvertently divided the benefit 
by SAIL's total export sales rather than dividing the benefit by SAIL's 
total sales of subject merchandise to the United States. We agree with 
petitioners. Information on the record of this investigation indicates 
that SAIL's use of this program is tied to individual shipments. 
Accordingly, we have divided SAIL's benefit under this program by its 
total sales of subject merchandise to the United States.
    The corrections for Essar and SAIL are discussed in further detail 
in the October 16, 2001 memorandum to Bernard Carreau, Deputy Assistant 
Secretary, AD/CVD Enforcement II, Import Administration, from Melissa 
G. Skinner, Director, Office of AD/CVD Enforcement VI. The public 
version of this memorandum is on file in Room B-099 in the Central 
Records Unit (CRU) of the Main Commerce Building.
    As a result of our corrections, the estimated net countervailable 
subsidy rate attributable to Essar increased from 8.32 percent ad 
valorem to 8.35 percent ad valorem. The cash deposit rate attributable 
to Essar increased from 8.25 percent ad valorem to 8.28 percent ad 
valorem. The estimated net countervailable subsidy rate attributable to 
SAIL increased from 18.38 percent ad valorem to 18.45 percent ad 
valorem. The cash deposit rate attributable to SAIL increased from 
18.22 percent ad valorem to 18.27 percent ad valorem.
    Due to the revisions of Essar's and SAIL's net subsidy and cash 
deposit rates, the all others rate has also changed. The all others net 
countervailable subsidy rate increased from 16.17 percent ad valorem to 
16.20 percent ad valorem. The all others cash deposit rate increased 
from 16.08 percent ad valorem to 16.10 percent ad valorem.

Countervailing Duty Orders

    In accordance with section 705(d) of the Act, on September 28, 
2001, the Department published its final determinations in the 
countervailing duty investigations of certain hot-rolled carbon steel 
flat products from India (66 FR 49635) and Indonesia (66 FR 49637). On 
November 13, 2001, the International Trade Commission (ITC) notified 
the Department of its final determination, pursuant to section 
705(b)(1)(A)(i) of the Act, that an industry in the United States 
suffered material injury as a result of subsidized imports of certain 
hot-rolled carbon steel flat products from India and Indonesia.
    Therefore, countervailing duties will be assessed on all 
unliquidated entries of certain hot-rolled carbon steel flat products 
from India and Indonesia entered, or withdrawn from warehouse, for 
consumption on or after April 20, 2001, the date on which the 
Department published its preliminary affirmative countervailing duty 
determinations in the Federal Register, and before August 18, 2001, the 
date the Department instructed the U.S. Customs Service to discontinue 
the suspensions of liquidation in accordance with section 703(d) of the 
Act, and on all entries and withdrawals of subject merchandise made on 
or after the date of publication of these countervailing duty orders in 
the Federal Register. Section 703(d) states that the suspension of 
liquidation pursuant to a preliminary determination may not remain in 
effect for more than four months. Entries of certain hot-rolled carbon 
steel flat products made on or after August 18, 2001, and prior to the 
date of publication of these orders in the Federal Register are not 
liable for the assessment of countervailing duties due to the 
Department's discontinuation, effective August 18, 2001, of the 
suspensions of liquidation.
    In accordance with section 706 of the Act, the Department will 
direct U.S. Customs officers to reinstitute the suspension of 
liquidation for certain hot-rolled carbon steel flat products from 
India and Indonesia effective the date of publication of this notice in 
the Federal Register and to assess, upon further advice by the 
Department pursuant to section 706(a)(1) of the Act, countervailing 
duties for each entry of the subject merchandise in an amount based on 
the net countervailable subsidy rates for the subject merchandise.
    On or after the date of publication of this notice in the Federal 
Register, U.S. Customs officers must require, at the same time as 
importers would normally deposit estimated duties on this merchandise, 
a cash deposit equal to the rates noted below. The All Others rates 
apply to all producers and exporters of certain hot-rolled carbon steel 
flat products from India and Indonesia not specifically listed below. 
The cash deposit rates are as follows:

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         Producer/exporter: India                 Cash deposit rate
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Essar Steel Limited (Essar)...............  8.28 percent ad valorem.
Ispat Industries Limited (Ispat)..........  31.89 percent ad valorem.
Steel Authority of India Limited (SAIL)...  18.27 percent ad valorem.
Tata Iron and Steel Company Limited         9.17 percent ad valorem.
 (TISCO).
All Others Rate...........................  16.10 percent ad valorem.
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       Producer/exporter:  Indonesia              Cash deposit rate
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P.T. Krakatau Steel.......................  10.21 percent ad valorem.
All Others Rate...........................  10.21 percent ad valorem
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    This notice constitutes the countervailing duty orders with respect 
to certain hot-rolled carbon steel flat products from India and 
Indonesia, pursuant to section 706(a) of the Act. Interested parties 
may contact the CRU, for copies of an updated list of countervailing 
duty orders currently in effect.
    These countervailing duty orders and amended final determination 
are issued and published in accordance with sections 706(a) and 705 of 
the Act and 19 CFR 351.211 and 351.224.

    Dated: November 21, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 01-29812 Filed 11-30-01; 8:45 am]
BILLING CODE 3510-DS-P