[Federal Register Volume 66, Number 236 (Friday, December 7, 2001)]
[Notices]
[Pages 63523-63524]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-30375]


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

DEPARTMENT OF COMMERCE

International Trade Administration

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


Certain Cold-Rolled Carbon Steel Flat Products From Argentina, 
Brazil, France, and the Republic of Korea: Extension of Time Limit for 
Preliminary Determinations in Countervailing Duty Investigations

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

ACTION: Notice of extension of time limit for preliminary 
determinations in countervailing duty investigations.

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

SUMMARY: The Department of Commerce is extending the time limit of the 
preliminary determinations in the countervailing duty (``CVD'') 
investigations of certain cold-rolled carbon steel flat products from 
Argentina, Brazil, France, and the Republic of Korea from December 22, 
2001 until no later than January 28, 2002. This extension is made 
pursuant to section 703(c)(1)(B) of the Tariff Act of 1930, as amended 
by the Uruguay Round Agreements Act.

EFFECTIVE DATE: December 7, 2001.

FOR FURTHER INFORMATION CONTACT: Suresh Maniam (Argentina and France), 
at (202) 482-0176; Sean Carey (Brazil), at (202) 482-3964; and Tipten 
Troidl (the Republic of Korea), at (202) 482-1767, Import 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Applicable Statute and Regulations

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

Extension of Due Date for Preliminary Determinations

    On October 18, 2001, the Department of Commerce (``the 
Department'') initiated the CVD investigations of certain cold-rolled 
carbon steel flat products from Argentina, Brazil, France, and the 
Republic of Korea. See Notice of Initiation of Countervailing Duty 
Investigations: Certain Cold-Rolled Carbon Steel Flat Products From 
Argentina, Brazil, France, and the Republic of Korea, 66 FR 54218 
(October 26, 2001). Currently, the preliminary determinations are due 
no later than December 22, 2001. However, pursuant to section 
703(c)(1)(B) of the Act, we have determined that these investigations 
are ``extraordinarily complicated'' and are therefore extending the due 
date for the preliminary determinations by 37 days to no later than 
January 28, 2002. The Department notes that on November 27, 2001, 
petitioners submitted a letter to the Department indicating that they 
would not object to a 35-day postponement of the preliminary 
determinations. This requested postponement would result in a deadline 
that would fall on Saturday, January 26, 2002. Therefore, the 
Department has extended the due date for its preliminary determinations 
by 37 days, until the following Monday, January 28, 2002.
    Under section 703(c)(1)(B), the Department can extend the period 
for reaching a preliminary determination until not later than the 130th 
day after the date on which the administering authority initiates an 
investigation if:
    (B) The administering authority concludes that the parties 
concerned are cooperating and determines that
    (i) the case is extraordinarily complicated by reason of
    (I) the number and complexity of the alleged countervailable 
subsidy practices;
    (II) the novelty of the issues presented;
    (III) the need to determine the extent to which particular 
countervailable subsidies are used by individual manufacturers, 
producers, and exporters; or
    (IV) the number of firms whose activities must be investigated; and
    (ii) additional time is necessary to make the preliminary 
determination.

Regarding the first requirement, we find that in each case all 
concerned parties are cooperating. Regarding the second requirement for 
extraordinarily complicated cases, it is the Department's position that 
the appropriate criterion for analysis is not the number of programs in 
question, but rather, the specific transactions, e.g., equity 
infusions, debt-to-equity conversions, etc., applied under those 
programs, which are numerous and appropriately categorized as 
``practices.'' With respect to the issue of the complexity of the 
practice, these practices are complex in nature as reflected in the 
extensive analysis required to address these subsidies.

[[Page 63524]]

Therefore, we find that each of these four cases is extraordinarily 
complicated as described below.

Argentina

    The Argentine investigation is extraordinarily complicated because 
a number of the alleged countervailable subsidies practices are complex 
or novel. For example, the Department must analyze complicated equity 
and debt assumption issues, involving multiple transactions, and 
conduct extensive and complex financial analysis. In addition, the 
Department is examining a ``committed investment'' which requires the 
examination of complicated circumstances and documents surrounding the 
privatization of the respondent. Furthermore, the Department is 
analyzing significant amounts of information in order to determine 
whether the respondent was ``creditworthy'' when the government 
provided equity and loans to the company (i.e., whether a private 
investor would have provided the types of financing that the government 
provided) and/or was ``equityworthy'' when the government made certain 
equity infusions (i.e., examining the government's investment decision 
against that of a private investor). In making these decisions, the 
Department must also determine the extent to which the particular 
countervailable subsidies are used by the individual respondent 
producers/exporters.

Brazil

    The Brazilian investigation is extraordinarily complicated by 
reason of the number and complexity of the alleged countervailable 
subsidy practices. The Department has to reexamine the privatization of 
Brazilian mills under its new change-in-ownership methodology, which 
will involve the analysis of complicated circumstances and documents. 
In addition, petitioners have submitted additional allegations of new 
programs involving complex issues which will require novel and detailed 
analysis. In making these decisions, the Department must also determine 
the extent to which the particular countervailable subsidies are used 
by the individual respondent producers/exporters.

France

    The French investigation is extraordinarily complicated because a 
number of the alleged programs are complex or novel. For example, the 
Department must analyze complicated equity and loan financing issues, 
involving extensive and complex financial analysis. The shareholder 
advance allegation will require the Department to delve into the 
investment decision process of the government. In addition, the 
Department is examining novel tax issues, involving tax benefits for 
foreign branches. Also, the Department will be analyzing several 
programs that have never been examined before or were deferred in a 
previous case, including government advances for SODIs, funding for 
electric arc furnaces, and a repayable grant to Sollac for ``pre-
coating'' technology. Finally, the Department will be examining several 
allegations that the European Union provided new, additional funding to 
programs that were previously found not to be used on several 
occasions, requiring the Department to re-analyze the 
countervailability of some of these programs.

The Republic of Korea

    The Korean investigation is extraordinarily complicated due to the 
number and complexity of the alleged countervailable subsidy practices. 
Specifically, there are nineteen programs which the Department is 
investigating, which involve numerous and complicated issues. Over one-
fourth of these programs have never been investigated before and 
present novel issues, and over one-half of these programs require a 
significant amount of information and complex analysis, such as the 
various tax exemptions and credit programs. In addition, the subsidized 
infrastructure and R&D allegations are complex, and require various 
types of data and information. In making these decisions, the 
Department must also determine the extent to which the particular 
countervailable subsidies are used by the individual respondent 
producers/exporters.
    Accordingly, we deem these investigations to be extraordinarily 
complicated and determine, with regard to the third requirement noted 
above, that additional time is necessary to make the preliminary 
determinations. Therefore, pursuant to section 703(c)(1)(B) of the Act, 
we are postponing the preliminary determinations in these 
investigations to January 28, 2002.
    This notice is published pursuant to section 703(c)(2) of the Act.

    Dated: November 30, 2001.
Richard W. Moreland,
Acting Assistant Secretary for Import Administration.
[FR Doc. 01-30375 Filed 12-6-01; 8:45 am]
BILLING CODE 3510-DS-P