[Federal Register Volume 68, Number 95 (Friday, May 16, 2003)]
[Notices]
[Pages 26572-26573]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-12313]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-357-815]


Notice of Intent to Rescind Countervailing Duty Administrative 
Review: Certain Hot-Rolled Carbon Steel Flat Products from Argentina

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

ACTION: Notice of Intent to Rescind Countervailing Duty Administrative 
Review.

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SUMMARY: On October 24, 2002, the Department of Commerce (the 
Department) initiated an administrative review of the countervailing 
duty order on certain hot-rolled carbon steel flat products from 
Argentina (hot-rolled products), covering the period January 1, 2001 
through December 31, 2001, and one manufacturer/exporter of the subject 
merchandise, Siderar Sociedad Anomina Industrial & Commercial 
(Siderar). See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 67 FR 65336 (October 24, 2002). The Department 
intends to rescind this review due to Siderar's lack of shipments 
during the period of review.

EFFECTIVE DATE: May 16, 2003.

FOR FURTHER INFORMATION CONTACT: Stephanie Moore or Cindy Robinson, AD/
CVD Enforcement, Office 6, Group II, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, D.C. 20230; telephone: 
(202) 482-3692 or (202) 482-3797, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On September 30, 2002, the Department received a letter from 
Siderar requesting an administrative review of the countervailing order 
on hot-rolled products from Argentina. On October 24, 2002, the 
Department initiated an administrative review of this order for the 
period January 1, 2001 through December 31, 2001 (period of review). On 
November 19, 2002, the Department held an ex parte meeting with 
representatives of the Government of Argentina and Siderar. See 
Memorandum to the File from Melissa G. Skinner, Director dated November 
20, 2002, which is on file in the Central Records Unit (CRU), Room B-
099, Main Building of the Department of Commerce. At that meeting, 
Siderar informed the Department that it did not have any shipments of 
the subject merchandise to the United States during the period of 
review (POR). On January 22, 2003, the Department conducted a customs 
query to ascertain whether there were any entries, exports, or sales of 
the subject merchandise from Siderar during the POR; the query showed 
that there were none. See Memorandum to The File from Team regarding 
Customs Query dated May 8, 2003, the public version of which is on file 
in the CRU.
    On February 11, 2003, petitioners requested that the Department 
rescind the initiation and terminate the administrative review based on 
Siderar's statement that it had no shipments. See letter from Dewey 
Ballantine LLP on behalf of domestic producers Bethlehem Steel 
Corporation, United States Steel Corporation and National Steel Corp., 
on file in the CRU. On March 7, 2003, Siderar submitted a letter 
responding to petitioners' comments and acknowledging that it had no 
shipments of subject merchandise to the United States during the POR. 
See letter from White & Case on behalf of Siderar, on file in the CRU.

Scope of the Review

    Imports covered by this review are shipments of certain hot-rolled 
carbon-quality steel from Argentina: (1) universal mill plates (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 nominal or 
actual thickness of not less than 4 mm, which are cut-to-length (not in 
coils) and without patterns in relief), of iron or non-alloy-quality 
steel; and (2) flat-rolled products, hot-rolled, of a nominal or actual 
thickness of 4.75 mm or more and of a width which exceeds 150 mm and 
measures at least twice the thickness, and which are cut-to-length (not 
in coils). Steel products included in the scope are of rectangular, 
square, circular or other shape and of rectangular or non-rectangular 
cross-section where such non-rectangular cross-section is achieved 
subsequent to the rolling process (i.e., products which have been 
``worked after rolling'')--for example, products which have been 
beveled or rounded at the edges. Steel products that meet the noted 
physical characteristics that are painted, varnished or coated with 
plastic or other non-metallic substances are included within this 
scope. Also, specifically included in the scope are high strength, low 
alloy (HSLA) steels. HSLA steels are recognized as steels with micro-
alloying levels of elements such as chromium, copper, niobium, 
titanium, vanadium, and molybdenum. Steel products included in this 
scope, regardless of Harmonized Tariff Schedule of the United States 
(HTSUS) definitions, are products in which: (1) iron predominates, by 
weight, over each of the other contained elements; (2) the carbon 
content is two percent or less, by weight; and (3) none of the elements 
listed below is equal to or exceeds the quantity, by weight, 
respectively indicated: 1.80 percent of manganese, or 1.50 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 0.41 percent of 
titanium, or 0.15 percent of vanadium, or 0.15 percent zirconium. All 
products that meet the written physical description, and in which the 
chemistry quantities do not equal or exceed any one of the levels 
listed above, are within the scope unless otherwise specifically 
excluded. The following products are specifically excluded from the 
scope: (1) products clad, plated, or coated with metal, whether or not 
painted, varnished or coated with plastic or other non-metallic 
substances; (2) SAE grades (formerly AISI grades) of series 2300 and 
above; (3) products made to ASTM A710 and A736 or their proprietary 
equivalents; (4) abrasion-resistant steels (i.e., USS AR 400, USS AR 
500); (5) products made to ASTM A202, A225, A514 grade S, A517 grade S, 
or their proprietary equivalents; (6) ball bearing

[[Page 26573]]

steels; (7) tool steels; and (8) silicon manganese steel or silicon 
electric steel.
    The products covered by this review are provided for under the 
following HTSUS item numbers: 7208.40.3030, 7208.40.3060, 7208.51.0030, 
7208.51.0045, 7208.51.0060, 7208.52.0000, 7208.53.0000, 7208.90.0000, 
7210.70.3000, 7210.90.9000, 7211.13.0000, 7211.14.0030, 7211.14.0045, 
7211.90.0000, 7212.40.1000, 7212.40.5000, 7212.50.0000, 7225.40.3050, 
7225.40.7000, 7225.50.6000, 7225.99.0090, 7226.91.5000, 7226.91.7000, 
7226.91.8000, 7226.99.0000.
    Although the HTSUS subheadings are provided for convenience and 
Customs purposes, the written description of the scope of this 
proceeding is dispositive.

Rescission of Review

    In their February 11, 2003, request that the Department rescind the 
review, petitioners asserted that the Department's consistent practice 
has been to rescind an administrative review upon learning that no 
shipments of subject merchandise occurred during the relevant POR. They 
cited to several notices in which the Department rescinded antidumping 
administrative reviews on the basis of lack of shipments. Petitioners 
also cited to the preliminary results of Carbon Steel Wire Rod from New 
Zealand, 56 FR 33253 (July 19, 1991) and the preliminary results of 
Brass Sheet and Strip from Brazil, 56 FR 33252 (July 19, 1991) as the 
only two instances they could locate where the Department decided to 
complete administrative reviews of countervailing duty (CVD) orders for 
a POR during which no shipments of the subject merchandise occurred. 
However, they asserted that both of these reviews preceded the Uruguay 
Round Agreements Act (URAA) and involved a program-wide change in which 
the subsidy programs to be reviewed had been terminated. Given the 
post-URAA regulations and practice and the lack of a program-wide 
change, petitioners argued that the Department should promptly rescind 
the instant review.
    On March 7, 2003, Siderar confirmed that it did not have any 
shipments of subject merchandise to the United States during the POR. 
However, Siderar submitted that the Department has the discretion to 
conduct an administrative review in this case for the purpose of 
adjusting Siderar's deposit rate. Siderar stated that it requested this 
administrative review for the sole purpose of having the Department's 
determination in the recently completed investigation of cold rolled 
products from Argentina\1\ extended to this case and having the CVD 
deposit adjusted accordingly. Siderar stated that the factual 
circumstances of this case are clear and not in dispute.
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    \1\ See Final Negative Countervailing Duty Determination: 
Certain Cold-Rolled Carbon Steel Flat Products From Argentina, 67 FR 
62106 (October 3, 2002) (Cold Rolled); Issues and Decision 
Memorandum of September 23, 2002 from Richard W. Moreland to Faryar 
Shirzad.
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    In support of its position that the Department has the discretion 
to conduct a CVD administrative review for the purpose of adjusting the 
cash deposit rate even in the absence of shipments during the review 
period, Siderar pointed out that the Department has done so in the 
past. Siderar cited Carbon Steel Wire Rod From New Zealand,\2\ where a 
program-wide change involving the termination of two government 
programs took place, and to precedent.\3\ Siderar asserted that, in 
that case, the Department concluded that Section 751 of the Tariff Act 
of 1930, as amended (the Act) (19 U.S.C. Sec.  1675 (a)(1)) authorizes 
it to conduct annual administrative reviews to determine the amount of 
any net countervailing subsidy and estimated duty to be deposited, even 
in the absence of entries, shipments, or exports. Siderar acknowledged 
that the issue in this review does not involve a ``program-wide 
change.'' However, it argued that the Department's determination in 
Cold Rolled has the same effect as a program-wide change in that it 
removes the legal and factual basis for the collection of deposits at 
the rate previously established. See the letter from Siderar to the 
Department dated March 7, 2003, which is on file in the CRU.
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    \2\ Carbon Steel Wire Rod From New Zealand: Final Results of 
Countervailing Duty Administrative Review (Carbon Steel Wire from 
New Zealand), 56 FR 28863 (June 25, 1991).
    \3\ See Certain Electrical Aluminum Redraw Rod from Venezuela: 
Final Results of Countervailing Duty Administrative Review, 56 FR at 
14232 (April 8, 1991) (``where the Department Conducted a review and 
changed the case deposit rate as a result of a program-wide change 
despite no entries or exports'') 56 FR at 28864.
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    We agree with petitioners that it has been the Department's 
practice to rescind administrative reviews when we find a lack of 
exports. See Certain Hot-Rolled Lead and Bismuth Carbon Steel Products 
From Germany: Notice of Termination of Countervailing Duty 
Administrative Review, 64 FR 44489 (August 16, 1999), and Final Results 
and Partial Rescission of Countervailing Duty Administrative Review: 
Stainless Steel Sheet and Strip From the Republic of Korea, 68 FR 13267 
(March 19, 2003).
    In accordance with the Department's regulations, and consistent 
with its practice, the Department intends to rescind the administrative 
review of hot-rolled products from Argentina for the period January 1, 
2001 to December 31, 2001 due to no shipments during the POR. See 19 
CFR section 351.213(d)(3), which states in pertinent part: ``The 
Secretary may rescind an administrative review under this section, in 
whole or only with respect to a particular exporter or producer, if 
during the POR, there were no entries, exports, or sales of the subject 
merchandise.''
    This notice is in accordance with section 751(a)(1) of the Act, and 
section 351.213(d) of the Department's regulations.

    Dated: May 9, 2003.
Holly A. Kuga,
Acting Deputy Assistant Secretary for Import Administration.
[FR Doc. 03-12313 Filed 5-15-03; 8:45 am]
BILLING CODE 3510-DS-S