[Federal Register Volume 69, Number 18 (Wednesday, January 28, 2004)]
[Notices]
[Pages 4114-4116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-1830]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-428-817]


Certain Corrosion-Resistant Carbon Steel Flat Products and Cut-
to-Length Carbon Steel Plate Products From Germany: Preliminary Results 
of Countervailing Duty Changed Circumstances Reviews

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

ACTION: Notice of preliminary results of countervailing duty changed 
circumstances reviews.

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SUMMARY: On December 3, 2003, in response to a request by domestic 
producers of the subject merchandise, the Department of Commerce (the 
Department) published a notice of initiation of changed circumstances 
reviews of the countervailing duty orders on certain corrosion-
resistant carbon steel flat products and cut-to-length carbon steel 
plate products from Germany. See Certain Corrosion-Resistant Carbon 
Steel Flat Products and Cut-to-Length Carbon Steel Plate Products from 
Germany: Initiation of Countervailing Duty Changed Circumstances 
Reviews, 68 FR 67657 (December 3, 2003) (Initiation Notice). In the 
Initiation Notice, we invited interested parties to comment on the 
Department's initiation. We received comments from both domestic and 
foreign parties. As a result of our review of the comments, we 
preliminarily conclude that producers accounting for substantially all 
of the production of the domestic like products to which these orders 
pertain lack interest in the relief provided by the orders.
    Unless the Department receives opposition from domestic producers 
whose production accounts for more than 15 percent of the domestic like 
product, the Department will revoke the orders on certain corrosion-
resistant carbon steel flat products and cut-to-length carbon steel 
plate products from Germany in the final results of these reviews.
    Therefore, we preliminarily revoke these orders, in whole, with 
respect to products entered, or withdrawn from warehouse, for 
consumption on or after April 1, 2004, because domestic parties have 
expressed no interest in the continuation of the orders after that 
date.

EFFECTIVE DATE: January 28, 2004.

FOR FURTHER INFORMATION CONTACT: Robert Copyak, Office of AD/CVD 
Enforcement VI, Group II, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone (202) 482-
2209.

SUPPLEMENTARY INFORMATION:

Background

    On August 17, 1993, the Department published countervailing duty 
orders on certain corrosion-resistant carbon steel flat products and 
cut-to-length carbon steel plate products from Germany. See 
Countervailing Duty Orders and Amendment to Final Affirmative 
Countervailing Duty Determinations: Certain Steel Products From 
Germany, 58 FR 43756 (August 17, 1993). On October 22, 2003, 
International Steel Group, Inc. (purchaser of Bethlehem Steel 
Corporation) and United States Steel Corporation, requested that the 
Department revoke the countervailing duty orders, effective April 1, 
2004, based on their lack of further interest in these proceedings.
    On December 3, 2003, the Department published a notice of 
initiation of changed circumstances reviews of the countervailing duty 
orders on certain corrosion-resistant carbon steel flat products and 
cut-to-length carbon steel plate products from Germany. See Initiation 
Notice. In the Initiation Notice we invited interested parties to 
comment on the Department's initiation.

[[Page 4115]]

    We received comments from Ispat Inland Inc. (Ispat). Ispat did not 
object to the changed circumstances review of the order on cut-to-
length carbon steel plate products. However, Ispat opposed the 
initiation of the review on the countervailing duty order on certain 
corrosion-resistant carbon steel flat products from Germany, expressing 
continued support for the relief provided by that order.
    Ispat questioned whether domestic producers accounting for 
substantially all, or at least 85 percent, of the production of the 
domestic like product supported revocation of the order on certain 
corrosion-resistant carbon steel flat products. Based on Ispat's 
expressed objection and the fact that those producers requesting 
revocation did not demonstrate that they account for 85 percent of 
domestic production, Ispat requested that the Department, at the very 
least, issue questionnaires to the appropriate interested parties to 
determine whether, in fact, 85 percent of the domestic industry 
supports revocation of the order.
    The German Producers (AG der Dillinger H[uuml]ttenwerke, EKO Stahl 
GmbH, Salzgitter AG Stahl und Technologie, Stahlwerke Bremen GmbH and 
Thyssen Krupp Stahl AG) submitted comments supporting the revocation of 
both countervailing duty orders. The German Producers expressed their 
belief that International Steel Group, Inc. and United States Steel 
Corporation account for 85 percent of domestic production of both 
products. They also argued that revocation of the orders should not be 
made contingent upon such a requirement in light of the wide latitude 
provided to the Department by the statute and regulations.

Scope of the Orders

    The products covered by these reviews are certain corrosion-
resistant carbon steel flat products and cut-to-length steel plate 
products from Germany.
    (1) Certain corrosion-resistant carbon steel flat products: the 
scope of countervailing duty order of certain corrosion-resistant 
carbon steel flat products (corrosion-resistant) includes flat-rolled 
carbon steel products, of rectangular shape, either clad, plated, or 
coated with corrosion-resistant metals such as zinc, aluminum, or zinc-
, aluminum-, nickel-or iron-based alloys, whether or not corrugated or 
painted, varnished or coated with plastics or other nonmetallic 
substances in addition to the metallic coating, in coils (whether or 
not in successively superimposed layers) and of a width of 0.5 inch or 
greater, or in straight lengths which, if of a thickness less than 4.75 
millimeters, are of a width of 0.5 inch or greater and which measures 
at least 10 times the thickness or if of a thickness of 4.75 
millimeters or more are of a width which exceeds 150 millimeters and 
measures at least twice the thickness, as currently classifiable in the 
Harmonized Tariff Schedule (HTS) under item numbers 7210.31.0000, 
7210.39.0000, 7210.41.0000, 7210.49.0030, 7210.49.0090, 7210.60.0000, 
7210.70.6030, 7210.70.6060, 7210.70.6090, 7210.90.1000, 7210.90.6000, 
7210.90.9000, 7212.21.0000, 7212.29.0000, 7212.30.1030, 7212.30.1090, 
7212.30.3000, 7212.30.5000, 7212.40.1000, 7212.40.5000, 7212.50.0000, 
7212.60.0000, 7215.90.1000, 7215.90.5000, 7217.12.1000, 7217.13.1000, 
7217.19.1000, 7217.19.5000, 7217.22.5000, 7217.23.5000, 7217.29.1000, 
7217.29.5000, 7217.32.5000, 7217.33.5000, 7217.39.1000, and 
7217.39.5000. Included in this scope are flat-rolled products of non-
rectangular cross-section where such 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. Excluded from this scope are flat-rolled steel 
products either plated or coated with tin, lead, chromium, chromium 
oxides, both tin and lead (terne plate), or both chromium and chromium 
oxides (tin-free steel), whether or not painted, varnished or coated 
with plastics or other nonmetallic substances in addition to the 
metallic coating. Also excluded from this scope are clad products in 
straight lengths of 0.1875 inch or more in composite thickness and of a 
width which exceeds 150 millimeters and measures at least twice the 
thickness. Also excluded from this scope are certain clad stainless 
flat-rolled products, which are three-layered corrosion-resistant 
carbon steel flat-rolled products less than 4.75 millimeters in 
composite thickness that consist of a carbon steel flat-rolled product 
clad on both sides with stainless steel in a ``20 percent--60 percent--
20 percent'' ratio. On September 22, 1999, the Department issued the 
final results of a changed circumstances review and revoked the order 
with respect to certain corrosion-resistant steel. See Notice of Final 
Results of Changed Circumstances Antidumping Duty and Countervailing 
Duty Reviews and Revocation of Orders in Part: Certain Corrosion-
Resistant Carbon Steel Flat Products From Germany, 64 FR 51292 
(September 22, 1999). The Department noted that the affirmative 
statement of no interest by petitioners, combined with the lack of 
comments from interested parties, is sufficient to warrant partial 
revocation. This partial revocation applies to certain corrosion-
resistant deep-drawing carbon steel strip, roll-clad on both sides with 
aluminum (AlSi) foils in accordance with St3 LG as to EN 10139/10140. 
The merchandise's chemical composition encompasses a core material of U 
St 23 (continuous casting) in which carbon is less than 0.08 percent; 
manganese is less than 0.30 percent; phosphorous is less than 0.20 
percent; sulfur is less than 0.015 percent; aluminum is less than 0.01 
percent; and the cladding material is a minimum of 99 percent aluminum 
with silicon/copper/iron of less than 1 percent. The products are in 
strips with thicknesses of 0.07mm to 4.0mm (inclusive) and widths of 
5mm to 800mm (inclusive). The thickness ratio of aluminum on either 
side of steel may range from 3 percent/94 percent/3 percent to 10 
percent/80 percent/10 percent.
    (2) Certain cut-to-length carbon steel plate products: The scope of 
countervailing duty order on certain cut-to-length carbon steel plate 
products (cut-to-length steel) includes hot-rolled carbon steel 
universal mill plates (i.e., flat-rolled products rolled on four faces 
or in a closed box pass, of a width exceeding 150 millimeters but not 
exceeding 1,250 millimeters and of a thickness of not less than 4 
millimeters, not in coils and without patterns in relief), of 
rectangular shape, neither clad, plated nor coated with metal, whether 
or not painted, varnished, or coated with plastics or other nonmetallic 
substances; and certain hot-rolled carbon steel flat-rolled products in 
straight lengths, of rectangular shape, hot rolled, neither clad, 
plated, nor coated with metal, whether or not painted, varnished, or 
coated with plastics or other nonmetallic substances, 4.75 millimeters 
or more in thickness and of a width which exceeds 150 millimeters and 
measures at least twice the thickness, as currently classifiable in the 
Harmonized Tariff Schedule (HTS) under 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, 
and 7212.50.0000.

[[Page 4116]]

Included are flat-rolled products of non-rectangular cross-section 
where such 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. Excluded is 
grade X-70 plate. On August 25, 1999, the Department issued the final 
results of a changed-circumstances review revoking the order in part, 
with respect to certain carbon cut-to-length steel plate with a maximum 
thickness of 80 mm in steel grades BS 7191, 355 EM and 355 EMZ, as 
amended by Sable Offshore Energy Project Specification XB MOO Y 15 
0001, types 1 and 2. See Certain Cut-to-Length Carbon Steel Plate from 
Finland, Germany, and United Kingdom: Final Results of Changed 
Circumstances Antidumping Duty and Countervailing Duty Reviews, and 
Revocation of Orders in Part, 64 FR 46343 (August 25, 1999).
    The HTS item numbers are provided for convenience and custom 
purposes. The written description remains dispositive.

Preliminary Results of Reviews and Intent To Revoke in Whole the 
Countervailing Duty Orders

    Pursuant to section 751(d)(1) of the 1930 Tariff Act, as amended 
(the Act), and 19 CFR 351.222(g), the Department may revoke an 
antidumping or countervailing duty order, in whole or in part, based on 
a review under section 751(b) of the Act (i.e., a changed circumstances 
review). Section 751(b)(1) of the Act requires a changed circumstances 
review to be conducted upon receipt of a request which shows changed 
circumstances sufficient to warrant a review. Section 782(h)(2) of the 
Act gives the Department the authority to revoke an order if producers 
accounting for substantially all of the production of the domestic like 
product have expressed a lack of interest in the continuation of the 
order. Section 351.222(g) of the Department's regulations provides that 
the Department will conduct a changed circumstances review under 19 CFR 
351.216, and may revoke an order (in whole or in part), if it concludes 
that (i) producers accounting for substantially all of the production 
of the domestic like product to which the order pertains have expressed 
a lack of interest in the relief provided by the order, in whole or in 
part, or (ii) if other changed circumstances sufficient to warrant 
revocation exist. The Department has interpreted ``substantially all'' 
production normally to mean at least 85 percent of domestic production 
of the like product. See Certain Tin Mill Products From Japan: Final 
Results of Changed Circumstances Review, 66 FR 52109 (October 12, 
2001); see also, 19 CFR 351.208(c).
    As noted above and in the Initiation Notice, the petitioners 
requested the revocation of these orders because they are no longer 
interested in maintaining the orders or in the imposition of duties on 
the subject merchandise as of April 1, 2004. Because the Department did 
not receive any comments during the comment period opposing initiation 
of the changed circumstances review of the countervailing duty order on 
cut-to-length carbon steel plate from Germany, we preliminarily 
conclude that producers accounting for substantially all of the 
production of the domestic like product to which this order pertains 
lack interest in the relief provided by the order. With respect to the 
countervailing duty order on certain corrosion-resistant carbon steel 
flat products from Germany, Ispat argued that the Department should 
issue questionnaires to determine whether 85 percent of the industry 
supports revocation of the order. We disagree. In the course of this 
changed circumstances review, we are providing ample opportunity to all 
parties to express their support for or opposition to the revocation of 
this order. As a result, it is not necessary to take the additional 
step of issuing questionnaires. Therefore, because the Department did 
not receive objections from domestic producers accounting for more than 
15 percent of production of the domestic like product, we preliminarily 
conclude that producers accounting for substantially all of the 
production of the domestic like product to which this order pertains 
lack interest in the relief provided by the order.
    In accordance with 19 CFR 351.222(g), the Department preliminarily 
determines that there is a reasonable basis to believe that changed 
circumstances exist sufficient to warrant revocation of the orders. 
Therefore, the Department is preliminarily revoking the orders on 
certain corrosion-resistant carbon steel flat products and cut-to-
length carbon steel plate products from Germany, in whole.
    Unless the Department receives opposition within the time limit set 
forth below from domestic producers whose production, cumulatively, 
totals more than 15 percent of the domestic like product, the 
Department will revoke the orders on certain corrosion-resistant carbon 
steel flat products and cut-to-length carbon steel plate products from 
Germany in its final results of review. If, as a result of these 
reviews, we revoke the orders, we intend to instruct the U.S. Customs 
and Border Protection (CBP) to terminate suspension of liquidation 
effective April 1, 2004. The current requirement for a cash deposit of 
estimated countervailing duties on the subject merchandise will 
continue unless, and until, we publish a final determination to revoke 
the orders in whole.

Public Comment

    Interested parties may submit case briefs not later than 21 days 
after the date of publication of this notice. See 19 CFR 
351.309(c)(ii). Rebuttal briefs, which must be limited to issues raised 
in such case briefs, may be filed not later than 26 days after the date 
of publication of this notice. See 19 CFR 351.309(d). Parties who 
submit arguments are requested to submit with the argument (1) a 
statement of the issue, (2) a brief summary of the argument, and (3) a 
table of authorities. Any interested party may request a hearing within 
14 days of publication of this notice. See 19 CFR 351.310(c). Any 
hearing, if requested, may be held 22 days after the date of 
publication of this notice, or the first working day thereafter, as 
practicable. Consistent with Sec. 351.216(e) of the Department's 
regulations, we will issue the final results of these changed 
circumstances reviews not later than 270 days after the date on which 
these reviews were initiated.
    This notice is published in accordance with section 751(b)(1) of 
the Act and Sec.Sec. 351.216 and 351.222 of the Department's 
regulations.

    Dated: January 22, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. 04-1830 Filed 1-27-04; 8:45 am]
BILLING CODE 3510-DS-P