[Federal Register Volume 69, Number 93 (Thursday, May 13, 2004)]
[Notices]
[Pages 26549-26551]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-10884]


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DEPARTMENT OF COMMERCE

International Trade Administration

(C-533-821)


Final Results of Countervailing Duty Administrative Review: 
Certain Hot-Rolled Carbon Steel Flat Products from India

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

ACTION: Notice of Final Results of Countervailing Duty Administrative 
Review.

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SUMMARY: On January 7, 2004, the Department of Commerce (the 
Department) published in the Federal Register its preliminary results 
of administrative review of the countervailing duty order on certain 
hot-rolled carbon steel flat products from India for the period April 
20, 2001 through December 31, 2002 (see Notice of Preliminary Results 
of Countervailing Duty Administrative Review: Certain Hot-Rolled Carbon 
Steel Flat Products from India, 69 FR 907 (January 7, 2004) 
(Preliminary Results)). The Department has now completed this 
administrative review in accordance with section 751(a) of the Tariff 
Act of 1930, as amended (the Act).
    Based on information received since the Preliminary Results and our 
analysis of the comments received, the Department has revised the net 
subsidy rate for Essar Steel, Ltd. (Essar), as discussed in the 
``Issues and Decision Memorandum from Holly A. Kuga, Acting Deputy 
Assistant Secretary for AD/CVD Enforcement II to James J. Jochum, 
Assistant Secretary for Import Administration concerning the Final 
Results of Countervailing Duty Administrative Review: Certain Hot-
Rolled Carbon Steel Flat Products from India'' (Decision Memorandum) 
dated May 6, 2004. The final net subsidy rate for the reviewed company 
is listed below in the section entitled ``Final Results of Review.''

EFFECTIVE DATE: May 13, 2004

FOR FURTHER INFORMATION CONTACT: Tipten Troidl, Cindy Robinson or Maura 
Jeffords, Office of AD/CVD Enforcement VI, Group II, Import 
Administration, U.S. Department of Commerce, Room 4012, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
2786.

SUPPLEMENTARY INFORMATION:

Background

    On January 7, 2004, the Department published in the Federal 
Register its Preliminary Results. We invited interested parties to 
comment on the results. On February 6, 2004, we received case briefs 
from petitioners and respondent. On February 11, 2004, we received 
rebuttal briefs from petitioners\1\ and respondent\2\. A public hearing 
was held at the Department on February 25, 2004.
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    \1\ Petitioners are Bethlehem Steel Corporation, National Steel 
Corporation, Nucor Corporation and United States Steel Corporation.
    \2\ Respondent is Essar Steel, Ltd. (Essar).
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    Pursuant to 19 CFR 351.213(b), this review covers only those 
producers or exporters of the subject merchandise for which a review 
was specifically requested. Accordingly, this review covers Essar. This 
review covers the assessment period from April 20, 2001 through 
December 31, 2002, and eleven programs.

Scope of the Review

    The merchandise subject to this order is certain hot-rolled flat-
rolled carbon-quality steel 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 this 
order.
    Specifically included within the scope of this order 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 included in the scope of this order, regardless of 
definitions in the Harmonized Tariff Schedule of the United States 
(HTSUS), 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 this order unless otherwise 
excluded. The following products, by way of example, are outside or 
specifically excluded from the scope of this order:
    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 HTSUS.
    Tool steels, as defined in the HTSUS.
    Silico-manganese (as defined in the HTSUS) 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

[[Page 26550]]

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.
    The merchandise subject to this order is classified in the HTSUS 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 this order, 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 HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the merchandise subject to this order is 
dispositive.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this review are addressed in the Decision Memorandum, which is hereby 
adopted by this notice. A list of the issues contained in the Decision 
Memorandum is attached to this notice as Appendix I. Parties can find a 
complete discussion of all issues raised in this review and the 
corresponding recommendations in this public memorandum, which is on 
file in room B-099 of the Main Commerce Building. In addition, a 
complete version of the Decision Memorandum can be accessed directly on 
the World Wide Web at http://ia.ita.doc.gov, under the heading 
``Federal Register Notices.'' The paper copy and electronic version of 
the Decision Memorandum are identical in content.

Final Results of Review

    In accordance with 19 CFR 351.221(b)(5), we calculated an 
individual subsidy rate for the producer/exporter, Essar, subject to 
this review. For the period April 20, 2001, through December 31, 2001, 
we determine the net subsidy ad valorem rate for Essar is 1.69 percent, 
and for the period January 01, 2002 through December 31, 2002 the net 
subsidy ad valorem rate is 16.88 percent.
    We will instruct the U.S. Customs and Border Protection (CBP) to 
assess countervailing duties as indicated above. The Department will 
instruct the CBP to collect cash deposits of estimated countervailing 
duties in accordance with the assessment rate calculated for 2002 as 
detailed above, of the f.o.b. invoice price on all shipments of the 
subject merchandise from the producer/exporter under review, entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of the final results of this administrative review.
    Because the URAA replaced the general rule in favor of a country-
wide rate with a general rule in favor of individual rates for 
investigated and reviewed companies, the procedures for establishing 
countervailing duty rates, including those for non-reviewed companies, 
are now essentially the same as those in antidumping cases, except as 
provided for in section 777A(e)(2) of the Act. The requested review 
will normally cover only those companies specifically named. See 19 CFR 
351.213(b). Pursuant to 19 CFR 351.212(c), for all companies for which 
a review was not requested, duties must be assessed at the cash deposit 
rate, and cash deposits must continue to be collected, at the rate 
previously ordered. As such, the countervailing duty cash deposit rate 
applicable to a company can no longer change, except pursuant to a 
request for a review of that company. See Federal-Mogul Corporation and 
The Torrington Company v. United States, 822 F. Supp. 782 (CIT 1993) 
and Floral Trade Council v. United States, 822 F. Supp. 766 (CIT 1993). 
Therefore, the cash deposit rates for all companies except those 
covered by this review will be unchanged by the results of this review.
    We will instruct the CBP to continue to collect cash deposits for 
non-reviewed companies at the most recent company-specific or country-
wide rate applicable to the company. Accordingly, the cash deposit 
rates that will be applied to non-reviewed companies covered by this 
order will be the rate for that company established in the most 
recently completed administrative proceeding conducted under the URAA. 
See Notice of Amended Final Determination and Notice of Countervailing 
Duty Orders: Certain Hot-Rolled Carbon Steel Flat Products from India 
and Indonesia, 66 FR 60198 (December 3, 2001). This rate shall apply to 
all non-reviewed companies until a review of a company assigned this 
rate is requested. In addition, for the period April 20, 2001 through 
December 31, 2002, the assessment rates applicable to all non-reviewed 
companies covered by this order are the cash deposit rates in effect at 
the time of entry.
    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return/destruction of APO materials or conversion to 
judicial protective order is hereby requested. Failure to comply with 
the regulations and the terms of an APO is a sanctionable violation.
    This administrative review and notice are issued and published in 
accordance with section 751(a)(1) of the Act.

    Dated: May 6, 2004.
Jeffrey A. May,
Acting Assistant Secretaryfor Import Administration.

Appendix I - Issues and Decision Memorandum

I.SUBSIDIES VALUATION INFORMATION

A. Creditworthiness
B. Benchmarks for Loans and Discount Rates

II. ANALYSIS OF PROGRAMS

A. Programs Conferring Subsidies
1. Pre-Shipment Export Financing
2. Export Promotion of Capital Goods Scheme (EPCGS)
3. Bombay Relief Undertaking Act (BRU)
4. Duty Entitlement Passbook Scheme

B. Programs Determined to Be Not Used

1. Corporate Debt Restructuring (CDR)
2. Duty Free Remission Certificate Scheme
3. Sick Industrial Companies Act and Board for Industrial and Financial 
Reconstruction
4. Advance Licenses
5. Exemption of Export Credit from Interest Taxes
6. Income Tax Deductions Under Section 80 HHC

[[Page 26551]]

7. Post-Shipment Export Financing

III. TOTAL AD VALOREM RATE

IV. ANALYSIS OF COMMENTS

Comment 1: Denominator for the Pre-Shipment Export Financing Program
Comment 2: Financial Contribution and Benefit under the Duty 
Entitlement Passbook Scheme (DEPS) Program
Comment 3: Benefit Calculation for DEPS
Comment 4: Revision of Benefits under the Export Promotion Capital 
Goods Scheme (EPCGS)
Comment 5: Countervailability of the Bombay Relief Undertaking Act 
(BRU)
Comment 6: Recalculation of the Benefit to Essar under the BRU
Comment 7:Changes to Draft Customs Instructions
[FR Doc. 04-10884 Filed 5-12-04; 8:45 am]
BILLING CODE 3510-DS-S