[Federal Register Volume 69, Number 234 (Tuesday, December 7, 2004)]
[Notices]
[Pages 70655-70657]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3480]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-351-829]


Hot-Rolled Flat-Rolled Carbon-Quality Steel From Brazil; Final 
Results of the Expedited Sunset Review of the Countervailing Duty Order

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On May 3, 2004, the Department of Commerce (``the 
Department'') initiated a sunset review of the countervailing duty 
(``CVD'') order on hot-rolled flat-rolled carbon-quality steel (``hot-
rolled steel'') from Brazil pursuant to section 751(c) of the Tariff 
Act of 1930, as amended (``the Act''). See Initiation of Five-Year 
(Sunset) Reviews, 69 FR 24118 (May 3, 2004). On the basis of a notice 
of intent to participate and adequate substantive responses filed on 
behalf of domestic interested parties and inadequate response from 
respondent interested parties (in this case, no response), the 
Department conducted an expedited (120-day) sunset review. As a result 
of this review, the Department finds that revocation of the CVD order 
would likely lead to continuation or recurrence of subsidies at the 
levels indicated in the ``Final Results of Review'' section of this 
notice.

EFFECTIVE DATES: December 7, 2004.

FOR FURTHER INFORMATION CONTACT: Hilary Sadler, Esq., Office of Policy 
for Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230; telephone: (202) 482-4340.

SUPPLEMENTARY INFORMATION:

Background

    On May 3, 2004, the Department initiated a sunset review of the CVD 
order on hot-rolled steel from Brazil pursuant to section 751(c) of the 
Act. See Initiation of Five-Year (Sunset) Reviews, 69 FR 24118 (May 3, 
2004). The Department received notices of intent to participate and 
substantive responses from Nucor Corp. (``Nucor''); Ispat Inland, Inc., 
and its division Ispat Inland Flat Products (``Ispat Inland''); 
International Steel Group, Inc. (``International Steel Group''); 
Gallatin Steel Co. (``Gallatin Steel''); IPSCO Steel Inc. (``IPSCO''); 
Steel Dynamics, Inc. (``Steel Dynamics''); and United States Steel 
Corp. (``United States Steel'') (collectively, ``domestic interested 
parties'') within the applicable deadline specified in section 
351.218(d)(1)(i) of the Sunset Regulations. See Notice of Gallatin 
Steel, IPSCO and Steel Dynamics, May 13, 2004; Notice of Nucor, May 6, 
2004; Notice of United States Steel, May 18, 2004; Notice of 
International Steel Group, May 18, 2004; Notice of Ispat Inland, May 
14, 2004. All domestic interested parties claimed interested-party 
status, under section 771(9)(C) of the Act, as U.S. producers of the 
domestic like product. See Domestic Response of the Domestic Interested 
Parties (June 2, 2004). Ispat Inland, Gallatin Steel, IPSCO, Steel 
Dynamics and United States Steel were petitioners in the investigation 
and have been involved in this proceeding since its inception. Id. at 
3. According to the domestic interested parties in this review, 
International Steel Group formed in 2002 and is the successor to the 
original petitioners that no longer exist: LTV Steel Company, Bethlehem 
Steel Corporation, and Weirton Steel Corporation. Id.
    As a result of the lack of respondent participation in this sunset 
review, pursuant to section 751(c)(3)(B) of the Act and 19 CFR 
351.218(e)(1)(ii)(C)(2), the Department conducted an expedited (120-
day) sunset review of this order.

Scope of Review

    For purposes of this order, the products covered are 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 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 investigations.
    Specifically included in this scope 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 and/or niobium added 
to stabilize carbon and nitrogen elements. HSLA steels are recognized 
as steels with micro-alloying levels of elements such as chromium, 
copper, niobium, titanium, vanadium, and molybdenum.

[[Page 70656]]

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 this order, 
regardless of HTSUS definitions, are products in which: (1) Iron 
predominates, by weight, over each of the other contained elements; (2) 
the carbon content is 2 percent or less, by weight; and (3) none of the 
elements listed below 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 0.012 percent of 
boron, 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 
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 and/or 
specifically excluded from the scope of this agreement:
     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, and A506).
     SAE/AISI grades of series 2300 and higher.
     Ball bearing 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 1.50 percent.
     ASTM specifications A710 and A736.
     USS Abrasion-resistant steels (USS AR 400, USS AR 500).
     Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                C                            Mn                     P                      S                      Si                     Cr                    Cu                    Ni
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
0.10-0.14%.......................  0.90% Max              0.025% Max             0.005% Max             0.30-0.50%             0.30-0.50%             0.20-0.40%            0.20% Max
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    Width = 44.80 inches maximum; Thickness = 0.063-0.198 inches; Yield 
Strength = 50,000 ksi minimum; Tensile Strength = 70,000--88,000 psi.
     Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                C                            Mn                     P                      S                      Si                     Cr                    Cu                    Ni
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
0.10-0.16%.......................  0.70-0.90%             0.025% Max             0.006% Max             0.30-0.50%             0.30-0.50%             0.25% Max             0.20% Max
Mo
0.21% Max
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    Width = 44.80 inches maximum; Thickness = 0.350 inches maximum; 
Yield Strength = 80,000 ksi minimum; Tensile Strength = 105,000 psi 
Aim.
     Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                C                            Mn                     P                      S                      Si                     Cr                    Cu                    Ni
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
0.10-0.14%.......................  1.30-1.80%             0.025% Max             0.005% Max             0.30-0.50%             0.50-0.70%             0.20-0.40%            0.20% Max
V(wt.)...........................  Cb
0.10% Max........................  0.08% Max
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    Width = 44.80 inches maximum; Thickness = 0.350 inches maximum; 
Yield Strength = 80,000 ksi minimum; Tensile Strength = 105,000 psi 
Aim.
     Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                C                            Mn                     P                      S                      Si                     Cr                    Cu                    Ni
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
0.15% Max........................  1.40% Max              0.025% Max             0.010% Max             0.50% Max              1.00% Max              0.50% Max             0.20% Max
Nb...............................  Ca                     Al
0.005% Min.......................  Treated                0.01-0.07%
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    Width = 39.37 inches; Thickness = 0.181 inches maximum; Yield 
Strength = 70,000 psi minimum for thicknesses <= 0.148 inches and 
65,000 psi minimum for thicknesses <=0.148 inches; Tensile Strength = 
80,000 psi minimum.
     Hot-rolled dual phase steel, phase-hardened, primarily 
with a ferritic-martensitic microstructure, contains 0.9 percent up to 
and including 1.5 percent silicon by weight, further characterized by 
either (i) tensile strength between 540 N/mm\2\ and 640 N/mm\2\ and an 
elongation percentage >= 26 percent for thicknesses of 2 mm and above, 
or (ii) a tensile strength between 590 N/mm\2\ and 690 N/mm\2\ and an 
elongation percentage >= 25 percent for thicknesses of 2 mm and above.
     Hot-rolled bearing quality steel, SAE grade 1050, in 
coils, with an inclusion rating of 1.0 maximum per ASTM E 45, Method A, 
with excellent surface quality and chemistry restrictions as follows: 
0.012 percent maximum phosphorus, 0.015 percent maximum sulfur, and 
0.20 percent maximum residuals including 0.15 percent maximum chromium.
     Grade ASTM A570-50 hot-rolled steel sheet in coils or cut 
lengths, width of 74 inches (nominal, within ASTM tolerances), 
thickness of 11 gauge (0.119 inch nominal), mill edge and skin passed, 
with a minimum copper content of 0.20%.

[[Page 70657]]

    The merchandise subject to this agreement is classified in the 
Harmonized Tariff Schedule of the United States (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, 
7210.70.30.00, 7210.90.90.00, 7211.14.00.30, 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, 7211.19.75.90, 
7212.40.10.00, 7212.40.50.00, 7212.50.00.00. 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. Although the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the merchandise under this order is dispositive.

Analysis of Comments Received

    All issues raised in this review are addressed in the ``Issues and 
Decision Memorandum'' (``Decision Memorandum'') from Ronald K. 
Lorentzen, Acting Director, Office of Policy, Import Administration, to 
James J. Jochum, Assistant Secretary for Import Administration, dated 
November 29, 2004, which is hereby adopted by this notice. The issues 
discussed in the accompanying Decision Memorandum include the 
likelihood of continuation or recurrence of countervailable subsidies, 
the net subsidy likely to prevail were the order revoked, and the 
nature of the subsidy. 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 the Central Records Unit, 
room B-099, of the main Commerce building. In addition, a complete 
version of the Decision Memorandum can be accessed directly on the Web 
at http://ia.ita.doc.gov/frn, under the heading ``December 2004.'' The 
paper copy and electronic version of the Decision Memorandum are 
identical in content.

Final Results of Review

    We determine that revocation of the CVD order on hot-rolled steel 
from Brazil would be likely to lead to continuation or recurrence of 
countervailable subsidies at the rates listed below:

------------------------------------------------------------------------
                                                   Net countervailable
              Producers/Exporters                   subsidy  (percent)
------------------------------------------------------------------------
Usinas Siderugicas de Minas Gerais and                              9.67
 Companhia Siderugica Paulista (``USIMINAS/
 COSIPA'').....................................
Companhia Siderugica Nacional (``CSN'')........                     6.35
All Others.....................................                     7.81
------------------------------------------------------------------------

    This notice also serves as the only reminder to parties subject to 
administrative protective orders (``APO'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305 of the 
Department's regulations. Timely notification of the return or 
destruction of APO materials or conversion to judicial protective order 
is hereby requested. Failure to comply with the regulations and terms 
of an APO is a violation which is subject to sanction.
    We are issuing and publishing the results and notice in accordance 
with sections 751(c), 752, and 777(i)(1) of the Act.

    Dated: November 29, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. E4-3480 Filed 12-6-04; 8:45 am]
BILLING CODE 3510-DS-P