[Federal Register Volume 69, Number 249 (Wednesday, December 29, 2004)]
[Notices]
[Pages 77996-77997]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3872]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-549-818]


Certain Hot-Rolled Carbon Steel Flat Products From Thailand: 
Notice of Court Decision and Suspension of Liquidation

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On October 1, 2004, the United States Court of International 
Trade (CIT) issued an order sustaining the Department of Commerce's 
(the Department's) Final Results of Redetermination on Remand 
(September 15, 2004) (``Redetermination Results''). Royal Thai 
Government, et. al., v. United States, Consol. Court No. 02-00026, 
Slip. Op. 04-124 (CIT 2004) (``Royal Thai''). In the Redetermination 
Results, the Department found as ordered by the CIT, that the 
challenged duty drawback program is not countervailable. The effect of 
this finding is the reduction of the overall countervailable subsidy 
rate to a de minimis level.
    Consistent with the decision of the United States Court of Appeals 
for the Federal Circuit (Federal Circuit) in Timken Co. v. United 
States, 893 F.2nd 337 (Fed. Cir. 1990) (``Timken''), the Department is 
notifying the public that the Royal Thai decision was ``not in 
harmony'' with the Department's final determination.

EFFECTIVE DATE: October 1, 2004.

FOR FURTHER INFORMATION CONTACT: Sean Carey or Dana Mermelstein, AD/CVD 
Operations, Office 6, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
3964 or (202) 482-1391, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On October 3, 2001, the Department issued a countervailing duty 
determination covering hot-rolled steel from Thailand. Final 
Affirmative Countervailing Duty Determination: Certain Hot-Rolled 
Carbon Steel Flat Products From Thailand, 66 FR 50410 (October 3, 
2001). On December 3, 2001, the countervailing duty order was 
published. Notice of Countervailing Duty Order: Certain Hot-Rolled 
Carbon Steel Flat Products From Thailand 66 FR 60197 (December 3, 
2001).
    On February 1, 2002, respondents, the Royal Thai Government (RTG) 
and Sahaviriya Steel Industries (SSI), filed their complaint, appealing 
the final determination and countervailing duty order. Royal Thai 
Government, et. al., v. United States, Court. No. 02-00027. 
Petitioners, National Steel Corporation, Bethlehem Steel Corporation, 
and United States Steel Corporation, also appealed the final 
determination. National Steel Corp, et. al., v. United States, Court 
No. 02-00026, consolidated into Royal Thai Government, et. al., v. 
United States, Consol. No. 02-00026.
    On May 19, 2004, the RTG and SSI obtained an injunction, applicable 
during the pendency of this litigation in the CIT, enjoining the United 
States from liquidating or causing or permitting liquidation of any 
entries of certain hot-rolled carbon steel flat products from Thailand 
that: (1) Were affected by the Department's investigative proceeding; 
(2) were produced and exported by SSI; (3) were entered or withdrawn 
from warehouse, for consumption, from January 1, 2002, through December 
31, 2002; and, (4) remain unliquidated as of 5 p.m. on May 20, 2004.
    On July 27, 2004, the CIT found that the Department's determination 
to countervail the challenged duty drawback program in its entirety was 
not supported by substantial evidence and is not in accordance with 
law. Because the CIT found that the drawback program is not 
countervailable, and the revised subsidy rate is de minimis (1.80 
percent ad valorem), it ordered the Department to find that no 
countervailable subsidies are being provided to the production or 
exportation of certain hot-rolled carbon steel flat products from 
Thailand. See Royal Thai Government, et. al., v. United States, Consol. 
Court No. 02-00026, Slip. Op. 04-91 (CIT 2004).
    On October 1, 2004, the CIT affirmed the Redetermination Results 
pursuant to its decision in Royal Thai. The CIT thus sustained the 
Redetermination Results in which the Department found that no 
countervailable subsidies are being provided to the production or 
exportation of certain hot-rolled carbon steel flat products from 
Thailand.

Timken Notice

    In its decision in Timken, the Federal Circuit held that, pursuant 
to section 516(a)(c)(1) and (e) of the Tariff Act of 1930, as amended, 
the Department must publish notice of a decision of the CIT which is 
not in harmony with the Department's determination. The CIT's decision 
in Royal Thai was not in harmony with the Department's Final 
Determination. Therefore, publication of this notice fulfills the 
statutory obligation.

Suspension of Liquidation

    This notice will serve to continue the suspension of liquidation 
pending the expiration of the period to appeal the CIT's October 1, 
2004, decision, or, if that decision is appealed, pending a final 
decision by the Federal Circuit. Because the CIT issued an injunction 
on May 19, 2004, the Department will continue to suspend entries of 
hot-rolled steel from Thailand as specified in the injunction. The 
Department will revoke the Order and issue instructions covering these 
entries if the CIT's decision is not appealed, or if it is affirmed on 
appeal.


[[Page 77997]]


    Dated: December 20, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. E4-3872 Filed 12-28-04; 8:45 am]
BILLING CODE 3510-DS-S