[Federal Register Volume 70, Number 194 (Friday, October 7, 2005)]
[Notices]
[Pages 58680-58683]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-5539]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-351-828]


Certain Hot-Rolled Carbon Steel Flat Products From Brazil: Notice 
of Intent To Rescind Administrative Review

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

SUMMARY: On April 22, 2005, the Department of Commerce published a 
notice of initiation of an administrative review of the antidumping 
duty order on certain hot-rolled carbon steel flat products from Brazil 
for the period March 1, 2004, through February 28, 2005. The Department 
intends to rescind this review after determining that one of the 
parties subject to this review did not have entries during the period 
of review (POR) upon which to assess antidumping duties, and that the 
other party had no entries in addition to those that are already being 
examined in an ongoing new shipper review.

Effective Date: October 7, 2005.

FOR FURTHER INFORMATION CONTACT: Helen Kramer or Kristin Najdi at (202) 
482-0405 or (202) 482-8221, respectively; AD/CVD Operations, Office 7, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION: On March 1, 2005, the Department published a 
notice of opportunity to request an administrative review of the 
antidumping duty order on certain hot-rolled carbon steel flat products 
from Brazil for the period March 1, 2004, through February 28, 2005. 
See Notice of Opportunity to Request Administrative Review of 
Antidumping Duty Order, Finding or Suspended Investigation, 70 FR 9918 
(March 1, 2005). On March 31, 2005, United States Steel Corporation 
(USSC) and Nucor Corporation (Nucor), domestic producers of the subject 
merchandise, made timely requests that the Department conduct an 
administrative review of Companhia Siderurgica Nacional (CSN) and 
Companhia Siderurgica de Tubarao (CST). On April 22, 2005, in 
accordance with section 751(a) of the Tariff Act of 1930 as amended 
(the Act), the Department published in the Federal Register a notice of 
initiation of this antidumping duty administrative review. See Notice 
of Initiation of Antidumping Duty and Countervailing Duty 
Administrative Reviews, 70 FR 20862 (April 22, 2005).

[[Page 58681]]

On April 28, 2005, the Department issued its antidumping duty 
questionnaire to CSN and CST. Both CSN and CST requested rescission of 
this administrative review.

Scope of the Order

    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 this 
order.
    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. 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 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, 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:

                                                  [In percent]
----------------------------------------------------------------------------------------------------------------
      C           Mn (max)       P (max)       S (max)         Si            Cr            Cu         Ni (max)
----------------------------------------------------------------------------------------------------------------
  0.10-0.14           0.90          0.025         0.005     0.30-0.50     0.30-0.50     0.20-0.40         0.20
----------------------------------------------------------------------------------------------------------------
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:

                                                                      [In percent]
--------------------------------------------------------------------------------------------------------------------------------------------------------
        C                Mn            P (max)          S (max)             Si               Cr            Cu (max)         Ni (max)         Mo (max)
--------------------------------------------------------------------------------------------------------------------------------------------------------
    0.10-0.16        0.70-0.90            0.025            0.006        0.30-0.50        0.30-0.50             0.25             0.20             0.21
--------------------------------------------------------------------------------------------------------------------------------------------------------
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:

                                                                      [In percent]
--------------------------------------------------------------------------------------------------------------------------------------------------------
       C              Mn               P               S              Si             Cr             Cu             Ni        V (wt) (max)     Cb (max)
--------------------------------------------------------------------------------------------------------------------------------------------------------
   0.10-0.14       1.30-1.80           0.025           0.005      0.30-0.50      0.50-0.70      0.20-0.40           0.20           0.10          0.08
--------------------------------------------------------------------------------------------------------------------------------------------------------
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.

[[Page 58682]]



                                                                      [In percent]
--------------------------------------------------------------------------------------------------------------------------------------------------------
   C (max)      Mn (max)       P (max)       S (max)      Si (max)      Cr (max)      Cu (max)      Ni (max)      Nb (min)         Ca            A1
--------------------------------------------------------------------------------------------------------------------------------------------------------
      0.15          1.40         0.025         0.010          0.50          1.00          0.50          0.20         0.005       Treated    0.01-0.70
--------------------------------------------------------------------------------------------------------------------------------------------------------
Width = 39.37 inches; Thickness = 0.181 inches maximum; Yield Strength = 70,000 psi minimum for thickness <= 0.148 inches and 65,000 psi minimum for
  ``thicknesses'' > 0.148 inches; account for 64 FR 38650; 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%.
    The merchandise subject to this order 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.

Intent To Rescind Administrative Review

    On May 3, 2005, CSN submitted a letter to the Department indicating 
that it did not have any shipments or entries of subject merchandise 
during the POR. On May 10, 2005, CST submitted a letter to the 
Department certifying that the only shipments or entries of subject 
merchandise it had during the POR are currently being reviewed by the 
Department as part of a new shipper review of CST for the period March 
1, 2004, through August 31, 2004. The Department conducted an internal 
customs data query to confirm that CSN had no entries of subject 
merchandise into the United States during the POR, and that CST had no 
entries of subject merchandise other than those already being reviewed 
as part of the current new shipper review. The customs data showed no 
entries of subject merchandise by CSN during the POR, and no additional 
entries by CST that should be reviewed.
    On May 12, 2005, the Department asked the interested domestic 
parties to submit comments by May 19, 2005, on the requests for 
rescission. On May 19, 2005, Nucor filed comments objecting to the 
rescission of the administrative review for CSN, arguing that CSN had 
sales during this POR that are currently being examined as part of the 
first administrative review period. Nucor argued that those sales 
should be reviewed in the current period and that the Department should 
not limit its decision-making authority by rescinding the current 
review. Nucor also argued that CST did not certify that it had no sales 
during the current POR, and that although CST's sales are being 
reviewed under another proceeding, since CST was the only party that 
requested that review, it could withdraw its new shipper request 
subsequent to a rescission of the 2004-2005 proceeding. Should this 
occur, Nucor claimed it would be prejudiced by a lack of review of 
sales in either proceeding. Nucor also stated that it is developing 
evidence that CST was affiliated with other producers by ownership and 
control mechanisms through Companhia Vale do Rio Doce (``CVRD'') at the 
time of the investigation, and that Nucor will seek to have the new 
shipper review rescinded on this basis. Nucor concluded that it would 
be inappropriate and premature to rescind the 2004-2005 review. Nucor 
has not thus far submitted any evidence of this affiliation claim to 
the Department.
    On May 26, 2005, Nucor filed additional comments arguing that the 
Department should rescind the 2003-2004 review of CSN's sales and 
instead review them under the 2004-2005 proceeding. On June 3, 2005, 
CSN responded to Nucor's letter, noting that Nucor incorrectly 
identified the issue as to which review period the Department should 
assign CSN's U.S. sale, and pointing out that the purpose of 
administrative reviews is to determine the dumping duties to be 
assessed on entries of subject merchandise made during the POR, citing 
section 751(a)(2)(C) and the Department's consistent practice of 
rescinding all administrative reviews where no entries were made during 
the review period. CSN cited Stainless Steel Sheet and Strip in Coils 
from Taiwan: Notice of Final Results of Administrative Review, 67 FR 
6682 (Feb. 13, 2002), and accompanying Issues and Decision Memorandum 
at Comment 30, in which the Department stated that its interpretation 
of the statute and regulations, as affirmed by the Court of Appeals for 
the Federal Circuit, does not support conducting an administrative 
review when the evidence on the record indicates that respondents had 
no entries of subject merchandise during the POR. CSN also cited 
Stainless Steel Bar from Italy: Preliminary Results and Partial 
Rescission of Administrative Review, 70 FR 17656 (April 7, 2005) 
(``Stainless Steel Bar from Italy: Preliminary Results''); Cut-to-
Length Carbon Steel Plate from Romania: Final Results and Partial 
Rescission of Administrative Review, 70 FR 12651 (March 15, 2005); 
Petroleum Wax

[[Page 58683]]

Candles from the People's Republic of China: Rescission of 
Administrative Review, 69 FR 46510 (August 3, 2004); Hot-Rolled Carbon 
Steel Flat Products from India: Rescission of Administrative Review, 69 
FR 42967 (July 19, 2004); Certain Stainless Steel Butt-Weld Pipe 
Fittings from Taiwan: Preliminary Results of Antidumping Duty 
Administrative Review and Notice of Intent to Rescind in Part, 69 FR 
40859 (July 7, 2004); Corrosion-Resistant Carbon Steel Flat Products 
from Korea: Partial Rescission of Antidumping Duty Administrative 
Review, 69 FR 34646 (June 22, 2004); and Allegheny Ludlum Corp. v. 
United States, 346 F.3d 1368, 1374 (CIT 2003), in which the court 
upheld the Department's policy of rescinding administrative reviews 
where there are no entries during the POR. CSN pointed out that Nucor 
failed to identify even one case in which the Department conducted an 
administrative review in the absence of any POR entries.
    Pursuant to 19 CFR 351.213(d)(3), the Department will rescind an 
administrative review if we conclude that during the POR there were no 
entries, exports, or sales of the subject merchandise. The Department's 
practice, supported by substantial precedent, requires that there be 
entries during the POR upon which to assess antidumping duties. See, 
e.g. Stainless Steel Bar from Italy: Preliminary Results. CSN certified 
that it had no entries of subject merchandise during the 2004-2005 POR, 
which the Department corroborated on the basis of official data from 
the U.S. Bureau of Customs and Border Protection. Further, the 
Department made a preliminary determination in the 2003-2004 
administrative review to review CSN's U.S. sale of further manufactured 
merchandise made after the POR that is linked to an entry during that 
POR. See Certain Hot-Rolled Carbon Steel Flat Products from Brazil; 
Preliminary Results of Antidumping Administrative Review, 70 FR 17406 
(April 6, 2005). The final results of that review are now being 
published with a signature date of October 3, 2005. CSN had no 
additional entries to review in the current POR. Finally, as CST had no 
entries in addition to those already being reviewed as part of a new 
shipper review, we have preliminarily determined to rescind the 2004-
2005 administrative review.

Public Comment

    An interested party may request a hearing within 20 days of 
publication of this notice. Any hearing, if requested, will be held 34 
days after the date of publication of this notice, or the first working 
day thereafter. Interested parties may submit case briefs not later 
than 20 days after the date of publication of this notice. Rebuttal 
briefs, which must be limited to issues raised in such briefs, must be 
filed not later than 7 days from the case brief after the date of 
publication of this notice. 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. Further, 
parties submitting written comments should provide the Department with 
an additional copy of the public version of any such comments on 
diskette. We will issue our final decision concerning the conduct of 
the review no later than 120 days from the date of publication of this 
notice.
    This notice is published in accordance with 19 CFR 351.213(d)(4).

    Dated: October 3, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
 [FR Doc. E5-5539 Filed 10-6-05; 8:45 am]
BILLING CODE 3510-DS-P