[Federal Register Volume 71, Number 235 (Thursday, December 7, 2006)]
[Notices]
[Pages 70960-70962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-20699]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-357-815, C-533-821, C-560-813, C-791-810, C-549-818]


Hot-Rolled Carbon Steel Flat Products from Argentina, India, 
Indonesia, South Africa, and Thailand: Final Results of Expedited Five-
Year (Sunset) Reviews of the Countervailing Duty Orders

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On August 1, 2006, the Department of Commerce (the Department) 
published in the Federal Register the notice of initiation of the first 
five-year sunset reviews of the countervailing duty orders on certain 
hot-rolled carbon steel flat products (hot-rolled steel) from 
Argentina, India, Indonesia, South Africa, and Thailand, pursuant to 
section 751(c) of the Tariff Act of 1930, as amended (the Act). See 
Initiation of Five-Year (Sunset) Reviews, 71 FR 43443 (August 1, 2006) 
(Initiation of First Sunset Reviews). On the basis of notices of intent 
to participate and adequate substantive responses filed on behalf of 
domestic interested parties, and inadequate responses from respondent 
interested parties (in these cases, no responses from the governments 
of Argentina, India, Indonesia, South Africa, and Thailand, or any of 
the respondent companies covered by the orders), the Department has 
conducted expedited sunset reviews of these orders pursuant to section 
751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(B). As a result of 
these sunset reviews, the Department finds that revocation of the 
countervailing duty orders is likely to lead to continuation or 
recurrence of countervailable subsidies at the levels indicated in the 
``Final Results of Review'' section of this notice.

EFFECTIVE DATE: December 7, 2006.

FOR FURTHER INFORMATION CONTACT: Darla Brown at (202) 482-2849 
(Argentina, Indonesia), Preeti Tolani at (202) 482-0395 (India), Elfi 
Blum at (202) 482-0197 (South Africa), Myrna Lobo at (202)482-2371 
(Thailand), or Dana Mermelstein at (202) 482-1391, AD/CVD Operations, 
Office 6, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Ave., NW., 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On August 1, 2006, the Department initiated the first sunset 
reviews of the countervailing duty orders on hot-rolled steel from 
Argentina, India, Indonesia, South Africa, and Thailand, pursuant to 
section 751(c) of the Act. See First Sunset Reviews. The Department 
received notices of intent to participate from United States Steel 
Corporation (U.S. Steel), Mittal Steel USA Inc. (Mittal USA), Nucor 
Corporation (Nucor), Gallatin Steel Co., IPSCO Steel Inc. (IPSCO), 
Steel Dynamics, Inc. (collectively, domestic interested parties), and 
the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, 
Allied Industrial and Service Workers International Union, AFL-CIO-CLC 
(USW), within the deadline specified in 19 CFR 351.218(d)(1)(i). 
Domestic interested parties and USW claimed interested party status 
under sections 771(9)(C) and (D) of the Act, as U.S. producers and a 
certified union engaged in the manufacture, production, or wholesale of 
hot-rolled steel in the United States.
    On August 31, 2006, the Department received a substantive response 
for each order from domestic interested parties within the deadline 
specified in 19 CFR 351.218(d)(3)(i). The Department did not receive 
any responses from any respondent interested party to this proceeding. 
In accordance with 19 CFR 351.218(e)(1)(ii)(C)(1), the Department 
notified the International Trade Commission (ITC) that respondent 
interested parties to the CVD orders on hot-rolled steel from 
Argentina, India, Indonesia, South Africa, and Thailand, provided 
inadequate responses to the Initiation of First Sunset Reviews. The 
Department, therefore, has conducted expedited sunset reviews of the 
countervailing duty orders, pursuant to

[[Page 70961]]

19 CFR 351.218(e)(1)(ii)(B) and 351.218(e)(1)(ii)(C)(2).
    Since the publication of the countervailing duty orders (see Notice 
of Countervailing Duty Order: Certain Hot-Rolled Carbon Steel Flat 
Products from Argentina, 66 FR 47173 (September 11, 2001), 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), Notice of Countervailing Duty Order: 
Certain Hot-Rolled Carbon Steel Flat Products from South Africa, 66 FR 
60201 (December 3, 2001), and Notice of Countervailing Duty Order: 
Certain Hot-Rolled Carbon Steel Flat Products from Thailand, 66 FR 
60197 (December 3, 2001), with the exception of the countervailing duty 
order on hot-rolled steel from India, there have been no administrative 
reviews of these orders.

Scope of the Orders

ARGENTINA, INDIA, INDONESIA, SOUTH AFRICA, THAILAND
    The merchandise subject to these countervailing duty orders is 
certain hot-rolled carbon steel flat 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 investigation.
    Specifically included within the scope of these orders 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 these orders, 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 descriptions 
provided above are within the scope of these orders unless otherwise 
excluded. The following products, by way of example, are outside or 
specifically excluded from the scope of these orders:
- Alloy hot-rolled steel products in which at least one of the chemical 
elements exceeds those listed above (including, e.g., American Society 
for Testing and Materials (ASTM) specifications A543, A387, A514, A517, 
A506).
- Society of Automotive Engineers (SAE)/American Iron & Steel Institute 
(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 
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 these orders 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 carbon steel flat 
products covered by these orders, 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 
Department's written description of the merchandise subject to these 
countervailing duty orders is dispositive.

Analysis of Comments Received

    All issues raised in the substantive responses by parties to these 
sunset reviews are addressed in the Issues and Decision Memorandum for 
Final Results of Expedited Five-Year (Sunset) Reviews of the 
Countervailing Duty Orders on Certain Hot-Rolled Carbon Steel Flat 
Products from Argentina, India, Indonesia, South Africa, and Thailand, 
from Stephen J. Claeys, Deputy Assistant Secretary for Import 
Administration, to David M. Spooner, Assistant Secretary for Import 
Administration, dated November 29, 2006 (Decision Memo), which is 
hereby adopted by this notice. The issues discussed in the Decision 
Memo include the likelihood of continuation or recurrence of a 
countervailable subsidy, the net countervailable subsidy rate likely to 
prevail if the orders were revoked and the nature of the subsidy. 
Parties can find a complete discussion of all issues raised in these 
sunset reviews and the corresponding recommendation in this public 
memorandum which is on file in B-099, the Central Records Unit, of the 
main Commerce building. In addition, a complete version of the Decision 
Memo

[[Page 70962]]

can be accessed directly on the Department's Web page at http://ia.ita.doc.gov/frn. The paper copy and electronic version of the 
Decision Memo are identical in content.

Final Results of Review

    The Department determines that revocation of the countervailing 
duty orders on hot-rolled steel from Argentina, India, Indonesia, South 
Africa, and Thailand would be likely to lead to continuation or 
recurrence of countervailable subsidies at the following subsidy rates:

                                ARGENTINA
------------------------------------------------------------------------
                Manufacturer/Exporter                    Subsidy Rate
------------------------------------------------------------------------
Siderar Sociedad Anomina............................
        Industrial & Commercial (Siderar)...........  41.69 % ad valorem
All others..........................................  41.69 % ad valorem
------------------------------------------------------------------------


                                  INDIA
------------------------------------------------------------------------
                Manufacturer/Exporter                    Subsidy Rate
------------------------------------------------------------------------
Essar Steel Limited (Essar).........................  12.90 % ad valorem
Ispat Industries Limited (Ispat)....................  36.51 % ad valorem
Steel Authority of India Limited (SAIL).............  22.89 % ad valorem
Tata Iron and Steel Company Limited (TISCO).........  13.79 % ad valorem
All Others..........................................  20.72 % ad valorem
------------------------------------------------------------------------


                                INDONESIA
------------------------------------------------------------------------
                Manufacturer/Exporter                    Subsidy Rate
------------------------------------------------------------------------
P.T. Krakatau Steel.................................  10.21 % ad valorem
All others..........................................  10.21 % ad valorem
------------------------------------------------------------------------


                              SOUTH AFRICA
------------------------------------------------------------------------
                Manufacturer/Exporter                    Subsidy Rate
------------------------------------------------------------------------
Saldanha Steel (Pty.) Ltd. (Saldanha)/..............
        Iscor Ltd. (Iscor)..........................   5.76 % ad valorem
All others..........................................   5.76 % ad valorem
------------------------------------------------------------------------


                                THAILAND
------------------------------------------------------------------------
                Manufacturer/Exporter                    Subsidy Rate
------------------------------------------------------------------------
Sahaviriya Steel Industries Public..................
        Company Limited (SSI).......................   2.38 % ad valorem
All others..........................................   2.38 % ad valorem
------------------------------------------------------------------------

International Trade Commission (ITC) Notification

    In accordance with section 752(b)(3) of the Act, we will notify the 
ITC of the final results of these full sunset reviews.

Administrative Protective Orders

    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. 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 these determinations and notice in 
accordance with sections 751(c), 752, and 777(i) of the Act.

    Dated: November 29, 2006.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. E6-20699 Filed 12-6-06; 8:45 am]
BILLING CODE 3510-DS-S