[Federal Register Volume 75, Number 143 (Tuesday, July 27, 2010)]
[Notices]
[Pages 43931-43933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-18392]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-351-829]


Certain Hot-Rolled Flat-Rolled Carbon-Quality Steel Products from 
Brazil: Preliminary Results of Full Sunset Review

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

SUMMARY: On April 1, 2010, the Department of Commerce (``the 
Department'') initiated a sunset review of the countervailing duty 
(``CVD'') order on certain hot-rolled flat-rolled carbon-quality steel 
products from Brazil, pursuant to section 751(c) of the Tariff Act of 
1930, as amended (``the Act''). On the basis of a notice of intent to 
participate and an adequate substantive response filed on behalf of the 
domestic interested parties and adequate responses from respondents and 
the Government of Brazil (``GOB''), the Department determined to 
conduct a full sunset review of this CVD order pursuant to section 
751(c) of the Act and 19 CFR 351.218(e)(2). As a result of our 
analysis, the Department preliminarily finds that revocation of the CVD 
order would likely lead to continuance or recurrence of a 
countervailable subsidy.

DATES: Effective Date: July 27, 2010.

FOR FURTHER INFORMATION CONTACT: Jacqueline Arrowsmith or Milton Koch, 
AD/CVD Operations, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
5255 or (202) 482-2584, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On April 1, 2010 the Department initiated the second sunset review 
of the countervailing duty order on hot-rolled carbon-quality steel 
flat products from Brazil in accordance with section 751(c) of the Act. 
See Initiation of Five-Year (``Sunset'') Review, 75 FR 16437 (April 1, 
2010).
    Within the deadline specified in 19 CFR 351.218(d)(1)(i), the 
Department received notices of intent to participate on behalf of 
United States Steel Corporation, Nucor Corporation, Gallatin Steel, 
SSAB N.A.D., Steel Dynamics, Inc., ArcelorMittal USA Inc. (collectively 
``domestic interested parties''). The domestic interested parties 
claimed interested-party status as producers of subject merchandise in 
the United States as defined by section 771(9)(C) of the Act. The 
Department received substantive responses from the domestic interested 
parties within the deadline specified in 19 CFR 351.218(d)(3)(i). The 
Department also received substantive responses in a timely manner from 
the following respondent interested parties: the GOB, Usinas 
Siderugicas de Minas Gerais and Companhia Siderugica Paulista 
(``USIMINAS/COSIPA'') and Companhia Siderugica Nacional (``CSN''). On 
May 21, 2010, after analyzing the submissions and rebuttals from 
interested parties and finding the substantive response adequate, the 
Department determined to conduct a full sunset review. See Memorandum 
from Jacqueline Arrowsmith, Trade Compliance Analyst, to Barbara 
Tillman, Office 6 Director re: Adequacy Determination in Countervailing 
Duty Sunset Review Of Hot-Rolled Carbon, Steel Flat Products from 
Brazil--Second

[[Page 43932]]

Countervailing Duty Review (2005 through 2009) (May 21, 2010).

Scope of the Order

    The products covered by the CVD order 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 1,250 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 the order.
    Specifically included in the 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 the order, regardless 
of Harmonized Tariff Schedule of the United States (``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 the order unless otherwise 
excluded. The following products, by way of example, are outside and/or 
specifically excluded from the scope of the 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:

--------------------------------------------------------------------------------------------------------------------------------------------------------
              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%......  0.50-0.70%.....  0.20-0.40%.....  0.20% Max
--------------------------------------------------------------------------------------------------------------------------------------------------------

    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                  Mo
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
0.10-0.16%......................  0.70-0.90%........  0.025% Max........  0.006% Max........  0.30-0.50%........  0.50-0.70%........  0.25% Max.........  0.20% Max.........  0.21% 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              V(wt.)              Cb
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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.......  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                  Nb                  Ca                  Al
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
0.15% Max.......................  1.40% Max.........  0.025% Max........  0.010% Max........  0.50% Max.........  1.00% Max.........  0.50% Max.........  0.20% Max.........  0.005% Min........  Treated...........  0.01-0.07%
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 43933]]

    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/mm2; and 640 N/
mm2 and an elongation percentage >= 26 percent for 
thicknesses of 2 mm and above, or (ii) a tensile strength between 590 
N/mm2 and 690 N/mm2 and an elongation percentage 
>= 25 percent for thicknesses of 2mm 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 the 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, 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 the 
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 covered by the order is dispositive.

Analysis of Comments Received

    All issues raised in this review are addressed in the Issues and 
Decision Memorandum (``Decision Memorandum'') from Edward C. Yang, 
Acting Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations, to Ronald K. Lorentzen, Deputy Assistant Secretary for 
Import Administration, dated concurrently with this notice, which is 
hereby adopted by this notice. Parties can find a complete discussion 
of all issues raised in this review and the corresponding 
recommendation 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. The paper copy and 
electronic version of the Decision Memorandum are identical in content.

Preliminary Results of Review

    The Department preliminarily determines that revocation of the CVD 
order would likely lead to continuation or recurrence of a 
countervailable subsidy. The net countervailable subsidy likely to 
prevail if the order were revoked is zero percent for USIMINAS/COSIPA, 
CSN, and all other companies. Interested parties may submit case briefs 
no later than 50 days after the date of publication of the preliminary 
results of the full sunset review, in accordance with 19 CFR 
351.309(c)(1)(i). Any interested party may request a hearing within 30 
days of publication of this notice in accordance with 19 CFR 
351.310(c). Rebuttal briefs, which must be limited to issues raised in 
the case briefs, may be filed not later than five days after the time 
limit for filing case briefs in accordance with 19 CFR 351.309(d). A 
hearing, if requested, will be held two days after the date the 
rebuttal briefs are due. The Department will issue a notice of final 
results of this sunset review, which will include the results of its 
analysis of issues raised in any such comments, no later than 240 days 
after the date of publication of the notice of initiation (i.e., to 
November 27, 2010 in accordance with 19 CFR 351.218(f)(3)). However, 
November 27, 2010 falls on a Saturday and it is the Department's long-
standing practice to issue a determination the next business day when 
the statutory deadline falls on a weekend, Federal holiday, or any 
other day when the Department is closed. See Notice of Clarification: 
Application of ``Next Business Day'' Rule for Administrative 
Determination Deadlines Pursuant to the Tariff Act of 1930, As Amended, 
70 FR 24533 (May 10, 2005). Accordingly, the deadline for the 
completion of the final results is now November 29, 2010, the first 
business day after the 240th day from initiation.
    We are issuing and publishing the results and notice in accordance 
with sections 751(c), 752, and 777(i)(1) of the Act.

    Dated: July 20, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-18392 Filed 7-26-10; 8:45 am]
BILLING CODE 3510-DS-P