65 FR 18065, April 6, 2000 

[C-351-818]

 
Certain Cut-to-Length Carbon Steel Plate From Brazil; Final 
Results of Countervailing Duty Expedited Sunset Review

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

ACTION: Notice of final results of countervailing duty expedited sunset 
review: Certain cut-to-length carbon steel plate from Brazil.

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SUMMARY: On September 1, 1999, the Department of Commerce (``the 
Department'') published the notice of initiation of the sunset review 
of the countervailing duty order on certain cut-to-length carbon steel 
plate (``cut-to-length plate'') from Brazil. On the basis of a notice 
of intent to participate and adequate substantive comments filed on 
behalf of domestic interested parties and inadequate response (in this 
case, no response) from respondent interested parties, we determined to 
conduct an expedited review. As a result of this review, the Department 
finds that revocation of the countervailing duty order would be likely 
to lead to continuation or recurrence of a countervailable subsidy. The 
net countervailable subsidy is identified in the Final Results of 
Review section of this notice.

EFFECTIVE DATE: April 6, 2000.

FOR FURTHER INFORMATION CONTACT: Mark D. Young, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 
Washington, DC 20230; telephone: (202) 482-6397.

SUPPLEMENTARY INFORMATION:

Statute and Regulations

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as amended (``the Act''), are references to the provisions 
effective January 1, 1995, the effective date of the amendments made to 
the Act by Uruguay Round Agreements Act (``URAA''). In addition, unless 
otherwise indicated, all citations to the Department of Commerce's 
(``the Department's'') regulations are to 19 CFR part 351 (1999). 
Guidance on methodological or analytical issues relevant to the 
Department's conduct of sunset reviews is set forth in the Department's 
Policy Bulletin 98:3--Policies Regarding the Conduct of Five-year 
(``Sunset'') Reviews of Antidumping and Countervailing Duty Orders; 
Policy Bulletin, 63 FR 18871 (April 16, 1998) (``Sunset Policy 
Bulletin'').

Background

    On September 1, 1999, the Department published the notice of 
initiation of the sunset review of the countervailing duty order on 
cut-to-length plate from Brazil (64 FR 47767). The Department received 
a Notice of Intent to Participate on behalf of Bethlehem Steel 
Corporation and U.S. Steel Group, a unit of USX Corporation (``the 
domestic interested parties''), within the deadline specified in 
section 351.218(d)(1)(i) of the Sunset Regulations. The domestic 
interested parties claimed interested party status under section 
771(9)(C) of the Act, as U.S. manufacturers of cut-to-length plate. We 
received a complete substantive response from the domestic interested 
parties on October 1, 1999, within the 30-day deadline specified in the 
Sunset Regulations under section 351.218(d)(3)(i). In their substantive 
response, the domestic interested parties stated that they were the 
petitioner in the original investigation of cut-to-length plate from 
Brazil. We did not receive a substantive response from any respondent 
interested party to these proceedings. As a result, pursuant to 
751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(C) of the 
Department's regulations, the Department determined to conduct an 
expedited, 120-day, review of this order.
    In accordance with section 751(c)(5)(C)(v) of the Act, the 
Department may treat a review as extraordinarily complicated if it is a 
review of a transition order (i.e., an order in effect on January 1, 
1995). The review at issue concern a transition order within the 
meaning of section 751(c)(6)(C)(i) of the Act. Therefore, the 
Department determined that the sunset review of the countervailing duty 
order on cut-to-length plate from Brazil is extraordinarily complicated 
and extended the time limit for completion of the final results of this 
review until not later than March 29, 2000, in accordance with section 
751(c)(5)(B) of the Act.\1\
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    \1\ See Extension of Time Limit for Final Results of Five-Year 
Reviews, 64 FR 71726 (December 22, 1999).
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Scope of Reviews

    The products covered by this countervailing duty order constitute 
one ``class or kind'' of merchandise: certain cut-to-length plate. 
These products include hot-rolled carbon steel universal mill plates 
(i.e., flat-rolled products rolled on four faces or in a closed box 
pass, of a width exceeding 150 millimeters but not exceeding 1,250 
millimeters and of a thickness of not less than 4 millimeters, not in 
coils and without patterns in relief), of rectangular shape, neither 
clad, plated, nor coated with metal, whether or not painted, varnished, 
or coated with plastics or other nonmetallic substances; and certain 
hot-rolled carbon steel flat-rolled products in straight lengths, of 
rectangular shape, hot rolled, neither clad, plated, nor coated with 
metal, whether or not painted, varnished, or coated with plastics or 
other nonmetallic substances, 4.75 millimeters or more in thickness and 
of a width which exceeds 150 millimeters and measures at least twice 
the thickness, as currently classifiable in the Harmonized Tariff 
Schedule of the United States (``HTSUS'') under item numbers 
7208.31.0000, 7208.32.0000, 7208.33.1000, 7208.33.5000, 7208.41.0000, 
7208.42.0000, 7208.43.0000, 7208.90.0000, 7210.70.3000, 7210.90.9000, 
7211.11.0000, 7211.12.0000, 7211.21.0000, 7211.22.0045, 7211.90.0000, 
7212.40.1000, 7212.40.5000, and 7212.50.0000. Included within the scope 
are flat-rolled products of non-rectangular cross-section where such 
cross-section is achieved subsequent to the rolling process (i.e., 
products which have been ``worked after rolling''); for example, 
products which have been beveled or rounded at the edges. Excluded is 
grade X-70 plate. These HTSUS item numbers are provided for convenience 
and customs purposes. The Department's written description remains 
dispositive.
    The Department has made one scope ruling on the subject merchandise 
from Brazil. The following product was determined to be within the 
scope of the order:

[[Page 18066]]



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    Product within scope          Manufacturer            Citation
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Profile Slabs...............  Companhia             62 FR 30569, June 4,
                               Siderurgica Tubarao.  1997.
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    This review covers all imports from all manufacturers and exporters 
of cut-to-length plate from Brazil.

Analysis of Comments Received

    All issues raised in this case by parties to this sunset review are 
addressed in the ``Issues and Decision Memorandum'' (``Decision Memo'') 
from Jeffrey A. May, Director, Office of Policy, Import Administration, 
to Robert S. LaRussa, Assistant Secretary for Import Administration, 
dated March 29, 2000, 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, 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 room B-099 of the main Commerce Building.
    In addition, a complete version of the Decision Memo can be 
accessed directly on the Web at www.ita.doc.gov/import__admin/records/
frn/. The paper copy and electronic version of the Decision Memo are 
identical in content.

Final Results of Reviews

    We determine that revocation of the countervailing duty order on 
cut-to-length plate from Brazil would be likely to lead to continuation 
or recurrence of a countervailable subsidy at the rates listed below:

------------------------------------------------------------------------
                                                                  Cash
                                                                deposit
              Brazilian manufacturers/exporters                   rate
                                                               (percent)
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Usinas Siderurgicas de Minas Gerais S.A. (``USIMINAS'')......       5.44
Companhia Siderurgica Paulista (``COSIPA'')..................      48.64
All others...................................................      23.10
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    Because receipt of benefits provided by the Government of Brazil's 
(``GOB's'') countervailable program Exemption of IPI and Duties on 
Imports under Decree-Law 2324 is contingent upon exports, this program 
fall within the definition of an export subsidy under Article 3.1(a) of 
the Subsides Agreement.
    All of the other programs provided by the GOB are, however, 
programs that could be found inconsistent with Article 6.1 of the 
Subsidies Agreement \2\ if the net subsidy exceeds 5 percent ad valorem 
as measured in accordance with Annex IV of the Subsidies Agreement. 
However, the Department does not have enough information to calculate 
or determine whether the total ad valorem subsidization of the subject 
merchandise from these programs exceeds five-percent or whether they 
were meant to cover operating losses or to be used as direct 
forgiveness of debt. Nor does the Department believe such calculation 
or determination would be appropriate in the course of a sunset review. 
Instead, we are providing the Commission with the program descriptions 
listed below.
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    \2\ We note that as of January 1, 2000, Article 6.1 has ceased 
to apply (see Article 31 of the Subsidies Agreement).
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Equity Infusions

    This program enabled USIMINAS and COSIPA to receive equity 
infusions from the GOB in the following years: USIMINAS, 1980 to 1988; 
and COSIPA, 1977 through 1991. We determined that equity infusions by 
the GOB into USIMINAS, in these years, and COSIPA in years 1997 through 
1989 and 1991 were made on terms inconsistent with commercial 
considerations.

Fiscal Benefits by Virtue of the CDI

    The CDI provides for the reduction of up to 100 percent of the 
import duties and up to 10 percent of the IPI tax (value-added tax) on 
certain imported machinery for specific projects.


IPI Rebate Program Under Law 7554/86

    This Program consists of a rebate of 95 percent of the IPI tax paid 
on domestic sales of industrial products.

BNDES Financing

    In this program, loans were provided on terms inconsistent with 
commercial considerations because the companies that received the loans 
were uncreditworthy.

Provision of Infrastructure

    This program provides preferential interest on purchasing 
agreements with a government-owned steel holding company.
    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 these results and notice in 
accordance with sections section 751(c), 752, and 777(i)(1) of the Act.

    Dated: March 29, 2000.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 00-8544 Filed 4-5-00; 8:45 am]
BILLING CODE 3510-DS-P