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.
-----------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\1\ See Extension of Time Limit for Final Results of Five-Year
Reviews, 64 FR 71726 (December 22, 1999).
---------------------------------------------------------------------------
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]]
------------------------------------------------------------------------
Product within scope Manufacturer Citation
------------------------------------------------------------------------
Profile Slabs............... Companhia 62 FR 30569, June 4,
Siderurgica Tubarao. 1997.
------------------------------------------------------------------------
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)
------------------------------------------------------------------------
Usinas Siderurgicas de Minas Gerais S.A. (``USIMINAS'')...... 5.44
Companhia Siderurgica Paulista (``COSIPA'').................. 48.64
All others................................................... 23.10
------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\2\ We note that as of January 1, 2000, Article 6.1 has ceased
to apply (see Article 31 of the Subsidies Agreement).
---------------------------------------------------------------------------
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