69 FR 70655, December 7, 2004
DEPARTMENT OF COMMERCE
International Trade Administration
[C-351-829]
Hot-Rolled Flat-Rolled Carbon-Quality Steel From Brazil; Final Results
of the Expedited Sunset Review of the Countervailing Duty Order
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On May 3, 2004, the Department of Commerce ("the
Department") initiated a sunset review of the countervailing duty
("CVD") order on hot-rolled flat-rolled carbon-quality steel ("hot-
rolled steel") from Brazil pursuant to section 751(c) of the Tariff
Act of 1930, as amended ("the Act"). See Initiation of Five-Year
(Sunset) Reviews, 69 FR 24118 (May 3, 2004). On the basis of a notice
of intent to participate and adequate substantive responses filed on
behalf of domestic interested parties and inadequate response from
respondent interested parties (in this case, no response), the
Department conducted an expedited (120-day) sunset review. As a result
of this review, the Department finds that revocation of the CVD order
would likely lead to continuation or recurrence of subsidies at the
levels indicated in the "Final Results of Review" section of this
notice.
EFFECTIVE DATES: December 7, 2004.
FOR FURTHER INFORMATION CONTACT: Hilary Sadler, Esq., Office of Policy
for Import Administration, International Trade Administration, U.S.
Department of Commerce, 14th Street and Constitution Avenue, NW.,
Washington, DC 20230; telephone: (202) 482-4340.
SUPPLEMENTARY INFORMATION:
Background
On May 3, 2004, the Department initiated a sunset review of the CVD
order on hot-rolled steel from Brazil pursuant to section 751(c) of the
Act. See Initiation of Five-Year (Sunset) Reviews, 69 FR 24118 (May 3,
2004). The Department received notices of intent to participate and
substantive responses from Nucor Corp. ("Nucor"); Ispat Inland, Inc.,
and its division Ispat Inland Flat Products ("Ispat Inland");
International Steel Group, Inc. ("International Steel Group");
Gallatin Steel Co. ("Gallatin Steel"); IPSCO Steel Inc. ("IPSCO");
Steel Dynamics, Inc. ("Steel Dynamics"); and United States Steel
Corp. ("United States Steel") (collectively, "domestic interested
parties") within the applicable deadline specified in section
351.218(d)(1)(i) of the Sunset Regulations. See Notice of Gallatin
Steel, IPSCO and Steel Dynamics, May 13, 2004; Notice of Nucor, May 6,
2004; Notice of United States Steel, May 18, 2004; Notice of
International Steel Group, May 18, 2004; Notice of Ispat Inland, May
14, 2004. All domestic interested parties claimed interested-party
status, under section 771(9)(C) of the Act, as U.S. producers of the
domestic like product. See Domestic Response of the Domestic Interested
Parties (June 2, 2004). Ispat Inland, Gallatin Steel, IPSCO, Steel
Dynamics and United States Steel were petitioners in the investigation
and have been involved in this proceeding since its inception. Id. at
3. According to the domestic interested parties in this review,
International Steel Group formed in 2002 and is the successor to the
original petitioners that no longer exist: LTV Steel Company, Bethlehem
Steel Corporation, and Weirton Steel Corporation. Id.
As a result of the lack of respondent participation in this sunset
review, pursuant to section 751(c)(3)(B) of the Act and 19 CFR
351.218(e)(1)(ii)(C)(2), the Department conducted an expedited (120-
day) sunset review of this order.
Scope of Review
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
these investigations.
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.
[[Page 70656]]
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 agreement:
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% 0.30-0.50% 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% 0.30-0.50% 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%
-----------------------------------------------------------------------------------------------------------------------------------------------------------
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/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%.
[[Page 70657]]
The merchandise subject to this agreement 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.
Analysis of Comments Received
All issues raised in this review are addressed in the "Issues and
Decision Memorandum" ("Decision Memorandum") from Ronald K.
Lorentzen, Acting Director, Office of Policy, Import Administration, to
James J. Jochum, Assistant Secretary for Import Administration, dated
November 29, 2004, which is hereby adopted by this notice. The issues
discussed in the accompanying Decision Memorandum include the
likelihood of continuation or recurrence of countervailable subsidies,
the net subsidy likely to prevail were the order revoked, 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 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 https://enforcement.trade.gov/frn, under the heading "December 2004." The
paper copy and electronic version of the Decision Memorandum are
identical in content.
Final Results of Review
We determine that revocation of the CVD order on hot-rolled steel
from Brazil would be likely to lead to continuation or recurrence of
countervailable subsidies at the rates listed below:
------------------------------------------------------------------------
Net countervailable
Producers/Exporters subsidy (percent)
------------------------------------------------------------------------
Usinas Siderugicas de Minas Gerais and 9.67
Companhia Siderugica Paulista ("USIMINAS/
COSIPA").....................................
Companhia Siderugica Nacional ("CSN")........ 6.35
All Others..................................... 7.81
------------------------------------------------------------------------
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 the results and notice in accordance
with sections 751(c), 752, and 777(i)(1) of the Act.
Dated: November 29, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. E4-3480 Filed 12-6-04; 8:45 am]