NOTICES
DEPARTMENT OF COMMERCE
International Trade Administration
[C-427-810]
Corrosion-Resistant Carbon Steel Flat Products from France; Final Results of
Expedited Sunset Review of Countervailing Duty Order
Thursday, April 6, 2000
AGENCY:
*18063
Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of Final Results of Expedited Sunset Review: Corrosion-Resistant Carbon
Steel Flat Products from France.
SUMMARY: On September 1, 1999, the Department of Commerce ("the Department")
initiated a sunset review of the countervailing duty order on corrosion- resistant
carbon steel flat products from France (64 FR 47767) 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 adequate substantive comments filed on behalf of the domestic interested parties, as
well as inadequate response from respondent interested parties, the Department
determined to conduct an expedited (120 day) sunset review. Based on our analysis of the
comments received, we find that revocation of the countervailing duty order would
be likely to lead to continuation or recurrence of a countervailable subsidy at the levels
listed below in the section entitled Final Results of the Review.
EFFECTIVE DATE: April 6, 2000.
FOR FURTHER INFORMATION CONTACT: Eun W. Cho or Melissa G. Skinner, 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) 482-1698 or (202) 482-1560, respectively.
SUPPLEMENTARY INFORMATION:
The Applicable Statute
Unless otherwise indicated, all citations to the Act are references to the provisions
effective January 1, 1995, the effective date of the amendments made to the Act by the
Uruguay Round Agreements Act ("URAA"). In addition, unless otherwise indicated, all
citations to the Department 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 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 initiated a sunset review of the countervailing
duty order on corrosion-resistant carbon steel flat products from France (64 FR
47767). We invited parties to comment. On the basis of a notice of intent to participate
and adequate substantive response filed on behalf of the domestic interested parties, as
well as inadequate response from respondent interested parties, the Department
determined to conduct an expedited (120 day) sunset review. The Department is
conducting this sunset review in accordance with sections 751 and 752 of the Act.
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). This review concerns a transition order within the meaning of
section 751(c)(6)(C)(i) of the Act. Therefore, on December 22, 1999, the Department
determined that the sunset review of the countervailing duty order on
corrosion-resistant steel from France 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. [FN1]
FN1 See Extension of Time Limit for Final Results of Expedited Five-Year Reviews, 64 FR
71726 (December 22, 1999).
Scope of Review
The products covered by this order are certain corrosion-resistant carbon steel flat
products from France. These products include flat-rolled carbon steel products, of
rectangular shape, either clad, plated, or coated with corrosion-resistant metals such as
zinc, aluminum, or zinc-, aluminum-, nickel- or iron-based alloys, whether or not
corrugated or painted, varnished or coated with plastics or other nonmetallic substances
in addition to the metallic coating, in coils (whether or not in successively superimposed
layers) and of a width of 0.5 inch or greater, or in straight lengths which, if of a thickness
less than 4.75 millimeters, are of a width of 0.5 inch or greater and which measures at
least 10 times the thickness or if of a thickness of 4.75 millimeters or more are 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 7210.31.0000, 7210.39.0000, 7210.41.0000, 7210.49.0030, 7210.49.0090,
7210.60.0000, 7210.70.6030, 7210.70.6060, 7210.70.6090,7210.90.1000,
7210.90.6000, 7210.90.9000, 7212.21.0000, 7212.29.0000, 7212.30.1030,
7212.30.1090, 7212.30.3000, 7212.30.5000, 7212.40.1000, 7212.40.5000,
7212.50.0000, 7212.60.0000, 7215.90.1000, 7215.90.5000, 7217.12.1000,
7217.13.1000, 7217.19.1000, 7217.19.5000, 7217.22.5000, 7217.23.5000,
7217.29.1000, 7217.29.5000, 7217.32.5000,7217.33.5000, 7217.39.1000, and
7217.39.5000.
Included in this 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 bevelled or
rounded at the edges. Excluded from this scope are flat-rolled steel products either plated
or coated with tin, lead, chromium, chromium oxides, both tin and lead ("terne plate"), or
both chromium and chromium oxides ("tin-free steel"), whether or not painted, varnished
or coated with plastics or
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other nonmetallic substances in addition to the
metallic coating. Also excluded from the scope are clad products in straight lengths of
0.1875 inch or more in composite thickness and of a width which exceeds 150
millimeters and measures at least twice the thickness. Also excluded from the scope are
certain clad stainless flat-rolled products, which are three-layered corrosion-resistant
carbon steel flat-rolled products less than 4.75 millimeters in composite thickness that
consist of a carbon steel flat-rolled product clad on both sides with stainless steel in a
20%-60%-20% ratio.
The HTSUS item numbers are provided for convenience and customs purposes. The
written description remains dispositive.
Analysis of Comments Received
All issues raised in substantive responses 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 attached Decision Memo include the likelihood of continuation
or recurrence of subsidy, the net countervailable 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 B-099, the Central Records Unit, 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 Review
We determine that revocation of the countervailing duty order would be likely to lead
to continuation or recurrence of the subsidy at the following net countervailable subsidy.
[FN2]
FN2 In Inland Steel Industries, Inc. v. U.S., 188 F3d. 1349 (Fed. Cir. 1999), the court
affirmed several lower court decisions which had changed the net countervailing subsidy
rate to 15.13 percent from the 15.12 percent calculated in the original investigation.
--------------------------------------------
Manufacturer/exporters Margin (percent)
--------------------------------------------
Usinor ............................... 15.13
Country-wide ......................... 15.13
--------------------------------------------
Although the programs included in our calculation of the net countervailable subsidy
likely to prevail if the order were revoked do not fall within Article 3 of the Subsidies
Agreement, some or all of them may be subsidies as described in Article 6.1. For example,
the net countervailable subsidy may exceed five percent, as measured in accordance with
Annex IV of the Subsidies Agreement. The Department, however, has no information with
which to make such a calculation; nor do we believe it appropriate to attempt such a
calculation in the course of a sunset review. Moreover, we note that as of January 1,
2000, Article 6.1 has ceased to apply (see Article 31 of the Subsidies Agreement). As
such, we are only providing the Commission the following program descriptions:
(1) PACS/FIS: This program of equity infusions was devised to restructure Usinor and its
massive debt.
(2) Grants in the Form of Shareholders' Advances: The Government of France ("GOF")
financed the recurring needs of Usinor through shareholders' advances beginning in 1982.
These shareholders' advance carried no interest and there was no precondition for receipt
of these funds.
(3) Investment Subsidies: Under this program the French companies would receive
subsides from the GOF for the purchase of fixed assets. Because the relevant parties did
not provide sufficient information, based on best information available, the Department
determined that the Investment Subsidies are specific rather than generally available.
(4) Grants in the Form of Cancellation of Debt: The two former private majority
shareholders of Usinor canceled a portion of debt owed to them by Usinor. The
Department found that the debt forgiveness was provided at the direction of the GOF and,
hence, countervailable.
(5) ECSC 54: Under this program, investment loans are provided by the European Union
for the purpose of purchasing new equipment or financing modernization. Because these
loans are only available to companies in steel and coal industries, the Department found
the loans countervailable.
(6) CFDI: Under this program participative loans, which were by law available to all
French companies, were issued by the CFDI. The borrower paid a lower- than-market
interest rate plus a share of future profits according to an agreed upon formula. Because
the GOF could not provide sufficient information, the Department determined that loans
under this program are de facto limited to specific enterprise or industry and that,
therefore, these loans are countervailable to the extent that they were provided on terms
inconsistent with commercial considerations.
(7) ECSC 56: The main purpose of these grants are to assist workers affected by the
restructuring of the coal and steel industries. Because the Department did not have
information pertaining to some specific details, it assumed that the extra government
contribution relieved Usinor of an obligation and, therefore, is countervailable in its
entirety.
(8) Other Loan Guarantees: These guarantees were provided by, or were provided to
guarantee loans from, Credit National, bank syndicates in which Credit National,
participated, Caisse des Depots et Consignations, Groupement de l'Industrie Siderurgique,
FDES, the ECSC, and the European Investment Bank. Because relevant parties did not
provide sufficient information, the Department found, based on best information
available, inter alia, the fees associated with these loan guarantees are specific rather than
generally available, and therefore, countervailable.
(9) Other Participative Loans: Because the Department had no information regarding the
category of these loans and about the programs and because these loans were not
reported, based on best information available and the calculation of the benefit from
these loans, the Department determined that these loans are countervailable.
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 this determination and notice in accordance with sections
section 751(c), 752, and 777(i) of the Act.
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Dated: March 29, 2000.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 00-8555 Filed 4-5-00; 8:45 am]
BILLING CODE 3510-DS-P