[Federal Register: December 3, 2001 (Volume 66, Number 232)]
[Page 60198-60200]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-821, C-560-813]
Notice of Amended Final Determination and Notice of
Countervailing Duty Orders: Certain Hot-Rolled Carbon Steel Flat
Products From India and Indonesia
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: December 3, 2001.
FOR FURTHER INFORMATION CONTACT: Eric B. Greynolds (202) 482-6071
(India), and Stephanie Moore (202) 482-3692 (Indonesia), Office of AD/
CVD Enforcement VI, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230.
[[Page 60199]]
The Applicable Statute and Regulations
Unless otherwise indicated, all citations to the statute are
references to the provisions of the Tariff Act of 1930, as amended by
the Uruguay Round Agreements Act effective January 1, 1995 (the Act).
In addition, unless otherwise indicated, all citations to the
Department's regulations are to the current regulations codified at 19
CFR part 351 (2001).
Scope of Orders
For purposes of these orders, the products covered are certain hot-
rolled flat-rolled carbon steel flat 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 of 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 orders.
Specifically included within the scope of these orders 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 or
niobium (also commonly referred to as columbium), or both, added to
stabilize carbon and nitrogen elements. HSLA steels are recognized as
steels with micro-alloying levels of elements such as chromium, copper,
niobium, 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 these orders,
regardless of definitions in the Harmonized Tariff Schedule of the
United States (HTS), are products in which: (i) Iron predominates, by
weight, over each of the other contained elements; (ii) the carbon
content is 2 percent or less, by weight; and (iii) none of the elements
listed below exceeds the quantity, by weight, respectively indicated:
1.80 percent of manganese, or
2.25 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
0.10 percent of molybdenum, or
0.10 percent of niobium, 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 these orders unless otherwise
excluded. The following products, by way of example, are outside or
specifically excluded from the scope of these orders:
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, A506).
SAE/AISI grades of series 2300 and higher.
Ball bearings steels, as defined in the HTS.
Tool steels, as defined in the HTS.
Silico-manganese (as defined in the HTS) or silicon
electrical steel with a silicon level exceeding 2.25 percent.
ASTM specifications A710 and A736.
USS Abrasion-resistant steels (USS AR 400, USS AR 500).
All products (proprietary or otherwise) based on an alloy
ASTM specification (sample specifications: ASTM A506, A507).
Non-rectangular shapes, not in coils, which are the result
of having been processed by cutting or stamping and which have assumed
the character of articles or products classified outside chapter 72 of
the HTS.
The merchandise subject to these orders are classified in the HTS
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, 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, and 7211.19.75.90. Certain hot-rolled flat-rolled
carbon-quality steel covered by these orders, 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. Subject merchandise
may also enter under 7210.70.30.00, 7210.90.90.00, 7211.14.00.30,
7212.40.10.00, 7212.40.50.00, and 7212.50.00.00. Although the HTS
subheadings are provided for convenience and U.S. Customs purposes, the
Department's written description of the merchandise subject to these
proceedings is dispositive.
Amended Final Determination for India
On October 3, 2001, petitioners\1\ alleged ministerial errors in
the calculations of the Final Affirmative Countervailing Duty
Determination: Certain Hot-Rolled Carbon Steel Flat Products from
India, 66 FR 49635 (September 28, 2001) (Final Determination), with
respect to Essar Steel Limited (Essar) and the Steel Authority of India
Limited (SAIL). On October 9, 2001, we received comments from SAIL
regarding petitioners' ministerial error allegations.
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\1\ The petitioners in these proceedings are Bethlehem Steel
Corporation, Gallatin Steel Company, IPSCO Steel Inc., LTV Steel
Company, Inc., National Steel Corporation, Nucor Corporation, Steel
Dynamics, Inc., U.S. Steel Group, a unit of USX Corporation, Weirton
Steel Corporation, Independent Steelworkers Union, and the
Independent Steelworkers of America.
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Regarding Essar, petitioners alleged that the Department
incorrectly calculated the number of days outstanding for one of
Essar's Pre-Shipment loans. We agree with petitioners and have
recalculated the benefit under the program using the correct number of
days outstanding.
Regarding SAIL, petitioners alleged that the Department incorrectly
calculated the ad valorem subsidy rate for SAIL's Steel Development
Fund (SDF) loan that was outstanding during the period of investigation
(POI). They argued that in calculating the benefit under the program,
the Department properly calculated the benefit from the interest
deferral granted to the company in each month but inadvertently failed
to take into account the additional benefit received by SAIL from each
month's interest deferral over the entire POI. In other words, they
contended that the Department should calculate the benefit from the
January interest payment deferral over a 12-month period, the benefit
from the February interest payment deferral over an 11-
[[Page 60200]]
month period, etc. SAIL argued that if the Department agrees with
petitioners, it should revise the approach advocated by petitioners so
that the duration of each interest payment deferral period is
calculated on the last day of each month, which was the day the
interest payment was due. We agree with petitioners that we should take
into account the benefit received by SAIL from each month's interest
waiver over the entire POI. The Department's Countervailing Duty (CVD)
Regulations state that interest-free loans and deferred interest
payments should be treated as government-provided loans in the amount
of the interest deferred. See Preamble to CVD Regulations at 63 FR
65369 and 19 CFR 351.509(a)(2). Accordingly, we have revised our
calculation under this program such that the benefit corresponds to the
duration of each interest payment deferral period during the POI. In
addition, in accordance with SAIL's comments, we have calculated the
duration of each interest payment deferral period beginning on the last
day of each month.
Regarding SAIL, petitioners further alleged that with respect to
the company's use of the Exemption of Pre-Shipment Export Credit from
Interest Tax program, the Department inadvertently divided the benefit
by SAIL's total export sales rather than dividing the benefit by SAIL's
total sales of subject merchandise to the United States. We agree with
petitioners. Information on the record of this investigation indicates
that SAIL's use of this program is tied to individual shipments.
Accordingly, we have divided SAIL's benefit under this program by its
total sales of subject merchandise to the United States.
The corrections for Essar and SAIL are discussed in further detail
in the October 16, 2001 memorandum to Bernard Carreau, Deputy Assistant
Secretary, AD/CVD Enforcement II, Import Administration, from Melissa
G. Skinner, Director, Office of AD/CVD Enforcement VI. The public
version of this memorandum is on file in Room B-099 in the Central
Records Unit (CRU) of the Main Commerce Building.
As a result of our corrections, the estimated net countervailable
subsidy rate attributable to Essar increased from 8.32 percent ad
valorem to 8.35 percent ad valorem. The cash deposit rate attributable
to Essar increased from 8.25 percent ad valorem to 8.28 percent ad
valorem. The estimated net countervailable subsidy rate attributable to
SAIL increased from 18.38 percent ad valorem to 18.45 percent ad
valorem. The cash deposit rate attributable to SAIL increased from
18.22 percent ad valorem to 18.27 percent ad valorem.
Due to the revisions of Essar's and SAIL's net subsidy and cash
deposit rates, the all others rate has also changed. The all others net
countervailable subsidy rate increased from 16.17 percent ad valorem to
16.20 percent ad valorem. The all others cash deposit rate increased
from 16.08 percent ad valorem to 16.10 percent ad valorem.
Countervailing Duty Orders
In accordance with section 705(d) of the Act, on September 28,
2001, the Department published its final determinations in the
countervailing duty investigations of certain hot-rolled carbon steel
flat products from India (66 FR 49635) and Indonesia (66 FR 49637). On
November 13, 2001, the International Trade Commission (ITC) notified
the Department of its final determination, pursuant to section
705(b)(1)(A)(i) of the Act, that an industry in the United States
suffered material injury as a result of subsidized imports of certain
hot-rolled carbon steel flat products from India and Indonesia.
Therefore, countervailing duties will be assessed on all
unliquidated entries of certain hot-rolled carbon steel flat products
from India and Indonesia entered, or withdrawn from warehouse, for
consumption on or after April 20, 2001, the date on which the
Department published its preliminary affirmative countervailing duty
determinations in the Federal Register, and before August 18, 2001, the
date the Department instructed the U.S. Customs Service to discontinue
the suspensions of liquidation in accordance with section 703(d) of the
Act, and on all entries and withdrawals of subject merchandise made on
or after the date of publication of these countervailing duty orders in
the Federal Register. Section 703(d) states that the suspension of
liquidation pursuant to a preliminary determination may not remain in
effect for more than four months. Entries of certain hot-rolled carbon
steel flat products made on or after August 18, 2001, and prior to the
date of publication of these orders in the Federal Register are not
liable for the assessment of countervailing duties due to the
Department's discontinuation, effective August 18, 2001, of the
suspensions of liquidation.
In accordance with section 706 of the Act, the Department will
direct U.S. Customs officers to reinstitute the suspension of
liquidation for certain hot-rolled carbon steel flat products from
India and Indonesia effective the date of publication of this notice in
the Federal Register and to assess, upon further advice by the
Department pursuant to section 706(a)(1) of the Act, countervailing
duties for each entry of the subject merchandise in an amount based on
the net countervailable subsidy rates for the subject merchandise.
On or after the date of publication of this notice in the Federal
Register, U.S. Customs officers must require, at the same time as
importers would normally deposit estimated duties on this merchandise,
a cash deposit equal to the rates noted below. The All Others rates
apply to all producers and exporters of certain hot-rolled carbon steel
flat products from India and Indonesia not specifically listed below.
The cash deposit rates are as follows:
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Producer/exporter: India Cash deposit rate
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Essar Steel Limited (Essar)............... 8.28 percent ad valorem.
Ispat Industries Limited (Ispat).......... 31.89 percent ad valorem.
Steel Authority of India Limited (SAIL)... 18.27 percent ad valorem.
Tata Iron and Steel Company Limited 9.17 percent ad valorem.
(TISCO).
All Others Rate........................... 16.10 percent ad valorem.
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Producer/exporter: Indonesia Cash deposit rate
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P.T. Krakatau Steel....................... 10.21 percent ad valorem.
All Others Rate........................... 10.21 percent ad valorem
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This notice constitutes the countervailing duty orders with respect
to certain hot-rolled carbon steel flat products from India and
Indonesia, pursuant to section 706(a) of the Act. Interested parties
may contact the CRU, for copies of an updated list of countervailing
duty orders currently in effect.
These countervailing duty orders and amended final determination
are issued and published in accordance with sections 706(a) and 705 of
the Act and 19 CFR 351.211 and 351.224.
Dated: November 21, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 01-29812 Filed 11-30-01; 8:45 am]
BILLING CODE 3510-DS-P