71 FR 70960, December 7, 2006
DEPARTMENT OF COMMERCE
International Trade Administration
[C-357-815, C-533-821, C-560-813, C-791-810, C-549-818]
Hot-Rolled Carbon Steel Flat Products from Argentina, India, Indonesia,
South Africa, and Thailand: Final Results of Expedited Five-Year (Sunset)
Reviews of the Countervailing Duty Orders
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On August 1, 2006, the Department of Commerce (the Department)
published in the Federal Register the notice of initiation of the first
five-year sunset reviews of the countervailing duty orders on certain
hot-rolled carbon steel flat products (hot-rolled steel) from
Argentina, India, Indonesia, South Africa, and Thailand, pursuant to
section 751(c) of the Tariff Act of 1930, as amended (the Act). See
Initiation of Five-Year (Sunset) Reviews, 71 FR 43443 (August 1, 2006)
(Initiation of First Sunset Reviews). On the basis of notices of intent
to participate and adequate substantive responses filed on behalf of
domestic interested parties, and inadequate responses from respondent
interested parties (in these cases, no responses from the governments
of Argentina, India, Indonesia, South Africa, and Thailand, or any of
the respondent companies covered by the orders), the Department has
conducted expedited sunset reviews of these orders pursuant to section
751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(B). As a result of
these sunset reviews, the Department finds that revocation of the
countervailing duty orders is likely to lead to continuation or
recurrence of countervailable subsidies at the levels indicated in the
``Final Results of Review'' section of this notice.
EFFECTIVE DATE: December 7, 2006.
FOR FURTHER INFORMATION CONTACT: Darla Brown at (202) 482-2849
(Argentina, Indonesia), Preeti Tolani at (202) 482-0395 (India), Elfi
Blum at (202) 482-0197 (South Africa), Myrna Lobo at (202)482-2371
(Thailand), or Dana Mermelstein at (202) 482-1391, AD/CVD Operations,
Office 6, Import Administration, International Trade Administration,
U.S. Department of Commerce, 14th Street and Constitution Ave., NW.,
Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
On August 1, 2006, the Department initiated the first sunset
reviews of the countervailing duty orders on hot-rolled steel from
Argentina, India, Indonesia, South Africa, and Thailand, pursuant to
section 751(c) of the Act. See First Sunset Reviews. The Department
received notices of intent to participate from United States Steel
Corporation (U.S. Steel), Mittal Steel USA Inc. (Mittal USA), Nucor
Corporation (Nucor), Gallatin Steel Co., IPSCO Steel Inc. (IPSCO),
Steel Dynamics, Inc. (collectively, domestic interested parties), and
the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy,
Allied Industrial and Service Workers International Union, AFL-CIO-CLC
(USW), within the deadline specified in 19 CFR 351.218(d)(1)(i).
Domestic interested parties and USW claimed interested party status
under sections 771(9)(C) and (D) of the Act, as U.S. producers and a
certified union engaged in the manufacture, production, or wholesale of
hot-rolled steel in the United States.
On August 31, 2006, the Department received a substantive response
for each order from domestic interested parties within the deadline
specified in 19 CFR 351.218(d)(3)(i). The Department did not receive
any responses from any respondent interested party to this proceeding.
In accordance with 19 CFR 351.218(e)(1)(ii)(C)(1), the Department
notified the International Trade Commission (ITC) that respondent
interested parties to the CVD orders on hot-rolled steel from
Argentina, India, Indonesia, South Africa, and Thailand, provided
inadequate responses to the Initiation of First Sunset Reviews. The
Department, therefore, has conducted expedited sunset reviews of the
countervailing duty orders, pursuant to
[[Page 70961]]
19 CFR 351.218(e)(1)(ii)(B) and 351.218(e)(1)(ii)(C)(2).
Since the publication of the countervailing duty orders (see Notice
of Countervailing Duty Order: Certain Hot-Rolled Carbon Steel Flat
Products from Argentina, 66 FR 47173 (September 11, 2001), Notice of
Amended Final Determination and Notice of Countervailing Duty Orders:
Certain Hot-Rolled Carbon Steel Flat Products From India and Indonesia,
66 FR 60198 (December 3, 2001), Notice of Countervailing Duty Order:
Certain Hot-Rolled Carbon Steel Flat Products from South Africa, 66 FR
60201 (December 3, 2001), and Notice of Countervailing Duty Order:
Certain Hot-Rolled Carbon Steel Flat Products from Thailand, 66 FR
60197 (December 3, 2001), with the exception of the countervailing duty
order on hot-rolled steel from India, there have been no administrative
reviews of these orders.
Scope of the Orders
ARGENTINA, INDIA, INDONESIA, SOUTH AFRICA, THAILAND
The merchandise subject to these countervailing duty orders is
certain hot-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
this investigation.
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 included in the scope of these orders, regardless of
definitions in the Harmonized Tariff Schedule of the United States
(HTSUS), 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 descriptions
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., American Society
for Testing and Materials (ASTM) specifications A543, A387, A514, A517,
A506).
- Society of Automotive Engineers (SAE)/American Iron & Steel Institute
(AISI) grades of series 2300 and higher.
- Ball bearings 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 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
HTSUS.
The merchandise subject to these orders is classified in the 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, 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 carbon steel flat
products 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 HTSUS
subheadings are provided for convenience and customs purposes, the
Department's written description of the merchandise subject to these
countervailing duty orders is dispositive.
Analysis of Comments Received
All issues raised in the substantive responses by parties to these
sunset reviews are addressed in the Issues and Decision Memorandum for
Final Results of Expedited Five-Year (Sunset) Reviews of the
Countervailing Duty Orders on Certain Hot-Rolled Carbon Steel Flat
Products from Argentina, India, Indonesia, South Africa, and Thailand,
from Stephen J. Claeys, Deputy Assistant Secretary for Import
Administration, to David M. Spooner, Assistant Secretary for Import
Administration, dated November 29, 2006 (Decision Memo), 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 rate likely to
prevail if the orders were revoked and the nature of the subsidy.
Parties can find a complete discussion of all issues raised in these
sunset reviews and the corresponding recommendation 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 Department's Web page
at https://enforcement.trade.gov/frn. The paper copy and electronic version
of the Decision Memo are identical in content.
Final Results of Review
The Department determines that revocation of the countervailing
duty orders on hot-rolled steel from Argentina, India, Indonesia, South
Africa, and Thailand would be likely to lead to continuation or
recurrence of countervailable subsidies at the following subsidy rates:
ARGENTINA
------------------------------------------------------------------------
Manufacturer/Exporter Subsidy Rate
------------------------------------------------------------------------
Siderar Sociedad Anomina............................
Industrial & Commercial (Siderar)........... 41.69 % ad valorem
All others.......................................... 41.69 % ad valorem
------------------------------------------------------------------------
INDIA
------------------------------------------------------------------------
Manufacturer/Exporter Subsidy Rate
------------------------------------------------------------------------
Essar Steel Limited (Essar)......................... 12.90 % ad valorem
Ispat Industries Limited (Ispat).................... 36.51 % ad valorem
Steel Authority of India Limited (SAIL)............. 22.89 % ad valorem
Tata Iron and Steel Company Limited (TISCO)......... 13.79 % ad valorem
All Others.......................................... 20.72 % ad valorem
------------------------------------------------------------------------
INDONESIA
------------------------------------------------------------------------
Manufacturer/Exporter Subsidy Rate
------------------------------------------------------------------------
P.T. Krakatau Steel................................. 10.21 % ad valorem
All others.......................................... 10.21 % ad valorem
------------------------------------------------------------------------
SOUTH AFRICA
------------------------------------------------------------------------
Manufacturer/Exporter Subsidy Rate
------------------------------------------------------------------------
Saldanha Steel (Pty.) Ltd. (Saldanha)/..............
Iscor Ltd. (Iscor).......................... 5.76 % ad valorem
All others.......................................... 5.76 % ad valorem
------------------------------------------------------------------------
THAILAND
------------------------------------------------------------------------
Manufacturer/Exporter Subsidy Rate
------------------------------------------------------------------------
Sahaviriya Steel Industries Public..................
Company Limited (SSI)....................... 2.38 % ad valorem
All others.......................................... 2.38 % ad valorem
------------------------------------------------------------------------
International Trade Commission (ITC) Notification
In accordance with section 752(b)(3) of the Act, we will notify the
ITC of the final results of these full sunset reviews.
Administrative Protective Orders
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. 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 determinations and notice in
accordance with sections 751(c), 752, and 777(i) of the Act.
Dated: November 29, 2006.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. E6-20699 Filed 12-6-06; 8:45 am]
BILLING CODE 3510-DS-S