[Federal Register: September 28, 2001 (Volume 66, Number 189)]
[Page 49637-49639]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-560-813]
Final Affirmative Countervailing Duty Determination: Certain Hot-
Rolled Carbon Steel Flat Products From Indonesia
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of Final Affirmative Countervailing Duty Investigation.
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SUMMARY: On April 20, 2001, the Department of Commerce (the Department)
published in the Federal Register its preliminary affirmative
determination in the countervailing duty investigation of certain hot-
rolled carbon steel flat products from Indonesia for the period January
1, 1999 through December 31, 1999.
The net subsidy rate in the Final Determination differs from that
of the Preliminary Determination. The revised final net subsidy rate
for the investigated company is listed below in the ``Suspension of
Liquidation'' section of this notice.
EFFECTIVE DATE: September 28, 2001.
FOR FURTHER INFORMATION CONTACT: Stephanie Moore at (202) 482-3692 or
Tipten Troidl at (202) 482-1767, Office of AD/CVD Enforcement VI, Group
II, Import Administration, International Trade Administration, U.S.
Department of Commerce, Room 4012, 14th Street and Constitution Avenue,
NW., Washington, DC 20230.
SUPPLEMENTARY INFORMATION
Applicable Statute and Regulations
Unless otherwise indicated, all citations to the statute are
references to the provisions effective January 1, 1995, the effective
date of the amendments made to the Tariff Act of 1930 (the Act) by the
Uruguay Round Agreements Act (URAA). In addition, unless otherwise
indicated, all citations to the Department's regulations are to the
regulations codified at 19 CFR part 351 (2000).
Background
On April 20, 2001, the Department published the preliminary results
of investigation on certain hot-rolled carbon steel flat products from
India. See Notice of Preliminary Affirmative Countervailing Duty
Determination and Alignment of Final Countervailing Duty Determination
With Final Antidumping Duty Determination: Certain Hot-Rolled Carbon
Steel Flat Products From
[[Page 49638]]
Indonesia, 66 FR 20236, (April 20, 2001) (Preliminary Results). This
investigation covers one manufacturer/exporter: P.T. Krakatau Steel
(Krakatau). The investigation covers the period January 1, 1999,
through December 31, 1999. The investigation covers 2 programs.
We invited interested parties to comment on the Preliminary
Determination. On August 10, 2001, we received comments from
petitioners and respondents. On August 21, 2001, we received rebuttal
comments from petitioners and respondents. A public hearing was held at
the Department of Commerce on September 6, 2001.
Although the deadline for this determination was originally
September 17, 2001, in light of the events of September 11, 2001, and
the subsequent closure of the Federal Government for reasons of
security, the time frame for issuing this determination has been
extended by four days.
Scope of the Investigation
The merchandise subject to this investigation is 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 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 this investigation 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 this investigation,
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 this investigation unless
otherwise excluded. The following products, by way of example, are
outside or specifically excluded from the scope of this investigation:
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 this investigation is 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 this investigation, 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 under investigation
is dispositive.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this investigation are addressed in the ``Issues and Decision
Memorandum'' (Decision Memorandum) dated September 19, 2001, which is
hereby adopted by this notice. A list of issues which parties have
raised and to which we have responded, all of which are in the Decision
Memorandum, is attached to this notice as Appendix I. Parties can find
a complete discussion of all issues raised in this investigation 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 Memorandum can be accessed directly on
the World Wide Web at http://www.enforcement.trade.gov, under the heading
``Federal Register Notices.'' The paper copy and electronic version of
the Decision Memorandum are identical in content.
Suspension of Liquidation
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we have
calculated an individual rate for the company under investigation,
Krakatau. The ``all others'' rate is the rate calculated for Krakatau,
the sole company subject to this investigation. For the period January
1 1999, through
[[Page 49639]]
December 31, 1999, we determine the following net subsidy rates:
------------------------------------------------------------------------
Producer/exporter Net subsidy rate [percent]
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P.T. Krakatau Steel....................... 10.21 Ad Valorem.
All Others................................ 10.21 Ad Valorem.
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In accordance with our preliminary affirmative determination, we
instructed the U.S. Customs Service to suspend liquidation of all
entries of certain hot-rolled carbon steel flat products from
Indonesia, which were entered or withdrawn from warehouse, for
consumption on or after April 20, 2001, the date of the publication of
our preliminary determination in the Federal Register. In accordance
with section 703(d) of the Act, we instructed the U.S. Customs Service
to discontinue the suspension of liquidation for merchandise entered on
or after August 18, 2001, but to continue the suspension of liquidation
of entries made between April 20, 2001 and August 17, 2001.
We will reinstate suspension of liquidation under section 706(a) of
the Act for all entries if the ITC issues a final affirmative injury
determination and will require a cash deposit of estimated
countervailing duties for such entries of merchandise in the amounts
indicated above. If the ITC determines that material injury, or threat
of material injury, does not exist, this proceeding will be terminated
and all estimated duties deposited or securities posted as a result of
the suspension of liquidation will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary information related to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided that the ITC
confirms that it will not disclose such information, either publically
or under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Import Administration.
If the ITC determines that material injury, or threat of material
injury, does not exist, these proceedings will be terminated. If
however, the ITC determines that such injury does exist, we will issue
a countervailing duty order.
Return or Destruction of Proprietary Information
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to APO of their responsibility concerning the destruction of
proprietary information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Failure to comply is a violation of the APO.
This determination is published pursuant to sections 705(d) and
777(i) of the Act.
Dated: September 21, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.
Appendix I--Issues and Decision Memorandum
Methodology and Background Information
I. Subsidies Valuation Information
A. Allocation Period
B. Creditworthiness and Calculation of Discount Rate
C. Equityworthiness
Analysis of Programs
I. Programs Conferring Subsidies
A. GOI Equity Infusions
B. Two Step Loan
II. Program Determined To Be Not Countervailable
III. Program Determined To Be Not Used
A. Rediscount Loans from the Bank of Indonesia
IV. Total Ad Valorem Rate
V. Analysis of Comments
Comment 1: Effects of Hyperinflation during 1998
Comment 2: GOI's Equity Infusion to Krakatau
Comment 3: GOI's Equity Infusion Specific to Krakatau
Comment 4: Use of Consolidated Total Sales as the Denominator
Comment 5: Feasibility Study and Equityworthiness
Comment 6: Two Step Loan Program
Comment 7: GOI Equity Infusions applying Adverse Facts Available
Comment 8: Krakatau's Creditworthiness
[FR Doc. 01-24406 Filed 9-27-01; 8:45 am]
BILLING CODE 3510-DS-P