[Federal Register: January 23, 2002 (Volume 67, Number 15)]
               
[Page 3163-3165]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-475-830]

 
Final Affirmative Countervailing Duty Determination: Stainless 
Steel Bar From Italy

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

ACTION: Notice of final affirmative determination in a countervailing 
duty investigation.

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SUMMARY: The Department of Commerce has made a final determination that 
countervailable subsidies are being provided to certain producers and 
exporters of stainless steel bar from Italy. For information on the 
estimated countervailing duty rates, please see the ``Suspension of 
Liquidation'' section, below.

EFFECTIVE DATE: January 23, 2002.

FOR FURTHER INFORMATION CONTACT: Suresh Maniam or Jennifer Jones at 
(202) 482-0176 or (202) 482-4194, respectively; Import Administration, 
International Trade Administration, U.S. Department of Commerce, 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. In addition, unless otherwise 
indicated, all citations to the Department of Commerce's (the 
``Department'') regulations are references to the provisions codified 
at 19 CFR part 351 (April 2000).

Petitioners

    The petition in this investigation was filed by Carpenter 
Technology Corp., Crucible Specialty Metals, Electralloy Corp., Empire 
Specialty Steel Inc., Slater Steels Corp., and the United Steelworkers 
of America, AFL-CIO/CLC (collectively, ``the petitioners'').

Case History

    Since the publication of the preliminary determination in the 
Federal Register (see Preliminary Affirmative Countervailing Duty 
Determination and Alignment of Final Countervailing Duty Determination 
With Final Antidumping Duty Determination: Stainless Steel Bar From 
Italy, 66 FR 30414 (June 6, 2001) (``Preliminary Determination'')), the 
following events have occurred:
    From June 25, 2001 to July 13, 2001, we conducted a verification of 
the questionnaire responses submitted by the Government of Italy 
(``GOI''), the Provincial Government of Bolzano, the Regional 
Government of Valle D'Aosta, Trafileria Bedini S.r.l. (``Bedini''), 
Acciaiera Foroni S.p.A. (``Foroni''), Italfond S.p.A., Rodacciai 
S.p.A., and Acciaierie Valbruna S.p.A. (``Valbruna'').
    On August 2, 2001, we published a notice postponing the final 
antidumping determination until December 17, 2001. Notice of 
Preliminary Determination of Sales at Less Than Fair Value and 
Postponement of Final Determination: Stainless Steel Bar from Italy, 66 
FR 40214 (August 2, 2001). Because of the alignment of this 
countervailing duty investigation with the antidumping duty 
investigation, the final determination in this countervailing duty 
investigation was also postponed until December 17, 2001.
    On October 23 and 24, 2001, we informed all interested parties 
that, due to the events of September 11, 2001, we were tolling the 
final determination deadline until January 15, 2001. See Memorandum to 
File, ``Tolling of Final Determination Deadline,'' dated October 25, 
2001.
    On October 29, 2001, we received case briefs from the petitioners, 
Valbruna, Bedini, and Foroni. On November 5, 2001, we received rebuttal 
briefs from the petitioners, Valbruna, and Bedini. Foroni did not file 
a rebuttal brief. No hearing was held because no party requested a 
hearing.

Scope of Investigation

    For purposes of this investigation, the term ``stainless steel 
bar'' includes articles of stainless steel in straight lengths that 
have been either hot-rolled, forged, turned, cold-drawn, cold-rolled or 
otherwise cold-finished, or ground, having a uniform solid cross 
section along their whole length in the shape of circles, segments of 
circles, ovals, rectangles (including squares), triangles, hexagons, 
octagons, or other convex polygons. Stainless steel bar includes cold-
finished stainless steel bars that are turned or ground in straight 
lengths, whether produced from hot-rolled bar or from straightened and 
cut rod or wire, and reinforcing bars that have indentations, ribs, 
grooves, or other deformations produced during the rolling process.
    Except as specified above, the term does not include stainless 
steel semi-finished products, cut length flat-rolled products (i.e., 
cut length rolled products which if less than 4.75 mm in thickness have 
a width measuring at least 10 times in thickness, or if 4.75 mm or more 
in thickness having a width which exceeds 150 mm and measures at least 
twice the thickness), products that have been cut from stainless steel 
sheet, strip or plate, wire (i.e., cold-formed products in coils, of 
any uniform solid cross section along their whole length, which do not 
conform to the definition of flat-rolled product), and angles, shapes 
and sections.
    The stainless steel bar subject to this investigation is currently 
classifiable under subheadings 7222.11.00.05, 7222.11.00.50, 
7222.19.00.05, 7222.19.00.50, 7222.20.00.05, 7222.20.00.45, 
7222.20.00.75, and 7222.30.00.00 of the Harmonized Tariff Schedules of 
the United States (``HTSUS'').
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, the written description of the merchandise under 
investigation is dispositive.
    Scope Changes: Certain requests regarding the scope of this 
investigation were addressed in the preliminary determinations of the 
concurrent

[[Page 3164]]

antidumping duty investigations and after the preliminary determination 
in this countervailing duty case. (See, e.g., Notice of Preliminary 
Determination of Sales at Less Than Fair Value and Postponement of 
Final Determination: Stainless Steel Bar from Italy, 66 FR 40214, 40216 
(August 2, 2001)). The respondents in the companion antidumping duty 
investigations filed comments seeking to exclude certain products from 
the scope of these investigations. Because these comments affect the 
scope of this investigation as well, we are addressing them now. The 
specific products identified in their exclusion requests are:
    1. Stainless steel tool steel.
    2. Welding wire.
    3. Special-quality oil field equipment steel (``SQOFES'').
    4. Special profile wire.
    These requests are addressed in more detail in the Memorandum to 
the File, ``Definition of Scope,'' dated July 26, 2001 and its 
attachments, which has been placed on the record of this investigation. 
The conclusions in this memorandum are summarized below.
    Regarding stainless steel tool steel, welding wire, and SQOFES, 
after considering the respondents' comments and the petitioners' 
objections to the exclusion requests, we determined that the scope is 
not overly broad. Therefore, stainless steel tool steel, welding wire, 
and SQOFES are within the scope of this investigation. In addition, we 
determined that SQOFES does not constitute a separate class or kind of 
merchandise from the subject merchandise.
    Regarding special profile wire, we determined that this product 
does not fall within the scope as it is written because its cross 
section is in the shape of a concave polygon. Therefore, we have not 
included special profile wire in this investigation.

Injury Test

    Because Italy is a ``Subsidies Agreement Country'' within the 
meaning of section 701(b) of the Act, the U.S. International Trade 
Commission (``ITC'') is required to determine whether imports of the 
subject merchandise from Italy materially injure, or threaten material 
injury to, a U.S. industry. On February 23, 2001, the ITC published its 
preliminary determination finding a reasonable indication of material 
injury or threat of material injury to an industry in the United States 
by reason of imports of stainless steel bar from Italy. See Stainless 
Steel Bar from France, Germany, Italy, Korea, Taiwan, and the United 
Kingdom, 66 FR 11314 (February 23, 2001).

Period of Investigation

    The period of investigation for which we are measuring subsidies is 
the calendar year 2000.

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'' from Richard W. Moreland, Deputy Assistant Secretary, 
Import Administration to Faryar Shirzad, Assistant Secretary, Import 
Administration, dated January 15, 2001 (``Decision Memorandum''), which 
is hereby adopted by this notice. Attached to this notice as Appendix I 
is a list of the issues which parties have raised and to which we have 
responded in the Decision Memorandum. 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 the Central Records Unit, room B-099 of the main Department 
building. In addition, a complete version of the Decision Memorandum 
can be accessed directly on the Internet at https://enforcement.trade.gov/frn/ 
under the heading ``Italy.'' 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) of the Act, we have 
calculated an individual net subsidy rate for each manufacturer of the 
subject merchandise. Pursuant to section 705(c)(1)(B)(ii) of the Act, 
we are directing Customs to continue to suspend liquidation of all 
imports of the subject merchandise from Italy, except for subject 
merchandise produced and exported by Acciaierie Valbruna S.p.A., 
Acciaiera Foroni, S.p.A, Trafileria Bedini S.r.l., Italfond S.p.A., or 
Rodacciai S.p.A. (all of which have either a zero or de minimis 
weighted-average margin), that are entered, or withdrawn from 
warehouse, for consumption on or after June 6, 2001, the date of 
publication of the Preliminary Determination in the Federal Register. 
In accordance with sections 777A(e)(2)(B) and 705(c)(5)(A) of the Act, 
we have set the ``all others'' rate as CAS'' rate, because the rates 
for all other investigated companies are either zero or de minimis. We 
note that although portions of CAS'' rate were based on adverse facts 
available, we based the majority of our calculations on information 
provided by the GOI and EC in this investigation. We determine the 
total estimated net subsidy rate for each company to be:

------------------------------------------------------------------------
                                                             Net subsidy
                     Producer/exporter                           rate
                                                              (percent)
------------------------------------------------------------------------
Cogne Acciai Speciali S.r.l................................        13.17
Acciaierie Valbruna S.p.A..................................         0.42
Acciaiera Foroni S.p.A.....................................         0.00
Trafileria Bedini S.r.l....................................         0.00
Italfond S.p.A.............................................         0.18
Rodacciai S.p.A............................................         0.07
All Others.................................................        13.17
------------------------------------------------------------------------

    In accordance with our Preliminary Determination, we instructed the 
Customs Service to suspend liquidation of all entries of stainless 
steel bar from Italy, which were entered or withdrawn from warehouse, 
for consumption on or after June 6, 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 Customs to discontinue 
the suspension of liquidation for merchandise for countervailing duty 
purposes entered on or after October 4, 2001, but to continue the 
suspension of liquidation of entries made from June 6, 2001 through 
October 3, 2001.
    We will issue a countervailing duty order and reinstate the 
suspension of liquidation under section 706(a) of the Act 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 the ITC 
confirms that it will not disclose such information, either publicly or 
under an Administrative Protective Order (``APO''), without the written 
consent of the Assistant Secretary for Import Administration.

[[Page 3165]]

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 an 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: January 15, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix I

List of Comments and Issues in the Decision Memorandum

    Comment 1: Facts Available Methodology for CAS.
    Comment 2: Appropriate AUL for Valbruna.
    Comment 3: Attribution of Subsidies Following Bolzano's Change in 
Ownership.
    Comment 4: Interest Subsidy Received by Falck Under Article 3 of 
Law 193/84.
    Comment 5: Law 193/84 Capacity Reduction Grants.
    Comment 6: Repayment of Law 25/81 Benefits by Falck.
    Comment 7: Bolzano Industrial Site Lease and Extraordinary 
Maintenance.
    Comment 8: Bolzano Industrial Site Purchase.
    Comment 9: Countervailability of Law 44/92.
    Comment 10: Exclusion of Valbruna's Non-Italian Production from 
Sales Denominator.
    Comment 11: Denominator Used in Calculating Valbruna's Subsidy 
Rate.
    Comment 12: Appropriate Discount Rate for Valbruna.
    Comment 13: Law 451/94 Early Retirement Program.
    Comment 14: Attribution of 1983 and 1985 Law 25/81 Grants to 
Valbruna.
    Comment 15: Law 25/81 Environmental Grants.
    Comment 16: European Social Fund.
    Comment 17: Law 549/95.
    Comment 18: Appropriate AUL for Foroni.

[FR Doc. 02-1655 Filed 1-22-02; 8:45 am]
BILLING CODE 3510-DS-P