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