69 FR 61800, October 21, 2004
DEPARTMENT OF COMMERCE
International Trade Administration
[C-475-823]
Stainless Steel Plate in Coils From Italy; Preliminary Results of the
Full Sunset Review of the Countervailing Duty Order
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of preliminary results of full sunset review: stainless
steel plate in coils from Italy.
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SUMMARY: On April 1, 2004, the Department initiated a sunset review of
the countervailing duty (``CVD'') order on stainless steel plate in
coils (``SSPC'') from Italy pursuant to section 751(c) of the Tariff
Act of 1930, as amended (``the Act''). See Initiation of Five-Year
(Sunset) Reviews, 69 FR 17129 (April 1, 2004). On the basis of
substantive responses filed by domestic and respondent interested
parties, the Department is conducting a full sunset review. As a result
of this review, the Department preliminarily finds that revocation of
the countervailing duty order would likely lead to continuation or
recurrence of subsidies at the levels indicated in the Preliminary
Results of Review section of this notice.
EFFECTIVE DATE: October 21, 2004.
FOR FURTHER INFORMATION CONTACT: Hilary Sadler, Esq., Office of Policy
for Import Administration, International Trade Administration, U.S.
Department of Commerce, 14th Street and Constitution Avenue, NW.,
Washington, DC 20230; telephone: (202) 482-4340.
SUPPLEMENTARY INFORMATION:
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Department's Regulations
The Department's procedures for the conduct of sunset reviews are
set forth in 19 CFR 351.218. Guidance on methodological or analytical
issues relevant to the Department's conduct of sunset reviews is set
forth in the Department's Policy Bulletin 98.3--Policies Regarding the
Conduct of Five-year (``Sunset'') Reviews of Antidumping and
Countervailing Duty Orders; Policy Bulletin, 63 FR 18871 (April 16,
1998) (``Policy Bulletin'').
Background
On April 1, 2004, the Department initiated a sunset review of the
countervailing duty (``CVD'') order on SSPC from Italy pursuant to
section 751(c) of the Tariff Act of 1930, as amended (``the Act''). See
Initiation of Five-Year (Sunset) Reviews, 69 FR 17129 (April 1, 2004).
The Department received a notice of intent to participate from
Allegheny Ludlum Corp. (``Allegheny Ludlum''), North America Stainless
(``NAS''), and the United Steelworkers of America, AFL-CIO/CLC
(``USWA''), the domestic interested parties (collectively ``domestic
interested parties''), within the applicable deadline (April 16, 2004)
specified in section 351.218(d)(1)(i) of the Sunset Regulations. See
Response of the Domestic Interested Parties at 2, May 3, 2004
(``Domestic Response''). All domestic interested parties claimed
interested-party status under section 771(9)(C) and (D) of the Act, as
a U.S. producer of the domestic like product or a certified union whose
workers are engaged in the production of the subject merchandise in the
United States. Domestic Response. The USWA was a petitioner in the
investigation and has been involved in this proceeding since its
inception. Id. at 6. Armo, Inc., J&L Specialty Steels, Inc., Lukens
Inc., were also petitioners in the original investigation but are
either no longer producers of subject merchandise or are scheduled to
cease production of SSPC within in this month. Id. According to the
domestic parties of this review, two unions, Butler Armco Independent
Union and Zanesville Armco Independent Organization, that were original
petitioners are not participating in this sunset review because very
few workers at these unions are engaged in the production of SSPC in
the United States. Id. at 7. The domestic interested parties have
participated as a group at various segments of this order. Id.
The Department received a complete substantive response to the
notice of initiation on behalf of three respondent interested parties:
the Government of Italy (``GOI''), the Delegation of the European
Commission (``EC''), and TKAST. On May 3, 2004, we received substantive
responses from all three respondent interested parties expressing their
willingness to participate in this review as the authority responsible
for defending the interest of the Member States of the European Union.
See Responses of the GOI (unpaginated), May 3, 2004, (``GOI
Response''); EC (unpaginated), April 30, 2004, (``EC Response''); and
TKAST, May 3, 2004 (``TKAST Response'') at 2. All respondent interested
parties note that they have in the past participated in this
proceeding. On May 3, 2004, we received a substantive response from
TKAST, a foreign producer and exporter of the subject merchandise as
well as the respondent interested party under section 771(9)(A) of the
Act, expressing its willingness to participate in this review as well
as the Section 129 review. See TKAST Response at 2.
On May 3, 2004, we received a complete substantive response from
the domestic interested parties within the 30-day deadline specified in
the Department's Regulations under section 351.218(d)(3)(i). See
Domestic Response.
We received rebuttal comments from the domestic interested parties
on May 10, 2004. On June 10, 2004, pursuant to section 351.309(e)(ii),
TKAST filed comments on the Department's adequacy determination stating
that the Department's determination of respondents' inadequacy was
incorrect and should be reconsidered. See Letter of TKAST, Stainless
Steel Plate from Italy (Sunset): Adequacy of Responses (June 10, 2004).
On June 10, 2004, Allegheny Ludlum Corporation, North American
Stainless and the United Steelworkers of America, petitioners in this
case, filed comments arguing that the Department's adequacy
determination was correct and that the expedited review is warranted.
See Letter of Domestic Interested Parties, Stainless Steel Plate in
Coils from Belgium, Canada, Italy, South Africa, South Korea and
Taiwan: Five Year (``Sunset'') Reviews of Antidumping Duty and
Countervailing Duty Orders (June 10, 2004).
In a sunset review, the Department normally will conclude that
there is adequate response to conduct a full sunset review where
respondent interested parties account for more than 50 percent, by
volume, of total exports of subject merchandise to the United States.
See 19 CFR 351.218(e)(1)(ii)(A). TKAST accounted for more than the 50
percent threshold that the Department normally considers to be an
adequate response under 19 CFR section 351.218(e)(I)(ii)(A). On July
13, 2004, the Department determined that the responses by TKAST, the
only respondent company in this review, the GOI, and the EC provided an
adequate basis for a full review. See Memorandum for James J. Jochum,
Assistant Secretary, Import Administration, from Ronald K. Lorentzen,
Acting Director, Office of Policy, Re: Sunset Review of Stainless Steel
Plate in Coils from Italy; Adequacy of Respondent Interested Party
Response to the Notice of Initiation, July 13, 2004. Therefore, the
Department is conducting a full sunset review in accordance with 19 CFR
351.218(e)(2)(I).
Scope of Review
The product covered by this order is certain stainless steel plate
in coils. Stainless steel is an alloy steel containing, by weight, 1.2
percent or less of carbon and 10.5 percent or more of chromium, with or
without other elements. The subject plate products are flat-rolled
products, 254 mm or over in width and 4.75 mm or more in thickness, in
coils, and annealed or otherwise heat treated and pickled or otherwise
descaled. The subject plate may also be further processed (e.g., cold-
rolled, polished, etc.) provided that it maintains the specified
dimensions of plate following such processing. Excluded from the scope
of these orders are the following: (1) Plate not in coils, (2) plate
that is not annealed or otherwise heat treated and pickled or otherwise
descaled, (3) sheet and strip, and (4) flat bars. In addition, certain
cold-rolled stainless steel plate in coils is also excluded from the
scope of this order. The excluded cold-rolled stainless steel plate in
coils is defined as that merchandise which meets the physical
characteristics described above that has undergone a cold-reduction
process that reduced the thickness of the steel by 25 percent or more,
and has been annealed and pickled after this cold reduction process.
The merchandise subject to these orders is currently classifiable in
the Harmonized Tariff Schedule of the United States (HTSUS) at
subheadings: 7219.11.00.30, 7219.11.00.60, 7219.12.00.05,
7219.12.00.20, 7219.12.00.25, 7219.12.00.50, 7219.12.00.55,
7219.12.00.65, 7219.12.00.70, 7219.12.00.80, 7219.31.00.10,
7219.90.00.10, 7219.90.00.20, 7219.90.00.25, 7219.90.00.60,
7219.90.00.80, 7220.11.00.00, 7220.20.10.10, 7220.20.10.15,
7220.20.10.60, 7220.20.10.80, 7220.20.60.05, 7220.20.60.10,
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7220.20.60.15, 7220.20.60.60, 7220.20.60.80, 7220.90.00.10,
7220.90.00.15, 7220.90.00.60, and 7220.90.00.80. Although the HTSUS
subheadings are provided for convenience and customs purposes, the
written description of the scope of the orders is dispositive.
Analysis of Comments Received
All issues raised in the substantive responses and rebuttals by
parties to this sunset review are addressed in the ``Issues and
Decision Memorandum'' (``Decision Memo'') from Ronald K. Lorentzen,
Acting Director, Office of Policy, Import Administration, to Jeffrey A.
May, Acting Assistant Secretary for Import Administration, dated
October 15, 2004, which is hereby adopted by this notice. The issues
discussed in the accompanying Decision Memo include the likelihood of
continuation or recurrence of countervailable subsidies and the net
subsidy likely to prevail were the order revoked. Parties can find a
complete discussion of all issues raised in this review and the
corresponding recommendations in this public memorandum which is on
file in the Central Records Unit, room B-099, of the main Commerce
building.
In addition, a complete version of the Decision Memo can be
accessed directly on the Web at http://www.enforcement.trade.gov/frn, under
the heading ``Italy.'' The paper copy and electronic version of the
Decision Memo are identical in content.
Preliminary Results of Review
The Department notes that on November 7, 2003, the U.S. Trade
Representative requested the Department, pursuant to section 129(b)(4)
of the Uruguay Round Agreements Act, to implement the determination in
the Section 129 Memo. See Notice of Implementation Under Section 129 of
the Uruguay Round Agreements Act: Countervailing Measures Concerning
Certain Steel Products From the European Communities, 68 FR 64858,
(November 17, 2003). Accordingly, the Department revised the cash
deposit rates for TKAST and ``all others'' to reflect the impact that
privatization had on non-recurring, allocable subsidies for the
countervailing duty order on SSPC from Italy. Id. We, therefore,
revised the net subsidy rates for TKAST to 1.62 percent and all others
to 1.61 percent.
We preliminarily determine that revocation of the countervailing
duty order on SSPC from Italy would be likely to lead to continuation
or recurrence of countervailable subsidies at the rate listed below:
------------------------------------------------------------------------
Net
countervailable
Producers/Exporters subsidy
(percent)
------------------------------------------------------------------------
TKAST................................................ 0.80
All Others........................................... 1.61
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Any interested party may request a hearing within 30 days of
publication of this notice in accordance with 19 CFR 351.310(d)(i). Any
hearing, if requested, will be held on December 22, 2004. Interested
parties may submit case briefs no later than December 13, 2004, in
accordance with 19 CFR 351.309(c)(1)(i). Rebuttal briefs, which must be
limited to issues raised in the case briefs, may be filed not later
than December 20, 2004, in accordance with 19 CFR 351.309(d)(I). The
Department will issue a notice of final results of this sunset review,
which will include the results of its analysis of issues raised in any
such briefs, not later than February 25, 2005.
This five-year (``sunset'') review and notice are in accordance
with sections 751(c), 752, and 777(i)(1) of the Act.
Dated: October 15, 2004.
Jeffrey A. May,
Acting Assistant Secretary for Import Administration.
[FR Doc. E4-2790 Filed 10-20-04; 8:45 am]