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:

[[Page 61801]]

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,

[[Page 61802]]

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
------------------------------------------------------------------------

    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]