58 FR 47865
NOTICES
DEPARTMENT OF COMMERCE
(C-791-801)
Preliminary Negative Countervailing Duty Determinations: Certain Steel Products
From South Africa
Monday, September 13, 1993
*47865
AGENCY: Import Administration, International Trade Administration, Department
of Commerce.
EFFECTIVE DATE: September 13, 1993.
FOR FURTHER INFORMATION CONTACT: Elizabeth A. Graham or Kristin M. Heim, Office of
Countervailing Investigations, Import Administration, U.S. Department of
Commerce, room B099, 14th Street and Constitution Avenue, NW., Washington, DC 20230;
telephone (202) 482-4105 or 482-3798, respectively.
PRELIMINARY DETERMINATION:
Case History
Since the publication of the notice of initiation in the Federal Register (58 FR 32515, June 10,
1993), the following events have occurred.
On June 14, 1993, we issued a questionnaire to the Government of South Africa ("GOSA")
in Washington, DC, concerning petitioners' allegations.
On July 14, 1993, we received responses from the GOSA, South African Iron and Steel
Industrial Corporation, Ltd. ("ISCOR"), its wholly-owned subsidiary, Vantin (Pty) Ltd.
("Vantin"), and Highveld and Steel and Vanadium Corporation Ltd. ("Highveld").
On July 26, 1993, we postponed the preliminary determinations to September 3, 1993 (58 FR
39790). On July 30, 1993, we presented the GOSA, ISCOR, Vantin, and Highveld with
supplemental questionnaires and received responses from these parties on August 16, 1993.
*47866
Scope of Investigations
The products covered by these investigations, certain steel products, constitute the following
four separate "classes or kinds" of merchandise: (1) Certain hot-rolled carbon steel flat
products, (2) certain cold-rolled carbon steel flat products, (3) certain cut-to-length carbon
steel plate, and (4) certain corrosion-resistant carbon steel flat products. See Appendix A to
this notice for a complete description of the merchandise.
Injury Test
South Africa is not a "country under the Agreement" within the meaning of section 701(b)
of the Tariff Act of 1930, as amended, ("the Act") and the products covered by these
investigations are dutiable. Therefore, the U.S. International Trade Commission is not
required to determine whether imports of these products from South Africa materially
injure, or threaten material injury to, a U.S. industry.
Petitioners
Petitioners for each class or kind of merchandise subject to investigation are Armco Steel
Company, L.P.; Bethlehem Steel Corporation; Geneva Steel; Gulf
States Steel Inc. of Alabama; Inland Steel Industries, Inc.; Laclede Steel Company; LTV Steel
Company, Inc.; Lukens Steel Company; National Steel Corporation; Sharon Steel Corporation;
U.S. Steel Group (a unit of USX Corporation); and WCI Steel, Inc.
Respondents
The GOSA, Iscor and its wholly-owned subsidiary, Vantin, are respondents for all four classes
or kinds of merchandise. Highveld is a respondent for cut-to- length carbon steel plate.
Analysis of Programs
For purposes of these preliminary determinations, the period for which we are measuring
bounties or grants, the period of investigation ("the POI"), is calendar year 1992.
In determining the benefits received under the program described below, we used the
following calculation methodology. We first calculated a country-wide rate for the program.
This rate is comprised of the ad valorem benefit received by each firm weighted by each firm's
share of exports, separately for each class or kind of merchandise, to the United States.
Because Vantin is a
wholly-owned subsidiary of Iscor, the benefits received by Iscor and Vantin were combined
and weighted by their combined share of exports to the United States.
Consistent with our practice in preliminary determinations, when a response to an allegation
denies the existence of a program, receipt of benefits under a program, or eligibility of a
company or industry under a program, and the Department has no persuasive evidence
showing that the response is incorrect, we accept the response for purposes of the preliminary
determinations. All such responses, however, are subject to verification. If the response
cannot be supported at verification, and the program is otherwise countervailable, the
program will be considered a bounty or grant in the final determinations.
Based upon our analysis of the petition and the responses to our questionnaires, we
preliminarily determine the following:
I. Program Preliminarily Determined To Be Countervailable
The following program is preliminarily determined to be countervailable.
Export Marketing Allowance Program
The Export Marketing Allowance ("EMA") program was established in 1962 to
encourage export trade. The allowance may result in an additional deduction from taxable
income of 75 to 100 percent of the marketing expenditure incurred. Exporters are allowed to
deduct the additional 100 percent of their export marketing expenditures if their exports have
increased by 10 percent over a specific time period. The program was terminated effective
April 1, 1992. However, any unused portion of the allowance may be carried forward.
Iscor, Vantin and Highveld all applied for and received deductions under this program. All
three companies were able to claim a 100 percent allowance. Vantin stated that all of its EMA
claims were applicable to markets other than the U.S. Iscor and Highveld provided a
breakdown of expenditures which were applicable to the U.S. market. Furthermore, while
Iscor was able to claim an allowance under this program, the company was in a tax loss
situation and, therefore, did not pay income tax for the tax return filed in the POI. Because
Iscor's tax liability was not affected by the use of this program in the POI, we determine that
this program was not used by Iscor (see, e.g., Final Negative Countervailing Duty
Determination: Low-Fuming Brazing Copper Rod and Wire from South Africa, (50 FR
31642, 31643, August 5, 1985)). Accordingly, we determine that this program was used only
by Highveld based only on eligible U.S. expenditures.
Because this program is limited to exporters, we determine that it confers an export bounty or
grant. To calculate the benefit for the POI, we
divided the tax savings related to the U.S. market under the program by the total value of
export sales to the U.S. of all products. On this basis, we determine the net bounties or grants
from this program to be 0.00 percent ad valorem for hot-rolled carbon steel products; 0.00
percent ad valorem for cold- rolled carbon steel products; 0.00 percent ad valorem for
corrosion-resistant carbon steel flat products; and 0.05 percent ad valorem for cut-to-length
carbon steel plate.
Because this is the only countervailable program and the rates are zero or de minimis,
pursuant to 19 CFR 355.7, we preliminarily determine that no benefits which constitute
bounties or grants within the meaning of the countervailing duty law are being provided
to manufacturers, producers, or exporters of certain steel products in South Africa.
II. Programs Preliminarily Determined Not To Be Used
We preliminarily determine that producers or exporters in South Africa of the subject
merchandise did not receive benefits during the POI for exports of the subject merchandise to
the United States under the following programs:
A. General Export Incentive Scheme
B. Export Marketing Assistance Schemes
C. Beneficiation Allowance
D. Industrial Development Corporation Financing
1. Industrial Financing
2. Low Interest-Rate Scheme for Export Promotion
3. Export Finance Scheme
4. Export Capacity Scheme
5. Export Credit Scheme Interest-Rate Subsidy
6. Multi Shift Scheme
E. Regional Industrial Development Incentives
1. Incentives Provided Under the 1982 Regional Industrial Development Policy
a. Rebates of Transportation Expense
b. Electricity Rebates
c. Housing Subsidies for Key Personnel
d. Special Tender Preferences
e. Short-term Financing Incentives
f. Labor Incentives
g. Long-Term Interest and Rent Incentives
h. Cash Training Allowances
*47867
2. Incentives Provided Under the 1991 Regional Industrial Development Policy
a. Annual Establishment Grant
b. Profit Based Incentive
c. Relocation Incentive
F. Tax Benefits Given to Manufacturers in Economic Development Areas Relating to the Cost of
Power, Water and Transport
Verification
In accordance with section 776(b) of the Act, we will verify the information used in making
our final determinations.
Public Comment
In accordance with 19 CFR 355.38, we will hold a public hearing, if requested, to afford
interested parties an opportunity to comment on these preliminary determinations on Friday,
November 5, 1993, at 10 a.m. at the U.S. Department of Commerce, room 3708, 14th Street
and Constitution Avenue, NW., Washington, DC 20230. Individuals who wish to request a
hearing must submit such a request within ten days of the publication of this notice in the
Federal Register to the Assistant Secretary for Import Administration, U.S. Department of
Commerce, room B099, 14th Street and Constitution Avenue, NW., Washington, DC 20230.
Parties should confirm by telephone the time, date, and place of the hearing 48 hours before
the scheduled time.
Requests should contain: (1) The party's name, address, and telephone number; (2) the
number of participants; (3) the reason for attending; and (4) a list of the issues to be discussed.
In addition, ten copies of the business proprietary version and five copies of the
nonproprietary version of the case briefs must be submitted to the Assistant Secretary no later
than October 29, 1993. Ten copies of the business proprietary version and five copies of the
nonproprietary version of the rebuttal briefs must be submitted to the Assistant Secretary no
later than November 3, 1993. An interested party may make an affirmative presentation only
on arguments included in that party's case or rebuttal briefs. Written arguments should be
submitted in accordance with section 355.38 of the Commerce Department's regulations and
will be considered if received within the time limits specified above.
These determinations are published pursuant to section 703(f) of the Act (19 U.S.C. 1671b(f)).
Dated: September 3, 1993.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
Appendix A
Scope of the Investigations
The products covered by these investigations, certain flat-rolled steel products, constitute the
following four separate "classes or kinds" of merchandise, as outlined below. Although the
Harmonized Tariff Schedule of the United States (HTS) subheadings are provided for
convenience and customs purposes, our written descriptions and the scope of this proceeding
are dispositive.
Certain Hot-Rolled Carbon Steel Flat-Rolled Products
These products include hot-rolled carbon steel flat products, of a width of 0.5 inch or greater,
neither clad, plated nor coated with metal, whether or not painted, varnished or coated with
plastics or other nonmetallic substances, in coils (whether or not in successively
superimposed layers), or in straight lengths which are less than 4.75 millimeters in thickness
and of a width measuring at least 10 times the thickness, as currently classifiable in the HTS
under item numbers 7208.11.0000, 7208.12.0000, 7208.13.1000, 7208.13.5000,
7208.14.1000, 7208.14.5000, 7208.21.1000, 7208.21.5000, 7208.22.1000,
7208.22.5000, 7208.23.1000, 7208.23.5030, 7208.23.5090, 7208.24.1000,
7208.24.5030, 7208.24.5090, 7208.34.1000, 7208.34.5000, 7208.35.1000,
7208.35.5000, 7208.44.0000, 7208.45.0000, 7208.90.0000, 7210.70.3000,
7210.90.9000, 7211.12.0000, 7211.19.1000, 7211.19.5000, 7211.22.0090, 7211.29.1000,
7211.29.3000, 7211.29.5000, 7211.29.7030, 7211.29.7060, 7211.29.7090, 7211.90.0000,
7212.40.1000, 7212.40.5000, 7212.50.0000, 7214.30.0000, 7214.40.0010,
7214.50.0010, 7214.60.0010, and 7215.90.5000. Excluded from this investigation are
certain seat belt retractor spring steel and certain carbon band saw steel, which are defined
respectively by the following specifications:
Certain Seat Belt Retractor Spring Steel
Chemical Composition:
Carbon--0.78%-0.83%
Manganese 0.35%-0.50%
Phosphorus 0.020% maximum
Sulphur 0.008% maximum
Silicon 0.10%-0.20%
Aluminum 0.020%-0.060%
Chromium 0.05%-0.15%
Copper 0.12% maximum
Non-Metallic Inclusion Rating:
(1) IPSI 10,000 maximum
(2) ASTM E45
A: 2 maximum
B and C: 1 maximum
D: 1 maximum
(3) DIN 50602
SS: maximum 3
OA: maximum 1
OS: maximum 1
OG: maximum 2
Banding:
1 maximum
Decarburization:
Complete=0.0005 inch maximum
Total=0.002 inch maximum
Width:
14 inches maximum
Thickness:
0.07 to 0.125 inches
Certain Carbon Band Saw Steel
Chemical Composition:
Carbon--1.21%-1.35%
Manganese--0.15%-0.35%
Phosphorus 0.025% maximum
Sulphur--0.010% maximum
Silicon--0.10%-0.25%
Aluminum--0.015% maximum
Chromium--0.10%-0.30%
Copper--0.15% maximum
Microstructure:
Must be fully sorbitic with carbide size 1 absolute maximum.
Certain Cold-Rolled Carbon Steel Flat-Rolled Products
These products include cold-rolled (cold-reduced) carbon steel flat products, neither clad,
plated nor coated with metal, whether or not painted, varnished or coated with plastics or
other nonmetallic substances, in coils (whether or not in successively superimposed layers)
and of a width of 0.5 inch or greater, or in straight lengths which, if of a thickness less than
4.75 millimeters, are
of a width of 0.5 inch or greater and which measures at least 10 times the thickness or if of a
thickness of 4.75 millimeters or more are of a width which exceeds 150 millimeters and
measures at least twice the thickness, as currently classifiable in the HTS under item numbers
7209.11.0000, 7209.12.0030, 7209.12.0090, 7209.13.0030, 7209.13.0090,
7209.14.0030, 7209.14.0090, 7209.21.0000, 7209.22.0000, 7209.23.0000,
7209.24.1000, 7209.24.5000, 7209.31.0000, 7209.32.0000, 7209.33.0000,
7209.34.0000, 7209.41.0000, 7209.42.0000, 7209.43.0000, 7209.44.0000,
*47868
7209.90.0000, 7210.70.3000, 7210.90.9000, 7211.30.1030, 7211.30.1090,
7211.30.3000, 7211.30.5000, 7211.41.1000, 7211.41.3030, 7211.41.3090, 7211.41.5000,
7211.41.7030, 7211.41.7060, 7211.41.7090, 7211.49.1030, 7211.49.1090, 7211.49.3000,
7211.49.5030, 7211.49.5060, 7211.49.5090, 7211.90.0000, 7212.40.1000, 7212.40.5000,
7212.50.0000, 7217.11.1000, 7217.11.2000, 7217.11.3000, 7217.19.1000, 7217.19.5000,
7217.21.1000, 7217.29.1000, 7217.29.5000, 7217.31.1000, 7217.39.1000, and
7217.39.5000. Excluded from this investigation is certain shadow mask steel, i.e.,
aluminum-killed, cold-rolled steel coil that is open-coil annealed, has a carbon content of less
than 0.002 percent, is of 0.003 to 0.012 inch in thickness, 15 to 30 inches in width, and has an
ultra flat, isotropic surface.
Certain Corrosion-Resistant Carbon Steel Flat-Rolled Products
These products include flat-rolled carbon steel products, either clad, plated, or coated with
corrosion-resistant metals such as zinc, aluminum, or zinc-, aluminum-, nickel- or iron-based
alloys, whether or not corrugated or painted, varnished or coated with plastics or other
nonmetallic substances in addition to the metallic coating, in coils (whether or not in
successively superimposed layers) and of a width of 0.5 inch or greater, or in straight lengths
which, if of a thickness less than 4.75 millimeters, are of a width of 0.5 inch or greater and
which measures at least 10 times the thickness or if of a thickness of 4.75 millimeters or more
are of a width which exceeds 150 millimeters and measures at least twice the thickness, as
currently classifiable in the HTS under item numbers 7210.31.0000, 7210.39.0000,
7210.41.0000, 7210.49.0030, 7210.49.0090, 7210.60.0000, 7210.70.6030,
7210.70.6060, 7210.70.6090, 7210.90.1000, 7210.90.6000, 7210.90.9000,
7212.21.0000, 7212.29.0000, 7212.30.1030, 7212.30.1090, 7212.30.3000,
7212.30.5000, 7212.40.1000, 7212.40.5000, 7212.50.0000, 7212.60.0000,
7215.90.1000, 7215.90.5000, 7217.12.1000, 7217.13.1000, 7217.19.1000, 7217.19.5000,
7217.22.5000, 7217.23.5000, 7217.29.1000, 7217.29.5000, 7217.32.5000,
7217.33.5000, 7217.39.1000, and 7217.39.5000.
Excluded from this investigation are flat-rolled steel products either plated or coated with tin,
lead, chromium, chromium oxides, both tin and lead
("terne plate"), or both chromium and chromium oxides ("tin-free steel"), whether or not
painted, varnished or coated with plastics or other nonmetallic substances in addition to the
metallic coating. Also excluded from this investigation are certain clad stainless flat-rolled
products, which are three- layered corrosion-resistant carbon steel flat-rolled products less
than 4.75 millimeters in thickness that consist of a carbon steel flat-rolled product clad on
both sides with cold-rolled processed stainless steel flat-rolled products in a 20%-60%-20%
ratio.
Certain Cut-to-Length Flat-Rolled Carbon Steel Plate
These products include hot-rolled carbon steel universal mill plates (i.e., flat-rolled products
rolled on four faces or in a closed box pass, of a width exceeding 150 millimeters but not
exceeding 1,250 millimeters and of a thickness of not less than 4 millimeters, not in coils and
without patterns in relief), neither clad, plated nor coated with metal, whether or not painted,
varnished, or coated with plastics or other nonmetallic substances; and certain hot-rolled
carbon steel flat products in straight lengths, hot rolled, neither clad, plated, nor coated with
metal, whether or not painted, varnished, or coated with plastics or other nonmetallic
substances, 4.75 millimeters or more in thickness and of a width which exceeds 150
millimeters and measures at least
twice the thickness, as currently classifiable in the HTS under item numbers 7208.31.0000,
7208.32.0000, 7208.33.1000, 7208.33.5000, 7208.41.0000, 7208.42.0000,
7208.43.0000, 7208.90.0000, 7210.70.3000, 7210.90.9000, 7211.11.0000,
7211.12.0000, 7211.21.0000, 7211.22.0045, 7211.90.0000, 7212.40.1000, 7212.40.5000,
and 7212.50.0000. Excluded from this investigation is grade X-70 plate.
(FR Doc. 93-22311 Filed 9-10-93; 8:45 am)
BILLING CODE 3510-DS-P