67 FR 62102, October 3, 2002
DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-849]
Notice of Final Affirmative Countervailing Duty Determination:
Certain Cold-Rolled Carbon Steel Flat Products From the Republic of
Korea
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of final affirmative countervailing duty determination.
-----------------------------------------------------------------------
EFFECTIVE DATE: October 3, 2002.
FOR FURTHER INFORMATION CONTACT: Tipten Troidl at (202) 482-1767 or
Darla Brown at (202) 482-2849, Office of AD/CVD Enforcement VI, Import
Administration, U.S. Department of Commerce, Room 4012, 14th Street and
Constitution Avenue, NW., Washington, DC 20230.
SUMMARY: On March 4, 2002, the Department of Commerce (the Department)
published in the Federal Register its preliminary affirmative
determination in the countervailing duty investigation of certain cold-
rolled carbon steel flat products (subject merchandise) from the
Republic of Korea for the period of investigation (POI) calendar year
2000 (67 FR 9685).
The net subsidy rate in the final determination differs from that
of the preliminary determination. The revised final net subsidy rate is
listed below in the ``Suspension of Liquidation'' section of this
notice.
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 (URAA). In addition, unless otherwise
indicated, all citations to the Department's regulations are to the
regulations codified at 19 CFR part 351 (2001).
Background
On March 4, 2002, the Department of Commerce (the Department)
published in the Federal Register its preliminary affirmative
determination in the countervailing duty investigation of certain cold-
rolled carbon steel flat products from the Republic of Korea. See
Notice of Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Countervailing Duty Determination with Final
Antidumping Duty Determination: Certain Cold-Rolled Carbon Steel Flat
Products from the Republic of Korea, 67 FR 9685 (March 4, 2002)
(Preliminary Determination). This investigation covers the POI calendar
year 2000.
We invited interested parties to comment on the Preliminary
Determination. We received both case briefs and rebuttal briefs from
interested parties. A public hearing was held on August 27, 2002. All
issues raised in the case and rebuttal briefs by parties to this
investigation are addressed in the ``Issues and Decision Memorandum''
(Decision Memorandum) dated September 23, 2002, which is hereby adopted
by this notice.
With respect to scope, in the Preliminary Determinations in these
cases, the Department preliminarily
[[Page 62103]]
excluded certain porcelain enameling steel from the scope of these
investigations. See Scope Appendix to the Notice of Preliminary
Determination of Sales at Less Than Fair Value: Certain Cold-Rolled
Carbon Steel Flat Products from Argentina, 67 FR 31181 (May 9, 2002)
(Scope Appendix--Argentina Preliminary LTFV Determination). On June 13,
2002, we issued a preliminary decision on the remaining 75 scope
exclusion requests filed in a number of the on-going cold-rolled steel
investigations (see the June 13, 2002, memorandum regarding
``Preliminary Scope Rulings in the Antidumping Investigations on
Certain Cold-Rolled Carbon Steel Flat Products from Argentina,
Australia, Belgium, Brazil, France, Germany, India, Japan, Korea, the
Netherlands, New Zealand, the People's Republic of China, the Russian
Federation, South Africa, Spain, Sweden, Taiwan, Thailand, Turkey, and
Venezuela, and in the Countervailing Duty Investigations of Certain
Cold-Rolled Carbon Steel Flat Products from Argentina, Brazil, France,
and Korea'' (Preliminary Scope Rulings), which is on file in the
Department's Central Records Unit (CRU), room B-099 of the main
Department building. We gave parties until June 20, 2002, to comment on
the preliminary scope rulings, and until June 27, 2002, to submit
rebuttal comments. We received comments and/or rebuttal comments from
petitioners and respondents from various countries subject to these
investigations of cold-rolled steel. In addition, on June 13, 2002, the
North American Metals Company (an interested party in the Japanese
proceeding) filed a request that the Department issue a ``correction''
for an already excluded product. On July 8, 2002, the petitioners
objected to this request.
At the request of multiple respondents, the Department held a
public hearing with respect to the Preliminary Scope Rulings on July 1,
2002. The Department's final decisions on the scope exclusion requests
are addressed in the ``Scope of Investigation'' section below.
Scope of Investigation
For purposes of this investigation, the products covered are
certain cold-rolled (cold-reduced) flat-rolled carbon-quality steel
products. A full description of the scope of this investigation is
contained in ``Appendix I'' attached to the Notice of Correction to
Final Determination of Sales at Less Than Fair Value: Certain Cold-
Rolled Carbon Steel Flat Products from Australia, 67 FR 52934 (August
14, 2002). For a complete discussion of the comments received on the
Preliminary Scope Rulings, see the memorandum regarding ``Issues and
Decision Memorandum for the Final Scope Rulings in the Antidumping Duty
Investigations on Certain Cold-Rolled Carbon Steel Flat Products from
Argentina, Australia, Belgium, Brazil, France, Germany, India, Japan,
Korea, the Netherlands, New Zealand, the People's Republic of China,
the Russian Federation, South Africa, Spain, Sweden, Taiwan, Thailand,
Turkey, and Venezuela, and in the Countervailing Duty Investigations of
Certain Cold-Rolled Carbon Steel Flat Products from Argentina, Brazil,
France, and Korea,'' dated July 10, 2002, which is on file in the CRU.
Period of Investigation
The period of investigation (POI) for which we are measuring
subsidies is calendar year 2000.
Verification
As provided in section 782(i) of the Act, we conducted verification
of the government responses from April 15 through 18, 2002. We also
conducted verification of the responses of companies from April 17
through 25, 2002. We used standard verification procedures, including
meeting with government and company officials and examining relevant
accounting records and original source documents provided by the
respondents. Our verification results are outlined in detail in the
public versions of the verification reports, which are on file in the
Central Records Unit of the Department of Commerce (Room B-099).
Analysis of Comments Received
A list of issues which parties have raised and to which we have
responded, all of which are in the Decision Memorandum, is attached to
this notice as Appendix I. 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 room B-
099 of the Main Commerce Building. In addition, a complete version of
the Decision Memorandum can be accessed directly on the World Wide Web
at https://enforcement.trade.gov, under the heading ``Federal Register
Notices.'' 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)(I) of the Act, we have
calculated individual rates for the companies under investigation. For
the period calendar year 2000, we determine the net subsidy rates for
the investigated companies to be as follows:
------------------------------------------------------------------------
Net subsidy
Producer/exporter rate
------------------------------------------------------------------------
Dongbu Steel Co., Ltd. (Dongbu)............................ 1.09
percent ad
valorem
Hyundai Hysco (Hysco)...................................... 0.36
percent ad
valorem
Pohang Iron & Steel Co., Ltd. (POSCO)...................... 0.76
percent ad
valorem
Union Steel Manufacturing Co., Ltd. (Union)................ 3.43
percent ad
valorem
All Others Rate............................................ 1.09
percent ad
valorem
------------------------------------------------------------------------
In accordance with our preliminary affirmative determination, we
instructed the U.S. Customs Service to suspend liquidation of all
entries of certain cold-rolled carbon steel flat products from Korea,
which were entered or withdrawn from warehouse, for consumption on or
after March 4, 2002, the date of the publication of our preliminary
determination in the Federal Register. In accordance with section
703(d) of the Act, we instructed the U.S. Customs Service to
discontinue the suspension of liquidation for merchandise entered on or
after July 2, 2002, but to continue the suspension of liquidation of
entries made between March 4, 2002 and July 1, 2002.
We will reinstate suspension of liquidation under section 706(a) of
the Act for all entries 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 that the ITC
confirms that it will not disclose such information, either publically
or under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Import Administration.
[[Page 62104]]
If the ITC determines that material injury, or threat of material
injury, does not exist, these proceedings will be terminated. If
however, the ITC determines that such injury does exist, we will issue
a countervailing duty order.
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 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: September 23, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.
Appendix I--Issues and Decision Memorandum
Methodology and Background Information
I. The Net Subsidy Rate Attributable to Union Steel Manufacturing
Co., Ltd. (Union)
II. Subsidies Valuation Information
A. Allocation Period
B. Benchmarks for Loans and Discount Rate
C. Treatment of Subsidies Received by Trading Companies
Analysis of Programs
I. Programs Conferring Subsidies
A. Pre-Shipment and Post-Shipment Export Financing
B. GOK Infrastructure Investment at Kwangyang Bay Through 1991
C. Research and Development (R&D)
D. Provision of Land at Asan Bay
E. POSCO's Exemption of Bond Requirement for Port Use at Asan
Bay
F. Investment Tax Credits
G. Reserve for Export Loss--Article 16 of the TERCL
H. Reserve for Overseas Market Development under TERCL Article
17
I. Asset Revaluation Under Article 56(2) of the TERCL
J. Tax Reserve for Balanced Development under TERCL Article 41/
RSTA Article 58
K. Short-term Export Financing
L. Local Tax Exemption on Land outside of Metropolitan Area
M. Electricity Discounts under the Requested Load Adjustment
Program
N. POSCO's Provision of Steel Inputs at Less than Adequate
Remuneration
O. Dongbu's Excessive Exemptions under the Harbor Act
P. Exemption of VAT on Imports of Anthracite Coal
II. Programs Determined To Be Not Countervailable
A. GOK Infrastructure Investments at Kwangyang Bay
B. R&D Aid for Anthracite Coal Technology
C. Asan Bay Infrastructure Subsidies
D. Reserve for Energy-Saving Equipment (RSTA Article 30)
III. Programs Determined To Be Not Used
A. Anthracite Coal for Less than Adequate Remuneration
B. Grants to Dongbu
C. Technical Development Fund (RSTA Article 9, formerly TERCL
Article 8)
D. Export Insurance
IV. Total Ad Valorem Rate
V. Analysis of Comments
Comment 1: GOK Control of POSCO
Comment 2: POSCO's Provision of Hot-rolled Coil at Less than
Adequate Remuneration
Comment 3: Exemption of VAT
Comment 4: Direction of Credit
Comment 5: Tax Programs
Comment 6: Research and Development Subsidies
Comment 7: The GOK's Provision of Infrastructure at Kwangyang Bay
Comment 8: The GOK's Provision of Infrastructure at Asan Bay
Comment 9: Provision of Land at Asan Bay: Land Price and Benchmark
Comment 10: Provision of Land at Asan Bay: Fees Waived
Comment 11: Exemption of Port Fees under the Harbor Act
Comment 12: POSCO's donation to POSTECH
[FR Doc. 02-24785 Filed 10-2-02; 8:45 am]
BILLING CODE 3510-DS-P