(Cite as: 51 FR 43759)

NOTICES

DEPARTMENT OF COMMERCE

[C-469-009]

Carbon Steel Wire Rod From Spain; Final Results of Countervailing Duty Administrative Review

Thursday, December 4, 1986

*43759 AGENCY: International Trade Administration/Import Administration, Department of Commerce.

ACTION: Notice of final results of countervailing duty administrative review.

SUMMARY: On October 14, 1986, the Department of Commerce published the preliminary results of its administrative *43760 review of the countervailing duty order on carbon steel wire rod from Spain. The review covers the period February 24, 1984 through September 30, 1984 and seven programs.

We gave interested parties an opportunity to comment on the preliminary results. After reviewing the comment received, we determine the net subsidy for the period of review to be 7.6 percent ad valorem for Forjas Alavesas, S.A., and 24.04 percent ad valorem for all other firms.

EFFECTIVE DATE: December 4, 1986.

FOR FURTHER INFORMATION CONTACT: Susan Silver or Paul McGarr, Office of Compliance, International Trade Administration, U.S. Department of Commerce, Washington, DC 20230; telephone: (202) 377-2786.

SUPPLEMENTARY INFORMATION:

Background

On July 10, 1984, the Department of Commerce ("the Department") published in the Federal Register (49 FR 18089) a countervailing duty order on carbon steel wire rod from Spain. We began this review under our old regulations. On October 1, 1985, after the promulgation of our new regulations, a Spanish exporter, Forjas Alavesas, S.A., requested in accordance with s 355.10 of the Commerce Regulations that we complete the administrative review of this order. We published the new initiation on November 27, 1985 (50 FR 48825) and the preliminary results on October 14, 1986 (51 FR 36579). We have now completed that administrative review in accordance with section 751 of the Tariff Act of 1930 ("the Tariff Act").

Scope of Review

Imports covered by the review are shipments of Spanish carbon steel wire rod, which includes coiled, semi-finished, hot-rolled carbon steel wire rod products of approximately round solid cross-section, not under 0.20 inch nor over 0.74 inch in diameter, not tempered, not treated, and not partly manufactured, and valued over 4 cents per pound. Such merchandise is currently classifiable under item 607.17 of the Tariff Schedules of the United States.

The review covers the period February 24, 1984 through September 30, 1984 and seven programs: (1) A rebate of indirect taxes upon exportation under the DFE; (2) operating capital loans; (3) long-term loans; (4) capital grants for pollution control, energy conservation and economic development; (5) short-term Privileged Circuit Exporter Credit programs other than operating capital loans; (6) research and development programs; and (7) accelerated depreciation and reduction in taxes.

Analysis of Comment Period

We invited interested parties to comment on the preliminary results. We received a written comment from Forjas Alavesas, S.A., a Spanish exporter.

Comment: Forjas contends that the Department erred in finding certain capital grants, provided by the Basque regional government for energy conservation and pollution control, to be countervailable subsidies. Programs that are administered by regional or provincial governments and that are not limited to a specific enterprise or industry, or group of enterprises or industries within the region or province, are generally available and, therefore, not countervailable. Forjas cites the Department's preliminary determination in Certain Softwood Lumber Products From Canada (51 FR 37453, October 22, 1986), in which the Department found certain programs of the provinces of Quebec, British Columbia, and Alberta not to be countervailable because the programs were generally available in each province. The Department also determined in Certain Steel Products From the Netherlands (47 FR 39372, September 7, 1982) that energy research and conservation grants to Dutch steel producers were not countervailable in part because the grants were generally available.

Forjas distinguishes the present case from the preliminary determination in Porcelain-on-Steel Cooking Ware from Spain (51 FR 34480, September 29, 1986) and the final determination in Oil Country Tubular Goods from Spain (49 FR 47060, November 30, 1984), in which the Department found certain capital grants to be countervailable. In those cases, the Department was not provided with any laws or regulations describing the programs. In this case, the Department has the laws stating that the energy conservation and pollution control projects are available to all industries within the region. Thus, the Department was incorrect in stating that it was unable to determine whether these grants were provided to more than a specific industry or group of industries in the Basque region.

Department's Position: We agree that programs provided by a regional or provincial government are not countervailable if they are not limited to certain enterprises or industries within the region or province. However, because the Government of Spain and the Basque regional government provided no evidence that these grant programs are not limited to specific enterprises or industries, we must consider them to be countervailable. Although Forjas submitted the regulations concerning the energy conservation and anti-pollution grants, the regulations do not state that the grants are not specifically provided. The regulations simply list the eligibility requirements. Further, neither the Spanish government nor the Basque regional government provided any information on other types of firms in other industrial sectors that have received these grants. Absent such information, we must consider these grants to be countervailable.

Final Results of Review

After consideration of the comment received, we determine the net subsidy during the period of review to be 7.76 percent ad valorem for Forjas Alavesas, S.A., and 24.04 percent ad valorem for all other firms. Because we consider these rates to be significantly different, as provided in section 706(a)(2) of the Tariff Act, we are granting a company-specific rate to Forjas Alavesas.

Section 707 of the Tariff Act provides that the difference between the deposit of an estimated countervailing duty and the final assessed duty shall be disregarded to the extent that the estimated duty is lower than the final duty, and refunded to the extent that the estimated duty is higher than the final duty, for merchandise entered, or withdrawn from warehouse, for consumption before the date of publication of affirmative determination of injury by the International Trade Commission, in this case, July 5, 1984 (49 FR 27640).

The Department therefore will instruct the Customs Service to assess countervailing duties of 7.76 percent of the f.o.b. invoice price on all shipments of this merchandise from Forjas Alavesas, S.A., entered, or withdrawn from warehouse, for consumption on or after February 24, 1984, and exported on or before September 30, 1984. The Department will instruct the Customs Service to assess countervailing duties of 12.59 percent of the f.o.b. invoice price on all shipments of this merchandise from all other firms entered, or withdrawn from warehouse, for consumption on or after February 24, 1984, and before July 5, 1984, and 24.04 percent of the f.o.b. invoice price on all shipments of this merchandise from all firms other than Forjas Alavesas, S.A., entered, or withdrawn from warehouse, for consumption on or after July 5, 1984 and exported on or before September 30, 1984.

Because we revoked this order effective October 1, 1984, we will not *43761 instruct the Customs Service to collect a cash deposit of estimated countervailing duties.

This administrative review and notice are in accordance with section 751(a)(1) of the Tariff Act (19 U.S.C. 1675(a)(1) and s 355.10 of the Commerce Regulations (19 CFR 355.10).

Dated: November 28, 1986.

Gilbert B. Kaplan,

Deputy Assistant Secretary, Import Administration.

BILLING CODE 3510-DS-M