[Federal Register: October 3, 2001 (Volume 66, Number 192)]
[Notices]
[Page 50410-50412]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-549-818]
Final Affirmative Countervailing Duty Determination: Certain Hot-
Rolled Carbon Steel Flat Products From Thailand
AGENCY: Import Administration, International Trade
Administration,Department of Commerce.
ACTION: Notice of final affirmative countervailing duty investigation.
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SUMMARY: On April 20, 2001, the Department of Commerce (the Department)
published in the Federal Register its preliminary affirmative
determination in the countervailing duty investigation of certain hot-
rolled carbon steel flat products from Thailand. Based on our analysis
of the questionnaire responses, verification, and comments submitted by
interested parties, we determine that subsidies are being conferred on
the manufacture, production and export of certain hot-rolled carbon
steel flat products in Thailand. The subsidy rates in this final
determination differ from those in the preliminary determination. The
revised final subsidy rates for the investigated producers/exporters
are listed below in the ``Suspension of Liquidation'' section of this
notice.
EFFECTIVE DATE: October 3, 2001.
FOR FURTHER INFORMATION CONTACT: Dana Mermelstein at (202) 482-1391,
Sean Carey at (202) 482-3964, Javier Barrientos at (202) 482-2243, or
Scott Lindsay at (202) 482-3782, Office of AD/CVD Enforcement VII,
Group III, Import Administration, International Trade Administration,
U.S. Department of Commerce, Room 7866, 14th Street and Constitution
Avenue, NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Applicable Statute and Regulations
Unless otherwise indicated, all citations to the statute are
references to the Tariff Act of 1930, as amended (the Act). In
addition, unless otherwise indicated, all citations to the Department's
regulations are to the regulations codified at 19 CFR part 351 (2000).
Background
On April 20, 2001, the Department published the results of its
preliminary determination in the investigation of certain hot-rolled
carbon steel flat products from Thailand. See Notice of Preliminary
Affirmative Countervailing Duty Determination and Alignment With Final
Antidumping Duty Determinations: Certain Hot-Rolled Carbon Steel Flat
Products From Thailand, 66 FR 20251 (April 20, 2001) (Preliminary
Determination). We invited interested parties to comment on the
preliminary determination.
In early May, we issued a supplemental questionnaire to the Royal
Thai Government (RTG) and Sahaviriya Steel Industries Public Company
Limited (SSI) (the respondents). On May 30, 2001, we received
questionnaire responses from SSI and the RTG. On June 13, 2001, the
Department published its notice, postponing the final determination in
this investigation until September 17, 2001, pursuant to the
postponement of the final determination in the companion antidumping
duty investigation of certain hot-rolled carbon steel flat products
from Thailand, with which this investigation is aligned. See Notice of
Postponement of Final Antidumping Duty Determination: Certain Hot-
Rolled Carbon Steel Flat Products from Thailand; and Notice of
Postponement of Final Countervailing Duty Determinations: Certain Hot-
Rolled Carbon Steel Flat Products from Thailand and South Africa, 66 FR
31888 (June 13, 2001).
On June 14, 2001, Bethlehem Steel Corporation, Gallatin Steel
Company, IPSCO Steel Inc., LTV Steel Company, Inc., National Steel
Corporation, Nucor Corporation, Steel Dynamics, Inc., U.S. Steel Group,
a unit of USX Corporation, Weirton Steel Corporation, Independent
Steelworkers Union, and the United Steelworkers of America (the
petitioners), submitted a new subsidy allegation in this investigation
pursuant to section 351.311 of the Department's regulations. See
section 775 of the Act and 19 CFR 351.311(b). Petitioners alleged that
benefits were provided to Thai hot-rolled steel producers under the
Ministry of Industry's (MOI's) Steel Industrial Restructuring Plan
(SIRP). On June 28, 2001, the Department decided to initiate on this
program. See Memorandum to the File Regarding MOI's SIP Allegation. We
subsequently issued supplemental questionnaires to the RTG and SSI. On
July 9, 2001, we received the RTG's and SSI's responses to these
supplemental questionnaires.
On July 9, 2001, we received comments from the petitioners
regarding the verification of the questionnaire responses. Verification
of the questionnaire responses submitted by the RTG and SSI took place
from July 16 through 27, 2001. Respondents and petitioners submitted
timely case and rebuttal briefs in this investigation. A public hearing
was held on September 6, 2001.
Although the deadline for this determination was originally
September 17, 2001, in light of the events of September 11, 2001 and
the subsequent closure of the Federal Government for reasons of
security, the timeframe for issuing this determination has been
extended by four days.
Scope of the Investigation
The merchandise subject to this investigation is certain hot-rolled
carbon steel flat products of a rectangular shape, of a width of 0.5
inch or greater, neither clad, plated, nor coated with metal and
whether or not painted, varnished, or coated with plastics or other
non-metallic substances, in coils (whether or not in successively
superimposed layers), regardless of thickness, and in straight lengths,
of a thickness of less than 4.75 mm and of a width measuring at least
10 times the thickness. Universal mill plate (i.e., flat-rolled
products rolled on four faces or in a closed box pass, of a width
exceeding 150 mm, but not exceeding 1250 mm, and of a thickness of not
less than 4 mm, not in coils and without patterns in relief) of a
thickness not less than 4.0 mm is not included within the scope of this
investigation.
Specifically included within the scope of this investigation are
vacuum degassed, fully stabilized (commonly referred to as
interstitial-free (IF)) steels, high strength low alloy (HSLA) steels,
and the substrate for motor lamination steels. IF steels are recognized
as low
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carbon steels with micro-alloying levels of elements such as titanium
or niobium (also commonly referred to as columbium), or both, added to
stabilize carbon and nitrogen elements. HSLA steels are recognized as
steels with micro-alloying levels of elements such as chromium, copper,
niobium, vanadium, and molybdenum. The substrate for motor lamination
steels contains micro-alloying levels of elements such as silicon and
aluminum.
Steel products to be included in the scope of this investigation,
regardless of definitions in the Harmonized Tariff Schedule of the
United States (HTSUS), are products in which: (i) Iron predominates, by
weight, over each of the other contained elements; (ii) the carbon
content is 2 percent or less, by weight; and (iii) none of the elements
listed below exceeds the quantity, by weight, respectively indicated:
1.80 percent of manganese, or
2.25 percent of silicon, or
1.00 percent of copper, or
0.50 percent of aluminum, or
1.25 percent of chromium, or
0.30 percent of cobalt, or
0.40 percent of lead, or
1.25 percent of nickel, or
0.30 percent of tungsten, or
0.10 percent of molybdenum, or
0.10 percent of niobium, or
0.15 percent of vanadium, or
0.15 percent of zirconium.
All products that meet the physical and chemical description
provided above are within the scope of this investigation unless
otherwise excluded. The following products, by way of example, are
outside or specifically excluded from the scope of this investigation:
Alloy hot-rolled steel products in which at least one of
the chemical elements exceeds those listed above (including, e.g.,
American Society for Testing and Materials (ASTM) specifications A543,
A387, A514, A517, A506).
Society of Automotive Engineers (SAE)/American Iron &
Steel Institute (AISI) grades of series 2300 and higher.
Ball bearings steels, as defined in the HTSUS.
Tool steels, as defined in the HTSUS.
Silico-manganese (as defined in the HTSUS) or silicon
electrical steel with a silicon level exceeding 2.25 percent.
ASTM specifications A710 and A736.
USS Abrasion-resistant steels (USS AR 400, USS AR 500).
All products (proprietary or otherwise) based on an alloy
ASTM specification (sample specifications: ASTM A506, A507).
Non-rectangular shapes, not in coils, which are the result
of having been processed by cutting or stamping and which have assumed
the character of articles or products classified outside chapter 72 of
the HTSUS.
The merchandise subject to this investigation is classified in the
HTSUS at subheadings: 7208.10.15.00, 7208.10.30.00, 7208.10.60.00,
7208.25.30.00, 7208.25.60.00, 7208.26.00.30, 7208.26.00.60,
7208.27.00.30, 7208.27.00.60, 7208.36.00.30, 7208.36.00.60,
7208.37.00.30, 7208.37.00.60, 7208.38.00.15, 7208.38.00.30,
7208.38.00.90, 7208.39.00.15, 7208.39.00.30, 7208.39.00.90,
7208.40.60.30, 7208.40.60.60, 7208.53.00.00, 7208.54.00.00,
7208.90.00.00, 7211.14.00.90, 7211.19.15.00, 7211.19.20.00,
7211.19.30.00, 7211.19.45.00, 7211.19.60.00, 7211.19.75.30,
7211.19.75.60, and 7211.19.75.90. Certain hot-rolled carbon steel flat
products covered by this investigation, including vacuum degassed fully
stabilized; high strength low alloy; and the substrate for motor
lamination steel may also enter under the following tariff numbers:
7225.11.00.00, 7225.19.00.00, 7225.30.30.50, 7225.30.70.00,
7225.40.70.00, 7225.99.00.90, 7226.11.10.00, 7226.11.90.30,
7226.11.90.60, 7226.19.10.00, 7226.19.90.00, 7226.91.50.00,
7226.91.70.00, 7226.91.80.00, and 7226.99.00.00. Subject merchandise
may also enter under 7210.70.30.00, 7210.90.90.00, 7211.14.00.30,
7212.40.10.00, 7212.40.50.00, and 7212.50.00.00. Although the HTSUS
subheadings are provided for convenience and U.S. Customs purposes, the
Department's written description of the merchandise under investigation
is dispositive.
Analysis of Programs and Analysis of Comments Received
The programs under investigation, as well as the issues raised in
the case and rebuttal briefs submitted in this countervailing duty
investigation are discussed and addressed in the Issues and Decision
Memorandum in the Final Affirmative Countervailing Duty Determination:
Certain Hot-Rolled Carbon Steel Flat Products from Thailand, from
Joseph A. Spetrini, Deputy Assistant Secretary for AD/CVD Enforcement
III, to Faryar Shirzad, Assistant Secretary for Import Administration,
dated September 19, 2001 (Decision Memorandum), which is hereby adopted
by this notice. Attached to this notice as an appendix is a list of the
programs under investigation, as well as a list of the issues which
parties have raised and to which we have responded in the Decision
Memorandum. Parties can find a complete discussion of the programs and
issues raised in this investigation, and the corresponding
recommendations in this public memorandum, which is on file in the
Department's Central Records Unit, in Room B-099. In addition, 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 a rate for the company under investigation. We have
determined that the total estimated countervailable subsidy rate for
SSI is 2.38 percent ad valorem. With respect to the ``all others''
rate, section 705(c)(5)(A)(i) of the Act requires that the ``all
others'' rate equal the weighted-average countervailable subsidy rates
established for exporters and producers individually investigated,
excluding any zero and de minimis countervailable subsidy rates.
Therefore, because SSI is the only producer/exporter, we are using its
rate as the ``all others'' rate.
------------------------------------------------------------------------
Producer/exporter Subsidy rate (Percent)
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Sahaviriya Steel Industries Public Company 2.38 Ad Valorem
Ltd.
All others................................ 2.38 Ad Valorem
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In accordance with our preliminary affirmative determination, we
instructed the U.S. Customs Service (Customs) to suspend liquidation of
all entries of certain hot-rolled carbon steel flat products from
Thailand, which were entered or withdrawn from warehouse for
consumption on or after April 20, 2001, the date of the publication of
our preliminary determination in the Federal Register, and to require a
cash deposit or bond for such entries of the merchandise in the amounts
indicated in the Preliminary Determination. In accordance with section
703(d)of the Act, we instructed Customs to discontinue the suspension
of liquidation for merchandise entered on or after August 18, 2001, but
to continue the suspension of liquidation of entries made between April
20, 2001 and August 17, 2001.
We will reinstate suspension of liquidation under section 706(a) of
the
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Act for all entries if the ITC issues a final affirmative injury
determination, and we will require a cash deposit of the 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.
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 and notice are issued and published in
accordance with sections 705(d) and 777(i) of the Act.
Dated: September 21, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.
Appendix I: Issues and Decision Memorandum
I. Subsidies Valuation Information
A. Allocation Period
B. Discount Rates
C. Calculation of Ad Valorem Subsidy Rate
II. Programs Determined to Confer Subsidies
A. Incentives Under the Investment Promotion Act
1. Duty Exemptions on Imports of Machinery Under IPA Section 28
2. Duty Exemptions on Imports of Raw and Essential Materials
Under IPA Section 30
3. Duty Exemptions on Imports of Raw and Essential Materials
Under IPA Section 36(1)
4. Additional Tax Deductions Under IPA Section 35
B. Provision of Electricity For Less Than Adequate Remuneration
III. Programs Determined Not to Confer Subsidies
A. SSI and PPC Debt Restructuring
B. VAT Exemptions under the Investment Promotion Act
IV. Programs Determined to be Not Used
A. Duty Exemptions to PPC under Investment Promotion Act Section
29
B. Corporate Income Tax Exemptions under IPA Section 31
C. Incentive Under Investment Promotion Act Sections 36(2) and
36(4)
D. Ministry of Industry's Steel Industrial Restructuring Plan
E. Loans from the Industrial Finance Corporation of Thailand and
the Thai Export-Import Bank
F. Other Loans and Loan Guarantees from Banks Owned, Controlled,
or Influenced by the RTG
G. Export Packing Credits
H. Pre-shipment Finance Facilities
I. Trust Receipt Financing for Raw Materials
J. Export Insurance Program
K. Tax Certificates for Export
L. Import Duty Exemptions for Industrial Estates
M. Export Processing Zone Incentives
V. Programs Determined Not to Exist
A. IPA Subsidies for Construction of SSI's On-Site Power Plant
B. Provision of Water Infrastructure for Less Than Adequate
Remuneration
VI. Analysis of Comments
Comment 1: Availability of IPA benefits to companies and
industries within Thailand
Comment 2: Tariff Rate for Duty Exemptions for Raw and Essential
Materials UnderIPA Sections 30 and 36
Comment 3: Countervailability of Section 36(1) Benefits
Comment 4: Countervailability of a Portion of Section 36(1)
Benefits
Comment 5: Benefits under IPA Section 35(3)
Comment 6: Countervailability of Section 28 Imports Identified
by Respondents as Recurring
Comment 7: Methodology for Calculating IPA Section 28 Benefits
Comment 8: The Time Value of Money and Countervailability of VAT
Exemptions under the Investment Promotion Act
Comment 9: IPA Benefits and Investments by SSI's Initial
Investors
Comment 10: Provision of Electricity as General Infrastructure
Comment 11: The Uniform National Tariff and Specificity
Comment 12: Provision of Electricity and Adequate Remuneration
Comment 13: PEA's Financial Performance and Adequacy of
Remuneration
Comment 14: Provision of Electricity and Adjustment of Benefit
Comment 15: CDRAC List of 351 and Specificity
Comment 16: Objective and Neutral Criteria and RTG Discretion
Comment 17: SSI's BOI Certificate and Debt Restructuring
Comment 18: Specificity and Facts Available
Comment 19: SSI Loans before Debt Restructuring and
Creditworthiness of PPC
Comment 20: Benefit from Restructured Loans from Private
Creditors
Comment 21: Benefit from Private Creditors' Loans and Equity
Infusions
Comment 22: RTG Financial Contribution and SSI's Debt
Restructuring
Comment 23: Financial Contribution: The Bangkok Approach and
CDRAC
Comment 24: Terms of SSI's and PPC's Debt Restructuring and
Financial Contribution from the RTG
VII. Total Ad Valorem Rate
VIII. Recommendation
[FR Doc. 01-24753 Filed 10-2-01; 8: 45 am]
BILLING CODE 3510-DS-P