FINAL RESULTS OF REDETERMINATION PURSUANT TO COURT REMAND
Usinor Sacilor v. United States,
Consol. Ct. No. 93-04-00230-CVD
Slip Op. 97-70 and Order (CIT May 30, 1997)
I. Introduction The Department of Commerce (the Department) has prepared these final remand results pursuant to the remand from the U.S. Court of International Trade (the Court) in Usinor Sacilor v. United States, Slip Op. 97-70 and Order (May 30, 1997) (Usinor Sacilor III). Both the Department and the Court have described the procedural and factual history of this proceeding elsewhere, including in Usinor Sacilor III, the Court's May 30, 1997 decision ordering the present remand.
The Court's remand instructs the Department to adjust the
countervailing duty rate to reflect the Court's finding that
evidence of transfers from Usinor Sacilor to its non-French
production operations demonstrates that a portion of the
subsidies at issue were likely used to benefit Usinor Sacilor's
non-French production. Although the Department respectfully
disagrees with the Court's decision, it has followed the Court's
Under its tying methodology in the multinational production
context, when the Department finds that foreign production likely
has benefitted from a subsidy, its practice is to use the
respondent's total worldwide sales in the denominator of the
benefit calculation. See, Final Affirmative Countervailing Duty
Determination; Certain Steel Products from Austria, 58 FR 37217,
37231-32 (July 9, 1993)(General Issues Appendix). Thus, in
accordance with the Court's instructions to adjust the
countervailing duty rate to reflect Usinor Sacilor's transfers to
its non-French production operations, the Department has revised
its benefit calculation, using Usinor Sacilor's total worldwide
sales, excluding shipping expenses, as the denominator of the
benefit calculation for the programs subject to this remand.
These programs include Government of France (GOF) subsidies in
the form of conversions of debt instruments into equity or equity
infusions in 1981, 1986, and 1988, and GOF subsidies given in the
form of shareholders' advances in the years 1982 through 1986.
We received comments on the Department's draft
redetermination from parties on July 21, 1997. Usinor Sacilor
comments that the Department's remand redetermination is
consistent with the Court's instructions and the Department's
methodology. Inland Steel Industries, Inc. comments that while
it respectfully disagrees with the Court's remand decision, the
Department complied with the terms of the remand.
In accordance with the Court's instructions, the Department determines that the total estimated net subsidy for Usinor Sacilor is 12.51 percent ad valorem.
Richard W. Moreland
Acting Assistant Secretary
for Import Administration
Date: July 23, 1997