NOTICES
DEPARTMENT OF COMMERCE
International Trade Administration
[C-428-817]
Certain Cut-to-Length Carbon Steel Plate From Germany;
Preliminary Results of
Countervailing Duty Administrative Reviews
Friday, September 8, 2000
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AGENCY: Import Administration, International Trade
Administration, Department of Commerce.
ACTION: Notice of preliminary results of countervailing duty
administrative reviews.
SUMMARY: The Department of Commerce (the Department) is
conducting administrative reviews of the countervailing duty
order on certain cut-to- length carbon steel plate from Germany for
the periods calendar year 1997 and calendar year 1998. For
information on the net subsidy for the reviewed companies, as well
as for all non-reviewed companies, please see the "Preliminary
Results of Review" section of this notice. If the final results remain
the same as these preliminary results of administrative review, we
will instruct the U.S. Customs Service (Customs) to assess
countervailing duties as detailed in the "Preliminary Results of
Review" section of this notice. Interested parties are invited to
comment on these preliminary results.
EFFECTIVE DATE: September 8, 2000.
FOR FURTHER INFORMATION CONTACT: Michael Grossman,
AD/CVD Enforcement, Office VI, Group II, Import Administration,
International Trade Administration, U.S. Department of
Commerce, 14th Street and Constitution Avenue, N.W., Washington,
D.C. 20230; telephone: (202) 482-3146 or (202) 482-2786.
SUPPLEMENTARY INFORMATION:
Background
On August 17, 1993, the Department published in the Federal
Register the countervailing duty order on certain cut-to-length
carbon steel plate from Germany. See Countervailing Duty
Orders and Amendment to Final Affirmative Countervailing Duty
Determinations: Certain Steel Products From Germany (58 FR
43765). On August 11, 1998, the Department published a notice of
"Opportunity to Request Administrative Review" (63 FR 42821) of
this countervailing duty order for the period covering calendar
year 1997. We received a timely request for a review and a request
that this review be deferred for a year under section 351.213(c) of
the Department's regulations. On October 29, 1998, the Department
deferred that administrative review for one year (63 FR 58009). On
August 11, 1999, the Department published a notice of "Opportunity
to Request Administrative Review" (64 FR 43649) of this
countervailing duty order for the period calendar year 1998. We
received a timely request for a review, and, on October 1, 1999, the
Department published a notice of initiation of administrative review
of the countervailing duty order on certain cut-to-length carbon
steel plate from Germany, covering the period January 1, 1998,
through December 31, 1998 (64 FR 53318).
In accordance with 19 CFR 351.213(b), these reviews cover only
those producers or exporters of the subject merchandise for which
reviews were specifically requested. Novosteel SA requested these
reviews, however, it is only an exporter. Novosteel SA stated that all
of the subject merchandise it exported is produced by Reiner Brach
GmbH and Co. KG. Therefore, questionnaire responses were required
from the producer. Accordingly, these reviews cover exporter
Novosteel SA and producer Reiner Brach GmbH and Co. KG. We
received timely allegations of additional subsidies, including
allegations of upstream subsidies. We initiated examinations of three
of these alleged subsidy programs and determined not to initiate
examinations of the alleged upstream subsidy programs. See
memorandum to Melissa G. Skinner, Director, Office of AD/CVD
Enforcement VI, from Team, entitled 1997 and 1998 Administrative
Reviews of the Countervailing Duty Order on Certain
Cut-to-Length Carbon Steel Plate from Germany: Memorandum
Regarding Affiliation, Cross-ownership, Upstream Subsidy
Allegations, and Other Subsidy Allegations, dated August 23, 2000.
(This memorandum is on file in public version form in the public file
room of room B-099 of the main Commerce building.) These reviews
cover 39 programs.
On April 11, 2000, we extended the period for completion of the
preliminary results pursuant to section 751(a)(3) of the Tariff Act of
1930, as amended (the Act). See Certain Cut-to-Length Carbon Steel
Plate From Germany: Extension of Time Limit for Preliminary
Results of Countervailing Duty Administrative Reviews (65 FR
19740). Therefore, the deadline for these preliminary results was
extended to no later than August 30, 2000. The deadline for the
final results of these reviews is no later than 120 days from the date
on which these preliminary results are published in the Federal
Register.
Applicable Statute
Unless otherwise indicated, all citations to the statute are references
to the provisions of the Act, as amended by the Uruguay Round
Agreements Act (URAA) effective January 1, 1995. The Department
is conducting these administrative reviews in accordance with
section 751(a) of the Act. All citations to the Department's
regulations reference 19 CFR Part 351, unless otherwise indicated.
Scope of the Review
The merchandise subject to these reviews includes 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), of
rectangular shape, 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-
rolled products in straight lengths, of rectangular shape, 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 HTSUS under item numbers
(7208.40.3030), (7208.40.3060), (7208.51.0030),
(7208.51.0045), (7208.51.0060), (7208.52.0000),
(7208.53.0000), (7208.90.0000), (7210.70.3000),
(7210.90.9000), (7211.13.0000), (7211.14.0030), (7211.14.0045),
(7211.90.0000), (7212.40.1000), (7212.40.5000),
(7212.50.0000). Included in these
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reviews are flat-rolled
products of non-rectangular cross-section where such cross-section
is achieved subsequent to the rolling process (i.e., products which
have been "worked after rolling")--for example, products which have
been beveled or rounded at the edges. Excluded from these reviews
is grade X-70 plate. Also excluded from these reviews is certain
carbon cut-to-length steel plate with a maximum thickness of 80 mm
in steel grades BS 7191, 355 EM, and 355 EMZ, as amended by Sable
Offshore Energy Project specification XB MOO Y 15 0001, types 1 and
2.
Analysis of Programs
Programs Preliminarily Determined To Be Not Used
We examined the following programs and preliminarily determine,
based on the questionnaire responses, that the producer and/or
exporter of the subject merchandise did not apply for or receive
benefits under these programs during the periods of review:
1. Capital Investment Grants.
2. Investment Premium Act.
3. Joint Scheme: Improvement of Regional Economic Structure--GA
Investment. Grants and Other GA Subsidies.
4. Ruhr District Action Program.
5. Aid for Closure of Steel Operations.
6. Joint Program: Upswing East.
7. Freight Programs under the Special Subsidies for Companies in the
Zonal Border Area.
8. Loan Guarantees under Treuhandanstalt Subsidies.
9. Long-term Loans from the Kreditanstalt fur Wiederaufbau (KfW).
10. Tax Programs under Special Subsidies for Companies in the Zonal
Border Area.
11. Structural Improvement Aids.
12. ECSC Article 54 Loans.
13. ECSC Article 54 Interest Rebates.
14. ECSC Redeployment Aid Under Article 56(2)(b).
15. ECSC Article 54 Loans.
16. ECSC Article 54 Interest Rebates.
17. Loans with Reduced Interest Rates under the Steel Restructuring
Plan.
18. Federal and State Government Loan Guarantees under the Steel
Restructuring Plan.
19. Special Ruhr Plan.
20. Zukunftsinitiative Montaregionen (ZIM).
21. Kreditanstalt fur Wiederaufbau (KfW) Investment Loans for
Eastern Germany.
22. Deutsche Ausglechsbank Investment Loans for Eastern
Germany.
23. European Recovery Program Loans for Eastern Germany.
24. Loan Guarantee Program Loans for Eastern Germany.
25. Peine-Salzgitter Profit Transfer Agreement and Other Operation
Loss Subsidies.
26. Elimination of Duisburg Harbor Tolls.
27. Export Credits at Preferential Rates.
28. Miscellaneous Tax Subsidies.
29. Loans from the Government of Nordrhein-Westphalen.
30. Tax Subsidies for Eastern Germany.
31. European Investment Bank Loans and Loan Guarantees.
32. New Community Instrument Loans.
33. European Regional Development Fund Aid.
34. Nordrhein-Westphalen's Air Pollution Control Program.
35. ECSC Article 54 Loan Guarantees.
36. ECSC Article 56 Conversion Loans.
Preliminary Results of Review
As noted above, we have initiated examinations of three programs as
a result of timely additional allegations of subsidy programs. These
alleged subsidy programs are:
1. European Social Funds Grants
2. Assistance Measures for the Companies within the Steel Industry
to Partially Compensate for Costs of the Social Plans
3. Social Aid for the Workers in the Coal and Steel Industries
Novosteel SA and Reiner Brach GmbH & Co. have stated in
questionnaire responses that Novosteel SA and Reiner Brach GmbH
and Co. KG have not received assistance by participating in any of
the 36 above-listed programs, or by participating in any other
government program. Nonetheless, we intend to issue
questionnaires regarding the additional alleged subsidy programs in
order to confirm non-use of these programs.
In accordance with 19 CFR 351.221(b)(4)(i), we calculated an
individual subsidy rate for the producer/exporter subject to these
administrative reviews. For the periods calendar year 1997 and
calendar year 1998, we preliminarily determine the net subsidy for
Novosteel SA/Reiner Brach GmbH and Co. KG to be 0.00 percent ad
valorem.
As provided for in the Act and 19 CFR 351.106(c)(1), any rate less
than 0.5 percent ad valorem in an administrative review is de
minimis. Accordingly, pursuant to 19 CFR 351.106(c)(2), if the final
results of these reviews remain the same as these preliminary results,
the Department intends to instruct Customs to liquidate, without
regard to countervailing duties, shipments of the subject
merchandise from Novosteel SA produced by Reiner Brach GmbH
and Co. KG, exported on or after January 1, 1997 through December
31, 1997 and January 1, 1998 through December 31, 1998. Also, the
cash deposits required for these companies will be zero.
Because the URAA replaced the general rule in favor of a
country-wide rate with a general rule in favor of individual rates for
investigated and reviewed companies, the procedures for
establishing countervailing duty rates, including those for
non-reviewed companies, are now essentially the same as those in
antidumping cases, except as provided for in section 777A(e)(2)(B)
of the Act. The requested review will normally cover only those
companies specifically named. See 19 CFR 351.213(b). Pursuant to 19
CFR 351.212(c), for all companies for which a review was not
requested, duties must be assessed at the cash deposit rate, and cash
deposits must continue to be collected, at the rate previously
ordered. As such, the countervailing duty cash deposit rate
applicable to a company can no longer change, except pursuant to a
request for a review of that company. See Federal-Mogul
Corporation and The Torrington Company v. United States, 822
F.Supp. 782 (CIT 1993) and Floral Trade Council v. United States,
822 F.Supp. 766 (CIT 1993) (interpreting 19 CFR 353.22(e), the prior
antidumping regulation on automatic assessment, which was
identical to 19 CFR 355.22(g)). Therefore, the cash deposit rates for
all companies except those covered by this review will be unchanged
by the results of this review.
We will instruct Customs to continue to collect cash deposits for
non-reviewed companies at the most recent company-specific or
country-wide rate applicable to the company. Accordingly, the cash
deposit rates that will be applied to non-reviewed companies
covered by this order will be the rate for that company established in
the most recently completed administrative proceeding conducted
under the URAA. If such a review has not been conducted, the rate
established in the most recently completed administrative
proceeding pursuant to the statutory provisions that were in effect
prior to the URAA amendments is applicable. See Final Affirmative
Countervailing Duty Determinations: Certain Steel Products from
Germany, 58 FR 37315 (July 9, 1993). These rates shall apply to all
non-reviewed companies until a review of a company assigned these
rates is requested. In addition, for the periods calendar year 1997
and calendar year 1998, the assessment rates
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applicable to
all non- reviewed companies covered by this order are the cash
deposit rates in effect at the time of entry.
Public Comment
Pursuant to 19 CFR 351.309, interested parties may submit written
comments in response to these preliminary results. Written
comments must be submitted separately for each of these two
reviews. Case briefs must be submitted within 30 days after the date
of publication of this notice, and rebuttal briefs, limited to arguments
raised in case briefs, must be submitted no later than five days after
the time limit for filing case briefs. Parties who submit argument in
this proceeding are requested to submit with the argument: (1) a
statement of the issue, and (2) a brief summary of the argument.
Parties submitting case and/or rebuttal briefs are requested to
provide the Department copies of the public version on a disk. Case
and rebuttal briefs must be served on interested parties in
accordance with 19 CFR 351.303(f). Also, pursuant to 19 CFR
351.310, within 30 days of the date of publication of this notice,
interested parties may request a public hearing on arguments to be
raised in the case and rebuttal briefs. Unless the Secretary specifies
otherwise, the hearing, if requested, will be held two days after the
date for submission of rebuttal briefs, that is, thirty-seven days after
the date of publication of these preliminary results.
Representatives of parties to the proceeding may request disclosure
of proprietary information under administrative protective order no
later than 10 days after the representative's client or employer
becomes a party to the proceeding, but in no event later than the
date the case briefs, under 19 CFR 351.309(c)(ii), are due. The
Department will publish the final results of these administrative
reviews, including the results of its analysis of issues raised in any
case or rebuttal brief or at a hearing.
These administrative reviews and notice are issued and published in
accordance with sections 751(a)(1) and 777(i)(1) of the Act (19
U.S.C. 1675(a)(1) and 19 U.S.C. 1677f(i)(1).
Dated: August 30, 2000.
Troy H. Cribb,
Acting Assistant Secretary for Import Administration.
[FR Doc. 00-23122 Filed 9-7-00; 8:45 am]
BILLING CODE 3510-DS-P
65 FR 54496-01, 2000 WL 1268889 (F.R.)
END OF DOCUMENT