Cold-Rolled Carbon Steel Flat-Rolled Products From Argentina; Final Results of Countervailing Duty Administrative Review

DEPARTMENT OF COMMERCE

International Trade Administration

[C-357-005]

Cold-Rolled Carbon Steel Flat-Rolled Products From Argentina;

Final Results of Countervailing Duty Administrative Review

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of final results of countervailing duty administrative

review.

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SUMMARY: On July 17, 1997, the Department of Commerce (the Department)

published in the Federal Register the preliminary results of its 1991

administrative review of the countervailing duty order on cold-rolled

carbon steel flat-rolled products (cold-rolled steel) from Argentina.

We have now completed this review and determine the total net subsidy

to be 0.00 percent ad valorem for Propulsora and 1.84 percent ad

valorem for all other companies. For further information on assessment

of countervailing duties, see the Final Results of Review section of

this notice.

EFFECTIVE DATE: October 10, 1997.

FOR FURTHER INFORMATION CONTACT: Richard Herring, Office of CVD/AD

Enforcement VI, Import Administration, International Trade

Administration, U.S. Department of Commerce, 14th Street and

Constitution Avenue, N.W., Washington, D.C. 20230; telephone: (202)

482-4149.

SUPPLEMENTARY INFORMATION:

Background

On July 17, 1997, the Department published in the Federal Register

(62 FR 38257) the preliminary results of its 1991 administrative review

of the countervailing duty order on cold-rolled steel from Argentina

(49 FR 18006; April 26, 1984). The Department has now completed this

administrative review in accordance with section 751 of the Tariff Act

of 1930, as amended (the Act).

This review involves two producer/exporters, Sociedad Mixta

Siderurgica (SOMISA) and Propulsora Siderurgica S.A.I.C. (Propulsora),

which accounted for all exports of the subject merchandise from

Argentina during the review period, and 20 programs. We invited

interested parties to comment on the preliminary results; however, no

comments were filed by any interested party.

On August 1, 1997, the Department published in the Federal Register

the final results of changed circumstances countervailing duty reviews

covering the orders on leather, wool, oil country tubular goods, and

cold-rolled steel from Argentina (see Leather From Argentina, Wool From

Argentina, Oil Country Tubular Goods From Argentina, and Carbon Steel

Cold-Rolled Flat Products From Argentina; Final Results of Changed

Circumstances Countervailing Duty Reviews (62 FR 41361)). In these

changed circumstances reviews, the Department determined that, based

upon the ruling of the U.S. Court of Appeals for the Federal Circuit in

Ceramica Regiomontana v. United States, 64 F.3d 1579, 1582 (Fed. Cir.

1995), it does not have the authority to assess countervailing duties

on entries of merchandise covered by this order occurring on or after

September 20, 1991. As a result, the effective date of the revocation

of this CVD order on cold-rolled flat products from Argentina is now

September 20, 1991. (This order had already been revoked, effective

January 1, 1995, pursuant to Section 753 of the Tariff Act of 1930, as

amended by the Uruguay Round Agreements Act (see Revocation of

Countervailing Duty Orders 60 FR 40568, August 9, 1995)). Therefore,

the results of this administrative review will only apply to entries of

the subject merchandise made between January 1, 1991 and September 19,

1991. (See Final Results of Review section of this notice).

Applicable Statute

The Department is conducting this administrative review in

accordance with section 751(a) of the Act. Unless otherwise indicated,

all citations to the statute and to the Department's regulations are in

reference to the provisions as they existed on December 31, 1994.

Scope of Review

Imports covered by this review include shipments of Argentine cold-

rolled carbon steel flat products, whether or not corrugated or

crimped; whether or not painted or varnished and whether or not

pickled; not cut, not pressed, and not stamped to non-rectangular

shape; not coated or plated with metal; over 12 inches in width and

under 0.1875 inches in thickness whether or not in coils; as currently

provided for under the following item numbers of the HTS: 7209.11.00,

7209.12.00, 7209.13.00, 7209.14.00, 7209.21.00, 7209.22.00, 7209.23.00,

7209.24.00, 7209.31.00, 7209.32.00, 7209.33.00, 7209.34.00, 7209.41.00,

7209.42.00, 7209.43.00, 7209.44.00, 7209.90.00, 7210.70.00, 7211.30.50,

7211.41.70, 7211.49.50, 7211.90.00, 7212.40.50. The HTS item numbers

are provided for convenience and Customs purposes. The written

description of the scope remains dispositive.

Calculation Methodology for Assessment and Cash Deposit Purposes

Pursuant to Ceramica Regiomontana, S.A. v. United States, 853 F.

Supp. 431 (CIT 1994), Commerce is required to calculate a country-wide

CVD rate, i.e., the all-other rate, by ``weight-averaging

[[Page 52975]]

the benefits received by all companies by their proportion of exports

to the United States, inclusive of zero rate firms and de minimis

firms.'' Therefore, we first calculated a subsidy rate for each company

subject to the administrative review. We then weight-averaged the rate

received by each company using as the weight its share of total

Argentine exports to the United States of subject merchandise. We then

summed the individual companies' weight-averaged rates to determine the

subsidy rate from all programs benefitting exports of subject

merchandise to the United States.

Since the country-wide rate calculated using this methodology was

above de minimis, as defined by 19 CFR Sec. 355.7 (1994), we proceeded

to the next step and examined the net subsidy rate calculated for each

company to determine whether individual company rates differed

significantly from the weighted-average country-wide rate, pursuant to

19 CFR Sec. 355.22(d)(3). Propulsora had a significantly different net

subsidy rate during the review period pursuant to 19 CFR

Sec. 355.22(d)(3). Therefore this company is treated separately for

assessment purposes. All other companies are assigned the country-wide

rate.

Analysis of Programs

I. Programs Conferring Subsidies

A. Programs Previously Determined To Confer Subsidies

1. Government Equity Infusions

In the preliminary results, we found that this program conferred

countervailable benefits on the subject merchandise. We did not receive

any comments on this program from the interested parties, and our

review of the record has not led us to change our findings from the

preliminary results. On this basis, the net subsidies for this program

are as follows:

------------------------------------------------------------------------

Rate

Manufacturer/exporter (percent)

------------------------------------------------------------------------

Propulsora................................................... 0.00

All Other Companies.......................................... 1.54

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2. Rebate of Indirect Taxes (Reembolso/Reintegro)

In the preliminary results, we found that there was no benefit from

this program during the review period. We did not receive any comments

on this program from the interested parties, and our review of the

record has not led us to change our findings from the preliminary

results.

B. New Program Found To Confer Subsidies

Regional Tariff Zones for Natural Gas

In the preliminary results, we found that this program conferred

countervailable benefits on the subject merchandise. We did not receive

any comments on this program from the interested parties, and our

review of the record has not led us to change our findings from the

preliminary results. On this basis, the net subsidies for this program

are as follows:

------------------------------------------------------------------------

Rate

Manufacturer/exporter (percent)

------------------------------------------------------------------------

Propulsora................................................... 0.00

All Other Companies.......................................... 0.30

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II. Program Found Not To Confer Subsidies

Preferential Natural Gas Tariffs Under Resolution 192/91

In the preliminary results, we found that this program did not

confer a subsidy on the subject merchandise. We did not receive any

comments on this program from the interested parties, and our review of

the record has not led us to change our findings from the preliminary

results.

III. Programs Found To Be Not Used

In the preliminary results, we found that the producers and/or

exporters of the subject merchandise did not apply for or receive

benefits under the following programs:

1. Preferential Electricity Tariff Rates

2. Privatization Assistance Under Law 23697 and Decree 1144/92

3. Medium- and Long-Term Loans

4. Capital Grants

5. Income and Capital Tax Exemptions

6. Government Trade Promotion Programs

7. Exemption from Stamp Taxes Under Decree 186/74

8. Incentives for Trade (Stamp Tax Exemption Under Decree 716)

9. Incentive for Export

10. Export Financing Under OPRAC 1, Circular RF-21

11. Pre-Financing of Exports Under Circular RF-153

12. Loan Guarantees

13. Post-Export Financing Under OPRAC 1-9

14. Debt Forgiveness

15. Tax Deduction Under Decree 173/85

We did not receive any comments on these programs from the

interested parties, and our review of the record has not led us to

change our findings from the preliminary results.

IV. Program Found Not to Exist

Tax Concessions for the Steel Industry

We did not receive any comments on this program from the interested

parties, and our review of the record has not led us to change our

findings from the preliminary results.

Final Results of the Review

As discussed above in the Background section, the Department has

determined that the effective date of the revocation of the

countervailing duty order on cold-rolled steel is September 20, 1991.

Therefore, the results of this administrative review will only apply to

entries of the subject merchandise made between January 1, 1991 and

September 19, 1991.

For the period of review, we determine the net subsidy to be 0.00

percent ad valorem for Propulsora and 1.84 percent ad valorem for all

other companies. In accordance with 19 CFR 355.7, any rate less than

0.5 percent ad valorem is de minimus. The Department will instruct the

U.S. Customs Service to liquidate, without regard to countervailing

duties, all entries of subject merchandise from Propulsora made between

January 1, 1991 and September 19, 1991. The Department will also

instruct the U.S. Customs Service to assess a countervailing duty of

1.84 percent ad valorem for entries of subject merchandise from all

other companies made between January 1, 1991 and September 19, 1991.

Separate instructions regarding entries made on or after September 20,

1991 have already been sent to Customs. Because this countervailing

duty order has been revoked, no further instructions will be sent to

Customs regarding cash deposits.

This notice serves as a reminder to parties subject to

administrative protective order (APO) of their responsibility

concerning the disposition of proprietary information disclosed under

APO in accordance with 19 CFR 355.34(d). Timely written notification of

return/destruction of APO materials or conversion to judicial

protective order is hereby requested. Failure to comply with the

regulations and the terms of an APO is a sanctionable violation.

This administrative review and notice are in accordance with

section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)).

Dated: October 3, 1997.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

[FR Doc. 97-27032 Filed 10-9-97; 8:45 am]

BILLING CODE 3510-DS-P