Federal Register, Volume 75 Issue 143 (Tuesday, July 27, 2010)

[Federal Register Volume 75, Number 143 (Tuesday, July 27, 2010)]
[Notices]
[Pages 43931-43933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-18392]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-351-829]

Certain Hot-Rolled Flat-Rolled Carbon-Quality Steel Products from
Brazil: Preliminary Results of Full Sunset Review

AGENCY: Import Administration, International Trade Administration,
Department of Commerce.

SUMMARY: On April 1, 2010, the Department of Commerce (``the
Department'') initiated a sunset review of the countervailing duty
(``CVD'') order on certain hot-rolled flat-rolled carbon-quality steel
products from Brazil, pursuant to section 751(c) of the Tariff Act of
1930, as amended (``the Act''). On the basis of a notice of intent to
participate and an adequate substantive response filed on behalf of the
domestic interested parties and adequate responses from respondents and
the Government of Brazil (``GOB''), the Department determined to
conduct a full sunset review of this CVD order pursuant to section
751(c) of the Act and 19 CFR 351.218(e)(2). As a result of our
analysis, the Department preliminarily finds that revocation of the CVD
order would likely lead to continuance or recurrence of a
countervailable subsidy.

DATES: Effective Date: July 27, 2010.

FOR FURTHER INFORMATION CONTACT: Jacqueline Arrowsmith or Milton Koch,
AD/CVD Operations, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
5255 or (202) 482-2584, respectively.

SUPPLEMENTARY INFORMATION:

Background

On April 1, 2010 the Department initiated the second sunset review
of the countervailing duty order on hot-rolled carbon-quality steel
flat products from Brazil in accordance with section 751(c) of the Act.
See Initiation of Five-Year (``Sunset'') Review, 75 FR 16437 (April 1,
2010).
Within the deadline specified in 19 CFR 351.218(d)(1)(i), the
Department received notices of intent to participate on behalf of
United States Steel Corporation, Nucor Corporation, Gallatin Steel,
SSAB N.A.D., Steel Dynamics, Inc., ArcelorMittal USA Inc. (collectively
``domestic interested parties''). The domestic interested parties
claimed interested-party status as producers of subject merchandise in
the United States as defined by section 771(9)(C) of the Act. The
Department received substantive responses from the domestic interested
parties within the deadline specified in 19 CFR 351.218(d)(3)(i). The
Department also received substantive responses in a timely manner from
the following respondent interested parties: the GOB, Usinas
Siderugicas de Minas Gerais and Companhia Siderugica Paulista
(``USIMINAS/COSIPA'') and Companhia Siderugica Nacional (``CSN''). On
May 21, 2010, after analyzing the submissions and rebuttals from
interested parties and finding the substantive response adequate, the
Department determined to conduct a full sunset review. See Memorandum
from Jacqueline Arrowsmith, Trade Compliance Analyst, to Barbara
Tillman, Office 6 Director re: Adequacy Determination in Countervailing
Duty Sunset Review Of Hot-Rolled Carbon, Steel Flat Products from
Brazil--Second

[[Page 43932]]

Countervailing Duty Review (2005 through 2009) (May 21, 2010).

Scope of the Order

The products covered by the CVD order are certain hot-rolled flat-
rolled carbon-quality steel 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 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 1,250 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 the order.
Specifically included in the scope 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 carbon steels with
micro-alloying levels of elements such as titanium and/or niobium added
to stabilize carbon and nitrogen elements. HSLA steels are recognized
as steels with micro-alloying levels of elements such as chromium,
copper, niobium, titanium, 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 the order, regardless
of Harmonized Tariff Schedule of the United States (``HTSUS'')
definitions, are products in which: 1) iron predominates, by weight,
over each of the other contained elements; 2) the carbon content is 2
percent or less, by weight; and 3) none of the elements listed below
exceeds the quantity, by weight, respectively indicated:

1.80 percent of manganese, or
1.50 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
0.012 percent of boron, or
0.10 percent of molybdenum, or
0.10 percent of niobium, or
0.41 percent of titanium, 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 the order unless otherwise
excluded. The following products, by way of example, are outside and/or
specifically excluded from the scope of the order:
Alloy hot-rolled steel products in which at least one of
the chemical elements exceeds those listed above (including e.g., ASTM
specifications A543, A387, A514, A517, and A506).
SAE/AISI grades of series 2300 and higher.
Ball bearing 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 1.50 percent.
ASTM specifications A710 and A736.
USS Abrasion-resistant steels (USS AR 400, USS AR 500).
Hot-rolled steel coil which meets the following chemical,
physical and mechanical specifications:

Width = 44.80 inches maximum; Thickness = 0.063-0.198 inches; Yield
Strength = 50,000 ksi minimum; Tensile Strength = 70,000-88,000 psi.
Hot-rolled steel coil which meets the following chemical,
physical and mechanical specifications:

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
C Mn P S Si Cr Cu Ni Mo
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
0.10-0.16%...................... 0.70-0.90%........ 0.025% Max........ 0.006% Max........ 0.30-0.50%........ 0.50-0.70%........ 0.25% Max......... 0.20% Max......... 0.21% Max
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Width = 44.80 inches maximum; Thickness = 0.350 inches maximum;
Yield Strength = 80,000 ksi minimum; Tensile Strength = 105,000 psi
Aim.
Hot-rolled steel coil which meets the following chemical,
physical and mechanical specifications:

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
C Mn P S Si Cr Cu Ni V(wt.) Cb
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
0.10-0.14%.................... 1.30-1.80%...... 0.025% Max...... 0.005% Max...... 0.30-0.50%...... 0.50-0.70%...... 0.20-0.40%...... 0.20% Max....... 0.10 Max........ 0.08% Max
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
C Mn P S Si Cr Cu Ni Nb Ca Al
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
0.15% Max....................... 1.40% Max......... 0.025% Max........ 0.010% Max........ 0.50% Max......... 1.00% Max......... 0.50% Max......... 0.20% Max......... 0.005% Min........ Treated........... 0.01-0.07%
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 43933]]

Width = 39.37 inches; Thickness = 0.181 inches maximum; Yield
Strength = 70,000 psi minimum for thicknesses <= 0.148 inches and
65,000 psi minimum for thicknesses >0.148 inches; Tensile Strength =
80,000 psi minimum.
Hot-rolled dual phase steel, phase-hardened, primarily
with a ferritic-martensitic microstructure, contains 0.9 percent up to
and including 1.5 percent silicon by weight, further characterized by
either (i) tensile strength between 540 N/mm²; and 640 N/
mm² and an elongation percentage >= 26 percent for
thicknesses of 2 mm and above, or (ii) a tensile strength between 590
N/mm² and 690 N/mm² and an elongation percentage
>= 25 percent for thicknesses of 2mm and above.
Hot-rolled bearing quality steel, SAE grade 1050, in
coils, with an inclusion rating of 1.0 maximum per ASTM E 45, Method A,
with excellent surface quality and chemistry restrictions as follows:
0.012 percent maximum phosphorus, 0.015 percent maximum sulfur, and
0.20 percent maximum residuals including 0.15 percent maximum chromium.
Grade ASTM A570-50 hot-rolled steel sheet in coils or cut
lengths, width of 74 inches (nominal, within ASTM tolerances),
thickness of 11 gauge (0.119 inch nominal), mill edge and skin passed,
with a minimum copper content of 0.20%.
The merchandise subject to the order 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, 7210.70.30.00, 7210.90.90.00, 7211.14.00.30,
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,
7211.19.75.90, 7212.40.10.00, 7212.40.50.00, 7212.50.00.00.
Certain hot-rolled flat-rolled carbon-quality steel covered by the
order, 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. Although the HTSUS subheadings are provided for
convenience and Customs purposes, the written description of the
merchandise covered by the order is dispositive.

Analysis of Comments Received

All issues raised in this review are addressed in the Issues and
Decision Memorandum (``Decision Memorandum'') from Edward C. Yang,
Acting Deputy Assistant Secretary for Antidumping and Countervailing
Duty Operations, to Ronald K. Lorentzen, Deputy Assistant Secretary for
Import Administration, dated concurrently with this notice, which is
hereby adopted by this notice. Parties can find a complete discussion
of all issues raised in this review and the corresponding
recommendation in this public memorandum which is on file in the
Central Records Unit, Room B-099 of the main Commerce building. In
addition, a complete version of the Decision Memorandum can be accessed
directly on the Web at http://ia.ita.doc.gov/frn. The paper copy and
electronic version of the Decision Memorandum are identical in content.

Preliminary Results of Review

The Department preliminarily determines that revocation of the CVD
order would likely lead to continuation or recurrence of a
countervailable subsidy. The net countervailable subsidy likely to
prevail if the order were revoked is zero percent for USIMINAS/COSIPA,
CSN, and all other companies. Interested parties may submit case briefs
no later than 50 days after the date of publication of the preliminary
results of the full sunset review, in accordance with 19 CFR
351.309(c)(1)(i). Any interested party may request a hearing within 30
days of publication of this notice in accordance with 19 CFR
351.310(c). Rebuttal briefs, which must be limited to issues raised in
the case briefs, may be filed not later than five days after the time
limit for filing case briefs in accordance with 19 CFR 351.309(d). A
hearing, if requested, will be held two days after the date the
rebuttal briefs are due. The Department will issue a notice of final
results of this sunset review, which will include the results of its
analysis of issues raised in any such comments, no later than 240 days
after the date of publication of the notice of initiation (i.e., to
November 27, 2010 in accordance with 19 CFR 351.218(f)(3)). However,
November 27, 2010 falls on a Saturday and it is the Department's long-
standing practice to issue a determination the next business day when
the statutory deadline falls on a weekend, Federal holiday, or any
other day when the Department is closed. See Notice of Clarification:
Application of ``Next Business Day'' Rule for Administrative
Determination Deadlines Pursuant to the Tariff Act of 1930, As Amended,
70 FR 24533 (May 10, 2005). Accordingly, the deadline for the
completion of the final results is now November 29, 2010, the first
business day after the 240th day from initiation.
We are issuing and publishing the results and notice in accordance
with sections 751(c), 752, and 777(i)(1) of the Act.

Dated: July 20, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-18392 Filed 7-26-10; 8:45 am]
BILLING CODE 3510-DS-P