[Federal Register Volume 75, Number 232 (Friday, December 3, 2010)]
[Notices]
[Pages 75455-75457]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-30383]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-351-829]
Certain Hot-Rolled Flat-Rolled Carbon-Quality Steel Products From
Brazil: Final Results of Full Sunset Review of Countervailing Duty
Order
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On April 1, 2010, the Department of Commerce (the Department)
initiated the second sunset review of the countervailing duty (CVD)
order on certain hot-rolled flat-rolled carbon-quality steel products
(hot-rolled steel) 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,\1\ and adequate responses
from Usinas Siderurgicas de Minas Gerais and Companhia Siderurgica
Paulista (USIMINAS/COSIPA) \2\ and Companhia Siderurgica Nacional
(CSN), producers of hot-rolled steel, 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 finds that
revocation of the CVD order would likely lead to continuance or
recurrence of a countervailable subsidy.
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\1\ Bethlehem Steel Corporation, US Steel Group, a unit of USX
Corporation, Ispat Inland Steel, LTV Steel Company, Inc., National
Steel Corporation, California Steel Industries, Gallatin Steel
Company, Geneva Steel, Gulf States Steel Inc., IPSCO Steel Inc.,
Steel Dynamics, Weirton Steel Corporation, Independent Steelworkers
Union, and United Steelworkers of America were petitioners in the
original investigation. In 2002, International Steel Group was
formed; International Steel Group reported that it is the successor
to LTV Steel Company Inc., Weirton Steel Corporation, and Bethlehem
Steel Corporation, which are no longer in existence. In 2005,
International Steel Group and Ipsat Inland Steel merged with Mittal
Steel Company NV. In 2006, Arcelor and Mittal Steel Company NV
merged, and Mittal Steel's U.S. hot-rolled steel operations became a
part of ArcelorMittal USA. ArcelorMittal USA stated that it is a
U.S. producer of hot-rolled steel and an interested party pursuant
to section 771(9)(C) of the Act. See April 15, 2010 Notice of Intent
to Participate letter from ArcelorMittal USA to the Department.
Nucor Corporation is also a domestic producer of subject
merchandise. According to the domestic interested parties, IPSCO
Steel Inc. is now known as SSAB N.A.D.
\2\ The Department found that USIMINAS owned 49.79 percent of
COSIPA during the period of investigation. See Final Affirmative
Countervailing Duty Determination: Certain Hot-Rolled Flat-Rolled
Carbon-Quality Steel Products From Brazil, 64 FR 38741, 38744 (July
19, 1999). Accordingly, the Department treated these two producers
as a single company for purposes of the investigation in accordance
with section 771(33)(E) of the Act.
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DATES: Effective Date: December 3, 2010.
FOR FURTHER INFORMATION CONTACT: Milton Koch, AD/CVD Operations Office
6, Import Administration, International Trade Administration, U.S.
Department of Commerce, 14th Street and Constitution Avenue, NW.,
Washington, DC 20230; telephone: (202) 482-2584.
SUPPLEMENTARY INFORMATION:
Background
On April 1, 2010, the Department initiated the second sunset review
of the countervailing duty order on hot-rolled steel from Brazil in
accordance with section 751(c) of the Act. See Initiation of Five-Year
(``Sunset'') Review, 75 FR 16437 (April 1, 2010). The domestic
interested parties timely filed a notice of intent to participate. The
Department received substantive responses filed on behalf of the
domestic interested parties, and responses from USIMINAS/COSIPA and
CSN, producers of hot-rolled steel, and the GOB. Based on a finding
that the substantive responses were adequate, 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). See Memorandum from
Jacqueline Arrowsmith, Trade Compliance Analyst, to Barbara Tillman,
Director, AD/CVD Operations, Office 6 re: Adequacy Determination in
Countervailing Duty Sunset Review Of Hot-Rolled Carbon, Steel Flat
Products from Brazil--Second Countervailing Duty Review (2005 through
2009) (May 21, 2010).
On July 20, 2010, the Department issued the preliminary results of
the full sunset review, finding a likelihood of continuation or
recurrence of subsidization with a net countervailable subsidy likely
to prevail of zero percent for USIMINAS/COSIPA, CSN and all other
companies. See Certain Hot-Rolled Flat-Rolled Carbon-Quality Steel
Products from Brazil: Preliminary Results of Full Sunset Review, 75 FR
43931 (July 27, 2010). Interested parties were invited to comment on
the preliminary results. On September 15, 2010, the Department received
timely case briefs from domestic interested parties, USIMINAS/COSIPA,
and CSN. On September 20, 2010, the Department received rebuttal briefs
from the same parties.
Scope of the Order
The products covered by the 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 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 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.
[[Page 75456]]
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:
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C Mn P S Si Cr Cu Ni
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0.10-0.14% 0.90% Max 0.025% Max 0.005% Max 0.30-0.50% 0.50-0.70% 0.20-0.40% 0.20% Max
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Note: 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:
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C Mn P S Si Cr Cu Ni Mo
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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
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Note: 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:
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C Mn P S Si Cr Cu Ni V(wt.) Cb
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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
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Note: 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:
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C Mn P S Si Cr Cu Ni Nb Ca Al
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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% Max Treated 0.01-0.07%
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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/mm[sup2] and 640 N/mm[sup2]
and an elongation percentage >= 26 percent for thicknesses of 2 mm and
above, or (ii) a tensile strength between 590 N/mm[sup2] and 690 N/
mm[sup2] 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,
[[Page 75457]]
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 Susan H. Kuhbach, 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 7046 of the main Commerce building. In
addition, a complete version of the Decision Memorandum can be accessed
directly on the Internet at http://ia.ita.doc.gov/frn. The paper copy
and electronic version of the Decision Memorandum are identical in
content.
Final Results of Review
The Department 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.
This notice also serves as the only reminder to parties subject to
administrative protective orders (APO) of their responsibility
concerning the return or destruction of proprietary information
disclosed under APO in accordance with 19 CFR 351.305. Timely
notification of the return or destruction of APO materials or
conversion to judicial protective orders is hereby requested. Failure
to comply with the regulations and terms of an APO is a violation which
is subject to sanction.
We are issuing and publishing the results and notice in accordance
with sections 751(c), 752, and 777(i)(1) of the Act.
Dated: November 29, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-30383 Filed 12-2-10; 8:45 am]
BILLING CODE 3510-DS-P