97-a10

NOTICES

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

Friday, October 10, 1997

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

ACTION: Notice of final results of countervailing duty administrative review.

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

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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 §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 §355.22(d)(3). Propulsora had a significantly different net subsidy rate during the
review period pursuant to 19 CFR §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:

---------------------------------------
Manufacturer/exporter Rate (percent)
---------------------------------------
Propulsora .................. 0.00
All Other Companies ......... 1.54
---------------------------------------

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

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