[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:
    <bullet> 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).
    <bullet> SAE/AISI grades of series 2300 and higher.
    <bullet> Ball bearing steels, as defined in the HTSUS.
    <bullet> Tool steels, as defined in the HTSUS.
    <bullet> Silico-manganese (as defined in the HTSUS) or silicon 
electrical steel with a silicon level exceeding 1.50 percent.
    <bullet> ASTM specifications A710 and A736.
    <bullet> USS Abrasion-resistant steels (USS AR 400, USS AR 500).
    <bullet> 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.

    <bullet> 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.

    <bullet> 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.

    <bullet> 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.

    <bullet> 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.
    <bullet> 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.
    <bullet> 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