[Federal Register Volume 63, Number 15 (Friday, January 23, 1998)]
[Notices]
[Pages 3539-3540]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-1571]


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DEPARTMENT OF COMMERCE

International Trade Administration
[C-427-805]


Certain Hot-Rolled Lead and Bismuth Carbon Steel Products From 
France; Notice of Court Decision and Suspension of Liquidation

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

ACTION: Notice.

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SUMMARY: On December 18, 1997, in Usinor Sacilor v. United States, 
Consol. Court No. 93-04-00230, a lawsuit challenging the Department of 
Commerce's final affirmative countervailing duty determination of 
certain hot-rolled lead and bismuth carbon steel products from France, 
the Court of International Trade affirmed the Department of Commerce's 
remand determination and entered a judgment order. As a result, the 
final net subsidy rate for all programs for Usinor Sacilor has 
decreased from 23.11% to 12.51% ad valorem, and the ``country-wide'' 
rate has decreased from 23.11% to 12.51% ad valorem.
    Consistent with the decision of the Court of Appeals for the 
Federal Circuit in Timken Co. v. United States, 893 F.2d 337 (Fed. Cir. 
1990), the Department of Commerce will direct the Customs Service to 
change the cash deposit rates being used in connection with the 
suspension of liquidation of the subject merchandise once there is a 
``conclusive'' decision in this case.

EFFECTIVE DATE: January 23, 1998.

FOR FURTHER INFORMATION CONTACT: Cindee Thirumulai, Office 1, Group 1, 
AD/CVD Enforcement, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Ave., N.W., Washington D.C. 20230, telephone: (202) 482-
4087.

SUPPLEMENTARY INFORMATION:

Background

    On January 27, 1993, the Department of Commerce (the ``Department'' 
or ``Commerce'') published notice of its final affirmative 
countervailing duty determination of certain hot-rolled lead and 
bismuth carbon steel products from France. Final Affirmative 
Countervailing Duty Determination; Certain Hot-rolled Lead and Bismuth 
Carbon Steel Products from France, 58 FR 6221 (Jan. 27, 1993). In that 
determination, the Department set forth its finding of a final net 
subsidy rate of 23.14% ad valorem for Usinor Sacilor and 23.14% ad 
valorem for the ``country-wide'' rate. On March 22, 1993, the 
Department published a countervailing duty order correcting ministerial 
errors and instructing the Customs Service to collect cash deposits at 
the rate of 23.11% ad valorem for Usinor Sacilor and 23.11% ad valorem 
for the ``country-wide'' rate, on entries of the subject merchandise 
entered or withdrawn from warehouse for consumption on or after that 
date. 58 FR 15326.
    Following publication of the Department's countervailing duty 
order, petitioners and respondents filed lawsuits with the Court of 
International Trade (``CIT'') challenging the Department's final 
determination.
    In its first decision in this case, Usinor Sacilor v. United 
States, 893 F. Supp. 1112 (CIT 1995), the CIT rejected the Department's 
reliance on IRS tables showing industry-specific average useful life of 
assets in determining an allocation period of 15 years. In a subsequent 
remand determination, the Department calculated a company-specific 
allocation period for Usinor Sacilor based on the average useful life 
of non-renewable physical assets, and the CIT affirmed it. Usinor 
Sacilor v. United States, 955 F. Supp. 1481 (1997).
    In a later decision, Usinor Sacilor v. United States, 966 F. Supp. 
1242 (1997), the CIT remanded the case to the Department on the issue 
of the appropriate sales denominator and instructed the Department to 
adjust its countervailing duty rates to reflect the fact that the 
subsidies at issue benefitted Usinor Sacilor's worldwide production 
rather than just Usinor Sacilor's domestic production. In its ensuing 
remand determination, dated July 28, 1997, the Department followed the 
CIT's instructions and adjusted the countervailing duty rates. On 
December 18, 1997, in Usinor Sacilor v. United States, Consol. Court 
No. 93-04-00230, Slip Op. 97-177, the CIT affirmed the Department's 
remand determination and entered a judgment order.
    As a result of the remands in this case, the net subsidy rate for 
all programs for Usinor Sacilor has decreased from 23.11% to 12.51% ad 
valorem, and the ``country-wide'' rate has decreased from 23.11% to 
12.51% ad valorem.

Suspension of Liquidation

    In its decision in Timken Co. v. United States, 893 F.2d 337 (Fed. 
Cir. 1990) (``Timken''), the Court of Appeals for the Federal Circuit 
(``CAFC'') held that the Department must publish notice of a decision 
of the CIT or the CAFC which is not ``in harmony'' with the

[[Page 3540]]

Department's determination. Publication of this notice fulfills that 
obligation. The CAFC also held that the Department must suspend 
liquidation of the subject merchandise until there is a ``conclusive'' 
decision in the case. Therefore, pursuant to Timken, Commerce must 
suspend liquidation pending the expiration of the period to appeal the 
CIT's December 18, 1997 ruling or, if that ruling is appealed, pending 
a final decision by the CAFC. However, because entries of the subject 
merchandise already are being suspended pursuant to the countervailing 
duty order in effect, the Department need not order the Customs Service 
to suspend liquidation. Further, consistent with Timken, the Department 
will order the Customs Service to change the relevant cash deposit 
rates in the event that the CIT's ruling is not appealed or the CAFC 
issues a final decision affirming the CIT's ruling.

    Dated: January 13, 1998.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
[FR Doc. 98-1571 Filed 1-22-98; 8:45 am]
BILLING CODE 3510-DS-P