Certain Carbon Steel Products From Sweden: Final Results of Countervailing Duty Administrative Review

Summary

On July 12, 1999, the Department of Commerce (``the Department'') published in the Federal Register its preliminary results of administrative review of the countervailing duty order on certain carbon steel products (``Certain Steel Products'') from Sweden for the period January 1, 1997 through December 31, 1997. The Department has now completed this administrative review in accordance with section 751(a) of the Tariff Act of 1930, as amended (``the Act''). For information on the net subsidy for each reviewed company, and for all non-reviewed companies, please see the Final Results of Review section of this notice. We will instruct the U.S. Customs Service (``Customs'') to assess countervailing duties as detailed in the Final Results of Review section of this notice.

Full text

SUMMARY: On July 12, 1999, the Department of Commerce (``the 
Department'') published in the Federal Register its preliminary results 
of administrative review of the countervailing duty order on certain 
carbon steel products (``Certain Steel Products'') from Sweden for the 
period January 1, 1997 through December 31, 1997. The Department has 
now completed this administrative review in accordance with section 
751(a) of the Tariff Act of 1930, as amended (``the Act''). For 
information on the net subsidy for each reviewed company, and for all 
non-reviewed companies, please see the Final Results of Review section 
of this notice. We will instruct the U.S. Customs Service (``Customs'') 
to assess countervailing duties as detailed in the Final Results of 
Review section of this notice.

EFFECTIVE DATE: October 22, 1999.

FOR FURTHER INFORMATION CONTACT: Tipten Troidl or Gayle Longest, Office 
of AD/CVD Enforcement VI, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
2786.

SUPPLEMENTARY INFORMATION:

Background

    Pursuant to 19 CFR 351.213(b), this review covers only those 
producers or exporters of the subject merchandise for which a review 
was specifically requested. Accordingly, this review covers SSAB 
Svenskt Stal AB (``SSAB''). This review also covers the period January 
1, 1997 through December 31, 1997 and seven programs.
    We published the preliminary results on July 12, 1999 (64 FR 
37507). We invited interested parties to comment on the preliminary 
results. We received no comments from any of the parties.

Applicable Statute

    Unless otherwise indicated, all citations to the statute are 
references to the provisions of the Act as amended by the Uruguay Round Agreements 
Act (``URAA'') effective January 1, 1995. The Department is conducting 
this administrative review in accordance with section 751(a) of the 
Act. All citations to the Department's regulations reference 19 CFR 
Part 351 (April 1998) unless otherwise indicated. Because the request 
for this administrative review was filed before January 1, 1999, the 
Department's substantive countervailing duty regulations, which were 
published in the Federal Register on November 25, 1998 (63 FR 65348), 
do not govern this review.

Scope of the Review

    Imports covered by this review are shipments of certain carbon 
steel products from Sweden. These products include cold-rolled carbon 
steel, flat-rolled products, whether or not corrugated, or crimped: 
whether or not pickled, not cut, not pressed and not stamped to non-
rectangular shape; not coated or pleated with metal and not clad; over 
12 inches in width and of any thickness; whether or not in coils. 
During the review period, such merchandise was classifiable under the 
Harmonized Tariff Schedule (``HTS'') item numbers 7209.11.0000, 
7209.12.0000, 7209.13.0000, 7209.21.0000, 7209.22.0000, 7209.23.0000, 
7209.24.5000, 7209.31.0000, 7209.32.0000, 7209.33.0000, 7209.34.0000, 
7209.41.0000, 7209.43.0000, 7209.44.0000, 7209.90.0000, 7211.30.5000, 
7211.41.7000 and 7211.49.5000. The written description remains 
dispositive.

Subsidies Value Information

Privatization and Sale of Assets to Other Companies

    SSAB is the only Swedish company that produces and exports the 
subject merchandise. SSAB has sold several productive units and the 
company was partially privatized in 1987 and in 1989. In 1994, SSAB was 
completely privatized by the Government of Sweden. Under the 
Department's current practice, to the extent that a portion of the 
sales price paid for a privatized company can be reasonably attributed 
to prior subsidies, that portion of those subsidies will be 
extinguished. Accordingly, in these final results, the Department 
continues to apply its repayment methodology in the calculation of 
SSAB's net subsidy rate. No comments were filed regarding this issue.
    To calculate the benefit provided to SSAB in the POR, where 
appropriate, we multiplied the benefit calculated for 1997, adjusted 
for sales of productive units, by the ratio representing the amount of 
subsidies remaining with SSAB after privatization. We then divided the 
results by the company's total sales in 1997.

Allocation Methodology

    In the current review, there are no new subsidies. All of the non-
recurring grants under review were provided prior to the POR; 
allocation periods for these grants were established during prior 
segments of this proceeding. Therefore, for purposes of these final 
results, the Department is using the original allocation period 
assigned to each grant. See Certain Carbon Steel Products from Sweden; 
Final Results of Administrative Review, 66 FR 16549-16550 (April 7, 
1997) (``1994 Final Results'').

Analysis of Programs

    There were no comments submitted to the Department with respect to 
our preliminary results of review; therefore, based upon the responses 
to our questionnaire we determine the following:

I. Programs Conferring Subsidies

A. Programs Previously Determined to Confer Subsidies

1. Structural Loans
    In the preliminary results we found that this program conferred 
countervailable subsidies on the subject merchandise. Our review of the 
record has not led us to change any findings or calculations. 
Accordingly, the net subsidy for this program is 0.12 percent ad 
valorem, which remains unchanged from the preliminary results.
2. Forgiven Reconstruction Loans
    In the preliminary results we found that this program conferred 
countervailable subsidies on the subject merchandise. Our review of the 
record has not led us to change any findings or calculations. 
Accordingly, the net subsidy for this program is 0.59 percent ad 
valorem, which remains unchanged from the preliminary results.

II. Other Programs Examined

A. Research and Development Loans and Grants

    In the preliminary results, we found that the Swedish National 
Board for Industrial & Technical Development (``NUTEK'') program 
provides loans and grants for R & D purposes to Swedish industries. 
Under this program benefits from outstanding loans during the POR would 
result in a rate of less than 0.005 percent ad valorem which would have 
no impact on the countervailing duty rate. The grants provided did not 
exceed 0.5 percent of SSAB's total sales for the year in which they 
were received, and were expensed during the year of receipt See Final 
Affirmative Countervailing Duty Determination: Stainless Steel Sheet 
and Strip in Coils from Italy 64 FR 30624, 30631 (June 8, 1999). 
Therefore, it is not necessary to determine if the loans and the grants 
under NUTEK are specific. Our review of the record has not led us to 
change any findings or calculations. Therefore, our determination for 
these programs remains unchanged.

Final Results of Review

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated an individual subsidy rate for the producer/exporter subject 
to this administrative review. For the period January 1, 1997 through 
December 31, 1997, we determine the net subsidy for SSAB to be 0.72 
percent ad valorem.
    We will instruct Customs to assess countervailing duties on entries 
of subject merchandise from SSAB during the POR at 0.72 percent ad 
valorem. The Department will also instruct Customs to collect a cash 
deposit of estimated countervailing duties of 0.72 percent of the 
f.o.b. invoice price on all shipments of the subject merchandise from 
SSAB entered, or withdrawn from warehouse, for consumption on or after 
the date of publication of the final results of this review.
    Because the URAA replaced the general rule in favor of a country-
wide rate with a general rule in favor of individual rates for 
investigated and reviewed companies, the procedures for establishing 
countervailing duty rates, including those for non-reviewed companies, 
are now essentially the same as those in antidumping cases, except as 
provided for in section 777A(e)(2)(B) of the Act. The requested review 
will normally cover only those companies specifically named. See 19 CFR 
351.213(b). Pursuant to 19 CFR 351.212(c), for all companies for which 
a review was not requested, duties must be assessed at the cash deposit 
rate, and cash deposits must continue to be collected at the rate 
previously ordered. As such, the countervailing duty cash deposit rate 
applicable to a company cannot change, except pursuant to a request and 
subsequent review of that company. See Federal-Mogul Corporation and 
The Torrington Company v. United States, 822 F.Supp. 782 (CIT 1993) and 
Floral Trade Council v. United States, 822 F.Supp. 766 (CIT 1993). 
Therefore, the cash deposit rates for all companies except the firm covered by this review will be unchanged by the results of this review.
    We will instruct Customs to continue to collect cash deposits for 
non-reviewed companies at the most recent company-specific or country-
wide rate applicable to the company. Accordingly, the cash deposit 
rates that will be applied to non-reviewed companies covered by this 
order will be the rate for that company established in the most 
recently completed administrative proceeding conducted under the URAA. 
If such a review has not been conducted, the rate established in the 
most recently completed administrative proceeding pursuant to the 
statutory provisions that were in effect prior to the URAA amendments 
is applicable. See, Certain Carbon Steel Products from Sweden; Final 
Results of Countervailing Duty Administrative Review, 62 FR 16549 
(April 7, 1997). These rates shall apply to all non-reviewed companies 
until a review of a company assigned these rates is requested. In 
addition, for the period January 1, 1997 through December 31, 1997, the 
assessment rates applicable to all non-reviewed companies covered by 
this order are the cash deposit rates in effect at the time of entry.
    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 351.305(a)(3). 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 issued and published in 
accordance with section 751(a)(1) and 777(i)(1) of the Act (19 U.S.C. 
1675(a)(1) and 19 U.S.C. 1677f(i)(1)).

    Dated: October 18, 1999.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
[FR Doc. 99-27685 Filed 10-21-99; 8:45 am]
BILLING CODE 3510-DS-P  

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