99-8626. Certain Hot-Rolled Lead and Bismuth Carbon Steel Products from the United Kingdom; Preliminary Results of Countervailing Duty Administrative Review  

  • [Federal Register Volume 64, Number 66 (Wednesday, April 7, 1999)]
    [Notices]
    [Pages 16920-16924]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-8626]
    
    
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    DEPARTMENT OF COMMERCE
    
    International Trade Administration
    [C-412-811]
    
    
    Certain Hot-Rolled Lead and Bismuth Carbon Steel Products from 
    the United Kingdom; Preliminary Results of Countervailing Duty 
    Administrative Review
    
    AGENCY: Import Administration, International Trade Administration, 
    Department of Commerce.
    
    ACTION: Notice of Preliminary Results of Countervailing Duty 
    Administrative Review.
    
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    SUMMARY: The Department of Commerce (``the Department'') is conducting 
    an administrative review of the countervailing duty order on certain 
    hot-rolled lead and bismuth carbon steel products (``lead bar'') from 
    the United Kingdom for the period January 1, 1997 through December 31, 
    1997. For information on the net subsidy for each reviewed company, as 
    well as for all non-reviewed companies, please see the Preliminary 
    Results of Review section of this notice. If the final results remain 
    the same as these preliminary results of administrative review, we will 
    instruct the U.S. Customs Service to assess countervailing duties as 
    detailed in the Preliminary Results of Review section of this notice. 
    Interested parties are invited to comment on these preliminary results. 
    (See Public Comment section of this notice.)
    
    EFFECTIVE DATE: April 7, 1999.
    
    FOR FURTHER INFORMATION CONTACT: Gayle Longest or Christopher Cassel, 
    Group II, Office 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) 482-2786.
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        On March 22, 1993, the Department published in the Federal Register 
    (58 FR 15327) the countervailing duty order on certain hot-rolled lead 
    and bismuth carbon steel products from the United Kingdom. On March 11, 
    1998, the Department published a notice of ``Opportunity to Request 
    Administrative Review'' (63 FR 11868) of this countervailing duty 
    order. We received a timely request for review, and we initiated the 
    review, covering the period January 1, 1997 through December 31, 1997, 
    on April 24, 1998, (63 FR 20378).
        In accordance with 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 British 
    Steel plc./British Steel Engineering Steels Ltd. (formerly United 
    Engineering Steels Limited). This review also covers nine programs.
        On December 7, 1998, we extended the period for completion of the 
    preliminary results pursuant to section 751(a)(3) of the Tariff Act of 
    1930, as amended. See Certain Hot-Rolled Lead and Bismuth Carbon Steel 
    Products From the United Kingdom: Postponement of Preliminary Results 
    of Countervailing Duty Administrative Review (63 FR 67459). The 
    deadline for the final results of this review is no later than 120 days 
    from the date on which these preliminary results are published in the 
    Federal Register.
    
    Applicable Statute
    
        Unless otherwise indicated, all citations to the statute are 
    references to the provisions of the Tariff Act of 1930, as amended by 
    the Uruguay Round Agreements Act (``URAA'') effective January 1, 1995 
    (``the Act''). 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 C.F.R. Part 351, (1998) unless 
    otherwise indicated.
    
    Scope of the Review
    
        Imports covered by this review are hot-rolled bars and rods of non-
    alloy or other alloy steel, whether or not descaled, containing by 
    weight 0.03 percent or more of lead or 0.05 percent or more of bismuth, 
    in coils or cut lengths, and in numerous shapes and sizes. Excluded 
    from the scope of this review are other alloy steels (as defined by the 
    Harmonized Tariff Schedule of the United States (HTSUS) Chapter 72, 
    note 1 (f)), except steels classified as other alloy steels by reason 
    of containing by weight 0.4 percent or more of lead or 0.1 percent or 
    more of bismuth, tellarium, or selenium. Also excluded are semi-
    finished steels and flat-rolled products. Most of the products covered 
    in this review are provided for under subheadings 7213.20.00.00 and 
    7214.30.00.00 of the HTSUS. Small quantities of these products may also 
    enter the United
    
    [[Page 16921]]
    
    States under the following HTSUS subheadings: 7213.31.30.00, 60.00; 
    7213.39.00.30, 00.60, 00.90; 7213.91.30.00, 45.00,60.00; 7213.99.00; 
    7214.40.00.10, 00.30, 00.50; 7214.50.00.10, 00.30, 00.50; 
    7214.60.00.10, 00.30, 00.50; 7214.91.00; 7214.99.00 and 7228.30.80.00, 
    80.50. The HTSUS subheadings are provided for convenience and for 
    Customs purposes. The written description of the scope of this 
    proceeding is dispositive.
    
    Duty Absorption
    
        On April 8, 1998, the Department received a request from 
    petitioners to conduct a duty absorption review to determine whether 
    British Steel Engineering Steels Ltd. absorbed countervailing duties. 
    The Department considered petitioners request and determined that it is 
    not appropriate to conduct a duty absorption inquiry in this 
    countervailing duty review because the rationale for conducting duty 
    absorption inquiries in antidumping duty proceedings are not relevant 
    in countervailing duty cases. For further discussion, see Memorandum to 
    Robert S. LaRussa from Holly Kuga, dated March 18, 1999, a public 
    document on file in the Central Records Unit, Room B-099 of the Main 
    Commerce Building.
    
    Subsidies Value Information
    
    Change in Ownership
    
    (I) Background
        On March 21, 1995, British Steel plc (``BS plc'') acquired all of 
    Guest, Keen & Nettlefolds' (GKN) shares in United Engineering Steels 
    (``UES''), the company which produced and exported the subject 
    merchandise to the United States during the original investigation. 
    Thus, UES became a wholly-owned subsidiary of BS plc and was renamed 
    British Steel Engineering Steels (``BSES'').
        Prior to this change in ownership, UES was a joint venture company 
    formed in 1986 by British Steel Corporation (``BSC''), a government-
    owned company, and GKN. In return for shares in UES, BSC contributed a 
    major portion of its Special Steels Business, the productive unit which 
    produced the subject merchandise. GKN contributed its Brymbo Steel 
    Works and its forging business to the joint venture. BSC was privatized 
    in 1988 and now bears the name BS plc.
        In the investigation of this case, the Department found that BSC 
    had received a number of nonrecurring subsidies prior to the 1986 
    transfer of its Special Steels Business to UES. See Final Affirmative 
    Countervailing Duty Determination: Certain Hot-Rolled Lead and Bismuth 
    Carbon Steel Products From the United Kingdom, 58 FR 6237, 6243 
    (January 27, 1993) (Lead Bar). Further, the Department determined that 
    the sale to UES did not alter these previously bestowed subsidies, and 
    thus the portion of BSC's pre-1986 subsidies attributable to its 
    Special Steels Business transferred to UES. Lead Bar, 58 FR at 6240.
        In the 1993 certain steel products investigations, the Department 
    modified the allocation methodology developed for Lead Bar. 
    Specifically, the Department stated that it would no longer assume that 
    all subsidies allocated to a productive unit follow it when it is sold. 
    Rather, when a productive unit is spun-off or acquired, a portion of 
    the sales price of the productive unit represents the reallocation of 
    prior subsidies. See the General Issues Appendix (GIA), appended to the 
    Final Countervailing Duty Determination; Certain Steel Products From 
    Austria, 58 FR 37217, 37269 (July 9, 1993) (Certain Steel). In a 
    subsequent Remand Determination, the Department aligned Lead Bar with 
    the methodology set forth in the ``Privatization'' and 
    ``Restructuring'' sections of the GIA. Certain Hot-Rolled Lead and 
    Bismuth Carbon Steel Products from the United Kingdom: Remand 
    Determination (October 12, 1993) (Remand).
        On March 21, 1995, BS plc acquired 100 percent of UES. In 
    determining how this change in ownership affects our attribution of 
    subsidies to the subject merchandise, we relied on section 771(5)(F) of 
    the Act, which states that a change in ownership does not require a 
    determination that past subsidies received by an enterprise are no 
    longer countervailable, even if the transaction is accomplished at 
    arm's length. The Statement of Administrative Action, H.R. Doc. No. 
    316, Vol. 1, 103d Cong., 2d Sess. (1994) (SAA), explains that the aim 
    of this provision is to prevent the extreme interpretation that the 
    arm's length sale of a firm automatically, and in all cases, 
    extinguishes any prior subsidies conferred. While the SAA indicates 
    that the Department retains the discretion to determine whether and to 
    what extent a change in ownership eliminates past subsidies, it also 
    indicates that this discretion must be exercised carefully by 
    considering the facts of each case. SAA at 928.
        In accordance with the Act and the SAA, we examined the facts of BS 
    plc's acquisition of GKN's 50 percent ownership stake in UES, and we 
    determined that the change in ownership does not render previously 
    bestowed subsidies attributable to UES no longer countervailable. 
    However, we also determined that a portion of the purchase price paid 
    for UES is attributable to its prior subsidies. Therefore, we reduced 
    the amount of the subsidies that ``traveled'' with UES to BS plc, 
    taking into account the allocation of subsidies to GKN, the former 
    joint-owner of UES. See Certain Hot-Rolled Lead and Bismuth Carbon 
    Steel Products From the United Kingdom; Final Results of Countervailing 
    Duty Administrative Review, 62 FR 53306 (October 14, 1997) (Lead Bar 95 
    Final Results) and Certain Hot-Rolled Lead and Bismuth Carbon Steel 
    Products From the United Kingdom; Preliminary Results of Countervailing 
    Duty Administrative Review, 62 FR 16555 (April 7, 1997) (Lead Bar 95 
    Preliminary Results). To calculate the amount of UES's subsidies that 
    passed through to BS plc as a result of the acquisition, we applied the 
    methodology described in the ``Restructuring'' section of the GIA. See 
    GIA, 58 FR at 37268-37269. This determination is in accordance with our 
    changes in ownership finding in Final Affirmative Countervailing Duty 
    Determination; Pasta From Italy, 61 FR 30288, 30289-30290 (June 14, 
    1996), and our finding in the 1994 administrative review of this case, 
    in which we determined that ``[t]he URAA is not inconsistent with and 
    does not overturn the Department's General Issues Appendix methodology 
    or its findings in the Lead Bar Remand Determination.'' Certain Hot-
    Rolled Lead and Bismuth Carbon Steel Products From the United Kingdom; 
    Final Results of Countervailing Duty Administrative Review, 61 FR 
    58377, 58379 (November 14, 1996).
        With the acquisition of UES, we also determined that BS plc's 
    remaining subsidies are attributable to the subject merchandise, now 
    produced by BS plc's wholly-owned subsidiary, BSES. Where the 
    Department finds that a company has received untied countervailable 
    subsidies, to determine the countervailing duty rate, the Department 
    attributes those subsidies to that company's total sales of 
    domestically produced merchandise, including the sales of 100-percent-
    owned domestic subsidiaries. If the subject merchandise is produced by 
    a subsidiary company, and the only subsidies in question are the untied 
    subsidies received by the parent company, the countervailing duty rate 
    calculation for the subject merchandise is the same as described above. 
    Similarly, if such a company purchases another company, as was the case 
    with
    
    [[Page 16922]]
    
    BS plc's purchase of UES, then the current benefit from the parent 
    company's allocable untied subsidies is attributed to total sales, 
    including the sales of the newly acquired company. See, e.g., GIA, 58 
    FR at 3762 (``the Department often treats the parent entity and its 
    subsidiaries as one when determining who ultimately benefits from a 
    subsidy''). Accordingly, in the Lead Bar 95 Final Results, we 
    determined that it is appropriate to collapse BSES with BS plc for 
    purposes of calculating the countervailing duty for the subject 
    merchandise. BSES, as a wholly-owned subsidiary of BS plc, continues to 
    benefit from the remaining benefit stream of BS plc's untied subsidies.
        In collapsing UES with BS plc, we also determined that UES's untied 
    subsidies ``rejoined'' BS plc's pool of subsidies with the company's 
    1995 acquisition. All of these subsidies were untied subsidies 
    originally bestowed upon BSC (BS plc). After the formation of UES in 
    1986, the subsidies that ``traveled'' with the Special Steels Business 
    were also untied, and were found to benefit UES as a whole. See Lead 
    Bar 95 Final Results; Lead Bar 95 Preliminary Results.
    (II) Calculation of Benefit
        To calculate the countervailing duty rate for the subject 
    merchandise in 1997, we first determined BS plc's benefits in 1997, 
    taking into account all spin-offs of productive units (including the 
    Special Steel Business) and BSC's full privatization in 1988. See Final 
    Affirmative Countervailing Duty Determination; Certain Steel Products 
    from the United Kingdom, 58 FR 37393 (July 9, 1993) (UK Certain Steel). 
    We then calculated the amount of UES's subsidies that ``rejoined'' BS 
    plc after the 1995 acquisition, taking into account the reallocation of 
    subsidies to GKN. See Lead Bar 95 Final Results; Lead Bar 95 
    Preliminary Results. As indicated above, in determining both these 
    amounts, we followed the methodology outlined in the GIA. After adding 
    BS plc's and UES's benefits for each program, we then divided that 
    amount by BS plc's total sales of merchandise produced in the United 
    Kingdom in 1997.
    
    Allocation Methodology
    
        In British Steel plc v. United States, 879 F. Supp. 1254 (CIT 1995) 
    (British Steel), the U.S. Court of International Trade (``the Court'') 
    ruled against the allocation period methodology for non-recurring 
    subsidies that the Department has employed for the past decade, a 
    methodology that was articulated in the General Issues Appendix (58 FR 
    37226). In accordance with the Court's decision on remand, the 
    Department determined that the most reasonable method of deriving the 
    allocation period for nonrecurring subsidies is a company-specific 
    average useful life (AUL) of non-renewable physical assets. For British 
    Steel, we determined this allocation period to be 18 years. This remand 
    determination was affirmed by the Court on June 4, 1996. British Steel, 
    929 F.Supp 426, 439 (CIT 1996).
        The Department's acquiescence to the CIT's decision in the Certain 
    Steel cases resulted in different allocation periods between the UK 
    Certain Steel and Lead Bar proceedings (18 years vs. 15 years). 
    Different allocation periods for the same subsidies in two proceedings 
    involving the same company generate significant inconsistencies. 
    Moreover, UES became a wholly-owned subsidiary of BS plc in 1995. In 
    the 1995 review of Lead Bar, in order to maintain a consistent 
    allocation period across the UK Certain Steel and Lead Bar proceedings, 
    as well as in the different segments of Lead Bar, we altered the 
    allocation methodology previously used to determine the allocation 
    period for non-recurring subsidies previously bestowed on BSC and 
    attributed to UES. In the 1995 review, we applied the company-specific 
    18-year allocation period to all non-recurring subsidies. See Lead Bar 
    95 Final Results. Based on our decision in the 1995 administrative 
    review of this order, we preliminarily determine that it is appropriate 
    in this review to continue to allocate all of BSC's non-recurring 
    subsidies over BS plc's company-specific average useful life of 
    renewable physical assets (i.e., 18 years).
    
    Analysis of Programs
    
    I. Programs Conferring Subsidies
    
    A. Equity Infusions
        In each year from 1978/79 through 1985/86, BSC/BS plc received 
    equity capital from the Secretary of State for Trade and Industry 
    pursuant to section 18(1) of the Iron and Steel Acts 1975, 1981, and 
    1982. According to section 18(1), the Secretary of State for the 
    Department of Trade and Industry may ``pay to the Corporation (BSC) 
    such funds as he sees fit.'' The Government of the United Kingdom's 
    equity investments in BSC/BS plc were made pursuant to an agreed 
    external financing limit which was based upon medium-term financial 
    projections. BSC's performance was monitored by the Government of the 
    United Kingdom on an ongoing basis and requests for capital were 
    examined on a case-by-case basis. The UK government did not receive any 
    additional ownership, such as stock or additional rights, in return for 
    the capital provided to BSC/BS plc under section 18(1) since it already 
    owned 100 percent of the company.
        In Lead Bar (58 FR at 6241), the Department found BSC/BS plc to be 
    unequityworthy from 78/79 through 1985/86, and thus determined that the 
    Government of the United Kingdom's equity infusions were inconsistent 
    with commercial considerations. Although, prior to the formation of 
    UES, BSC's section 18(1) equity capital was written off in two stages 
    ( 3,000 million in 1981 and  1,000 million in 
    1982) as part of a capital reconstruction of BSC, the Department 
    determined that BSC/BS plc benefitted from these equity infusions, 
    notwithstanding the subsequent write-off of equity capital. Therefore, 
    the Department countervailed the equity investments as grants given in 
    the years the equity capital was received. No new information or 
    evidence of changed circumstances was presented in this review to 
    warrant a reconsideration of that finding.
        Because the Department determined in Lead Bar that the infusions 
    are non-recurring, we have allocated the benefits over BS plc's 
    company-specific average useful life of renewable physical assets (18 
    years).
        Although uncreditworthiness was not specifically alleged or 
    investigated during the investigation on lead bar, in UK Certain Steel 
    the Department found that BSC/BS plc was uncreditworthy from 1977/78 
    through 1985/86. 58 FR at 37395. No new information or evidence of 
    changed circumstances was presented in this review to warrant a 
    reconsideration of that finding. Therefore, we have used a discount 
    rate which includes a risk premium to calculate the benefit from the 
    grants. See, e.g., Final Affirmative Countervailing Duty 
    Determinations: Certain Steel Products From Mexico, 58 FR 37352, 37354 
    (July 9, 1993) (Mexican Steel).
        To calculate the benefit to the subject merchandise from this 
    program, we first summed the benefit to BS plc from all infusions 
    allocated to 1997. Then, we determined the portion of that benefit 
    still remaining with BS plc after accounting for privatization and 
    spin-offs. To that we added the portion of UES's subsidies under this 
    program that ``rejoined'' BS plc with the acquisition. See the ``Change 
    in Ownership'' section of the notice. We then divided the result by BS 
    plc's total sales of merchandise produced in the United Kingdom in 
    1997. On this basis, we preliminarily determine the net subsidy for 
    this
    
    [[Page 16923]]
    
    program to be 4.07 percent ad valorem in 1997.
    B. Regional Development Grant Program
        Regional development grants were paid to BSC/BS plc under the 
    Industry Act of 1972 and the Industrial Development Act of 1982. In 
    order to qualify for assistance under these two Acts, an applicant had 
    to be engaged in manufacturing and located in an assisted area. 
    Assisted areas are older, industrial regions identified as having deep-
    seated, long-term problems such as high levels of unemployment, 
    migration, slow economic growth, derelict land, and obsolete factory 
    buildings. Regional development grants were given for the purchase of 
    specific assets. According to the Government of the United Kingdom, the 
    program involved one-time grants, sometimes disbursed over several 
    years.
        BSC/BS plc received regional development grants during the period 
    between fiscal years 1978/79 and 1985/86. The Department found this 
    program countervailable in Lead Bar (58 FR at 6242), because it is 
    limited to specific regions. No new information or evidence of changed 
    circumstances was presented in this review to warrant a reconsideration 
    of that finding.
        In Lead Bar, we determined that, because each grant required a 
    separate application, these grants are non-recurring. Accordingly, we 
    have calculated the benefits from this program by allocating the 
    benefits over BS plc's company-specific average useful life of 
    renewable physical assets (18 years). Since BSC/BS plc was 
    uncreditworthy from 1978/79 through 1985/86 (as discussed under the 
    ``Equity Infusions'' section, above), we have used a discount rate 
    which includes a risk premium (see Mexican Steel, 58 FR at 37354) to 
    calculate the benefits from these grants.
        To calculate the benefit from this program, we followed the 
    methodology described above in the section on ``Equity Infusions''. On 
    this basis, we preliminarily determine the net subsidy for this program 
    to be 0.14 percent ad valorem in 1997.
    C. National Loan Funds Loan Cancellation
        In conjunction with the 1981/1982 capital reconstruction of BSC, 
    section 3(1) of the Iron and Steel Act of 1981 extinguished certain 
    National Loans Fund (``NLF'') loans, as well as the interest accrued 
    thereon, at the end of BSC's 1980/81 fiscal year. Because this loan 
    cancellation was provided specifically to BSC, the Department 
    determined in Lead Bar (58 FR at 6242) that it provided a 
    countervailable benefit. No new information or evidence of changed 
    circumstances was presented in this review to warrant a reconsideration 
    of that finding.
        We calculated the benefit for this review using our standard 
    methodology for non-recurring grants. We allocated the benefits from 
    this loan cancellation over BS plc's company-specific average useful 
    life of renewable physical assets (18 years). Because BSC/BS plc was 
    found to be uncreditworthy in 1981/82 (as discussed under ``Equity 
    Infusions'' section, above), we have used a discount rate which 
    includes a risk premium. See Mexican Steel, 58 FR at 37354.
        To calculate the benefit from this program, we followed the 
    methodology described above in the section on ``Equity Infusions''. On 
    this basis, we preliminarily determine the net subsidy for this program 
    to be 0.43 percent ad valorem in 1997.
    
    II. Programs Preliminarily Determined To Be Not Used
    
        We examined the following programs and preliminarily determine that 
    the producers and/or exporters of the subject merchandise did not apply 
    for or receive benefits under these programs during the period of 
    review:
        A. New Community Instrument Loans
        B. NLF Loans.
        C. Regional Selective Loans.
        D. ECSC Article 56(b)(2) Redeployment Aid.
        E. Inner Urban Areas Act of 1978.
        F. LINK Initiative
    
    III. Other Programs Examined
    
    BRITE/EuRAM and Standards Measurement and Testing Program
        BS plc received assistance under these two European Union programs 
    to fund research and development. The European Union claimed that 
    assistance provided under both of these programs is non-countervailable 
    in accordance with Article 8.2(a) of the WTO Agreement on Subsidies and 
    Countervailing Measures and section 771(5B)(B) of the Act (which 
    provide that certain research and development subsidies are not 
    countervailable). We preliminarily determine that it is not necessary 
    to determine whether BRITE/EuRAM and the Standards Measurement and 
    Testing Program qualify for non-countervailable treatment because 
    combined, the assistance provided under both of these programs would 
    result in a rate of less than 0.005 percent ad valorem, and thus would 
    have no impact on the overall countervailing duty rate calculated for 
    this POR. For this same reason we have not conducted a specificity 
    analysis of these programs. See, e.g., Final Affirmative Countervailing 
    Duty Determination: Steel Wire Rod from Germany, 62 FR 54990, 54995-
    54996 (October 22, 1997); Certain Carbon Steel Products from Sweden; 
    Final Results of Countervailing Duty Administrative Review, 62 FR 
    16549, 16553 (April 7, 1997) and Certain Carbon Steel Products from 
    Sweden; Preliminary Results of Countervailing Duty Administrative 
    Review, 61 FR 64062, 64065 (December 3, 1996); Final Negative 
    Countervailing Duty Determination: Certain Laminated Hardwood Trailer 
    Flooring (``LHF'') From Canada, 62 FR 5201 (February 4, 1997); 
    Industrial Phosphoric Acid From Israel; Final Results of Countervailing 
    Duty Administrative Review, 61 FR 53351, 53352 (October 11, 1996) and 
    Industrial Phosphoric Acid From Israel; Preliminary Results of 
    Countervailing Duty Administrative Review, 61 FR 28845 (June 6, 1996).
    
    Preliminary Results of Review
    
        In accordance with 19 CFR 351.221(b)(4)(i), we have calculated an 
    individual subsidy rate for each producer/exporter subject to this 
    administrative review. As discussed in the ``Change in Ownership'' 
    section of the notice, above, we are treating British Steel plc and 
    British Steel Engineering Steels as one company for purposes of this 
    proceeding. For the period January 1, 1997 through December 31, 1997, 
    we preliminarily determine the net subsidy for British Steel plc/
    British Steel Engineering Steels (BS plc/BSES) to be 4.64 percent ad 
    valorem. If the final results of this review remain the same as these 
    preliminary results, the Department intends to instruct the U.S. 
    Customs Service (``Customs'') to assess countervailing duties for BS 
    plc/BSES at 4.64 percent ad valorem. The Department also intends to 
    instruct the Customs to collect a cash deposit of estimated 
    countervailing duties of 4.64 percent of the f.o.b. invoice price on 
    all shipments of the subject merchandise from BS plc/BSES, 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
    
    [[Page 16924]]
    
    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 can no longer change, except pursuant to a 
    request for a 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) 
    (interpreting 19 CFR 353.22(e), the antidumping regulation on automatic 
    assessment, which is identical to 19 CFR 355.22(g)). Therefore, the 
    cash deposit rates for all companies except those 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 are those 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 Hot-Rolled Lead and Bismuth Carbon Steel 
    Products from the United Kingdom; Final Results of Countervailing Duty 
    Administrative Review, 60 FR 54841 (October 26, 1995). 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.
    
    Public Comment
    
        Pursuant to 19 CFR 351.224(b), the Department will disclose to 
    parties to the proceeding any calculations performed in connection with 
    these preliminary results within five days after the date of 
    publication of this notice. Pursuant to 19 CFR 351.309, interested 
    parties may submit written comments in response to these preliminary 
    results. Case briefs must be submitted within 30 days after the date of 
    publication of this notice, and rebuttal briefs, limited to arguments 
    raised in case briefs, must be submitted no later than five days after 
    the time limit for filing case briefs. Parties who submit argument in 
    this proceeding are requested to submit with the argument: (1) a 
    statement of the issue, and (2) a brief summary of the argument. Case 
    and rebuttal briefs must be served on interested parties in accordance 
    with 19 CFR 351.303(f). Also, pursuant to 19 CFR 351.310, within 30 
    days of the date of publication of this notice, interested parties may 
    request a public hearing on arguments to be raised in the case and 
    rebuttal briefs. Unless the Secretary specifies otherwise, the hearing, 
    if requested, will be held two days after the date for submission of 
    rebuttal briefs. The Department will publish the final results of this 
    administrative review, including the results of its analysis of issues 
    raised in any case or rebuttal brief or at a hearing.
        This administrative review is issued and published in accordance 
    with sections 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: March 31, 1999.
    Robert S. LaRussa,
    Assistant Secretary for Import Administration.
    [FR Doc. 99-8626 Filed 4-6-99; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Effective Date:
4/7/1999
Published:
04/07/1999
Department:
International Trade Administration
Entry Type:
Notice
Action:
Notice of Preliminary Results of Countervailing Duty Administrative Review.
Document Number:
99-8626
Dates:
April 7, 1999.
Pages:
16920-16924 (5 pages)
Docket Numbers:
C-412-811
PDF File:
99-8626.pdf