96-11244. Certain Hot-Rolled Lead and Bismuth Carbon Steel Products From the United Kingdom; Preliminary Results of Countervailing Duty Administrative Review  

  • [Federal Register Volume 61, Number 88 (Monday, May 6, 1996)]
    [Notices]
    [Pages 20238-20242]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-11244]
    
    
    
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    DEPARTMENT OF COMMERCE
    [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.
    
    -----------------------------------------------------------------------
    
    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 from the United Kingdom. 
    We preliminarily determine the net subsidy to be 1.69 percent ad 
    valorem for United Engineering Steels Limited. The net subsidies for 
    non-reviewed companies are 20.33 percent ad valorem for Allied Steel 
    and Wire Limited (ASW), and 9.76 percent ad valorem for all other non-
    reviewed companies for the period January 1, 1994 through December 31, 
    1994. 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 indicated in the Preliminary Results of 
    Review section of this notice. Interested parties are invited to 
    comment on these preliminary results.
    
    EFFECTIVE DATE: May 6, 1996.
    
    FOR FURTHER INFORMATION CONTACT: Melanie Brown or Christopher Cassel, 
    Office of Countervailing Compliance, Import Administration, 
    International Trade Administration, U.S. Department of Commerce, 14th 
    Street and Constitution Avenue NW., 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 7, 
    1995, the Department published a notice of ``Opportunity to Request an 
    Administrative Review'' (60 FR 12540) of this countervailing duty 
    order. We received timely requests for review from United Engineering 
    Steels Limited, Inland Steel Bar Co. and United States/Kobe Steel Co., 
    interested parties to this administrative review. We initiated the 
    review, covering the period January 1, 1994 through December 31, 1994, 
    on April 14, 1995 (60 FR 19018).
        In accordance with section 355.22(a) of the Department's Interim 
    Regulations, this review covers only those producers or exporters for 
    which a review was specifically requested. See Antidumping and 
    Countervailing Duties: Interim Regulations; Request for Comments, 60 FR 
    25130 (May 11, 1995) (Interim Regulations). Accordingly, this review 
    covers United Engineering Steel Limited and British Steel plc. British 
    Steel plc. stated that it did not produce or export the subject 
    merchandise during the period of review (POR). Therefore,
    
    [[Page 20239]]
    
    British Steel plc. has not been assigned an individual company rate for 
    this administrative review.
        On November 2, 1995, we extended the period for completion of the 
    preliminary and final results pursuant to section 751(a)(3) of the 
    Tariff Act of 1930, as amended. See Extension of the Time Limit for 
    Certain Countervailing Duty Administrative Reviews, 60 FR 55699. As 
    explained in the memoranda for the record from the Assistant Secretary 
    for Import Administration, dated November 22, 1995, and January 11, 
    1996, all deadlines were further extended to take into account the 
    partial shutdowns of the Federal Government from November 15 through 
    November 21, 1995, and December 15, 1995, through January 6, 1996. 
    Therefore, the deadline for these preliminary results is no later than 
    April 30, 1996, and the deadline for the final results of this review 
    is no later than 180 days from the date on which these preliminary 
    results are published in the Federal Register.
    
    Applicable Statute and Regulations
    
        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. References to the 
    Countervailing Duties; Notice of Proposed Rulemaking and Request for 
    Public Comments, 54 FR 23366 (May 31, 1989) (Proposed Regulations), are 
    provided solely for further explanation of the Department's 
    countervailing duty practice. Although the Department has withdrawn the 
    particular rulemaking proceeding pursuant to which the Proposed 
    Regulations were issued, the subject matter of these regulations is 
    being considered in connection with an ongoing rulemaking proceeding 
    which, among other things, is intended to conform the Department's 
    regulations to the Uruguay Round Agreements Act. See Advance Notice of 
    Proposed Rulemaking and Request for Public Comments, 60 FR 80 (January 
    3, 1995).
    
    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 States under the following HTSUS subheadings: 
    7213.31.30.00, 60.00; 7213.39.00.30, 00.60, 00.90; 7214.40.00.10, 
    00.30, 00.50; 7214.50.00.10, 00.30, 00.50; 7214.60.00.10, 00.30, 00.50; 
    and 7228.30.80. Although the HTSUS subheadings are provided for 
    convenience and for Customs purposes, our written description of the 
    scope of this proceeding is dispositive.
    
    Analysis of Programs
    
    I. Programs Conferring Subsidies
    
    Allocation of Subsidies From BSC to UES
        UES is a joint venture company formed in 1986 by British Steel 
    Corporation (BSC) and Guest, Keen & Nettlefolds (GKN). In return for 
    shares in UES, BSC contributed a major portion of its Special Steels 
    Business and GKN contributed its Brymbo Steel Works and its forging 
    business. BSC was wholly owned by the Government of the United Kingdom 
    at the time the joint venture was formed; BSC was privatized in 1988 
    and now bears the name British Steel plc (BS plc).
        In the investigation and first administrative review of this order, 
    the Department found that BSC had received a number of subsidies prior 
    to the 1986 sale of its Special Steels Business to UES (each of these 
    subsidies to BSC is described in detail in Sections (1) through (4) 
    below). 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) and 
    Certain Hot-Rolled Lead and Bismuth Carbon Steel Products from the 
    United Kingdom; Final Results of Administrative Review, 60 FR 54841, 
    54842 (October 26, 1995) (Lead Bar II). The Department determined that 
    the sale did not alter the benefit from these previously bestowed 
    subsidies, and thus the portion of BSC's pre-1986 subsidies which was 
    attributable to the Special Steels Business productive unit transferred 
    to UES (see Lead Bar, 58 FR at 6240). The Department modified the Lead 
    Bar allocation methodology in the subsequent Remand Determination for 
    Certain Hot-Rolled Lead and Bismuth Carbon Steel Products from the 
    United Kingdom which was based on the privatization methodology set out 
    in the General Issues Appendix appended to the Final Countervailing 
    Duty Determination; Certain Steel Products from Austria, 58 FR 37217, 
    37225 (July 9, 1993) (Certain Steel). In Certain Steel, the Department 
    stated that it can no longer be assumed that the entire amount of 
    subsidies allocated to a certain productive unit follows it when it is 
    sold; rather, a portion of the sales price of the productive unit 
    represents the repayment of prior subsidies.
        To calculate a rate for the subsidies that were allocated from BSC 
    to UES, we first determined the subsidies attributable to BSC's Special 
    Steels Business by dividing the asset value of BSC's Special Steels 
    Business by the total asset value of BSC. We then applied this ratio to 
    the net present value, in the year of the spin-off, of the future 
    benefit streams from all of BSC's prior subsidies allocable to the POR. 
    The future benefit streams at the time of UES' creation reflect the 
    Department's allocation over time of prior subsidies to BSC in 
    accordance with the declining balance methodology (see Proposed 
    Regulations, Sec. 355.49), as well as the effect of prior spin-offs of 
    BSC productive units.
        We next estimated the portion of the purchase price which 
    represents repayment of prior subsidies by determining the portion of 
    BSC's net worth that was accounted for by subsidies. To do that, we 
    divided the face value of the allocable subsidies received by BSC in 
    each year from fiscal year 1978/79 through fiscal year 1984/85 (the 
    year prior to the creation of UES) by BSC's net worth in the same year. 
    We calculated a simple average of these ratios, which was then 
    multiplied by the purchase price of the productive unit. Thus, we 
    determined the amount of the purchase price which represents repayment 
    of prior subsidies. This amount was subtracted from the subsidies 
    attributed to BSC's Special Steels Business at the time of sale to 
    arrive at the amount of subsidies allocated to UES in 1986.
        Having determined the amount of BSC's previously bestowed subsidies 
    allocable to UES with the Special Steels Business in 1986, we then 
    determined the benefit provided to UES by these subsidies in 1994. To 
    do this, we divided the subsidies allocated to UES by the net present 
    value (in the year of the spin-off) of the future benefit
    
    [[Page 20240]]
    
    streams from subsidies received by BSC prior to the spin-off and 
    allocable to the POR. The resulting percentage, which represents the 
    portion of BSC's future benefit streams to be apportioned to UES, was 
    then multiplied by the total benefit amount from BSC's previously 
    bestowed subsidies that would have been allocated to BSC in 1994 absent 
    any spin-offs or privatization. This provides the benefits to UES in 
    1994. We divided these benefit amounts by the company's total sales in 
    1994, and preliminarily determine the net subsidy to be 1.69 percent ad 
    valorem for UES during 1994.
        In determining the subsidies previously bestowed to BSC that were 
    allocated to UES, we examined the following programs: equity infusions, 
    Regional Development Grants, a National Loan Fund loan cancellation, 
    and loans and interest rebates under ECSC Article 54.
    (1) Equity Infusions
        In every year from 1978/79 through 1985/86, BSC 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 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 under section 18(1) since it already owned 100 percent of the 
    company.
        In Lead Bar (58 FR at 6241), the Department found BSC 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 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 benefits, we have allocated the benefits over the 
    average useful life of renewable physical assets in the steel industry 
    (15 years) in accordance with our non-recurring grant methodology. See 
    Proposed Regulations, Sec. 355.49; see also Certain Steel, 58 FR at 
    37230.
        To calculate the benefit from these grants, we have used a discount 
    rate which includes a risk premium. See Proposed Regulations, 
    Sec. 355.44(b)(6)(iv). While uncreditworthiness was not specifically 
    alleged or investigated during the investigation on lead bar, in the 
    Final Countervailing Duty Determination; Certain Steel Products from 
    the United Kingdom, 58 FR 37393 (July 9, 1993) (UK Certain Steel), the 
    Department found that BSC was uncreditworthy from 1977/78 through 1985/
    86. No new information or evidence of changed circumstances was 
    presented in this review to warrant a reconsideration of that finding.
        After calculating the 1994 allocation of subsidies from BSC to UES, 
    as described above (Allocation of Subsidies From BSC to UES), we 
    divided the subsidies allocated to UES by the company's total sales of 
    all products domestically produced during 1994. On this basis, we 
    preliminarily determine the net subsidy for this program to be 1.49 
    percent ad valorem in 1994.
    (2) Regional Development Grant Program
        Regional development grants were paid to BSC 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, disbursed sometimes over several years.
        BSC 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.
        The Government of the United Kingdom claimed that the Regional 
    Development Grants provided to BSC should be treated as non-
    countervailable green light subsidies, in accordance with section 
    771(5)(B) of the Act and Article 8.2(b) of the Uruguay Round Agreement 
    on Subsidies and Countervailing Measures. To be considered a non-
    countervailable green light subsidy, the Department must determine that 
    the program under which the subsidies were bestowed satisfied all of 
    the criteria set forth in the Act. Therefore, we requested that the UK 
    Government submit information on the Regional Development Grant program 
    in light of these criteria. We determined that the information 
    submitted by the UK Government it its January 23, 1996 questionnaire 
    response was insufficient to conduct a full analysis of the program in 
    view of the green light criteria, and, therefore, sought additional and 
    clarifying information in our February 6, 1996, supplemental 
    questionnaire. However, on April 16, 1996, the UK Government submitted 
    a letter indicating that the authorities responsible for collecting the 
    information had concluded that the limited existing documentation was 
    inadequate to meet the Department's requests for information, and no 
    additional material was provided. Consequently, for the purpose of this 
    administrative review, we continue to find the Regional Development 
    Grant program countervailable and we will not make a determination as 
    to whether the Regional Development Grant program meets the green light 
    criteria set forth in section 771(5)(B) of the Act.
        In Lead Bar, we determined that, since 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 the average useful life of renewable physical assets in 
    the steel industry (15 years) in accordance with our non-recurring 
    grant methodology. See Certain Steel, 58 FR at 37227; see also Proposed 
    Regulations, Sec. 355.49. Since BSC was uncreditworthy from 1978/79 
    through 1985/86 (as discussed under Equity Infusions), we have used a 
    discount rate which includes a risk premium (see Proposed Regulations, 
    Sec. 355.44(b)(6)(iv)) to calculate the benefits from these grants. 
    After calculating the 1994 allocation of
    
    [[Page 20241]]
    
    subsidies from BSC to UES, described above (Allocation of Subsidies 
    From BSC to UES), we divided the subsidies allocated to UES by the 
    company's total sales in 1994 and calculated the subsidy for that year. 
    On this basis, we preliminarily determine the net subsidy for this 
    program to be 0.05 percent ad valorem for UES during 1994.
    (3) 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 accrued interest 
    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 the average useful life of renewable 
    physical assets in the steel industry (15 years) (see Proposed 
    Regulations, Sec. 355.49; see also Certain Steel, 58 FR at 37230); 
    because BSC was found to be uncreditworthy in 1981/82 (as discussed 
    under Equity Infusions), we have used a discount rate which includes a 
    risk premium (see Proposed Regulations, Sec. 355.44(b)(6)(iv)). After 
    calculating the 1994 allocation of subsidies from BSC to UES, described 
    above (Allocation of Subsidies From BSC to UES), we divided the benefit 
    allocated to UES by the company's total sales in 1994 and calculated 
    the ad valorem subsidy for that year. On this basis, we preliminarily 
    determine the net subsidy for this program to be 0.16 percent ad 
    valorem for UES during 1994.
    (4) European Coal and Steel Community (ECSC) Article 54 Loans/Interest 
    Rebates
        The European Coal and Steel Community's (ECSC) Article 54 
    Industrial Investment loans are direct, long-term loans from the 
    Commission of the European Communities to be used by the iron and steel 
    industry for purchasing new equipment or financing modernization. The 
    purpose of the program is to facilitate the borrowing process for 
    companies in the ECSC, some of which may not otherwise be able to 
    obtain loans. In UK Certain Steel, the Department determined that this 
    program is limited to the iron and steel industry, and thus is 
    countervailable to the extent that it provides loans on terms 
    inconsistent with commercial considerations. No new information or 
    evidence of changed circumstances was presented in this review to 
    warrant a reconsideration of that finding.
        In addition, interest rebates on Article 54 loans were granted to 
    steel companies during the restructuring and modernization of the 
    industry in the early 1980s. To qualify for the rebates, companies had 
    to meet certain criteria, such as being in the process of reducing 
    their steel production capacity or of implementing improvements in 
    processing that would yield energy savings and improved efficiency.
        The interest rebates, which were limited to a maximum of 3 percent 
    of the total investment over a period of five years, were funded from 
    the ECSC operational budget. While levies imposed on ECSC steel 
    companies have provided the revenues for the operational budget since 
    1985, contributions by Member States supplemented the budget before 
    that time. For this reason, the Department determined in UK Certain 
    Steel that a portion of those interest rebates was countervailable. 
    Following the same methodology in this review to determine the 
    countervailable portion, we calculated the ratio of the contributions 
    by Member States to the ECSC's total available funds for each year in 
    which the rebates were given, and then multiplied this ratio by the 
    rebate amount.
        BSC received one Article 54 loan in fiscal year 76/77 and two 
    Article 54 loans in fiscal year 77/78, all of which were provided in 
    U.S. dollars and are still outstanding. BSC also received interest 
    rebates during the first five years of the 76/77 loan. Because BSC 
    qualified for the interest rebate at the time the loan was granted, we 
    considered the rebate to constitute a reduction in the interest rate 
    charged rather than a grant.
        We considered the loan made to BSC during its creditworthy period 
    (i.e., in BSC's 76/77 fiscal year) separately from the two loans made 
    during its uncreditworthy period (i.e., in BSC's 77/78 fiscal year). 
    For the Article 54 loan provided when BSC was creditworthy, we used as 
    our benchmark the average U.S. long-term commercial rate for 1977. We 
    used this rate because we did not have information on U.S. dollar loans 
    borrowed in the United Kingdom in 1977. To calculate the benefit from 
    this loan we employed our long-term loan methodology. See Proposed 
    Regulations, Sec. 355.49(c)(1). We then compared the amount of interest 
    that would have been paid on the benchmark loan to the interest paid by 
    BSC (factoring in the interest rebate as discussed above) and found 
    that BSC's interest payments were higher than those it would have made 
    on the benchmark loan. Therefore, we find that this particular loan was 
    provided on terms consistent with commercial considerations.
        For the loans provided when BSC was uncreditworthy, we used as our 
    benchmark the highest U.S. lending rate available for long-term fixed 
    rate loans at the time the loan was granted, plus a risk premium equal 
    to 12 percent of the U.S. prime rate for 1977. See, Final Affirmative 
    Countervailing Duty Determination: New Steel Rail, Except Light Rail, 
    from Canada, 54 FR 31991 (August 3, 1989); see also, Proposed 
    Regulations, Sec. 355.44(b)(6)(iv). Again, we used a U.S. interest rate 
    because we did not have information on U.S. dollar loans borrowed in 
    the United Kingdom in 1977. We then compared the cost of the benchmark 
    financing to the cost of the financing that BSC received under this 
    program and found that the two Article 54 loans to BSC during its 
    uncreditworthy period were provided on terms inconsistent with 
    commercial considerations.
        To calculate the benefit from these loans we used our long-term 
    loan methodology. See Proposed Regulations, Sec. 355.49(c)(1). Using 
    this methodology and a benchmark discount rate which includes a risk 
    premium (see Proposed Regulations, Sec. 355.44(b)(6)(iv)), we 
    calculated the grant equivalent and allocated it over the life of the 
    loans. Then we calculated the 1994 allocation of subsidies from BSC to 
    UES, as described above (Allocation of Subsidies From BSC to UES). We 
    then divided the subsidies allocated to UES by the company's total 
    sales in that year to calculate the ad valorem subsidy. On this basis, 
    we preliminarily determine the net subsidy for this program to be 
    0.0003 percent ad valorem for UES during 1994.
    
    II. Programs Preliminarily Determined To Be Not Used
    
        We examined the following programs and preliminarily find that the 
    producers and/or exporters of the subject merchandise subject to this 
    review did not apply for or receive benefits under these programs 
    during the POR:
        (A) New Community Instrument Loans
        (B) ECSC Article 54 Loan Guarantees
        (C) NLF Loans
        (D) ECSC Conversion Loans
    
    [[Page 20242]]
    
        (E) European Regional Development Fund Aid
        (F) Article 56 Rebates
        (G) Regional Selective Assistance
        (H) ECSC Article 56(b)(2) Redeployment Aid
        (I) BRITE/EuRAM II
        (J) Inner Urban Areas Act of 1978
    
    Preliminary Results of Review
    
        In accordance with section 355.22(c)(4)(ii) of the Department's 
    Interim Regulations, we have calculated an individual subsidy rate for 
    each producer/exporter subject to this administrative review. For the 
    period January 1, 1994 through December 31, 1994, we preliminarily 
    determine the net subsidy for United Engineering Steels Limited to be 
    1.69 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 to assess countervailing duties for United 
    Engineering Steels Limited at 1.69 percent ad valorem. The Department 
    also intends to instruct the U.S. Customs Service to collect a cash 
    deposit of 1.69 percent of the f.o.b. invoice price on all shipments of 
    the subject merchandise from United Engineering Steels Limited, 
    entered, or withdrawn from warehouse, for consumption on or after the 
    date of publication of the final results of this review.
        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 countervailing duty cases are 
    now essentially the same as those in antidumping cases, except as 
    provided for in section 777A(e)(2)(B) of the Act. Requests for 
    administrative reviews must now specify the companies to be reviewed. 
    See Sec. 355.22(a) of the Interim Regulations. The requested review 
    will normally cover only those companies specifically named. Pursuant 
    to 19 C.F.R. Sec. 355.22(g), 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 C.F.R. 353.22(e), the antidumping regulation on 
    automatic assessment, which is identical to 19 C.F.R. 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 20.33 percent ad valorem 
    for ASW and 9.76 percent ad valorem for all other non-reviewed 
    companies, which are the rates calculated in the most recently 
    completed administrative proceeding. See Lead Bar II, 60 FR at 54841. 
    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, 1994 through December 31, 1994, 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
    
        Parties to the proceeding may request disclosure of the calculation 
    methodology and interested parties may request a hearing not later than 
    10 days after the date of publication of this notice. Interested 
    parties may submit written arguments in case briefs on these 
    preliminary results within 30 days of the date of publication. Rebuttal 
    briefs, limited to arguments raised in case briefs, may be submitted 
    seven days after the time limit for filing the case brief. 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. Any hearing, if requested, will be held seven days after the 
    scheduled date for submission of rebuttal briefs. Copies of case briefs 
    and rebuttal briefs must be served on interested parties in accordance 
    with 19 C.F.R. 355.38.
        Representatives of parties to the proceeding may request disclosure 
    of proprietary information under administrative protective order no 
    later than 10 days after the representative's client or employer 
    becomes a party to the proceeding, but in no event later than the date 
    the case briefs, under 19 C.F.R. 355.38, are due. 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 and notice are in accordance with 
    section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)).
    
        Dated: April 29, 1996.
    Paul L. Joffe,
    Deputy Assistant Secretary for Import Administration.
    [FR Doc. 96-11244 Filed 5-3-96; 8:45 am]
    BILLING CODE 3510-DS-P
    
    

Document Information

Effective Date:
5/6/1996
Published:
05/06/1996
Department:
Commerce Department
Entry Type:
Notice
Action:
Notice of preliminary results of Countervailing Duty Administrative Review.
Document Number:
96-11244
Dates:
May 6, 1996.
Pages:
20238-20242 (5 pages)
Docket Numbers:
C-412-811
PDF File:
96-11244.pdf