[Federal Register Volume 64, Number 137 (Monday, July 19, 1999)]
[Notices]
[Pages 38797-38803]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18227]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-351-829]
Suspension of Countervailing Duty Investigation: Certain Hot-
Rolled Flat-Rolled Carbon-Quality Steel Products From Brazil
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
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SUMMARY: The Department of Commerce (the Department) has suspended the
countervailing duty investigation involving certain hot-rolled flat-
rolled carbon-quality steel products from Brazil. The basis for the
suspension is an agreement between the Department and the Government of
Brazil wherein the GOB has agreed not to provide any new or additional
export or import substitution subsidies on the subject merchandise and
has agreed to restrict the volume of direct or indirect exports to the
United States of hot-rolled flat-rolled carbon-quality steel products
from all Brazilian producers/exporters in order to eliminate completely
the injurious effects of exports of this merchandise to the United
States.
EFFECTIVE DATE: July 6, 1999.
FOR FURTHER INFORMATION CONTACT: Linda Ludwig at (202) 482-3833,
Antidumping and Countervailing Duty Enforcement Group III, Import
Administration, International Trade Administration, U.S. Department of
Commerce, 14th Street and Constitution Avenue, NW, Washington, DC
20230.
SUPPLEMENTARY INFORMATION:
Background
On October 15, 1998, the Department initiated a countervailing duty
investigation under section 702 of the Tariff Act of 1930 (the Act), as
amended, to determine whether manufacturers, producers, or exporters of
certain hot-rolled flat-rolled carbon-quality steel products from
Brazil receive subsidies (63 FR 56623). On November 25, 1998, the
International Trade Commission (ITC) published its affirmative
preliminary injury determination. On December 1, 1998 and January 22,
1999, we postponed the preliminary determination until no later than
February 12, 1999. See Hot-Rolled Flat-Rolled Carbon-Quality Steel
Products from Brazil: Postponement of Time Limit for Countervailing
Duty Investigation, 63 FR 67459 (December 7, 1998) and Hot-Rolled Flat-
Rolled Carbon-Quality Steel Products from Brazil: Postponement of Time
Limit for Countervailing Duty Investigation, 64 FR 4638 (January 29,
1999).
On February 12, 1999, the Department preliminary determined that
countervailable subsidies are being provided to Companhia Siderugica
Nacional (CSN), Usinas Siderugicas de Minas Gerais (USIMINAS) and
Companhia Siderurgica Paulista (COSIPA). See Preliminary Affirmative
Countervailing Duty Determination and Alignment of Final Countervailing
Duty Determination With Final Antidumping Duty Determination: Certain
Hot-Rolled Flat-Rolled Carbon-Quality Steel Products from Brazil, 64 FR
8313 (February 19, 1999). We conducted verification of the
questionnaire responses of the Government of Brazil (GOB), CSN,
USIMINAS and COSIPA from April 5 through April 16, 1999.
The Department and the GOB initialed a proposed agreement
suspending the investigation on June 6, 1999. Interested parties were
informed that the Department intended to finalize the Agreement on July
6, 1999, and were invited to provide written comments on the agreement.
We received comments from petitioners (Bethlehem Steel Corp., Ispat
Inland Inc., LTV Steel Company, Inc., National Steel Corp., U.S. Steel
Group (a Unit of USX Corp.), California Steel Industries, Gallatin
Steel Company, Geneva Steel, Gulf States Steel Inc., Ipsco Steel Inc.,
Steel Dynamics, Weirton Steel Corporation, and Independent Steelworkers
Union).
The Department and the GOB signed the final suspension agreement on
July 6, 1999.
Scope of Suspension Agreement
See Final Affirmative Countervailing Duty Determination: Certain
Hot-Rolled Flat-Rolled Carbon-Quality Steel Products from Brazil,
signed on July 6, 1999.
Suspension of Investigation
The Department consulted with the parties to the proceeding and has
considered their positions with respect to the proposed suspension
agreement. In accordance with section 704(c) of the Act, we have
determined that extraordinary circumstances are present in this case as
defined by section 704(c)(4) of the Act. (See July 6, 1999,
Extraordinary Circumstances Memorandum to Robert S. LaRussa.)
The suspension agreement provides that: (1) The GOB will not
provide any new or additional export or import substitution subsidies
on the subject merchandise; and (2) the GOB will restrict the volume of
direct or indirect exports to the United States of subject merchandise
from all Brazilian producers/exporters.
We have also determined that the suspension agreement can be
monitored effectively and is in the public interest, pursuant to
section 704(d) of the Act. (See July 6, 1999, Public Interest
Memorandum to Robert S. LaRussa.) We find, therefore, that the criteria
for suspension of the investigation pursuant to section 704(c) of the
Act have been met. The terms and conditions of the suspension
agreement, signed July 6, 1999, are set forth in Appendix I to this
notice.
The suspension of liquidation ordered in the final affirmative
determination in this case shall continue in effect, subject to section
704(h)(3) of the Act. Section 704(f)(2)(B) of the Act provides that the
Department may adjust the security required to reflect the effect of
the Agreement. Pursuant to this provision, the Department has found
that the Agreement eliminates completely the injurious effects of the
imports and, thus, the Department is adjusting the security required
from producers and/or exporters to zero. The security rates in effect
for imports from non-signatory producers/exporters remain as published
in our final determination.
On July 6, 1999, we received a request from petitioners requesting
that we continue the investigation. Pursuant to this request, we are
continuing the investigation in accordance with section 704(g) of the
Act and have notified the ITC of our determination. If the ITC's injury
determination is negative, the agreement will have no force or effect,
and the investigation will be terminated
[[Page 38798]]
(see section 704(f)(3)(A) of the Act). If the ITC's determination is
affirmative, the Department will not issue a countervailing duty order
as long as the suspension agreement remains in force (see section
704(f)(3)(B) of the Act).
This notice is published pursuant to section 704(f)(1)(A) of the
Act.
Dated: July 6, 1999.
Bernard T. Carreau,
Acting Assistant Secretary for Import Administration.
Appendix I: Agreement Suspending the Countervailing Duty
Investigation on Hot-Rolled Flat-Rolled Carbon-Quality Steel From
Brazil
The U.S. Department of Commerce (the ``DOC'') enters into this
countervailing duty suspension agreement (``the Agreement'')
1 with the Government of Brazil (the ``GOB'') through the
Ministry of Foreign Relations. Pursuant to this suspension agreement,
the GOB will restrict exports to the United Sates of certain hot-rolled
flat-rolled carbon-quality steel products (hereinafter called Hot-
Rolled Steel) from all Brazilian producers/exporters, subject to the
terms and conditions set forth below.
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\1\ Pursuant to Section 704(b) and (c) of the Tariff Act of
1930, as amended (19 U.S.C. 1671c(b) & (c)) (the ``Act''), and
Section 208 of part 351 of Title 19 of the Code of Federal
Regulations (the ``Regulations'').
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I. Definitions
For purposes of this Agreement, the following definitions apply:
A. Date of Export--of Hot-Rolled Steel into the United States shall
be the date on which the GOB's export license issuing authority issued
the Export License.
B. Effective Date--means date on which this Agreement and the
notice of suspension of investigation are published in the Federal
Register.
C. Export License--is the document issued by the GOB's export
license issuing authority that serves as both an export limit
certificate and a certificate of origin.
D. Export and Import Substitution Subsidies--include those
subsidies that have been determined to be export or import substitution
subsidies in the preliminary determination in the countervailing duty
investigation underlying this agreement (unless the investigation is
continued and a contrary decision is reached in the final
determination), in any final U.S. countervailing duty investigation of
a Brazil product, or in any final review of a Brazil product under
section 751 of the Act, and include subsidies which may apply to other
products or exports to other destinations to the extent that such
subsidies cannot be segregated as applying solely to such other
products or exports.
D. Hot-Rolled Steel means the certain hot-rolled, flat-rolled,
carbon quality steel products from Brazil described in Appendix II and
sometimes referred to as the ``subject merchandise'' of the suspended
investigation.
E. Indirect Exports means exports of Hot-Rolled Steel from Brazil
to the United States through one or more third countries, whether or
not such exports are further processed, provided that the further
processing does not result in a substantial transformation or a change
in the country of origin.
F. Party to the Proceeding means any producer, exporter, or
importer of Hot-Rolled Steel, union of workers engaged in the
production of Hot-Rolled Steel, associations of such parties, or the
government of any country from which such merchandise is exported, that
actively participated in the countervailing duty investigation, through
written submission of factual information or written argument, as
provided for in section 771(9) of the Act.
G. Export Limit Period means one of the following periods:
H. Initial Export Limit Period--The Initial Export Limit Period
shall begin on October 1, 1999, and end on September 30, 2000. The
Subsequent Export Limit Periods shall consist of each subsequent year
period from October 1 through the following September 30.
I. United States means the customs territory of the United States
of America (the 50 States, the District of Columbia and Puerto Rico)
and foreign trade zones located within the territory of the United
States.
J. Violation means noncompliance with the terms of this Agreement,
whether through an act or omission, except for noncompliance that is
inconsequential, inadvertent, or does not substantially frustrate the
purposes of this Agreement.
II. Suspension of Investigation
On the Effective Date, the DOC will suspend its countervailing duty
investigation of Hot-Rolled Steel from Brazil initiated on October 15,
1998 (63FR56607, published October 22, 1998), in accordance with
Section 704 of the Act and Section 208 of the Regulations.
III. Non-provision of Export Subsidies
A. The GOB will not bestow any Export Subsidies or Import
Substitution Subsidies upon the subject merchandise.
B. The GOB recognizes that the provision of export or import
substitution subsidies on the production or shipment of Hot-Rolled
Steel exported directly or indirectly from Brazil to the United States
may result in termination of this Agreement and resumption of the
investigation pursuant to the provisions of section 704(i) of the Act.
C. The GOB shall notify the DOC in writing of any new benefit which
is, or which the GOB has reason to know would be, an export or import
substitution subsidy on shipments of Hot-Rolled Steel exported,
directly or indirectly, from Brazil to the United States, including
subsidies which may apply to both the subject merchandise and other
products or exports to other destinations, to the extent such benefits
cannot be segregated as applying solely to such other products or
exports.
IV. Export Limits
A. The quota level in metric tons (MT) for each of the periods
shall be as follows:
Effective Date through September 30, 1999: 0 MT
October 1, 1999 through September 30, 2000: 295,000 MT
October 1, 2000 through September 30, 2001: 295,000 MT
October 1, 2001 through September 30, 2002: 295,000 MT
October 1, 2002 through September 30, 2003: 295,000 MT
October 1, 2003 through September 30, 2004: 295,000 MT
B. No Hot-Rolled Steel covered by this Agreement, whether exported
directly or indirectly from Brazil, shall be entered into the United
States unless, when cumulated with all prior entries of Hot-Rolled
Steel exported from Brazil during each yearly Export Limit Period in
which that Hot-Rolled Steel was exported, it does not exceed the export
limits set forth in the previous paragraph.
C. When Hot-Rolled Steel is imported into the United States and is
subsequently re-exported, or re-packaged and re-exported, or further
processed (but still covered by this Agreement) and re-exported, the
amount re-exported shall be deducted from the amount of exports that
have been counted against the export limit for the Export Limit Period
in which the re-export takes place. The deduction will be applied only
after the DOC has received, and has had the opportunity to verify,
evidence demonstrating the original importation, any repackaging or
[[Page 38799]]
further processing, and subsequent exportation.
D. The GOB's export license issuing authority will not issue export
licenses authorizing the exportation to the United States of Hot-Rolled
Steel covered by this Agreement in any half of any Export Limit Period
that exceeds 60 percent of the export limit for that Export Limit
Period.
E. Notwithstanding any other provision of this Agreement, up to 15
percent of the export limit for any Export Limit Period may be carried
over to the Subsequent Export Limit Period and up to 15 percent of the
export limit for any Export Limit Period may be carried back to the
last 90 days of the previous Export Limit Period. Any carried over or
carried back allowance shall be counted against the export limit for
the subsequent or previous Export Limit Period, respectively.
V. Implementation
A. The United States shall require presentation of an original
stamped Export License as a condition for entry into the United States
of Hot-Rolled Steel covered by this Agreement, except where there are
multiple shipments under a single license. For multiple shipments at
multiple ports, the original license shall be presented at each port
and deductions made upon that original license for individual entries
at each Port. For multiple entries at one port, the original license
will be presented and deductions made for the first entry drawn from
that license. Subsequent entries at that port can be made from
certified copies of the original which reflect all of the deductions
made from the original license. The United States will prohibit the
entry of any Hot-Rolled Steel from Brazil not accompanied by an
original stamped Export License, except as provided herein.1
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\1\ The validity of an Export License will not be affected by a
subsequent change of an HTS number.
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B. Export Licenses must contain, for each Hot-Rolled Steel product
covered by the license, the exact product description, applicable
reference price, the quantity in metric tons, and dimensions (gauge,
width, and, in the case of coils, length, if appropriate). If
necessary, additional information may be included on the Export License
or, if necessary, a separate page attached to the Export License. DOC
will deduct the quantity listed on each Export License from the export
limit for the Export Limit Period in which the Date of Export falls.
However, if the bills of lading for all of the shipments under an
Export License establish that the actual imports into the United States
under that license were less than the total volume listed on the
license, DOC will reflect the actual amount as having been deducted
from the volume listed on the export license, but, notwithstanding the
carry-over and carry-back limitations in section IV.D., will authorize
the export license issue a new Export License in the same or Subsequent
Export Licensing Period authorizing additional exports equal in volume
to the volume of the undershipment. Exports under such additional
licenses will be counted against the export limit for the Export Limit
Period containing the Date of Export of the undershipment.
C. The GOB will ensure compliance with all of the provisions of
this Agreement. In order to ensure such compliance, the GOB will take
at least the following measures:
1. Ensure that no steel subject to this Agreement is exported from
Brazil for entry into the United States during any Export Limit Period
that exceeds the export limit for that Export Limit Period.
2. Establish an export limit licensing and enforcement program for
all direct and indirect exports of Hot-Rolled Steel to the United
States no later than 120 days after the Effective Date.
3. Require that applications for Export Licenses be accompanied by
a report containing all of the information listed in Appendix III
(Exports of Hot-Rolled Steel).
4. Refuse to issue an Export License to any applicant that does not
permit full verification and reporting under this Agreement of all of
the information in the application.
5. Issue Export Licenses sequentially, endorsed against the export
limit for the relevant Export Limit Period, and reference any notice of
export limit allocation results for the relevant Export Limit Period.
Export Licenses shall remain valid for entry into the United States for
six months. DOC and GOB may agree to an extension of the validity of
the Export License in extraordinary circumstances.
6. Issue Export Licenses in the English language and, at the
discretion of the export license issuing authority, also in the
Portugese language.
7. Issue Export Licenses no earlier than 90 days before the day on
which the Hot-Rolled Steel is accepted by a transportation company, as
indicated in the bill of lading or a comparable transportation
document, for export.
8. Permit full verification of all information related to the
administration of this Agreement on an annual basis or more frequently,
as deemed necessary, to ensure that the GOB is in full compliance with
this Agreement.
9. Ensure compliance with all procedures established in order to
effectuate this Agreement by any official Brazilian institution,
chamber, or other authorized Brazilian company, and any Brazilian
producer, exporter, broker, and trader of Hot-Rolled Steel.
10. Impose strict measures, such as prohibition from participation
in the export limits allowed by the Agreement, in the event that any
Brazilian company does not comply in full with the requirements
established by GOB pursuant to this Agreement.
D. If any Hot-Rolled steel from Brazil is entered into the United
States in excess of the Export Limit or without a valid Export Licence,
DOC shall notify GOB of the entry(ies) and provide to GOB all of the
information concerning the entry(ies) that DOC is able to disclose
consistent with U.S. law. GOB shall respond within 21 days. If DOC
determines that entry of Hot-Rolled Steel from Brazil in excess of the
Export Limit or without a valid Export License has occurred, DOC shall
provide GOB with an opportunity for prompt consultations, which shall
be completed within 60 days after DOC notified GOB of the excessive or
unlicensed entry. Once the consultations have been completed, unless
DOC has concluded that the excessive or unlicensed entry did not occur,
DOC shall count against the Export Limit for the period in which the
excessive or licenced entry occurred twice the volume of the entry. If
the Export Limit for the period in which the excessive or unlicensed
entry occurred has been reached, any remaining portion of the excessive
or unlicensed entry will be subtracted from the next period's Export
Limit.
VI. Anticircumvention
A. The GOB will take all necessary measures to prevent
circumvention of this Agreement. These measures shall include requiring
that all Brazilian exporters of Hot-Rolled Steel agree, as a condition
of receiving any Export License under this Agreement, not to export
directly or indirectly to the United States Hot-Rolled Steel that is
not accompanied by an Export License issued pursuant to this Agreement.
1. When GOB has received an allegation that circumvention has
occurred, including an allegation from DOC, GOB shall promptly initiate
an inquiry, normally complete the inquiry within 45 days and notify DOC
of the results of the inquiry within 15 days after the conclusion of
the inquiry.
2. If GOB determines that a Brazilian company has participated in a
[[Page 38800]]
transaction circumventing this agreement, GOB shall impose penalties
upon such company including, but not limited to, denial of access to
export certificates for hot-rolled steel under this agreement.
3. If GOB determines that a Brazilian company has participated in
the circumvention of this agreement, GOB shall count against the export
limit for the Export Limit Period in which the circumvention took place
and amount of hot-rolled steel equivalent to the amount involved in
such circumvention and shall immediately notify DOC of the amount
deducted. If sufficient tonnage is not available in the current Export
Limit Period, then the remaining amount shall be deducted from the
subsequent Export Limit Period or Periods.
4. If GOB determines that a company from a third country has
circumvented the Agreement and DOC and GOB agree that no Brazilian
company participated in or had knowledge of such activities, then the
parties shall hold consultations for the purpose of sharing information
regarding such circumvention and reaching mutual agreement on the
appropriate measures to be taken to eliminate such circumvention. If
the parties are unable to reach mutual agreement within 45 days, then
DOC may take appropriate measures, such as deducting the amount of hot-
rolled steel involved in such circumvention from the export limit for
the then-current Export Limit Period or a subsequent Period. Before
taking such measures, DOC will notify GOB of the facts and reasons
constituting the basis for DOC's intended action and will afford GOB 15
days in which to comment.
B. DOC will investigate any allegations of circumvention which are
brought to its attention both by asking GOB to investigate such
allegations and by itself gathering relevant information. GOB will
respond to requests from DOC for information relating to such
allegations. In distinguishing normal arrangements from those which
would result in the circumvention of the export limits established by
this Agreement, DOC will take the following factors into account:
1. Existence of any verbal or written agreement leading to
circumvention of this agreement;
2. Existence and function of any subsidiaries or affiliates of the
parties involved;
3. Existence and function of any historical and traditional
patterns of production and trade among the parties involved, and any
deviation from such patterns;
4. Existence of any payments unaccounted for by previous or
subsequent deliveries, or any payments to one party for Hot-rolled
steel delivered or swapped by another party;
5. Sequence and timing of the arrangements; and
6. Any other information relevant to the transaction or
circumstances.
C. In the event that DOC determines that a Brazilian company has
participated in a transaction circumventing this Agreement, DOC and GOB
shall hold consultations for the purpose of sharing evidence regarding
such circumvention and reaching mutual agreement on an appropriate
resolution of the problem. If DOC and GOB are unable to reach mutual
agreement within 60 days, DOC may take appropriate measures, such as
deducting the amount of hot-rolled steel involved in such circumvention
from the export limit for the current Export Limit Period (or, if
necessary, the Subsequent Export Limit Period) or instructing U.S.
Customs to deny entry to any Brazilian hot-rolled steel sold by the
company found to be circumventing the Agreement. Before taking such
measures, DOC will notify GOB of the basis for DOC's intended action
and GOB will comment within 30 days. DOC will enter its determinations
regarding circumvention into the record of the Agreement. GOB may
request an extension of up to 15 days for any of the deadlines
mentioned in this Section.
VII. Monitoring and Notifications
A. GOB will collect and provide to DOC such information as is
necessary and appropriate to monitor the implementation of, and
compliance with, this Agreement, including the following:
1. Thirty days following the allocation of export rights for any
Export Limit Period, GOB shall notify DOC of each allocation recipient
and the volume granted to each recipient. GOB also shall inform DOC of
any changes in the volume allocated to individual quota recipients
within 60 days of the date on which such changes become effective.
2. GOB shall collect and provide to DOC information on exports to
the United States in the format in Appendix III to this Agreement, and
on the aggregate quantity and value of exports of Hot-Rolled Steel to
all other countries. This information will be based on semi-annual
periods (October 1 through March 31 and April 1 through September 30),
and will be provided no later than 90 days following the end of each
half year period, beginning on June 30, 2000 (for the period from the
Effective Date through March 31, 2000).
3. The GOB shall certify to DOC, in accordance with the reporting
schedule in section VII.A.2., whether it continues to be in compliance
with the Agreement by providing that all exports of Hot-Rolled Steel to
the United States are not and will not be eligible for any export
subsidies, as provided in Section III. The GOB shall notify the DOC if
any producer/exporter of Hot-Rolled Steel to the United States applies
for or receives, directly or indirectly, any export or import
substitution subsidy.
4. The GOB shall immediately notify and provide copies to the DOC
of any resolution, decree, legislation or equivalent Government action
governing any export or import substitution subsidy which is issued,
altered or amended in any way as to be applicable or available to
producers/exporters of Hot-Rolled Steel to the United States.
5. The GOB will inform the DOC of any violations of any provisions
of this Agreement that come to its attention and of the measures taken
with respect thereto.
6. The GOB and the DOC recognize that the effective monitoring of
this Agreement may require that the GOB provide information additional
to that identified above. Accordingly, after consulting with the GOB,
the DOC may request additional reporting requirements consistent with
U.S. law and regulations during the course of this Agreement. The GOB
shall also collect and provide to DOC, within 45 days of the request,
any such additional information requested by DOC.
B. The DOC will verify all information related to the
administration of this Agreement, including all information relating to
potential circumvention of this Agreement, annually or more frequently
as deemed necessary.
C. The DOC may disregard any information submitted after the
deadlines set forth in this Section or any information which it is
unable to verify to its satisfaction.
VIII. Disclosure and Comment
A. The DOC shall make available to representatives of each Party to
the Proceeding, under appropriately-drawn administrative protective
orders consistent with U.S. laws and regulations, business proprietary
information submitted to the DOC semi-annually or upon request pursuant
to this Agreement, and in any administrative review of this Agreement.
B. Not later than 45 days after the date of disclosure of
information pursuant to section VII.A., the Parties to the Proceeding
may submit written
[[Page 38801]]
comments to DOC, not to exceed 30 pages.
C. At the end of each Export Limit Period, each Party to the
Proceeding may request a hearing on issues raised during the preceding
Export Limit Period. If such a hearing is requested, it will be
conducted in accordance with U.S. laws and regulations.
IX. Consultations
A. The DOC and the GOB may request consultations with the other
concerning this agreement at any time.
B. If the DOC requests consultations with the GOB concerning
potential noncompliance with, or Violation of, this Agreement, it may
simultaneously request the GOB to provide the DOC with all information
relating to the allegation. The GOB will provide the requested
information to the DOC within 21 days of the DOC's request. Any Party
to the Proceeding may submit comments on the information submitted by
the Signatory within 10 days after the DOC receives the information.
The consultations shall be held within 45 days after the DOC's request
for consultations or for relevant information, unless the DOC and the
GOB agree on a later date.
X. Violations
A. If the DOC determines that this Agreement is being or has been
violated, DOC will take such action as it determines appropriate under
U.S. laws and regulations.
B. If the DOC determines that this Agreement no longer meets the
requirements of the Act, the DOC shall take whatever action it deems
appropriate under Section 704(i) of the Act and the Regulations.
C. In the event that the DOC resumes the original investigation, it
will conduct the resumed investigation on the basis of the original
administrative record and the statutes, regulations, policies, and
practices in effect on the Effective Date.
XI. Duration
A. This Agreement will remain in force until the underlying
countervailing duty proceeding is terminated in accordance with U.S.
law.
B. The GOB may terminate this Agreement at any time upon written
notice to the DOC. Termination shall be effective 60 days after such
notice is given to the DOC. Upon termination at the request of the GOB,
the provisions of U.S. countervailing duty law and regulations shall
apply.
XII. Other Provisions
A. The DOC determines that extraordinary circumstances are present
in this case, that this Agreement is in the public interest, that
effective monitoring of this Agreement by the United States is
practicable, and that this Agreement will completely eliminate injury
to the domestic industry producing the like product by imports of Hot-
Rolled Steel from Brazil.
B. For all purposes hereunder, the signatory Parties shall be
represented by, and all communications and notices shall be given and
addressed to:
DOC:
U.S. DOC of Commerce, Assistant Secretary for Import Administration,
International Trade Administration, Washington, D.C. 20230
GOB:
Ministrio das Relaco6es Exteriores, Divisao de Politica Comercial,
70.170-900--Brasilia--DF--Brazil
Embassy of Brazil, 3006 Massachusetts Ave. NW, Washington, D.C. 20008
Signed on this 6th of July 1999. 3
Robert Larussa,
Assistant Secretary for Import Administration, U.S. Department of
Commerce.
Regis Arslanian,
Minister-Counselor, Embassy of Brazil.
Appendix I--Definition of Hot-Rolled Steel
For purposes of this investigation, the products covered 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 these investigations.
Specifically included in this 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 this
investigation, regardless of 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.
All products that meet the physical and chemical description
provided above are within the scope of this investigation unless
otherwise excluded. The following products, by way of example, are
outside and/or specifically excluded from the scope of this
investigation:
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).
SAE/AISI grades of series 2300 and higher.
Ball bearing steels, as defined in the HTSUS.
Tool steels, as defined in the HTSUS.
Silico-manganese (as defined in the HTSUS) or silicon
electrical steel with a silicon level exceeding 1.50 percent.
ASTM specifications A710 and A736.
USS Abrasion-resistant steels (USS AR 400, USS AR 500).
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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Width = 44.80 inches maximum; Thickness = 0.063--0.198 inches;
Yield Strength = 50,000 ksi minimum; Tensile Strength = 70,000--
88,000 psi.
Hot-rolled steel coil which meets the following
chemical, physical and mechanical specifications:
[[Page 38802]]
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C Mn P S Si Cr Cu Ni Mo
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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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Width = 44.80 inches maximum; Thickness = 0.350 inches maximum;
Yield Strength = 80,000 ksi minimum; Tensile Strength = 105,000 psi
Aim.
Hot-rolled steel coil which meets the following
chemical, physical and mechanical specifications:
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
C Mn P S Si Cr Cu Ni V(wt.) Cb
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Width = 44.80 inches maximum; Thickness = 0.350 inches maximum;
Yield Strength = 80,000 ksi minimum; Tensile Strength = 105,000 psi
Aim.
Hot-rolled steel coil which meets the following
chemical, physical and mechanical specifications:
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
C Mn P S Si Cr Cu Ni Nb Ca Al
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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% Min........ 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.
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\2\ and
640 N/mm\2\ and an elongation percentage 26 percent for
thicknesses of 2 mm and above, or (ii) a tensile strength between
590 N/mm\2\ and 690 N/mm\2\ and an elongation percentage
25 percent for thicknesses of 2mm and above.
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.
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 these investigations is classified in
the Harmonized Tariff Schedule of the United States (``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 this
investigation, 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, 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 under investigation is dispositive.
Appendix II--Information To Be Contained in Export Licenses
1. Export License: Indicate the number(s) relating to each sale and
or entry.
2. Complete Description of Merchandise: Include the 10 digit HTS
category, the ASTM or equivalent grade, and the width and thickness
of merchandise.
3. Quantity: Indicate in metric tons.
4 F.O.B. Sales Value: Indicate value and currency used.
5. Unit Price: Indicate unit price per metric ton and currency used,
and reference price.
6. Date of Sale: The date all essential terms of the order (i.e,
price and quantity) become fixed.
7. Sales Order Number(s): Indicate the number(s) relating to each
sale and/or entry.
8. Date of Export: Date the Export License is issued.
9. Date of Entry: Date the merchandise entered the United States or
the date book transfer took place.
10. Importer of Record: Name and address.
11. Trading Company: Name and address of trading company involved in
sale.
12. Customer: Name and address of the first unaffiliated party
purchasing from the Brazilian exporter.
13. Customer Relationship: Indicate whether the customer is
affiliated or unaffiliated to the Brazilian exporter.
14. Allocation to Exporter: Indicate the total amount of quota
allocated to the individual exporter during the Relevant Period.
15. Allocation Remaining: Indicate the remaining export limit
allocation available to the individual exporter during the export
limit period.
16. Destination: The complete name and address of the first
unaffiliated purchaser.
17. Other: The identity of any party(ies) in the transaction chain
between the producer and the first unaffiliated purchaser.
List of Heat Numbers
GOB shall ensure that all shipments of Hot-Rolled Steel exported to
the United States pursuant to this Agreement, shall be accompanied by a
list of heat numbers under the shipment. GOB understands that DOC
intends to fully verify this data during verifications.
Appendix III--Information on Exports of Hot-Rolled Steel
In accordance with the established format, the GOB's license
issuing authority shall collect and provide to DOC all information
necessary to ensure compliance with this Agreement. This information
will be provided to DOC on a semi-annual basis.
The GOB's license issuing authority will collect and maintain
data on exports to the United States on a continuous basis. Data for
exports to countries other than the United States, will be reported
upon request.
The GOB's license issuing authority will provide a narrative
explanation to substantiate all data collected in accordance with
the following formats.
The GOB's license issuing authority will provide all Export
Licenses issued to Brazilian entities, which shall contain the
following information with the exception that information requested
in item #9, date of entry, item #10, importer of record, item #16,
final destination, and item #17, other, may be omitted if unknown to
the licensing authority and the licensee.
[[Page 38803]]
1. Export License: Indicate the number(s) relating to each sale and
or entry.
2. Complete Description of Merchandise: Include the 10 digit HTS
category, the ASTM or equivalent grade, and the width and thickness
of merchandise.
3. Quantity: Indicate in metric tons.
4 F.O.B. Sales Value: Indicate value and currency used.
5. Unit Price: Indicate unit price per metric ton, currency used,
and reference price
6. Date of Sale: The date all essential terms of the order (i.e,
price and quantity) become fixed.
7. Sales Order Number(s): Indicate the number(s) relating to each
sale and/or entry.
8. Date of Export: Date the Export License is issued.
9. Date of Entry: Date the merchandise entered the United States or
the date book transfer took place.
10. Importer of Record: Name and address.
11. Trading Company: Name and address of trading company involved in
sale.
12. Customer: Name and address of the first unaffiliated party
purchasing from the Brazilian exporter.
13. Customer Relationship: Indicate whether the customer is
affiliated or unaffiliated to the Brazilian exporter.
14. Allocation to Exporter: Indicate the total amount of quota
allocated to the individual exporter during the Relevant Period.
15. Allocation Remaining: Indicate the remaining export limit
allocation available to the individual exporter during the export
limit period.
16. Destination: The complete name and address of the first
unaffiliated purchaser.
17. Other: The identity of any party(ies) in the transaction chain
between the producer and the first unaffiliated purchaser.
List of Heat Numbers
The GOB's license issuing authority shall ensure that all
shipments of Hot-Rolled Steel exported to the United States pursuant
to this Agreement, shall be accompanied by a list of heat numbers
under the shipment. The GOB's license issuing authority understands
that DOC intends to fully verify this data during verifications.
[FR Doc. 99-18227 Filed 7-16-99; 8:45 am]
BILLING CODE 3510-DS-P
