Preliminary Results of Countervailing Duty Administrative Review: Corrosion-Resistant Carbon Steel Flat Products from the Republic of Korea, 53413-53421 [E6-14916]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 71, Number 175 (Monday, September 11, 2006)]
[Notices]
[Pages 53413-53421]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-14916]


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DEPARTMENT OF COMMERCE

International Trade Administration

(C-580-818)


Preliminary Results of Countervailing Duty Administrative Review: 
Corrosion-Resistant Carbon Steel Flat Products from the Republic of 
Korea

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) is conducting an 
administrative review of the countervailing duty (CVD) order on 
corrosion-resistant carbon steel flat products (i.e., corrosion-
resistant carbon steel plate) from the Republic of Korea (Korea) for 
the period of review (POR) January 1, 2004, through December 31, 2004. 
For information on the net subsidy for each of the reviewed companies, 
see the ``Preliminary Results of Review'' section of this notice. 
Interested parties are invited to comment on these preliminary results. 
(See the ``Public Comment'' section of this notice).

EFFECTIVE DATE: September 11, 2006.

FOR FURTHER INFORMATION CONTACT: Robert Copyak or Gayle Longest, AD/CVD 
Operations, Office 3, Import Administration, U.S. Department of 
Commerce, Room 4014, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230; telephone: (202) 482-2209 or (202) 482-3338, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On August 17, 1993, the Department published in the Federal 
Register the CVD order on corrosion-resistant carbon steel flat 
products from Korea. See Countervailing Duty Orders and Amendments to 
Final Affirmative Countervailing Duty Determinations: Certain Steel 
Products from Korea, 58 FR 43752 (August 17, 1993). On August 1, 2005, 
the Department published a notice of opportunity to request an 
administrative review of this CVD order. See Antidumping or 
Countervailing Duty Order, Finding, or Suspended Investigation; 
Opportunity to Request Administrative Review, 70 FR 44085 (August 1, 
2005). On August 31, 2005, we received a timely request for review from 
Pohang Iron and Steel Co. Ltd. (POSCO) and Dongbu Steel Co., Ltd. 
(Dongbu). On September 28, 2005, the Department published a notice of 
initiation of the administrative review of the CVD order on corrosion-
resistent carbon steel flat products from Korea covering the POR 
January 1, 2004, through December 31, 2004. See Initiation of 
Antidumping and Countervailing Duty Administrative Reviews and Requests 
for Revocation in Part, 70 FR 56631 (September 28, 2005). On October 
19, 2005, the Department sent its initial questionnaire to POSCO, 
Dongbu, and the Government of Korea (GOK). On December 21, 2005, the 
Department received questionnaire responses from POSCO, Pohang Steel 
Co., Ltd. (POCOS, a production affiliate of POSCO), POSCO Steel Service 
& Sales Co., Ltd. (POSTEEL, a trading company for POSCO),\1\ Dongbu, 
and the GOK. On March 20, 2006, we issued supplemental questionnaires 
to POSCO and the GOK. On April 3, 2006, we received the responses to 
these supplemental questionnaires.
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    \1\ In these preliminary results, unless otherwise stated, we 
use POSCO to collectively refer to POSCO, POCOS, and POSTEEL.
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    On April 17, 2006, the Department published in the Federal Register 
a notice of extension of the time period for issuing the preliminary 
results. See Corrosion-Resistant Carbon Steel Flat Products from France 
and the Republic of Korea: Extension of Time Limit for Preliminary 
Results of Countervailing Duty Administrative Reviews, 71 FR 19714 
(April 17, 2006). On July 31, 2006, we issued an additional 
supplemental questionnaire to POSCO, POCOS, and POSTEEL. On August 3, 
2006, we issued an additional supplemental questionnaire to the GOK. We 
received responses to these supplemental questionnaires on August 11, 
2006.
    In accordance with 19 CFR 351.213(b), this review covers only those 
producers or exporters for which a review was specifically requested. 
The companies subject to this review are POSCO (and its affiliates 
POCOS and POSTEEL) and Dongbu.

Affiliated Parties and Trading Companies

    In the present administrative review, record evidence indicates 
that POCOS is a majority-owned affiliate of POSCO. Under 19 CFR 
351.525(b)(6)(iii), if the firm that received a subsidy is a holding 
company, including a parent company with its own operations, the 
Department will attribute the subsidy to the consolidated sales of the 
holding company and its subsidiaries. Thus, we attributed subsidies 
received by POCOS to POSCO and its subsidiaries, net of intra-company 
sales. Dongbu reported that it is the only member of the Donbu group in 
Korea that was involved with the sale of subject merchandise to the 
United States.

Scope of Order

    Products covered by this order are certain corrosion-resistant 
carbon steel flat products from Korea. These products include flat-
rolled carbon steel products, of rectangular shape, either clad, 
plated, or coated with corrosion-resistant metals such as zinc, 
aluminum, or zinc-, aluminum-, nickel- or iron-based alloys, whether or 
not corrugated or painted, varnished or coated with plastics or other 
nonmetallic substances in addition to the metallic coating, in coils 
(whether or not in successively superimposed layers) and of a width of 
0.5 inch or greater, or in straight lengths which, if of a thickness 
less than 4.75 millimeters, are of a width of 0.5 inch or greater and 
which measures at least 10 times the thickness or if of a thickness of 
4.75 millimeters or more are of a width which exceeds 150 millimeters 
and measures at least twice the thickness. The merchandise subject to 
this order is currently classifiable in the Harmonized Tariff Schedule 
of the United States (HTSUS) at subheadings: 7210.30.0000, 
7210.31.0000, 7210.39.0000, 7210.41.0000, 7210.49.0030, 7210.49.0090, 
7210.60.0000, 7210.61.0000, 7210.69.0000, 7210.70.6030, 7210.70.6060, 
7210.70.6090, 7210.90.1000, 7210.90.6000, 7210.90.9000, 7212.20.0000, 
7212.21.0000, 7212.29.0000, 7212.30.1030, 7212.30.1090, 7212.30.3000, 
7212.30.5000, 7212.40.1000, 7212.40.5000, 7212.50.0000, 7212.60.0000, 
7215.90.1000, 7215.9030, 7215.90.5000, 7217.12.1000, 7217.13.1000, 
7217.19.1000, 7217.19.5000, 7217.20.1500, 7217.22.5000, 7217.23.5000, 
7217.29.1000, 7217.29.5000, 7217.30.15.0000, 7217.32.5000, 
7217.33.5000, 7217.39.1000, 7217.39.5000,

[[Page 53414]]

7217.90.1000 and 7217.90.5000. Although the HTSUS subheadings are 
provided for convenience and customs purposes, the Department's written 
description of the merchandise is dispositive.

Average Useful Life

    Under 19 CFR 351.524(d)(2), we will presume the allocation period 
for non-recurring subsidies to be the average useful life (AUL) of 
renewable physical assets for the industry concerned as listed in the 
Internal Revenue Service's (IRS) 1997 Class Life Asset Depreciation 
Range System, as updated by the Department of the Treasury. The 
presumption will apply unless a party claims and establishes that the 
IRS tables do not reasonably reflect the company-specific AUL or the 
country-wide AUL for the industry under examination and that the 
difference between the company-specific and/or country-wide AUL and the 
AUL from the IRS table is significant. According to the IRS Tables, the 
AUL of the steel industry is 15 years. No interested party challenged 
the 15-year AUL derived from the IRS tables. Thus, in this review, we 
have allocated, where applicable, all of the non-recurring subsidies 
provided to the producers/exporters of subject merchandise over a 15-
year AUL.

Subsidies Valuation Information

A. Benchmarks for Short-Term Financing

    For those programs requiring the application of a won-denominated, 
short-term interest rate benchmark, in accordance with 19 CFR 
351.505(a)(2)(iv), we used as our benchmark a company-specific 
weighted-average interest rate for commercial won-denominated loans 
outstanding during the POR. Where unavailable, we used the average 
interest rate on lending rate loans for the POR, as reported in the 
IMF's International Financial Statistics Yearbook. This approach is in 
accordance with the Department's practice. See, e.g., the Final 
Affirmative Countervailing Duty Determination: Structural Steel Beams 
From the Republic of Korea, 65 FR 41051 (July 3, 2000) (H Beams 
Investigation), and the accompanying Issues and Decision Memorandum (H 
Beams Decision Memorandum), at ``Benchmarks for Short-Term Financing.''

B. Benchmark for Long-Term Loans Issued Through 2004

    During the POR, POSCO and Dongbu had outstanding long-term won-
denominated and foreign-currency denominated loans from government-
owned banks and Korean commercial banks. Based on our findings on this 
issue in prior investigations and administrative reviews, we are using 
the following benchmarks to calculate the subsidies attributable to 
respondents' countervailable long-term loans obtained in the years 1991 
through 2004:
    (1) For countervailable, foreign-currency denominated loans, 
pursuant to 19 CFR 351.505(a)(2)(ii), and consistent with our past 
practice to date, our preference is to use the company-specific, 
weighted-average foreign currency-denominated interest rates on the 
company's loans from foreign bank branches in Korea, foreign 
securities, and direct foreign loans received after 1991. See, e.g., 
Final Affirmative Countervailing Duty Determination: Stainless Steel 
Sheet and Strip in Coils from the Republic of Korea, 64 FR 30636, 30642 
(June 8, 1999) (Sheet and Strip Investigation); see also Final Negative 
Countervailing Duty Determination: Stainless Steel Plate in Coils from 
the Republic of Korea, 64 FR 15530, 15533 (March 31, 1999) (Plate in 
Coils Investigation). Where no such benchmark instruments are 
available, and consistent with 19 CFR 351.505(a)(3)(ii) as well as our 
methodology in a prior administrative review, we relied on the lending 
rates as reported by the IMF's International Financial Statistics 
Yearbook. See Final Results and Partial Rescission of Countervailing 
Duty Administrative Review: Stainless Steel Sheet and Strip in Coils 
from the Republic of Korea, 69 FR 2113 (January 14, 2004) (2001 Sheet 
and Strip), and the accompanying Issues and Decision Memorandum (2001 
Sheet and Strip Decision Memorandum), at ``Subsidies Valuation 
Information.''
    (2) For countervailable, won-denominated, long-term loans, our 
practice is to use the company-specific corporate bond rate on the 
company's public and private bonds, as we determined that the GOK did 
not control the Korean domestic bond market after 1991 and that 
domestic bonds may serve as an appropriate benchmark interest rate. See 
Plate in Coils Investigation, 64 FR at 15531; see also 19 CFR 
351.505(a)(2)(ii). Where unavailable, we used the national average of 
the yields on three-year corporate bonds, as reported by the Bank of 
Korea (BOK). We note that the use of the three-year corporate bond rate 
from the BOK follows the approach taken in the Plate in Coils 
Investigation, in which we determined that, absent company-specific 
interest rate information, the corporate bond rate is the best 
indicator of a market rate for won-denominated long-term loans in 
Korea. See Plate in Coils Investigation, 64 FR at 15531. See also 19 
CFR 505(a)(3)(ii).
    In accordance with 19 CFR 351.505(a)(2), our benchmarks take into 
consideration the structure of the government-provided loans. For 
fixed-rate loans, pursuant to 19 CFR 351.505(a)(2)(iii), we used 
benchmark rates issued in the same year that the government loans were 
issued. For variable-rate loans outstanding during the POR, pursuant to 
19 CFR 351.505(a)(5)(i), our preference is to use the interest rates of 
variable-rate lending instruments issued during the year in which the 
government loans were issued. Where such benchmark instruments are 
unavailable, we used interest rates from loans issued during the POR as 
our benchmark, as such rates better reflect a variable interest rate 
that would be in effect during the POR. This approach is in accordance 
with the Department's practice under similar facts. See, e.g., Final 
Results and Partial Rescission of Countervailing Duty Administrative 
Review: Stainless Steel Sheet and Strip From the Republic of Korea, 68 
FR 13267 (March 19, 2003) (2000 Sheet and Strip), and accompanying 
Issues and Decision Memorandum (Sheet and Strip Decision Memorandum), 
at Comment 8; see also 19 CFR 351.505(a)(5)(ii).

C. Benchmark Discount Rates

    Certain programs examined in this administrative review require the 
allocation of won-denominated benefits over time. Thus, we have 
employed the allocation methodology described under 19 CFR 351.524(d). 
Pursuant to 19 CFR 351.524(d)(3)(i), we based our discount rate upon 
data for the year in which the government agreed to provide the 
subsidy. Under 19 CFR 351.524(d)(3)(i)(A), our preference is to use the 
cost of long-term, fixed-rate loans of the firm in question. Thus, 
where available, we used company-specific corporate bond rates on 
public and private bonds. See Plate in Coils Investigation, 64 FR at 
15531. Where unavailable, pursuant to 19 CFR 351.524(d)(3)(i)(B), we 
used the national average of the yields on three-year corporate bonds, 
as reported by the BOK.

I. Program Preliminarily Determined to Confer Subsidies

A The GOK's Direction of Credit

    1. Countervailable Loans Received Through 1991

[[Page 53415]]

    In the 1993 investigation of Steel Products from Korea, the 
Department determined that (1) the GOK influenced the practices of 
lending institutions in Korea; (2) the GOK regulated long-term loans 
provided to the steel industry on a selective basis; and (3) the 
selective provision of these regulated loans resulted in a 
countervailable benefit. Accordingly, all long-term loans received by 
the producers/exporters of the subject merchandise were treated as 
countervailable. The determination in that investigation covered all 
long-term loans issued through 1991. See Final Affirmative 
Countervailing Duty Determinations and Final Negative Critical 
Circumstances Determinations: Certain Steel Products From Korea, 58 FR 
37338, 37339 (July 9, 1993) (Steel Products from Korea). This finding 
of control was determined to be sufficient to constitute a government 
program and government action. See id., 58 FR at 37342. In Steel 
Products from Korea, we also determined that (1) the Korean steel 
sector, as a result of the GOK's credit policies and control over the 
Korean financial sector, received a disproportionate share of regulated 
long-term loans, so that the program was, de facto, specific, and (2) 
the interest rates on those loans were inconsistent with commercial 
considerations. See id., 58 FR at 37343. On this basis, we 
countervailed all long-term loans received by the steel sector from all 
lending sources through 1991. See, e.g., H Beams Decision Memorandum, 
at ``The GOK's Credit Policies Through 1991.''
    2. Countervailable Loans Received from 1992 Through 2001
    In subsequent proceedings, with regard to the period 1992 through 
2001, the Department consistently found the GOK continued to exercise 
control over the lending practices of domestic commercial banks and 
government-controlled banks, and thereby directed subsidies specific to 
the steel industry within the meaning of section 771(5A)(D)(iii) of the 
Tariff Act of 1930, as amended (the Act). Further, we found that such 
loans constituted a financial contribution within the meaning of 
section 771(5)(D)(i) of the Act and a benefit under section 
771(5)(E)(ii) of the Act, to the extent that the interest rates on the 
loans were lower than the interest rates on comparable commercial 
loans. See Sheet and Strip Investigation, 64 FR at 30642 (regarding 
1992 through 1997); and Plate in Coils Investigation, 64 FR at 15533 
(regarding 1992 through 1997); H Beams Decision Memorandum, at ``The 
GOK's Credit Policies from 1992 through 1998''; Final Results and 
Partial Rescission of Countervailing Duty Administrative Review: 
Stainless Steel Sheet and Strip in Coils from the Republic of Korea, 67 
FR 1964 (January 15, 2002) (1999 Sheet and Strip), and accompanying 
Issues and Decision Memorandum (1999 Sheet and Strip Decision 
Memorandum) at ``the GOK's Direction of Credit'' (regarding 1999); 
Final Affirmative Countervailing Duty Determination: Certain Cold-
Rolled Carbon Steel Flat Products From the Republic of Korea, 67 FR 
62102 (October 3, 2002) (Cold-Rolled Investigation), and accompanying 
Issues and Decision Memorandum (Cold-Rolled Decision Memorandum), at 
``The GOK Directed Credit'' (regarding 2000); and 2001 Sheet and Strip 
Decision Memorandum, at ``The GOK's Direction of Credit'' (regarding 
2001).
    During the POR, POSCO and Dongbu had outstanding loans that were 
received prior to the 2002 period. As stated above, the Department has 
found GOK-directed credit from domestic commercial banks and 
government-owned banks to be countervailable through 2001. POSCO, 
Dongbu, and the GOK did not provide any new information that would 
warrant a change in these prior findings. Therefore, we continue to 
find that POSCO and Dongbu benefitted from this program, which provides 
a countervailable subsidy of loans from government-owned or controlled 
banks through 2001.
    3. Countervailable Loans Received from 2002 Through 2004
    Section 776(a)(1) and (2) of the Act provides that the Department 
shall apply ``facts otherwise available'' if, inter alia, necessary 
information is not on the record or an interested party or any other 
person (A) withholds information that has been requested, (B) fails to 
provide information within the deadlines established, or in the form 
and manner requested by the Department, subject to subsections (c)(1) 
and (e) of section 782 of the Act, (C) significantly impedes a 
proceeding, or (D) provides information that cannot be verified as 
provided by section 782(i) of the Act.
    Where the Department determines that a response to a request for 
information does not comply with the request, section 782(d) of the Act 
provides that the Department will so inform the party submitting the 
response and will, to the extent practicable, provide that party the 
opportunity to remedy or explain the deficiency. If the party fails to 
remedy the deficiency within the applicable time limits and subject to 
section 782(e) of the Act, the Department may disregard all or part of 
the original and subsequent responses, as appropriate. Section 782(e) 
of the Act provides that the Department shall not decline to consider 
information that is submitted by an interested party and is necessary 
to the determination but does not meet all applicable requirements 
established by the administering authority if the information is 
timely, can be verified, is not so incomplete that it cannot be used, 
and if the interested party acted to the best of its ability in 
providing the information. Where all of these conditions are met, the 
statute requires the Department to use the information if it can do so 
without undue difficulties. However, because the GOK failed to provide 
the requested information, section 782(d) and (e) of the Act are not 
applicable.
    Section 776(b) of the Act further provides that the Department may 
use an adverse inference in applying the facts otherwise available when 
a party has failed to cooperate by not acting to the best of its 
ability to comply with a request for information. Section 776(b) of the 
Act also authorizes the Department to use as adverse facts available 
(AFA) information derived from the petition, the final determination, a 
previous administrative review, or other information placed on the 
record.
    For the reasons discussed below, we determine that, in accordance 
with sections 776(a)(2) and 776(b) of the Act, the use of AFA is 
appropriate for the preliminary results for the determination of 
direction of credit for loans received from 2002 through 2004.
    We asked the GOK for information pertaining to the GOK's direction 
of credit policies for the period from 2002 through 2004. The GOK did 
not provide any additional information, stating instead that:
    The Department has consistently found that long-term loans received 
by the steel industry were the result of GOK direction, despite the 
GOK's repeated objections and demonstrations to the contrary. While the 
GOK does not agree with the Department's position, the legal costs to 
further contest this issue in this review overshadow any possible 
benefit.
See the December 21, 2005, GOK Questionnaire Response, at 8. Because 
the GOK withheld the requested information on its lending policies, the 
Department does not have the necessary information on the record to 
determine whether the GOK has continued its direction of credit 
policies from 2002 through 2004. Therefore, the Department must base 
its determination

[[Page 53416]]

on facts otherwise available. See Section 776(a)(2)(A) of the Act.
    In this case, the GOK refused to supply requested information that 
was in its possession, and which it had provided in prior proceedings. 
See, e.g., Final Affirmative Countervailing Duty Determination: Certain 
Cut-to-Length Carbon-Quality Steel Plate from the Republic of Korea, 64 
FR 73176, 73178 (December 29, 1999) (CTL Plate Investigation). 
Therefore, we find that the GOK did not act to the best of its ability 
and are employing an adverse inference in selecting from among the 
facts otherwise available. As AFA, we therefore find that the GOK's 
direction of credit policies continued from 2002 through 2004. As noted 
above, the GOK's direction of credit policies provide a financial 
contribution, confer a benefit, and are specific, pursuant to sections 
771(5)(D)(i), 771(5)(E)(ii), and 771(5A)(D)(iii) of the Act, 
respectively. Therefore, we preliminarily find that lending from 
domestic banks and government-owned banks during the 2002 and 2004 
period are countervailable. Thus, any loans received during 2002 and 
2004 from domestic banks and government-owned banks that were 
outstanding during the POR are countervailable, to the extent that the 
interest amount paid on the loan is less than what would have been paid 
on a comparable commercial loan. The Department's decision to rely on 
adverse inferences when lacking a response from the GOK regarding the 
direction of credit issue is in accordance with its practice. See, 
e.g., Preliminary Results of Countervailing Duty Administrative Review: 
Certain Cut-to-Length Carbon-Quality Steel Plate from the Republic of 
Korea, 71 FR 11397, 11399 (March 7, 2006) (2004 CTL Plate) (unchanged 
in final results); Final Results of Countervailing Duty Administrative 
Review: Certain Cut-to-Length Carbon-Quality Steel Plate from Korea, 71 
FR 38861 (July 10, 2006).
    Section 776(c) of the Act provides that, when the Department relies 
on secondary information rather than on information obtained in the 
course of an investigation or review, it shall, to the extent 
practicable, corroborate that information from independent sources that 
are reasonably at its disposal. Secondary information is defined as 
[lsqb]i[rsqb]nformation derived from the petition that gave rise to the 
investigation or review, the final determination concerning the subject 
merchandise, or any previous review under section 751 concerning the 
subject merchandise. See Statement of Administrative Action (``SAA'') 
accompanying the Uruguay Round Agreements Act, H. Doc. No. 316, 103d 
Cong., 2d Session, Vol. 1, at 870 (1994). Corroborate means that the 
Department will satisfy itself that the secondary information to be 
used has probative value. Id. To corroborate secondary information, the 
Department will, to the extent practicable, examine the reliability and 
relevance of the information to be used. The SAA emphasizes, however, 
that the Department need not prove that the selected facts available 
are the best alternative information. Id.
    Thus, in those instances in which it determines to apply AFA, the 
Department, in order to satisfy itself that such information has 
probative value, will examine, to the extent practicable, the 
reliability and relevance of the information used. However, unlike 
other types of information, such as publicly available data on the 
national inflation rate of a given country or national average interest 
rates, there typically are no independent sources for data on the 
specificity of countervailable subsidy programs. The only source for 
such information normally is administrative determinations, which are 
reliable. In the instant case, no evidence has been presented or 
obtained that contradicts the reliability of the evidence relied upon 
in previous segments of this proceeding.
    With respect to the relevance aspect of corroboration, the 
Department will consider information reasonably at its disposal as to 
whether there are circumstances that would render benefit data not 
relevant. Where circumstances indicate that the information is not 
appropriate as AFA, the Department will not use it. See Fresh Cut 
Flowers from Mexico; Final Results of Antidumping Duty Administrative 
Review, 61 FR 6812 (February 22, 1996). In the instant case, no 
evidence has been presented or obtained that contradicts the finding of 
directed credit relied upon in previous segments of this proceeding. 
Thus, in the instant case, the Department finds that the information 
used has been corroborated to the extent practicable.
    Dongbu and POSCO reported that, during the POR, they had 
outstanding fixed-rate and variable-rate loans from government-owned or 
-controlled lending institutions that were issued between 2002 and 
2004.
    4. Calculation of the Benefit and Net Subsidy Rate Under the 
Direction of Credit Program
    In accordance with 19 CFR 351.505(c)(2) and (4), we calculated the 
benefit for each fixed- and variable-rate loan received from GOK-owned 
or -controlled banks to be the difference between the actual amount of 
interest paid on the directed loan during the POR and the amount of 
interest that would have been paid during the POR at the benchmark 
interest rate. We conducted our benefit calculations using the 
benchmark interest rates described in the ``Subsidies Valuation 
Information'' section above. For foreign currency-denominated loans, we 
converted the benefits into Korean won using exchange rates obtained 
from the BOK. We then summed the benefits from each company's long-term 
fixed-rate and variable-rate won-denominated loans.
    To calculate the net subsidy rate, we divided the companies' total 
benefits by their respective total f.o.b. sales values during the POR, 
as this program is not tied to exports or a particular product. In 
calculating the net subsidy rate for POSCO, we removed from the 
denominator sales made between affiliated parties.\2\ On this basis, we 
preliminarily determine the net subsidy rate under the direction of 
credit program to be less than 0.005 percent ad valorem for POSCO and 
0.14 percent ad valorem for Dongbu.
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    \2\ For POSCO, we also removed intra-company sales from the 
denominators of the net subsidy rate calculations of the other 
programs found countervailable in these preliminary results. This 
step was not necessary for Dongbu.
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B. Asset Revaluation Under Article 56(2) of the Tax Reduction and 
Exemption Control Act (TERCL)

    Under Article 56(2) of the TERCL, the GOK permitted companies that 
made an initial public offering between January 1, 1987, and December 
31, 1990, to revalue their assets at a rate higher than the 25 percent 
required of most other companies under the Asset Revaluation Act. The 
Department has previously found this program to be countervailable. For 
example, in the CTL Plate Investigation, the Department determined that 
this program was de facto specific under section 771(5A)(D)(iii) of the 
Act because the actual recipients of the subsidy were limited in number 
and the basic metal industry was a dominant user of this program. We 
also determined that a financial contribution was provided in the form 
of tax revenue foregone pursuant to section 771(5)(D)(ii) of the Act. 
See CTL Plate Investigation, 64 FR at 73182 - 83. The Department 
further determined that a benefit was conferred within the meaning of 
section 771(5)(E) of the Act on those companies that were able to 
revalue their assets under TERCL Article 56(2) because the revaluation 
resulted in participants paying fewer taxes than they would otherwise 
pay

[[Page 53417]]

absent the program. Id. No new information, evidence of changed 
circumstances, or comments from interested parties were presented in 
this review to warrant any reconsideration of the countervailability of 
this program.
    The benefit from this program is the difference that the 
revaluation of depreciable assets has on a company's tax liability each 
year. Evidence on the record indicates that, in 1989, POSCO made an 
asset revaluation that increased its depreciation expense. Dongbu 
reported that it did not use this program during the POR. To calculate 
the benefit to POSCO, we took the additional depreciation listed in the 
tax return filed during the POR, which resulted from the company's 
asset revaluation, and multiplied that amount by the tax rate 
applicable to that tax return. We then divided the resulting benefit by 
POSCO's total f.o.b. sales. On this basis, we preliminarily determine 
the net countervailable subsidy to be 0.02 percent ad valorem for 
POSCO.

C. Research and Development (R&D) Grants Under the Industrial 
Development Act (IDA)

    The GOK, through the Ministry of Commerce, Industry, and Energy 
(MOCIE), provides R&D grants to support numerous projects pursuant to 
the IDA, including technology for core materials, components, 
engineering systems, and resource technology. The IDA is designed to 
foster the development of efficient technology for industrial 
development. To participate in this program a company may: (1) Perform 
its own R&D project, (2) participate through the Korea New Iron and 
Steel Technology Research Association (KNISTRA), which is an 
association of steel companies established for the development of new 
iron and steel technology, and/or (3) participate in another company's 
R&D project and share R&D costs, along with funds received from the 
GOK. To be eligible to participate in this program, the applicant must 
meet the qualifications set forth in the basic plan and must perform 
R&D as set forth under the Notice of Industrial Basic Technology 
Development. If the R&D project is not successful, the company must 
repay the full amount.
    In the H Beams Investigation, the Department determined that 
through KNISTRA the Korean steel industry receives funding specific to 
the steel industry. Therefore, given the nature of KNISTRA, the 
Department found projects under KNISTRA to be specific. See Preliminary 
Negative Countervailing Duty Determination and Alignment of Final 
Countervailing Duty Determination With Final Antidumping Duty 
Determination: Structural Steel Beams From the Republic of Korea, 64 FR 
69731, 69740 (December 14, 1999)(unchanged in the final results); and H 
Beams Decision Memorandum, at ``R&D Grants under The Korea New Iron & 
Steel Technology Research Association (KNISTRA).'' Further, we found 
that the grants constituted a financial contribution and conferred a 
benefit in accordance with sections 771(5)(D)(i) and 771(5)(E) of the 
Act, respectively. Id. No new factual information or evidence of 
changed circumstances has been provided to the Department with respect 
to this program. Therefore, we preliminarily determine that this 
program is de jure specific within the meaning of section 771(5A)(D)(i) 
of the Act and constitutes a financial contribution and confers a 
benefit under sections 771(5)(D)(i) and 771(5)(E) of the Act, 
respectively.
    Dongbu reported that it did not use the program. POSCO reported 
receiving grants through KNISTRA; however, it claims that the research 
grants it received under the program are tied to non-subject 
merchandise. Upon review of the information submitted by the GOK and 
POSCO, we preliminarily determine that certain grants are tied to non-
subject merchandise, and thus, we did not include these grants in our 
benefit calculations. See GOK's December 21, 2005, Questionnaire 
Response, at Exhibit J-5. However, POSCO also reported receiving 
certain other grants related to a production process that can be used 
for an input into the production of subject merchandise. See POSCO's 
December 21, 2005, Questionnaire Response, at Exhibit 6; and Dongbu's 
December 21, 2005, Questionnaire Response, at Exhibit 6. See the 
Memorandum to the File from Gayle Longest and Robert Copyak, Case 
Analysts, ``Factual Information Regarding the Steel Production 
Process,'' August 31, 2006, which is on file in the Central Records 
Unit, room B-099 the main Commerce Building. Under 19 CFR 
351.525(b)(5), if a subsidy is tied to the production or sale of a 
particular product, the Department will attribute the subsidy only to 
that product. But, under sub-paragraph (ii), if a subsidy is tied to 
the production of an input product, then the Department will attribute 
the subsidy to both the input and downstream products produced by a 
corporation. Accordingly, we have attributed the grant related to a 
production process that can be used as an input into the production of 
subject merchandise to POSCO's total sales.
    To determine the benefit from the grants that POSCO received 
through KNISTRA, we calculated the GOK's contribution for each R&D 
project. Next, in accordance with 19 CFR 351.524(b)(2), we determined 
whether to allocate the non-recurring benefit from the grants over 
POSCO's AUL by dividing the approved amount by POSCO's total sales in 
the year of approval. Because the approved amounts were less than 0.5 
percent of POSCO's total sales in the year of receipt, we expensed the 
grants to the year of receipt. Next, to calculate the net subsidy rate, 
we divided the portion of the benefit allocated to the POR by POSCO's 
total f.o.b. sales during the POR. On this basis, we preliminarily 
determine POSCO's net subsidy rate under this program to be less than 
0.005 percent ad valorem.

D. Exemption of VAT on Imports of Anthracite Coal

    Under Article 106 of Restriction of Special Taxation Act (RSTA), 
imports of anthracite coal are exempt from the value added tax (VAT). 
In the Cold-Rolled Investigation, we determined that the program is de 
jure specific to the steel industry under section 771(5A)(D)(i) of the 
Act, as the items allowed to be imported without paying VAT are limited 
to the production of steel products. See Cold-Rolled Decision 
Memorandum, at ``Exemption of VAT on Imports of Anthracite Coal.'' We 
also determined that the VAT exemptions under the program constitute a 
financial contribution under section 771(5)(D)(ii) of the Act, as the 
GOK is not collecting revenue otherwise due, and that the exemptions 
confer a benefit under section 771(5)(E) of the Act equal to the amount 
of the VAT that would have otherwise been paid if not for the 
exemption. No new information, evidence of changed circumstances, or 
comments from interested parties were presented in this review to 
warrant any reconsideration of the countervailability of this program.
    Dongbu reported that it did not use the program during the POR. 
POSCO imported anthracite coal during the POR and, therefore, received 
a benefit in the amount of the VAT that it would have otherwise paid if 
not for the exemption. To determine POSCO's benefit from the VAT 
exemption on these imports, we calculated the amount of VAT that would 
have been due absent the program on the total value of anthracite coal 
POSCO imported during the POR. We then divided the amount of this tax 
benefit by POSCO's respective total f.o.b. sales. Based upon this 
methodology, we preliminarily

[[Page 53418]]

determine that POSCO received a countervailable subsidy of 0.04 percent 
ad valorem.

E. GOK Infrastructure Investment at Kwangyang Bay Through 1991

    In Steel Products from Korea, the Department investigated the GOK's 
infrastructure investments at Kwangyang Bay over the period 1983-1991. 
We determined that the GOK's provision of infrastructure at Kwangyang 
Bay was countervailable because POSCO was the predominant user of the 
GOK's investments. Dongbu did not use this program. Consistent with 
section 771(5A)(D)(iii) of the Act, the Department has consistently 
held that a countervailable subsidy exists when benefits under a 
program are provided, or are required to be provided, in law or in 
fact, to a specific enterprise or industry or group of enterprises or 
industries. See, e.g., Steel Products from Korea, 58 FR at 37346; and 
CTL Plate Investigation, 64 FR at 73180. No new factual information or 
evidence of changed circumstances has been provided to the Department 
with respect to the GOK's infratructure at Kwangyang Bay over the 
period 1983-1991. Therefore, we preliminarily determine the 
infrastructure investments the GOK provided to POSCO are de facto 
specific within the meaning of section 771(5A)(D)(iii)(II) of the Act. 
Further, we preliminarily determine that the infrastructure investments 
constitute a financial contribution and confer a benefit within the 
meaning of sections 771(5)(D)(i) and 771(5)(E) of the Act, 
respectively.
    To determine the benefit from the GOK's investments to POSCO during 
the POR, we utilized the approach adopted in prior proceedings. See, 
e.g., CTL Plate Investigation, 64 FR at 73180. In measuring the benefit 
from this program, we treated the GOK's costs of constructing the 
infrastructure at Kwangyang Bay as untied, non-recurring grants in each 
year in which the costs were incurred. To calculate the benefit 
conferred during the POR, we applied the Department's standard grant 
methodology and allocated the GOK's infrastructure investments over a 
15-year allocation period. See the ``Average Useful Life'' section, 
above. Using the 15-year allocation period, POSCO is still receiving 
benefits under this program from the GOK investments made during the 
years 1990 through 1991. To calculate the benefit from these grants, we 
used as our discount rate the rate describe above in the ``Subsidies 
Valuation Information'' section. We then summed the benefits received 
by POSCO during the POR from each of the GOK's yearly investments over 
the period 1990-1991. We then divided the total benefit attributable to 
the POR by POSCO's total f.o.b. sales for the POR. On this basis, we 
preliminarily determine POSCO's net countervailable subsidy rate to be 
0.01 percent ad valorem for the POR.

F. Other Subsidies Related to Operations at Asan Bay: Provision of Land 
and Exemption of Port Fees Under Harbor Act

    1. Provision of Land
    As explained in the Cold-Rolled Investigation, the GOK's overall 
development plan is published every 10 years and describes the 
nationwide land development goals and plans for the balanced 
development of the country. Under these plans, the Ministry of 
Construction and Transportation (MOCAT) prepares and updates its Asan 
Bay Area Broad Development Plan. See Cold-Rolled Investigation 
Memorandum, at ``Provision of Land at Asan Bay.'' The Korea Land 
Development Corporation (Koland) is a government investment corporation 
that is responsible for purchasing, developing, and selling land in the 
industrial sites. Id.
    In the Cold-Rolled Investigation, we verified that the GOK, in 
setting the price per square meter for land at the Kodai industrial 
estate, removed the 10 percent profit component from the price charged 
to Dongbu. Id. In the Cold-Rolled Investigation, we further explained 
that companies purchasing land at Asan Bay must make payments on the 
purchase and development of the land before the final settlement. 
However, in the case of Dongbu, we found that the GOK provided an 
adjustment to Dongbu's final payment to account for ``interest earned'' 
by the company for the pre-payments. Id. POSCO did not use this 
program.
    In the Cold-Rolled Investigation, we determined that the price 
discount and the adjustment of Dongbu's final payment to account for 
``interest earned'' by the company on its pre-payments were 
countervailable subsidies. Specifically, the Department determined that 
they were specific under section 771(5A)(D)(iii)(I) of the Act, as they 
were limited to Dongbu. Id. Further, the Department found the price 
discount and the price adjustment for ``interest earned'' constituted 
financial contributions and conferred benefits under sections 
771(5)(D)(i) and 771(5)(E) of the Act, respectively. Id.
    Consistent with the Cold-Rolled Investigation, we have treated the 
land price discount and the interested earned refund as non-recurring 
subsidies. Id. In accordance with 19 CFR 351.524(b)(2), because the 
grant amounts were more than 0.5 percent of the company's total sales 
in the year of receipt, we applied the Department's standard grant 
methodology, as described under 19 CFR 351.524(d)(1), and allocated the 
subsidies over a 15-year allocation period. See the ``Average Useful 
Life'' section, above. To calculate the benefit from these grants, we 
used as our discount rate the rates describe above in the ``Subsidies 
Valuation Information'' section. We then summed the benefits received 
by Dongbu during the POR. We calculated the net subsidy rate by 
dividing the total benefit attributable to the POR by Dongbu's total 
f.o.b. sales for the POR. On this basis, we determine a net 
countervailable subsidy rate for Dongbu of 0.22 percent ad valorem for 
the POR.
    2. Exemption of Port Fees Under Harbor Act
    Under the Harbor Act, companies are allowed to construct 
infrastructure facilities at Korean ports; however, these facilities 
must be deeded back to the government. Because the ownership of these 
facilities reverts to the government, the government compensates 
private parties for the construction of these infrastructure 
facilities. Because a company must transfer to the government its 
infrastructure investment, under the Harbor Act, the GOK grants the 
company free usage of the facility and the right to collect fees from 
other users of the facility for a limited period of time. Once a 
company has recovered its cost of constructing the infrastructure, the 
company must pay the same usage fees as other users of the 
infrastructure.
    In the Cold-Rolled Investigation, the Department found that Dongbu 
received free use of harbor facilities at Asan Bay based upon both its 
construction of a port facility as well as a road that the company 
built from its plant to its port. The Department also determined that 
Dongbu received an exemption of harbor fees for a period of almost 70 
years under this program. See Cold-Rolled Decision Memorandum, at 
``Dongbu's Excessive Exemptions under the Harbor Act.'' In the Cold-
Rolled Investigation, the Department found the exemption from the fees 
to be a countervailable subsidy. No new information of changed 
circumstances, or comments from interested parties were presented in 
this review to warrant any reconsideration of the countervailability of 
this program. Thus, we preliminarily determine that the program is 
specific under section 771(5A)(D)(iii)(I) of the Act because the 
excessive exemption period of 70 years

[[Page 53419]]

is limited to Dongbu. Moreover, we preliminarily determine that the GOK 
is foregoing revenue that it would otherwise collect by allowing Dongbu 
to be exempt from port charges for up to 70 years and, thus, the 
program constitutes a financial contribution within the meaning of 
section 771(5)(D)(ii) of the Act. Further, we preliminarily determine 
that the exemptions confer a benefit under section 771(5)(E) of the 
Act. Id. No new information, evidence of changed circumstances, or 
comments from interested parties were presented in this review to 
warrant any reconsideration of the countervailability of this program. 
Thus, for purposes of these preliminary results, we continue to find 
this aspect of the program countervailable.
    In the Cold-Rolled Investigation, the Department treated the 
program as a non-recurring subsidy and determined that the benefit is 
equal to the average yearly amount of harbor fees exemptions provided 
to Dongbu. Id. For purposes of these preliminary results, we have 
employed the same benefit calculation. To calculate the net subsidy 
rate, we divided the average yearly amount of exemptions by Dongbu's 
total f.o.b. sales for the POR. On this basis, we preliminarily 
determine that Dongbu's net subsidy rate under this program is 0.02 
percent ad valorem.

G. Short-Term Export Financing

    The Korean Export Import Bank (KEXIM) supplies two types of short-
term loans for exporting companies, short-term trade financing and 
comprehensive export financing. KEXIM provides short-term loans to 
Korean exporters who manufacture export goods under export contracts. 
The loans are provided up to the amount of the bill of exchange or 
contracted amount less any amount already received. For comprehensive 
export financing loans, KEXIM supplies short-term loans to any small or 
medium-sized company, or any large company that is not included in the 
five largest conglomerates based on their comprehensive export 
performance. To obtain the loans, companies must report their export 
performance periodically to KEXIM for review. Comprehensive export 
financing loans cover from 50 to 90 percent of the company's export 
performance; however, the maximum loan amount is restricted to 30 
billion won.
    In Steel Products from Korea, the Department determined that the 
GOK's short-term export financing program was countervailable. See 
Steel Products from Korea, 58 FR at 37350; see also, Cold-Rolled 
Decision Memorandum, at ``Short-term Export Financing.'' No new 
information, evidence of changed circumstances, or comments from 
interested parties were presented in this review to warrant any 
reconsideration of the countervailability of this program. Therefore, 
we continue to find this program countervailable. Specifically, we 
preliminarily determine that the program is specific, pursuant section 
771(5A)(B), because receipt of the financing is contingent upon 
exporting. In addition, we preliminarily determine that the export 
financing constitutes a financial contribution in the form of a loan 
within the meaning of section 771(D)(i) of the Act and confers a 
benefit within the meaning of section 771(E)(ii) of the Act. POCOS, 
POSCO's affiliate, and Dongbu reported using short-term export 
financing during the POR.
    Pursuant to 19 CFR 351.505(a)(1), to calculate the benefit under 
this program, we compared the amount of interest paid under the program 
to the amount of interest that would have been paid on a comparable, 
commercial loan. As our benchmark, we used the short-term interest 
rates discussed above in the ``Subsidies Valuation Information'' 
section. To calculate the net subsidy rate, we divided the benefit by 
the f.o.b. value of the respective company's total exports. On this 
basis, we determine the net subsidy rate for POSCO to be less than 
0.005 percent ad valorem and 0.01 percent ad valorem for Dongbu.

II. Program Preliminarily Determined Not to Confer a Benefit

A. Reserve for Research and Manpower Development Fund Under RSTA 
Article 9 (Formerly Article 8 of TERCL)

    On December 28, 1998, the TERCL was replaced by the Tax Reduction 
and Exemption Control Act (RSTA). Pursuant to this change in law, TERCL 
Article 8 is now identified as RSTA Article 9. Apart from the name 
change, the operation of RSTA Article 9 is the same as the previous 
TERCL Article 8 and its Enforcement Decree.
    This program allows a company operating in manufacturing or mining, 
or in a business prescribed by the Presidential Decree, to appropriate 
reserve funds to cover expenses related to the development or 
innovation of technology. These reserve funds are included in the 
company's losses and reduce the amount of taxes paid by the company. 
Under this program, capital goods companies and capital intensive 
companies can establish a reserve of five percent of total revenue, 
while companies in all other industries are only allowed to establish a 
three- percent reserve.
    In the CTL Plate Investigation, we determined that this program is 
specific under section 771(5A)(D) of the Act because the capital goods 
industry is allowed to claim a larger tax reserve under this program 
than all other manufacturers. See CTL Plate Investigation, 64 FR at 
73181. We also determined that this program provides a financial 
contribution within the meaning of section 771(5)(D)(ii) of the Act in 
the form of revenue forgone and that it provides benefit under section 
771(5)(E) of the Act to the extent that companies in the capital goods 
industry, which includes steel manufacturers, pay less in taxes than 
they would absent the program. Id. In the Cold-Rolled Investigation, we 
continued to find the program countervailable, but found that the 
company under review only contributed to the reserve at the lower 
three-percent rate. Therefore, we found no countervailable benefit 
because it is not specific as all industries and companies in Korea can 
establish a three-percent reserve. See Cold-Rolled Decision Memorandum, 
at ``Programs Determined to be Not Used'' (finding the countervailable 
aspect of this program to be not used). No new information, or evidence 
of changed circumstances, was presented in this review to warrant 
reconsideration of the approaches adopted in the CTL Plate 
Investigation and the Cold-Rolled Investigation.
    In this administrative review, Dongbu, POSCO, and POCOS each 
reported contributing to the reserve at the three-percent rate during 
the POR. Dongbu also reported that it returned the remaining balance 
from the reserve. We continue to find this program to be potentially 
countervailable. However, as each company contributed to the reserve at 
the lower three-percent rate, and in light of the Department's approach 
in the Cold-Rolled Investigation, we preliminarily determine that no 
countervailable benefits were conferred under this program during the 
POR.

III. Programs Preliminarily Determined To Be Not Used

    A. Reserve for Investment (Special Cases of Tax for Balanced 
Development Among Areas under TERCL Articles 41-45)
    B. Electricity Discounts under the Requested Loan Adjustment (RLA) 
Program
    C. Electricity Discounts under the Emergency Load Reductions (ELR) 
Program
    D. Export Industry Facility Loans (EIFL) and Specialty Facility 
Loans
    E. Reserve for Overseas Market

[[Page 53420]]

Development under TERCL Article 17
    F. Equipment Investment to Promote Worker's Welfare under TERCL 
Article 88
    G. Emergency Load Reduction Program
    H. Local Tax Exemption on Land Outside of Metropolitan Area
    I. Excessive Duty Drawback
    J. Private Capital Inducement Act (PCIA)
    K. Social Indirect Capital Investment Reserve Funds (Art. 28)
    L. Energy-Savings Facilities Investment Reserve Funds (Art. 29)
    M. Scrap Reserve Fund
    N. Special Depreciation of Assets on Foreign Exchange Earnings
    O. Export Insurance Rates Provided by the Korean Export Insurance 
Corporation
    P. Loans from the National Agricultural Cooperation Federation
    Q. Tax Incentives for Highly-Advanced Technology Businesses under 
the Foreign Investment and Foreign Capital Inducement Act

IV. Program Preliminarily Determined To Be Not Countervailable

    A. Tax Credit for Improving Enterprise's Bill System under Article 
7-2 of RSTA
    During the POR, POSCO applied for a tax credit under this program. 
The GOK states that the program permits any company who uses a modern 
corporate billing/promissory note system to make payments for its 
purchases from small or medium enterprises to be eligible to claim a 
tax credit on its income taxes. The GOK provided the Department with 
the language of the regulation, which allows for three possible methods 
of payment: (a) issuing a bill of exchange or settling a request for 
collection of sale proceeds, (b) using an exclusive-use card for 
business purchase, or (c) using a loan system against security of 
credit sales claims. The tax credit is calculated as 0.3 percent of 
total amount paid pursuant to these methods described, but not 
exceeding 10 percent of a company's corporate income tax amount.
    We preliminarily determine that the tax credit under Article 7-2 of 
RSTA is not de jure specific within the meaning of section 771(5A) of 
the Act because (1) it is not based on exportation; (2) it is not 
contingent on the use of domestic goods over imported goods; and (3) 
the legislation and/or regulations do not expressly limit the access to 
the subsidy to an enterprise or industry, as a matter of law.
    As the Department is preliminarily determining that the tax credit 
under Article 7-2 of RSTA is not de jure specific, it must then examine 
the program under section 771(5A)(D)(iii) of the Act. The Department 
will determine that the program is de facto specific if the Department 
finds that one or more of the following factors exist:
    (I) The actual recipients of the subsidy, whether considered on an 
enterprise or industry basis, are limited in number.
    (II) An enterprise or industry is a predominant user of the 
subsidy.
    (III) An enterprise or industry receives a disproportionately large 
amount of the subsidy.
    (IV) The manner in which the authority providing the subsidy has 
exercised discretion in the decision to grant the subsidy indicates 
that an enterprise or industry is favored over others.
    Pursuant to section 771(5A)(D)(iii)(I) of the Act, the Department 
preliminarily finds that under the tax credit under Article 7-2 of 
RSTA, the actual recipients of the subsidy are not limited in number. 
See GOK's December 21, 2005, Submission at Exhibit B-1.
    Sections 771(5A)(D)(iii)(II) and (III) of the Act direct the 
Department to examine whether an enterprise or an industry is a 
predominant user of the subsidy or receives a disproportionately large 
amount of the subsidy. There is nothing on the record to indicate that 
the steel industry received a greater monetary benefit from the program 
than did other participants or that the steel industry was a dominant 
user or received disproportionate benefits. Rather, the GOK states that 
the tax credit is widely available and can be used by any Korean 
company, regardless of industry and location, by claiming the tax 
credit on the tax return. See GOK's December 21, 2005, Submission, at 
12.
    Therefore, we preliminarily determine that the information on the 
record does not support a conclusion that the percentage of the 
benefits POSCO or the steel industry received were disproportionately 
high or that the company or the industry was a dominant user. 
Accordingly, we preliminarily find that the tax credit under Article 7-
2 of RSTA is not de facto specific and is, therefore, not 
countervailable.

Preliminary Results of Review

    In accordance with 19 CFR 351.221(b)(4)(i), we calculated an 
individual subsidy rate for each of the producer/exporters subject to 
this administrative review. For the period January 1, 2004, through 
December 31, 2004, we preliminarily determine the net subsidy rate for 
POSCO to be 0.07 percent ad valorem and preliminary determine the the 
net subsidy rate for Dongbu to be 0.39 percent ad valorem, both of 
which are de minimis. See 19 CFR 351.106(c)(1).
    If the final results of this review remain the same as these 
preliminary results, the Department will instruct U.S. Customs and 
Border Protection (CBP), within 15 days of publication of the final 
results, to liquidate shipments of corrosion-resistant carbon steel 
flat products entered, or withdrawn from warehouse, for consumption 
from January 1, 2004, through December 31, 2004, at the rates indicated 
above. Also, the Department will instruct CBP to require new cash 
deposit rates for estimated countervailing duties of 0.00 percent for 
all shipments of corrosion-resistant carbon steel flat products from 
POSCO and Dongbu, entered, or withdrawn from warehouse, for consumption 
on or after the date of publication of the final results of this 
administrative review.
    We will instruct CBP 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 companies covered by this order, but not 
examined in this review, are those established in the most recently 
completed administrative proceeding for each company. These rates shall 
apply to all non-reviewed companies until a review of a company 
assigned these rates is requested.

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 the public 
announcement of this notice. Pursuant to 19 CFR 351.309, interested 
parties may submit written comments in response to these preliminary 
results. Unless otherwise indicated by the Department, case briefs must 
be submitted within 30 days after the publication of these preliminary 
results. See 19 CFR 351.309 (c). Rebuttal briefs, which are limited to 
arguments raised in case briefs, must be submitted no later than five 
days after the time limit for filing case briefs, unless otherwise 
specified by the Department. See 19 CFR 351.309(d). Parties who submit

[[Page 53421]]

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. 
Parties submitting case and/or rebuttal briefs are requested to provide 
the Department copies of the public version on disk. 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.
    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 CFR 351.309(c)(ii), 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 is issued and published in accordance 
with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 
351.221(b)(4).

    Dated: August 31, 2006.
David M. Spooner,
Assistant Secretaryfor Import Administration.
[FR Doc. E6-14916 Filed 9-8-06; 8:45 am]
BILLING CODE 3510-DS-S