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This tabulation indicates a substantial increase in capacity utilization of cold-rolled sheet facilities due to increases in both domestic shipments and exports.

The amounts of total exports and exports to the United States of cold-rolled sheets from Argentina, as shown in the followling tabulation, indicate that the United States is the major export market for Argentine cold-rolled sheets.

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Cold-rolled carbon steel plates and sheets are flat-rolled products produced by processing hot-rolled, pickled (cleaned) carbon steel plates or sheets in cold-reduction mills. They are considered to be finished products and are distinguished from other flat-rolled products by their dimensional characteristics. For purposes of these investigations, cold-rolled carbon steel plates and sheets are defined as flat-rolled carbon steel products; whether or not corrugated or crimped, whether or not coiled, and whether or not pickled; over 12 inches in width; not cut, not pressed, and not stamped to nonrectangular shape; not coated or plated with metal and not clad.

Cold-rolled carbon steel plates are 0.1875 inch or more in thickness and are provided for in TSUSA item 607.8320; cold-rolled carbon steel sheets are less than 0.1875 inch in thickness and are provided for in TSUSA items 607.8350, 607.8355, and 607.8360. Although cold-rolled plates are included within the scope of the investigations, imports of such products are believed to be negligible. Accordingly, imports under item 607.8320, which are believed to consist principally of pickled plates, are not included in the statistical data presented in this report.

The production of cold-rolled sheets begins with a coil of hot-rolled sheets, which is decoiled, pickled, dried, oiled, and recoiled. It is then sent to a cold-reduction mill (so called because the steel is passed through a series of reducing rolls without being reheated) to emerge as a thinner product, with a smoother finish and a higher strength-to-weight ratio than can be achieved by hot-rolling alone. The sheets are then coiled and, usually, annealed (heat treated) to restore the ductility lost during cold rolling. A portion, however, is sold in an unannealed, "full hard" condition. After the steel has been softened in the annealing furnace, it is passed through a temper mill, which finishes the cold-rolled sheets by imparting additional hardness, flatness, and surface quality. The product is then shipped to consumers in coils or cut lengths.

Cold-rolled carbon steel sheets are the largest volume single steel mill product, having accounted for 22 percent of total U.S. producers' shipments of all carbon steel products (and 19 percent of such shipments of all steel mill products) in 1983. Major consumer markets for cold-rolled sheets are shown in

table 3. The automotive industry, the largest single consumer of cold-rolled sheet accounted for, on average, 33 percent of cold-rolled sheet shipments during 1981-83; shipments to steel service centers (SSC's) averaged 27 percent over the same period. Other end markets for cold-rolled sheets include the electrical equipment and appliance industries.

Table 3. Cold-rolled carbon steel sheets: U.S. producers' shipments, by major markets, 1981-83, January-September 1983, and January-September 1984

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Note. Because of rounding, figures may not add to the totals shown.

U.S. tariff treatment

As mentioned, imports of cold-rolled carbon steel plates and sheets 1/ are classified for tariff purposes under TSUSA items 607.8320 (plates), 607.8350 (painted or varnished sheets), 607.8355 (annealed sheets not painted or varnished and having a minimum yield point of 40,000 pounds per square inch (psi)), and 607.8360 (all other cold-rolled sheets). The current column 1 or most-favored-nation (MFN) rate of duty, 2/ final column 1 concession rate

1/ Not coated or plated with metal and not clad.

2/ The col. 1 rate is applicable to imported products from all countries except those Communist countries and areas enumerated in general headnote 3 (f) of the TSUSA. However, these rates would not apply to products of countries where such articles are eligible for preferential treatment provided under the Caribbean Basin Initiative (CBI) or under the "LDDC" column. The People's Republic of China, Hungary, Romania, and Yugoslavia are the only Communist countries currently eligible for MFN treatment.

granted under the Tokyo round of the Multilateral Trade Negotiations (MTN), 1/ the rate of duty for least developed developing countries (LDDC's), 2/ and the column 2 duty rate 3/ for these items are shown in the following tabulation (in percent ad valorem and cents per pound):

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Imports of cold-rolled carbon steel plates and sheets, if the product of designated beneficiary countries, are eligible for duty-free entry under the CBI. 4/

In addition to the import duties shown above, countervailing duty orders are currently in effect with respect to imports from Argentina, Brazil, Korea, South Africa, and Spain. 5/ In other actions in recent years, the Commission determined that an industry in the United States was not materially injured, or threatened with material injury, by reason of LTFV imports from Brazil and that there was no reasonable indication that an industry in the United States was being materially injured, or threatened with material injury, by reason of allegedly subsidized imports from Belgium, Korea, Luxembourg, and the United Kingdom. Similar determinations were made in cases on allegedly LTFV imports from Belgium, Luxembourg, and the United Kingdom.

1/ Final concession rates granted under the Tokyo round of the MTN are the result of staged duty reductions of col. 1 rates which began Jan. 1, 1980. The reductions will occur annually, with the final rates becoming effective Jan. 1, 1987.

2/ The preferential rates in the "LDDC" column reflect the full U.S. MTN concession rates implemented without staging for particular items and apply to covered products of the LDDC's enumerated in general headnote 3 (d) of the TSUSA. Where no rate of duty is provided in the "LDDC" column for a particular item, the rate of duty in col. 1 applies.

3/ The rates of duty in col. 2 apply to imported products from those Communist countries and areas enumerated in general headnote 3 (f) of the TSUSA. 4/ The CBI is a program of nonreciprocal tariff preferences granted by the United States to developing countries in the Caribbean Basin area to aid their economic development by encouraging greater diversification and expansion of their production and exports. The CBI, as enacted in title II of Public Law 98-67 and implemented by Presidential Proclamation No. 5133 of Nov. 30, 1983, applies to merchandise entered, or withdrawn from warehouse for consumption, on or after Jan. 1, 1984, and is scheduled to remain in effect until Sept. 30, 1995. It provides duty-free entry to eligible articles imported directly from designated countries in the Caribbean Basin area.

5/ Net subsidy and dumping margins for current investigations, outstanding countervailing duty orders issued since January 1983, and terminated (other than negative) title VII cases since January 1983 are presented in table 4. The weighted-average subsidies for other countries are 38.25 percent for Spain and 0 percent for South Africa.

Table 4.--Cold-rolled carbon steel sheets:

Pending title VII investigations and outstanding countervailing orders since January 1983, most recent dumping/subsidy margins, by countries and by firms, 1981-83, January-September 1983, and January-September 1984

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3/ This is a new case (USITC notice of investigation: 50 FR 186 (Jan. 2, 1984)). To date, there is no determination of sales at less than fair value by Commerce nor requirement for the posting of bond. 4/ Only imports classifiable under TSUSA item 607.8360 are currently subject to investigation. ratio shown is of imports from Finland under TSUSA item 607.8360 to total apparent consumption of cold-rolled sheets and therefore may be understated. Although apparent U.S. consumption of those cold-rolled carbon steel sheets classifiable under TSUSA item 607.8360 are not available, it is believed to account for the bulk of consumption of all cold-rolled carbon steel sheets.

5/ This is a new case (USITC notice of investigation: 50 FR 186 (Jan. 2, 1984)). To date, there is no determination of imports of products receiving countervailable subsidies nor requirement for the posting of bond.

Petitioners withdrew unfair trade complaints involving cold-rolled sheets from France, Italy, the Netherlands, and West Germany in order to bring into effect the Arrangement Concerning Trade in Certain Steel Products, which was concluded by the European Coal and Steel Community and the United States in October 1982. Under the Arrangement, exports from the EC to the United States of 10 categories of steel products are to be limited to specified shares of apparent U.S. consumption from November 1, 1982, through December 31, 1985. Cold-rolled carbon steel sheets are included in a category in which exports are limited to 5.11 percent of consumption.

As previously mentioned in the background section of this report, complaints involving allegedly LTFV imports from South Africa and Spain were withdrawn by the petitioner.

U.S. Producers

There were 14 known firms in the United States producing cold-rolled carbon steel sheets during 1982 and 1983. Most of these firms are located in the Great Lakes region and Pennsylvania. The following tabulation, which was compiled from data obtained in response to the Commission's questionnaires, shows the principal producers and each firm's share of total U.S. producers' shipments of cold-rolled sheets, as reported by the AISI, in 1983:

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