Carbon and Certain Alloy Steel Wire Rod From the People's Republic of China: Final Affirmative Countervailing Duty Determination and Final Affirmative Critical Circumstances Determination, 68858-68859 [2014-27410]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 79, Number 223 (Wednesday, November 19, 2014)]
[Notices]
[Pages 68858-68859]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-27410]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-013]


Carbon and Certain Alloy Steel Wire Rod From the People's 
Republic of China: Final Affirmative Countervailing Duty Determination 
and Final Affirmative Critical Circumstances Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of carbon and certain alloy steel wire rod (steel wire rod) from the 
People's Republic of China (PRC) as provided in section 705 of the 
Tariff Act of 1930, as amended (the Act). The period of investigation 
(POI) is January 1, 2013, through December 31, 2013. For information on 
the estimated subsidy rates, see the ``Suspension of Liquidation'' 
section of this notice.

DATES: Effective Date: November 19, 2014.

FOR FURTHER INFORMATION CONTACT: Rebecca Trainor or Reza Karamloo, 
Office II, AD/CVD Operations, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
4007 and (202) 482-4470, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The petitioners in this investigation are ArcelorMittal USA LLC, 
Charter Steel, Evraz Pueblo (formerly Evraz Rocky Mountain Steel), 
Gerdau Ameristeel U.S. Inc., Keystone Consolidated Industries, Inc. and 
Nucor Corporation. In addition to the Government of the PRC, the 
mandatory respondents in this investigation are Benxi Beiying Iron & 
Steel Group Import & Export Corp., Benxi Beiying Iron & Steel (Group) 
Co. Ltd. (collectively, Benxi Steel) and Hebei Iron & Steel Co. Ltd. 
Tangshan Branch (Hebei Iron & Steel).
    The events that have occurred since the Department published the 
Preliminary Determination \1\ on July 8, 2014, are discussed in the 
Issues and Decision Memorandum, which is hereby incorporated in this 
notice.\2\ This memorandum also details the changes we made since the 
Preliminary Determination to the subsidy rates calculated for the 
mandatory respondents and all other producers/exporters. The Issues and 
Decision Memorandum is a public document and is on file electronically 
via Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (IA ACCESS). IA ACCESS is 
available to registered users at https://iaaccess.trade.gov, and is 
available to all parties in the Central Records Unit, Room 7046 of the 
main Department of Commerce building. In addition, a complete version 
of the Issues and Decision Memorandum can be accessed directly at 
https://enforcement.trade.gov/frn/. The signed Issues and 
Decision Memorandum and the electronic version of the Issues and 
Decision Memorandum are identical in content.
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    \1\ See Carbon and Certain Alloy Steel Wire Rod from the 
People's Republic of China: Preliminary Affirmative Countervailing 
Duty Determination, Preliminary Affirmative Critical Circumstances 
Determination, and Alignment of Final Countervailing Duty 
Determination with Final Antidumping Duty Determination, 79 FR 38490 
(July 8, 2014) (Preliminary Determination) and accompanying Decision 
Memorandum (Preliminary Decision Memorandum).
    \2\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance, 
``Issues and Decision Memorandum for the Final Determination in the 
Countervailing Duty Investigation of Certain Carbon and Alloy Steel 
Wire Rod from the People's Republic of China,'' dated concurrently 
with this notice (Issues and Decision Memorandum).
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Scope of the Investigation

    The scope of this investigation covers certain hot-rolled products 
of carbon steel and alloy steel, in coils, of approximately circular 
cross section, less than 19.00 mm in actual solid cross-sectional 
diameter. Specifically excluded are steel products possessing the 
above-noted physical characteristics and meeting the Harmonized Tariff 
Schedule of the United States (HTSUS) definitions for (a) stainless 
steel; (b) tool steel; (c) high nickel steel; (d) ball bearing steel; 
or (e) concrete reinforcing bars and rods. Also excluded are free 
cutting steel (also known as free machining steel) products (i.e., 
products that contain by weight one or more of the following elements: 
0.1 percent or more of lead, 0.05 percent or more of bismuth, 0.08 
percent or more of sulfur, more than 0.04 percent of phosphorus, more 
than 0.05 percent of selenium, or more than 0.01 percent of tellurium). 
All products meeting the physical description of subject merchandise 
that are not specifically excluded are included in this scope.
    The products under investigation are currently classifiable under 
subheadings 7213.91.3011, 7213.91.3015, 7213.91.3020, 7213.91.3093, 
7213.91.4500, 7213.91.6000, 7213.99.0030, 7227.20.0030, 7227.20.0080, 
7227.90.6010, 7227.90.6020, 7227.90.6030, and 7227.90.6035 of the 
HTSUS. Products entered under subheadings 7213.99.0090 and 7227.90.6090 
of the HTSUS also may be included in this scope if they meet the 
physical description of subject merchandise above. Although the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the scope of this proceeding is dispositive.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum, dated concurrently 
with this notice. A list of the issues that parties have raised, and to 
which we responded in the Issues and Decision Memorandum, is attached 
to this notice as Appendix I.

Use of Facts Otherwise Available, Including Adverse Inferences

    For purposes of this final determination, we continue to rely on 
facts available and to draw an adverse inference, in accordance with 
sections 776(a) and (b) of the Act, to determine the subsidy rate for 
Hebei Iron & Steel, because it failed to participate in this 
investigation.\3\ On July 11, 2014, Benxi Steel notified the Department 
that it was withdrawing from participation in the investigation. By 
refusing to participate

[[Page 68859]]

futher in the investigation, Benxi Steel withheld requested information 
and significantly impeded this proceeding. Thus, for the final 
determination we are basing the countervailing duty rate for Benxi 
Steel on facts otherwise available pursuant to sections 776(a)(2)(A), 
(B), (C), and (D) of the Act. Because Benxi Steel did not cooperate to 
the best of its ability in this investigation, we further determine 
that an adverse inference is warranted, pursuant to section 776(b) of 
the Act. For a full discussion of these issues, see the Issues and 
Decision Memorandum.
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    \3\ See Preliminary Decision Memorandum at 14-19.
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Critical Circumstances

    In the Preliminary Determination, the Department concluded, in 
accordance with section 703(e)(1) of the Act, that critical 
circumstances exist with respect to imports of steel wire rod from the 
PRC produced and/or exported by Hebei Iron & Steel and all other 
producers/exporters except for Benxi Steel.\4\ For the final 
determination we have changed our findings with respect to Benxi 
Steel.\5\ Therefore, in accordance with section 705(a)(2) of the Act, 
we find that critical circumstances exist with respect to imports from 
Benxi Steel, Hebei Iron & Steel, and all other producers/exporters of 
steel wire rod from the PRC.
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    \4\ See Preliminary Determination, 79 FR at 38591.
    \5\ See Issues and Decision Memorandum at ``VI. Critical 
Circumstances.''
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Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated separate subsidy rates for the individually-investigated 
producers/exporters of the subject merchandise, Benxi Steel and Hebei 
Iron & Steel. Section 705(c)(5)(A)(ii) of the Act provides that, if the 
countervailable subsidy rates established for all individually-
investigated exporters and producers are determined entirely under 
section 776 of the Act, the Department may use any reasonable method to 
establish an all-others rate for exporters and producers not 
individually investigated. In this case, the rates calculated for the 
two investigated companies are based entirely on facts available under 
section 776 of the Act. As there is no other information on the record, 
we based the all-others rate on the AFA rates calculated for Benxi 
Steel and Hebei Iron & Steel, consistent with our past practice.\6\ We 
calculated the all-others rate by averaging these two rates.
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    \6\ See Raw Flexible Magnets from the People's Republic of 
China: Affirmative Countervailing Duty Determination, 73 FR 39667 
(July 10, 2008); Final Affirmative Countervailing Duty 
Determination: Certain Hot-Rolled Carbon Steel Flat Products From 
Argentina, 66 FR 37007, 37008 (July 16, 2001); Final Affirmative 
Countervailing Duty Determination: Prestressed Concrete Steel Wire 
Strand From India, 68 FR 68356, 68357 (December 8, 2003).
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    We determine the total estimated net countervailable subsidy rates 
to be:
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    \7\ The companies comprising Benxi Steel are: Benxi Beiying Iron 
& Steel Group Import & Export Corp.; Benxi Beiying Iron & Steel 
(Group) Co. Ltd.; Benxi Steel Group Corporation; Beitai Iron & Steel 
(Group) Co., Ltd.; Benxi Northern Steel Rolling Co., Ltd.; Benxi 
Beifang Gaosu Steel Wire Rod Co., Ltd.; Benxi Beitai Gaosu Steel 
Wire Rod Co., Ltd.; Benxi Northern Steel Co., Ltd.; Benxi Beifang 
Second Rolling Co., Ltd.; Benxi Beitai Ductile Iron Pipes Co., Ltd.; 
Benxi Iron and Steel (Group) Metallurgy Co., Ltd.; Benxi Iron and 
Steel (Group) Real Estate Development Co., Ltd.; Bei Tai Iron and 
Steel Group Imp. and Exp. (Dalian) Co., Ltd.; and Bengang Steel 
Plate Co., Ltd.

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                                                           Subsidy rate
                         Company                             (percent)
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Benxi Steel \7\.........................................          193.31
Hebei Iron & Steel......................................          178.46
All Others..............................................          185.89
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    As a result of our affirmative preliminary critical circumstances 
determination with respect to all companies other than Benxi Steel, 
pursuant to section 703(e)(2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of all entries of 
subject merchandise from companies other than Benxi Steel which were 
entered or withdrawn from warehouse, for consumption on or after April 
9, 2014, the date 90 days prior to the date of the publication of the 
Preliminary Determination in the Federal Register. As a result of our 
negative preliminary critical circumstances determination with respect 
to Benxi Steel, we instructed CBP to suspend liquidation as of July 8, 
2014, the publication date of the Preliminary Determination.
    In accordance with section 703(d) of the Act, we later issued 
instructions to CBP to discontinue the suspension of liquidation for 
countervailing duty purposes for subject merchandise entered, or 
withdrawn from warehouse, on or after November 5, 2014, but to continue 
the suspension of liquidation of all entries from April 9, 2014 through 
November 4, 2014, as appropriate.
    We will issue a countervailing duty order and reinstate the 
suspension of liquidation in accordance with our final determination 
and under section 706(a) of the Act if the United States International 
Trade Commission (ITC) issues a final affirmative injury determination, 
and we will instruct CBP to require a cash deposit of estimated 
countervailing duties for such entries of merchandise in the amounts 
indicated above. If the ITC determines that material injury, or threat 
of material injury, does not exist, this proceeding will be terminated 
and all estimated duties deposited as a result of the suspension of 
liquidation will be refunded.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, eiher publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to the APO of their responsibility concerning the destruction 
of proprietary information disclosed under APO in accordance with 19 
CFR 351.305(a)(3). Timely written notification of the return/
destruction of APO materials or conversion to judicial protective order 
is hereby requested. Failure to comply with the regulations and terms 
of an APO is a violation which is subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: November 12, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary and Issues
    1. Application of Adverse Facts Available (AFA) to Hebei Iron & 
Steel and Benxi Steel
    2. AFA Rates for Hebei Iron & Steel and Benxi Steel
    3. Calculation of the All-Others Rate
    4. Critical Circumstances
II. Background
III. Application of the Countervailing Duty Law to Imports from the 
PRC
IV. Use of Facts Otherwise Available and Adverse Inferences
V. Critical Circumstances
VI. Analysis of Comments
VII. Recommendation

[FR Doc. 2014-27410 Filed 11-18-14; 8:45 am]
BILLING CODE 3510-DS-P