Certain Hot-Rolled Steel Flat Products from Australia, Brazil, Japan, the Republic of Korea, the Netherlands, the Republic of Turkey, and the United Kingdom: Initiation of Less-Than-Fair-Value Investigations, 54261-54267 [2015-22557]
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Federal Register / Vol. 80, No. 174 / Wednesday, September 9, 2015 / Notices
the Illinois Advisory Committee
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Agenda
Welcome and Introductions
Chair Appointment Discussion
Committee Roles and Responsibilities
Ethics
Jurisdiction and Scope of Duties
Project Process and Examples
Project Discussion
Current Civil Rights Issues in
Wisconsin
Future Plans and Actions
Open Comment
Adjournment
DATES: The meeting will be held on
Tuesday, October 06, 2015, at 12:00
p.m. CDT.
antidumping duty (AD) Petitions
concerning imports of certain hot-rolled
steel flat products (hot-rolled steel) from
Australia, Brazil, Japan, Korea, the
Netherlands, Turkey, and the United
Kingdom, filed in proper form on behalf
of AK Steel Corporation, ArcelorMittal
USA LLC, Nucor Corporation, SSAB
Enterprises, LLC, Steel Dynamics, Inc.,
and United States Steel Corporation
(Petitioners).1 The AD Petitions were
accompanied by three countervailing
duty (CVD) Petitions.2 Petitioners are
domestic producers of hot-rolled steel.3
On August 14, 2015, the Department
requested additional information and
clarification of certain areas of the
Public Call Information
Petitions.4 Petitioners filed responses to
Dial: 888–395–3227
these requests on August 18, 2015,
Conference ID: 2301980
August 20, 2015, and August 26, 2015.5
In accordance with section 732(b) of
FOR FURTHER INFORMATION CONTACT:
the Tariff Act of 1930, as amended (the
Melissa Wojnaroski, DFO, at 312–353–
Act), Petitioners allege that imports of
8311 or mwojnaroski@usccr.gov.
hot-rolled steel from Australia, Brazil,
Dated: September 3, 2015.
Japan, Korea, the Netherlands, Turkey,
David Mussatt,
and the United Kingdom, are being, or
Chief, Regional Programs Unit.
are likely to be, sold in the United States
[FR Doc. 2015–22651 Filed 9–8–15; 8:45 am]
at less-than-fair value within the
BILLING CODE 6335–01–P
meaning of section 731 of the Act, and
that such imports are materially
injuring, or threatening material injury
DEPARTMENT OF COMMERCE
to, an industry in the United States.
Also, consistent with section 732(b)(1)
International Trade Administration
of the Act, the Petitions are
[A–602–809, A–351–845, A–588–874, A–580– accompanied by information reasonably
available to Petitioners supporting their
883, A–421–813, A–489–826, A–412–825]
allegations.
Certain Hot-Rolled Steel Flat Products
1 See Petitions for the Imposition of Antidumping
from Australia, Brazil, Japan, the
Duties on Imports of Certain Hot-Rolled Steel Flat
Republic of Korea, the Netherlands,
the Republic of Turkey, and the United Products from Australia, Brazil, Japan, Korea, the
Netherlands, Turkey, and the United Kingdom,
Kingdom: Initiation of Less-Than-Fairdated August 11, 2015 (the Petitions).
2 See the Petitions for the Imposition of
Value Investigations
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Effective: September 9, 2015.
FOR FURTHER INFORMATION CONTACT:
Alexis Polovina at (202) 482–3927
(Australia); Yang Jin Chun at (202) 482–
5760 (Brazil); Jack Zhao at (202) 482–
1396 (Japan); Matthew Renkey or Javier
Barrientos at (202) 482–2312 and (202)
482–2243, respectively (the Republic of
Korea (Korea)); Dmitry Vladimirov at
(202) 482–0665, (the Netherlands); Jack
Zhao at (202) 482–1396 (the Republic of
Turkey (Turkey)); and Yang Jin Chun at
(202) 482–5760 (the United Kingdom),
AD/CVD Operations, Enforcement and
Compliance, U.S. Department of
Commerce, 14th Street and Constitution
Avenue NW., Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
AGENCY:
The Petitions
On August 11, 2015, the Department
of Commerce (the Department) received
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Countervailing Duties on Imports of Certain HotRolled Steel Flat Products from Brazil, Korea, and
Turkey, dated August 11, 2015.
3 See Volume I of the Petitions, at 2, and Exhibit
I–1.
4 See Letter from the Department to Petitioners
entitled ‘‘Re: Petitions for the Imposition of
Antidumping Duties and Countervailing Duties on
Imports of Certain Hot-Rolled Steel Flat Products
from Brazil, Korea, and Turkey and Antidumping
Duties on Imports of Certain Hot-Rolled Steel Flat
Products from Australia, Brazil, Japan, Korea, the
Netherlands, Turkey, and the United Kingdom:
Supplemental Questions’’ dated August 14, 2015;
(General Issues Supplemental Questionnaire), and
Letters from the Department to Petitioners entitled
‘‘Re: Petition for the Imposition of Antidumping
Duties on Imports of Certain Hot-Rolled Steel Flat
Products from {country}: Supplemental Questions’’
on each of the country-specific records, dated
August 14, 2015.
5 See Responses to the Department’s August 14,
2015 Questionnaires Regarding Volumes II, III, IV,
V, VI, VII, and VIII, of the Petitions for the
Antidumping and Countervailing Duties, each
dated August 18, 2015; see also Response to the
Department’s August 14, 2015 Questionnaire
Regarding Volume I of the Petitions for
Antidumping and Countervailing Duties, dated
August 20, 2015 (General Issues Supplement); see
also Scope Supplement to the Petitions, dated
August 26, 2015 (Scope Supplement).
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The Department finds that Petitioners
filed these Petitions on behalf of the
domestic industry because Petitioners
are interested parties as defined in
section 771(9)(C) of the Act. The
Department also finds that Petitioners
demonstrated sufficient industry
support with respect to the initiation of
the AD investigations that Petitioners
are requesting.6
Period of Investigations
Because the Petitions were filed on
August 11, 2015, the period of
investigations (POI) is, pursuant to 19
CFR 351.204(b)(1), July 1, 2014, through
June 30, 2015.
Scope of the Investigations
The product covered by these
investigations is hot-rolled steel from
Australia, Brazil, Japan, Korea, the
Netherlands, Turkey, and the United
Kingdom. For a full description of the
scope of these investigations, see the
‘‘Scope of the Investigations,’’ in
Appendix I of this notice.
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Comments on Scope of the
Investigations
During our review of the Petitions, the
Department issued questions to, and
received responses from, Petitioners
pertaining to the proposed scope to
ensure that the scope language in the
Petitions would be an accurate
reflection of the products for which the
domestic industry is seeking relief.7
As discussed in the preamble to the
Department’s regulations, we are setting
aside a period for interested parties to
raise issues regarding product coverage
(scope). The Department will consider
all comments received from parties and,
if necessary, will consult with parties
prior to the issuance of the preliminary
determination. If scope comments
include factual information (see 19 CFR
351.102(b)(21)), all such factual
information should be limited to public
information. In order to facilitate
preparation of its questionnaires, the
Department requests all interested
parties to submit such comments by 5
p.m. Eastern Daylight Time (EDT) on
Monday, September 21, 2015, which is
the first business day after 20 calendar
days from the signature date of this
notice.8 Any rebuttal comments, which
may include factual information, must
be filed by 5 p.m. EDT on Tuesday,
6 See the ‘‘Determination of Industry Support for
the Petitions’’ section below.
7 See General Issues Supplemental Questionnaire;
see also General Issues Supplement; see also Scope
Supplement.
8 See 19 CFR 351.303(b).
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October 1, 2015, which is 10 calendar
days after the initial comments.
The Department requests that any
factual information the parties consider
relevant to the scope of the
investigations be submitted during this
time period. However, if a party
subsequently finds that additional
factual information pertaining to the
scope of the investigations may be
relevant, the party may contact the
Department and request permission to
submit the additional information. All
such comments must be filed on the
records of each of the concurrent AD
and CVD investigations.
Filing Requirements
All submissions to the Department
must be filed electronically using
Enforcement and Compliance’s
Antidumping and Countervailing Duty
Centralized Electronic Service System
(ACCESS).9 An electronically filed
document must be received successfully
in its entirety by the time and date when
it is due. Documents excepted from the
electronic submission requirements
must be filed manually (i.e., in paper
form) with Enforcement and
Compliance’s APO/Dockets Unit, Room
18022, U.S. Department of Commerce,
14th Street and Constitution Avenue
NW., Washington, DC 20230, and
stamped with the date and time of
receipt by the applicable deadlines.
Comments on Product Characteristics
for AD Questionnaires
The Department will give interested
parties an opportunity to provide
comments on the appropriate physical
characteristics of hot-rolled steel to be
reported in response to the
Department’s AD questionnaires. This
information will be used to identify the
key physical characteristics of the
subject merchandise in order to report
the relevant factors and costs of
production accurately as well as to
develop appropriate productcomparison criteria.
The Department will release a
proposed list of physical characteristics
and product-comparison criteria, and
interested parties will have the
opportunity to provide any information
or comments that they feel are relevant
to the development of an accurate list of
physical characteristics. Specifically,
9 See Antidumping and Countervailing Duty
Proceedings: Electronic Filing Procedures;
Administrative Protective Order Procedures, 76 FR
39263 (July 6, 2011) for details of the Department’s
electronic filing requirements, which went into
effect on August 5, 2011. Information on help using
ACCESS can be found at https://access.trade.gov/
help.aspx and a handbook can be found at https://
access.trade.gov/help/Handbook%20on%20
Electronic%20Filling%20Procedures.pdf.
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they may provide comments as to which
characteristics are appropriate to use as:
(1) General product characteristics and
(2) product-comparison criteria. We
note that it is not always appropriate to
use all product characteristics as
product-comparison criteria. We base
product-comparison criteria on
meaningful commercial differences
among products. In other words,
although there may be some physical
product characteristics utilized by
manufacturers to describe hot-rolled
steel, it may be that only a select few
product characteristics take into account
commercially meaningful physical
characteristics. In addition, interested
parties may comment on the order in
which the physical characteristics
should be used in matching products.
Generally, the Department attempts to
list the most important physical
characteristics first and the least
important characteristics last.
All comments and submissions to the
Department must be filed electronically
using ACCESS, as explained above, on
the records of the Australia, Brazil,
Japan, Korea, the Netherlands, Turkey,
and the United Kingdom less-than-fairvalue investigations.
Determination of Industry Support for
the Petitions
Section 732(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 732(c)(4)(A)
of the Act provides that a petition meets
this requirement if the domestic
producers or workers who support the
petition account for: (i) At least 25
percent of the total production of the
domestic like product; and (ii) more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
petition. Moreover, section 732(c)(4)(D)
of the Act provides that, if the petition
does not establish support of domestic
producers or workers accounting for
more than 50 percent of the total
production of the domestic like product,
the Department shall: (i) Poll the
industry or rely on other information in
order to determine if there is support for
the petition, as required by
subparagraph (A); or (ii) determine
industry support using a statistically
valid sampling method to poll the
‘‘industry.’’
Section 771(4)(A) of the Act defines
the ‘‘industry’’ as the producers as a
whole of a domestic like product. Thus,
to determine whether a petition has the
requisite industry support, the statute
directs the Department to look to
producers and workers who produce the
domestic like product. The International
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Trade Commission (ITC), which is
responsible for determining whether
‘‘the domestic industry’’ has been
injured, must also determine what
constitutes a domestic like product in
order to define the industry. While both
the Department and the ITC must apply
the same statutory definition regarding
the domestic like product,10 they do so
for different purposes and pursuant to a
separate and distinct authority. In
addition, the Department’s
determination is subject to limitations of
time and information. Although this
may result in different definitions of the
like product, such differences do not
render the decision of either agency
contrary to law.11
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
most similar in characteristics and uses
with, the article subject to an
investigation under this title.’’ Thus, the
reference point from which the
domestic like product analysis begins is
‘‘the article subject to an investigation’’
(i.e., the class or kind of merchandise to
be investigated, which normally will be
the scope as defined in the Petitions).
With regard to the domestic like
product, Petitioners do not offer a
definition of the domestic like product
distinct from the scope of the
investigations. Based on our analysis of
the information submitted on the
record, we have determined that hotrolled steel constitutes a single domestic
like product and we have analyzed
industry support in terms of that
domestic like product.12
10 See
section 771(10) of the Act.
USEC, Inc. v. United States, 132 F. Supp.
2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd.
v. United States, 688 F. Supp. 639, 644 (CIT 1988),
aff’d 865 F.2d 240 (Fed. Cir. 1989)).
12 For a discussion of the domestic like product
analysis in this case, see Antidumping Duty
Investigation Initiation Checklist: Certain HotRolled Steel Flat Products from Australia (Australia
AD Checklist), at Attachment II, Analysis of
Industry Support for the Antidumping and
Countervailing Duty Petitions Covering Certain HotRolled Steel Flat Products from Australia, Brazil,
Japan, the Republic of Korea, the Netherlands, the
Republic of Turkey, and the United Kingdom
(Attachment II); Antidumping Duty Investigation
Initiation Checklist: Certain Hot-Rolled Steel Flat
Products from Brazil (Brazil AD Checklist), at
Attachment II; Antidumping Duty Investigation
Initiation Checklist: Certain Hot-Rolled Steel Flat
Products from Japan (Japan AD Initiation Checklist),
at Attachment II; Antidumping Duty Investigation
Initiation Checklist: Certain Hot-Rolled Steel Flat
Products from the Republic of Korea (Korea AD
Initiation Checklist), at Attachment II; Antidumping
Duty Investigation Initiation Checklist: Certain HotRolled Steel Flat Products from the Netherlands
(Netherlands AD Initiation Checklist), at
Attachment II; Antidumping Duty Investigation
Initiation Checklist: Certain Hot-Rolled Steel Flat
Products from the Republic of Turkey (Turkey AD
Initiation Checklist); and Antidumping Duty
Investigation Initiation Checklist: Certain Hot-
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11 See
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In determining whether Petitioners
have standing under section
732(c)(4)(A) of the Act, we considered
the industry support data contained in
the Petitions with reference to the
domestic like product as defined in the
‘‘Scope of the Investigations,’’ in
Appendix I of this notice. Petitioners
provided their production volume of the
domestic like product in 2014, as well
as an estimate of total production of the
domestic like product for the entire
domestic industry.13 To establish
industry support, Petitioners compared
their own production to total estimated
production of the domestic like product
for the entire domestic industry.14
Our review of the data provided in the
Petitions, General Issues Supplement,
and other information readily available
to the Department indicates that
Petitioners have established industry
support.15 First, the Petitions
established support from domestic
producers (or workers) accounting for
more than 50 percent of the total
production of the domestic like product
and, as such, the Department is not
required to take further action in order
to evaluate industry support (e.g.,
polling).16 Second, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 732(c)(4)(A)(i) of the Act
because the domestic producers (or
workers) who support the Petitions
account for at least 25 percent of the
total production of the domestic like
product.17 Finally, the domestic
Rolled Steel Flat Products from the United
Kingdom (United Kingdom AD Initiation Checklist).
These checklists are dated concurrently with this
notice and on file electronically via ACCESS.
Access to documents filed via ACCESS is also
available in the Central Records Unit, Room B8024
of the main Department of Commerce building.
13 See Volume I of the Petitions, at 2–4 and
Exhibits I–3 and I–4; see also General Issues
Supplement, at 8–9.
14 Id. For further discussion, see Australia AD
Initiation Checklist, Brazil AD Initiation Checklist,
Japan AD Initiation Checklist, Korea AD Initiation
Checklist, Netherlands AD Initiation Checklist,
Turkey AD Initiation Checklist, and United
Kingdom AD Initiation Checklist, at Attachment II.
15 See Australia AD Initiation Checklist, Brazil
AD Initiation Checklist, Japan AD Initiation
Checklist, Korea AD Initiation Checklist,
Netherlands AD Initiation Checklist, Turkey AD
Initiation Checklist, and United Kingdom AD
Initiation Checklist, at Attachment II.
16 See section 732(c)(4)(D) of the Act; see also
Australia AD Initiation Checklist, Brazil AD
Initiation Checklist, Japan AD Initiation Checklist,
Korea AD Initiation Checklist, Netherlands AD
Initiation Checklist, Turkey AD Initiation Checklist,
and United Kingdom AD Initiation Checklist, at
Attachment II.
17 See Australia AD Initiation Checklist, Brazil
AD Initiation Checklist, Japan AD Initiation
Checklist, Korea AD Initiation Checklist,
Netherlands AD Initiation Checklist, Turkey AD
Initiation Checklist, and United Kingdom AD
Initiation Checklist, at Attachment II.
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producers (or workers) have met the
statutory criteria for industry support
under section 732(c)(4)(A)(ii) of the Act
because the domestic producers (or
workers) who support the Petitions
account for more than 50 percent of the
production of the domestic like product
produced by that portion of the industry
expressing support for, or opposition to,
the Petitions.18 Accordingly, the
Department determines that the
Petitions were filed on behalf of the
domestic industry within the meaning
of section 732(b)(1) of the Act.
The Department finds that Petitioners
filed the Petitions on behalf of the
domestic industry because they are
interested parties as defined in section
771(9)(C) of the Act and they have
demonstrated sufficient industry
support with respect to the AD
investigations that they are requesting
the Department to initiate.19
Allegations and Evidence of Material
Injury and Causation
Petitioners allege that the U.S.
industry producing the domestic like
product is being materially injured, or is
threatened with material injury, by
reason of the imports of the subject
merchandise sold at less than normal
value (NV). In addition, Petitioners
allege that subject imports exceed the
negligibility threshold provided for
under section 771(24)(A) of the Act.20
Petitioners contend that the industry’s
injured condition is illustrated by
reduced market share; underselling and
price suppression or depression; lost
sales and revenues; decline in
production, shipments, and capacity
utilization; and decline in financial
performance.21 We have assessed the
allegations and supporting evidence
regarding material injury, threat of
material injury, and causation, and we
have determined that these allegations
are properly supported by adequate
evidence and meet the statutory
requirements for initiation.22
18 Id.
19 Id.
20 See Volume I of the Petitions, at 21–22 and
Exhibit I–11.
21 See Volume I of the Petitions, at 15–19, 21–42
and Exhibits I–4, I–6, I–9 and I–11 through I–17; see
also General Issues Supplement, at 9–10.
22 See Australia AD Initiation Checklist, Brazil
AD Initiation Checklist, Japan AD Initiation
Checklist, Korea AD Initiation Checklist,
Netherlands AD Initiation Checklist, Turkey AD
Initiation Checklist, and United Kingdom AD
Initiation Checklist, at Attachment III, Analysis of
Allegations and Evidence of Material Injury and
Causation for the Antidumping and Countervailing
Duty Petitions Covering Certain Hot-Rolled Steel
Flat Products from Australia, Brazil, Japan, the
Republic of Korea, the Netherlands, the Republic of
Turkey, and the United Kingdom.
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Allegations of Sales at Less-Than-Fair
Value
The following is a description of the
allegations of sales at less-than-fair
value upon which the Department based
its decision to initiate investigations of
imports of hot-rolled steel from
Australia, Brazil, Japan, Korea, the
Netherlands, Turkey, and the United
Kingdom. The sources of data for the
deductions and adjustments relating to
U.S. price and NV are discussed in
greater detail in the country-specific
initiation checklists.
Export Price
For the Netherlands, Turkey, and the
United Kingdom, Petitioners based
export price (EP) U.S. prices on price
quotes/offers for sales of hot-rolled steel
produced in, and exported from, the
subject country.23 For the Netherlands
and the United Kingdom, Petitioners
also based EP U.S. prices on average
unit values (AUVs) of U.S. imports from
those countries.24 For Australia, Brazil,
and Japan, Petitioners used AUV data as
the basis for U.S. price.25 Where
applicable, Petitioners made deductions
from U.S. price for movement expenses
consistent with the delivery terms.26
Where applicable, Petitioners also
deducted from U.S. price trading
company/distributor/reseller mark-ups
estimated using Petitioners’ knowledge
of the U.S. industry.27
Constructed Export Price
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For Korea, because Petitioners had
reason to believe the sale was made
through a U.S. affiliate, Petitioners
based constructed export price (CEP) on
a price quote/offer for sale of hot-rolled
steel produced in, and exported from,
Korea.28 Petitioners made deductions
from U.S. price for movement expenses
consistent with the delivery terms,
imputed credit expenses, and deducted
from U.S. price trading company/
distributor/reseller mark-ups estimated
using publicly reported expenses in the
most recently available annual report of
a distributor of steel.29
23 See the Netherlands AD Initiation Checklist;
Turkey AD Initiation Checklist, and the United
Kingdom AD Initiation Checklist.
24 See the Netherlands AD Initiation Checklist
and the United Kingdom AD Initiation Checklist.
25 See Australia AD Initiation Checklist, Brazil
AD Initiation Checklist, and Japan AD Initiation
Checklist.
26 See Australia AD Initiation Checklist, Japan AD
Initiation Checklist, Korea AD Initiation Checklist,
the Netherlands AD Initiation Checklist, Turkey AD
Initiation Checklist, and the United Kingdom AD
Initiation Checklist.
27 See Turkey AD Initiation Checklist.
28 See Korea AD Initiation Checklist.
29 Id.
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Normal Value
For Australia, Brazil, Japan, Korea,
and Turkey, Petitioners provided home
market price information obtained
through market research for hot-rolled
steel produced in and offered for sale in
each of these countries.30 For all five of
these countries, Petitioners provided an
affidavit or declaration from a market
researcher for the price information.31
For Brazil, Petitioners made deductions
from the home market price for
movement expenses and taxes
consistent with the delivery terms.32 For
Korea, home market imputed credit
expenses were deducted from the
price.33 Petitioners made no other
adjustments to the offer prices to
calculate NV, as no others were
warrented by the terms associated with
the offers.34
For Korea, and Turkey, Petitioners
provided information that sales of hotrolled steel in the respective home
markets were made at prices below the
cost of production (COP), and for the
United Kingdom, and the Netherlands,
Petitioners did not provide home market
price information because, as noted
below, they were unable to obtain home
market prices. For all four of these
countries, Petitioners calculated NV
based on constructed value (CV).35 For
further discussion of COP and NV based
on CV, see below.36
Normal Value Based on Constructed
Value
Pursuant to section 773(b)(3) of the
Act, COP consists of the cost of
manufacturing (COM); selling, general
and administrative (SG&A) expenses;
30 See Australia AD Initiation Checklist, Brazil
AD Initiation Checklist, Japan AD Initiation
Checklist, Korea AD Initiation Checklist, and
Turkey AD Initiation Checklist.
31 Id.; see also Memorandum to the File,
‘‘Telephone Call to Foreign Market Researcher
Regarding Antidumping Petition,’’ on each of the
country-specific records, dated August 20, 2015
(Australia), August 20, 2015 (Brazil), August 25,
2015 (Japan), and August 25, 2015 (Korea).
32 See Brazil AD Initiation Checklist.
33 See Korea AD Initiation Checklist.
34 See Australia AD Initiation Checklist, Brazil
AD Initiation Checklist, Japan AD Initiation
Checklist, Korea AD Initiation Checklist, and
Turkey AD Initiation Checklist.
35 See Korea AD Initiation Checklist, Netherlands
AD Initiation Checklist, Turkey AD Initiation
Checklist, and United Kingdom AD Initiation
Checklist.
36 In accordance with section 505(a) of the Trade
Preferences Extension Act of 2015, amending
section 773(b)(2) of the Act, for all of the
investigations, the Department will request
information necessary to calculate the CV and COP
to determine whether there are reasonable grounds
to believe or suspect that sales of the foreign like
product have been made at prices that represent
less than the COP of the product. The Department
will no longer require a COP allegation to conduct
this analysis.
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financial expenses; and packing
expenses. Petitioners calculated COM
based on Petitioners’ experience
adjusted for known differences between
producing in the United States and
producing in the respective country
(i.e., Korea, the Netherlands, Turkey,
and the United Kingdom), during the
proposed POI.37 Using publiclyavailable data to account for price
differences, Petitioners multiplied the
surrogate usage quantities by the
submitted value of the inputs used to
manufacture hot-rolled steel in each
country.38 For Korea, the Netherlands,
Turkey, and the United Kingdom, labor
rates were derived from publicly
available sources multiplied by the
product-specific usage rates.39 For
Korea, the Netherlands, Turkey, and the
United Kingdom, to determine factory
overhead, SG&A, and financial expense
rates, Petitioners relied on financial
statements of producers of comparable
merchandise operating in the respective
foreign country.40
For Turkey and Korea, because certain
home market prices fell below COP,
pursuant to sections 773(a)(4), 773(b),
and 773(e) of the Act, as noted above,
Petitioners calculated NV also based on
CV for those countries.41 For the
Netherlands and the United Kingdom,
Petitioners indicated they were unable
to obtain home market prices;
accordingly, Petitioners based NV only
on CV for those countries.42 Pursuant to
section 773(e) of the Act, CV consists of
the COM, SG&A, financial expenses,
packing expenses, and profit. Petitioners
calculated CV using the same average
COM, SG&A, and financial expenses,
used to calculate COP.43 Petitioners
relied on the financial statements of the
same producers that they used for
calculating manufacturing overhead,
SG&A, and financial expenses to
calculate the profit rate. For Turkey, we
made an adjustment to the Petitioners’
calculated profit rate.44
Fair Value Comparisons
Based on the data provided by
Petitioners, there is reason to believe
37 See Korea AD Initiation Checklist, Netherlands
AD Initiation Checklist, Turkey AD Initiation
Checklist, and United Kingdom AD Initiation
Checklist.
38 Id.
39 Id.
40 Id.
41 See Turkey AD Initiation Checklist, and Korea
Initiation Checklist.
42 See Netherlands AD Initiation Checklist, and
United Kingdom AD Initiation Checklist.
43 See Korea AD Initiation Checklist, Netherlands
AD Initiation Checklist, Turkey AD Initiation
Checklist, and United Kingdom AD Initiation
Checklist.
44 See Turkey AD Initiation Checklist.
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that imports of hot-rolled steel from
Australia, Brazil, Japan, Korea, the
Netherlands, Turkey, and the United
Kingdom, are being, or are likely to be,
sold in the United States at less-thanfair value. Based on comparisons of EP
or CEP to NV in accordance with section
773(a) of the Act, the estimated
dumping margin(s) for hot-rolled steel
are as follows: (1) Australia is 99.20
percent; 45 (2) Brazil is 34.28 percent; 46
(3) Japan range from 16.15 to 34.53
percent; 47 (4) Korea range from 86.96 to
158.93 percent; 48 (5) the Netherlands
range from 55.21 to 173.17 percent; 49 (6)
Turkey range from 96.77 to 197.41
percent; 50 and (7) the United Kingdom
range from 50.63 to 161.75 percent.51
Initiation of Less-than-Fair-Value
Investigations
Based upon the examination of the
AD Petitions on hot-rolled steel from
Australia, Brazil, Japan, Korea, the
Netherlands, Turkey, and the United
Kingdom, we find that Petitions meet
the requirements of section 732 of the
Act. Therefore, we are initiating AD
investigations to determine whether
imports of hot-rolled steel from
Australia, Brazil, Japan, Korea, the
Netherlands, Turkey, and the United
Kingdom, are being, or are likely to be,
sold in the United States at less-thanfair value. In accordance with section
733(b)(1)(A) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will
make our preliminary determinations no
later than 140 days after the date of this
initiation.
On June 29, 2015, the President of the
United States signed into law the Trade
Preferences Extension Act of 2015,
which made numerous amendments to
the AD and CVD law.52 The 2015 law
does not specify dates of application for
those amendments. On August 6, 2015,
the Department published an
interpretative rule, in which it
announced the applicability dates for
each amendment to the Act, except for
amendments contained in section 771(7)
of the Act, which relate to
determinations of material injury by the
ITC.53 The amendments to sections
771(15), 773, 776, and 782 of the Act are
45 See
Australia AD Initiation Checklist.
Brazil AD Initiation Checklist.
47 See Japan AD Initiation Checklist.
48 See Korea AD Initiation Checklist.
49 See Netherlands AD Initiation Checklist.
50 See Turkey AD Initiation Checklist.
51 See United Kingdom AD Initiation Checklist.
52 See Trade Preferences Extension Act of 2015,
Pub. L. 114–27, 129 Stat. 362 (2015).
53 See Dates of Application of Amendments to the
Antidumping and Countervailing Duty Laws Made
by the Trade Preferences Extension Act of 2015, 80
FR 46793 (August 6, 2015) (Applicability Notice).
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46 See
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applicable to all determinations made
on or after August 6, 2015, and,
therefore, apply to these AD
investigations.54
Respondent Selection
Petitioners named six companies in
Brazil, five companies in Japan, four
companies in Korea, four companies in
the Netherlands, six companies in
Turkey, and five companies in the
United Kingdom, as producers/
exporters of hot-rolled steel.55
Following standard practice in AD
investigations involving market
economy countries, the Department
intends to select respondents based on
U.S. Customs and Border Protection
(CBP) data for U.S. imports under the
appropriate HTSUS numbers listed in
the ‘‘Scope of Investigations’’ section
above. We intend to release the CBP
data under Administrative Protective
Order (APO) to all parties with access to
information protected by APO within
five business days of publication of this
Federal Register notice.
Although the Department normally
relies on the number of producers/
exporters identified in the petition and/
or import data from CBP to determine
whether to select a limited number of
producers/exporters for individual
examination in AD investigations,
Petitioners identified only one company
as a producer/exporter of hot-rolled
steel in Australia: BlueScope Steel.56
Petitioners provided independent, thirdparty sources as support for their claim
regarding BlueScope Steel.
Additionally, we currently know of no
additional producers/exporters of
subject merchandise from Australia.
Accordingly, the Department intends to
examine all known producers/exporters
in the investigation for Australia (i.e.,
the company named in the petition).
Interested parties wishing to comment
regarding respondent selection must do
so within seven business days of the
publication of this notice. Comments
must be filed electronically using
ACCESS. An electronically-filed
document must be received successfully
in its entirety by the Department’s
electronic records system, ACCESS, by
5 p.m. ET by the date noted above. We
intend to make our decision regarding
respondent selection within 20 days of
publication of this notice.
54 Id. at 46794–95. The 2015 amendments may be
found at https://www.congress.gov/bill/114thcongress/house-bill/1295/text/pl.
55 See Volume I of the Petitions, at 15 and Exhibit
I–8.
56 See Volume I of the Petitions, at Exhibit I–8;
see also Volume II of the Petitions, at 3 and Exhibit
II–4.
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Distribution of Copies of the Petitions
In accordance with section
732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public version
of the Petitions have been provided to
the governments of Australia, Brazil,
Japan, Korea, the Netherlands, Turkey,
and the United Kingdom via ACCESS.
To the extent practicable, we will
attempt to provide a copy of the public
version of the Petitions to each exporter
named in the Petitions, as provided
under 19 CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our
initiation, as required by section 732(d)
of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine,
within 45 days after the date on which
the Petitions were filed, whether there
is a reasonable indication that imports
of hot-rolled steel from Australia, Brazil,
Japan, Korea, the Netherlands, Turkey,
and/or the United Kingdom are
materially injuring or threatening
material injury to a U.S. industry.57 A
negative ITC determination for any
country will result in the investigation
being terminated with respect to that
country; 58 otherwise, these
investigations will proceed according to
statutory and regulatory time limits.
Submission of Factual Information
Factual information is defined in 19
CFR 351.102(b)(21) as: (i) Evidence
submitted in response to questionnaires;
(ii) evidence submitted in support of
allegations; (iii) publicly available
information to value factors under 19
CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR
351.511(a)(2); (iv) evidence placed on
the record by the Department; and (v)
evidence other than factual information
described in (i)–(iv). The regulation
requires any party, when submitting
factual information, to specify under
which subsection of 19 CFR
351.102(b)(21) the information is being
submitted and, if the information is
submitted to rebut, clarify, or correct
factual information already on the
record, to provide an explanation
identifying the information already on
the record that the factual information
seeks to rebut, clarify, or correct. Time
limits for the submission of factual
information are addressed in 19 CFR
351.301, which provides specific time
limits based on the type of factual
information being submitted. Please
review the regulations prior to
57 See
section 733(a) of the Act.
58 Id.
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submitting factual information in these
investigations.
Extensions of Time Limits
Parties may request an extension of
time limits before the expiration of a
time limit established under Part 351, or
as otherwise specified by the Secretary.
In general, an extension request will be
considered untimely if it is filed after
the expiration of the time limit
established under Part 351 expires. For
submissions that are due from multiple
parties simultaneously, an extension
request will be considered untimely if it
is filed after 10 a.m. on the due date.
Under certain circumstances, we may
elect to specify a different time limit by
which extension requests will be
considered untimely for submissions
which are due from multiple parties
simultaneously. In such a case, we will
inform parties in the letter or
memorandum setting forth the deadline
(including a specified time) by which
extension requests must be filed to be
considered timely. An extension request
must be made in a separate, stand-alone
submission; under limited
circumstances we will grant untimelyfiled requests for the extension of time
limits. Review Extension of Time Limits;
Final Rule, 78 FR 57790 (September 20,
2013), available at https://www.gpo.gov/
fdsys/pkg/FR-2013-09-20/html/201322853.htm, prior to submitting factual
information in this segment.
Certification Requirements
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Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.59
Parties are hereby reminded that revised
certification requirements are in effect
for company/government officials, as
well as their representatives.
Investigations initiated on the basis of
Petitions filed on or after August 16,
2013, and other segments of any AD or
CVD proceedings initiated on or after
August 16, 2013, should use the formats
for the revised certifications provided at
the end of the Final Rule.60 The
Department intends to reject factual
submissions if the submitting party does
not comply with applicable revised
certification requirements.
59 See
section 782(b) of the Act.
Certification of Factual Information to
Import Administration during Antidumping and
Countervailing Duty Proceedings, 78 FR 42678 (July
17, 2013) (Final Rule); see also frequently asked
questions regarding the Final Rule, available at
https://enforcement.trade.gov/tlei/notices/factual_
info_final_rule_FAQ_07172013.pdf.
60 See
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Notification to Interested Parties
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305. On
January 22, 2008, the Department
published Antidumping and
Countervailing Duty Proceedings:
Documents Submission Procedures;
APO Procedures, 73 FR 3634 (January
22, 2008). Parties wishing to participate
in these investigations should ensure
that they meet the requirements of these
procedures (e.g., the filing of letters of
appearance as discussed in 19 CFR
351.103(d)).
This notice is issued and published
pursuant to section 777(i) of the Act.
Dated: August 31, 2015.
Paul Piquado,
Assistant Secretary for Enforcement and
Compliance.
Appendix I
Scope of the Investigations
The products covered by these
investigations are certain hot-rolled, flatrolled steel products, with or without
patterns in relief, and whether or not
annealed, painted, varnished, or coated with
plastics or other non-metallic substances.
The products covered do not include those
that are clad, plated, or coated with metal.
The products covered include coils that have
a width or other lateral measurement
(‘‘width’’) of 12.7 mm or greater, regardless
of thickness, and regardless of form of coil
(e.g., in successively superimposed layers,
spirally oscillating, etc.). The products
covered also include products not in coils
(e.g., in straight lengths) of a thickness of less
than 4.75 mm and a width that is 12.7 mm
or greater and that measures at least 10 times
the thickness. The products described above
may be rectangular, square, circular, or other
shape and include products of either
rectangular or non-rectangular cross-section
where such cross-section is achieve
subsequent to the rolling process, i.e.,
products which have been ‘‘worked after
rolling’’ (e.g., products which have been
beveled or rounded at the edges). For
purposes of the width and thickness
requirements referenced above:
(1) Where the nominal and actual
measurements vary, a product is within the
scope if application of either the nominal or
actual measurement would place it within
the scope based on the definitions set forth
above unless the resulting measurement
makes the product covered by the existing
antidumping 61 or countervailing duty 62
61 Notice of Amendment of Final Determinations
of Sales at Less Than Fair Value and Antidumping
Duty Orders: Certain Cut-To-Length Carbon-Quality
Steel Plate Products From France, India, Indonesia,
Italy, Japan and the Republic of Korea, 65 FR 6585
(February 10, 2000).
62 Notice of Amended Final Determinations:
Certain Cut-to-Length Carbon-Quality Steel Plate
From India and the Republic of Korea; and Notice
of Countervailing Duty Orders: Certain Cut-ToLength Carbon-Quality Steel Plate From France,
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orders on Certain Cut-To-Length CarbonQuality Steel Plate Products From the
Republic of Korea (A–580–836; C–580–837),
and
(2) where the width and thickness vary for
a specific product (e.g., the thickness of
certain products with non-rectangular crosssection, the width of certain products with
non-rectangular shape, etc.), the
measurement at its greatest width or
thickness applies.
Steel products included in the scope of
these investigations 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:
• 2.50 percent of manganese, or
• 3.30 percent of silicon, or
• 1.50 percent of copper, or
• 1.50 percent of aluminum, or
• 1.25 percent of chromium, or
• 0.30 percent of cobalt, or
• 0.40 percent of lead, or
• 2.00 percent of nickel, or
• 0.30 percent of tungsten, or
• 0.80 percent of molybdenum, or
• 0.10 percent of niobium, or
• 0.30 percent of vanadium, or
• 0.30 percent of zirconium.
Unless specifically excluded, products are
included in this scope regardless of levels of
boron and titanium.
For example, specifically included in this
scope are vacuum degassed, fully stabilized
(commonly referred to as interstitial-free (IF))
steels, high strength low alloy (HSLA) steels,
the substrate for motor lamination steels,
Advanced High Strength Steels (AHSS), and
Ultra High Strength Steels (UHSS). 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. AHSS and UHSS are considered
high tensile strength and high elongation
steels, although AHSS and UHSS are covered
whether or not they are high tensile strength
or high elongation steels.
Subject merchandise includes hot-rolled
steel that has been further processed in a
third country, including but not limited to
pickling, oiling, levelling, annealing,
tempering, temper rolling, skin passing,
painting, varnishing, trimming, cutting,
punching, and/or slitting, or any other
processing that would not otherwise remove
the merchandise from the scope of the
investigations if performed in the country of
manufacture of the hot-rolled steel.
All products that meet the written physical
description, and in which the chemistry
quantities do not exceed any one of the noted
element levels listed above, are within the
scope of these investigations unless
India, Indonesia, Italy, and the Republic of Korea,
65 FR 6587 (February 10, 2000).
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specifically excluded. The following
products are outside of and/or specifically
excluded from the scope of these
investigations:
• Universal mill plates (i.e., hot-rolled,
flat-rolled products not in coils that have
been rolled on four faces or in a closed box
pass, of a width exceeding 150 mm but not
exceeding 1250 mm, of a thickness not less
than 4.0 mm, and without patterns in relief);
• Products that have been cold-rolled
(cold-reduced) after hot-rolling; 63
• Ball bearing steels; 64
• Tool steels; 65 and
• Silico-manganese steels; 66
The products subject to these
investigations are currently classified in the
Harmonized Tariff Schedule of the United
States (HTSUS) under item numbers:
7208.10.1500, 7208.10.3000, 7208.10.6000,
7208.25.3000, 7208.25.6000, 7208.26.0030,
7208.26.0060, 7208.27.0030, 7208.27.0060,
7208.36.0030, 7208.36.0060, 7208.37.0030,
7208.37.0060, 7208.38.0015, 7208.38.0030,
7208.38.0090, 7208.39.0015, 7208.39.0030,
7208.39.0090, 7208.40.6030, 7208.40.6060,
7208.53.0000, 7208.54.0000, 7208.90.0000,
7210.70.3000, 7211.14.0030, 7211.14.0090,
7211.19.1500, 7211.19.2000, 7211.19.3000,
7211.19.4500, 7211.19.6000, 7211.19.7530,
7211.19.7560, 7211.19.7590, 7225.11.0000,
7225.19.0000, 7225.30.3050, 7225.30.7000,
7225.40.7000, 7225.99.0090, 7226.11.1000,
7226.11.9030, 7226.11.9060, 7226.19.1000,
7226.19.9000, 7226.91.5000, 7226.91.7000,
and 7226.91.8000. The products subject to
the investigations may also enter under the
following HTSUS numbers: 7210.90.9000,
7211.90.0000, 7212.40.1000, 7212.40.5000,
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63 For
purposes of this scope exclusion, rolling
operations such as a skin pass, levelling, temper
rolling or other minor rolling operations after the
hot-rolling process for purposes of surface finish,
flatness, shape control, or gauge control do not
constitute cold-rolling sufficient to meet this
exclusion.
64 Ball bearing steels are defined as steels which
contain, in addition to iron, each of the following
elements by weight in the amount specified: (i) Not
less than 0.95 nor more than 1.13 percent of carbon;
(ii) not less than 0.22 nor more than 0.48 percent
of manganese; (iii) none, or not more than 0.03
percent of sulfur; (iv) none, or not more than 0.03
percent of phosphorus; (v) not less than 0.18 nor
more than 0.37 percent of silicon; (vi) not less than
1.25 nor more than 1.65 percent of chromium; (vii)
none, or not more than 0.28 percent of nickel; (viii)
none, or not more than 0.38 percent of copper; and
(ix) none, or not more than 0.09 percent of
molybdenum.
65 Tool steels are defined as steels which contain
the following combinations of elements in the
quantity by weight respectively indicated: (i) More
than 1.2 percent carbon and more than 10.5 percent
chromium; or (ii) not less than 0.3 percent carbon
and 1.25 percent or more but less than 10.5 percent
chromium; or (iii) not less than 0.85 percent carbon
and 1 percent to 1.8 percent, inclusive, manganese;
or (iv) 0.9 percent to 1.2 percent, inclusive,
chromium and 0.9 percent to 1.4 percent, inclusive,
molybdenum; or (v) not less than 0.5 percent carbon
and not less than 3.5 percent molybdenum; or (vi)
not less than 0.5 percent carbon and not less than
5.5 percent tungsten.
66 Silico-manganese steel is defined as steels
containing by weight: (i) Not more than 0.7 percent
of carbon; (ii) 0.5 percent or more but not more than
1.9 percent of manganese, and (iii) 0.6 percent or
more but not more than 2.3 percent of silicon.
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7212.50.0000, 7214.91.0015, 7214.91.0060,
7214.91.0090, 7214.99.0060, 7214.99.0075,
7214.99.0090, 7215.90.5000, 7226.99.0180,
and 7228.60.6000.
The HTSUS subheadings above are
provided for convenience and U.S. Customs
purposes only. The written description of the
scope of the investigations is dispositive.
[FR Doc. 2015–22557 Filed 9–8–15; 8:45 a.m.]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–351–846, C–580–884, C–489–827]
Certain Hot-Rolled Steel Flat Products
From Brazil, the Republic of Korea,
and Turkey: Initiation of Countervailing
Duty Investigations
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Effective date: September 9,
2015.
FOR FURTHER INFORMATION CONTACT:
Sergio Balbontin at (202) 482–6478
(Brazil); Katie Marksberry at (202) 482–
7906 (Republic of Korea); Emily Halle at
(202) 482–0176 (Turkey), AD/CVD
Operations, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue NW., Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
AGENCY:
The Petitions
On August 11, 2015, the Department
of Commerce (Department) received
countervailing duty (CVD) petitions
concerning imports of certain hot-rolled
steel flat products (hot-rolled steel) from
Brazil, the Republic of Korea (Korea),
and Turkey, filed in proper form on
behalf of AK Steel Corporation,
ArcelorMittal USA LLC, Nucor
Corporation, SSAB Enterprises, LLC,
Steel Dynamics, Inc., and United States
Steel Corporation, (collectively,
Petitioners). The CVD petitions were
accompanied by antidumping duty (AD)
petitions also concerning imports of hotrolled steel from Australia, Brazil,
Japan, Korea, the Netherlands, Turkey,
and the United Kingdom.1 Petitioners
are domestic producers of hot-rolled
steel.2
On August 14, 2015, the Department
requested information and clarification
1 See ‘‘Certain Hot-Rolled Steel Flat Products
from Australia, Brazil, Japan, the Republic of Korea,
the Netherlands, Turkey, and the United Kingdom:
Petitions for the Imposition of Antidumping and
Countervailing Duties,’’ dated August 11, 2015
(Petitions).
2 See Volume I of the Petitions, at 2 and Exhibit
I–1.
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54267
for certain areas of the Petitions.3
Petitioners filed responses to these
requests on August 21 and 26, 2015.4
On August 19, 2015, the Department
sought additional information with
regard to the Brazilian CVD Petition.5
Petitioners filed additional Brazilian
CVD responses on August 20 and 25,
2015.6
In accordance with section 702(b)(1)
of the Tariff Act of 1930, as amended
(the Act), Petitioners allege that the
Governments of Brazil (GOB), Korea
(GOK), and Turkey (GOT) are providing
countervailable subsidies (within the
meaning of sections 701 and 771(5) of
the Act) to imports of hot-rolled steel
from the Brazil, Korea, and Turkey,
respectively, and that such imports are
materially injuring, or threatening
material injury to, an industry in the
United States. Also, consistent with
section 702(b)(1) of the Act, the
Petitions are accompanied by
information reasonably available to
Petitioners supporting their allegations.
The Department finds that Petitioners
filed the Petitions on behalf of the
domestic industry because Petitioners
are interested parties as defined in
section 771(9)(C) of the Act. The
Department also finds that Petitioners
demonstrated sufficient industry
support with respect to the initiation of
3 See Letter from the Department to Petitioners
entitled ‘‘Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports
of Certain Hot-Rolled Steel Flat Products from
Brazil, the Republic of Korea, and the Republic of
Turkey and Antidumping Duties on Imports of
Certain Hot-Rolled Steel Flat Products from
Australia, Japan, Netherlands, and the United
Kingdom: Supplemental Questions,’’ dated August
14, 2015 (General Issues Questionnaire); Letters
from the Department to Petitioners entitled ‘‘Re:
Petition for the Imposition of Antidumping Duties
on Imports of Certain Hot-Rolled Steel Flat Products
from {country}: Supplemental Questions’’ on each
of the country-specific records, dated August 14,
2015.
4 See Letter from Petitioners entitled ‘‘Certain
Hot-Rolled Steel Flat Products From Australia,
Brazil, Japan, the Republic of Korea, the
Netherlands. Turkey, and the United Kingdom—
Petitioners’ Amendment to Petition,’’ dated August
21, 2015 (General Issues Supplement); see also
Scope Supplement to the Petitions, dated August
26, 2015 (Scope Supplement).
5 See Letter from the Department to Petitioners
entitled ‘‘Petition for the Imposition of
Countervailing Duties on Imports of Certain HotRolled Steel Flat Products from Brazil:
Supplemental Questions,’’ dated August 19, 2015
(Brazil Second Questionnaire).
6 See Letter from Petitioners entitled ‘‘Certain
Hot-Rolled Steel Flat Products From Australia,
Brazil, Japan, the Republic of Korea, the
Netherlands, Turkey, and the United KingdomPetitioners’ Amendment to Petition,’’ dated August
20, 2015 (Brazil Second Supplement); see also
Letter from Petitioners entitled ‘‘Certain Hot-Rolled
Steel Flat products from Australia, Brazil Japan, the
Republic of Korea, the Netherlands, Turkey, and the
United Kingdom-Petitioners’ Amendment to
Petition,’’ dated August 25, 2015 (Brazil Third
Supplement).
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]]>Agencies
[Federal Register Volume 80, Number 174 (Wednesday, September 9, 2015)]
[Notices]
[Pages 54261-54267]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-22557]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-602-809, A-351-845, A-588-874, A-580-883, A-421-813, A-489-826, A-
412-825]
Certain Hot-Rolled Steel Flat Products from Australia, Brazil,
Japan, the Republic of Korea, the Netherlands, the Republic of Turkey,
and the United Kingdom: Initiation of Less-Than-Fair-Value
Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Effective: September 9, 2015.
FOR FURTHER INFORMATION CONTACT: Alexis Polovina at (202) 482-3927
(Australia); Yang Jin Chun at (202) 482-5760 (Brazil); Jack Zhao at
(202) 482-1396 (Japan); Matthew Renkey or Javier Barrientos at (202)
482-2312 and (202) 482-2243, respectively (the Republic of Korea
(Korea)); Dmitry Vladimirov at (202) 482-0665, (the Netherlands); Jack
Zhao at (202) 482-1396 (the Republic of Turkey (Turkey)); and Yang Jin
Chun at (202) 482-5760 (the United Kingdom), AD/CVD Operations,
Enforcement and Compliance, U.S. Department of Commerce, 14th Street
and Constitution Avenue NW., Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On August 11, 2015, the Department of Commerce (the Department)
received antidumping duty (AD) Petitions concerning imports of certain
hot-rolled steel flat products (hot-rolled steel) from Australia,
Brazil, Japan, Korea, the Netherlands, Turkey, and the United Kingdom,
filed in proper form on behalf of AK Steel Corporation, ArcelorMittal
USA LLC, Nucor Corporation, SSAB Enterprises, LLC, Steel Dynamics,
Inc., and United States Steel Corporation (Petitioners).\1\ The AD
Petitions were accompanied by three countervailing duty (CVD)
Petitions.\2\ Petitioners are domestic producers of hot-rolled
steel.\3\
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\1\ See Petitions for the Imposition of Antidumping Duties on
Imports of Certain Hot-Rolled Steel Flat Products from Australia,
Brazil, Japan, Korea, the Netherlands, Turkey, and the United
Kingdom, dated August 11, 2015 (the Petitions).
\2\ See the Petitions for the Imposition of Countervailing
Duties on Imports of Certain Hot-Rolled Steel Flat Products from
Brazil, Korea, and Turkey, dated August 11, 2015.
\3\ See Volume I of the Petitions, at 2, and Exhibit I-1.
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On August 14, 2015, the Department requested additional information
and clarification of certain areas of the Petitions.\4\ Petitioners
filed responses to these requests on August 18, 2015, August 20, 2015,
and August 26, 2015.\5\
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\4\ See Letter from the Department to Petitioners entitled ``Re:
Petitions for the Imposition of Antidumping Duties and
Countervailing Duties on Imports of Certain Hot-Rolled Steel Flat
Products from Brazil, Korea, and Turkey and Antidumping Duties on
Imports of Certain Hot-Rolled Steel Flat Products from Australia,
Brazil, Japan, Korea, the Netherlands, Turkey, and the United
Kingdom: Supplemental Questions'' dated August 14, 2015; (General
Issues Supplemental Questionnaire), and Letters from the Department
to Petitioners entitled ``Re: Petition for the Imposition of
Antidumping Duties on Imports of Certain Hot-Rolled Steel Flat
Products from {country{time} : Supplemental Questions'' on each of
the country-specific records, dated August 14, 2015.
\5\ See Responses to the Department's August 14, 2015
Questionnaires Regarding Volumes II, III, IV, V, VI, VII, and VIII,
of the Petitions for the Antidumping and Countervailing Duties, each
dated August 18, 2015; see also Response to the Department's August
14, 2015 Questionnaire Regarding Volume I of the Petitions for
Antidumping and Countervailing Duties, dated August 20, 2015
(General Issues Supplement); see also Scope Supplement to the
Petitions, dated August 26, 2015 (Scope Supplement).
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In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), Petitioners allege that imports of hot-rolled steel
from Australia, Brazil, Japan, Korea, the Netherlands, Turkey, and the
United Kingdom, are being, or are likely to be, sold in the United
States at less-than-fair value within the meaning of section 731 of the
Act, and that such imports are materially injuring, or threatening
material injury to, an industry in the United States. Also, consistent
with section 732(b)(1) of the Act, the Petitions are accompanied by
information reasonably available to Petitioners supporting their
allegations.
[[Page 54262]]
The Department finds that Petitioners filed these Petitions on
behalf of the domestic industry because Petitioners are interested
parties as defined in section 771(9)(C) of the Act. The Department also
finds that Petitioners demonstrated sufficient industry support with
respect to the initiation of the AD investigations that Petitioners are
requesting.\6\
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\6\ See the ``Determination of Industry Support for the
Petitions'' section below.
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Period of Investigations
Because the Petitions were filed on August 11, 2015, the period of
investigations (POI) is, pursuant to 19 CFR 351.204(b)(1), July 1,
2014, through June 30, 2015.
Scope of the Investigations
The product covered by these investigations is hot-rolled steel
from Australia, Brazil, Japan, Korea, the Netherlands, Turkey, and the
United Kingdom. For a full description of the scope of these
investigations, see the ``Scope of the Investigations,'' in Appendix I
of this notice.
Comments on Scope of the Investigations
During our review of the Petitions, the Department issued questions
to, and received responses from, Petitioners pertaining to the proposed
scope to ensure that the scope language in the Petitions would be an
accurate reflection of the products for which the domestic industry is
seeking relief.\7\
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\7\ See General Issues Supplemental Questionnaire; see also
General Issues Supplement; see also Scope Supplement.
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As discussed in the preamble to the Department's regulations, we
are setting aside a period for interested parties to raise issues
regarding product coverage (scope). The Department will consider all
comments received from parties and, if necessary, will consult with
parties prior to the issuance of the preliminary determination. If
scope comments include factual information (see 19 CFR 351.102(b)(21)),
all such factual information should be limited to public information.
In order to facilitate preparation of its questionnaires, the
Department requests all interested parties to submit such comments by 5
p.m. Eastern Daylight Time (EDT) on Monday, September 21, 2015, which
is the first business day after 20 calendar days from the signature
date of this notice.\8\ Any rebuttal comments, which may include
factual information, must be filed by 5 p.m. EDT on Tuesday, October 1,
2015, which is 10 calendar days after the initial comments.
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\8\ See 19 CFR 351.303(b).
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The Department requests that any factual information the parties
consider relevant to the scope of the investigations be submitted
during this time period. However, if a party subsequently finds that
additional factual information pertaining to the scope of the
investigations may be relevant, the party may contact the Department
and request permission to submit the additional information. All such
comments must be filed on the records of each of the concurrent AD and
CVD investigations.
Filing Requirements
All submissions to the Department must be filed electronically
using Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (ACCESS).\9\ An electronically
filed document must be received successfully in its entirety by the
time and date when it is due. Documents excepted from the electronic
submission requirements must be filed manually (i.e., in paper form)
with Enforcement and Compliance's APO/Dockets Unit, Room 18022, U.S.
Department of Commerce, 14th Street and Constitution Avenue NW.,
Washington, DC 20230, and stamped with the date and time of receipt by
the applicable deadlines.
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\9\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011) for details of the
Department's electronic filing requirements, which went into effect
on August 5, 2011. Information on help using ACCESS can be found at
https://access.trade.gov/help.aspx and a handbook can be found at
https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Comments on Product Characteristics for AD Questionnaires
The Department will give interested parties an opportunity to
provide comments on the appropriate physical characteristics of hot-
rolled steel to be reported in response to the Department's AD
questionnaires. This information will be used to identify the key
physical characteristics of the subject merchandise in order to report
the relevant factors and costs of production accurately as well as to
develop appropriate product-comparison criteria.
The Department will release a proposed list of physical
characteristics and product-comparison criteria, and interested parties
will have the opportunity to provide any information or comments that
they feel are relevant to the development of an accurate list of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as: (1) General product
characteristics and (2) product-comparison criteria. We note that it is
not always appropriate to use all product characteristics as product-
comparison criteria. We base product-comparison criteria on meaningful
commercial differences among products. In other words, although there
may be some physical product characteristics utilized by manufacturers
to describe hot-rolled steel, it may be that only a select few product
characteristics take into account commercially meaningful physical
characteristics. In addition, interested parties may comment on the
order in which the physical characteristics should be used in matching
products. Generally, the Department attempts to list the most important
physical characteristics first and the least important characteristics
last.
All comments and submissions to the Department must be filed
electronically using ACCESS, as explained above, on the records of the
Australia, Brazil, Japan, Korea, the Netherlands, Turkey, and the
United Kingdom less-than-fair-value investigations.
Determination of Industry Support for the Petitions
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, the Department
shall: (i) Poll the industry or rely on other information in order to
determine if there is support for the petition, as required by
subparagraph (A); or (ii) determine industry support using a
statistically valid sampling method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs the Department to look to producers and workers who produce the
domestic like product. The International
[[Page 54263]]
Trade Commission (ITC), which is responsible for determining whether
``the domestic industry'' has been injured, must also determine what
constitutes a domestic like product in order to define the industry.
While both the Department and the ITC must apply the same statutory
definition regarding the domestic like product,\10\ they do so for
different purposes and pursuant to a separate and distinct authority.
In addition, the Department's determination is subject to limitations
of time and information. Although this may result in different
definitions of the like product, such differences do not render the
decision of either agency contrary to law.\11\
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\10\ See section 771(10) of the Act.
\11\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
Petitions).
With regard to the domestic like product, Petitioners do not offer
a definition of the domestic like product distinct from the scope of
the investigations. Based on our analysis of the information submitted
on the record, we have determined that hot-rolled steel constitutes a
single domestic like product and we have analyzed industry support in
terms of that domestic like product.\12\
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\12\ For a discussion of the domestic like product analysis in
this case, see Antidumping Duty Investigation Initiation Checklist:
Certain Hot-Rolled Steel Flat Products from Australia (Australia AD
Checklist), at Attachment II, Analysis of Industry Support for the
Antidumping and Countervailing Duty Petitions Covering Certain Hot-
Rolled Steel Flat Products from Australia, Brazil, Japan, the
Republic of Korea, the Netherlands, the Republic of Turkey, and the
United Kingdom (Attachment II); Antidumping Duty Investigation
Initiation Checklist: Certain Hot-Rolled Steel Flat Products from
Brazil (Brazil AD Checklist), at Attachment II; Antidumping Duty
Investigation Initiation Checklist: Certain Hot-Rolled Steel Flat
Products from Japan (Japan AD Initiation Checklist), at Attachment
II; Antidumping Duty Investigation Initiation Checklist: Certain
Hot-Rolled Steel Flat Products from the Republic of Korea (Korea AD
Initiation Checklist), at Attachment II; Antidumping Duty
Investigation Initiation Checklist: Certain Hot-Rolled Steel Flat
Products from the Netherlands (Netherlands AD Initiation Checklist),
at Attachment II; Antidumping Duty Investigation Initiation
Checklist: Certain Hot-Rolled Steel Flat Products from the Republic
of Turkey (Turkey AD Initiation Checklist); and Antidumping Duty
Investigation Initiation Checklist: Certain Hot-Rolled Steel Flat
Products from the United Kingdom (United Kingdom AD Initiation
Checklist). These checklists are dated concurrently with this notice
and on file electronically via ACCESS. Access to documents filed via
ACCESS is also available in the Central Records Unit, Room B8024 of
the main Department of Commerce building.
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In determining whether Petitioners have standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petitions with reference to the domestic like product
as defined in the ``Scope of the Investigations,'' in Appendix I of
this notice. Petitioners provided their production volume of the
domestic like product in 2014, as well as an estimate of total
production of the domestic like product for the entire domestic
industry.\13\ To establish industry support, Petitioners compared their
own production to total estimated production of the domestic like
product for the entire domestic industry.\14\
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\13\ See Volume I of the Petitions, at 2-4 and Exhibits I-3 and
I-4; see also General Issues Supplement, at 8-9.
\14\ Id. For further discussion, see Australia AD Initiation
Checklist, Brazil AD Initiation Checklist, Japan AD Initiation
Checklist, Korea AD Initiation Checklist, Netherlands AD Initiation
Checklist, Turkey AD Initiation Checklist, and United Kingdom AD
Initiation Checklist, at Attachment II.
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Our review of the data provided in the Petitions, General Issues
Supplement, and other information readily available to the Department
indicates that Petitioners have established industry support.\15\
First, the Petitions established support from domestic producers (or
workers) accounting for more than 50 percent of the total production of
the domestic like product and, as such, the Department is not required
to take further action in order to evaluate industry support (e.g.,
polling).\16\ Second, the domestic producers (or workers) have met the
statutory criteria for industry support under section 732(c)(4)(A)(i)
of the Act because the domestic producers (or workers) who support the
Petitions account for at least 25 percent of the total production of
the domestic like product.\17\ Finally, the domestic producers (or
workers) have met the statutory criteria for industry support under
section 732(c)(4)(A)(ii) of the Act because the domestic producers (or
workers) who support the Petitions account for more than 50 percent of
the production of the domestic like product produced by that portion of
the industry expressing support for, or opposition to, the
Petitions.\18\ Accordingly, the Department determines that the
Petitions were filed on behalf of the domestic industry within the
meaning of section 732(b)(1) of the Act.
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\15\ See Australia AD Initiation Checklist, Brazil AD Initiation
Checklist, Japan AD Initiation Checklist, Korea AD Initiation
Checklist, Netherlands AD Initiation Checklist, Turkey AD Initiation
Checklist, and United Kingdom AD Initiation Checklist, at Attachment
II.
\16\ See section 732(c)(4)(D) of the Act; see also Australia AD
Initiation Checklist, Brazil AD Initiation Checklist, Japan AD
Initiation Checklist, Korea AD Initiation Checklist, Netherlands AD
Initiation Checklist, Turkey AD Initiation Checklist, and United
Kingdom AD Initiation Checklist, at Attachment II.
\17\ See Australia AD Initiation Checklist, Brazil AD Initiation
Checklist, Japan AD Initiation Checklist, Korea AD Initiation
Checklist, Netherlands AD Initiation Checklist, Turkey AD Initiation
Checklist, and United Kingdom AD Initiation Checklist, at Attachment
II.
\18\ Id.
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The Department finds that Petitioners filed the Petitions on behalf
of the domestic industry because they are interested parties as defined
in section 771(9)(C) of the Act and they have demonstrated sufficient
industry support with respect to the AD investigations that they are
requesting the Department to initiate.\19\
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\19\ Id.
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Allegations and Evidence of Material Injury and Causation
Petitioners allege that the U.S. industry producing the domestic
like product is being materially injured, or is threatened with
material injury, by reason of the imports of the subject merchandise
sold at less than normal value (NV). In addition, Petitioners allege
that subject imports exceed the negligibility threshold provided for
under section 771(24)(A) of the Act.\20\ Petitioners contend that the
industry's injured condition is illustrated by reduced market share;
underselling and price suppression or depression; lost sales and
revenues; decline in production, shipments, and capacity utilization;
and decline in financial performance.\21\ We have assessed the
allegations and supporting evidence regarding material injury, threat
of material injury, and causation, and we have determined that these
allegations are properly supported by adequate evidence and meet the
statutory requirements for initiation.\22\
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\20\ See Volume I of the Petitions, at 21-22 and Exhibit I-11.
\21\ See Volume I of the Petitions, at 15-19, 21-42 and Exhibits
I-4, I-6, I-9 and I-11 through I-17; see also General Issues
Supplement, at 9-10.
\22\ See Australia AD Initiation Checklist, Brazil AD Initiation
Checklist, Japan AD Initiation Checklist, Korea AD Initiation
Checklist, Netherlands AD Initiation Checklist, Turkey AD Initiation
Checklist, and United Kingdom AD Initiation Checklist, at Attachment
III, Analysis of Allegations and Evidence of Material Injury and
Causation for the Antidumping and Countervailing Duty Petitions
Covering Certain Hot-Rolled Steel Flat Products from Australia,
Brazil, Japan, the Republic of Korea, the Netherlands, the Republic
of Turkey, and the United Kingdom.
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[[Page 54264]]
Allegations of Sales at Less-Than-Fair Value
The following is a description of the allegations of sales at less-
than-fair value upon which the Department based its decision to
initiate investigations of imports of hot-rolled steel from Australia,
Brazil, Japan, Korea, the Netherlands, Turkey, and the United Kingdom.
The sources of data for the deductions and adjustments relating to U.S.
price and NV are discussed in greater detail in the country-specific
initiation checklists.
Export Price
For the Netherlands, Turkey, and the United Kingdom, Petitioners
based export price (EP) U.S. prices on price quotes/offers for sales of
hot-rolled steel produced in, and exported from, the subject
country.\23\ For the Netherlands and the United Kingdom, Petitioners
also based EP U.S. prices on average unit values (AUVs) of U.S. imports
from those countries.\24\ For Australia, Brazil, and Japan, Petitioners
used AUV data as the basis for U.S. price.\25\ Where applicable,
Petitioners made deductions from U.S. price for movement expenses
consistent with the delivery terms.\26\ Where applicable, Petitioners
also deducted from U.S. price trading company/distributor/reseller
mark-ups estimated using Petitioners' knowledge of the U.S.
industry.\27\
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\23\ See the Netherlands AD Initiation Checklist; Turkey AD
Initiation Checklist, and the United Kingdom AD Initiation
Checklist.
\24\ See the Netherlands AD Initiation Checklist and the United
Kingdom AD Initiation Checklist.
\25\ See Australia AD Initiation Checklist, Brazil AD Initiation
Checklist, and Japan AD Initiation Checklist.
\26\ See Australia AD Initiation Checklist, Japan AD Initiation
Checklist, Korea AD Initiation Checklist, the Netherlands AD
Initiation Checklist, Turkey AD Initiation Checklist, and the United
Kingdom AD Initiation Checklist.
\27\ See Turkey AD Initiation Checklist.
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Constructed Export Price
For Korea, because Petitioners had reason to believe the sale was
made through a U.S. affiliate, Petitioners based constructed export
price (CEP) on a price quote/offer for sale of hot-rolled steel
produced in, and exported from, Korea.\28\ Petitioners made deductions
from U.S. price for movement expenses consistent with the delivery
terms, imputed credit expenses, and deducted from U.S. price trading
company/distributor/reseller mark-ups estimated using publicly reported
expenses in the most recently available annual report of a distributor
of steel.\29\
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\28\ See Korea AD Initiation Checklist.
\29\ Id.
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Normal Value
For Australia, Brazil, Japan, Korea, and Turkey, Petitioners
provided home market price information obtained through market research
for hot-rolled steel produced in and offered for sale in each of these
countries.\30\ For all five of these countries, Petitioners provided an
affidavit or declaration from a market researcher for the price
information.\31\ For Brazil, Petitioners made deductions from the home
market price for movement expenses and taxes consistent with the
delivery terms.\32\ For Korea, home market imputed credit expenses were
deducted from the price.\33\ Petitioners made no other adjustments to
the offer prices to calculate NV, as no others were warrented by the
terms associated with the offers.\34\
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\30\ See Australia AD Initiation Checklist, Brazil AD Initiation
Checklist, Japan AD Initiation Checklist, Korea AD Initiation
Checklist, and Turkey AD Initiation Checklist.
\31\ Id.; see also Memorandum to the File, ``Telephone Call to
Foreign Market Researcher Regarding Antidumping Petition,'' on each
of the country-specific records, dated August 20, 2015 (Australia),
August 20, 2015 (Brazil), August 25, 2015 (Japan), and August 25,
2015 (Korea).
\32\ See Brazil AD Initiation Checklist.
\33\ See Korea AD Initiation Checklist.
\34\ See Australia AD Initiation Checklist, Brazil AD Initiation
Checklist, Japan AD Initiation Checklist, Korea AD Initiation
Checklist, and Turkey AD Initiation Checklist.
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For Korea, and Turkey, Petitioners provided information that sales
of hot-rolled steel in the respective home markets were made at prices
below the cost of production (COP), and for the United Kingdom, and the
Netherlands, Petitioners did not provide home market price information
because, as noted below, they were unable to obtain home market prices.
For all four of these countries, Petitioners calculated NV based on
constructed value (CV).\35\ For further discussion of COP and NV based
on CV, see below.\36\
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\35\ See Korea AD Initiation Checklist, Netherlands AD
Initiation Checklist, Turkey AD Initiation Checklist, and United
Kingdom AD Initiation Checklist.
\36\ In accordance with section 505(a) of the Trade Preferences
Extension Act of 2015, amending section 773(b)(2) of the Act, for
all of the investigations, the Department will request information
necessary to calculate the CV and COP to determine whether there are
reasonable grounds to believe or suspect that sales of the foreign
like product have been made at prices that represent less than the
COP of the product. The Department will no longer require a COP
allegation to conduct this analysis.
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Normal Value Based on Constructed Value
Pursuant to section 773(b)(3) of the Act, COP consists of the cost
of manufacturing (COM); selling, general and administrative (SG&A)
expenses; financial expenses; and packing expenses. Petitioners
calculated COM based on Petitioners' experience adjusted for known
differences between producing in the United States and producing in the
respective country (i.e., Korea, the Netherlands, Turkey, and the
United Kingdom), during the proposed POI.\37\ Using publicly-available
data to account for price differences, Petitioners multiplied the
surrogate usage quantities by the submitted value of the inputs used to
manufacture hot-rolled steel in each country.\38\ For Korea, the
Netherlands, Turkey, and the United Kingdom, labor rates were derived
from publicly available sources multiplied by the product-specific
usage rates.\39\ For Korea, the Netherlands, Turkey, and the United
Kingdom, to determine factory overhead, SG&A, and financial expense
rates, Petitioners relied on financial statements of producers of
comparable merchandise operating in the respective foreign country.\40\
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\37\ See Korea AD Initiation Checklist, Netherlands AD
Initiation Checklist, Turkey AD Initiation Checklist, and United
Kingdom AD Initiation Checklist.
\38\ Id.
\39\ Id.
\40\ Id.
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For Turkey and Korea, because certain home market prices fell below
COP, pursuant to sections 773(a)(4), 773(b), and 773(e) of the Act, as
noted above, Petitioners calculated NV also based on CV for those
countries.\41\ For the Netherlands and the United Kingdom, Petitioners
indicated they were unable to obtain home market prices; accordingly,
Petitioners based NV only on CV for those countries.\42\ Pursuant to
section 773(e) of the Act, CV consists of the COM, SG&A, financial
expenses, packing expenses, and profit. Petitioners calculated CV using
the same average COM, SG&A, and financial expenses, used to calculate
COP.\43\ Petitioners relied on the financial statements of the same
producers that they used for calculating manufacturing overhead, SG&A,
and financial expenses to calculate the profit rate. For Turkey, we
made an adjustment to the Petitioners' calculated profit rate.\44\
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\41\ See Turkey AD Initiation Checklist, and Korea Initiation
Checklist.
\42\ See Netherlands AD Initiation Checklist, and United Kingdom
AD Initiation Checklist.
\43\ See Korea AD Initiation Checklist, Netherlands AD
Initiation Checklist, Turkey AD Initiation Checklist, and United
Kingdom AD Initiation Checklist.
\44\ See Turkey AD Initiation Checklist.
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Fair Value Comparisons
Based on the data provided by Petitioners, there is reason to
believe
[[Page 54265]]
that imports of hot-rolled steel from Australia, Brazil, Japan, Korea,
the Netherlands, Turkey, and the United Kingdom, are being, or are
likely to be, sold in the United States at less-than-fair value. Based
on comparisons of EP or CEP to NV in accordance with section 773(a) of
the Act, the estimated dumping margin(s) for hot-rolled steel are as
follows: (1) Australia is 99.20 percent; \45\ (2) Brazil is 34.28
percent; \46\ (3) Japan range from 16.15 to 34.53 percent; \47\ (4)
Korea range from 86.96 to 158.93 percent; \48\ (5) the Netherlands
range from 55.21 to 173.17 percent; \49\ (6) Turkey range from 96.77 to
197.41 percent; \50\ and (7) the United Kingdom range from 50.63 to
161.75 percent.\51\
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\45\ See Australia AD Initiation Checklist.
\46\ See Brazil AD Initiation Checklist.
\47\ See Japan AD Initiation Checklist.
\48\ See Korea AD Initiation Checklist.
\49\ See Netherlands AD Initiation Checklist.
\50\ See Turkey AD Initiation Checklist.
\51\ See United Kingdom AD Initiation Checklist.
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Initiation of Less-than-Fair-Value Investigations
Based upon the examination of the AD Petitions on hot-rolled steel
from Australia, Brazil, Japan, Korea, the Netherlands, Turkey, and the
United Kingdom, we find that Petitions meet the requirements of section
732 of the Act. Therefore, we are initiating AD investigations to
determine whether imports of hot-rolled steel from Australia, Brazil,
Japan, Korea, the Netherlands, Turkey, and the United Kingdom, are
being, or are likely to be, sold in the United States at less-than-fair
value. In accordance with section 733(b)(1)(A) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will make our preliminary
determinations no later than 140 days after the date of this
initiation.
On June 29, 2015, the President of the United States signed into
law the Trade Preferences Extension Act of 2015, which made numerous
amendments to the AD and CVD law.\52\ The 2015 law does not specify
dates of application for those amendments. On August 6, 2015, the
Department published an interpretative rule, in which it announced the
applicability dates for each amendment to the Act, except for
amendments contained in section 771(7) of the Act, which relate to
determinations of material injury by the ITC.\53\ The amendments to
sections 771(15), 773, 776, and 782 of the Act are applicable to all
determinations made on or after August 6, 2015, and, therefore, apply
to these AD investigations.\54\
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\52\ See Trade Preferences Extension Act of 2015, Pub. L. 114-
27, 129 Stat. 362 (2015).
\53\ See Dates of Application of Amendments to the Antidumping
and Countervailing Duty Laws Made by the Trade Preferences Extension
Act of 2015, 80 FR 46793 (August 6, 2015) (Applicability Notice).
\54\ Id. at 46794-95. The 2015 amendments may be found at
https://www.congress.gov/bill/114th-congress/house-bill/1295/text/pl.
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Respondent Selection
Petitioners named six companies in Brazil, five companies in Japan,
four companies in Korea, four companies in the Netherlands, six
companies in Turkey, and five companies in the United Kingdom, as
producers/exporters of hot-rolled steel.\55\ Following standard
practice in AD investigations involving market economy countries, the
Department intends to select respondents based on U.S. Customs and
Border Protection (CBP) data for U.S. imports under the appropriate
HTSUS numbers listed in the ``Scope of Investigations'' section above.
We intend to release the CBP data under Administrative Protective Order
(APO) to all parties with access to information protected by APO within
five business days of publication of this Federal Register notice.
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\55\ See Volume I of the Petitions, at 15 and Exhibit I-8.
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Although the Department normally relies on the number of producers/
exporters identified in the petition and/or import data from CBP to
determine whether to select a limited number of producers/exporters for
individual examination in AD investigations, Petitioners identified
only one company as a producer/exporter of hot-rolled steel in
Australia: BlueScope Steel.\56\ Petitioners provided independent,
third-party sources as support for their claim regarding BlueScope
Steel. Additionally, we currently know of no additional producers/
exporters of subject merchandise from Australia. Accordingly, the
Department intends to examine all known producers/exporters in the
investigation for Australia (i.e., the company named in the petition).
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\56\ See Volume I of the Petitions, at Exhibit I-8; see also
Volume II of the Petitions, at 3 and Exhibit II-4.
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Interested parties wishing to comment regarding respondent
selection must do so within seven business days of the publication of
this notice. Comments must be filed electronically using ACCESS. An
electronically-filed document must be received successfully in its
entirety by the Department's electronic records system, ACCESS, by 5
p.m. ET by the date noted above. We intend to make our decision
regarding respondent selection within 20 days of publication of this
notice.
Distribution of Copies of the Petitions
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public version of the Petitions have been
provided to the governments of Australia, Brazil, Japan, Korea, the
Netherlands, Turkey, and the United Kingdom via ACCESS. To the extent
practicable, we will attempt to provide a copy of the public version of
the Petitions to each exporter named in the Petitions, as provided
under 19 CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our initiation, as required by section
732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petitions were filed, whether there is a reasonable
indication that imports of hot-rolled steel from Australia, Brazil,
Japan, Korea, the Netherlands, Turkey, and/or the United Kingdom are
materially injuring or threatening material injury to a U.S.
industry.\57\ A negative ITC determination for any country will result
in the investigation being terminated with respect to that country;
\58\ otherwise, these investigations will proceed according to
statutory and regulatory time limits.
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\57\ See section 733(a) of the Act.
\58\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
Evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by the Department; and (v) evidence other than
factual information described in (i)-(iv). The regulation requires any
party, when submitting factual information, to specify under which
subsection of 19 CFR 351.102(b)(21) the information is being submitted
and, if the information is submitted to rebut, clarify, or correct
factual information already on the record, to provide an explanation
identifying the information already on the record that the factual
information seeks to rebut, clarify, or correct. Time limits for the
submission of factual information are addressed in 19 CFR 351.301,
which provides specific time limits based on the type of factual
information being submitted. Please review the regulations prior to
[[Page 54266]]
submitting factual information in these investigations.
Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under Part 351, or as otherwise
specified by the Secretary. In general, an extension request will be
considered untimely if it is filed after the expiration of the time
limit established under Part 351 expires. For submissions that are due
from multiple parties simultaneously, an extension request will be
considered untimely if it is filed after 10 a.m. on the due date. Under
certain circumstances, we may elect to specify a different time limit
by which extension requests will be considered untimely for submissions
which are due from multiple parties simultaneously. In such a case, we
will inform parties in the letter or memorandum setting forth the
deadline (including a specified time) by which extension requests must
be filed to be considered timely. An extension request must be made in
a separate, stand-alone submission; under limited circumstances we will
grant untimely-filed requests for the extension of time limits. Review
Extension of Time Limits; Final Rule, 78 FR 57790 (September 20, 2013),
available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information in this segment.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\59\
Parties are hereby reminded that revised certification requirements are
in effect for company/government officials, as well as their
representatives. Investigations initiated on the basis of Petitions
filed on or after August 16, 2013, and other segments of any AD or CVD
proceedings initiated on or after August 16, 2013, should use the
formats for the revised certifications provided at the end of the Final
Rule.\60\ The Department intends to reject factual submissions if the
submitting party does not comply with applicable revised certification
requirements.
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\59\ See section 782(b) of the Act.
\60\ See Certification of Factual Information to Import
Administration during Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also
frequently asked questions regarding the Final Rule, available at
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. On January 22, 2008, the
Department published Antidumping and Countervailing Duty Proceedings:
Documents Submission Procedures; APO Procedures, 73 FR 3634 (January
22, 2008). Parties wishing to participate in these investigations
should ensure that they meet the requirements of these procedures
(e.g., the filing of letters of appearance as discussed in 19 CFR
351.103(d)).
This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: August 31, 2015.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigations
The products covered by these investigations are certain hot-
rolled, flat-rolled steel products, with or without patterns in
relief, and whether or not annealed, painted, varnished, or coated
with plastics or other non-metallic substances. The products covered
do not include those that are clad, plated, or coated with metal.
The products covered include coils that have a width or other
lateral measurement (``width'') of 12.7 mm or greater, regardless of
thickness, and regardless of form of coil (e.g., in successively
superimposed layers, spirally oscillating, etc.). The products
covered also include products not in coils (e.g., in straight
lengths) of a thickness of less than 4.75 mm and a width that is
12.7 mm or greater and that measures at least 10 times the
thickness. The products described above may be rectangular, square,
circular, or other shape and include products of either rectangular
or non-rectangular cross-section where such cross-section is achieve
subsequent to the rolling process, i.e., products which have been
``worked after rolling'' (e.g., products which have been beveled or
rounded at the edges). For purposes of the width and thickness
requirements referenced above:
(1) Where the nominal and actual measurements vary, a product is
within the scope if application of either the nominal or actual
measurement would place it within the scope based on the definitions
set forth above unless the resulting measurement makes the product
covered by the existing antidumping \61\ or countervailing duty \62\
orders on Certain Cut-To-Length Carbon-Quality Steel Plate Products
From the Republic of Korea (A-580-836; C-580-837), and
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\61\ Notice of Amendment of Final Determinations of Sales at
Less Than Fair Value and Antidumping Duty Orders: Certain Cut-To-
Length Carbon-Quality Steel Plate Products From France, India,
Indonesia, Italy, Japan and the Republic of Korea, 65 FR 6585
(February 10, 2000).
\62\ Notice of Amended Final Determinations: Certain Cut-to-
Length Carbon-Quality Steel Plate From India and the Republic of
Korea; and Notice of Countervailing Duty Orders: Certain Cut-To-
Length Carbon-Quality Steel Plate From France, India, Indonesia,
Italy, and the Republic of Korea, 65 FR 6587 (February 10, 2000).
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(2) where the width and thickness vary for a specific product
(e.g., the thickness of certain products with non-rectangular cross-
section, the width of certain products with non-rectangular shape,
etc.), the measurement at its greatest width or thickness applies.
Steel products included in the scope of these investigations 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:
2.50 percent of manganese, or
3.30 percent of silicon, or
1.50 percent of copper, or
1.50 percent of aluminum, or
1.25 percent of chromium, or
0.30 percent of cobalt, or
0.40 percent of lead, or
2.00 percent of nickel, or
0.30 percent of tungsten, or
0.80 percent of molybdenum, or
0.10 percent of niobium, or
0.30 percent of vanadium, or
0.30 percent of zirconium.
Unless specifically excluded, products are included in this
scope regardless of levels of boron and titanium.
For example, specifically included in this scope are vacuum
degassed, fully stabilized (commonly referred to as interstitial-
free (IF)) steels, high strength low alloy (HSLA) steels, the
substrate for motor lamination steels, Advanced High Strength Steels
(AHSS), and Ultra High Strength Steels (UHSS). 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. AHSS and UHSS are considered high tensile
strength and high elongation steels, although AHSS and UHSS are
covered whether or not they are high tensile strength or high
elongation steels.
Subject merchandise includes hot-rolled steel that has been
further processed in a third country, including but not limited to
pickling, oiling, levelling, annealing, tempering, temper rolling,
skin passing, painting, varnishing, trimming, cutting, punching,
and/or slitting, or any other processing that would not otherwise
remove the merchandise from the scope of the investigations if
performed in the country of manufacture of the hot-rolled steel.
All products that meet the written physical description, and in
which the chemistry quantities do not exceed any one of the noted
element levels listed above, are within the scope of these
investigations unless
[[Page 54267]]
specifically excluded. The following products are outside of and/or
specifically excluded from the scope of these investigations:
Universal mill plates (i.e., hot-rolled, flat-rolled
products not in coils that have been rolled on four faces or in a
closed box pass, of a width exceeding 150 mm but not exceeding 1250
mm, of a thickness not less than 4.0 mm, and without patterns in
relief);
Products that have been cold-rolled (cold-reduced)
after hot-rolling; \63\
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\63\ For purposes of this scope exclusion, rolling operations
such as a skin pass, levelling, temper rolling or other minor
rolling operations after the hot-rolling process for purposes of
surface finish, flatness, shape control, or gauge control do not
constitute cold-rolling sufficient to meet this exclusion.
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Ball bearing steels; \64\
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\64\ Ball bearing steels are defined as steels which contain, in
addition to iron, each of the following elements by weight in the
amount specified: (i) Not less than 0.95 nor more than 1.13 percent
of carbon; (ii) not less than 0.22 nor more than 0.48 percent of
manganese; (iii) none, or not more than 0.03 percent of sulfur; (iv)
none, or not more than 0.03 percent of phosphorus; (v) not less than
0.18 nor more than 0.37 percent of silicon; (vi) not less than 1.25
nor more than 1.65 percent of chromium; (vii) none, or not more than
0.28 percent of nickel; (viii) none, or not more than 0.38 percent
of copper; and (ix) none, or not more than 0.09 percent of
molybdenum.
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Tool steels; \65\ and
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\65\ Tool steels are defined as steels which contain the
following combinations of elements in the quantity by weight
respectively indicated: (i) More than 1.2 percent carbon and more
than 10.5 percent chromium; or (ii) not less than 0.3 percent carbon
and 1.25 percent or more but less than 10.5 percent chromium; or
(iii) not less than 0.85 percent carbon and 1 percent to 1.8
percent, inclusive, manganese; or (iv) 0.9 percent to 1.2 percent,
inclusive, chromium and 0.9 percent to 1.4 percent, inclusive,
molybdenum; or (v) not less than 0.5 percent carbon and not less
than 3.5 percent molybdenum; or (vi) not less than 0.5 percent
carbon and not less than 5.5 percent tungsten.
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Silico-manganese steels; \66\
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\66\ Silico-manganese steel is defined as steels containing by
weight: (i) Not more than 0.7 percent of carbon; (ii) 0.5 percent or
more but not more than 1.9 percent of manganese, and (iii) 0.6
percent or more but not more than 2.3 percent of silicon.
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The products subject to these investigations are currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under item numbers: 7208.10.1500, 7208.10.3000,
7208.10.6000, 7208.25.3000, 7208.25.6000, 7208.26.0030,
7208.26.0060, 7208.27.0030, 7208.27.0060, 7208.36.0030,
7208.36.0060, 7208.37.0030, 7208.37.0060, 7208.38.0015,
7208.38.0030, 7208.38.0090, 7208.39.0015, 7208.39.0030,
7208.39.0090, 7208.40.6030, 7208.40.6060, 7208.53.0000,
7208.54.0000, 7208.90.0000, 7210.70.3000, 7211.14.0030,
7211.14.0090, 7211.19.1500, 7211.19.2000, 7211.19.3000,
7211.19.4500, 7211.19.6000, 7211.19.7530, 7211.19.7560,
7211.19.7590, 7225.11.0000, 7225.19.0000, 7225.30.3050,
7225.30.7000, 7225.40.7000, 7225.99.0090, 7226.11.1000,
7226.11.9030, 7226.11.9060, 7226.19.1000, 7226.19.9000,
7226.91.5000, 7226.91.7000, and 7226.91.8000. The products subject
to the investigations may also enter under the following HTSUS
numbers: 7210.90.9000, 7211.90.0000, 7212.40.1000, 7212.40.5000,
7212.50.0000, 7214.91.0015, 7214.91.0060, 7214.91.0090,
7214.99.0060, 7214.99.0075, 7214.99.0090, 7215.90.5000,
7226.99.0180, and 7228.60.6000.
The HTSUS subheadings above are provided for convenience and
U.S. Customs purposes only. The written description of the scope of
the investigations is dispositive.
[FR Doc. 2015-22557 Filed 9-8-15; 8:45 a.m.]
BILLING CODE 3510-DS-P
