Antidumping and Countervailing Duty Investigations of Corrosion-Resistant Steel Products From India, Italy, the People's Republic of China, the Republic of Korea, and Taiwan: Preliminary Determinations of Critical Circumstances, 68504-68508 [2015-28252]

Download as PDF 68504 Federal Register / Vol. 80, No. 214 / Thursday, November 5, 2015 / Notices controls applicable to materials and related technology. DEPARTMENT OF COMMERCE Foreign-Trade Zones Board Agenda [B–53–2015] Application for Additional Production Authority; The Coleman Company, Inc., Subzone 119I, (Textile-Based Personal Flotation Devices); Notice of Public Hearing and Extension of Comment Period At the request of the applicant, a public hearing will be held on the application for additional production authority submitted by The Coleman Company, Inc., for activity within Subzone 119I in Sauk Rapids, Minnesota (80 FR 49986, 8–18–2015). The Commerce examiner will hold the public hearing on December 3, 2015, at 9:30 a.m., at the U.S. Department of Commerce, Hoover Building, Room 3407, 1401 Constitution Avenue NW., Washington, DC 20230. Interested parties should indicate their intent to participate in the hearing and provide a summary of their remarks (submitted to ftz@trade.gov or the address indicated below) no later than November 30, 2015. The comment period for the case referenced above will be extended through January 4, 2016. Rebuttal comments may be submitted during the subsequent 15-day period, until January 19, 2016. Submissions (signed original and one electronic copy) shall be addressed to the FTZ Board’s Executive Secretary at: Foreign-Trade Zones Board, U.S. Department of Commerce, Room 21013, 1401 Constitution Avenue NW., Washington, DC 20230–0002. For further information, contact Pierre Duy at Pierre.Duy@trade.gov or (202) 482–1378. Dated: October 30, 2015. Andrew McGilvray, Executive Secretary. OPEN SESSION: 1. Opening Remarks and Introduction. 2. Remarks from BIS senior management. 3. Report from working groups: Composite Working Group, Biological Working Group, Pump and Valves Working Group. 4. Report on regime-based activities. 5. Public Comments and New Business. The open session will be accessible via teleconference to 20 participants on a first come, first serve basis. To join the conference, submit inquiries to Ms. Yvette Springer at Yvette.Springer@ bis.doc.gov no later than November 12, 2015. A limited number of seats will be available during the public session of the meeting. Reservations are not accepted. To the extent time permits, members of the public may present oral statements to the Committee. The public may submit written statements at any time before or after the meeting. However, to facilitate distribution of public presentation materials to Committee members, the Committee suggests that presenters forward the public presentation materials prior to the meeting to Ms. Springer via email. For more information, call Yvette Springer at (202) 482–2813. [FR Doc. 2015–28199 Filed 11–4–15; 8:45 am] BILLING CODE P [FR Doc. 2015–28191 Filed 11–4–15; 8:45 am] [A–533–863, A–475–832, A–570–026, A–580– 878, A–583–856, C–533–864, C–475–833, C– 570–027, C–580–879, C–583–857] International Trade Administration BILLING CODE 3510–JT–P Transportation and Related Equipment; Technical Advisory Committee Antidumping and Countervailing Duty Investigations of Corrosion-Resistant Steel Products From India, Italy, the People’s Republic of China, the Republic of Korea, and Taiwan: Preliminary Determinations of Critical Circumstances Notice of Open Meeting AGENCY: The Transportation and Related Equipment Technical Advisory Committee will meet on November 18, 2015, 9:30 a.m., in the Herbert C. Hoover Building, Room 3884, 14th Street between Constitution & Pennsylvania Avenues NW., Washington, DC. The Committee advises the Office of the Assistant Secretary for Export Administration with respect to technical questions that affect the level of export controls applicable to transportation and related equipment or technology. 1 See Petitions for the Imposition of Antidumping and Countervailing Duties Against CorrosionResistant Steel Products from India, Italy, the Bureau of Industry and Security DEPARTMENT OF COMMERCE Bureau of Industry and Security Materials Technical Advisory Committee; Notice of Open Meeting jstallworth on DSK7TPTVN1PROD with NOTICES Dated: October 30, 2015. Yvette Springer, Committee Liaison Officer. DEPARTMENT OF COMMERCE DEPARTMENT OF COMMERCE BILLING CODE 3510–DS–P The Materials Technical Advisory Committee will meet on November 19, 2015, 10:00 a.m., Herbert C. Hoover Building, Room 3884, 14th Street between Constitution & Pennsylvania Avenues NW., Washington, DC. The Committee advises the Office of the Assistant Secretary for Export Administration with respect to technical questions that affect the level of export 15:06 Nov 04, 2015 Public Session 1. Welcome and Introductions. 2. Status reports by working group chairs. 3. Public comments and Proposals. The open session will be accessible via teleconference to 20 participants on a first come, first serve basis. To join the conference, submit inquiries to Ms. Yvette Springer at Yvette.Springer@ bis.doc.gov no later than November 10, 2015. A limited number of seats will be available during the public session of the meeting. Reservations are not accepted. To the extent time permits, members of the public may present oral statements to the Committee. The public may submit written statements at any time before or after the meeting. However, to facilitate distribution of public presentation materials to Committee members, the Committee suggests that presenters forward the public presentation materials prior to the meeting to Ms. Springer via email. For more information, call Yvette Springer at (202) 482–2813. Dated: October 30, 2015. Yvette Springer, Committee Liaison Officer. [FR Doc. 2015–28280 Filed 11–4–15; 8:45 am] VerDate Sep<11>2014 Agenda Jkt 238001 PO 00000 Frm 00013 Fmt 4703 Sfmt 4703 Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: On June 3, 2015, the Department of Commerce (the Department) received antidumping duty (AD) and countervailing duty (CVD) petitions concerning imports of corrosion-resistant steel products (CORE) from India, Italy, the People’s Republic of China (PRC), the Republic of Korea, and Taiwan.1 On July 23, E:\FR\FM\05NON1.SGM 05NON1 Federal Register / Vol. 80, No. 214 / Thursday, November 5, 2015 / Notices 2015, the Department received timely allegations that critical circumstances exist with respect to imports of the merchandise under investigation.2 Based on information provided by Petitioners, data placed on the record of these investigations by the mandatory respondents, and data collected by the Department, the Department preliminarily determines that critical circumstances exist for imports of CORE from certain producers and exporters from Italy, the PRC, Korea, and Taiwan. DATES: Effective date: November 5, 2015. FOR FURTHER INFORMATION CONTACT: Mark Hoadley, AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482–3148. SUPPLEMENTARY INFORMATION: jstallworth on DSK7TPTVN1PROD with NOTICES Background Section 703(e)(1) of the Tariff Act of 1930, as amended (the Act), provides that the Department will preliminarily determine that critical circumstances exist in CVD investigations if there is a reasonable basis to believe or suspect: (A) that ‘‘the alleged countervailable subsidy’’ is inconsistent with the Subsidies and Countervailing Measures (SCM) Agreement of the World Trade Organization, and (B) that there have been massive imports of the subject merchandise over a relatively short period. Section 733(e)(1) of the Act provides that the Department will preliminarily determine that critical circumstances exist in AD investigations if there is a reasonable basis to believe or suspect: (A)(i) That there is a history of dumping and material injury by reason of dumped imports in the United States or elsewhere of the subject merchandise, or (ii) that the person by whom, or for whose account, the merchandise was imported knew or should have known that the exporter was selling the subject merchandise at less than its fair value and that there was likely to be material injury by reason of such sales, and (B) that there have been massive imports of the People’s Republic of China (PRC), the Republic of Korea, and Taiwan, dated June 3, 2015 (the Petitions). The petitioners for these investigations are United States Steel Corporation, Nucor Corporation, ArcelorMittal USA, AK Steel Corporation, Steel Dynamics, Inc., and California Steel Industries, Inc. (Petitioners). 2 See Corrosion-Resistant Steel Products from India, Italy, the People’s Republic of China, the Republic of Korea, and Taiwan: Critical Circumstances Allegations, July 23, 2105 (Critical Circumstances Allegation). VerDate Sep<11>2014 15:06 Nov 04, 2015 Jkt 238001 subject merchandise over a relatively short period. Section 19 CFR 351.206 provides that imports must increase by at least 15 percent during the ‘‘relatively short period’’ to be considered ‘‘massive’’ and defines a ‘‘relatively short period’’ as normally being the period beginning on the date the proceeding begins (i.e., the date the petition is filed) and ending at least three months later.3 The regulations also provide, however, that, if the Department finds that importers, or exporters or producers, had reason to believe, at some time prior to the beginning of the proceeding, that a proceeding was likely, the Department may consider a period of not less than three months from that earlier time.4 Alleged Countervailable Subsidies Are Inconsistent With the SCM Agreement To determine whether an alleged countervailable subsidy is inconsistent with the SCM Agreement, in accordance with section 703(e)(1)(A) of the Act, the Department considered the evidence currently on the record of the five CVD investigations. Specifically, as determined in our initiation checklists, the following subsidy programs, alleged in the Petitions and supported by information reasonably available to Petitioners, appear to be either export contingent or contingent upon the use of domestic goods over imported goods, which would render them inconsistent with the SCM Agreement. • India: Four export-contingent duty exemption/remission schemes,5 four duty and tax exemption programs for ‘‘Export Oriented Units,’’ 6 the Export Promotion of Capital Goods Scheme,7 Pre-Shipment and Post-Shipment Export Financing,8 Market Development Assistance Scheme,9 Market Access Initiative,10 Focus Product Scheme,11 Status Certificate Program,12 five duty and tax exemption programs for special economic zones,13 Incremental Exports Incentivisation Scheme,14 and three duty and tax exemption programs provided by the state of Gujarat for special economic zones 15 3 See 19 CFR 351.206(i). 4 Id. 5 See India CVD Initiation Checklist, June 23, 2015, at 7–9. 6 Id. at 9–12. 7 Id. at 12. 8 Id. at 13. 9 Id. at 13–14 10 Id. at 14 11 Id. at 14–15. 12 Id. at 16. 13 Id. at 17–20 14 Id. at 23–24. 15 Id. at 32–34. PO 00000 Frm 00014 Fmt 4703 Sfmt 4703 68505 • Italy: Several export-contingent preferential financial products provided by the Special Section for Export Credit Insurance 16 • The PRC: Export loans,17 Income Tax Credits for Domestically-Owned Companies Purchasing Domestically Produced Equipment,18 Preferential Income Tax Subsidies for ForeignInvested Enterprises—Export Oriented FIEs,19 Foreign Trade Development Fund Grants,20 Export Assistance Grants,21 Programs to Rebate Antidumping Legal Fees,22 Subsidies for Development of Famous Export Brands and China World Top Brands,23 Sub-Central Government Programs to Promote Famous Export Brands and China World Top Brands,24 and Export Interest Subsidies 25 • Korea: Several export-contingent preferential financial products and services provided by the Korean Export-Import Bank Countervailable Subsidy Programs,26 preferential loans from the Korea Development Bank and Industrial Base Fund,27 and export financing provided by the Korea Trade Insurance Corporation 28 • Taiwan: Grants for International Development Activities 29 Therefore, the Department preliminarily determines that there are alleged subsidies in each CVD investigation inconsistent with the SCM agreement. History of Dumping and Material Injury/Knowledge of Sales Below Fair Value and Material Injury In order to determine whether there is a history of dumping pursuant to section 733(e)(1)(A)(i) of the Act, the Department generally considers current or previous AD orders on subject merchandise from the country in question in the United States and current orders imposed by other countries with regard to imports of the same merchandise. The Department has previously issued an AD order on CORE 16 See Italy CVD Initiation Checklist, June 23, 2015, at 15–16. 17 See PRC CVD Initiation Checklist, June 23, 2015, at 8–9. 18 Id. at 18–19. 19 Id. at 22. 20 Id. at 36–37. 21 Id. at 37. 22 Id. at 37–38. 23 Id. at 38. 24 Id. at 39. 25 Id. at 40. 26 See Korea CVD Initiation Checklist, June 23, 2015, at 10–12. 27 Id. at 13–14. 28 Id. at 15–16. 29 See Taiwan CVD Initiation Checklist, June 23, 2015, at 14–15. E:\FR\FM\05NON1.SGM 05NON1 68506 Federal Register / Vol. 80, No. 214 / Thursday, November 5, 2015 / Notices jstallworth on DSK7TPTVN1PROD with NOTICES from Korea,30 based on nearly identical HTS categories, as well as AD orders on carbon steel flat products from the PRC.31 Moreover, there are current AD orders imposed by other World Trade Organization members against certain coated steel products (i.e., carbon steel flat products either clad, plated or coated with zinc, aluminum, or nickel) from Korea, the PRC, and Taiwan.32 Certain HTS numbers subject to these orders overlap with HTS numbers listed under our current CORE scope. Therefore, there is a history of dumping of subject merchandise exported from Korea, the PRC, and Taiwan. To determine whether importers knew or should have known that exporters were selling at less than fair value, we typically consider the magnitude of dumping margins, including margins alleged in petitions.33 The Department has found margins of 15 to 25 percent (depending on whether sales are export price sales or constructed export price sales) to be sufficient for this purpose.34 Dumping 30 See Notice of Amendment of Final Determinations of Sales at Less Than Fair Value and Antidumping Duty Orders: Certain Cut-ToLength Carbon-Quality Steel Plate Products From France, India, Indonesia, Italy, Japan and the Republic of Korea, 65 FR 6585 (February 10, 2000). 31 See Suspension Agreement on Certain Cut-toLength Carbon Steel Plate From the People’s Republic of China; Termination of Suspension Agreement and Notice of Antidumping Duty Order, 68 FR 60081 (October 21, 2003) and Notice of the Antidumping Duty Order: Certain Hot-Rolled Carbon Steel Flat Products From the People’s Republic of China, 66 FR 59561 (November 29, 2001). 32 See Australia—AD/CVD Order on Zinc Coated (Galvanised) Steel and Aluminum Zinc Coated Steel from the PRC, Korea, and Taiwan, Commonwealth of Australia Gazette, Anti-Dumping Duty Notice No. 2013/66 (August 5, 2013); Thailand—AD Order on Painted Hot Dip Galvanized Cold Rolled Steel and Painted Hot Dip Cold Rolled Steel Plated or Coated with Aluminum Zinc Alloys and Certain Hot Dip Cold Rolled Steel Plated or Coated with Aluminum Zinc Alloys from the PRC, Korea, and Taiwan: Royal Thai Gazette, Vol. 130, Special Section 3 (October 1, 2013) (updated re unpainted products, Royal Thai Gazette, Vol. 132, Special Section 32 (September 2, 2015)); Colombia—AD Order on Galvanized Smooth Sheet from the PRC: Diario Oficial, No. 49.084 (March 6, 2014); and Russia—AD Order on Cold-Rolled Flat Steel Products with Polymer Coating from the PRC: Eurasian Economic Commission, Decision No. 49 (May 24, 2012). 33 See, e.g., Notice of Preliminary Determinations of Critical Circumstances: Certain Cold-Rolled Carbon Steel Flat Products from Australia, the People’s Republic of China, India, the Republic of Korea, the Netherlands, and the Russian Federation, 67 FR 19157, 19158 (April 18, 2002) (unchanged in the final determination). 34 See, e.g., Preliminary Determination of Sales at Less Than Fair Value: Certain Cut-to-Length Carbon Steel Plate from the People’s Republic of China, 62 FR 31972, 31978 (June 11, 1997) (unchanged in the final determination) and Notice of Preliminary Determination of Sales at Less Than Fair Value, Negative Preliminary Determination of Critical Circumstances and Postponement of Final VerDate Sep<11>2014 15:06 Nov 04, 2015 Jkt 238001 margins alleged in all five AD petitions are significantly above the 15 to 25 percent threshold: 71.09 percent (India),35 123.76 percent (Italy),36 80.06 percent (Korea),37 120.20 percent (the PRC),38 and 84.40 percent (Taiwan).39 Therefore, on that basis, we preliminarily conclude importers knew or should have known exporters in all five countries were selling at less than fair value. To determine whether importers knew or should have known that there was likely to be material injury, we typically consider the preliminary injury determinations of the International Trade Commission (ITC).40 If the ITC finds material injury (as opposed to the threat of injury), we normally find that the ITC’s determination provided importers with sufficient knowledge of injury. Where, as in this case,41 the ITC finds only threat of material injury, the Department may consider additional sources of information, such as trade and price statistics or press reports.42 Petitioners placed several press reports on the record indicating injury. For example: U.S. steel companies are struggling against a combination of lower oil prices, oversupply and excessive imports fed by a strong dollar. Those headwinds have become a perfect storm that could lead to more idled plants and layoffs, and spur a major international trade case against China, which steel makers accuse of undercutting the market with artificially low-priced product. U.S. Steel executives have expressed the great concern about cheap imports. On Thursday, CEO and President Mario Longhi testified before the Congressional Steel Caucus and warned of long-term damage to Determination: Certain Frozen and Canned Warmwater Shrimp From the Socialist Republic of Vietnam, 69 FR 42672 (July 16, 2004) (unchanged in the final determination). 35 The Petitions, Volume VI at 5. 36 Id., Volume IX at 28. 37 Id., Volume IV at 13. 38 Id., Volume II at 15. 39 Id., Volume X at 7. 40 See, e.g., Certain Potassium Phosphate Salts from the People’s Republic of China: Preliminary Affirmative Determination of Critical Circumstances in the Antidumping Duty Investigation, 75 FR 24572, 24573 (May 5, 2010), unchanged in Certain Potassium Phosphate Salts from the People’s Republic of China: Final Determination of Sales at Less Than Fair Value and Termination of Critical Circumstances Inquiry, 75 FR 30377 (June 1, 2010). 41 See Certain Corrosion-Resistant Steel Products From China, India, Italy, Korea, and Taiwan, Investigation Nos. 701–TA–534–538 and 731–TA– 1274–1278 (Preliminary), 80 FR 44151 (July 24, 2015). 42 See, e.g., Notice of Final Determination of Sales at Less Than Fair Value: Hot-Rolled Flat-Rolled Carbon-Quality Steel Products from Japan, 64 FR 24329 (May 6, 1999) at Comment 2. PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 domestic steel makers from what the industry says is illegal dumping by foreign companies. China’s statesubsidized industry continue to pump out steel, even as demand slows at home. That has led to surging exports, particularly to the United States.43 In addition, the Department has relied on massive imports and high dumping margins as factors indicating importers knew or should have known that there was likely to be material injury.44 As noted above, dumping margins alleged in the five AD petitions range from 71.09 percent to 123.76 percent. As discussed below, we have determined imports were massive for certain producers/exporters shipping from Italy, Korea, the PRC, and Taiwan. Therefore, we preliminarily conclude importers knew or should have known that there was likely to be material injury as a result of sales sold at less than fair value, exported from all five countries. Massive Imports In determining whether there are ‘‘massive imports’’ over a ‘‘relatively short period,’’ pursuant to sections 703(e)(1)(B) and 733(e)(1)(B) of the Act, the Department normally compares the import volumes of the subject merchandise for at least three months immediately preceding the filing of the petition (i.e., the ‘‘base period’’) to a comparable period of at least three months following the filing of the petition (i.e., the ‘‘comparison period’’). Imports normally will be considered massive when imports during the comparison period have increased by 15 percent or more compared to imports during the base period. Based on evidence provided by Petitioners, the Department finds that pursuant to 19 CFR 351.206(i), importers, exporters or producers had reason to believe, at some time prior to the filing of the petition, that a proceeding was likely. Specifically, the Department concludes that the factual information provided by Petitioners indicates that by March 2015, importers, exporters or producers had reason to believe that proceedings were likely. Among the documents Petitioners provided to support their claim of socalled ‘‘early knowledge,’’ the Department finds the following particularly relevant. • On March 10, 2015, Steel Market Update acknowledged and responded to an influx of ‘‘recent’’ inquiries from 43 Critical Circumstances Allegation at Exhibit 8 (article published in the Pittsburgh Tribune). 44 Final Determination of Sales at Less Than Fair Value: Certain Cut-to-Length Carbon Steel Plate From the People’s Republic of China, 62 FR 61964, 61967 (November 20, 1997). E:\FR\FM\05NON1.SGM 05NON1 Federal Register / Vol. 80, No. 214 / Thursday, November 5, 2015 / Notices importers of cold-rolled steel and CORE steel products ‘‘asking questions about the potential for a trade case or antidumping filing by the domestic mills against foreign steel imports.’’ 45 • On March 26, 2015, American Metal Market issued a press release stating that nearly 70 percent of industry participants expected coldrolled and CORE steel cases to be filed in 2015.46 • On March 27, 2015, the Pittsburgh Tribune published an article stating that ‘‘domestic steel makers are beginning to take their case to Washington.’’ One expert quoted in the article concluded that a trade case appeared ‘‘inevitable.’’ 47 • On March 30, 2015, Barron’s published analysis by Credit Suisse concluding U.S. steel industry officials had ‘‘no intention of delay’’ and would pursue trade remedies as soon as possible. The article states that the U.S. industry would not pursue safeguard actions, but instead would pursue AD/ CVD remedies focused on hot-rolled coil, cold-rolled coil, and CORE steel products.48 While additional information presented in Petitioners’ exhibits indicate rumors of trade cases had been Country circulating as far back as 2014,49 the above statements indicate that by March 2015, these rumors had turned to expectations among steel importers, exporters, and producers that forthcoming petitions were inevitable. Thus, in order to determine whether there has been a massive surge in imports for each cooperating mandatory respondent, the Department compared the total volume of shipments from March 2015 through September 2015 (all months for which data was available) with the preceding sevenmonth period of August 2014 through February 2015. For ‘‘all others,’’ the Department compared Global Trade Atlas (GTA) data for the period March through August (the last month for which GTA data is currently available) with the proceeding six-month period of September 2014 through February 2015.50 We first subtracted shipments reported by the cooperating mandatory respondents from the GTA data. For non-cooperating mandatory respondents (i.e., those mandatory respondents that did not respond to our critical circumstances questionnaire or who otherwise indicated their unwillingness to participate in the investigations), we determined, on the basis of adverse facts Korea ............................. C–570–027 A–580–878 C–580–879 Angang, Duferco, Handan, Everbright, Baoshan Hyundai; All Other producers/exporters ............... All Other producers/exporters .............................. Taiwan ........................... A–583–856 All Other producers/exporters .............................. India ............................... C–583–857 A–533–863 All Other producers/exporters .............................. no companies ....................................................... Italy ................................ C–533–864 A–475–832 no companies ....................................................... no companies ....................................................... C–475–833 jstallworth on DSK7TPTVN1PROD with NOTICES Based on the criteria and findings discussed above, we preliminarily determine that critical circumstances exist with respect to imports of corrosion-resistant steel products shipped by certain producers/exporters. Our findings are summarized as follows. Yieh Phui (China) Technomaterial Co., Ltd. (YPC); All Other producers/exporters entitled to a separate rate. YPC; All Other producers/exporters. Dongkuk Steel Mill Co., Ltd. (Dongkuk/Union). Dongbu Steel Co., Ltd. (Dongbu); Dongkuk/ Union. Yieh Phui Enterprises Co., Ltd. (Yieh Phui); Prosperity Tieh Enterprises Co., Ltd. (Prosperity). Yieh Phui; Prosperity. Uttam Galva Steels, Ltd. (Uttam); JSW Steel Limited (JSW); All Other producers/exporters. Uttam; JSW; All Other producers/exporters. Acciaieria Arvedi S.p.A. (Arvedi); Marcegaglia S.p.A. (Marcegaglia); All Other producers/exporters. Arvedi; Marcegaglia; All Other producers/exporters. the PRC-wide entity; Tangshan; Baoshan ........... ILVA ...................................................................... 45 See Critical Circumstances Allegation at Exhibit 7. 46 Id. at Exhibit 11. 47 Id. at Exhibit 8. 48 Id. at Exhibit 10. 49 This fact is noted in identical submissions filed on August 3, 2015, on behalf of various respondents in the AD and CVD proceedings for Italy, Korea, and Taiwan. These submissions also claim Petitioners have not demonstrated the need for expedited action, but there is no requirement that such a need be demonstrated. Sections 703(e)(1) and 733(e)(1) of the Act call for prompt action by the Department. The submissions also argue that we cannot reach a preliminary critical circumstances determination when the ITC finds ‘‘threat of Jkt 238001 Conclusion Negative preliminary critical circumstances determination A–570–026 15:06 Nov 04, 2015 available,51 that there has been a massive surge in imports. Accordingly, we preliminarily determined the following producers/exporters had massive surges in imports.52 • Italy (C–475–833): ILVA S.p.A. (ILVA) • Korea (A–580–878): Hyundai Steel Company (Hyundai); ‘‘All Others’’ • Korea (C–580–879): ‘‘All Others’’ • PRC (A–570–026): the PRC-wide entity; Hebei Iron & Steel Co., Ltd. (Tangshan Branch) (Tangshan); Baoshan Iron & Steel Co., Ltd. (Baoshan) • PRC (C–570–027): Angang Group Hong Kong Company Ltd. (Angang); Duferco S.A. (Duferco); Handan Iron & Steel Group (Handan); Changshu Everbright Material Technology (Everbright); Baoshan • Taiwan (A–583–856 and C–583–857): ‘‘All Others’’ Affirmative preliminary critical circumstances determination Case No. PRC ............................... VerDate Sep<11>2014 68507 injury.’’ While it is correct that final measures cannot be applied before an order when the ITC finds ‘‘threat of injury,’’ the ITC has not yet issued a final determination. Moreover, as discussed above, the Department has previously issued preliminary affirmative critical circumstances determinations when the ITC has found ‘‘threat of injury.’’ Finally, the submissions also claim there is a seasonal increase in shipments at the beginning of the year in anticipation of spring and summer months. It is unclear, however, how such a seasonal increase would affect our calculations (given that our comparison period starts in March, after this seasonal increase would, apparently, have been long underway), and parties provided no suggestions for adjusting the shipment data on the record to account for the alleged seasonal increase. PO 00000 Frm 00016 Fmt 4703 Sfmt 4703 50 The Department gathered GTA data under the following harmonized tariff schedule numbers: 7210.30.0030, 7210.30.0060, 7210.41.0000, 7210.49.0030, 7210.49.0091, 7210.49.0095, 7210.61.0000, 7210.69.0000, 7210.70.6030, 7210.70.6060, 7210.70.6090, 7210.90.6000, 7210.90.9000, 7212.20.0000, 7212.30.1030, 7212.30.1090, 7212.30.3000, 7212.30.5000, 7212.40.1000, 7212.40.5000, 7212.50.0000, and 7212.60.0000. 51 See Section 776 of the Act. 52 See respective preliminary critical circumstances memoranda for each proceeding dated concurrently with this Federal Register notice. E:\FR\FM\05NON1.SGM 05NON1 68508 Federal Register / Vol. 80, No. 214 / Thursday, November 5, 2015 / Notices Final Critical Circumstances Determinations We will issue final determinations concerning critical circumstances when we issue our final subsidy and lessthan-fair-value determinations. All interested parties will have the opportunity to address these determinations in case briefs to be submitted after completion of the preliminary subsidies and less than fair value determinations. ITC Notification In accordance with sections 703(f) and 733(f) of the Act, we will notify the ITC of our determinations. jstallworth on DSK7TPTVN1PROD with NOTICES Suspension of Liquidation In accordance with sections 703(e)(2), because we have preliminarily found that critical circumstances exist with regard to imports exported by certain producers and exporters, if we make an affirmative preliminary determination that countervailable subsidies have been provided to these same producers/ exporters at above de minimis rates,53 we will instruct U.S. Customs and Border Protection (CBP) to suspend liquidation of all entries of subject merchandise from these producers/ exporters that are entered, or withdrawn from warehouse, for consumption on or after the date that is 90 days prior to the effective date of ‘‘provisional measures’’ (e.g., the date of publication in the Federal Register of the notice of an affirmative preliminary determination that countervailable subsidies have been provided at above de minimis rates). At such time, we will also instruct CBP to require a cash deposit equal to the estimated preliminary subsidy rates reflected in the preliminary determination published in the Federal Register. This suspension of liquidation will remain in effect until further notice. In accordance with sections 733(e)(2), because we have preliminarily found that critical circumstances exist with regard to imports exported by certain producers and exporters, if we make an affirmative preliminary determination that sales at less than fair value have been made by these same producers/ exporters at above de minimis rates,54 we will instruct CBP to suspend liquidation of all entries of subject merchandise from these producers/ exporters that are entered, or withdrawn from warehouse, for consumption on or 53 The preliminary determinations concerning the provision of countervailable subsidies are currently scheduled for November 2, 2015. 54 The preliminary determinations concerning sales at less than fair value are currently scheduled for December 21, 2015. VerDate Sep<11>2014 15:06 Nov 04, 2015 Jkt 238001 after the date that is 90 days prior to the effective date of ‘‘provisional measures’’ (e.g., the date of publication in the Federal Register of the notice of an affirmative preliminary determination of sales at less than fair value at above de minimis rates). At such time, we will also instruct CBP to require a cash deposit equal to the estimated preliminary dumping margins reflected in the preliminary determination published in the Federal Register. This suspension of liquidation will remain in effect until further notice. This notice is issued and published pursuant to section 777(i) of the Act and 19 CFR 351.206(c)(2). Dated: October 29, 2015. Paul Piquado, Assistant Secretary for Enforcement and Compliance. [FR Doc. 2015–28252 Filed 11–4–15; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–580–868] Large Residential Washers From the Republic of Korea: Amended Final Results of the Antidumping Duty Administrative Review; 2012–2014 Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the Department) is amending the final results of the administrative review of the antidumping duty (AD) order on large residential washers (LRWs) from the Republic of Korea (Korea) to correct a ministerial error. The period of review (POR) is August 3, 2012, through January 31, 2014. AGENCY: DATES: Effective Date: November 5, 2015. FOR FURTHER INFORMATION CONTACT: David Goldberger or Reza Karamloo, AD/CVD Operations, Office II, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482–4136 or (202) 482–4470, respectively. SUPPLEMENTARY INFORMATION: Background On September 8, 2015, the Department issued the final results of the administrative review of the AD PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 order on LRWs from Korea.1 On September 9, 2015, the Department disclosed to interested parties its calculations for the Final Results.2 On September 15, 2015, we received a timely ministerial error allegation from respondent LG Electronics, Inc. (LGE) regarding its margin calculation.3 We did not receive rebuttal comments from the petitioner. In the Final Results, we made a ministerial error by not excluding from our margin analysis certain U.S. sales with reported dates prior to August 3, 2012, the effective date of suspension of liquidation and the beginning of the POR.4 To correct the error identified by LGE, we included additional programming language in the margin program.5 Scope of the Order The products covered by the order are all large residential washers and certain subassemblies thereof from Korea. The products are currently classifiable under subheadings 8450.20.0040 and 8450.20.0080 of the Harmonized Tariff System of the United States (HTSUS). Products subject to this order may also enter under HTSUS subheadings 8450.11.0040, 8450.11.0080, 8450.90.2000, and 8450.90.6000. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise subject to this scope is dispositive.6 Ministerial Error Section 751(h) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.224(f) define a ‘‘ministerial error’’ as an error ‘‘in addition, subtraction, or other arithmetic function, clerical error resulting from inaccurate copying, duplication, or the like, and any similar type of unintentional error which the 1 See Large Residential Washers from the Republic of Korea: Final Results of the Antidumping Duty Administrative Review; 2012– 2014, 80 FR 55595 (September 16, 2015) (Final Results), and accompanying Issues and Decision Memorandum. 2 See Memorandum to the File, ‘‘Final Results Margin Calculation for LGE,’’ (September 8, 2015). 3 See Letter from LGE, ‘‘LG Electronics’ Request for Correction of Clerical Errors—Large Residential Washers from Korea,’’ (September 15, 2015). 4 See Memorandum to Melissa Skinner, Director, AD/CVD Operations, Office II, from David Goldberger and Reza Karamloo, International Trade Compliance Analysts, AD/CVD Operations, Office II, ‘‘Ministerial Error Allegation for the Final Results,’’ dated concurrently with this notice (Ministerial Error Memorandum). 5 Id., at 2–3. 6 For a complete description of the scope of the order see the Issues and Decision Memorandum accompanying the Final Results. The HTSUS numbers are revised from the numbers previously stated in the scope. E:\FR\FM\05NON1.SGM 05NON1

Agencies

[Federal Register Volume 80, Number 214 (Thursday, November 5, 2015)]
[Notices]
[Pages 68504-68508]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-28252]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-533-863, A-475-832, A-570-026, A-580-878, A-583-856, C-533-864, C-
475-833, C-570-027, C-580-879, C-583-857]


Antidumping and Countervailing Duty Investigations of Corrosion-
Resistant Steel Products From India, Italy, the People's Republic of 
China, the Republic of Korea, and Taiwan: Preliminary Determinations of 
Critical Circumstances

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: On June 3, 2015, the Department of Commerce (the Department) 
received antidumping duty (AD) and countervailing duty (CVD) petitions 
concerning imports of corrosion-resistant steel products (CORE) from 
India, Italy, the People's Republic of China (PRC), the Republic of 
Korea, and Taiwan.\1\ On July 23,

[[Page 68505]]

2015, the Department received timely allegations that critical 
circumstances exist with respect to imports of the merchandise under 
investigation.\2\ Based on information provided by Petitioners, data 
placed on the record of these investigations by the mandatory 
respondents, and data collected by the Department, the Department 
preliminarily determines that critical circumstances exist for imports 
of CORE from certain producers and exporters from Italy, the PRC, 
Korea, and Taiwan.
---------------------------------------------------------------------------

    \1\ See Petitions for the Imposition of Antidumping and 
Countervailing Duties Against Corrosion-Resistant Steel Products 
from India, Italy, the People's Republic of China (PRC), the 
Republic of Korea, and Taiwan, dated June 3, 2015 (the Petitions). 
The petitioners for these investigations are United States Steel 
Corporation, Nucor Corporation, ArcelorMittal USA, AK Steel 
Corporation, Steel Dynamics, Inc., and California Steel Industries, 
Inc. (Petitioners).
    \2\ See Corrosion-Resistant Steel Products from India, Italy, 
the People's Republic of China, the Republic of Korea, and Taiwan: 
Critical Circumstances Allegations, July 23, 2105 (Critical 
Circumstances Allegation).

---------------------------------------------------------------------------
DATES: Effective date: November 5, 2015.

FOR FURTHER INFORMATION CONTACT: Mark Hoadley, AD/CVD Operations, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230; telephone: (202) 482-3148.

SUPPLEMENTARY INFORMATION: 

Background

    Section 703(e)(1) of the Tariff Act of 1930, as amended (the Act), 
provides that the Department will preliminarily determine that critical 
circumstances exist in CVD investigations if there is a reasonable 
basis to believe or suspect: (A) that ``the alleged countervailable 
subsidy'' is inconsistent with the Subsidies and Countervailing 
Measures (SCM) Agreement of the World Trade Organization, and (B) that 
there have been massive imports of the subject merchandise over a 
relatively short period. Section 733(e)(1) of the Act provides that the 
Department will preliminarily determine that critical circumstances 
exist in AD investigations if there is a reasonable basis to believe or 
suspect: (A)(i) That there is a history of dumping and material injury 
by reason of dumped imports in the United States or elsewhere of the 
subject merchandise, or (ii) that the person by whom, or for whose 
account, the merchandise was imported knew or should have known that 
the exporter was selling the subject merchandise at less than its fair 
value and that there was likely to be material injury by reason of such 
sales, and (B) that there have been massive imports of the subject 
merchandise over a relatively short period. Section 19 CFR 351.206 
provides that imports must increase by at least 15 percent during the 
``relatively short period'' to be considered ``massive'' and defines a 
``relatively short period'' as normally being the period beginning on 
the date the proceeding begins (i.e., the date the petition is filed) 
and ending at least three months later.\3\ The regulations also 
provide, however, that, if the Department finds that importers, or 
exporters or producers, had reason to believe, at some time prior to 
the beginning of the proceeding, that a proceeding was likely, the 
Department may consider a period of not less than three months from 
that earlier time.\4\
---------------------------------------------------------------------------

    \3\ See 19 CFR 351.206(i).
    \4\ Id.
---------------------------------------------------------------------------

Alleged Countervailable Subsidies Are Inconsistent With the SCM 
Agreement

    To determine whether an alleged countervailable subsidy is 
inconsistent with the SCM Agreement, in accordance with section 
703(e)(1)(A) of the Act, the Department considered the evidence 
currently on the record of the five CVD investigations. Specifically, 
as determined in our initiation checklists, the following subsidy 
programs, alleged in the Petitions and supported by information 
reasonably available to Petitioners, appear to be either export 
contingent or contingent upon the use of domestic goods over imported 
goods, which would render them inconsistent with the SCM Agreement.

 India: Four export-contingent duty exemption/remission 
schemes,\5\ four duty and tax exemption programs for ``Export Oriented 
Units,'' \6\ the Export Promotion of Capital Goods Scheme,\7\ Pre-
Shipment and Post-Shipment Export Financing,\8\ Market Development 
Assistance Scheme,\9\ Market Access Initiative,\10\ Focus Product 
Scheme,\11\ Status Certificate Program,\12\ five duty and tax exemption 
programs for special economic zones,\13\ Incremental Exports 
Incentivisation Scheme,\14\ and three duty and tax exemption programs 
provided by the state of Gujarat for special economic zones \15\
---------------------------------------------------------------------------

    \5\ See India CVD Initiation Checklist, June 23, 2015, at 7-9.
    \6\ Id. at 9-12.
    \7\ Id. at 12.
    \8\ Id. at 13.
    \9\ Id. at 13-14
    \10\ Id. at 14
    \11\ Id. at 14-15.
    \12\ Id. at 16.
    \13\ Id. at 17-20
    \14\ Id. at 23-24.
    \15\ Id. at 32-34.
---------------------------------------------------------------------------

 Italy: Several export-contingent preferential financial 
products provided by the Special Section for Export Credit Insurance 
\16\
---------------------------------------------------------------------------

    \16\ See Italy CVD Initiation Checklist, June 23, 2015, at 15-
16.
---------------------------------------------------------------------------

     The PRC: Export loans,\17\ Income Tax Credits for 
Domestically-Owned Companies Purchasing Domestically Produced 
Equipment,\18\ Preferential Income Tax Subsidies for Foreign-Invested 
Enterprises--Export Oriented FIEs,\19\ Foreign Trade Development Fund 
Grants,\20\ Export Assistance Grants,\21\ Programs to Rebate 
Antidumping Legal Fees,\22\ Subsidies for Development of Famous Export 
Brands and China World Top Brands,\23\ Sub-Central Government Programs 
to Promote Famous Export Brands and China World Top Brands,\24\ and 
Export Interest Subsidies \25\
---------------------------------------------------------------------------

    \17\ See PRC CVD Initiation Checklist, June 23, 2015, at 8-9.
    \18\ Id. at 18-19.
    \19\ Id. at 22.
    \20\ Id. at 36-37.
    \21\ Id. at 37.
    \22\ Id. at 37-38.
    \23\ Id. at 38.
    \24\ Id. at 39.
    \25\ Id. at 40.
---------------------------------------------------------------------------

 Korea: Several export-contingent preferential financial 
products and services provided by the Korean Export-Import Bank 
Countervailable Subsidy Programs,\26\ preferential loans from the Korea 
Development Bank and Industrial Base Fund,\27\ and export financing 
provided by the Korea Trade Insurance Corporation \28\
---------------------------------------------------------------------------

    \26\ See Korea CVD Initiation Checklist, June 23, 2015, at 10-
12.
    \27\ Id. at 13-14.
    \28\ Id. at 15-16.
---------------------------------------------------------------------------

 Taiwan: Grants for International Development Activities \29\
---------------------------------------------------------------------------

    \29\ See Taiwan CVD Initiation Checklist, June 23, 2015, at 14-
15.

    Therefore, the Department preliminarily determines that there are 
alleged subsidies in each CVD investigation inconsistent with the SCM 
agreement.

History of Dumping and Material Injury/Knowledge of Sales Below Fair 
Value and Material Injury

    In order to determine whether there is a history of dumping 
pursuant to section 733(e)(1)(A)(i) of the Act, the Department 
generally considers current or previous AD orders on subject 
merchandise from the country in question in the United States and 
current orders imposed by other countries with regard to imports of the 
same merchandise. The Department has previously issued an AD order on 
CORE

[[Page 68506]]

from Korea,\30\ based on nearly identical HTS categories, as well as AD 
orders on carbon steel flat products from the PRC.\31\ Moreover, there 
are current AD orders imposed by other World Trade Organization members 
against certain coated steel products (i.e., carbon steel flat products 
either clad, plated or coated with zinc, aluminum, or nickel) from 
Korea, the PRC, and Taiwan.\32\ Certain HTS numbers subject to these 
orders overlap with HTS numbers listed under our current CORE scope. 
Therefore, there is a history of dumping of subject merchandise 
exported from Korea, the PRC, and Taiwan.
---------------------------------------------------------------------------

    \30\ See 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).
    \31\ See Suspension Agreement on Certain Cut-to-Length Carbon 
Steel Plate From the People's Republic of China; Termination of 
Suspension Agreement and Notice of Antidumping Duty Order, 68 FR 
60081 (October 21, 2003) and Notice of the Antidumping Duty Order: 
Certain Hot-Rolled Carbon Steel Flat Products From the People's 
Republic of China, 66 FR 59561 (November 29, 2001).
    \32\ See Australia--AD/CVD Order on Zinc Coated (Galvanised) 
Steel and Aluminum Zinc Coated Steel from the PRC, Korea, and 
Taiwan, Commonwealth of Australia Gazette, Anti-Dumping Duty Notice 
No. 2013/66 (August 5, 2013); Thailand--AD Order on Painted Hot Dip 
Galvanized Cold Rolled Steel and Painted Hot Dip Cold Rolled Steel 
Plated or Coated with Aluminum Zinc Alloys and Certain Hot Dip Cold 
Rolled Steel Plated or Coated with Aluminum Zinc Alloys from the 
PRC, Korea, and Taiwan: Royal Thai Gazette, Vol. 130, Special 
Section 3 (October 1, 2013) (updated re unpainted products, Royal 
Thai Gazette, Vol. 132, Special Section 32 (September 2, 2015)); 
Colombia--AD Order on Galvanized Smooth Sheet from the PRC: Diario 
Oficial, No. 49.084 (March 6, 2014); and Russia--AD Order on Cold-
Rolled Flat Steel Products with Polymer Coating from the PRC: 
Eurasian Economic Commission, Decision No. 49 (May 24, 2012).
---------------------------------------------------------------------------

    To determine whether importers knew or should have known that 
exporters were selling at less than fair value, we typically consider 
the magnitude of dumping margins, including margins alleged in 
petitions.\33\ The Department has found margins of 15 to 25 percent 
(depending on whether sales are export price sales or constructed 
export price sales) to be sufficient for this purpose.\34\ Dumping 
margins alleged in all five AD petitions are significantly above the 15 
to 25 percent threshold: 71.09 percent (India),\35\ 123.76 percent 
(Italy),\36\ 80.06 percent (Korea),\37\ 120.20 percent (the PRC),\38\ 
and 84.40 percent (Taiwan).\39\ Therefore, on that basis, we 
preliminarily conclude importers knew or should have known exporters in 
all five countries were selling at less than fair value.
---------------------------------------------------------------------------

    \33\ See, e.g., Notice of Preliminary Determinations of Critical 
Circumstances: Certain Cold-Rolled Carbon Steel Flat Products from 
Australia, the People's Republic of China, India, the Republic of 
Korea, the Netherlands, and the Russian Federation, 67 FR 19157, 
19158 (April 18, 2002) (unchanged in the final determination).
    \34\ See, e.g., Preliminary Determination of Sales at Less Than 
Fair Value: Certain Cut-to-Length Carbon Steel Plate from the 
People's Republic of China, 62 FR 31972, 31978 (June 11, 1997) 
(unchanged in the final determination) and Notice of Preliminary 
Determination of Sales at Less Than Fair Value, Negative Preliminary 
Determination of Critical Circumstances and Postponement of Final 
Determination: Certain Frozen and Canned Warmwater Shrimp From the 
Socialist Republic of Vietnam, 69 FR 42672 (July 16, 2004) 
(unchanged in the final determination).
    \35\ The Petitions, Volume VI at 5.
    \36\ Id., Volume IX at 28.
    \37\ Id., Volume IV at 13.
    \38\ Id., Volume II at 15.
    \39\ Id., Volume X at 7.
---------------------------------------------------------------------------

    To determine whether importers knew or should have known that there 
was likely to be material injury, we typically consider the preliminary 
injury determinations of the International Trade Commission (ITC).\40\ 
If the ITC finds material injury (as opposed to the threat of injury), 
we normally find that the ITC's determination provided importers with 
sufficient knowledge of injury. Where, as in this case,\41\ the ITC 
finds only threat of material injury, the Department may consider 
additional sources of information, such as trade and price statistics 
or press reports.\42\ Petitioners placed several press reports on the 
record indicating injury. For example: U.S. steel companies are 
struggling against a combination of lower oil prices, oversupply and 
excessive imports fed by a strong dollar. Those headwinds have become a 
perfect storm that could lead to more idled plants and layoffs, and 
spur a major international trade case against China, which steel makers 
accuse of undercutting the market with artificially low-priced product. 
U.S. Steel executives have expressed the great concern about cheap 
imports. On Thursday, CEO and President Mario Longhi testified before 
the Congressional Steel Caucus and warned of long-term damage to 
domestic steel makers from what the industry says is illegal dumping by 
foreign companies. China's state-subsidized industry continue to pump 
out steel, even as demand slows at home. That has led to surging 
exports, particularly to the United States.\43\
---------------------------------------------------------------------------

    \40\ See, e.g., Certain Potassium Phosphate Salts from the 
People's Republic of China: Preliminary Affirmative Determination of 
Critical Circumstances in the Antidumping Duty Investigation, 75 FR 
24572, 24573 (May 5, 2010), unchanged in Certain Potassium Phosphate 
Salts from the People's Republic of China: Final Determination of 
Sales at Less Than Fair Value and Termination of Critical 
Circumstances Inquiry, 75 FR 30377 (June 1, 2010).
    \41\ See Certain Corrosion-Resistant Steel Products From China, 
India, Italy, Korea, and Taiwan, Investigation Nos. 701-TA-534-538 
and 731-TA-1274-1278 (Preliminary), 80 FR 44151 (July 24, 2015).
    \42\ See, e.g., Notice of Final Determination of Sales at Less 
Than Fair Value: Hot-Rolled Flat-Rolled Carbon-Quality Steel 
Products from Japan, 64 FR 24329 (May 6, 1999) at Comment 2.
    \43\ Critical Circumstances Allegation at Exhibit 8 (article 
published in the Pittsburgh Tribune).
---------------------------------------------------------------------------

    In addition, the Department has relied on massive imports and high 
dumping margins as factors indicating importers knew or should have 
known that there was likely to be material injury.\44\ As noted above, 
dumping margins alleged in the five AD petitions range from 71.09 
percent to 123.76 percent. As discussed below, we have determined 
imports were massive for certain producers/exporters shipping from 
Italy, Korea, the PRC, and Taiwan. Therefore, we preliminarily conclude 
importers knew or should have known that there was likely to be 
material injury as a result of sales sold at less than fair value, 
exported from all five countries.
---------------------------------------------------------------------------

    \44\ Final Determination of Sales at Less Than Fair Value: 
Certain Cut-to-Length Carbon Steel Plate From the People's Republic 
of China, 62 FR 61964, 61967 (November 20, 1997).
---------------------------------------------------------------------------

Massive Imports

    In determining whether there are ``massive imports'' over a 
``relatively short period,'' pursuant to sections 703(e)(1)(B) and 
733(e)(1)(B) of the Act, the Department normally compares the import 
volumes of the subject merchandise for at least three months 
immediately preceding the filing of the petition (i.e., the ``base 
period'') to a comparable period of at least three months following the 
filing of the petition (i.e., the ``comparison period''). Imports 
normally will be considered massive when imports during the comparison 
period have increased by 15 percent or more compared to imports during 
the base period.
    Based on evidence provided by Petitioners, the Department finds 
that pursuant to 19 CFR 351.206(i), importers, exporters or producers 
had reason to believe, at some time prior to the filing of the 
petition, that a proceeding was likely. Specifically, the Department 
concludes that the factual information provided by Petitioners 
indicates that by March 2015, importers, exporters or producers had 
reason to believe that proceedings were likely. Among the documents 
Petitioners provided to support their claim of so-called ``early 
knowledge,'' the Department finds the following particularly relevant.
     On March 10, 2015, Steel Market Update acknowledged and 
responded to an influx of ``recent'' inquiries from

[[Page 68507]]

importers of cold-rolled steel and CORE steel products ``asking 
questions about the potential for a trade case or anti-dumping filing 
by the domestic mills against foreign steel imports.'' \45\
---------------------------------------------------------------------------

    \45\ See Critical Circumstances Allegation at Exhibit 7.
---------------------------------------------------------------------------

     On March 26, 2015, American Metal Market issued a press 
release stating that nearly 70 percent of industry participants 
expected cold-rolled and CORE steel cases to be filed in 2015.\46\
---------------------------------------------------------------------------

    \46\ Id. at Exhibit 11.
---------------------------------------------------------------------------

     On March 27, 2015, the Pittsburgh Tribune published an 
article stating that ``domestic steel makers are beginning to take 
their case to Washington.'' One expert quoted in the article concluded 
that a trade case appeared ``inevitable.'' \47\
---------------------------------------------------------------------------

    \47\ Id. at Exhibit 8.
---------------------------------------------------------------------------

     On March 30, 2015, Barron's published analysis by Credit 
Suisse concluding U.S. steel industry officials had ``no intention of 
delay'' and would pursue trade remedies as soon as possible. The 
article states that the U.S. industry would not pursue safeguard 
actions, but instead would pursue AD/CVD remedies focused on hot-rolled 
coil, cold-rolled coil, and CORE steel products.\48\
---------------------------------------------------------------------------

    \48\ Id. at Exhibit 10.
---------------------------------------------------------------------------

    While additional information presented in Petitioners' exhibits 
indicate rumors of trade cases had been circulating as far back as 
2014,\49\ the above statements indicate that by March 2015, these 
rumors had turned to expectations among steel importers, exporters, and 
producers that forthcoming petitions were inevitable.
---------------------------------------------------------------------------

    \49\ This fact is noted in identical submissions filed on August 
3, 2015, on behalf of various respondents in the AD and CVD 
proceedings for Italy, Korea, and Taiwan. These submissions also 
claim Petitioners have not demonstrated the need for expedited 
action, but there is no requirement that such a need be 
demonstrated. Sections 703(e)(1) and 733(e)(1) of the Act call for 
prompt action by the Department. The submissions also argue that we 
cannot reach a preliminary critical circumstances determination when 
the ITC finds ``threat of injury.'' While it is correct that final 
measures cannot be applied before an order when the ITC finds 
``threat of injury,'' the ITC has not yet issued a final 
determination. Moreover, as discussed above, the Department has 
previously issued preliminary affirmative critical circumstances 
determinations when the ITC has found ``threat of injury.'' Finally, 
the submissions also claim there is a seasonal increase in shipments 
at the beginning of the year in anticipation of spring and summer 
months. It is unclear, however, how such a seasonal increase would 
affect our calculations (given that our comparison period starts in 
March, after this seasonal increase would, apparently, have been 
long underway), and parties provided no suggestions for adjusting 
the shipment data on the record to account for the alleged seasonal 
increase.
---------------------------------------------------------------------------

    Thus, in order to determine whether there has been a massive surge 
in imports for each cooperating mandatory respondent, the Department 
compared the total volume of shipments from March 2015 through 
September 2015 (all months for which data was available) with the 
preceding seven-month period of August 2014 through February 2015. For 
``all others,'' the Department compared Global Trade Atlas (GTA) data 
for the period March through August (the last month for which GTA data 
is currently available) with the proceeding six-month period of 
September 2014 through February 2015.\50\ We first subtracted shipments 
reported by the cooperating mandatory respondents from the GTA data. 
For non-cooperating mandatory respondents (i.e., those mandatory 
respondents that did not respond to our critical circumstances 
questionnaire or who otherwise indicated their unwillingness to 
participate in the investigations), we determined, on the basis of 
adverse facts available,\51\ that there has been a massive surge in 
imports. Accordingly, we preliminarily determined the following 
producers/exporters had massive surges in imports.\52\
---------------------------------------------------------------------------

    \50\ The Department gathered GTA data under the following 
harmonized tariff schedule numbers: 7210.30.0030, 7210.30.0060, 
7210.41.0000, 7210.49.0030, 7210.49.0091, 7210.49.0095, 
7210.61.0000, 7210.69.0000, 7210.70.6030, 7210.70.6060, 
7210.70.6090, 7210.90.6000, 7210.90.9000, 7212.20.0000, 
7212.30.1030, 7212.30.1090, 7212.30.3000, 7212.30.5000, 
7212.40.1000, 7212.40.5000, 7212.50.0000, and 7212.60.0000.
    \51\ See Section 776 of the Act.
    \52\ See respective preliminary critical circumstances memoranda 
for each proceeding dated concurrently with this Federal Register 
notice.

 Italy (C-475-833): ILVA S.p.A. (ILVA)
 Korea (A-580-878): Hyundai Steel Company (Hyundai); ``All 
Others''
 Korea (C-580-879): ``All Others''
 PRC (A-570-026): the PRC-wide entity; Hebei Iron & Steel Co., 
Ltd. (Tangshan Branch) (Tangshan); Baoshan Iron & Steel Co., Ltd. 
(Baoshan)
 PRC (C-570-027): Angang Group Hong Kong Company Ltd. (Angang); 
Duferco S.A. (Duferco); Handan Iron & Steel Group (Handan); Changshu 
Everbright Material Technology (Everbright); Baoshan
 Taiwan (A-583-856 and C-583-857): ``All Others''

Conclusion

    Based on the criteria and findings discussed above, we 
preliminarily determine that critical circumstances exist with respect 
to imports of corrosion-resistant steel products shipped by certain 
producers/exporters. Our findings are summarized as follows.

----------------------------------------------------------------------------------------------------------------
                                                            Affirmative preliminary      Negative preliminary
                 Country                     Case No.       critical circumstances      critical circumstances
                                                                 determination               determination
----------------------------------------------------------------------------------------------------------------
PRC.....................................       A-570-026  the PRC-wide entity;        Yieh Phui (China)
                                                           Tangshan; Baoshan.          Technomaterial Co., Ltd.
                                                                                       (YPC); All Other
                                                                                       producers/exporters
                                                                                       entitled to a separate
                                                                                       rate.
                                               C-570-027  Angang, Duferco, Handan,    YPC; All Other producers/
                                                           Everbright, Baoshan.        exporters.
Korea...................................       A-580-878  Hyundai; All Other          Dongkuk Steel Mill Co.,
                                                           producers/exporters.        Ltd. (Dongkuk/Union).
                                               C-580-879  All Other producers/        Dongbu Steel Co., Ltd.
                                                           exporters.                  (Dongbu); Dongkuk/Union.
Taiwan..................................       A-583-856  All Other producers/        Yieh Phui Enterprises Co.,
                                                           exporters.                  Ltd. (Yieh Phui);
                                                                                       Prosperity Tieh
                                                                                       Enterprises Co., Ltd.
                                                                                       (Prosperity).
                                               C-583-857  All Other producers/        Yieh Phui; Prosperity.
                                                           exporters.
India...................................       A-533-863  no companies..............  Uttam Galva Steels, Ltd.
                                                                                       (Uttam); JSW Steel
                                                                                       Limited (JSW); All Other
                                                                                       producers/exporters.
                                               C-533-864  no companies..............  Uttam; JSW; All Other
                                                                                       producers/exporters.
Italy...................................       A-475-832  no companies..............  Acciaieria Arvedi S.p.A.
                                                                                       (Arvedi); Marcegaglia
                                                                                       S.p.A. (Marcegaglia); All
                                                                                       Other producers/
                                                                                       exporters.
                                               C-475-833  ILVA......................  Arvedi; Marcegaglia; All
                                                                                       Other producers/
                                                                                       exporters.
----------------------------------------------------------------------------------------------------------------


[[Page 68508]]

Final Critical Circumstances Determinations

    We will issue final determinations concerning critical 
circumstances when we issue our final subsidy and less-than-fair-value 
determinations. All interested parties will have the opportunity to 
address these determinations in case briefs to be submitted after 
completion of the preliminary subsidies and less than fair value 
determinations.

ITC Notification

    In accordance with sections 703(f) and 733(f) of the Act, we will 
notify the ITC of our determinations.

Suspension of Liquidation

    In accordance with sections 703(e)(2), because we have 
preliminarily found that critical circumstances exist with regard to 
imports exported by certain producers and exporters, if we make an 
affirmative preliminary determination that countervailable subsidies 
have been provided to these same producers/exporters at above de 
minimis rates,\53\ we will instruct U.S. Customs and Border Protection 
(CBP) to suspend liquidation of all entries of subject merchandise from 
these producers/exporters that are entered, or withdrawn from 
warehouse, for consumption on or after the date that is 90 days prior 
to the effective date of ``provisional measures'' (e.g., the date of 
publication in the Federal Register of the notice of an affirmative 
preliminary determination that countervailable subsidies have been 
provided at above de minimis rates). At such time, we will also 
instruct CBP to require a cash deposit equal to the estimated 
preliminary subsidy rates reflected in the preliminary determination 
published in the Federal Register. This suspension of liquidation will 
remain in effect until further notice.
---------------------------------------------------------------------------

    \53\ The preliminary determinations concerning the provision of 
countervailable subsidies are currently scheduled for November 2, 
2015.
---------------------------------------------------------------------------

    In accordance with sections 733(e)(2), because we have 
preliminarily found that critical circumstances exist with regard to 
imports exported by certain producers and exporters, if we make an 
affirmative preliminary determination that sales at less than fair 
value have been made by these same producers/exporters at above de 
minimis rates,\54\ we will instruct CBP to suspend liquidation of all 
entries of subject merchandise from these producers/exporters that are 
entered, or withdrawn from warehouse, for consumption on or after the 
date that is 90 days prior to the effective date of ``provisional 
measures'' (e.g., the date of publication in the Federal Register of 
the notice of an affirmative preliminary determination of sales at less 
than fair value at above de minimis rates). At such time, we will also 
instruct CBP to require a cash deposit equal to the estimated 
preliminary dumping margins reflected in the preliminary determination 
published in the Federal Register. This suspension of liquidation will 
remain in effect until further notice.
---------------------------------------------------------------------------

    \54\ The preliminary determinations concerning sales at less 
than fair value are currently scheduled for December 21, 2015.
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    This notice is issued and published pursuant to section 777(i) of 
the Act and 19 CFR 351.206(c)(2).

    Dated: October 29, 2015.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2015-28252 Filed 11-4-15; 8:45 am]
 BILLING CODE 3510-DS-P