Countervailing Duty Investigation of Certain Corrosion-Resistant Steel Products From the Republic of Korea: Preliminary Affirmative Determination, 68842-68843 [2015-28454]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 80, Number 215 (Friday, November 6, 2015)]
[Notices]
[Pages 68842-68843]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-28454]



[[Page 68842]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-879]


Countervailing Duty Investigation of Certain Corrosion-Resistant 
Steel Products From the Republic of Korea: Preliminary Affirmative 
Determination

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of certain corrosion-resistant steel products 
(corrosion-resistant steel) from the Republic of Korea (Korea). The 
period of investigation is January 1, 2014, through December 31, 2014. 
We invite interested parties to comment on this preliminary 
determination.

DATES: Effective November 6, 2015.

FOR FURTHER INFORMATION CONTACT: Myrna Lobo, or Jun Jack Zhao, AD/CVD 
Operations, Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
2371, and (202) 482-1396, respectively.

SUPPLEMENTARY INFORMATION:

Scope of the Investigation

    The products covered by this investigation are corrosion-resistant 
steel products from Korea. For a complete description of the scope of 
this investigation, see Appendix II.

Methodology

    The Department is conducting this countervailing duty (CVD) 
investigation in accordance with section 701 of the Act. For a full 
description of the methodology underlying our preliminary conclusions, 
see the Preliminary Decision Memorandum.\1\ A list of topics discussed 
in the Preliminary Decision Memorandum is included as Appendix I to 
this notice. The Preliminary Decision Memorandum is a public document 
and is on file electronically via Enforcement and Compliance's 
Antidumping and Countervailing Duty Centralized Electronic Service 
System (ACCESS). ACCESS is available to registered users at https://access.trade.gov, and is available to all parties in the Central 
Records Unit, room B8024 of the main Department of Commerce building. 
In addition, a complete version of the Preliminary Decision Memorandum 
can be accessed directly at https://enforcement.trade.gov/frn/. The 
signed Preliminary Decision Memorandum and the electronic version are 
identical in content.
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    \1\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination: Countervailing Duty Investigation of 
Certain Corrosion-Resistant Steel Products from the Republic of 
Korea,'' dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
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Preliminary Determination and Suspension of Liquidation

    In accordance with section 703(d)(1)(A)(i) of the Act, we 
calculated a CVD rate for each individually investigated producer/
exporter of the subject merchandise. For the programs found to be 
countervailable, we determined that there is a financial contribution 
and benefit, and that the resulting subsidy is specific, within the 
meaning of sections 771(5) and 771(5A) of the Act. Sections 703(d) and 
705(c)(5)(A) of the Act state that for companies not individually 
investigated, we will determine an all-others rate, which is normally 
calculated by weight averaging the subsidy rates of the companies 
selected for individual investigation by those companies' exports of 
the subject merchandise to the United States. However, under section 
705(c)(5)(A)(i) of the Act, the all-others rate may not include zero 
and de minimis rates or any rates based entirely on facts otherwise 
available. In this investigation, the only rate that is not de minimis 
or based entirely on facts otherwise available is the rate calculated 
for Dongbu Steel Co., Ltd./Dongbu Incheon Steel Co., Ltd. (Dongbu). 
Consequently, the rate calculated for Dongbu is also assigned as the 
``all-others'' rate. We preliminarily determine the countervailable 
subsidy rates to be:

 
------------------------------------------------------------------------
                  Company                           Subsidy rate
------------------------------------------------------------------------
Union Steel Manufacturing Co. Ltd./.......  0.69 percent (de minimis).
Dongkuk Steel Mill Co., Ltd...............
Dongbu Steel Co., Ltd./Dongbu Incheon       1.37 percent.
 Steel Co., Ltd.
All-Others................................  1.37 percent.
------------------------------------------------------------------------

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, we 
will direct U.S. Customs and Border Protection (CBP) to suspend 
liquidation of all entries of corrosion-resistant steel from Korea as 
described in the scope of the investigation section entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register. Pursuant to 19 CFR 
351.205(d), the Department will instruct CBP to require a cash deposit 
equal to the rates indicated above for companies other than Union/
Dongkuk. Section 703(e)(2) of the Act provides that, given an 
affirmative determination of critical circumstances, any suspension of 
liquidation shall apply to unliquidated entries of merchandise entered, 
or withdrawn from warehouse, for consumption on or after the later of 
(a) the date which is 90 days before the date on which the suspension 
of liquidation was first ordered, or (b) the date on which notice of 
initiation of the investigation was published. On October 29, 2015, we 
preliminarily found that critical circumstances exist for imports 
produced or exported by the ``all-others'' companies. Accordingly, for 
the ``all-others'' category, in accordance with section 703(e)(2)(A) of 
the Act, suspension of liquidation of corrosion-resistant steel from 
Korea, as described in the ``Scope of the Investigation'' section, 
shall apply to unliquidated entries of merchandise entered, or 
withdrawn from warehouse, for consumption on or after the date which is 
90 days before the publication of this notice, the date suspension of 
liquidation is first ordered. Because we find critical circumstances do 
not exist for Dongbu/Dongbu Incheon, we will begin suspension of 
liquidation for such firms on the date of publication of this notice in 
the Federal Register. Further, because we reached a preliminary 
negative determination for Union/Dongkuk, we will not instruct CBP to 
suspend liquidation of entries for this company.

Verification

    As provided in section 782(i)(1) of the Act, we intend to verify 
the information submitted by the respondents prior to making our final 
determination.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, we will notify the 
International Trade Commission (ITC) of our determination. In addition, 
we are making available to the ITC all non-privileged and non-
proprietary information relating to this investigation. We will allow 
the ITC access to all privileged and business proprietary information 
in our files, provided the ITC confirms that it will not disclose such 
information, either publicly or under an administrative

[[Page 68843]]

protective order, without the written consent of the Assistant 
Secretary for Enforcement and Compliance.
    In accordance with section 705(b)(2) of the Act, if our final 
determination is affirmative, the ITC will make its final determination 
within 45 days after the Department makes its final determination.

Disclosure and Public Comment

    The Department intends to disclose to interested parties the 
calculations performed in connection with this preliminary 
determination within five days of its public announcement.\2\ 
Interested parties may submit case and rebuttal briefs, as well as 
request a hearing.\3\ For a schedule of the deadlines for filing case 
briefs, rebuttal briefs, and hearing requests, see the Preliminary 
Decision Memorandum.
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    \2\ See 19 CFR 351.224(b).
    \3\ See 19 CFR 351.309(c)-(d), 19 CFR 351.310(c).
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    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: November 2, 2015.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Preliminary Determination of Critical Circumstances
VI. Injury Test
VII. Subsidies Valuation
VIII. Benchmarks and Discount Rates
IX. Analysis of Programs
X. Disclosure and Public Comment
XI. Conclusion

Appendix II

Scope of the Investigation

    The products covered by this investigation are certain flat-
rolled steel products, either clad, plated, or coated with 
corrosion-resistant metals such as zinc, aluminum, or zinc-, 
aluminum-, nickel- or iron-based alloys, whether or not corrugated 
or painted, varnished, laminated, or coated with plastics or other 
non-metallic substances in addition to the metallic coating. The 
products covered include coils that have a width of 12.7 mm or 
greater, 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 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 covered also include products not in coils (e.g., in 
straight lengths) of a thickness of 4.75 mm or more and a width 
exceeding 150 mm and measuring at least twice 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 achieved 
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, and
    (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 this investigation 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 (also called wolfram), or
 0.80 percent of molybdenum, or
 0.10 percent of niobium (also called columbium), 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 and high strength low alloy (HSLA) steels. 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.
    Furthermore, this scope also includes Advanced High Strength 
Steels (AHSS) and Ultra High Strength Steels (UHSS), both of which 
are considered high tensile strength and high elongation steels.
    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 this 
investigation unless specifically excluded. The following products 
are outside of and/or specifically excluded from the scope of this 
investigation:
     Flat-rolled steel products either plated or coated with 
tin, lead, chromium, chromium oxides, both tin and lead (``terne 
plate''), or both chromium and chromium oxides (``tin free steel''), 
whether or not painted, varnished or coated with plastics or other 
non-metallic substances in addition to the metallic coating;
     Clad products in straight lengths of 4.7625 mm or more 
in composite thickness and of a width which exceeds 150 mm and 
measures at least twice the thickness; and
     Certain clad stainless flat-rolled products, which are 
three-layered corrosion-resistant flat-rolled steel products less 
than 4.75 mm in composite thickness that consist of a flat-rolled 
steel product clad on both sides with stainless steel in a 20%-60%-
20% ratio.
    The products subject to the investigation are currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under item 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.
    The products subject to the investigation may also enter under 
the following HTSUS item numbers: 7210.90.1000, 7215.90.1000, 
7215.90.3000, 7215.90.5000, 7217.20.1500, 7217.30.1530, 
7217.30.1560, 7217.90.1000, 7217.90.5030, 7217.90.5060, 
7217.90.5090, 7225.91.0000, 7225.92.0000, 7225.99.0090, 
7226.99.0110, 7226.99.0130, 7226.99.0180, 7228.60.6000, 
7228.60.8000, and 7229.90.1000.
    The HTSUS subheadings above are provided for convenience and 
customs purposes only. The written description of the scope of the 
investigation is dispositive.

[FR Doc. 2015-28454 Filed 11-5-15; 8:45 am]
 BILLING CODE 3510-DS-P